UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06557
STI Classic Funds
(Exact name of registrant as specified in charter)
BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219
(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219
(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
Date of fiscal year end: 03/31
Date of reporting period: 03/31/06
ITEM 1. REPORTS TO STOCKHOLDERS.
2006 ANNUAL REPORT
EQUITY FUNDS
March 31, 2006
STI Classic Funds
TABLE OF CONTENTS
STI CLASSIC EQUITY FUNDS ANNUAL REPORT March 31, 2006
Letter to Shareholders ................................................... 1
MANAGEMENT DISCUSSION AND ANALYSIS
EQUITY FUNDS:
Aggressive Growth Stock Fund .......................................... 3
Capital Appreciation Fund ............................................. 5
Emerging Growth Stock Fund ............................................ 7
International Equity Fund ............................................. 9
International Equity Index Fund ....................................... 11
Large Cap Relative Value Fund ......................................... 13
Large Cap Value Equity Fund ........................................... 15
Mid-Cap Equity Fund ................................................... 17
Mid-Cap Value Equity Fund ............................................. 19
Quality Growth Stock Fund ............................................. 21
Small Cap Growth Stock Fund ........................................... 23
Small Cap Value Equity Fund ........................................... 25
Strategic Quantitative Equity Fund .................................... 27
ASSET ALLOCATION FUNDS:
Balanced Fund ......................................................... 29
Life Vision Aggressive Growth Fund .................................... 31
Life Vision Conservative Fund ......................................... 33
Life Vision Growth and Income Fund .................................... 35
Life Vision Moderate Growth Fund ...................................... 37
Schedules of Portfolio Investments ....................................... 39
Statements of Assets and Liabilities ..................................... 93
Statements of Operations ................................................. 97
Statements of Changes in Net Assets ...................................... 101
Financial Highlights ..................................................... 115
Notes to Financial Statements ............................................ 125
Report of Independent Registered Public Accounting Firm .................. 141
Trustees and Officers of the STI Classic Funds ........................... 142
Additional Information ................................................... 144
LETTER TO SHAREHOLDERS
March 31, 2006
Dear Valued STI Classic Funds Shareholder,
Another fiscal year has come to a successful close. The environment was
challenging, and the path over the past 12 months was uneven, but both the
economy and financial markets navigated the setbacks and emerged with positive
results. The STI Classic Funds performed very well during these often trying
times, with peer group outperformance by 27 stock and bond funds across a number
of diverse styles and asset classes. This outperformance helped achieve
competitive returns with well-diversified portfolios. We will highlight some key
developments in the economy and financial markets, but would first like to thank
you for your confidence and support in choosing the STI Classic Funds to help
grow your investments. We greatly value the opportunity to serve you and
continue to strive to meet your expectations every day.
The overall economic backdrop for the markets was positive despite natural,
economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew
3.5% for the year ended March 2006, paced by strong double-digit gains in
business capital spending. "Headline" inflation, as measured by the Consumer
Price Index, increased 3.4% during the same period, which was 1% higher than in
the previous fiscal year. Energy prices, as everyone is painfully aware, were
largely responsible for the acceleration. However, if energy and food are taken
out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting
monetary policy, the resulting core inflation rate was just 2.1%.
Unfortunately, the economy did not grow at an "average" pace for the entire
year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both
sociological and economic terms. Though the storms occurred in the third quarter
of 2005, the statistical impact of the devastation was concentrated in the
fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy
infrastructure from the storm helped drive prices sharply higher, draining
discretionary dollars from consumer wallets and business bottom lines. Energy
prices retreated somewhat during the fourth quarter, but then moved higher in
the first quarter. Fed policy was another headwind for the economy. The central
bank raised short-term interest rates fifteen consecutive times since June 2004,
culminating in the 4.75% fed funds rate on March 31, 2006. During most of this
time, the impact of the tightening was limited to short-term rates, but after
the yield curve flattened at the end of 2005 (short and long rate roughly
equal), long-term rates, such as home mortgage rates, also moved higher, making
borrowing more expensive.
The continued growth in the economy, combined with reasonable valuations, helped
equities move broadly higher during the fiscal year. The S&P 500 Index returned
11.72%, including dividends, during the 12 months ended March 31, 2006, compared
with 6.69% in the previous year. Energy stocks, boosted by the increase in oil
prices, out performed other major sectors in the index for the year. In
addition, above average gains were posted in the financial, telecom, and
technology sectors. Consumer stocks underperformed, reflecting the pressure on
consumers as discussed earlier. The mix of sector performance did not overly
benefit either the value or growth style for the year, except in small-caps,
where growth outperformed value by four percentage points. Small-cap and mid-cap
stocks performed very well over the past year, with a 25.85% gain in the Russell
2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International
stocks also performed very well, as evidenced by the 24.41% gain in the MSCI
EAFE Index.
In the fixed-income markets, the yield on the 10-year Treasury note was
relatively "range-bound" for much of the year, but continued pressure from
short-term rate increases and higher energy prices, among other factors pushed
the yield to 4.85% by March. As a result, bond returns, as measured by the
Lehman Brothers Aggregate Bond Index, returned a positive, but below average,
2.26% for the year ended March 31. Higher quality bonds, such as Treasuries,
tended to lag the overall investment-grade index. The standout performer in the
fixed-income market was the High Yield sector, which returned 7.43% during the
year.
The STI Classic Funds performed very well during this period, as 27 funds across
a wide spectrum of investment styles generated above-average returns. These
included large-cap growth and value, mid-cap, small-cap growth and value,
short and intermediate-term bonds, high yield, and municipal bonds. Many of
these funds were highlighted for their strong performance in publications such
as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal
Finance. In addition to strong performance, we reduced the internal expense
ratios on many of the funds to expressly benefit you, our valued shareholder.
1
Looking ahead, we expect continued economic growth, though the pace over the
next year will likely be below that of the past year. This may allow the Fed to
keep short-term rates steady for awhile as long as inflation remains contained.
It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With
growth likely to slow, interest rates relatively high as compared to the last
few years, and elevated energy prices still a threat, our strategy is to
emphasize quality company holdings that we believe are best able to weather a
more challenging environment.
We close this letter with a special thanks to you, and also to Douglas Phillips,
CFA, the founding president of Trusco Capital Management, who retired on
December 31, 2005. Under Doug's outstanding leadership, the STI Classic Funds
thrived even in the most challenging markets, to become one of the nation's
leading mutual fund families. Of particular importance, we are most grateful to
Doug Phillips for his strong sense of discipline, integrity, and commitment to
the highest levels of client service. He will be missed, but his legacy will
endure.
Sincerely,
/s/ David H. Eidson
- -------------------------------------
David H. Eidson
Chairman and CEO
/s/ Robert J. Rhodes
- -------------------------------------
Robert J. Rhodes, CFA
Executive Vice President
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
2
AGGRESSIVE GROWTH STOCK FUND
PORTFOLIO MANAGER(S)
- - Nancy Zevenbergen, CFA
- - Brooke de Boutray, CFA
- - Leslie Tubbs, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes. Common stocks, and funds
investing in common stocks, generally provide greater return potential when
compared with other types of investments.
Mid capitalization companies typically have a higher risk of failure and
historically have experienced a greater degree of volatility.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Aggressive Growth Stock Fund (I Shares) gained 23.77% for the 12 months
ended March 31, 2006, ahead of the 14.40% return for the Russell 3000(R) Growth
benchmark. Outperformance was due almost entirely to stock selection. Fund
holdings in Information Technology, Consumer Discretionary and Healthcare
sectors showed particular strength during the period. Concentrations in IT
consulting/services and communications equipment industry groups led the IT
sector; restaurants and retail-electronics drove consumer issues; and
biotechnolgy was Healthcare's leading group. High absolute returns in lower
weighted Telecommunication Services and Industrial sectors also contributed.(1)
While Energy garnered headlines and the highest absolute return for the
benchmark, the Fund's lack of sector exposure did little to dampen performance.
Losses in Consumer Staples and weaker relative returns in Financials tempered
overall outperformance.(1)
WHAT FACTORS (INCLUDING MARKET AND ECONOMIC CONDITIONS) INFLUENCED THE FUND'S
PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006?
Over 90% of the Fund's outperformance over the last year was due to favorable
stock selection, with half of the top-ten-weighted securities leading aggregate
contributors. Shares of Gilead Sciences, Inc. (biotechnology), Cognizant
Technology Solutions Corporation (IT consulting/services), QUALCOMM Incorporated
(communications equipment), Starbucks Corporation (restaurants) and NII
Holdings, Inc. (wireless telecom) performed particularly well. Yet, many
holdings outside the top-ten also bolstered Fund performance including Broadcom
Corporation (semiconductors), BlackRock, Inc. (asset management), and Celgene
Corporation (biotechnology).(1)
Internet issues produced lackluster returns during the period. Positions in eBay
Inc. and Yahoo! Inc. produced aggregate losses, and were the largest detractors
among top holdings.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
We firmly believe that adhering to our investment process and philosophy through
all market environments is critical for achieving superior long-term returns.
Though our aggressive growth equity style may be out of favor during specific
market cycles, we remain steadfast in our commitment to provide a Fund with
companies exhibiting faster, sustainable growth characteristics and leading in
the development and delivery of innovative products and services. Though our
active investment style and concentrated Fund holdings can lead to more volatile
performance over short time periods, focusing on select companies positioned in
industries exhibiting leadership and secular growth profiles, we believe, should
lead to stocks appreciating more than the benchmark over the long-term.(1)
(1) Portfolio composition subject to change
3
AGGRESSIVE GROWTH STOCK FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Aggressive
Growth Stock Russell 3000(R)
Fund (I Shares) Growth Index
--------------- ---------------
2/23/2004 10000 10000
9880 9832
10180 10009
9460 9479
12/04 10700 10394
9890 9945
10191 10199
10751 10628
12/05 11461 10932
3/06 12241 11377
This chart assumes an initial hypothetical investment of $10,000 made on
2/23/04. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell 3000(R) Growth index which
measures the performance of those companies found in the Russell universe with
higher price-to-book ratios and higher forecasted growth values. The stocks in
this index are also members of either the Russell 1000(R) Growth or the Russell
2000(R) Growth indices. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
-------------------------
AGGRESSIVE GROWTH STOCK FUND INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------- -------------- ------- ---------------
A SHARES WITHOUT SALES CHARGE 02/23/04 23.58 9.75
WITH SALES CHARGE* 16.48 6.70
C SHARES WITHOUT CDSC 02/23/04 22.70 9.06
WITH CDSC* 21.70 9.06
I SHARES 02/23/04 23.77 10.10
RUSSELL 3000(R) GROWTH INDEX 14.40 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Telecommunications Services 5.2%
Consumer Discretionary 22.6%
Consumer Staples 3.6%
Depositary Receipts 0.1%
Financials 9.7%
Health Care 16.8%
Information Technology 36.6%
Repurchase Agreements 4.7%
Software 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
4
CAPITAL APPRECIATION FUND
PORTFOLIO MANAGER(S)
- - Robert J. Rhodes, CFA
- - Elizabeth G. Pola, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes. Common stocks, and funds
investing in common stocks, generally provide greater return potential when
compared with other types of investments.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Capital Appreciation Fund (I Shares) gained 7.33% for the year ended March
31, 2006. This fell short of the 11.72% total return of the S&P 500 Index. While
the first fiscal quarter, ended June 30, got off to a weak start, we believed
the Fund was very well positioned with an excellent earnings growth profile in
high-quality companies. Unfortunately, two major hurricanes during the September
quarter created turmoil and uncertainty. Basically, higher growth companies and
particularly anything associated with the consumer or technology got taken to
the woodshed, while energy stocks soared. Investors grossly over estimated the
longer-term impacts of the hurricanes, as is often the case when disaster events
occur. Thus, we did not alter our strategy but held onto, and in some cases
added to, consumer and technology holdings. This proved fortunate as energy
shares actually had a short term relative price peak in mid-September. In the
December quarter, our strategy paid off, with the Fund up 3.47% compared to
2.08% for the S&P 500. Energy and Utility stocks lagged badly, and Fund
overweights in Consumer, Technology and Industrial were well rewarded. This good
performance continued in the final (March) quarter with the Fund 4.41% (I
Shares) versus 4.21% for the S&P 500. In summary, it really was a year of two
distinct and contradictory halves. While the first six months were frustrating
and disappointing, the Fund recovered smartly in the second half, with a return
of 8.0%, well above the 6.4% of the benchmark.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
Also creating headwinds for the Fund's investment strategy during the year were
several trends within the equity markets. We mentioned energy stocks; we reduced
exposure to this sector too early, based on valuation concerns as well as a
judgment about the price of the commodity being extended versus its normative
trend. Global geopolitics and bad weather made that judgment incorrect. Another
factor was the continued extraordinary performance of small and midcap stocks.
For example, within the S&P 500 the largest decile of market caps rose only 3.5%
for the 12 months ended March 31, 2006, while the rest of the S&P was up 15.5%.
The Capital Appreciation Fund has been tilted modestly toward larger companies
over the last year, on the basis of relative attraction. Also, higher quality
stocks, as measured by the S&P common stock quality rank, continued to lag
lowest quality shares. We have kept the Fund a little bit more biased toward
high quality, believing that rising interest rates, slowing profits growth and
high energy prices would eventually create stress for lower quality stocks.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
As we look ahead, we have positioned the Fund to potentially benefit from
several rather obvious aspects of the current environment. First, it looks like
a "classic" economic cycle, but with the added twist of high oil prices. That
is, we expect consumer spending to be under pressure, while late-cycle capital
spending will remain relatively strong. Second, smaller but in particular
low-quality stocks are selling at significant valuation premiums, measured by
price/earnings ratios(2), to large, stable, well-diversified, well-financed,
high quality companies. Third, we expect a significant slowdown in corporate
profits as 2006 progresses, which should add to the appeal of companies with the
kind of stable or improving earnings growth emphasized in the Fund.
Consequently, the Fund is aligned more with high quality, visible growth, and
somewhat larger cap stocks. We are convinced this is the most appropriate
strategy for the year ahead, and one which should prove rewarding to performance
of the Fund. (1)
(1) Portfolio composition subject to change
(2) The Price-to-Earnings Ratio (P/E) is the valuation ratio of a company's
current share price compared to its per-share earnings.
5
CAPITAL APPRECIATION FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Capital Appreciation Fund (I Shares) S&P 500 Index
------------------------------------ -------------
3/96 10000 10000
10526 10451
10830 10771
12/96 11365 11673
11628 11978
13615 14074
14525 15132
12/97 14903 15567
16846 17739
17474 18325
15524 16502
12/98 19085 20017
19443 21014
21079 22495
19097 21091
12/99 20937 24229
21961 24785
22176 24126
22215 23893
12/00 21277 22023
19357 19412
20718 20548
17614 17532
12/01 19896 19406
19730 19459
17309 16852
14949 13941
12/02 15524 15116
15191 14640
16552 16895
16764 17342
12/03 18398 19454
18792 19784
18898 20123
18171 19746
12/04 19571 21569
18797 21105
18597 21394
18674 22165
12/05 19322 22628
3/06 20175 23580
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/06 (%)
----------------------------------
CAPITAL APPRECIATION FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------- -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 06/09/92 6.97 9 25 0.21 6.61
WITH SALES CHARGE* 0.83 7.13 -0.97 5.98
C SHARES WITHOUT CDSC 06/01/95 6.27 8.75 -0.25 6.10
WITH CDSC* 5.27 8.75 -0.25 6.10
I SHARES WITHOUT LOAD 07/01/92 7.33 9.92 0.83 7.27
S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 13.6%
Consumer staples 2.7%
Energy 3.6%
Financials 12.4%
Health Care 11.6%
Industrials 14.1%
Information Technology 18.1%
Materials 1.0%
Telecommunications Services 1.7%
Short-Term Investments 19.0%
Repurchase Agreement 2.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
6
EMERGING GROWTH STOCK FUND
PORTFOLIO MANAGER(S)
- - Nancy Zevenbergen, CFA
- - Brooke de Boutray, CFA
- - Leslie Tubbs, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Emerging Growth Stock Fund (I Shares) gained 36.78% for the 12 months ended
March 31, 2006, compared to a 22.68% return for the Russell Midcap(R) Growth
benchmark. Select concentrations in Financials and Industrials led Fund stock
selection as holdings in both sectors more than doubled benchmark counterparts.
Although not an active Fund construction decisions, underweighting in Consumer
Discretionary and overweighting in Telecommunication Services help to further
Fund performance. Information Technology delivered the largest aggregate
contribution due primarily to our significant sector exposure. Communication
equipment and small-capitalization internet software/services produced the
largest IT sector gains.(1)
While Energy garnered headlines and a high absolute return for the benchmark,
the Fund's lack of exposure did little to dampen performance.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Fund outperformance was led by favorable stock selection, with six of the
top-ten-weighted securities leading aggregate contributors. Concentrated
positions and stellar price gains for NII Holdings, Inc. (wireless telecom),
AirTran Holdings, Inc. (airlines), F5 Networks, Inc. (communications equipment),
aQuantive, Inc. (internet software/services), Euronet Worldwide, Inc. (data
processing), and Psychiatric Solutions, Inc. (healthcare facilities) drove Fund
outperformance. Other significant contributors included Varian Medical Systems,
Inc. (healthcare equipment), Calamos Asset Management, Inc. (diversified
financials), and The Corporate Executive Board Company (diversified commercial
services).(1)
Fund challenges laid squarely in security-specific losses, most of which were
sold during the period because of deteriorating fundamentals. Apple Computer,
Inc. (computer hardware) was included among these losses. However, Apple was not
sold due to failing fundamentals, but rather to maintain our commitment to the
capitalization structure of the Fund.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
We firmly believe that adhering to our investment process and philosophy through
all market environments is critical to achieving superior long-term returns.
Though our aggressive growth equity style may be out of favor during specific
market cycles, we remain steadfast in our commitment to provide a Fund with
companies exhibiting faster, sustainable growth characteristics and leading in
the development and delivery of innovative products and services. Though our
active investment style and concentrated Fund holdings can lead to more volatile
performance over short time periods, purchasing select companies, positioned in
industries exhibiting leadership and secular growth, we believe, should lead to
fund appreciation ahead of the benchmark over the long-term.(1)
(1) Portfolio composition subject to change.
7
EMERGING GROWTH STOCK FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Emerging
Growth Stock Russell Midcap
Fund (I Shares) Growth Index
--------------- --------------
2/04 10000 10000
9850 9981
9820 10086
8710 9649
12/04 9870 10994
9380 10811
10170 11182
10610 11914
12/05 11370 12325
3/06 12830 13262
This chart assumes an initial hypothetical investment of $10,000 made on
2/23/04. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell Midcap(R) Growth Index which
measures the performance of those companies in the Russell universe with higher
price-to-book ratios and higher forecasted growth values. The stocks are also
members of the Russell 1000(R) Growth index. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
-------------------------
EMERGING GROWTH STOCK FUND INCEPTION DATE 1 YEAR SINCE INCEPTION
- -------------------------- -------------- ------- ---------------
A SHARES WITHOUT SALES CHARGE 02/23/04 36.30 12.17
WITH SALES CHARGE* 28.46 9.06
C SHARES WITHOUT CDSC 02/27/04 35.52 10.91
WITH CDSC* 34.52 10.91
I SHARES 02/23/04 36.78 12.59
RUSSELL MIDCAP(R) GROWTH INDEX 22.68 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (As of March 31, 2006) (1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 17.6%
Consumer Staples 3.2%
Financials 14.9%
Health Care 21.0%
Industrials 8.0%
Information Technology 25.0%
Repurchase Agreements 1.5%
Telecommunications Services 8.8%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
8
INTERNATIONAL EQUITY FUND
PORTFOLIO MANAGER
- - Chad Deakins, CFA
INVESTMENT CONCERNS
International investing involves increased risk and volatility.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The International Equity Fund returned 24.47% (I Shares) for the 12 months ended
March, 31, 2006. The MSCI EAFE returned 24.41% during the same time frame.
During the period the groups of stocks that contributed the most to the Index
performance were Japanese Financials +59.6%, Japanese Materials +55.6%, U.K.
Materials +50%, and Australian Materials +41%. Telecom stocks were the worst
performers in most regions and Consumer Discretionary stocks were among the
worst in most regions, except Japan where they were very strong.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Stock selection was good in Japan and Continental Europe. In Japan the Fund held
a few trading companies, Mitsubishi Corp. +77%, Sumitomo Corp. +68%, and Itochu
Corp. +71%. These three companies benefited from high demand for commodities and
the expanding global economy. Machinery stocks Komotsu +154%, and Kubota +103%
also benefited the Fund as demand for Industrial and Construction Machinery was
high.(1)
In Europe, Mergers & Acquisitions speculation along with a positive pricing
environment helped Utilities stocks. Fortum +88%, EDP +46% and Endesa +47% were
stocks the Fund held during the period. In Australia our main holding, Bluescope
Steel, was off 18% while the rest of the materials group was up 50-60%. In the
United Kingdom, Vodaphone, -18%, was one of our largest holdings and had
disappointing guidance in the second half of '05.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Smaller Cap issues now trade at a premium to large cap names. Small caps
generally have higher growth rates and are more leveraged. As this cycle ages,
factors like interest rates and inflation should begin to restrict growth. The
smaller cap issues should be the first group to begin to struggle. Our process
has historically been a large cap core process and we have struggled to keep up
with the markets as the small cap issues have run. We think the small cap
leadership is near an end which should benefit our style. With valuations
compressed, meaning the spread from the most expensive to least expensive stocks
being at historically low levels, the focus now must be on growth. Our focus is
always a balance of both Growth and Value, but in this environment Growth is
much more important. Compared to the U.S., the International markets continue to
look attractive in terms of relative valuation comparisons.(1)
(1) Portfolio composition subject to change.
9
INTERNATIONAL EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
International Equity
Fund (I Shares) MSCI EAFE Index
-------------------- ---------------
3/96 10000 10000
10551 10158
10680 10145
12/96 11658 10307
12132 10145
13611 11462
14331 11381
12/97 13214 10490
15219 12033
15387 12161
12574 10432
12/98 14697 12588
14719 12763
15124 13087
15179 13662
12/99 16089 15982
15871 15965
16717 15333
15360 14096
12/00 15532 13718
13713 11837
13868 11714
12302 10074
12/01 12781 10776
12923 10881
12598 10601
10115 8509
12/02 10606 9059
9782 8315
11616 9917
12341 10723
12/03 14516 12554
15093 13099
14978 13127
15093 13090
12/04 17277 15096
17132 15071
16870 14919
18747 16467
12/05 19542 17139
3/06 21324 18749
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Morgan Stanley Capital International,
Europe, Australasia and Far East (MSCI EAFE Index) is a widely-recognized,
market capitalization index that measures market equity performance based upon
indices from 21 foreign and developed markets. The index is unmanaged and does
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------------
INTERNATIONAL EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/02/96 24.15 29.16 8.83 7.47
WITH SALES CHARGE* 17.01 26.61 7.55 6.84
C SHARES WITHOUT CDSC 01/02/96 23.34 28.37 8.09 6.74
WITH CDSC* 22.34 28.37 8.09 6.74
I SHARES 01/31/95 24.47 29.66 9.23 7.87
MSCI EAFE INDEX 24.41 31.13 9.63 6.49
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for
periods prior to December 1, 1995, and past performance of the I shares for
the periods between December 1, 1995 and inception of the A and C shares on
January 2, 1996. The common trust fund was not registered under the 1940
Act and therefore was not subject to certain investment restrictions which
may have adversely affected performance.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 11.7%
Consumer Staples 4.8%
Energy 6.3%
Financials 26.9%
Health Care 4.5%
Industrials 10.0%
Information Technology 5.8%
Materials 6.9%
Short-Term Investment 12.0%
Telecommunication Services 5.2%
Utilities 5.9%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
10
INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO MANAGER(S)
- - Chad Deakins, CFA
- - Andrew Atkins
INVESTMENT CONCERNS
International investing involves increased risk and volatility.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
It is important to remember that there are risks associated with index
investing, including the potential risk of market decline, as well as the risks
associated with investing in specific companies.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The International Equity Index Fund performed well relative to its benchmark,
the MSCI EAFE Index (GDP weighted), and was up over 25.06% (I Shares). The Fund
generally tracks the benchmark very well and typically outperforms the price
only version of the MSCI EAFE GDP by dividend yield of the Fund less expenses.
For the 12 month period ended March 31, 2006, the Fund was up 25.06% and the
MSCI EAFE GDP price only Index was up 23.14%.
International equity markets have performed very well relative to domestic U.S.
markets over the past decade and the both the Fund and the Index that it tracks
have outperformed the S&P 500 Index over the 1, 3, 5, and 7 year periods ended
March 31, 2006. As the U.S. continues to decline as a percent of total world
market value, we anticipate further opportunities for strong performance in
International Equities.
ANNUALIZED TOTAL RETURN
FOR THE PERIOD ENDED MARCH 31, 2006
-----------------------------------
1 Year 3 Year 5 Year 7 Year
------ ------ ------ ------
S&P 500 INDEX(1) 11.72% 17.22% 3.97% 1.66%
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
One of the primary factors affecting performance was simply the strength of
international markets over the past year. The Fund holds equities of 22
countries. Twenty of those countries (or over 90% of the Fund's market value)
outperformed the S&P 500 over the one year period.(2)
From a valuation perspective, lower P/E(3) stocks outperformed those with higher
valuations and the Fund was more heavily weighted in lower value names than
higher. The Fund (and the index it tracks) is heavily weighted in larger cap
names which performed well over the past year.(2)
From a sector perspective, it is interesting to note that although Energy was
very strong, it was only the eighth best sector internationally. Energy was the
strongest sector domestically in the U.S. Sectors like Materials, Financials,
Industrials and IT all handily outperformed Energy Internationally. This is an
excellent reminder that international exposure can benefit well diversified
portfolios(2).
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
This Fund will continue to mirror the MSCI EAFE Index (GDP Weighted) as closely
as possible by employing a stratified sampling process. This is a process in
which we first set the country weights of the portfolio equal to the country
weights of the index. Then we set a bound of +/- 1% on the sector weights of
each country portfolio relative to the sector weights of the respective country
index. We strive to minimize turnover and prevent buying more liquidity than is
available (bidding up the price).(2)
(1) The S&P 500 Index is a market value-weighted index of 500 stocks designed
to mimic the overall U.S. equity market's industry weightings.
(2) Portfolio composition subject to change.
(3) The Price-to-Earnings Ratio (P/E) is the valuation ratio of a company's
current share price compared to its per-share earnings.
11
INTERNATIONAL EQUITY INDEX FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
MSCI
International EAFE
Equity Index
Index (GDP
(I Shares) Weighted)
------------- ---------
3/96 10000 10000
10298 10203
10205 10139
12/96 10407 10344
10455 10377
11693 11500
12003 11575
12/97 11342 10794
13333 12623
13976 13076
12161 11143
12/98 14747 13506
15024 13741
15667 14183
16561 14917
12/99 19269 17489
19154 17596
18327 16805
16763 15342
12/00 15982 14612
14036 12831
13842 12594
11703 10628
12/01 12230 11213
12334 11321
12153 11092
9658 8762
12/02 10210 9274
9379 8499
11262 10142
12263 11062
12/03 14349 12983
15033 13604
15060 13515
14928 13383
12/04 17371 15599
17196 15442
16902 15022
18738 16636
12/05 19588 17338
3/06 21506 19015
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Morgan Stanley Capital International,
Europe, Australasia and Far East (MSCI EAFE Index- GDP Weighted) is a
widely-recognized, market capitalization index that measures market equity
performance based upon indices 21 foreign and developed counties. The country
weighting of the Index is calculated using the gross domestic product of each of
the various countries and then with respect of the market capitalization of the
various companies operating in each country. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
INTERNATIONAL EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES 06/06/94 24.74 31.29 8.45 7.50
CHARGE WITH SALES 17.61 28.75 7.16 6.86
CHARGE*
C SHARES WITHOUT CDSC 06/08/95 23.79 30.42 7.74 6.81
WITH CDSC* 22.79 30.42 7.74 6.81
I SHARES 06/06/94 25.06 31.87 8.91 7.96
23.14 30.79 8.19 6.64
MSCI EAFE INDEX (GDP WEIGHTED)
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 10.5%
Consumer Staples 3.3%
Energy 7.5%
Financials 27.4%
Health Care 7.3%
Industrials 10.7%
Information Technology 4.5%
Materials 7.5%
Short-Term Investment 12.1%
Telecommunication Services 4.6%
Utilities 4.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
12
LARGE CAP RELATIVE VALUE FUND (FORMERLY GROWTH AND INCOME FUND)
PORTFOLIO MANAGER
- - Jeffrey E. Markunas, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the year ended March 31, 2006, the Large Cap Relative Value Fund (I Shares)
returned 12.76%, slightly behind the primary benchmark Russell 1000(R) Value
Index return of 13.31%. (Because the previous benchmark, the S&P Barra Value
Index, will be discontinued on June 30, 2006, the Russell 1000(R) Value Index
will be used henceforth.) The Fund performed better than the S&P 500 return of
11.72%.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The latest fiscal year evidenced a classic earnings-driven market environment
with strong economic growth characterized by surging energy and commodities
prices. These factors were extremely beneficial to technology, industrials,
energy, telecommunications, and despite a steady rise in short term interest
rates, to financials. These factors worked against consumer and non-cyclical
sectors of the market, notably consumer spending, staples, healthcare, and
utilities. This environment was quite positive for value-oriented and smaller
company investing rather than for growth-oriented and larger company investing.
Because the Fund entered 2005 with a pro-economic tilt, it was able to leverage
these developments early in the year. However, the gradual reduction to this
economic tilt in favor of select emerging valuation opportunities among
underperforming sustainable growth stocks did start to impact Fund performance
during the fourth fiscal quarter of the year. Fund overweightings in technology
and industrials and underweightings in consumer spending and utilities helped
results, while over weightings in staples and healthcare and underweightings in
financials and energy detracted from results vs. the Russell 1000(R) Value
Index. Stock selection was a plus during the June and December fiscal quarters,
and suffered during the March 2006 fouth quarter as seasonal factors boosted the
economy and the performance of the most economically-sensitive stocks. Overall
for the year, stock selection in the energy and consumer spending sectors proved
best, while selection in telecommunications, staples, and healthcare proved
worst. This performance is hardly unusual as the Fund moves into new positions,
typically on the early side, when the issue is out of favor with investors and
susceptible to initial, short-term underperformance. Conversely, as our
valuation discipline causes us to reduce or eliminate positions where the
investment thesis and catalysts have been widely recognized and largely
fulfilled, we become sellers into strength and momentum that can continue for
awhile beyond our exit levels. Such was the case in the later part of fiscal
2006.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Strong economic and corporate profit momentum underpinned healthy fiscal year
results. A robust housing market and a resilient consumer carried the earlier
part of the year, while a firming job market and accelerating capital spending
maintained the momentum more recently. Investors embraced the notion of
"stronger-longer" and seem increasingly convinced that economic momentum can
carry the market again this year. While we must acknowledge that the durability
and momentum of the economic and corporate profit cycles have exceeded our
heretofore optimistic expectations, we nevertheless anticipate that slowbuilding
headwinds will cause both cycles to decelerate in the year ahead, setting the
stage for an undershoot to lofty consensus expectations in 2007. Therefore, we
have been and are continuing to reshape the Fund for a "stronger but not too
much longer" market environment, more through the specific issues held rather
than through material sector weight adjustments. Also, we adhere to the belief
that risk continues to be relatively underpriced and underappreciated across the
equity market, and that more discrimination will emerge as economic momentum
slows. Thus, better quality and more sustainable future growth when available at
a discount in the market, is where the Fund has been tending to migrate.
Finally, the tsunami of global liquidity should continue to influence and
sustain a rabid merger and acquisition cycle, and could benefit the Fund and its
disciplined investors who focus on undervalued companies with healthy and
improving fundamentals.(1)
(1) Portfolio composition subject to change.
13
LARGE CAP RELATIVE VALUE FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Large Cap Relative
Value Fund S&P 500/BARRA Russell 1000
(I Shares) Value Index S&P 500 Index Value Index
------------------ ------------- ------------- ------------
3/96 10000 10000 10000 10000
10417 10205 10451 10172
10601 10474 10771 10468
12/96 11349 11466 11673 11512
11346 11668 11978 11807
13319 13357 14074 13548
14524 14581 15132 14897
12/97 14492 14904 15567 15563
16324 16626 17739 17377
16415 16713 18325 17455
14714 14554 16502 15433
12/98 17129 17092 20017 17995
17581 17579 21014 18253
19314 19477 22495 20311
17930 17680 21091 18322
12/99 19557 19266 24229 19317
19756 19311 24785 19410
19488 18482 24126 18500
20471 20111 23893 19955
12/00 19837 20438 22023 20672
18320 19104 19412 19462
19217 19946 20548 20412
17134 16714 17532 18177
12/01 18527 18045 19406 19517
18878 18284 19459 20315
16921 16338 16852 18585
13800 12995 13941 15096
12/02 14888 14282 15116 16487
14200 13495 14640 15685
16370 16038 16895 18395
16667 16445 17342 18775
12/03 19077 18822 19454 21439
19655 19452 19784 22088
19992 19607 20123 22282
19835 19811 19746 22626
12/04 21791 21778 21569 24975
22146 21249 21105 24996
22465 21798 21394 25415
23209 22548 22165 26402
12/05 23880 23158 22628 26736
3/06 24971 24413 23580 28323
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V.(net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds has changed its standardized benchmark because the previous benchmark,
the S&P 500/BARRA Value Index, will be discontinued on June 30, 2006, the
Russell 1000(R) Value Index will be used henceforth Index. The Russell 1000(R)
Value Index is comprised of the 1000 securities found in the Russell universe
with a less-than-average growth orientation. Companies in this index generally
have low price-to-book and price-to-earning ratios, higher dividend yields, and
lower forecasted growth values. Investors cannot invest directly in an index.
The S&P 500/BARRA Value Index is comprised of securities in the S&P 500 Index
that have lower price-to-book ratios. The S&P 500 is a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not refect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06(%)
----------------------------------
LARGE CAP RELATIVE VALUE FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ----------------------------- -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 05/07/93 12.50 20.46 6.18 9.44
WITH SALES CHARGE* 6.03 18.11 4.92 8.79
C SHARES WITHOUT CDSC 04/05/95 11.69 19.57 5.39 8.63
WITH CDSC* 10.69 19.57 5.39 8.63
I SHARES 09/26/92 12.76 20.70 6.39 9.58
RUSSELL 1000(R) VALUE INDEX 13.31 21.77 7.79 10.97
S&P 500/BARRA VALUE INDEX 14.89 21.85 5.03 9.34
S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 7.6%
Consumer Staples 7.9%
Energy 8.7%
Financials 20.3%
Health Care 8.9%
Industrials 8.5%
Information Technology 10.2%
Materials 2.3%
Money Market Funds 1.5%
Short-Term Investment 17.3%
Telecommunication Services 3.5%
Utiliites 3.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
14
LARGE CAP VALUE EQUITY FUND (FORMERLY VALUE INCOME STOCK FUND)
PORTFOLIO MANAGER
- - Mills Riddick, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Large Cap Value Equity Fund
returned 11.93% (I Shares) versus 13.31% for the benchmark the Russell 1000(R)
Value Index. The primary reason for the underperformance was the Fund's
underweighting in the Financials sector including REITs. Financials were the
largest contributor to performance for the year as investors anticipated the
eventual end to Fed tightening and continued to be enamored with the real estate
markets. Some other areas that hurt relative performance were our underweight in
Metals and Mining, which performed magnificently due to robust global demand, in
Oil Service stocks, which continue to benefit from increased capital spending by
the oil majors and Tobacco stocks, which experienced good upside in light of
improving legal conditions. This was partially offset by our large overweighting
in Industrials which was the Fund's second largest contributor to
performance.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
As previously noted the Fund was a major beneficiary of our large overweight in
Industrial stocks. Rockwell Automation, MSC Industrial, Honeywell, Emerson
Electric and Illinois Tool were all significant contributors primarily due to
their strong earnings reports caused by good demand and substantial operating
leverage. The Fund benefited as well from Financials positions like Bear
Stearns, Bank of New York, J.P. Morgan and Merrill Lynch, which posted solid
returns against the positive backdrop of good economic growth and a fairly
benign inflationary environment. The Fund was hurt by some poor stock picks such
as Gannett which suffered under the weight of an extremely poor advertising
market and Mattel which was smothered by rapidly escalating raw materials costs
and poor Barbie doll sales. Also, the Fund is still experiencing a negative
quality bias that started in 2003 as lower quality stocks continue to outperform
their higher quality counterparts. The Fund has roughly two-thirds of its
positions in B+ or higher rated companies.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund's returns seemingly have turned the corner a bit, putting up better
relative performance since October of last year. This is due to better stock
selection and, at least in a small part, our focus on trying to get Energy and
Utilities right this time, taking opportunities to add to these positions in
sell-offs while trimming positions of cyclically leveraged raw materials users
as they hit price targets. There are still significant arguments to be made for
an economic slowdown, such as higher oil prices, Fed tightening, weaker housing
and the inverted yield curve. The consumer seems to have stalled a bit under
this weight but corporations are still chugging along. The market direction
still remains inextricably tied to the Fed.(1)
The Fund is underweight Consumer Discretionary stocks because we are concerned
about some potentially significant forces conspiring against the consumer over
the near-term namely, more restrictive mortgage lending and high gasoline and
heating oil prices. The Fund has a large position in Federated Dept Stores where
there are ample other positive catalysts to pique our interest such asset sales
and expense reduction. The Fund is overweight Consumer Staples with positions
like Colgate and PepsiCo that exhibit not only strong financial characteristics
but solid fundamentals as well. The Fund is underweight Energy but we are
reassessing our normalized oil price forecast in light of ongoing market
dynamics and we are prepared to add positions on a significant pullback.
Currently the Fund owns integrated oil companies with significant refining
assets such as Marathon Oil. We feel that the refining space has more upside
given the very tight capacity outlook for the industry. The Fund is slightly
overweight in Materials but has been trimming back some positions as they rally
off their Q3 lows. We like stocks such as DuPont that have huge free cash flows,
some pricing power and tremendous balance sheet flexibility to raise dividends
and repurchase stock. The Fund is underweight Financials where we have sold most
of the insurance and spread-based stocks due to price appreciation, but hold
significant positions in capital market focused companies like Bear Stearns and
Bank of New York that directly benefit from the heightened market activity. The
Fund is overweight Industrials while maintaining an equal weight in Technology.
Industrials we like exhibit strong balance sheets and good operating leverage
like Illinois Tool. The Fund is overweight Healthcare. Pharmaceutical and
hospital companies are attractive from a valuation standpoint and we are more
confident that fundamentals have bottomed and will soon be turning more
positive. The Fund is underweight Telecommunications and underweight Utilities
but we will look for utility stock opportunities on price pullbacks. Given our
ongoing reassessment of normalized oil and gas we would like to be more involved
with companies that have good exposure to cheap sources of merchant generation
if valuations make sense.(1)
We believe profit growth will continue to slow but stay positive. In this low
growth environment, higher quality companies with well defined dividend policies
should do well since dividend yield will become a more important source of total
return. Also the valuation case for highquality stocks is quite compelling and
they have historically performed well when the profit cycle is decelerating like
that of today's market. These are the very stocks that are well represented in
the Fund.(1)
(1) Portfolio composition subject to change.
15
LARGE CAP VALUE EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Large Cap Value S&P
Equity Fund 500/BARRA Russell 1000
(I Shares) Value Index Value Index
--------------- ----------- ------------
3/96 10000 10000 10000
10377 10205 10172
10706 10474 10468
12/96 11347 11466 11512
11681 11668 11807
13119 13357 13548
14320 14581 14897
12/97 14420 14904 15563
16150 16626 17377
15543 16712 17455
14063 14554 15433
12/98 15946 17092 17995
15692 17579 18253
18101 19477 20311
15904 17680 18322
12/99 15478 19266 19317
14884 19311 19410
14499 18482 18500
15458 20111 19955
12/00 17158 20438 20672
16348 19104 19462
17291 19946 20412
15648 16714 18177
12/01 16994 18045 19517
17694 18284 20315
16253 16338 18585
13019 12995 15096
12/02 14365 14282 16487
13368 13495 15685
15349 16038 18395
15771 16445 18775
12/03 17762 18822 21439
18331 19452 22088
18755 19607 22282
18875 19811 22626
12/04 20441 21778 24975
20460 21249 24996
20310 21798 25415
20690 22548 26402
12/05 21196 23158 26736
3/06 22900 24413 28323
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to Russell 1000(R) Value Index and the S&P
500/BARRA Value Index. The Russell 1000(R) Value Index is comprised of the 1000
securities found in the Russell universe with a less-than-average growth
orientation. Companies in this index generally have low price-to-book and
price-to-earning ratios, higher dividend yields, and lower forecasted growth
values. The S&P 500/ BARRA Value Index is comprised of securities in the S&P 500
Index that have lower price-to-book ratios. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL
TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------
LARGE CAP VALUE EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- --------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 02/17/93 11.61 19.26 6.61 8.23
WITH SALES CHARGE* 5.16 16.91 5.35 7.59
C SHARES WITHOUT CDSC 06/01/95 10.86 18.38 5.82 7.45
WITH CDSC* 9.86 18.38 5.82 7.45
I SHARES 10/31/89 11.93 19.65 6.97 8.64
RUSSELL 1000(R) VALUE INDEX 13.31 21.77 7.79 10.97
S&P 500/BARRA VALUE INDEX 14.89 21.85 5.03 9.34
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for
periods prior to February 12, 1993, and past performance of the I Shares
for the periods between February 12, 1993 and inception of the A and C
Shares on February 17, 1993 and June 1, 1995, respectively. The common
trust fund was not registered under the 1940 Act and therefore was not
subject to certain investment restrictions which may have adversely
affected performance.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 5.2%
Consumer staples 6.2%
Energy 10.6%
Financials 18.9%
Health Care 8.1%
Industrials 17.5%
Information Technology 3.7%
Repurchase Agreement 4.9%
Materials 5.0%
Short-Term Investment 12.2%
Telecommunications Services 3.6%
Utilities 4.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
16
MID-CAP EQUITY FUND
PORTFOLIO MANAGER
- - Chad Deakins, CFA
INVESTMENT CONCERNS
Mid capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Mid Cap Equity Fund returned 19.68% (I Shares) for the 12 month period ended
March 31, 2006. The Russell Midcap(R) Index returned 21.54% for the same period.
The Fund trailed its benchmark by 186 bps (1.86%) for the period. For the year,
the sectors contributing the most to the Fund's performance were Energy and
Information Technology. The sector detracting the most from performance was
Industrials. This underperformance was primarily due to the fund holding Ryder,
a stock that struggled for the first half of the year, and the Fund's relative
underexposure to the Railroad stocks. Telecommunication Services also hurt the
Fund's performance primarily due to the ascent of stocks that we deemed
speculative in nature.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Stock selection was negative in six of the ten sectors, strongest in Energy and
Information Technology and weakest in Industrials and Consumer Discretionary.
The stocks adding the most to performance were: MEMC Electronic Materials,
Corning, Humana, Hughes Supply, Marathon, and Valero. The stocks in the fund
that detracted the most from performance were: Pilgrim's Pride, Scholastic,
Abercrombie & Fitch, Lyondell, and Standard Pacific. Since the benchmark was up
over 21% for the year with each sector returning at least 7%, cash was also a
drag on the fund. As the year progressed, the market leadership went from the
Energy and Utility sectors to the Industrial and Materials sectors.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
In our opinion, mid cap stocks are still an attractive space for investment.
Small cap managers are capacity constrained and may be forced to drift up into
the Mid Cap category for liquidity reasons. Large cap managers also often buy
mid cap stocks to get exposure to higher earnings growth.(1)
We are currently more focused on selecting stocks with superior earnings growth
than on valuation at this point in the market cycle. From a sector standpoint,
we believe Industrials and Materials will continue to provide leadership while
stocks more consumer-oriented may lag.(1)
The primary focus of the Fund is to identify the best stocks within each sector,
not on sector allocation. The research process involves segmenting each stock
into its appropriate industry group/sector and focusing on the drivers of
performance in each group/sector. This allows us to focus on the important
factors for each sector. We supplement this process with fundamental
due-diligence before any stock is purchased. This approach blends growth
dynamics with valuation to select securities with favorable reward versus risk
characteristics. We believe the resulting portfolio is positioned to do well
within the Mid Cap Core universe.(1)
(1) Portfolio composition subject to change.
17
MID-CAP EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Mid-Cap Equity Russell
Fund (I Shares) MidCap Index
--------------- ------------
3/96 10000 10000
10195 10282
10562 10604
12/96 11121 11224
10800 11132
12077 12642
13794 14321
12/97 13483 14480
14662 16045
14380 15803
11510 13460
12/98 14357 15942
13976 15867
15291 17590
13720 16078
12/99 16674 18849
18564 20749
18305 19813
18552 21162
12/00 16180 20403
14167 18262
16713 20003
13441 16431
12/01 16565 19256
15484 20073
13560 18157
11650 14955
12/02 11798 16139
11339 15758
12938 18635
13470 19834
12/03 15218 22605
15760 23767
15779 24112
15759 23909
12/04 17814 27175
17995 27106
18903 28239
20006 29911
12/05 20298 30613
3/06 21537 32944
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell Midcap(R) Index a widely
recognized index that measures the performance of the 800 smallest companies in
the Russell universe. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------------
MID-CAP EQUITY FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------- -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/31/94 19.32 23.33 8.29 7.51
WITH SALES CHARGE* 12.42 20.93 7.01 6.88
C SHARES WITHOUT CDSC 06/05/95 18.44 22.56 7.61 6.85
WITH CDSC* 17.44 22.56 7.61 6.85
I SHARES 02/02/94 19.68 23.84 8.74 7.97
RUSSELL MIDCAP(R) INDEX 21.54 27.87 12.52 12.66
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 10.8%
Consumer Staples 3.0%
Energy 6.3%
Financials 13.3%
Health Care 10.1%
Industrials 10.8%
Information Technology 12.3%
Materials 3.8%
REITS 4.2%
Repurchase Agreements 2.6%
Short-Term Investments 17.7%
Telecommunication Services 0.4%
Utilities 4.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
18
MID-CAP VALUE EQUITY FUND
PORTFOLIO MANAGER
- - Don Wordell, CFA
INVESTMENT CONCERNS
Mid capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Mid-Cap Value Equity Fund returned 19.49% (I Shares), which was behind the
Russell Midcap(R) Value Index by 81 basis points (0.81%) for the trailing 12
month period ended March 31, 2006. The Fund's results were ahead of the Lipper
Mid Cap Value Average(2) which returned 16.97% over the same time period,
outperforming the peer group by 252 basis points (2.52%). The benchmark was
positively impacted by the large weighting and strong performance of REITs which
returned 43.8% over the same time period.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund's performance was driven by investments within the Industrial, Energy
and Technology sectors. In conducting a bottom-up look at corporate business
activity, our research concluded that we are on the front-end of a multi-year
capital expenditure cycle. This is evident within the commercial aerospace
industry and refining industry. The government is also participating with an
increase in the Federal Highway Spending Bill. Within the Industrial sector,
investments in Rockwell Automation (ROK) + 29.0%, a global provider of
industrial automation tools and MSC Industrial Direct Co. (MSM) + 85.9%, a
direct marketer of a broad range of industrial products that satisfy maintenance
and repair needs, drove the strong performance. The Energy holdings focused on
the coal and oil service sectors. Two of our best ideas were Foundation Coal
inc. (FCL) + 75.9%, a large coal producer with operations in all major coal
basins in the United States, and Tidewater Inc. (TDW) + 44.1%, a provider of
offshore supply vessels that service major E&P operators. The strong performance
in the Technology sector was due to Harris Corp. (HRS) + 45.9%, an international
communication equipment company, and Tektronix Inc. (TEK) + 46.9%, a
manufacturer and provider of measurement and monitoring solutions to various
industries.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The market seems to be grappling with conflicting economic and inflation data to
determine the appropriate level of short-term interest rates. We expect the
global economic backdrop to remain healthy. We continue our overweight of
Industrials because improved balance sheets and strong profits have given
companies the ability to accelerate new capital investment. The Energy sector
continues to be the focus for many investors. We believe that the long-term
supply/demand characteristics of the energy complex are tighter than most
analysts are anticipating. Due to the expectation that the commodity price will
be higher for longer, the Fund remains overweight Energy. Energy price driven
inflation and valuation concerns cause us to remain underweight REITs and
Utilities.
(1) Portfolio composition subject to change.
(2) The Lipper Mid Cap Value Funds Average is comprised of mutual funds that,
by portfolio practice, invest at least 75% of their equity assets in
companies with market capitalizations (on a three-year weighted basis) less
than 300% of the dollar-weighted median market capitalization of the middle
1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap value funds
typically have a below-average price-to-earnings ratio, price-to-book
ratio, and three-year sales-per-share growth value, compared to the S&P
MidCap 400 Index.
19
MID-CAP VALUE EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Mid-Cap
Value Russell
Equity Midcap
Fund Value
(I Shares) Index
---------- -------
11/30/2001 10000 10000
12/01 10515 10415
11225 11237
10079 10712
7753 8789
12/02 8280 9410
7599 9029
8950 10644
9406 11276
12/03 10723 12992
11355 13687
11676 13924
11585 14165
12/04 12890 16072
12836 16197
12969 16958
13616 17866
12/05 14110 18105
3/06 15337 19484
This chart assumes an initial hypothetical investment of $10,000 made
on 11/31/01. Total return is based on net change in N.A.V. (net asset
value) assuming reinvestment of distributions. Returns shown on this
page include reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell Midcap Value
Index a widely recognized index that measures the performance of the
companies in the Russell universe with lower price-to-earnings ratios
and lower forecasted growth values. The index is unmanaged and does
not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its
underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
MID-CAP VALUE EQUITY FUND INCEPTION DATE 1 YEAR 3 YEAR SINCE INCEPTION
- ------------------------- -------------- ------ ------ ---------------
A SHARES WITHOUT SALES CHARGE 10/27/03 19.09 -- 20.33
WITH SALES CHARGE* 12.21 -- 17.44
C SHARES WITHOUT CDSC 11/30/01 18.47 25.49 9.60
WITH CDSC* 17.47 25.49 9.60
I SHARES 11/30/01 19.49 26.38 10.38
RUSSELL MIDCAP(R) VALUE INDEX 20.30 29.23 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 10.6%
Consumer Staples 4.8%
Energy 7.0%
Financials 15.1%
Health Care 4.4%
Industrials 13.7%
Information Technology 5.5%
Materials 6.8%
Money Market Funds 3.6%
REITS 1.7%
Short-Term Investment 20.3%
Utilities 6.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
20
QUALITY GROWTH STOCK FUND (FORMERLY TAX SENSITIVE GROWTH STOCK FUND)
PORTFOLIO MANAGER
- - Parker W. Thomas, Jr.
INVESTMENT CONCERNS
The fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Quality Growth Stock Fund had a 7.54% (I Shares) return for the 12 months
ended March 31, 2006 compared with an 11.72% return for the S&P 500. The reasons
for this underperformance are shown below.(1)
- The holdings in the Energy Sector underperformed the Energy Sector of
the S&P 500. The smaller exploration and production companies had
returns in excess of 20%, while the larger integrated oils had a more
modest 10% price gain.
- The stocks in the Technology Sector underperformed their S&P 500
counterparts. In particular, the performance of Dell and Intel hurt
overall results as they were down 21.7% and 18.1%, respectively.
- The high quality of the companies held in the Fund turned out to be a
drag on performance. Thirty percent of the Fund, as of the beginning
of the year, had the top rating from Value Line for financial strength
and the stocks of these companies had an average price change of 2.0%.
- The Finance Sector, which had a return of 17.4%, was under-weighted in
the Fund.
- The Health Care Sector, which had a return of 8.4%, was over-weighted
in the Fund.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The last year has again seen the value equity style outperform the growth equity
style. For the 12 months ended March 31, 2006, the S&P 500 BARRA/Value Index(2)
had a 14.89% return while the S&P 500 BARRA/Growth Index(2) return was 8.50%.
This trend has now been in place for three years as the annualized return for
the Value Index is 21.85% compared with the 12.71% annualized return for the
Growth Index. Over long periods of time, the returns on these two indexes have
been very similar. (For the last ten years, the Value Index has averaged 9.34%
and the Growth Index 8.12%.)
Returns on large cap stocks have continued to lag returns on mid and small cap
stocks. For the 12 months ended March 31, 2006, the S&P 100 Stock Index (an
index of the largest 100 stocks in the S&P 500 Index) had a return of 6.9% while
the S&P Mid Cap(2) and Small Cap Indices(2) had returns of 21.62% and 24.07%,
respectively.
The spreads in price-earnings ratios(3) (P/E) between stocks of quality
companies and stocks of average to below average quality companies continued to
narrow. The current spread is negative. That is, the P/Es of high quality
companies are now lower than the P/Es of average to below average companies.
Historically, this relationship has indicated a good time to buy high quality
companies.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
We continue to believe that stocks of quality companies with superior growth
prospects will do well over time. The gap in return between value stocks and
growth stocks has been large for the last three years as value stocks have
outperformed growth stocks by about 9% per year. (However, for the three years
ended December 31, 1999, growth stocks outperformed value stocks by some 16% per
year.) In our opinion, it is time for the growth strategy to start doing well.
In general, a large portion of the Fund will be invested in large capitalization
stocks, but we will also own some mid-cap stocks, particularly in the Technology
area. This is due to a growing number of companies carving a niche in a
specialized area of technology. In addition, mid sized companies are often more
focused and flexible than large companies.(1)
The Fund's strategy for managing risk is to have a sizable portion in consistent
growth companies and also a sizable portion in companies which are more exposed
to the growth in the economy as a whole; to have representation in mega, large
and medium market cap companies, but with an overall market cap that exceeds $50
billion; and to have a portfolio of 50 - 70 stocks so as to reduce the stock
market risk associated with the misfortunes of any one company.(1)
(1) Portfolio composition subject to change.
(2) The S&P 100 Index is composed of 100 widely held common stocks listed on
the New York Stock Exchange, American Stock Exchange and Over-The-Counter
markets. The S&P MidCap 400 Index is comprised of 400 domestic stocks
chosen for market size (median market capitalization of $676 million),
liquidity and industry group representation. The S&P SmallCap 600 Index is
comprised of 600 domestic small capitalization stocks chosen for market
size, liquidity and industry group representation.
(3) Price-to-Earnings Ratio (P/E) is a valuation ratio of a company's current
share price compared to its per-share earnings.
21
QUALITY GROWTH STOCK FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Quality Growth Stock
Fund (I Shares) S&P 500 Index
-------------------- -------------
3/96 10000 10000
10316 10451
10719 10771
12/96 11592 11673
11936 11978
14096 14074
14933 15132
12/97 14929 15567
16653 17739
17102 18325
15396 16502
12/98 19666 20017
21373 21014
23120 22495
21752 21091
12/99 24531 24229
25548 24785
24653 24126
24266 23893
12/00 21552 22023
18064 19412
18766 20548
15879 17532
12/01 17627 19406
17763 19459
15607 16852
13079 13941
12/02 13745 15116
13616 14640
14841 16895
15163 17342
12/03 16653 19454
16832 19784
17011 20123
16588 19746
12/04 17792 21569
17321 21105
17460 21394
18035 22165
12/05 18229 22628
3/06 18626 23580
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------------
QUALITY GROWTH STOCK FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 10/14/03 7.21 10.70 0.45 6.33
WITH SALES CHARGE* 1.02 8.54 -0.74 5.70
C SHARES WITHOUT CDSC 12/15/98 6.46 9.88 -0.43 5.62
WITH CDSC* 5.46 9.88 -0.43 5.62
I SHARES 12/31/95 7.54 11.01 0.62 6.42
S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for
periods prior to December 12, 1998 and inception of the A and C Shares on
October 14, 2003 and December 15, 1998, respectively. The common trust fund
was not registered under the 1940 Act and therefore was not subject to
certain investment restrictions which may have adversely affected
performance Because the common trust fund was not registered under the 1940
Act, it is not possible to reflect tax consequences when calculating
after-tax returns for periods prior to the inception of these classes of
shares. Therefore the after-tax returns reflect performance since the
natural inception of these classes of shares.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 7.7%
Consumer Staples 6.8%
Energy 7.3%
Financials 14.9%
Health Care 13.8%
Industrials 14.2%
Information Technology 17.0%
Materials 3.0%
Short-Term Investments 14.7%
Telecommunication Services 0.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
22
SMALL CAP GROWTH STOCK FUND
PORTFOLIO MANAGER
- - Mark D. Garfinkel, CFA
INVESTMENT CONCERNS
Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Small Cap Growth Stock Fund's 27.55%
total return (I Shares) was right in line with the 27.84% return of the Russell
2000(R) Growth benchmark. Analysis of the year's solid results reveals pockets
of strength, offset by areas of weakness within the portfolio. On the positive
side, the Fund displayed excellent stock selection in the Consumer
Discretionary, Industrials and Healthcare sectors, which comprise close to half
the total weight of the benchmark. One primary area of weakness in the Fund's
performance relative to the benchmark was the Fund's significant underweight in
the best performing sector, Energy. Two other areas of weakness for the Fund
were poor stock selection in the Technology and Consumer Staples sectors.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
During the last 12 months there were a variety of domestic and global issues
impacting the markets, including several Fed Funds rate increases, devastating
hurricanes which brought widespread damage to the Gulf region, rising oil and
gas prices (reaching nearly $70 per barrel of oil), plus heightened geopolitical
concerns in the Middle East. Despite these issues, the U.S. economy posted
strong economic growth and steadily improving employment gains, driving the
stock market higher. Small cap stocks fared particularly well, outpacing both
mid cap and larger cap companies. These strong gains were fueled by strong
earnings growth that consistently exceeded Wall Street expectations.
Productivity gains and a focus on cost controls enabled many of our portfolio
companies to enjoy rising profit margins that currently are near historic high
levels. With the strong stock price gains of the last year, small cap valuation
levels versus large caps have moved modestly above neutral territory relative to
historical norms.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Economic and corporate profit growth has been strong, but should begin to slow,
given high energy prices, rising commodity prices, and rising interest rates.
Given the interest rate environment, the Fund has been underweight in the
Financials sector due to the negative impact of rising rates on bank profit
margins. As we near an end to the Fed rate increases, we will reverse this
course. High energy prices and the slowdown in the housing market should have a
dampening effect on the consumer, leading to a neutral to negative bias in
Consumer stocks. Conversely, high corporate cash balances and higher levels of
capacity utilization typically result in rising capital expenditures, benefiting
companies leveraged to business spending. Thus, we have overweight positions in
the Industrials and Technology sectors. Energy will remain underweight as we
continue to feel the current high oil price environment is not sustainable.
Lastly, the Healthcare sector has been modestly underweight versus the
benchmark, but Fund management is always on the lookout for great Healthcare
companies that filter through our process. As economic growth begins to peak, we
will focus on companies with the strongest and most stable business models, with
the least economic sensitivity, like most in the healthcare area. While the
above comments address the Fund's positioning in a general sense, it is our
bottoms-up fundamental process that determines which companies make it into the
portfolio. The Fund's investment process seeks out high-quality companies with
accelerating earnings and sales growth trends and solid fundamentals that will
lead to sustainable growth and increasing shareholder value.(1)
(1) Portfolio composition subject to change.
23
SMALL CAP GROWTH STOCK FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Small Cap Growth Russell 2000 S&P SmallCap 600/
Stock Fund (I Shares) Growth Index BARRA Growth Index
--------------------- ------------ ------------------
10/8/1998 10000 10000 10000
12/98 14630 12364 12201
12968 12156 11165
15661 13949 12405
14850 13263 12087
12/99 17637 17692 14589
20524 19334 15802
20504 17909 15872
20560 17197 15686
12/00 19712 13724 14671
17624 11637 12743
20444 13729 14592
15776 9874 12062
12/01 19550 12457 14498
19759 12213 15018
17750 10296 13675
14226 8081 11673
12/02 15111 8687 12271
14139 8350 11834
17559 10367 13832
19269 11452 14915
12/03 22007 12904 16850
23784 13625 17814
23639 13637 18601
22801 12818 18035
12/04 26234 14751 20558
25032 13744 20202
25846 14222 20965
27624 15120 22353
12/05 28311 15363 22403
3/06 31929 17570 24934
This chart assumes an initial hypothetical investment of $10,000 made on
10/08/98. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds has changed its standardized benchmark because the previous benchmark,
the S&P SmallCap 600/BARRA Growth Index, will be discontinued on June 30, 2006,
the Russell 2000(R) Growth Index will be used henceforth. The Russell 2000(R)
Growth Index is comprised of the securities in the Russell 2000 Index with a
greater-than-average growth orientation. Companies in this index tend to exhibit
higher price-to-book and price-to-earnings ratios. The S&P Small Cap 600/ BARRA
Growth Index a widely recognized index that measures the performance of the
small-capitalization growth sector of the U.S. equity market. It is a subset of
the S&P 600 Index consisting of those companies with the highest price-to-book
ratios within the S&P 600 Index. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
SINCE
SMALL CAP GROWTH STOCK FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------- --------------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 12/10/99 27.08 30.70 12.22 -- 16.44
WITH SALES CHARGE* 19.79 28.16 10.89 -- 15.52
C SHARES WITHOUT CDSC 10/08/98 26.21 29.86 11.46 -- 15.61
WITH CDSC* 25.21 29.86 11.46 -- 15.61
I SHARES 10/08/98 27.55 31.20 12.62 -- 16.80
RUSSELL 2000(R) GROWTH INDEX 27.84 28.14 8.59 5.51 --
S&P SMALLCAP 600/BARRA GROWTH INDEX 23.43 28.20 14.37 10.26 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The A Shares were offered beginning on December 10, 1999. The performance
shown for the A Shares prior to such date is based on the performance of
the I Shares (formerly T Shares) of the Fund, and has not been adjusted to
reflect A Share expenses. If it had been performance would have been lower.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 11.0%
Consumer Staples 1.7%
Energy 2.3%
Financials 6.1%
Health Care 13.1%
Industrials 13.5%
Information Technology 24.9%
Materials 3.4%
Repurchase Agreements 2.2%
Short-Term Investments 21.8%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
24
SMALL CAP VALUE EQUITY FUND
PORTFOLIO MANAGER
- - Brett Barner, CFA
INVESTMENT CONCERNS
Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Small Cap Value Fund (I Shares) continued its outperformance against the
Russell 2000(R) Value Index by returning 30.70% versus 23.77% over the 12 month
period ended March 31, 2006. The Fund managed to outpace the 19.91% return of
the Lipper Small Cap Value Funds Average(2) by 1079 basis points (10.79%) over
the same time period.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
The outperformance of the Fund was due to superior stock selection in
Industrials, Consumer Discretionary and Materials. In the Industrials sector,
the Fund's investment in FreightCar America Inc. (Rail) + 200%, a manufacturer
of aluminum bodied railroad freight cars, benefited from the market's focus on
the coal and railroad industries, and Harris Corp. (HRS) + 46.0%, an
international communication equipment company, are examples of the superior
stock selections which contributed to the Fund's excess return versus the index.
In the Consumer Discretionary sector, the Fund benefited from the investment in
Intrawest Corp. (IDR) + 79.6%, a destination and travel company that specializes
in mountain resorts, and Makita Corp. + 67.8%, a company engaged in the
manufacture and sale of power tools to the professional user. The Fund's
performance was also assisted by the focus within the Materials sector. An
example is Airgas Inc. (ARG) + 64.9%, a distributor of industrial, medical and
specialty gases. Airgas continues to see improvement in its end-markets and has
done a great job of expanding margins and growing earnings. The Fund's
underweight of Utilities and the overweight in Industrials positively
contributed to the Fund's outperformance versus the Russell 2000(R) Value
Index(1).
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund continues to utilize its bottoms-up approach to stock selection. This
approach seeks dividend paying stocks that are trading at the lower-end of
historical trading ranges, display characteristics of financial strength and
possess an identifiable catalyst that will assist in realizing true value. The
Fund does not make active sector allocations but allows the process to define
sector weights. The Fund will rely on the process for direction when making
alterations to sector positions. We continue to be concerned about valuations in
the Small Cap Value equity arena. Large inflows of capital by non-traditional
Small Cap Value investors are skewing valuations to the upside for most
securities in the universe. This phenomenon has in turn caused lower quality
names to increase in price and has made stock selection critical for
outperformance. These non-traditional investors may also place undue downside
pressure on valuations when they decide to exit the Small Cap realm. The Fund
also recognizes the impact of higher interest rates on security valuation. As
the shift to a higher interest rate environment proceeds, a re-valuation of
equities will occur. The Fund remains very cognizant of the effects of high
commodity prices on company feedstock and input costs. Higher prices could have
negative effects on operating margins, which could cause a re-valuation of
securities. Those equities with the highest valuations will see the most price
erosion.(1)
(1) Portfolio composition subject to change.
(2) The Lipper Small Cap Value Funds Average is comprised of funds that, by
portfolio practice, invest at least 75% of their equity assets in companies
with market capitalizations (on a three-year weighted basis) less than 250%
of the dollar-weighted median of the smallest 500 of the middle 1,000
securities of S&P SuperComposite 1500 Index. Small-cap value funds
typically have a below-average price-to-earnings ratio, price-to-book
ratio, and three-year sales-per-share growth value, compared to the S&P
SmallCap 600 Index.
25
SMALL CAP VALUE EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Small Cap Value
Equity Fund Russell 2000(R)
(I Shares) Value Index
--------------- ---------------
3/96 10000 10000
10623 10409
11042 10564
12/96 12402 11627
12992 11598
14934 13348
16798 15069
12/97 16443 15322
18035 16602
16430 16002
12817 13141
12/98 14231 14334
12338 12944
14784 15087
13580 13907
12/99 13844 14120
13273 14660
14051 14946
14989 16043
12/00 16331 17343
17228 17512
18754 19550
17228 16943
12/01 19795 19776
21716 21670
21322 21211
18642 16695
12/02 19450 17516
18205 16626
21317 20405
22996 21981
12/03 26656 25578
28172 27348
29281 27580
29325 27621
12/04 33446 31268
32816 30025
33283 31549
36324 32524
12/05 37614 32740
3/06 42888 37162
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell 2000(R) Value Index a
widely-recognized, capitalization weighted index of companies in the Russell
2000(R) Index with lower growth rates and price-to-book ratios. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL
TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------
SMALL CAP VALUE EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- --------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 10/09/03 30.44 32.65 19.79 15.57
WITH SALES CHARGE* 22.97 30.06 18.38 14.88
C SHARES WITHOUT CDSC 06/06/97 30.41 32.30 19.09 14.78
WITH CDSC* 29.41 32.30 19.09 14.78
I SHARES 08/31/94 30.70 33.06 20.01 15.67
RUSSELL 2000(R) VALUE INDEX 23.77 30.75 16.24 14.03
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for
periods prior to January 31, 1997, and past performance of the I Shares
(formerly T Shares) for the periods between January 31, 1997 and inception
of the C Shares (formerly L Shares) on June 6, 1997 and the A Shares on
October 9, 2003. The common trust fund was not registered under the 1940
Act and therefore was not subject to certain investment restrictions which
may have adversely affected performance.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 18.1%
Consumer Staples 2.8%
Energy 4.1%
Financials 14.8%
Health Care 3.6%
Industrials 27.7%
Information Technology 7.1%
Materials 7.5%
Repurchase Agreements 0.9%
Short-Term Investment 11.2%
Utilities 2.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
26
STRATEGIC QUANTITATIVE EQUITY FUND
PORTFOLIO MANAGER
- - Edward E. Best, CFA
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Strategic Quantitative Equity Fund
(I Shares) appreciated 12.17% including dividends. The Fund outperformed the S&P
500, the primary benchmark, by 0.44%. From March 31, 2005 to March 31, 2006, the
S&P 500 appreciated a healthy 11.72% including reinvested dividends. The market
appreciated in the face of numerous concerns including higher interest rates,
higher oil prices, a significant natural disaster, and an on-going war.
From March 31, 2005 until early September 2005, the S&P 500 appreciated 6%. From
early September, 2005 to October, 2005, the S&P 500 gave back the earlier gains.
The retrenchment was primarily due to concerns over the Katrina natural disaster
and its subsequent impact on the domestic energy supply. From late October, 2005
to March 31, 2006, the S&P 500 rallied nearly 11%, shrugging off prior worries.
From March 31, 2005 to March 31, 2006, Energy and Financial stocks performed the
best. Consumer stocks fared the worst. Energy stocks benefited from the
continuing rise in oil prices, going from the low $50s to the upper $60s.
Financial stocks were driven by several factors including an improving
investment banking environment and the benefit of a defensive rotation. Consumer
stocks were negatively impacted by concerns over a weakening consumer due to
higher interest rates and higher oil prices.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Strong stock selection within almost all sectors contributed most of the Fund's
excess returns. Stock selection within Health Care and Information Technology
were the largest contributors to the Fund's excess returns. Stock selection
within Consumer Staples detracted modestly from the excess returns.
Sector allocations detracted somewhat from the excess returns. While Energy was
the strongest performing sector, the Fund's benchmarkneutral Energy weight
neither added nor detracted from the excess returns. The Fund's modest
overweight in Consumer Discretionary and Healthcare detracted from the excess
returns.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund manager will continue to employ a consistent investment discipline,
with stock selection being the largest driver of anticipated performance. While
the Fund has on occasion pursued sector allocation opportunities aggressively,
the Fund currently does not have any major sector tilts. The Fund is modestly
overweight in Financials, Energy, Information Technology, and Healthcare. The
Fund is slightly underweight in Consumer Discretionary and
Industrials/Materials, and more heavily underweighted in Consumer Staples.(1)
(1) Portfolio composition subject to change.
27
STRATEGIC QUANTITATIVE EQUITY FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Strategic Quantitative
Equity Fund (I Shares) S&P 500 Index
---------------------- -------------
8/7/2003 10000 10000
10650 10087
12/03 12067 11314
12649 11506
12997 11703
12598 11485
12/04 14049 12544
14298 12275
14718 12443
15334 12891
12/05 15230 13160
3/06 16038 13713
This chart assumes an initial hypothetical investment of $10,000 made on 8/7/03.
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL
TOTAL RETURNS AS
OF 3/31/06 (%)
------------------
SINCE
STRATEGIC QUANTITATIVE EQUITY FUND INCEPTION DATE 1 YEAR INCEPTION
- ---------------------------------- -------------- ------ ---------
A SHARES WITHOUT SALES CHARGE 10/08/03 11.90 14.62
WITH SALES CHARGE* 5.50 11.92
C SHARES WITHOUT CDSC 10/13/03 11.11 12.71
WITH CDSC* 10.11 12.71
I SHARES 08/07/03 12.17 19.52
S&P 500 INDEX 11.72 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 10.5%
Consumer staples 6.4%
Energy 12.4%
Financials 23.8%
Health Care 14.1%
Industrials 12.8%
Information Technology 18.2%
Materials 1.1%
Repurchase Agreement 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
28
BALANCED FUND
PORTFOLIO MANAGER(S)
- - Robert J. Rhodes, CFA
- - Elizabeth G. Pola, CFA
- - John Talty, CFA
- - Perry Troisi
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Balanced Fund returned 5.10% (I
Shares). The Fund targets an equity-bond allocation of 60/40%, and thus uses a
blended benchmark for performance purposes of 60% S&P 500 Index, 40% Lehman
Government/Credit Bond Index. The return for this blended benchmark was 7.82%
for the year.
The Fund's bond segment performed about in line, but the equity portfolio had a
disappointing year. The primary reasons were as follows. Stock selection was
subpar in the Consumer Discretionary sector, as the quality growth names we
favored had good earnings results but suffered valuation compression. Second,
the portfolio was underweighted energy, a posture which was particularly
detrimental in the September quarter when two major hurricanes sent energy
stocks into orbit. Third, stock selection in Healthcare was inadequate.
Fortunately, two of these three issues improved substantially in the second half
of the year. Energy stocks cooled off and our consumer names recovered. We are
working diligently, and making progress, on improving the Healthcare
performance.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Also impeding Fund performance for the year was a bias toward higher quality
stocks and bonds. Low quality, riskier stocks rose a lot more, and low quality
bonds were approximately five percentage points ahead of Government bonds. Also,
on the equity side we were a little more tilted to large cap stocks, but small
and mid-cap stocks continued to power ahead.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
As to the year ahead, our strategy and positioning remains intact. We strongly
believe lower quality stocks and bonds are mispriced in today's environment,
relative to their inherent risk. In terms of the economic outlook, business
risks are rising, not falling, with slowing profits, high energy prices, and the
Fed tightening interest rates contributing to eventual stress at some point. In
the bond portfolio, we have overweighted U.S. Government bonds given
unattractive prices for lower quality, and for the equity portfolio, the
holdings emphasize companies with strong balance sheets and proven dividend
growth. For example, 3-year dividend growth of stocks held in the Fund is almost
19% annualized, compared to only 11% for the S&P 500.
In closing, we believe shareholders of the Fund should be able to sleep well at
night. To this end, we have attempted to position the Fund toward stocks and
bonds which can do well in a slowing economy where risky securities can be
treacherous and volatile. We expect this strategy to be successful over the next
12 months, and appreciate your interest in the Balanced Fund as a dependable
long-term vehicle for competitive returns.(1)
(1) Portfolio composition subject to change.
29
BALANCED FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
60/40 Hybrid Index (60% S&P
Balanced Fund Lehman Brothers U.S. 500 Index and 40% Lehman Brothers
(I Shares) Government/Credit Index S&P 500 Index U.S. Government/Credit Index
------------- ----------------------- ------------- ---------------------------------
3/96 10000 10000 10000 10000
10312 10047 10451 10289
10572 10224 10771 10556
12/96 10978 10537 11673 11216
11065 10446 11978 11358
12306 10826 14074 12700
12954 11205 15132 13458
12/97 13299 11565 15567 13869
14486 11740 17739 15104
14977 12047 18325 15564
14124 12644 16502 14959
12/98 15899 12661 20017 16831
15992 12509 21014 17251
16756 12372 22495 17902
15811 12439 21091 17264
12/99 16639 12389 24229 18749
17240 12722 24785 19231
17345 12906 24126 19034
17548 13277 23893 19153
12/00 17437 13857 22023 18577
16846 14300 19412 17475
17543 14343 20548 18120
16510 15026 17532 16815
12/01 17476 15035 19406 17894
17351 14964 19459 17899
16316 15526 16852 16691
15529 16411 13941 15280
12/02 15985 16694 15116 16188
15945 16969 14640 15988
16794 17567 16895 17678
16842 17478 17342 17933
12/03 17591 17474 19454 19226
18030 18012 19784 19659
17812 17441 20123 19609
17726 18061 19746 19666
12/04 18575 18206 21569 20811
18180 18084 21105 20490
18295 18707 21394 20943
18219 18527 22165 21318
12/05 18739 18638 22628 21638
3/06 19106 18449 23580 22093
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Government/Credit Index and a Hybrid blend of 60/40 (60% of the S&P 500 Index
and 40% of the Lehman Brothers U.S. Government/Credit Index). The S&P 500 Index
is a market valueweighted index of 500 stocks designed to mimic the overall U.S.
equity market's industry weightings. The Lehman Brothers U.S. Government/ Credit
Index is a composite index made up of the Lehman Brothers U.S. Government Index,
and the Lehman Brothers U.S. Credit Index, which include U.S. government,
Treasury and agency securities, as well as high-grade corporate bonds. The
indices are unmanaged and does not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
INCEPTION ----------------------------------
BALANCED FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/03/94 4.77 5.88 2.24 6.36
WITH SALES CHARGE* -1.23 3.81 1.03 5.73
C SHARES WITHOUT CDSC 06/14/95 3.97 5.12 1.47 5.56
WITH CDSC* 3.00 5.12 1.47 5.56
I SHARES 01/03/94 5.10 6.21 2.55 6.69
LEHMAN BROTHERS U.S. GOVERNMENT
/CREDIT INDEX 2.02 2.83 5.23 6.32
S&P 500 INDEX 11.72 17.21 3.97 8.95
HYBRID INDEX (60% S&P 500 and
40% Lehman Brothers U.S
Govt/Credit Index) 7.82 11.38 4.80 8.25
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
SECTOR WEIGHTINGS (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Consumer Discretionary 7.7%
Consumer Staples 1.5%
Energy 2.4%
Financials 7.6%
Health Care 7.6%
Industrials 8.1%
Information Technology 7.4%
Materials 0.5%
Telecommunication Services 0.6%
Corporate Bonds 5.5%
Fixed Income Securities 1.4%
U.S. Treasury Obligations 22.8%
Short-Term Investments 23.1%
Repurchase Agreements 3.8%
(1) PORTFOLIO COMPOSITION SUBJECT TO CHANGE.
30
LIFE VISION AGGRESSIVE GROWTH FUND
PORTFOLIO MANAGER
- - Alan Gayle
INVESTMENT CONCERNS
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Life Vision Aggressive Growth Fund targets an equity-cash allocation of
90/10%, and thus uses a blended benchmark for performance purposes of 90% S&P
500 and 10% Citigroup 3 Month Treasury Bill. For the year ended March 31, 2006,
the Fund outperformed its benchmark. The Fund (I Shares) returned 13.90%
compared with a 10.90% return for the benchmark.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The allocations to International, Mid-Cap, and Small Caps helped performance
throughout the year, while individual manager performance was instrumental in
the first quarter of 2006.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Near-term risks are somewhat elevated at present given the rise in bond yields,
higher energy prices, and a flat/inverted yield curve. We are emphasizing Large
Caps, the Growth style and International.(1)
FUND ALLOCATION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Capital Appreciation Fund .......... 24.4%
Large Cap Relative Value Fund ...... 18.8%
International Equity Index Fund .... 15.2%
Strategic Quantiative Equity Fund .. 8.0%
Large Cap Value Equity Fund ........ 7.9%
Aggressive Growth Stock Fund ....... 7.1%
Mid-Cap Equity Fund ................ 6.0%
Prime Quality Money Market Fund .... 5.1%
Mid-Cap Value Equity Fund .......... 3.0%
Small Cap Growth Stock Fund ........ 2.0%
Small Cap Value Equity Fund ........ 1.5%
Emerging Growth Stock Fund ......... 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
31
LIFE VISION AGGRESSIVE GROWTH FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
90/10 Hybrid Index (90% S&P
Life Vision Aggressive Citigroup 3 500 Index and 10% Citigroup
Growth Fund (I Shares) S&P 500 Index Month Treasury Index 3 Month Treasury Bill Index)
---------------------- ------------- -------------------- ----------------------------
3/96 10000 10000 10000 10000
10445 10451 10127 10419
10572 10771 10259 10722
12/96 11144 11673 10391 11544
10902 11978 10523 11833
12706 14074 10659 13703
13852 15132 10797 14653
12/97 13655 15567 10937 15054
15324 17739 11078 16958
15238 18325 11219 17485
12918 16502 11360 15953
12/98 15336 20017 11490 19012
15522 21014 11617 19887
16800 22495 11748 21173
15477 21091 11887 20005
12/99 16918 24229 12035 22699
17568 24785 12196 23210
17660 24126 12371 22689
18069 23893 12555 22531
12/00 17983 22023 12752 20978
16606 19412 12930 18765
17511 20548 13068 19777
15194 17532 13187 17170
12/01 16811 19406 13273 18829
17058 19459 13331 18886
15616 16852 13390 16607
13002 13941 13447 14020
12/02 13767 15116 13499 15095
13101 14640 13540 14672
14944 16895 13578 16702
15504 17342 13612 17104
12/03 17441 19454 13644 18977
18015 19784 13676 19271
18200 20123 13708 19574
17833 19746 13753 19250
12/04 19710 21569 13813 20855
19436 21105 13891 20463
19488 21394 13987 20731
20219 22165 14099 21420
12/05 20851 22628 14228 21844
3/06 22136 23580 14373 22693
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Citigroup 3 Month
Treasury Bill Index and a Hybrid blend of 90/10 (90% of the S&P 500 Index and
10% of the Citigroup 3 Month Treasury Bill Index). The S&P 500 Index is a market
value-weighted index of 500 stocks designed to mimic the overall U.S. equity
market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks
the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------------
LIFE VISION AGGRESSIVE GROWTH FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ---------------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 10/16/03 13.50 18.79 5.75 8.19
WITH SALES CHARGE* 7.01 16.48 4.50 7 55
B SHARES WITHOUT CDSC 03/11/03 13.10 18.25 5.43 8.02
WITH CDSC* 8.10 17.29 5.10 8.02
C SHARES WITHOUT CDSC 04/04/05 12.79 18.72 5.71 8.16
WITH CDSC* 11.79 18.72 5.71 8.16
I SHARES 12/31/92 13.90 19.11 5.92 8.27
S&P 500 INDEX 11.72 17.21 3.97 8.95
CITIGROUP 3 MONTH TREASURY BILL INDEX 3.47 2.01 2.14 3.69
HYBRID INDEX (90% of the S&P 500 Index
and 10% of the Citigroup 3
Month Treasury Bill Index) 10.90 15.65 3.87 8.54
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES
CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005,
L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The quoted performance of the Life Vision Aggressive Growth Fund includes
performance of certain accounts advised by Crestar Bank, for periods dating
back to December 31, 1992 and prior to the Mutual Fund's commencement of
operations on June 30, 1997, as adjusted to reflect the expenses associated
with the Mutual Funds. The accounts were not registered with the Securities
and Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the accounts had
been registered, the account's performance may have been adversely
affected. For the period prior to October 16, 2003 (Class A Shares) and
April 1, 2005 (Class C Shares formerly L Shares), the quoted performance
reflects the performance of the Class I Shares (formerly T Shares).
Class B Shares are closed to new investors.
32
LIFE VISION CONSERVATIVE FUND
PORTFOLIO MANAGER
- - Alan Gayle
INVESTMENT CONCERNS
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
The Life Vision Conservative Fund targets an bond-equity-cash allocation of 70%
Lehman Aggregate Bond Index, 20% S&P 500 Index and 10% Citigroup 3 Month
Treasury Bill. For the year ended March 31, 2006, the Fund (I Shares) returned
4.96% compared with a 4.27% return for the benchmark.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The allocations to International, Mid-Caps and Small Caps helped performance
throughout the year, while a moderate overweight in equities generally helped
performance for most of the year. Individual manager performance was
instrumental in the first quarter of 2006.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Near-term risks are somewhat elevated at present given the rise in bond yields,
higher energy prices, and a flat/inverted yield curve. We are currently neutral
in our total equity weight, and we are emphasizing Large Caps, the Growth style
and International.(1)
FUND ALLOCATION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Core Bond Fund ...................... 69.9%
Prime Quality Money Market Fund ..... 9.0%
International Equity Index Fund ..... 5.1%
Large Cap Relative Value Fund ....... 3.5%
Capital Appreciation Fund ........... 3.5%
Strategic Quantitative Equity Fund .. 1.5%
Aggressive Growth Stock Fund ........ 1.5%
Small-Cap Value Equity Fund ......... 1.0%
Small-Cap Growth Fund ............... 1.0%
Mid-Cap Value Equity Fund ........... 1.0%
Mid-Cap Equity Fund ................. 1.0%
Large Cap Value Equity Fund ......... 1.0%
High Income Fund .................... 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
33
LIFE VISION CONSERVATIVE FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
70/20/10 Hybrid Index (70%
Citigroup 3 Lehman Brothers U.S. Aggregate
Life Vision Lehman Brothers Month Bond Index, 20% S&P 500 Index
Conservative U.S. Aggregate S&P 500 Treasury and 10% Citigroup 3 Month
Fund (I Shares) Bond Index Index Bill Index Treasury Bill Index)
--------------- --------------- ------- ----------- ------------------------------
3/11/2003 10000 10000 10000 10000 10000
9950 9992 10097 10010 10015
10472 10242 11652 10038 10494
10606 10227 11960 10063 10545
12/03 11005 10260 13417 10087 10822
11268 10532 13645 10110 11063
11136 10275 13879 10135 10914
11280 10604 13618 10167 11120
12/04 11676 10705 14876 10212 11402
11606 10654 14556 10270 11323
11827 10975 14755 10341 11601
11879 10901 15287 10423 11640
12/05 12048 10965 15606 10518 11749
3/06 12181 10895 16263 10626 11806
This chart assumes an initial hypothetical investment of $10,000 made on
3/11/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index, the S&P 500 Index, the Citigroup 3 Month Treasury Bill Index, and a
Hybrid blend of 70/20/10 (70% of the Lehman Brothers U.S. Aggregate Bond Index,
20% of the S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index).
The Lehman Brothers U.S. Aggregate Bond is comprised of securities that are
SEC-registered, taxable, and dollar denominated. The S&P 500 Index is a market
value-weighted index of 500 stocks designed to mimic the overall U.S. equity
market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks
the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and
does not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL
TOTAL RETURNS AS OF 3/31/06(%)
LIFE VISION ---------------------------------
CONSERVATIVE FUND INCEPTION DATE+ 1 YEAR 3 YEAR SINCE INCEPTION
- ----------------- --------------- ------ ------ ---------------
A SHARES WITHOUT SALES CHARGE 11/11/03 4.63 6.71 6.41
WITH SALES CHARGE* -0.32 4.98 4.73
B SHARES WITHOUT CDSC 03/11/03 4.23 6.36 6.07
WITH CDSC* -0.77 5.17 5.19
C SHARES WITHOUT CDSC 04/04/05 4.13 6.69 6.40
WITH CDSC* 3.13 6.69 6.40
I SHARES 11/06/03 4.96 6.98 6.67
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92
S&P 500 INDEX 11.72 17.21 --
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 --
HYBRID INDEX (70% Lehman Brothers U.S.
Aggregate Bond Index, 20% S&P 500
Index and 10% of the Citigroup 3 Month
Treasury Bill Index) 4.27 5.64 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES
CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005,
L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ For the period prior to November 11, 2003 (Class A Shares) and April 1,
2005 (Class C Shares formerly L Shares), the quoted performance reflects
the performance of the Class I Shares (formerly T Shares) and Class B
Shares prior to November 6, 2003. The I Shares (formerly the T Shares)
opened on November 6, 2003. The performance shown prior to that date is
based on the performance of the B Shares.
Class B Shares are closed to new investors.
34
LIFE VISION GROWTH AND INCOME FUND
PORTFOLIO MANAGER
- - ALAN GAYLE
INVESTMENT CONCERNS
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2006?
The Life Vision Growth and Income Fund targets an equity-bond-cash allocation of
65% S&P 500, 25% Lehman Aggregate Bond Index and 10% Citigroup 3 Month Treasury
Bill. For the year ended March 31, 2006, the Fund (I Shares) returned 11.05%
compared with a 8.61% return to the benchmark.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
The allocations to International, Mid-Caps and Small Caps helped performance
throughout the year, while a moderate overweight in equities generally helped
performance for most of the year. Individual manager performance was
instrumental in the first quarter of 2006.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Near-term risks are somewhat elevated at present given the rise in bond yields,
higher energy prices, and a flat/inverted yield curve We are currently neutral
in our total equity weight, and we are emphasizing Large Caps, the Growth style
and International.(1)
FUND ALLOCATION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Core Bond Fund 20.9%
Capital Appreciation Fund 18.1%
Large Cap Relative Value Fund 13.9%
International Equity Index Fund 11.2%
Prime Quality Money Market Fund 7.9%
Large Cap Value Equity Fund 5.9%
Strategic Quantative Equity Fund 5.9%
Aggressive Growth Stock Fund 5.3%
Mid-Cap Equity Fund 4.4%
Mid-Cap Value Equity Fund 2.2%
Small Cap Growth Stock Fund 1.5%
Small Cap Value Equity Fund 1.1%
High Income Fund 1.0%
Emerging Growth Stock Fund 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
35
LIFE VISION GROWTH AND INCOME FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
65/25/10 Hybrid Index (65% S&P 500 Index,
Life Vision Lehman Brothers Citigroup 3 25% Lehman Brothers U.S. Aggregate Bond
Growth and Income U.S. Aggregate S&P 500 Month Index, and 10% of the Citigroup 3 Month
Fund (I Shares) Bond Index Index Treasury Index Treasury Bill Index)
----------------- --------------- ------- -------------- -----------------------------------------
3/96 10000 10000 10000 10000 10000
10314 10057 10451 10127 10303
10435 10242 10771 10259 10560
12/96 10918 10550 11673 10391 11192
10725 10491 11978 10523 11381
12077 10877 14074 10659 12743
12951 11240 15132 10797 13482
12/97 12892 11571 15567 10937 13843
14060 11750 17739 11078 15202
14043 12025 18325 11219 15639
12610 12533 16502 11360 14700
12/98 14332 12575 20017 11490 16822
14401 12511 21014 11617 17421
15257 12401 22495 11748 18298
14508 12486 21091 11887 17506
12/99 15472 12471 24229 12035 19394
15913 12746 24785 12196 19817
15965 12967 24126 12371 19507
16375 13358 23893 12555 19492
12/00 16567 13921 22023 12752 18547
15756 14342 19412 12930 17124
16450 14422 20548 13068 17842
14985 15088 17532 13187 16227
12/01 16145 15094 19406 13273 17357
16366 15108 19459 13331 17402
15491 15668 16852 13390 15994
13497 16386 13941 13447 14443
12/02 14210 16644 15116 13499 15213
13668 16875 14640 13540 14992
15474 17297 16895 13578 16440
16046 17272 17342 13612 16706
12/03 17619 17327 19454 13644 17981
18161 17787 19784 13676 18293
18177 17354 20123 13708 18396
18008 17908 19746 13753 18312
12/04 19474 18079 21569 13813 19447
19268 17993 21105 13891 19164
19401 18535 21394 13987 19481
19933 18409 22165 14099 19928
12/05 20466 18519 22628 14228 20251
3/06 21397 18400 23580 14373 20813
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid
blend of 65/25/10 (65% of the S&P 500 Index, 25% of the Lehman Brothers U.S.
Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The
S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic
the overall U.S. equity market's industry weightings. The Lehman Brothers
U.S. Aggregate Bond is comprised of securities that are SEC-registered, taxable,
and dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the
performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
---------------------------------
LIFE VISION GROWTH AND INCOME FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ---------------------------------- --------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 11/05/03 10.73 15.79 6.14 7.81
WITH SALES CHARGE* 4.40 13.53 4.89 7.17
B SHARES WITHOUT CDSC 03/11/03 10.21 15.18 5.83 7.66
WITH CDSC* 5.21 14.17 5.51 7.66
C SHARES WITHOUT CDSC 04/06/05 9.46 15.55 6.01 7.75
WITH CDSC* 8.46 15.55 6.01 7.75
I SHARES 12/31/92 11.05 16.11 6.31 7.90
S&P 500 INDEX 11.72 17.21 3.97 8.95
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92 5.11 6.29
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 2.14 3.69
HYBRID INDEX (65% of the S&P 500 Index,
25% of the Lehman Brothers U.S.
Aggregate Bond Index and 10% of the
Citigroup 3 Month Treasury Bill Index) 8.61 11.56 3.98 7.61
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES
CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005,
L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The quoted performance of the Life Vision Growth and Income Fund includes
performance of certain accounts advised by Crestar Bank, for periods dating
back to December 31, 1992 and prior to the Mutual Fund's commencement of
operations on June 30, 1997, as adjusted to reflect the expenses associated
with the Mutual Funds. The accounts were not registered with the Securities
and Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the accounts had
been registered, the account's performance may have been adversely
affected. For the period prior to November 5, 2003 (Class A Shares) and
April 1, 2005 (Class C Shares formerly L Shares), the quoted performance
reflects the performance of the Class I Shares (formerly T Shares).
Class B Shares are closed to new investors.
36
LIFE VISION MODERATE GROWTH FUND
PORTFOLIO MANAGER
- - ALAN GAYLE
INVESTMENT CONCERNS
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalent offer low risk and low return potential.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31,2006?
The Life Vision Moderate Growth Fund targets an equity-bond-cash allocation of
50% S&P 500,40% Lehman Brothers US Aggregate Bond index and 10% Citigroup 3
Month Treasury Bill. For the year ended March 31,2006, the Fund (I Shares)
returned 8.48% compared with a 7.10% return for the benchmark.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31,2006?
The allocations to International, Mid-Caps and Small Caps helped performance
throughout the year, while a moderate overweight in equities generally helped
performance for most of the year. Individual manager performance was
instrumental in the first quarter of 2006. (1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Near-term risks are somewhat elevated at present given the rise in bond yields,
higher energy prices, and a flat/inverted yield curve We are currently neutral
in our total equity weight, and we are emphasizing Large Caps, the Growth style
and International.(1)
FUND ALLOCATION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Core Bond Fund..................... 40.9%
Capital Appreciation Fund.......... 12.8%
Large Cap Relative Value Fund...... 9.9%
Prime Quality Money Market Fund.... 8.1%
International Equity Index Fund.... 8.0%
Strategic Quantative Equity Fund... 4.2%
Large Cap Value Equity Fund........ 4.1%
Aggressive Growth Stock Fund....... 3.8%
Mid-Cap Equity Fund................ 3.5%
Mid-Cap Value Equity Fund.......... 1.6%
Small Cap Growth Stock Fund........ 1.1%
High Income Fund................... 1.0%
Small Cap Value Equity Fund........ 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
37
LIFE VISION MODERATE GROWTH FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Life Vision Lehman 50/40/10 Hybrid Index (50% S&P 500 Index,
Moderate Brothers U.S. Citigroup 3 40% Lehman Brothers U.S. Aggregate Bond
Growth Fund (I Aggregate Bond S&P 500 Month Treasury Index and 10% Citigroup 3 Month Treasury
Shares) Index Index Bill Index Bill Index)
-------------- -------------- ------- -------------- -----------------------------------------
3/96 10000 10000 10000 10000 10000
10272 10057 10451 10127 10261
10391 10242 10771 10259 10512
12/96 10828 10550 11673 10391 11094
10651 10491 11978 10523 11233
11834 10877 14074 10659 12378
12611 11240 15132 10797 13034
12/97 12605 11571 15567 10937 13398
13605 11750 17739 11078 14421
13690 12025 18325 11219 14816
12596 12533 16502 11360 14368
12/98 14011 12575 20017 11490 15888
14084 12511 21014 11617 16269
14741 12401 22495 11748 16802
14047 12486 21091 11887 16337
12/99 14879 12471 24229 12035 17540
15306 12746 24785 12196 17942
15320 12967 24126 12371 17853
15685 13358 23893 12555 18020
12/00 15691 13921 22023 12752 17637
15170 14342 19412 12930 16814
15691 14422 20548 13068 17371
14626 15088 17532 13187 16384
12/01 15518 15094 19406 13273 17268
15645 15108 19459 13331 17314
15073 15668 16852 13390 16382
13686 16386 13941 13447 15224
12/02 14233 16644 15116 13499 15992
13871 16875 14640 13540 15833
15350 17297 16895 13578 17197
15840 17272 17342 13612 17426
12/03 17077 17327 19454 13644 18498
17609 17787 19784 13676 18856
17490 17354 20123 13708 18837
17476 17908 19746 13753 18907
12/04 18601 18079 21569 13813 19852
18436 17993 21105 13891 19615
18656 18535 21394 13987 20002
19007 18409 22165 14099 20327
12/05 19402 18519 22628 14228 20609
3/06 19999 18400 23580 14373 21008
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid
blend of 50/40/10 (50% of the S&P 500 Index, 40% of the Lehman Brothers U.S.
Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The
S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic
the overall U.S. equity market's industry weightings. The Lehman Brothers U.S.
Aggregate Bond is comprised of securities that are SEC-registered, taxable, and
dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the
performance of 3 month U.S. Treasury Bills. The indices are unmanaged and does
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
LIFE VISION MODERATE GROWTH FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- -------------------------------- ---------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 10/10/03 8.16 12.72 5.54 7.10
WITH SALES CHARGE* 1.93 10.52 4.30 6.47
B SHARES WITHOUT CDSC 03/11/03 7.60 12.15 5.19 6.92
WITH CDSC* 2.60 11.08 4.86 6.92
C SHARES WITHOUT CDSC 4/6/05 7.09 12.49 5.41 7.04
WITH CDSC* 6.09 12.49 5.41 7.04
I SHARES 12/31/92 8.48 12.97 5.68 7.18
S&P 500 INDEX 11.72 17.21 3.97 8.95
LEHMAN BROTHERS U.S. AGGREGRATE BOND INDEX 2.26 2.92 5.11 6.29
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 2.14 3.69
HYBRID INDEX (50% of the S&P 500 Index, 40%
of the Lehman Brothers U.S. Aggregate
Bond Index and 10% of the Citigroup 3
Month Treasury Bill Index) 7.10 9.89 4.55 7.71
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES
CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005,
L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The quoted performance of the Life Vision Moderate Growth Fund includes
performance of certain accounts advised by Crestar Bank, for periods dating
back to December 31, 1992 and prior to the Mutual Fund's commencement of
operations on June 30, 1997, as adjusted to reflect the expenses associated
with the Mutual Funds. The accounts were not registered with the Securities
and Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the accounts had
been registered, the account's performance may have been adversely
affected. For the period prior to October 10, 2003 (Class A Shares) and
April 1, 2005 (Class C Shares formerly L Shares), the quoted performance
reflects the performance of the Class I Shares (formerly T Shares).
Class B Shares are closed to new investors.
38
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
AGGRESSIVE GROWTH STOCK FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
COMMON STOCKS (98.4%)
CONSUMER DISCRETIONARY (23.4%)
Best Buy Co., Inc. 114,700 6,415
Blue Nile, Inc. * 118,600 4,174
Coach, Inc. * 144,300 4,990
eBay, Inc. * 289,700 11,316
Garmin Ltd. 4,254 338
Getty Images, Inc. * 54,102 4,051
IAC/Interactive Corp. * 85,550 2,521
Monster Worldwide, Inc. * 69,502 3,465
Omnicom Group, Inc. 36,800 3,064
Starbucks Corp. * 333,100 12,538
Urban Outfitters, Inc. * 102,700 2,520
Walt Disney Co. (The) 193,700 5,402
--------
60,794
--------
CONSUMER STAPLES (3.7%)
Whole Foods Market, Inc. 144,100 9,574
--------
FINANCIALS (10.0%)
BlackRock, Inc., Cl A 38,300 5,363
Calamos Asset Management, Inc.,
Cl A 69,100 2,584
Capital One Financial Corp. 40,500 3,261
Euronet Worldwide, Inc. * 83,800 3,170
Fiserv, Inc. * 6,081 259
Greenhill & Co., Inc. 20,500 1,355
Legg Mason, Inc. 36,100 4,524
Portfolio Recovery Associates,
Inc. * 70,500 3,302
SLM Corp. 42,500 2,207
--------
26,025
--------
HEALTH CARE (17.4%)
Alcon, Inc. 52,500 5,474
Celgene Corp. * 96,900 4,285
Covance, Inc. * 24,500 1,439
Edwards Lifesciences Corp. * 30,100 1,309
Foxhollow Technologies, Inc. * 69,100 2,111
Gen-Probe, Inc. * 25,100 1,384
Genentech, Inc. * 62,241 5,260
Gilead Sciences, Inc. * 176,050 10,955
IDEXX Laboratories, Inc. * 26,800 2,314
Kyphon, Inc. * 53,100 1,975
Laboratory Corp. of America
Holdings * 1,472 86
Psychiatric Solutions, Inc. * 165,900 5,496
Varian Medical Systems, Inc. * 56,700 3,184
--------
45,272
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
INFORMATION TECHNOLOGY (37.8%)
Alliance Data Systems Corp. * 90,200 4,219
Apple Computer, Inc. * 199,800 12,531
aQuantive, Inc. * 231,200 5,442
Broadcom Corp., Cl A * 160,400 6,923
CheckFree Corp. * 4,869 246
Cisco Systems, Inc. * 19,225 417
CNET Networks, Inc. * 209,900 2,983
Cognizant Technology Solutions
Corp., Cl A * 211,400 12,575
Digital Insight Corp. * 38,000 1,383
F5 Networks, Inc. * 48,500 3,516
First Data Corp. 3,382 158
Google, Inc. * 20,500 7,995
International Business Machines
Corp. 4,252 351
Microsoft Corp. 29,054 791
Paychex, Inc. 149,400 6,224
QUALCOMM, Inc. 245,700 12,435
SiRF Technology Holdings, Inc.
* 60,900 2,156
SRA International, Inc., Cl A * 194,000 7,320
Yahoo!, Inc. * 332,700 10,733
--------
98,398
--------
SOFTWARE (0.7%)
Adobe Systems, Inc. 54,000 1,886
--------
TELECOMMUNICATION SERVICES (5.4%)
NII Holdings, Inc. * 163,300 9,629
Sprint Nextel Corp. 137,581 3,555
Time Warner Telecom, Inc., Cl A
* 40,700 731
--------
13,915
--------
Total Common Stocks
(Cost $225,221) 255,864
--------
DEPOSITARY RECEIPTS (0.1%)
Nasdaq-100 Trust, Ser 1 7,609 319
--------
Total Depositary Receipts
(Cost $279) 319
--------
</Table>
See Notes to Financial Statements.
39
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
AGGRESSIVE GROWTH STOCK FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENT (4.9%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $12,617,851
(collateralized by U.S.
Government Agencies; 5.500%,
02/01/35; total market value
$12,868,174) 12,613 12,613
--------
Total Repurchase Agreement
(Cost $12,613) 12,613
--------
Total Investments
(Cost $238,113) (a) -- 103.4% 268,796
Liabilities in excess of other
assets -- (3.4)% (8,830)
--------
Net Assets -- 100.0% $259,966
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $238,401
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $36,604
Unrealized Depreciation................. (6,209)
-------
Unrealized Appreciation
(Depreciation)........................ $30,395
=======
</Table>
Cl -- Class
Ser -- Series
See Notes to Financial Statements.
40
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CAPITAL APPRECIATION FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (97.4%)
CONSUMER DISCRETIONARY (16.8%)
Advance Auto Parts, Inc. 444,400 18,505
Bed Bath & Beyond, Inc. * 300,000 11,520
Dow Jones & Co., Inc. (b) 295,400 11,609
Harley-Davidson, Inc. 529,700 27,481
Home Depot, Inc. (The) (b) 662,900 28,041
Lowe's Cos., Inc. (b) 519,000 33,443
Marriott International,
Inc., Cl A 187,700 12,876
New York Times Co. (The),
Cl A (b) 374,500 9,479
Newell Rubbermaid, Inc.
(b) 532,000 13,401
NIKE, Inc., Cl B 175,400 14,927
Time Warner, Inc. 840,100 14,105
TJX Cos., Inc. (The) 652,000 16,183
Univision Communications,
Inc., Cl A * (b) 584,300 20,141
Walt Disney Co. (The) (b) 420,000 11,714
----------
243,425
----------
CONSUMER STAPLES (3.3%)
Colgate-Palmolive Co. 240,800 13,750
Comcast Corp., Cl A * (b) 374,500 9,782
Estee Lauder Cos., Inc.
(The), Cl A (b) 300,000 11,157
Wal-Mart Stores, Inc. 292,800 13,831
----------
48,520
----------
ENERGY (4.5%)
Anadarko Petroleum Corp.
(b) 169,000 17,071
Exxon Mobil Corp. 795,300 48,402
----------
65,473
----------
FINANCIALS (15.3%)
American Express Co. 480,000 25,224
American International
Group, Inc. 211,000 13,945
Chubb Corp. (The) 455,000 43,426
Goldman Sachs Group, Inc.
(The) (b) 145,000 22,759
JPMorgan Chase & Co. 697,800 29,056
Merrill Lynch & Co., Inc.
(b) 204,000 16,067
MGIC Investment Corp. (b) 500,000 33,315
Morgan Stanley 175,200 11,006
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
SLM Corp. 301,900 15,681
Wells Fargo & Co. 190,000 12,135
----------
222,614
----------
HEALTH CARE (14.4%)
AmerisourceBergen Corp.
(b) 342,200 16,518
Amgen, Inc. * (b) 234,200 17,038
Baxter International, Inc. 974,000 37,800
Becton, Dickinson & Co. 548,800 33,795
Forest Laboratories, Inc.
* 530,400 23,672
Health Management
Associates, Inc., Cl A
(b) 748,000 16,134
Pfizer, Inc. 676,600 16,861
Quest Diagnostics, Inc. 290,000 14,877
Schering-Plough Corp. 598,300 11,362
Tenet Healthcare Corp. *
(b) 948,500 7,000
Universal Health Services,
Inc., Cl B (b) 276,600 14,049
----------
209,106
----------
INDUSTRIALS (17.4%)
Danaher Corp. 376,900 23,952
Emerson Electric Co. 278,800 23,316
General Electric Co. 535,000 18,607
Honeywell International,
Inc. 900,000 38,493
Illinois Tool Works, Inc. 210,700 20,293
Lockheed Martin Corp. 222,300 16,701
Raytheon Co. (b) 852,200 39,065
Southwest Airlines Co. 825,000 14,842
Union Pacific Corp. 292,600 27,314
United Parcel Service,
Inc., Cl B (b) 190,000 15,082
Waste Management, Inc. 447,900 15,811
----------
253,476
----------
INFORMATION TECHNOLOGY (22.4%)
Analog Devices, Inc. (b) 375,300 14,370
Automatic Data Processing,
Inc. 542,000 24,759
CheckFree Corp. * (b) 728,800 36,803
Cisco Systems, Inc. * 600,000 13,002
Comverse Technology, Inc.
* 720,000 16,942
Electronic Data Systems
Corp. (b) 378,900 10,166
</Table>
See Notes to Financial Statements.
41
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CAPITAL APPRECIATION FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
International Business
Machines Corp. 370,700 30,572
Intersil Corp., Cl A (b) 456,700 13,208
LSI Logic Corp. * (b) 1,251,000 14,462
Maxim Integrated Products,
Inc. 670,000 24,891
Microsoft Corp. (b) 1,550,000 42,175
Oracle Corp. * 1,174,300 16,076
Paychex, Inc. (b) 897,800 37,401
Symantec Corp. * 1,036,100 17,438
VeriSign, Inc. * (b) 552,800 13,262
----------
325,527
----------
MATERIALS (1.2%)
Rohm & Haas Co. 350,000 17,105
----------
TELECOMMUNICATION SERVICES (2.1%)
AT&T, Inc. (b) 650,000 17,576
Sprint Nextel Corp. 507,200 13,106
----------
30,682
----------
Total Common Stocks
(Cost $1,249,855) 1,415,928
----------
SHORT-TERM INVESTMENTS (23.6%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 342,342,038 342,342
----------
Total Short-Term Investments
(Cost $342,342) 342,342
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENT (2.7%)
Bear Stearns & Co., Inc.,
4.745% dated 03/31/06,
to be repurchased on
04/03/06, repurchase
price $38,668,827
(collateralized by U.S.
Government Agencies,
5.000%, due 06/15/31;
total market value
$39,428,807) 38,654 38,654
----------
Total Repurchase Agreement
(Cost $38,654) 38,654
----------
Total Investments
(Cost $1,630,851) (a) -- 123.7% 1,796,924
Liabilities in excess of
other assets -- (23.7)% (344,072)
----------
Net Assets -- 100.0% $1,452,852
==========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $1,631,206
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................ $199,024
Unrealized Depreciation................ (33,307)
--------
Unrealized Appreciation
(Depreciation)....................... $165,717
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $332,407.
(c)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
See Notes to Financial Statements.
42
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
EMERGING GROWTH STOCK FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
COMMON STOCKS (99.5%)
CONSUMER DISCRETIONARY (17.8%)
Blue Nile, Inc. * 37,000 1,301
Getty Images, Inc. * 14,100 1,056
Life Time Fitness, Inc. * 21,400 1,003
Martha Stewart Living Omnimedia,
Inc., Cl A * 25,000 422
Monster Worldwide, Inc. * 7,300 364
Nutri/System, Inc. * 23,600 1,121
Polo Ralph Lauren Corp. 20,700 1,255
Stamps.com, Inc. * 7,800 275
Urban Outfitters, Inc. * 40,500 994
Volcom, Inc. * 24,900 885
-------
8,676
-------
CONSUMER STAPLES (3.2%)
Whole Foods Market, Inc. 23,500 1,561
-------
FINANCIALS (15.0%)
BlackRock, Inc., Cl A 8,400 1,176
Calamos Asset Management, Inc.,
Cl A 31,200 1,167
Euronet Worldwide, Inc. * 37,900 1,434
Greenhill & Co., Inc. 10,800 714
Legg Mason, Inc. 9,500 1,191
Portfolio Recovery Associates,
Inc. * 34,500 1,615
-------
7,297
-------
HEALTH CARE (21.2%)
Amylin Pharmaceuticals, Inc. * 10,600 519
Celgene Corp. * 28,000 1,238
Covance, Inc. * 17,400 1,022
Foxhollow Technologies, Inc. * 26,000 794
Gen-Probe, Inc. * 17,300 954
IDEXX Laboratories, Inc. * 6,700 579
Kyphon, Inc. * 19,500 725
Neurocrine Biosciences, Inc. * 10,350 668
Psychiatric Solutions, Inc. * 49,300 1,634
Varian Medical Systems, Inc. * 20,300 1,140
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
HEALTH CARE--CONTINUED
Ventana Medical Systems, Inc. * 19,700 823
Vertex Pharmaceuticals, Inc. * 6,400 234
-------
10,330
-------
INDUSTRIALS (8.1%)
AirTran Holdings, Inc. * 102,900 1,863
Corporate Executive Board Co.
(The) 10,000 1,009
Mobile Mini, Inc. * 16,000 495
US Airways Group, Inc. * 15,000 600
-------
3,967
-------
INFORMATION TECHNOLOGY (25.3%)
aQuantive, Inc. * 84,600 1,990
Broadcom Corp., Cl A * 23,650 1,021
Cognizant Technology Solutions
Corp., Cl A * 27,800 1,654
Digital Insight Corp. * 15,600 568
F5 Networks, Inc. * 23,800 1,725
Marchex, Inc., Cl B * 10,200 219
Paychex, Inc. 24,400 1,017
SiRF Technology Holdings, Inc. * 32,800 1,161
SRA International, Inc., Cl A * 36,200 1,366
Stellent, Inc. 20,200 240
ViaSat, Inc. * 21,600 619
WebSideStory, Inc. * 40,400 694
-------
12,274
-------
TELECOMMUNICATION SERVICES (8.9%)
Crown Castle International Corp.
* 18,900 536
NII Holdings, Inc. * 38,200 2,252
SBA Communications Corp., Cl A * 10,200 239
Time Warner Telecom, Inc., Cl A * 72,400 1,300
-------
4,327
-------
Total Common Stocks (Cost $37,595) 48,432
-------
</Table>
See Notes to Financial Statements.
43
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
EMERGING GROWTH STOCK FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
REPURCHASE AGREEMENT (1.5%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $743,053
(collateralized by U.S.
Government Agencies, 5.500%,
due 02/01/35; total market
value $759,090) 743 743
-------
Total Repurchase Agreement (Cost
$743) 743
-------
Total Investments (Cost $38,338)
(a) -- 101.0% 49,175
Liabilities in excess of other
assets -- (1.0)% (472)
-------
Net Assets -- 100.0% $48,703
=======
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $38,416 (amount
in thousands). Unrealized appreciation/(depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $11,490
Unrealized Depreciation................. (731)
-------
Unrealized Appreciation
(Depreciation)........................ $10,759
=======
</Table>
Cl -- Class
See Notes to Financial Statements.
44
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FOREIGN COMMON STOCKS (96.7%)
AUSTRALIA (4.2%)
Australia & New Zealand
Banking Group Ltd. 315,590 5,986
BHP Billiton Ltd. 25,863 518
Caltex Australia Ltd. 36,395 500
CSR Ltd. 163,830 523
David Jones Ltd. (b) 218,891 439
Downer EDI Ltd. 526,024 3,339
James Hardie Industries NV 70,496 478
OneSteel Ltd. 162,161 478
Pacifica Group Ltd. 11,037 16
Promina Group Ltd. 1,279,074 5,007
Qantas Airways Ltd. 1,622,863 4,112
QBE Insurance Group Ltd. 30,781 482
Rio Tinto Group Ltd. (b) 127,427 7,191
St. George Bank Ltd. 216,364 4,776
UXC Ltd. 31,881 26
Westpac Banking Corp. 325,238 5,545
Woodside Petroleum Ltd. 15,434 502
----------
39,918
----------
BELGIUM (0.5%)
Fortis 36,140 1,291
Fortis SA 97,746 3,487
----------
4,778
----------
DENMARK (0.5%)
Danske Bank A/S (b) 138,317 5,133
----------
FINLAND (2.0%)
Fortum Corp. (b) 211,388 5,333
Nokia Corp., Cl A (b) 560,165 11,593
Tietoenator Oyj (b) 56,533 2,208
----------
19,134
----------
FRANCE (10.5%)
Air France-KLM 93,000 2,190
Atos Origin SA * 44,653 3,309
AXA (b) 268,600 9,425
BNP Paribas (b) 119,501 11,099
BNP Paribas * 11,786 1,058
Bouygues SA 27,624 1,468
Compagnie de Saint-Gobain
(b) 58,943 4,117
France Telecom SA 240,638 5,412
Lafarge SA 56,984 6,456
PSA Peugeot Citroen SA (b) 36,443 2,296
Sanofi-Aventis 65,495 6,230
Schneider Electric SA (b) 47,694 5,149
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FRANCE--CONTINUED
Societe Generale (b) 59,815 8,994
SUEZ SA (b) 188,537 7,429
TOTAL SA 36,648 9,667
VINCI SA 67,173 6,621
Vivendi Universal SA (b) 236,326 8,115
----------
99,035
----------
GERMANY (8.4%)
Adidas-Salomon AG 25,398 5,026
Allianz AG 52,935 8,849
BASF AG 91,849 7,198
Bayer AG 40,174 1,611
Continental AG 56,653 6,250
DaimlerChrysler AG 41,597 2,390
Deutsche Bank AG 53,691 6,125
Deutsche Telekom AG 327,333 5,521
E.ON AG 79,806 8,785
Fresenius AG-Preferred 17,762 3,191
MAN AG 76,267 5,304
PUMA Rudolf Dassler Sport
AG * 9,840 3,719
SAP AG 18,615 4,044
Schering AG 73,944 7,686
ThyssenKrupp AG 145,199 4,189
----------
79,888
----------
HONG KONG (1.5%)
China Mobile Ltd. 657,500 3,452
China Resources Power
Holdings Co. Ltd. 1,928,000 1,404
CNOOC Ltd. 3,744,538 2,896
Guoco Group Ltd. 237,000 3,035
Wing Hang Bank Ltd. 369,500 3,103
----------
13,890
----------
IRELAND (0.8%)
Anglo Irish Bank Corp. PLC 94,132 1,551
CRH PLC 169,285 5,908
----------
7,459
----------
ITALY (2.0%)
Banca Intesa SpA 1,040,601 6,216
Benetton Group SpA 183,104 2,733
Eni SpA (b) 275,642 7,843
UniCredito Italiano SpA 356,418 2,576
----------
19,368
----------
</Table>
See Notes to Financial Statements.
45
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN (24.2%)
Aisin Seiki Co. Ltd. 101,700 3,958
Amano Corp. 99,600 1,735
Astellas Pharma, Inc. 56,500 2,146
Brothers Industries Ltd. 261,000 2,859
Canon, Inc. 92,700 6,136
Central Japan Railway Co. 389 3,834
Daicel Chemical Industries
Ltd. 426,300 3,590
Daiichi Sankyo Co. Ltd. 106,000 2,419
Daiwa Securities Group,
Inc. 482,000 6,467
DENSO Corp. 104,100 4,113
East Japan Railway Co. 249 1,845
Electric Power Development
Co. Ltd. 136,140 4,315
EXEDY Corp. 57,800 1,871
Fujikura Ltd. 154,000 1,744
Fujitsu Ltd. 195,000 1,645
Honda Motor Co. Ltd. 84,800 5,253
Ibiden Co. Ltd. 41,100 2,078
ITOCHU Corp. 407,000 3,497
KDDI Corp. 248 1,326
Keisei Electric Railway
Co. Ltd. 225,000 1,553
Kitz Corp. 390,000 3,738
Komatsu Ltd. 289,000 5,513
Kubota Corp. 253,000 2,730
Lawson, Inc. 23,300 877
Makita Corp. 101,600 3,134
Matsushita Electric
Industrial Co. Ltd. 140,000 3,111
Mitsubishi Corp. 327,800 7,465
Mitsubishi Tokyo Financial
Group, Inc. 778 11,900
Mitsubishi UFJ Securities
Co. Ltd. 125,000 2,008
Mitsui Fudosan Co. Ltd.
(b) 186,000 4,275
Mitsui O.S.K. Lines Ltd. 421,000 2,848
Mitsui Trust Holdings,
Inc. 154,000 2,252
Mizuho Financial Group,
Inc. 1,133 9,272
NGK Spark Plug Co. Ltd. 199,000 4,642
Nidec Corp. 15,600 1,281
Nihon Parkerizing Co. Ltd. 57,000 878
Nikko Cordial Corp. 245,800 4,073
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
Nippon Telegraph &
Telephone Corp. 762 3,270
NSK Ltd. 431,000 3,743
Okinawa Electric Power
Co., Inc. (The) 72,900 4,380
ORIX Corp. 21,850 6,805
Ricoh Co. Ltd. 116,000 2,267
Ryohin Keikaku Co. Ltd. 47,200 3,959
Sankyo Co. Ltd. 39,800 2,739
Sega Sammy Holdings, Inc. 92,300 3,749
Shin-Etsu Chemical Co.
Ltd. 50,900 2,764
Sompo Japan Insurance,
Inc. 115,000 1,668
Sumitomo Chemical Co. Ltd. 228,000 1,856
Sumitomo Corp. 550,000 7,833
Sumitomo Electric
Industries Ltd. 109,700 1,739
Sumitomo Metal Industries
Ltd. 1,090,000 4,678
Sumitomo Mitsui Financial
Group, Inc. 429 4,739
Takeda Pharmaceutical Co.
Ltd. 117,500 6,700
Tokyo Ohka Kogyo Co. Ltd. 121,400 3,776
Tokyo Steel Manufacturing
Co. Ltd. 121,800 2,474
Toyota Motor Corp. 245,600 13,419
Trans Cosmos, Inc. (b) 70,200 2,273
Tsubakimoto Chain Co. 321,000 2,406
UNY Co. Ltd. 163,000 2,608
Yamaha Motor Co. Ltd. 144,400 3,571
Yamatake Corp. 106,800 2,518
----------
228,315
----------
NETHERLANDS (3.9%)
ABN AMRO Holding NV 316,831 9,497
Akzo Nobel NV 91,512 4,856
ASML Holding NV * 79,432 1,622
ING Groep NV 255,550 10,094
Royal KPN NV (b) 306,509 3,454
Royal Philips Electronics
NV (b) 231,449 7,822
----------
37,345
----------
</Table>
See Notes to Financial Statements.
46
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
NEW ZEALAND (0.6%)
Fletcher Building Ltd. (b) 811,781 4,447
Warehouse Group Ltd. (The) 690,075 1,643
----------
6,090
----------
NORWAY (2.1%)
DNB NOR ASA (b) 242,711 3,270
Norsk Hydro ASA 40,511 5,615
Orkla ASA 142,191 7,055
Telenor ASA 324,482 3,492
----------
19,432
----------
PORTUGAL (0.2%)
Energias de Portugal SA 568,919 2,234
----------
SINGAPORE (0.8%)
Jurong Technologies
Industrial Corp. Ltd. 1,649,000 1,633
SembCorp Industries Ltd. 1,188,000 2,574
United Overseas Bank Ltd. 388,354 3,750
----------
7,957
----------
SOUTH KOREA (0.1%)
Samsung Securities Co.
Ltd. * 15,550 832
----------
SPAIN (2.4%)
Banco Santander Central
Hispano SA 594,604 8,681
Endesa SA 67,106 2,166
Repsol YPF SA 200,344 5,690
Telefonica SA 292,365 4,588
Union Fenosa SA (b) 48,710 1,852
----------
22,977
----------
SWEDEN (2.7%)
Alfa Laval AB 81,600 2,196
Autoliv, Inc. 35,891 2,038
Nordea Bank AB 198,075 2,449
Sandvik AB 69,902 4,135
Svenska Handelsbanken AB,
Cl A 112,501 3,129
Swedish Match AB 237,300 3,246
Telefonaktiebolaget LM
Ericsson 2,155,989 8,197
----------
25,390
----------
SWITZERLAND (6.2%)
Credit Suisse Group 191,781 10,764
Nestle SA 38,841 11,533
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
SWITZERLAND--CONTINUED
Novartis AG 247,043 13,742
Roche Holding Ltd. 49,893 7,431
UBS AG 65,007 7,143
Zurich Financial Services
* 33,236 7,810
----------
58,423
----------
THAILAND (0.1%)
Delta Electronics PCL 2,466,100 1,250
----------
UNITED KINGDOM (23.0%)
Alliance UniChem PLC 259,216 4,035
Anglo American PLC 229,699 8,851
Anglo Irish Bank Corp. PLC 160,054 2,638
AstraZeneca PLC 232,996 11,738
Aviva PLC 549,584 7,633
AWG PLC 231,247 4,596
Barratt Developments PLC 143,421 2,639
BHP Billiton PLC 452,125 8,259
Bodycote International PLC 790,000 3,788
BP PLC 1,717,138 19,717
Bradford & Bingley PLC 457,847 3,971
British Airways PLC * 828,833 5,086
British American Tobacco
PLC 320,426 7,760
BT Group PLC 1,403,711 5,414
CRH PLC 8,347 292
Enterprise Inns PLC 367,105 6,071
First Choice Holidays PLC 1,273,412 4,762
GlaxoSmithKline PLC 428,317 11,198
HBOS PLC 598,043 9,984
HSBC Holdings PLC 1,053,404 17,658
National Grid PLC 486,274 4,836
Old Mutual PLC 981,776 3,432
Royal & Sun Alliance
Insurance Group PLC 1,689,679 4,043
Royal Bank of Scotland
Group PLC (The) 436,225 14,194
Royal Dutch Shell PLC, Cl
A 485,481 15,163
Royal Dutch Shell PLC, Cl
B 198,156 6,444
Scottish & Newcastle PLC 286,111 2,585
Taylor Woodrow PLC 362,715 2,546
Tomkins PLC 596,300 3,483
</Table>
See Notes to Financial Statements.
47
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
Vodafone Group PLC 5,841,910 12,229
WH Smith PLC 236,093 1,693
----------
216,738
----------
Total Foreign Common Stocks
(Cost $713,341) 915,586
----------
RIGHTS (0.0%)
FRANCE (0.0%)
Vinci SA, expiring
04/13/06 67,173 144
----------
Total Rights (Cost $615) 144
----------
SHORT-TERM INVESTMENTS (12.5%)
Brown Brothers Harriman &
Co., Cayman Islands Cash
Sweep, 3.970% 16,511,703 16,512
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 101,978,870 101,979
----------
Total Short-Term Investments
(Cost $118,491) 118,491
----------
Total Investments (Cost
$832,447) (a) -- 109.2% 1,034,221
Liabilities in excess of
other assets -- (9.2)% (86,987)
----------
Net Assets -- 100.0% $ 947,234
==========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $838,692
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $198,968
Unrealized Depreciation................. (3,438)
--------
Unrealized Appreciation
(Depreciation)........................ $195,530
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $97,223.
(c)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
PLC -- Public Limited Company
PCL -- Public Company Limited
The investment concentrations for the International Equity Fund as a percentage
of net assets, by industry, as of March 31, 2006, were as follows (unaudited):
<Table>
Consumer Discretionary 11.6%
Consumer Staples 3.8
Energy 8.2
Financials 29.4
Health Care 8.1
Industrials 11.7
Information Technology 5.3
Materials 8.4
Short-Term Investments 12.5
Telecommunication Services 5.2
Utilities 5.0
</Table>
See Notes to Financial Statements.
48
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FOREIGN COMMON STOCKS (94.7%)
AUSTRALIA (3.1%)
Alumina Ltd. 63,113 335
Amcor Ltd. 48,118 255
AMP Ltd. 87,482 543
Australia & New Zealand
Banking Group Ltd. 80,024 1,518
Australian Gas Light Co. (b) 33,400 443
BHP Billiton Ltd. 154,230 3,090
BlueScope Steel Ltd. 45,870 236
Boral Ltd. 39,864 254
Brambles Industries Ltd. 53,347 410
Coca-Cola Amatil Ltd. 44,915 232
Coles Myer Ltd. 64,040 490
Commonwealth Bank of
Australia 55,727 1,807
CSL Ltd. 10,412 408
CSR Ltd. 88,300 282
Foster's Group Ltd. 109,599 417
Insurance Australia Group
Ltd. (b) 87,026 341
John Fairfax Holdings Ltd. 82,219 236
Lend Lease Corp. Ltd. 27,713 275
Macquarie Bank Ltd. 13,308 616
Macquarie Infrastructure
Group 145,093 396
Mayne Group Ltd. 66,774 164
Mayne Pharma Ltd. * 54,565 116
Mirvac Group Ltd. 90,741 276
National Australia Bank Ltd. 69,915 1,886
Newcrest Mining Ltd. 15,848 265
Orica Ltd. 18,249 303
Origin Energy Ltd. 63,473 333
QBE Insurance Group Ltd. 37,035 580
Rinker Group Ltd. 46,966 667
Rio Tinto Group Ltd. 12,892 728
Santos Ltd. 46,285 377
Stockland Trust Group 99,741 480
Suncorp-Metway Ltd. 39,016 543
TABCORP Holdings Ltd. 30,565 338
Telstra Corp. Ltd. (b) 113,153 303
Wesfarmers Ltd. 20,271 506
Westfield Group 71,524 875
Westpac Banking Corp. 78,972 1,346
Woodside Petroleum Ltd. 26,781 872
Woolworths Ltd. 55,678 750
--------
24,292
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
AUSTRIA (1.7%)
BOHLER-UDDEHOLM AG 3,498 721
Erste Bank der
oesterreichischen
Sparkassen AG 36,107 2,128
Flughafen Wien AG 3,519 276
Immofinanz Immobilien Anlagen
AG * 59,027 612
Mayr Melnhof Karton AG 457 82
Meinl European Land Ltd. * 41,086 772
OMV AG 41,904 2,802
Raiffeisen International
Bank-Holding AG * 7,383 630
RHI AG * 6,822 222
Telekom Austria AG 87,975 2,072
Verbund AG (b) 2,106 937
voestalpine AG 5,667 793
Wiener Staedtische Allgemeine
Versicherung AG 6,465 400
Wienerberger AG 14,658 737
--------
13,184
--------
BELGIUM (1.6%)
Agfa-Gevaert NV 11,493 219
Barco NV 1,968 168
Belgacom SA 15,147 484
Delhaize Group 6,891 494
Dexia Group 48,955 1,266
Fortis 108,649 3,882
Groep Colruyt 1,892 283
Groupe Bruxelles Lambert SA 7,105 790
InBev 16,786 787
KBC Bank & Insurance Holding
Co. NV 16,510 1,773
Mobistar SA 3,144 228
NV Bekaert SA 1,916 197
NV Umicore SA 2,992 414
Omega Pharma NV 2,451 150
SA D'Ieteren NV 627 188
Solvay SA 6,085 703
UCB SA 8,683 427
--------
12,453
--------
DENMARK (1.0%)
A.P. Moller-Maersk A/S 133 1,143
Carlsberg A/S, Cl B 4,050 264
Coloplast A/S, Cl B 3,444 259
Danisco A/S 5,509 446
Danske Bank A/S (b) 45,668 1,694
</Table>
See Notes to Financial Statements.
49
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
DENMARK--CONTINUED
DSV A/S 3,150 420
East Asiatic Co. A/S (b) 3,225 133
FLS Industries A/S (b) 5,500 221
GN Store Nord A/S 27,300 377
H. Lundbeck A/S (b) 7,700 169
Novo Nordisk A/S, Cl B 25,987 1,617
Novozymes A/S, Cl B 6,020 408
Topdanmark A/S * 2,500 313
Vestas Wind Systems A/S * 20,238 505
William Demant Holding * 3,857 256
--------
8,225
--------
FINLAND (0.9%)
Cargotec Corp., Cl B 5,572 228
Fortum Corp. 23,613 596
Kone Oyj, Cl B 6,824 281
Neste Oil Oyj (b) 8,253 284
Nokia Corp., Cl A (b) 187,100 3,872
Orion Corp., Cl B 9,100 219
Sampo PLC, Cl A (b) 22,152 466
Stora Enso Oyj (b) 30,006 462
Tietoenator Oyj 6,449 252
UPM-Kymmene Corp. (b) 24,900 588
--------
7,248
--------
FRANCE (10.1%)
Accor 15,469 892
Air France-KLM 9,858 232
Alcatel * 93,407 1,445
Alstom * 8,429 707
Atos Origin SA * 5,597 415
Autoroutes du Sud de la
France 6,509 402
AXA 109,012 3,825
BNP Paribas 56,681 5,264
BNP Paribas * 5,668 509
Bouygues SA 15,726 836
Cap Gemini SA * 10,296 561
Carrefour SA 41,739 2,220
Casino Guichard-Perrachon SA 3,672 257
CNP Assurances SA 2,791 281
Compagnie de Saint-Gobain 22,702 1,586
Compagnie Generale des
Etablissements Michelin 11,341 713
Credit Agricole SA 43,266 1,683
Dassault Systemes SA 4,961 284
Essilor International SA 8,425 751
Euronext Paris SA 9,442 779
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FRANCE--CONTINUED
European Aeronautic Defence &
Space Co. Eads NV 18,856 794
France Telecom SA 127,127 2,859
Gaz de France (b) 15,234 551
Gecina SA 2,652 352
Groupe Danone 17,446 2,137
Hermes International 2,010 508
Imerys 2,567 216
Klepierre 3,764 469
L'Air Liquide Prime Fidelite 972 203
L'Air Liquide SA (b) 1,676 349
L'Air Liquide SA, Registered
Shares (c) 5,403 1,125
L'Oreal SA (b) 21,924 1,931
Lafarge SA 12,674 1,436
Lagardere SCA 9,056 707
LVMH Moet Hennessy Louis
Vuitton SA 17,966 1,761
Pernod Ricard 5,718 1,095
Pinault-Printemps-Redoute SA 4,848 585
PSA Peugeot Citroen SA 12,175 767
Publicis Groupe SA 11,170 436
Renault SA 14,073 1,496
Sagem SA 14,584 370
Sanofi-Aventis 77,302 7,353
Schneider Electric SA 16,793 1,813
Societe BIC 4,498 302
Societe Generale 25,614 3,852
Societe Television Francaise
1 9,517 288
Sodexho Alliance SA (b) 8,825 419
SUEZ SA 74,838 2,949
Technip SA 10,636 720
Thales 7,264 323
Thomson 21,006 415
TOTAL SA 40,457 10,671
Unibail Holding 4,490 811
Valeo SA 6,474 271
Veolia Environnement SA 26,887 1,493
VINCI SA 13,154 1,297
Vivendi Universal SA 86,440 2,968
--------
79,734
--------
GERMANY (13.5%)
Adidas-Salomon AG 7,295 1,444
Allianz AG 54,254 9,068
ALTANA AG 10,379 644
</Table>
See Notes to Financial Statements.
50
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
GERMANY--CONTINUED
BASF AG 74,502 5,839
Bayer AG 91,678 3,677
Beiersdorf AG 3,127 452
Celesio AG 5,699 538
Commerzbank AG 83,663 3,329
Continental AG 18,701 2,063
DaimlerChrysler AG 128,114 7,360
Deutsche Bank AG 69,687 7,950
Deutsche Boerse AG 15,491 2,234
Deutsche Lufthansa AG 33,938 607
Deutsche Post AG 99,719 2,492
Deutsche Postbank AG 8,404 610
Deutsche Telekom AG 385,515 6,502
Douglas Holding AG (b) 6,789 320
E.ON AG 86,881 9,564
EPCOS AG * 10,199 135
Hochtief AG (b) 9,489 538
Hypo Real Estate Holding AG 20,765 1,427
Infineon Technologies AG * 91,532 942
Karstadt Quelle AG * 12,195 284
Linde AG 11,717 1,017
MAN AG 20,398 1,419
Merck KGaA 7,575 720
METRO AG 19,882 1,021
MLP AG 10,855 265
Muenchener Rueckversicherungs
AG 27,718 3,933
PUMA Rudolf Dassler Sport AG
* 2,454 927
RWE AG (b) 58,428 5,090
SAP AG 31,122 6,761
Schering AG 23,408 2,433
Siemens AG 112,406 10,477
Suedzucker AG 10,745 278
ThyssenKrupp AG 52,034 1,501
TUI AG (b) 32,991 647
Volkswagen AG 25,143 1,886
--------
106,394
--------
GREECE (1.2%)
Alpha Bank SA 33,726 1,246
Coca-Cola HBC 13,800 429
Cosmote Mobile
Telecommunications SA 18,300 424
EFG Eurobank Ergasias SA 23,330 898
Emporiki Bank of Greece SA * 11,664 390
Hellenic Duty Free Shops SA 4,650 90
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
GREECE--CONTINUED
Hellenic Petroleum SA 19,180 274
Hellenic Technodomiki Tev SA 26,180 226
Hellenic Telecommunications
Organization SA * 38,430 857
Intracom SA 21,330 154
National Bank of Greece SA 31,789 1,494
OPAP SA 28,800 1,101
Piraeus Bank SA 24,000 727
Public Power Corp. SA 15,540 365
Technical Olympic SA 19,060 115
Titan Cement Co. SA 6,180 295
Viohalco SA 18,180 183
--------
9,268
--------
HONG KONG (0.8%)
Bank of East Asia Ltd. 112,168 406
BOC Hong Kong (Holdings) Ltd. 159,500 321
Cheung Kong (Holdings) Ltd. 61,000 646
CLP Holdings Ltd. 64,100 374
Esprit Holdings Ltd. 44,500 346
Hang Seng Bank Ltd. 27,400 353
Henderson Land Development
Co. Ltd. 47,000 260
Hong Kong & China Gas Co.
Ltd. (The) 166,237 402
Hongkong Electric Holdings
Ltd. 64,000 301
Hutchison Telecommunications
International Ltd. * 95,827 164
Hutchison Whampoa Ltd. 77,080 706
Johnson Electric Holdings
Ltd. 143,000 134
Li & Fung Ltd. 134,000 302
PCCW Ltd. 285,326 186
Sun Hung Kai Properties Ltd. 55,600 565
Swire Pacific Ltd. 51,500 504
Wharf (Holdings) Ltd. (The) 84,000 309
--------
6,279
--------
IRELAND (1.0%)
Allied Irish Banks PLC 78,799 1,880
Bank of Ireland 32,464 863
Bank of Ireland 59,268 1,102
CRH PLC 46,781 1,633
DEPFA Bank PLC 51,754 922
Elan Corp. PLC * 19,127 276
</Table>
See Notes to Financial Statements.
51
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
IRELAND--CONTINUED
Independent News & Media PLC
(d) 154 0
Independent News & Media PLC 28,100 91
Irish Life & Permanent PLC 28,797 691
Kerry Group PLC 12,392 298
Kerry Group PLC, Cl A 6,213 217
--------
7,973
--------
ITALY (8.1%)
Alleanza Assicurazioni SpA 53,163 632
Arnoldo Mondadori Editore SpA 19,049 187
Assicurazioni Generali SpA 138,504 5,216
Autogrill SpA 18,639 276
Autostrade SpA (b) 46,095 1,140
Banca Antoniana Popolare
Veneta SpA 16,819 540
Banca Fideuram SpA 52,832 304
Banca Intesa SpA 576,498 3,444
Banca Intesa SpA 135,234 765
Banca Monte dei Paschi di
Siena SpA (b) 178,516 1,005
Banca Nazionale del Lavoro
SpA * 173,563 614
Banca Popolare di Milano
Scarl SpA 66,792 788
Banche Popolari Unite SpA 56,574 1,372
Banco Popolare di Verona e
Novara Scrl SpA 58,213 1,541
Benetton Group SpA 14,363 214
Bulgari SpA 23,456 282
Capitalia SpA 302,915 2,518
Enel SpA 631,792 5,343
Eni SpA 382,686 10,888
Fiat SpA * (b) 84,596 1,066
Finmeccanica SpA 42,026 954
Gruppo Editoriale L'Espresso
SpA (b) 32,847 172
Italcementi SpA 12,881 309
Luxottica Group SpA 22,276 613
Mediaset SpA 119,288 1,405
MEDIOBANCA -- Banca di
Credito Finanziario SpA 74,692 1,602
Mediolanum SpA (b) 43,254 343
Pirelli & C. SpA 450,080 429
Sanpaolo IMI SpA 160,927 2,880
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
ITALY--CONTINUED
Seat Pagine Gialle SpA * 742,231 355
Snam Rete Gas SpA 152,456 674
Telecom Italia Media SpA * 357,939 193
Telecom Italia RNC SpA 838,232 2,232
Telecom Italia SpA (b) 1,564,259 4,563
Terna SpA 180,862 476
Tiscali SpA * 46,272 151
UniCredito Italiano SpA 1,171,164 8,465
--------
63,951
--------
JAPAN (27.4%)
77 Bank Ltd. 33,000 254
Acom Co. Ltd. 6,470 380
Advantest Corp. 6,100 727
AEON Co. Ltd. 50,100 1,215
AEON Credit Service Co. Ltd. 9,000 272
Aiful Corp. 5,800 384
Aisin Seiki Co. Ltd. 15,500 603
Ajinomoto Co., Inc. 44,000 470
All Nippon Airways Co. Ltd.
(b) 55,000 201
Alps Electric Co. Ltd. 17,800 287
Amada Co. Ltd. 34,000 371
Aoyama Trading Co. Ltd. 6,100 202
Ariake Japan Co. Ltd. 4,840 144
Asahi Breweries Ltd. 30,400 431
Asahi Glass Co. Ltd. (b) 74,000 1,106
Asahi Kasei Corp. 96,000 684
Astellas Pharma, Inc. 41,461 1,575
Bank of Fukuoka Ltd. (The)
(b) 49,000 413
Bank of Yokohama Ltd. (The) 96,000 786
Benesse Corp. 6,100 218
Bridgestone Corp. 52,000 1,085
Canon, Inc. 56,200 3,720
Casio Computer Co. Ltd. 20,300 361
Central Glass Co. Ltd. 17,000 99
Central Japan Railway Co. 123 1,212
Chiba Bank Ltd. (The) 61,000 543
Chubu Electric Power Co.,
Inc. (b) 43,900 1,100
Chugai Pharmaceutical Co.
Ltd. 22,900 415
Citizen Watch Co. Ltd. 36,100 341
COMSYS Holdings Corp. 13,000 186
Credit Saison Co. Ltd. 14,200 786
CSK Corp. 5,900 293
</Table>
See Notes to Financial Statements.
52
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
Dai Nippon Printing Co. Ltd. 47,000 851
Daiichi Sankyo Co. Ltd. 50,325 1,148
Daikin Industries Ltd. 17,700 620
Daimaru, Inc. (The) 20,000 295
Dainippon Ink & Chemicals,
Inc. 67,000 249
Daito Trust Construction Co.
Ltd. 6,900 360
Daiwa House Industry Co. Ltd. 39,000 676
Daiwa Securities Group, Inc. 101,000 1,355
Denki Kagaku Kogyo KK 49,000 219
DENSO Corp. 39,300 1,553
Dentsu, Inc. 146 530
DOWA Mining Co. Ltd. 25,000 298
East Japan Railway Co. 262 1,941
Ebara Corp. 33,000 208
Eisai Co. Ltd. 19,600 854
Electric Power Development
Co. Ltd. 12,720 403
FamilyMart Co. Ltd. 6,500 204
FANUC Ltd. 13,800 1,329
Fast Retailing Co. Ltd. 4,300 421
Fuji Electric Co. Ltd. 55,000 300
Fuji Photo Film Co. Ltd. 37,100 1,239
Fuji Television Network, Inc. 58 145
Fujikura Ltd. 34,000 385
Fujitsu Ltd. 137,000 1,156
Furukawa Electric Co. Ltd.
(The) 52,000 431
Gunma Bank Ltd. (The) 42,000 318
Hino Motors Ltd. 26,000 163
Hirose Electric Co. Ltd. 2,900 408
Hitachi Cable Ltd. 29,000 165
Hitachi Chemical Co. Ltd. 9,500 273
Hitachi Ltd. 236,000 1,671
Hokkaido Electric Power Co.,
Inc. 11,600 249
Hokuhoku Financial Group,
Inc. 96,000 422
Honda Motor Co. Ltd. 60,100 3,723
Hoya Corp. 33,800 1,364
Ibiden Co. Ltd. 11,000 556
Isetan Co. Ltd. 16,200 353
Ishikawajima-Harima Heavy
Industries Co. Ltd. (b) 104,000 330
ITOCHU Corp. 122,000 1,048
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
ITOCHU Techno-Science Corp. 3,100 122
JAFCO Co. Ltd. 3,200 241
Japan Airlines Corp. (b) 67,000 175
Japan Real Estate Investment
Corp. 39 338
Japan Retail Fund Investment
Corp. 36 281
Japan Tobacco, Inc. 350 1,231
JFE Holdings, Inc. 43,575 1,759
JGC Corp. 20,000 393
Joyo Bank Ltd. (The) 65,300 461
JSR Corp. (b) 15,000 446
Kajima Corp. 76,000 475
Kamigumi Co. Ltd. 28,000 223
Kaneka Corp. 25,000 300
Kansai Electric Power Co.,
Inc. (The) 52,300 1,162
Kansai Paint Co. Ltd. 27,000 248
Kao Corp. 37,000 975
Katokichi Co. Ltd. 21,100 144
Kawasaki Heavy Industries
Ltd. (b) 111,000 390
Kawasaki Kisen Kaisha Ltd.
(b) 48,000 283
KDDI Corp. 194 1,037
Keihin Electric Express
Railway Co. Ltd. (b) 53,000 435
Keio Electric Railway Co.
Ltd. 58,000 383
Keyence Corp. 2,860 744
Kikkoman Corp. 14,000 158
Kinden Corp. 19,000 172
Kinki Nippon Railway Co. Ltd. 140,250 547
Kirin Brewery Co. Ltd. 59,000 803
Kobe Steel Ltd. 225,000 855
Kokuyo Co. Ltd. 13,700 207
Komatsu Ltd. 70,000 1,335
Konami Corp. 8,900 224
Konica Minolta Holdings, Inc. 39,000 498
Kubota Corp. 82,000 885
Kuraray Co. Ltd. 31,500 370
Kurita Water Industries Ltd. 12,400 266
Kyocera Corp. 12,400 1,098
Kyowa Hakko Kogyo Co. Ltd. 29,000 212
Kyushu Electric Power Co.,
Inc. 27,100 611
Lawson, Inc. 5,500 207
</Table>
See Notes to Financial Statements.
53
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
Leopalace21 Corp. 11,000 413
Mabuchi Motor Co. Ltd. 3,500 180
Makita Corp. 13,300 410
Marubeni Corp. 114,000 597
Marui Co. Ltd. 25,300 500
Matsumotokiyoshi Co. Ltd. 5,200 149
Matsushita Electric
Industrial Co. Ltd. 157,880 3,508
Matsushita Electric Works
Ltd. 27,000 324
Meiji Seika Kaisha Ltd. 38,000 194
Meitec Corp. 5,100 168
Millea Holdings, Inc. 109 2,158
Minebea Co. Ltd. 39,000 269
Mitsubishi Chemical Holdings
Corp. 94,500 583
Mitsubishi Corp. 105,200 2,396
Mitsubishi Electric Corp. 144,000 1,222
Mitsubishi Estate Co. Ltd. 85,000 2,015
Mitsubishi Gas Chemical Co.,
Inc. 35,000 427
Mitsubishi Heavy Industries
Ltd. 235,000 1,118
Mitsubishi Logistics Corp.
(b) 14,000 224
Mitsubishi Materials Corp.
(b) 82,000 438
Mitsubishi Rayon Co. Ltd. 53,000 434
Mitsubishi Tokyo Financial
Group, Inc. 651 9,960
Mitsui & Co. Ltd. (b) 124,000 1,793
Mitsui Chemicals, Inc. 53,000 390
Mitsui Engineering &
Shipbuilding Co. Ltd. 73,000 237
Mitsui Fudosan Co. Ltd. 61,000 1,402
Mitsui Mining & Smelting Co.
Ltd. 49,000 343
Mitsui O.S.K. Lines Ltd. (b) 90,000 609
Mitsui Sumitomo Insurance Co.
Ltd. 91,340 1,243
Mitsui Trust Holdings, Inc. 44,000 643
Mitsukoshi Ltd. (b) 39,000 250
Mizuho Financial Group, Inc. 732 5,991
Murata Manufacturing Co. Ltd. 15,900 1,077
Namco Bandai Holdings, Inc. 20,050 275
NEC Corp. 145,000 1,019
NEC Electronics Corp. (b) 4,200 171
Net One Systems Co. Ltd. 58 119
NGK Insulators Ltd. (b) 25,000 367
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
NGK Spark Plug Co. Ltd. 18,000 420
Nichii Gakkan Co. 3,700 86
Nidec Corp. 8,700 714
Nikko Cordial Corp. 66,500 1,102
Nikon Corp. 24,000 430
Nintendo Co. Ltd. 7,700 1,152
Nippon Building Fund, Inc.
(b) 37 343
Nippon Electric Glass Co.
Ltd. 17,000 423
Nippon Express Co. Ltd. (b) 76,000 431
Nippon Meat Packers, Inc. 16,000 168
Nippon Mining Holdings, Inc. 64,000 540
Nippon Oil Corp. 99,000 776
Nippon Sheet Glass Co. Ltd.
(b) 38,000 212
Nippon Steel Corp. * 472,000 1,829
Nippon Telegraph & Telephone
Corp. 388 1,665
Nippon Unipac Holding 84 363
Nippon Yusen KK 89,000 544
Nissan Chemical Industries
Ltd. 18,000 306
Nissan Motor Co. Ltd. 173,400 2,060
Nisshin Seifun Group, Inc. 18,300 187
Nisshin Steel Co. Ltd. 82,000 284
Nissin Food Products Co. Ltd. 7,300 226
Nitto Denko Corp. 12,800 1,087
NOK Corp. 9,200 248
Nomura Holdings, Inc. 136,200 3,038
Nomura Research Institute
Ltd. 2,200 270
NSK Ltd. 41,000 356
NTN Corp. 37,000 293
NTT DATA Corp. 104 500
NTT DoCoMo, Inc. 1,280 1,893
Obayashi Corp. 52,000 423
OBIC Co. Ltd. 800 169
Odakyu Electric Railway Co.
Ltd. (b) 68,000 421
Oji Paper Co. Ltd. (b) 66,000 406
Oki Electric Industry Co.
Ltd. (b) 56,000 179
Olympus Corp. 19,000 559
OMRON Corp. 18,600 534
Onward Kashiyama Co. Ltd. 14,000 247
Oracle Corp. Japan (b) 3,200 160
Oriental Land Co. Ltd. 4,800 279
</Table>
See Notes to Financial Statements.
54
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
ORIX Corp. 6,590 2,052
Osaka Gas Co. Ltd. 161,000 586
Pioneer Corp. 16,300 263
Promise Co. Ltd. 8,000 484
Rakuten, Inc. 341 310
Resona Holdings, Inc. * 350 1,205
Ricoh Co. Ltd. 52,000 1,016
ROHM Co. Ltd. 8,400 889
Sankyo Co. Ltd. 4,600 317
SANYO Electric Co. Ltd. * (b) 145,000 398
Sapporo Holdings Ltd. (b) 36,000 188
Secom Co. Ltd. 16,000 818
Sega Sammy Holdings, Inc. 11,704 475
Seiko Epson Corp. (b) 9,700 268
Sekisui Chemical Co. Ltd. 42,000 356
Sekisui House Ltd. 37,000 552
Seven & I Holdings Co. Ltd. 61,040 2,417
Sharp Corp. 73,000 1,293
Shimamura Co. Ltd. 2,000 233
Shimano, Inc. 8,300 250
Shimizu Corp. (b) 51,000 371
Shin-Etsu Chemical Co. Ltd. 29,200 1,586
Shinsei Bank Ltd. 74,000 518
Shionogi & Co. Ltd. 26,000 427
Shiseido Co. Ltd. 29,000 540
Shizuoka Bank Ltd. (The) 48,000 485
Showa Denko KK 93,000 413
Showa Shell Sekiyu KK 19,100 217
Skylark Co. Ltd. 10,300 184
SMC Corp. 4,300 670
Softbank Corp. (b) 56,700 1,662
Sompo Japan Insurance, Inc. 64,000 928
Sony Corp. 76,200 3,529
Stanley Electric Co. Ltd. 14,400 307
Sumitomo Chemical Co. Ltd. 115,000 936
Sumitomo Corp. 87,000 1,239
Sumitomo Electric Industries
Ltd. 54,500 864
Sumitomo Heavy Industries
Ltd. 48,000 461
Sumitomo Metal Industries
Ltd. 322,000 1,382
Sumitomo Metal Mining Co.
Ltd. 43,000 600
Sumitomo Mitsui Financial
Group, Inc. 457 5,048
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
Sumitomo Realty & Development
Co. Ltd. 31,000 859
Sumitomo Trust & Banking Co.
Ltd. (The) 97,000 1,123
Suruga Bank Ltd. 21,000 284
Suzuken Co. Ltd. 6,400 201
T&D Holdings, Inc. 17,500 1,368
Taiheiyo Cement Corp. 77,000 372
Taisei Corp. 78,000 374
Taisho Pharmaceutical Co.
Ltd. 12,000 242
Taiyo Yuden Co. Ltd. 16,000 254
Takara Holdings, Inc. (b) 24,000 147
Takashimaya Co. Ltd. (b) 23,000 351
Takeda Pharmaceutical Co.
Ltd. 66,500 3,792
Takefuji Corp. 9,400 592
TDK Corp. 9,800 739
Teijin Ltd. 70,000 466
Teikoku Oil Co. Ltd. (e) 25,000 303
Terumo Corp. 14,000 460
THK Co. Ltd. 9,700 312
TIS, Inc. 4,100 111
Tobu Railway Co. Ltd. 86,000 452
Toho Co. Ltd. 14,400 278
Tohoku Electric Power Co.,
Inc. 32,100 694
Tokyo Broadcasting System,
Inc. 5,200 140
Tokyo Electric Power Co.,
Inc. (The) 83,300 2,078
Tokyo Electron Ltd. 12,900 890
Tokyo Gas Co. Ltd. 164,000 718
Tokyu Corp. 77,000 519
TonenGeneral Sekiyu KK (b) 29,000 295
Toppan Printing Co. Ltd. 44,000 610
Toray Industries, Inc. 104,000 852
Toshiba Corp. (b) 224,000 1,302
Tosoh Corp. 46,000 230
Tostem Inax Holding Corp. 20,512 441
TOTO Ltd. 23,700 220
Toyo Seikan Kaisha Ltd. 13,600 247
Toyobo Co. Ltd. 74,000 229
Toyota Industries Corp. 14,300 584
Toyota Motor Corp. 217,800 11,902
Trend Micro, Inc. 8,500 298
Ube Industries Ltd. 88,000 259
Uni-Charm Corp. 4,200 206
</Table>
See Notes to Financial Statements.
55
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
JAPAN--CONTINUED
UNY Co. Ltd. 16,000 256
Ushio, Inc. 12,600 300
USS Co. Ltd. 2,960 202
Wacoal Corp. (b) 16,000 218
West Japan Railway Co. 148 625
Yahoo Japan Corp. 1,180 720
Yakult Honsha Co. Ltd. 10,700 257
Yamada Denki Co. Ltd. 6,200 715
Yamaha Corp. 16,800 297
Yamaha Motor Co. Ltd. 16,900 418
Yamato Transport Co. Ltd. 33,000 676
Yamazaki Baking Co. Ltd. 12,000 94
Yokogawa Electric Corp. 20,400 363
--------
216,382
--------
LUXEMBOURG (0.2%)
Arcelor SA 39,082 1,540
--------
NETHERLANDS (2.2%)
ABN AMRO Holding NV 77,875 2,334
AEGON NV 62,955 1,165
Akzo Nobel NV 12,485 662
ASML Holding NV * 23,070 471
Heineken NV 10,607 403
ING Groep NV 83,043 3,281
QIAGEN NV * 22,416 331
Reed Elsevier NV 32,291 463
Rodamco Europe NV 3,388 340
Royal Ahold NV * 71,201 560
Royal DSM NV (b) 7,972 364
Royal KPN NV (b) 92,122 1,038
Royal Numico NV * 7,799 345
Royal Philips Electronics NV
(b) 57,169 1,932
TPG NV (b) 20,984 726
Unilever NV 24,046 1,670
Vedior NV 8,995 176
VNU NV 11,530 375
Wolters Kluwer NV 14,716 367
--------
17,003
--------
NEW ZEALAND (0.3%)
Auckland International
Airport Ltd. (b) 234,694 295
Fisher & Paykel Appliances
Holdings Ltd. 82,613 216
Fisher & Paykel Healthcare
Corp. Ltd. 117,402 299
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
NEW ZEALAND--CONTINUED
Fletcher Building Ltd. (b) 86,473 474
Sky City Entertainment Group
Ltd. 111,276 367
Telecom Corp. of New Zealand
Ltd. 263,776 898
Warehouse Group Ltd. (The) 57,324 137
--------
2,686
--------
NORWAY (1.6%)
Acergy SA * 27,200 428
DNB NOR ASA (b) 93,740 1,263
Frontline Ltd. (b) 8,400 280
Norsk Hydro ASA 20,560 2,850
Norske Skogindustrier ASA 24,150 409
Orkla ASA (b) 26,600 1,320
Petroleum Geo-Services ASA * 9,354 436
Schibsted ASA 10,600 292
Ship Finance International
Ltd. 420 7
Statoil ASA 87,400 2,522
Storebrand ASA (b) 42,000 470
Tandberg ASA 23,694 214
Telenor ASA 105,400 1,134
Tomra Systems ASA (b) 31,350 251
Yara International ASA 30,840 491
--------
12,367
--------
PORTUGAL (1.0%)
Banco BPI SA 100,190 714
Banco Comercial Portugues SA 392,928 1,252
Banco Espirito Santo SA 24,294 443
Brisa-Auto-estradas de
Portugal SA 81,666 804
CIMPOR-Cimentos de Portugal
SGPS SA 50,980 340
Energias de Portugal SA 328,079 1,288
Keppel Corp. Ltd. 39,000 333
Portugal Telecom SGPS SA 145,313 1,763
PT Multimedia-Servicos de
Telecomunicacoes e
Multimedia, SGPS, SA 22,010 269
Sonae SGPS SA 263,119 430
--------
7,636
--------
SINGAPORE (0.4%)
City Developments Ltd. 41,000 274
DBS Group Holdings Ltd. 52,467 529
</Table>
See Notes to Financial Statements.
56
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
SINGAPORE--CONTINUED
Oversea-Chinese Banking Corp.
Ltd. 129,700 538
Singapore Airlines Ltd. 31,000 269
Singapore Press Holdings Ltd. 108,750 303
Singapore Telecommunications
Ltd. 279,580 459
United Overseas Bank Ltd. 60,000 580
United Overseas Land Ltd. 139,300 249
Venture Corp. Ltd. 20,000 158
--------
3,359
--------
SPAIN (4.9%)
Abertis Infraestructuras SA
(b) 24,321 630
Acciona SA 3,405 530
Acerinox SA 21,638 354
Actividades de Construccion y
Servicios SA (ACS) 23,532 914
Altadis SA 25,755 1,155
Antena 3 de Television SA (b) 11,026 284
Banco Bilbao Vizcaya
Argentaria SA (b) 288,788 6,027
Banco Popular Espanol SA (b) 80,473 1,186
Banco Santander Central
Hispano SA 511,482 7,469
Corporacion Mapfre SA 13,595 277
Endesa SA 81,109 2,619
Fomento de Construcciones y
Contratas SA 5,350 396
Gamesa Corporacion
Tecnologica SA 19,313 371
Gas Natural SDG SA (b) 17,392 503
Grupo Ferrovial SA 6,761 546
Iberdrola SA 72,806 2,350
Iberia Lineas Aereas de
Espana SA 68,997 191
Indra Sistemas SA 19,673 400
Industria de Diseno Textil SA 20,634 796
Metrovacesa SA 6,916 587
Promotora de Informaciones SA
(b) 10,167 188
Repsol YPF SA 81,408 2,312
Sacyr Vallehermoso Group SA
(b) 14,335 488
Sociedad General de Aguas de
Barcelona SA, Cl A 10,872 285
Sogecable SA * (b) 3,364 134
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
SPAIN--CONTINUED
Telefonica Publicidad e
Informacion SA (b) 23,786 265
Telefonica SA 391,569 6,145
Union Fenosa SA 20,860 793
Zeltia SA * (b) 26,016 206
--------
38,401
--------
SWEDEN (1.7%)
ASSA ABLOY AB 17,600 327
Atlas Copco AB, Cl A 21,700 610
Atlas Copco AB, Cl B 15,541 406
Electrolux AB, Ser B 17,900 514
Gambro AB, Cl A (b) 16,600 198
H&M Hennes & Mauritz AB 23,900 872
Nordea Bank AB 112,000 1,385
Sandvik AB 11,500 680
Scania AB, Cl B 5,727 249
Securitas AB, Cl B (b) 19,400 374
Skandinaviska Enskilda Banken
AB (b) 27,200 674
Skanska AB, Cl B (b) 25,100 411
SKF AB, Cl B 27,400 447
Svenska Cellulosa AB ACA 8,500 373
Svenska Handelsbanken AB, Cl
A 26,800 745
Swedish Match AB 23,600 323
Tele2 AB, Cl B 21,500 254
Telefonaktiebolaget LM
Ericsson 750,800 2,856
TeliaSonera AB 99,500 597
Volvo AB, Cl A 5,557 254
Volvo AB, Cl B 11,550 541
--------
13,090
--------
SWITZERLAND (1.8%)
ABB Ltd. * 39,590 500
Adecco SA 3,462 194
Compagnie Financiere
Richemont SA 11,282 541
Credit Suisse Group 24,737 1,388
Holcim Ltd. 4,211 335
Nestle SA 7,389 2,194
Novartis AG 42,866 2,385
Roche Holding Ltd. 13,497 2,010
STMicroelectronics NV 47,776 883
Swiss Reinsurance Co. 6,788 474
Swisscom AG 772 250
Syngenta AG * 2,815 396
</Table>
See Notes to Financial Statements.
57
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
SWITZERLAND--CONTINUED
UBS AG 21,070 2,315
Zurich Financial Services * 2,862 673
--------
14,538
--------
UNITED KINGDOM (10.2%)
3i Group PLC 22,449 367
AMVESCAP PLC 30,877 288
Anglo American PLC 42,329 1,631
ARM Holdings PLC 68,892 159
AstraZeneca PLC 48,428 2,440
Aviva PLC 70,518 979
BAA PLC 37,051 534
BAE Systems PLC 104,732 766
Barclays PLC 190,195 2,225
BG Group PLC 118,488 1,481
BHP Billiton PLC 74,562 1,362
BOC Group PLC (The) 15,762 424
Boots Group PLC 18,972 237
BP PLC 623,176 7,156
Brambles Industries PLC 34,279 257
British American Tobacco PLC 49,281 1,193
British Land Co. PLC (The) 21,472 463
British Sky Broadcasting
Group PLC 37,484 352
BT Group PLC 254,308 981
Bunzl PLC 30,585 363
Burberry Group PLC 20,572 166
Cable & Wireless PLC 88,281 168
Cadbury Schweppes PLC 60,753 604
Capita Group PLC (The) 28,570 228
Carnival PLC 5,820 286
Centrica PLC 110,064 538
Compass Group PLC 78,125 310
Cookson Group PLC * 11,481 103
Corus Group PLC 154,833 237
Daily Mail & General Trust
PLC 10,695 129
Diageo PLC 88,032 1,386
Dixons Group PLC 67,720 217
Elan Corp., PLC * 18,086 262
Electrocomponents PLC 28,770 140
EMAP PLC 12,396 190
EMI Group PLC 35,036 154
Enterprise Inns PLC 16,127 267
Friends Provident PLC 58,638 212
Gallaher Group PLC 25,629 374
GKN PLC 36,074 208
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
GlaxoSmithKline PLC 177,572 4,643
GUS PLC 28,022 514
Hammerson PLC 16,989 366
Hanson PLC 25,000 327
Hays PLC 72,491 204
HBOS PLC 116,309 1,942
HSBC Holdings PLC 330,660 5,543
Imperial Chemical Industries
PLC 43,211 260
Imperial Tobacco Group PLC 23,445 695
InterContinental Hotels Group
PLC (b) 18,942 310
International Power PLC 62,672 308
Invensys PLC * 243,533 97
ITV PLC 137,968 286
J Sainsbury PLC 48,992 283
Johnson Matthey PLC 10,122 245
Kelda Group PLC 24,763 339
Kingfisher PLC 80,666 336
Ladbroke PLC (b) 59,583 403
Land Securities Group PLC 17,875 599
Legal & General Group PLC 166,002 409
Liberty International PLC 16,465 337
Lloyds TSB Group PLC 168,075 1,607
LogicaCMG PLC 48,025 163
Man Group PLC 11,407 488
Marks & Spencer Group PLC 56,664 548
Mitchells & Butlers PLC 31,322 260
National Grid PLC 83,774 833
Next PLC 9,555 274
Old Mutual PLC 179,031 626
Pearson PLC 26,082 362
Provident Financial PLC 20,451 251
Prudential PLC 69,523 806
Reckitt Benckiser PLC 18,923 666
Reed Elsevier PLC 40,925 392
Rentokil Initial PLC 85,288 231
Reuters Group PLC 47,450 327
Rexam PLC 19,606 190
Rio Tinto PLC 31,772 1,613
Rolls-Royce Group PLC, Cl B 2,973,310 5
Rolls-Royce PLC 55,266 440
Royal & Sun Alliance
Insurance Group PLC 106,392 255
Royal Bank of Scotland Group
PLC (The) 95,726 3,115
Royal Dutch Shell PLC, Cl A 118,435 3,699
</Table>
See Notes to Financial Statements.
58
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
Royal Dutch Shell PLC, Cl B 79,740 2,593
SABMiller PLC 27,783 548
Sage Group PLC (The) 52,374 250
Scottish & Newcastle PLC 33,242 300
Scottish & Southern Energy
PLC 31,147 613
Scottish Power PLC 65,164 659
Severn Trent PLC 16,074 312
Slough Estates PLC 26,485 307
Smith & Nephew PLC 33,598 298
Smiths Group PLC 22,415 383
Tesco PLC 242,343 1,389
Tomkins PLC 39,274 229
Trinity Mirror PLC 15,764 156
Unilever PLC 82,706 846
United Utilities PLC 33,365 400
Vodafone Group PLC 1,903,577 3,985
Whitbread PLC 13,595 280
William Hill Organization
Ltd. 20,301 211
Wolseley PLC 24,242 595
WPP Group PLC 36,928 443
Yell Group PLC 28,089 266
--------
80,497
--------
Total Foreign Common Stocks
(Cost $511,674) 746,500
--------
FOREIGN PREFERRED STOCK (0.6%)
GERMANY (0.6%)
Fresenius Medical Care AG 9,344 1,116
Henkel KGaA, Vorzug 8,052 942
Porsche AG 1,191 1,138
ProSiebenSat.1 Media AG 12,482 325
RWE AG Pfd 5,555 435
Volkswagen AG 15,594 851
--------
Total Foreign Preferred Stock
(Cost $2,969) 4,807
--------
EXCHANGE TRADED FUNDS (2.1%)
iShares MSCI EAFE Index Fund
(b) 156,932 10,204
iShares MSCI Germany Index
Fund 62,976 1,452
iShares MSCI Italy Index Fund 65,210 1,819
iShares MSCI Japan Index Fund
(b) 200,300 2,884
--------
Total Exchange Traded Funds
(Cost $15,170) 16,359
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
RIGHTS (0.0%)
FRANCE (0.0%)
Vinci SA, expiring 04/13/06 13,154 28
--------
Total Rights (Cost $100) 28
--------
SHORT-TERM INVESTMENTS (10.9%)
Brown Brothers Harriman &
Co., Cayman Islands Cash
Sweep, 3.970% 18,869,140 18,869
CSFB Enhanced Liquidity
Portfolio, 5.006% (f) 67,285,280 67,285
--------
Total Short-Term Investments
(Cost $86,154) 86,154
--------
Total Investments (Cost
$616,067) (a) -- 108.3% 853,848
Liabilities in excess of other
assets -- (8.3)% (65,183)
--------
Net Assets -- 100.0% $788,665
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $637,018
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $231,004
Unrealized Depreciation................. (14,174)
--------
Unrealized Appreciation
(Depreciation)........................ $216,830
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $64,328.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed these securities to be illiquid based upon procedures approved by the
Board of Trustees. The restricted securities held by the Fund as of March 31,
2006 are identified below (in thousands):
<Table>
<Caption>
ACQUISITION PERCENT OF
ISSUE DESCRIPTION DATE COST SHARES VALUE NET ASSETS
- ----------------- ----------- ---- ------ ------ ----------
L'Air Liquide SA,
Registered Shares * $649 5,403 $1,125 0.14%
</Table>
* 1,526 shares of this security was acquired on 09/26/03, 167 shares on
11/15/04 and 3,710 shares on 02/08/06.
(d)Market value is less than one thousand dollars.
See Notes to Financial Statements.
59
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERNATIONAL EQUITY INDEX FUND -- CONCLUDED
(e)Valued at fair value using methods determined by the
Board and represents 0.04% of net assets as of March 31, 2006.
(f)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
PLC -- Public Limited Company
Ser -- Series
The investment concentrations for the International Equity Index Fund as a
percentage of net assets, by industry, as of March 31, 2006, were as follows
(unaudited):
<Table>
Consumer Discretionary 12.7%
Consumer Staples 5.2
Energy 6.8
Financials 29.1
Health Care 4.9
Industrials 10.8
Information Technology 6.3
Materials 7.5
Short-Term Investments 13.0
Telecommunication Services 5.6
Utilities 6.4
</Table>
See Notes to Financial Statements.
60
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LARGE CAP RELATIVE VALUE FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
COMMON STOCKS (98.5%)
CONSUMER DISCRETIONARY (9.2%)
Advance Auto Parts, Inc. 500,000 20,820
CBS Corp., Cl B 600,000 14,388
Kohl's Corp. * (b) 300,000 15,903
Lowe's Cos., Inc. (b) 275,000 17,721
McDonald's Corp. 40,000 1,374
Meredith Corp. 300,000 16,737
NIKE, Inc., Cl B (b) 150,000 12,765
Target Corp. 175,000 9,102
Viacom, Inc., Cl B * (b) 300,000 11,640
Walt Disney Co. (The) (b) 700,000 19,523
----------
139,973
----------
CONSUMER STAPLES (9.6%)
Anheuser-Busch Cos., Inc.
(b) 400,000 17,108
Archer Daniels Midland Co. 200,000 6,730
Diageo PLC ADR (b) 400,000 25,372
General Mills, Inc. 400,000 20,272
PepsiCo, Inc. 200,000 11,558
Procter & Gamble Co. (The) 225,000 12,965
Unilever PLC ADR (b) 500,000 20,535
Wal-Mart Stores, Inc. (b) 400,000 18,896
Wm. Wrigley Jr. Co. (b) 200,000 12,800
----------
146,236
----------
ENERGY (10.5%)
Anadarko Petroleum Corp. 150,000 15,152
Baker Hughes, Inc. (b) 300,000 20,520
Burlington Resources, Inc. 175,000 16,084
Chevron Corp. (b) 450,000 26,086
ConocoPhillips 300,000 18,945
Exxon Mobil Corp. 370,000 22,518
Royal Dutch Shell PLC ADR,
Cl A (b) 400,000 24,904
Transocean, Inc. * (b) 200,000 16,060
----------
160,269
----------
FINANCIALS (24.7%)
American Express Co. 35,000 1,839
American International
Group, Inc. (b) 375,000 24,784
Ameriprise Financial, Inc. 600,000 27,036
Bank of America Corp. 500,000 22,770
Berkshire Hathaway, Inc.,
Cl B * (b) 8,500 25,602
Cincinnati Financial Corp. 450,000 18,932
CIT Group, Inc. (b) 400,000 21,408
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
Citigroup, Inc. 650,000 30,705
Fifth Third Bancorp (b) 450,000 17,712
Genworth Financial, Inc.,
Cl A (b) 600,000 20,058
Goldman Sachs Group, Inc.
(The) (b) 90,000 14,127
Morgan Stanley 400,000 25,128
New York Community
Bancorp, Inc. (b) 1,300,000 22,776
Principal Financial Group,
Inc. (b) 450,000 21,960
State Street Corp. 250,000 15,108
U.S. Bancorp 500,000 15,250
UBS AG 40,000 4,399
Wachovia Corp. (b) 500,000 28,024
Wells Fargo & Co. 275,000 17,564
----------
375,182
----------
HEALTH CARE (10.8%)
Abbott Laboratories 400,000 16,988
Amgen, Inc. * 225,000 16,369
Boston Scientific Corp. *
(b) 1,000,000 23,050
Bristol-Myers Squibb Co.
(b) 889,682 21,895
Eli Lilly & Co. (b) 350,000 19,355
Johnson & Johnson 350,000 20,727
Pfizer, Inc. 1,200,000 29,904
WellPoint, Inc. * 215,000 16,647
----------
164,935
----------
INDUSTRIALS (10.3%)
3M Co. (b) 300,000 22,707
Cendant Corp. 1,000,000 17,350
Dover Corp. 500,000 24,280
Emerson Electric Co. 150,000 12,545
General Electric Co. 500,000 17,390
Goodrich Corp. 500,000 21,805
Illinois Tool Works, Inc. 125,000 12,039
Ingersoll-Rand Co. Ltd.,
Cl A 500,000 20,895
Textron, Inc. 75,000 7,004
----------
156,015
----------
INFORMATION TECHNOLOGY (12.4%)
Accenture Ltd., Cl A 800,000 24,056
Applied Materials, Inc.
(b) 1,000,000 17,510
Automatic Data Processing,
Inc. 25,000 1,142
</Table>
See Notes to Financial Statements.
61
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LARGE CAP RELATIVE VALUE FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Cisco Systems, Inc. * 600,000 13,002
First Data Corp. 500,000 23,410
Hewlett-Packard Co. 550,000 18,095
Intel Corp. 1,000,000 19,350
International Business
Machines Corp. 200,000 16,494
Microsoft Corp. 700,000 19,047
Nokia Corp. ADR (b) 1,100,000 22,792
Texas Instruments, Inc. 400,000 12,988
----------
187,886
----------
MATERIALS (2.8%)
E.I. du Pont de Nemours &
Co. (b) 400,000 16,884
Praxair, Inc. 300,000 16,545
Sonoco Products Co. 250,000 8,468
----------
41,897
----------
TELECOMMUNICATION SERVICES (4.2%)
ALLTEL Corp. (b) 275,000 17,806
BellSouth Corp. 625,000 21,656
Vodafone Group PLC ADR 1,200,000 25,081
----------
64,543
----------
UTILITIES (4.0%)
Edison International 550,000 22,649
Entergy Corp. 200,000 13,788
Exelon Corp. (b) 300,000 15,870
SCANA Corp. 200,000 7,848
----------
60,155
----------
Total Common Stocks
(Cost $1,227,692) 1,497,091
----------
MONEY MARKET FUNDS (1.8%)
Federated Prime Value
Obligations Fund, Cl I 28,076,635 28,077
----------
Total Money Market Funds
(Cost $28,077) 28,077
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
SHORT-TERM INVESTMENT (21.0%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 319,720,491 319,720
----------
Total Short-Term Investment
(Cost $319,720) 319,720
----------
Total Investments
(Cost $1,575,489) (a) --
121.3% 1,844,888
Liabilities in excess of
other assets -- (21.3)% (324,327)
----------
Net Assets -- 100.0% $1,520,561
==========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $1,577,825
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................ $283,940
Unrealized Depreciation................ (16,878)
--------
Unrealized Appreciation
(Depreciation)....................... $267,062
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $309,029.
(c)This security was purchased with cash collateral held
from securities lending.
ADR -- American Depository Receipt
Cl -- Class
PLC -- Public Limited Company
See Notes to Financial Statements.
62
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LARGE CAP VALUE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (98.6%)
CONSUMER DISCRETIONARY (6.2%)
Federated Department
Stores, Inc. 280,280 20,460
Foot Locker, Inc. 307,300 7,338
New York Times Co. (The),
Cl A (b) 267,200 6,763
OfficeMax, Inc. 188,563 5,689
Pulte Homes, Inc. 192,700 7,404
Time Warner, Inc. 401,200 6,736
----------
54,390
----------
CONSUMER STAPLES (7.4%)
Alberto-Culver Co. 214,378 9,482
Colgate-Palmolive Co. 328,550 18,760
J.M. Smucker Co. (The) 173,861 6,902
Kimberly-Clark Corp. 158,850 9,182
PepsiCo, Inc. 229,550 13,266
Sysco Corp. (b) 224,400 7,192
----------
64,784
----------
ENERGY (12.6%)
Amerada Hess Corp. (b) 81,650 11,627
Arch Coal, Inc. 99,200 7,533
Chevron Corp. 318,000 18,434
ConocoPhillips (b) 311,350 19,662
Exxon Mobil Corp. 383,200 23,322
Marathon Oil Corp. 300,150 22,862
Questar Corp. 100,300 7,026
----------
110,466
----------
FINANCIALS (22.4%)
A.G. Edwards, Inc. 169,200 8,436
Astoria Financial Corp.
(b) 263,775 8,166
Bank of America Corp. (b) 406,200 18,499
Bank of New York Co., Inc.
(The) 426,550 15,373
Bear Stearns & Co., Inc. 124,250 17,234
Citigroup, Inc. 207,629 9,808
Colonial BancGroup, Inc.
(The) 303,600 7,590
Compass Bancshares, Inc. 156,603 7,926
Genworth Financial, Inc.,
Cl A 209,850 7,015
JPMorgan Chase & Co. 235,966 9,826
Lincoln National Corp. (b) 183,000 9,990
Merrill Lynch & Co., Inc. 121,750 9,589
Morgan Stanley 137,550 8,641
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
Northern Trust Corp. (b) 159,850 8,392
Regions Financial Corp.
(b) 219,630 7,724
Torchmark Corp. (b) 125,713 7,178
U.S. Bancorp 307,150 9,368
Wachovia Corp. (b) 170,200 9,540
Washington Mutual, Inc.
(b) 171,800 7,322
XL Capital Ltd., Cl A 137,500 8,815
----------
196,432
----------
HEALTH CARE (9.6%)
Abbott Laboratories 319,700 13,578
Becton, Dickinson & Co. 114,130 7,028
Cooper Cos., Inc. (The)
(b) 143,750 7,767
Health Management
Associates, Inc., Cl A 348,400 7,515
PerkinElmer, Inc. 197,146 4,627
Pfizer, Inc. 719,000 17,917
Universal Health Services,
Inc., Cl B (b) 148,400 7,537
Wyeth 384,250 18,644
----------
84,613
----------
INDUSTRIALS (20.8%)
American Power Conversion
Corp. (b) 226,800 5,241
Cooper Industries Ltd., Cl
A (b) 91,350 7,938
Emerson Electric Co. 89,902 7,519
Forward Air Corp. 61,177 2,281
General Electric Co. 550,300 19,140
Honeywell International,
Inc. 445,550 19,057
Illinois Tool Works, Inc. 196,100 18,886
ITT Industries, Inc. 330,600 18,586
J. B. Hunt Transport
Services, Inc. (b) 215,459 4,641
MSC Industrial Direct Co.,
Inc., Cl A 162,600 8,784
Pall Corp. (b) 239,931 7,483
Parker Hannifin Corp. (b) 107,550 8,670
Pitney Bowes, Inc. 153,198 6,577
R.R. Donnelley & Sons Co. 183,600 6,007
Rockwell Automation, Inc. 194,500 13,986
Ryder System, Inc. 138,700 6,211
United Parcel Service,
Inc., Cl B (b) 125,200 9,938
</Table>
See Notes to Financial Statements.
63
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LARGE CAP VALUE EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
UTI Worldwide, Inc. 106,350 3,361
Waste Management, Inc. 250,200 8,832
----------
183,138
----------
INFORMATION TECHNOLOGY (4.4%)
Automatic Data Processing,
Inc. 209,650 9,577
Diebold, Inc. 152,528 6,269
First Data Corp. 167,300 7,833
Harris Corp. 137,875 6,520
Jack Henry & Associates,
Inc. 374,001 8,553
----------
38,752
----------
MATERIALS (6.0%)
Alcoa, Inc. 292,150 8,928
E.I. du Pont de Nemours &
Co. (b) 176,100 7,433
International Flavors &
Fragrances, Inc. 209,213 7,180
MeadWestvaco Corp. (b) 250,650 6,845
Praxair, Inc. 179,150 9,880
Sigma-Aldrich Corp. (b) 115,818 7,620
Valspar Corp. (The) 177,200 4,939
----------
52,825
----------
TELECOMMUNICATION SERVICES (4.3%)
ALLTEL Corp. 210,986 13,661
Sprint Nextel Corp. 387,100 10,003
Verizon Communications,
Inc. 403,660 13,749
----------
37,413
----------
UTILITIES (4.9%)
Cinergy Corp. (b) 205,100 9,314
Dominion Resources, Inc.
(b) 142,418 9,831
Entergy Corp. 153,900 10,610
PPL Corp. 453,744 13,340
----------
43,095
----------
Total Common Stocks
(Cost $750,024) 865,908
----------
SHORT-TERM INVESTMENT (14.5%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 127,527,175 127,527
----------
Total Short-Term Investment
(Cost $127,527) 127,527
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENT (5.8%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06,
to be purchased on
04/03/06, repurchase
price $50,883,584
(collateralized by U.S.
Government Agencies;
5.500% 02/01/35 total
market value
$51,881,786) 50,864 50,864
----------
Total Repurchase Agreement
(Cost $50,864) 50,864
----------
Total Investments
(Cost $928,415) (a) --
118.9% 1,044,299
Liabilities in excess of
other assets -- (18.9)% (165,650)
----------
Net Assets -- 100.0% $ 878,649
==========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $929,356
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $121,753
Unrealized Depreciation................. (6,810)
--------
Unrealized Appreciation
(Depreciation)........................ $114,943
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $123,453.
(c)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
See Notes to Financial Statements.
64
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MID-CAP EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (97.0%)
CONSUMER DISCRETIONARY (13.2%)
Abercrombie & Fitch Co., Cl
A 64,831 3,780
American Eagle Outfitters,
Inc. 91,768 2,740
Black & Decker Corp. (The) 52,562 4,567
Brinker International, Inc. 63,523 2,684
Claire's Stores, Inc. 100,697 3,656
Darden Restaurants, Inc. 68,079 2,793
Dillard's, Inc., Cl A 138,144 3,597
Hilton Hotels Corp. 129,842 3,306
J.C. Penney Co., Inc. (b) 68,930 4,164
Johnson Controls, Inc. 33,606 2,552
Lennar Corp., Cl A (b) 40,355 2,437
Liz Claiborne, Inc. (b) 85,833 3,517
McGraw-Hill Cos., Inc. (The) 45,423 2,617
Men's Wearhouse, Inc. (The) 107,769 3,873
Nordstrom, Inc. 118,918 4,660
Polo Ralph Lauren Corp. 60,942 3,694
Whirlpool Corp. 39,741 3,635
--------
58,272
--------
CONSUMER STAPLES (3.7%)
Archer Daniels Midland Co. 131,177 4,413
Loews Corp. -- Carolina
Group (b) 50,107 2,369
Pepsi Bottling Group, Inc.
(The) (b) 73,836 2,244
Reynolds American, Inc. (b) 34,908 3,683
Smithfield Foods, Inc. * (b) 121,746 3,572
--------
16,281
--------
ENERGY (7.7%)
Amerada Hess Corp. (b) 33,676 4,795
Cooper Cameron Corp. * (b) 84,887 3,742
Devon Energy Corp. (b) 74,127 4,534
Marathon Oil Corp. 66,206 5,043
Murphy Oil Corp. (b) 69,465 3,461
Noble Energy, Inc. 51,178 2,248
Pride International, Inc. * 84,372 2,631
Tesoro Corp. * 50,048 3,420
Valero Energy Corp. 63,886 3,819
--------
33,693
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS (16.0%)
American Capital Strategies
Ltd. (b) 102,356 3,599
American Financial Group,
Inc. (b) 69,710 2,901
Arch Capital Group Ltd. * 50,780 2,932
Bear Stearns & Co., Inc. 48,311 6,701
CIT Group, Inc. 110,332 5,905
Comerica, Inc. 54,216 3,143
Conseco, Inc. * (b) 100,899 2,504
E*TRADE Financial Corp. * 209,219 5,645
Genworth Financial, Inc., Cl
A 109,149 3,649
IndyMac Bancorp, Inc. (b) 41,522 1,699
KeyCorp (b) 126,802 4,666
Lincoln National Corp. (b) 53,706 2,932
MBIA, Inc. 58,384 3,511
MGIC Investment Corp. 50,470 3,363
Old Republic International
Corp. 134,852 2,942
PMI Group, Inc. (The) 77,876 3,576
Radian Group, Inc. (b) 47,143 2,840
St. Paul Travelers Cos.,
Inc. (The) 64,370 2,690
TD Banknorth, Inc. (b) 78,921 2,316
Zions Bancorp 28,319 2,343
--------
69,857
--------
HEALTH CARE (12.3%)
Allergan, Inc. (b) 41,997 4,557
Applera Corp.-Applied
Biosystems Group 77,186 2,095
Barr Pharmaceuticals, Inc. * 19,900 1,253
Becton, Dickinson & Co. 52,472 3,231
Biogen Idec, Inc. * (b) 60,096 2,831
CIGNA Corp. 39,297 5,132
Coventry Health Care, Inc. * 76,158 4,111
Dade Behring Holdings, Inc. 66,187 2,364
Express Scripts, Inc. * 43,340 3,810
Hospira, Inc. * 60,013 2,368
Humana, Inc. * 64,045 3,372
King Pharmaceuticals, Inc. * 174,623 3,012
Laboratory Corp. of America
Holdings * (b) 78,112 4,568
McKesson Corp. 58,017 3,024
Mylan Laboratories, Inc. 58,305 1,364
</Table>
See Notes to Financial Statements.
65
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MID-CAP EQUITY FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTH CARE--CONTINUED
PDL BioPharma, Inc. * (b) 106,524 3,494
Universal Health Services,
Inc., Cl B 71,089 3,611
--------
54,197
--------
INDUSTRIALS (13.2%)
Arrow Electronics, Inc. * 115,988 3,743
Crane Co. 82,877 3,399
CSX Corp. 70,878 4,239
Cummins, Inc. (b) 38,223 4,017
Eaton Corp. 64,269 4,689
Goodrich Corp. 61,442 2,679
Granite Construction, Inc. 77,825 3,789
Harsco Corp. 56,355 4,655
Herman Miller, Inc. 93,444 3,029
L-3 Communications Holdings,
Inc. 37,076 3,181
Mettler Toledo
International, Inc. * 42,364 2,556
Norfolk Southern Corp. 56,421 3,051
Ryder System, Inc. 84,365 3,778
Sotheby's Holdings, Inc., Cl
A * 135,435 3,933
Southwest Airlines Co. 225,446 4,056
Thomas & Betts Corp. * 63,494 3,262
--------
58,056
--------
INFORMATION TECHNOLOGY (15.0%)
Accenture Ltd., Cl A 104,619 3,146
ADTRAN, Inc. 80,246 2,101
Alliance Data Systems Corp.
* (b) 79,644 3,725
Amphenol Corp., Cl A 89,393 4,665
Broadcom Corp., Cl A * 88,675 3,827
Citrix Systems, Inc. * (b) 121,655 4,611
Compuware Corp. * 174,640 1,367
Corning, Inc. * (b) 108,360 2,916
Freescale Semiconductor,
Inc., Cl B * 120,442 3,345
Global Payments, Inc. (b) 97,811 5,184
Harris Corp. 78,655 3,720
Lam Research Corp. * (b) 92,826 3,992
MEMC Electronic Materials,
Inc. * (b) 100,756 3,720
National Semiconductor Corp. 155,332 4,324
NCR Corp. * (b) 108,763 4,545
NVIDIA Corp. * (b) 87,702 5,022
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
SanDisk Corp. * 46,913 2,698
Western Digital Corp. * 168,812 3,280
--------
66,188
--------
MATERIALS (4.6%)
FMC Corp. 34,332 2,128
Freeport-McMoRan Copper &
Gold, Inc., Cl B (b) 31,696 1,894
Louisiana-Pacific Corp. (b) 129,693 3,528
Lubrizol Corp. (The) 52,698 2,258
Phelps Dodge Corp. (b) 50,367 4,056
Rohm & Haas Co. 69,166 3,380
Southern Copper Corp. (b) 34,787 2,939
--------
20,183
--------
REITS (5.1%)
Boston Properties, Inc. 13,177 1,229
Brandywine Realty Trust 77,032 2,447
Camden Property Trust 36,531 2,632
CBL & Associates Properties,
Inc. 59,613 2,531
General Growth Properties,
Inc. (b) 70,554 3,448
New Century Financial Corp.
(b) 60,436 2,781
Simon Property Group, Inc.
(b) 22,137 1,863
SL Green Realty Corp. 12,347 1,253
Ventas, Inc. 129,975 4,312
--------
22,496
--------
TELECOMMUNICATION SERVICES (0.5%)
Qwest Communications
International, Inc. * (b) 354,816 2,413
--------
UTILITIES (5.7%)
AES Corp. (The) * 174,410 2,975
Allegheny Energy, Inc. * 72,149 2,442
Alliant Energy Corp (b) 107,280 3,376
American Electric Power Co.,
Inc. (b) 133,721 4,549
Edison International 120,526 4,964
FirstEnergy Corp. (b) 47,534 2,324
Sempra Energy 100,443 4,667
--------
25,297
--------
Total Common Stocks (Cost
$366,308) 426,933
--------
</Table>
See Notes to Financial Statements.
66
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MID-CAP EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
SHORT-TERM INVESTMENT (21.1%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 92,956,341 92,956
--------
Total Short-Term Investment
(Cost $92,956) 92,956
--------
REPURCHASE AGREEMENT (3.2%)
BNP Paribas, 4.655%, dated
03/31/06, to be
repurchased on 04/03/06,
repurchase price
$13,951,254
(collateralized by U.S.
Government Agencies;
2.875% - 4.600%,
12/15/06 - 04/11/08 total
market value $14,225,271) 13,946 13,946
--------
Total Repurchase Agreement
(Cost $13,946) 13,946
--------
Total Investments (Cost
$473,210) (a) -- 121.3% 533,835
Liabilities in excess of other
assets -- (21.3)% (93,868)
--------
Net Assets -- 100.0% $439,967
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $474,140
(amount in thousands). Unrealized appreciation/
(depreciation) on a tax basis is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $63,092
Unrealized Depreciation.................. (3,396)
-------
Unrealized Appreciation (Depreciation)... $59,696
=======
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $90,550.
(c)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
REIT -- Real Estate Investment Trust
See Notes to Financial Statements.
67
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MID-CAP VALUE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
COMMON STOCKS (97.6%)
CONSUMER DISCRETIONARY (13.6%)
Centex Corp. 21,100 1,308
Coca-Cola Femsa SA ADR 66,373 2,204
Federated Department Stores,
Inc. 33,400 2,438
Foot Locker, Inc. (b) 173,000 4,131
Hilton Hotels Corp. 197,600 5,032
Johnson Controls, Inc. 38,800 2,946
KB Home (b) 22,300 1,449
Mattel, Inc. (b) 130,000 2,357
New York Times Co. (The), Cl
A (b) 92,600 2,344
OfficeMax, Inc. 124,400 3,753
Pulte Homes, Inc. 52,900 2,032
Regal Entertainment Group, Cl
A (b) 127,700 2,402
Standard Pacific Corp. (b) 54,800 1,842
--------
34,238
--------
CONSUMER STAPLES (6.2%)
Alberto-Culver Co. 113,976 5,042
Clorox Co. (The) 25,300 1,514
Corn Products International,
Inc. 74,991 2,217
Estee Lauder Cos., Inc.
(The), Cl A 48,800 1,815
J.M. Smucker Co. (The) 81,500 3,236
Pepsi Bottling Group, Inc.
(The) 57,100 1,735
--------
15,559
--------
ENERGY (9.0%)
Amerada Hess Corp. (b) 34,000 4,841
CARBO Ceramics, Inc. 31,063 1,768
CHC Helicopter Corp., Cl A 74,889 1,906
Chesapeake Energy Corp. (b) 60,800 1,910
Holly Corp. 21,900 1,623
Pogo Producing Co. 38,400 1,930
Questar Corp. 46,300 3,243
Sunoco, Inc. (b) 25,300 1,963
Tidewater, Inc. (b) 22,900 1,265
Western Refining, Inc. 106,112 2,294
--------
22,743
--------
FINANCIALS (19.4%)
Alliancebernstein Holding LP
(b) 35,000 2,319
AmSouth Bancorporation (b) 62,500 1,691
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
Aspen Insurance Holdings Ltd.
(b) 110,500 2,725
Astoria Financial Corp. 103,700 3,211
BankUnited Financial Corp.,
Cl A 91,140 2,464
Bear Stearns & Co., Inc. 26,300 3,648
CIT Group, Inc. 39,500 2,114
Colonial BancGroup, Inc.
(The) 94,200 2,355
Comerica, Inc. 36,900 2,139
Commercial Capital Bancorp,
Inc. 139,100 1,956
Compass Bancshares, Inc. 43,000 2,176
Fidelity National Financial,
Inc. (b) 70,300 2,498
H & R Block, Inc. 60,200 1,303
KeyCorp 48,000 1,766
Lincoln National Corp. (b) 44,100 2,407
Protective Life Corp. (b) 34,500 1,716
Provident Financial Services,
Inc. 122,139 2,211
South Financial Group, Inc.
(The) (b) 133,200 3,483
St. Joe Co. (The) 24,100 1,514
Torchmark Corp. (b) 32,700 1,867
XL Capital Ltd., Cl A 48,900 3,135
--------
48,698
--------
HEALTH CARE (5.6%)
Cooper Cos., Inc. (The) 57,200 3,091
Health Management Associates,
Inc., Cl A (b) 121,500 2,621
PerkinElmer, Inc. 96,900 2,274
Perrigo Co. (b) 146,300 2,386
Universal Health Services,
Inc., Cl B 76,200 3,870
--------
14,242
--------
INDUSTRIALS (17.5%)
American Power Conversion
Corp. (b) 58,900 1,361
Cooper Industries Ltd., Cl A
(b) 47,900 4,163
ITT Industries, Inc. 93,800 5,272
L-3 Communications Holdings,
Inc. 28,048 2,406
MSC Industrial Direct Co.,
Inc., Cl A 42,500 2,296
Pall Corp. (b) 83,600 2,607
</Table>
See Notes to Financial Statements.
68
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MID-CAP VALUE EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
Parker Hannifin Corp. (b) 29,600 2,386
Pentair, Inc. (b) 68,600 2,795
Pitney Bowes, Inc. 79,400 3,409
R.R. Donnelley & Sons Co. 107,752 3,526
Rockwell Automation, Inc. 35,000 2,517
Ryder System, Inc. 84,014 3,762
Textron, Inc. 22,200 2,073
UTI Worldwide, Inc. 39,400 1,245
Walter Industries, Inc. 66,100 4,404
--------
44,222
--------
INFORMATION TECHNOLOGY (7.1%)
Amphenol Corp., Cl A 81,700 4,262
Analog Devices, Inc. 46,800 1,792
Harris Corp. 52,500 2,483
Jack Henry & Associates, Inc.
(b) 183,600 4,199
Linear Technology Corp. (b) 52,700 1,849
Reynolds & Reynolds Co.
(The), Cl A 63,233 1,796
Tektronix, Inc. (b) 44,600 1,593
--------
17,974
--------
MATERIALS (8.7%)
Ashland, Inc. 35,600 2,530
Ball Corp. (b) 65,700 2,880
Cytec Industries, Inc. 27,107 1,627
Foundation Coal Holdings,
Inc. 107,455 4,421
International Flavors &
Fragrances, Inc. 65,300 2,241
Nucor Corp. 27,900 2,924
Sigma-Aldrich Corp. (b) 54,100 3,559
Valspar Corp. (The) 67,398 1,878
--------
22,060
--------
REITS (2.2%)
American Financial Realty
Trust (b) 167,000 1,946
Developers Diversified Realty
Corp. (b) 23,700 1,298
Trustreet Properties, Inc. 157,600 2,393
--------
5,637
--------
UTILITIES (8.3%)
Ameren Corp. (b) 74,600 3,717
Cinergy Corp. (b) 39,500 1,794
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
UTILITIES--CONTINUED
Constellation Energy Group,
Inc. 80,900 4,426
Edison International 94,100 3,875
Pepco Holdings, Inc. (b) 109,100 2,486
PPL Corp. (b) 159,600 4,692
--------
20,990
--------
Total Common Stocks
(Cost $224,894) 246,363
--------
MONEY MARKET FUNDS (4.6%)
Federated Prime Value
Obligations Fund, Cl I 11,597,140 11,597
--------
Total Money Market Funds
(Cost $11,597) 11,597
--------
SHORT-TERM INVESTMENT (25.9%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 65,280,695 65,281
--------
Total Short-Term Investment
(Cost $65,281) 65,281
--------
Total Investments
(Cost $301,772) (a) -- 128.1% 323,241
Liabilities in excess of other
assets -- (28.1)% (70,906)
--------
Net Assets -- 100.0% $252,335
========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $302,099
(amount in thousands). Unrealized appreciation/
(depreciation) on a tax basis is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $25,189
Unrealized Depreciation.................. (4,047)
-------
Unrealized Appreciation (Depreciation)... $21,142
=======
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $63,390.
(c)This security was purchased with cash collateral held
from securities lending.
ADR -- American Depository Receipt
Cl -- Class
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
See Notes to Financial Statements.
69
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
QUALITY GROWTH STOCK FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
COMMON STOCKS (98.2%)
CONSUMER DISCRETIONARY (8.9%)
Coach, Inc. * 37,000 1,279
Home Depot, Inc. (The) (b) 41,000 1,734
Lowe's Cos., Inc. (b) 45,000 2,901
Staples, Inc. 91,500 2,336
TJX Cos., Inc. (The) 38,000 943
Univision Communications,
Inc., Cl A * 20,000 689
Walt Disney Co. (The) (b) 41,000 1,143
--------
11,025
--------
CONSUMER STAPLES (7.8%)
Colgate-Palmolive Co. 36,000 2,056
CVS Corp. 36,000 1,075
PepsiCo, Inc. 47,000 2,716
Procter & Gamble Co. (The) 42,000 2,420
Wal-Mart Stores, Inc. 29,884 1,412
--------
9,679
--------
ENERGY (8.4%)
Anadarko Petroleum Corp. 15,000 1,515
Apache Corp. (b) 37,250 2,440
BJ Services Co. 53,000 1,834
Exxon Mobil Corp. 75,000 4,565
--------
10,354
--------
FINANCIALS (17.1%)
AFLAC, Inc. 11,000 496
American Express Co. 37,180 1,954
American International
Group, Inc. 39,000 2,578
Chubb Corp. (The) 26,500 2,529
Golden West Financial Corp.
(b) 18,000 1,222
Goldman Sachs Group, Inc.
(The) 8,000 1,256
JPMorgan Chase & Co. 58,000 2,415
Merrill Lynch & Co., Inc. 15,000 1,181
Prudential Financial, Inc.
(b) 35,000 2,654
SLM Corp. 47,000 2,441
State Street Corp. 40,000 2,417
--------
21,143
--------
HEALTH CARE (15.9%)
Amgen, Inc. * 38,000 2,765
Becton, Dickinson & Co. 37,000 2,278
Coventry Health Care, Inc. * 45,000 2,429
Forest Laboratories, Inc. * 54,000 2,410
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Johnson & Johnson 14,732 872
Medtronic, Inc. 47,063 2,388
St. Jude Medical, Inc. * 41,000 1,681
UnitedHealth Group, Inc. 61,200 3,419
Varian Medical Systems, Inc.
* (b) 24,000 1,348
--------
19,590
--------
INDUSTRIALS (16.3%)
Caterpillar, Inc. 35,000 2,513
Danaher Corp. 28,000 1,779
Emerson Electric Co. 19,000 1,589
Fastenal Co. (b) 38,000 1,799
General Dynamics Corp. 20,000 1,280
General Electric Co. 123,844 4,308
Honeywell International,
Inc. 56,000 2,395
ITT Industries, Inc. 26,000 1,462
J. B. Hunt Transport
Services, Inc. (b) 28,000 603
Rockwell Collins, Inc. 29,000 1,634
Waste Management, Inc. 20,000 706
--------
20,068
--------
INFORMATION TECHNOLOGY (19.7%)
Automatic Data Processing,
Inc. 40,000 1,827
CheckFree Corp. * (b) 40,000 2,020
Cognizant Technology
Solutions Corp., Cl A * 12,000 714
Dell, Inc. * 27,000 804
Harris Corp. 20,000 946
Hewlett-Packard Co. 61,000 2,007
Intel Corp. 47,086 911
Intersil Corp., Cl A (b) 46,000 1,330
Jabil Circuit, Inc. * 17,000 729
Microsoft Corp. 144,056 3,919
Network Appliance, Inc. *
(b) 42,000 1,513
Oracle Corp. * 36,808 504
Paychex, Inc. 66,000 2,750
QUALCOMM, Inc. 31,000 1,569
Texas Instruments, Inc. 83,000 2,695
--------
24,238
--------
MATERIALS (3.4%)
Praxair, Inc. 45,000 2,481
Rohm & Haas Co. 34,000 1,662
--------
4,143
--------
</Table>
See Notes to Financial Statements.
70
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
QUALITY GROWTH STOCK FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
TELECOMMUNICATION SERVICES (0.7%)
AT&T, Inc. (b) 31,000 838
--------
Total Common Stocks (Cost
$93,397) 121,078
--------
WARRANTS (0.0%)
INFORMATION TECHNOLOGY (0.0%)
Lucent Technologies, Inc. * 22,693 14
--------
Total Warrants (Cost $0) 14
--------
SHORT-TERM INVESTMENT (16.7%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 20,697,375 20,697
--------
Total Short-Term Investment
(Cost $20,697) 20,697
--------
Total Investments (Cost
$114,094) (a) -- 114.9% 141,789
Liabilities in excess of other
assets -- (14.9)% (18,428)
--------
Net Assets -- 100.0% $123,361
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $114,239
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $28,131
Unrealized Depreciation.................. (580)
-------
Unrealized Appreciation (Depreciation)... $27,551
=======
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at in March 31,
2006 thousands was $20,114.
(c)This security was purchased with cash collateral held
from securities lending.
See Notes to Financial Statements.
71
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP GROWTH STOCK FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (97.3%)
CONSUMER DISCRETIONARY (14.1%)
Aaron Rents, Inc. 385,000 10,460
bebe stores, Inc. 285,000 5,250
Carter's, Inc. * 160,000 10,798
Cavco Industries, Inc. * 150,000 7,289
Champion Enterprises,
Inc. * (b) 665,000 9,948
Children's Place Retail
Stores, Inc. (The) *
(b) 160,000 9,264
Coldwater Creek, Inc. *
(b) 310,000 8,618
Conn's, Inc. * (b) 210,000 7,174
Craftmade International,
Inc. 170,100 3,145
Dover Downs Gaming &
Entertainment, Inc. 175,000 3,810
Dress Barn, Inc. (The) *
(b) 215,000 10,309
Escala Group, Inc. * (b) 43,672 1,144
Ethan Allen Interiors,
Inc. (b) 200,000 8,404
Genesco, Inc. * (b) 255,000 9,917
Gottschalks, Inc. * 220,300 2,018
Jos. A. Bank Clothiers,
Inc. * (b) 336,250 16,123
Luby's, Inc. * 445,000 5,558
Orange 21, Inc. * 471,910 2,100
Panera Bread Co., Cl A *
(b) 160,000 12,029
PetMed Express, Inc. *
(b) 375,311 6,669
Phillips-Van Heusen
Corp. 315,000 12,036
Priceline.com, Inc. * (b) 395,000 9,812
RARE Hospitality
International, Inc. *
(b) 185,284 6,453
Rocky Shoes & Boots, Inc.
* (b) 265,000 6,996
Scientific Games Corp. *
(b) 80,000 2,810
Sonic Corp. * (b) 159,240 5,594
Speedway Motorsports,
Inc. 70,000 2,675
Sportsman's Guide, Inc.
(The) * 225,000 5,960
Steiner Leisure Ltd. *
(b) 235,000 9,518
Steven Madden Ltd. 155,899 5,534
Stride Rite Corp. (The) 445,000 6,444
Too, Inc. * 385,000 13,225
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CONSUMER DISCRETIONARY--CONTINUED
Warnaco Group, Inc. (The)
* 290,000 6,960
Yankee Candle Co., Inc.
(The) 52,712 1,443
----------
245,487
----------
CONSUMER STAPLES (2.2%)
Central European
Distribution Corp. *
(b) 210,000 8,075
Chattem, Inc. * (b) 265,000 9,976
Corn Products
International, Inc. 279,470 8,264
Overhill Farms, Inc. *
(d)(e) 1,155,000 3,337
Parlux Fragrances, Inc. *
(b) 290,015 9,353
----------
39,005
----------
ENERGY (3.0%)
Atwood Oceanics, Inc. *
(b) 50,000 5,051
Core Laboratories NV * 140,000 6,657
Helix Energy Solutions
Group, Inc. * (b) 205,000 7,770
Hornbeck Offshore
Services, Inc. * 95,000 3,427
Oceaneering
International, Inc. * 63,000 3,610
Superior Energy Services,
Inc. * (b) 313,200 8,390
TETRA Technologies, Inc.
* 135,000 6,350
TODCO, Cl A (b) 190,000 7,488
Unit Corp. * 49,800 2,776
----------
51,519
----------
FINANCIALS (7.8%)
American Safety Insurance
Holdings Ltd. * 125,000 2,089
Arch Capital Group Ltd. * 135,100 7,801
Central Pacific Financial
Corp. 125,000 4,590
Corus Bankshares, Inc.
(b) 95,000 5,647
Doral Financial Corp. (b) 475,000 5,486
Downey Financial Corp. 65,570 4,413
Encore Capital Group,
Inc. * (b) 165,100 2,435
Euronet Worldwide, Inc. *
(b) 190,000 7,188
First BanCorp (b) 385,000 4,759
</Table>
See Notes to Financial Statements.
72
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP GROWTH STOCK FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
First Citizens
BancShares, Inc., Cl A 34,736 6,704
FPIC Insurance Group,
Inc. * (b) 130,000 4,914
Franklin Bank Corp. * 181,835 3,497
Infinity Property &
Casualty Corp. 209,300 8,736
LandAmerica Financial
Group, Inc. 40,000 2,714
Nara Bankcorp, Inc. 170,000 2,984
Phoenix Cos., Inc. (The) 385,000 6,276
Piper Jaffray Cos. * 160,600 8,832
RLI Corp. 109,453 6,272
Selective Insurance
Group, Inc. (b) 180,000 9,539
South Financial Group,
Inc. (The) (b) 175,000 4,576
Susquehanna Bancshares,
Inc. 173,185 4,463
Triad Guaranty, Inc. * 96,095 4,507
United Community Banks,
Inc. 60,000 1,689
W Holding Co., Inc. 855,000 6,729
Zenith National Insurance
Corp. 190,000 9,144
----------
135,984
----------
HEALTH CARE (16.8%)
Allion Healthcare, Inc. * 245,000 3,322
Amedisys, Inc. * (b) 220,000 7,645
American Retirement Corp.
* (b) 225,632 5,781
AMICAS, Inc. * 1,090,000 5,145
Arena Pharmaceuticals,
Inc. * (b) 715,000 12,949
Aspect Medical Systems,
Inc. * (b) 429,800 11,794
Bentley Pharmaceuticals,
Inc. * (b) 515,604 6,780
Chemed Corp. 135,000 8,011
Cubist Pharmaceuticals,
Inc. * (b) 359,000 8,246
Datascope Corp. 110,000 4,352
DJ Orthopedics, Inc. * 180,000 7,157
Drugmax, Inc. * (d) 2,603,000 2,030
Hi-Tech Pharmacal Co.,
Inc. * 335,000 9,447
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Hologic, Inc. * (b) 195,000 10,793
ICU Medical, Inc. * (b) 95,000 3,438
Illumina, Inc. * (b) 190,000 4,513
IRIS International, Inc.
* (b) 195,000 3,048
Kendle International,
Inc. * 249,153 8,421
LHC Group, Inc. * 265,600 4,250
LifeCell Corp. * (b) 425,000 9,584
Matria Healthcare, Inc. *
(b) 95,000 3,606
Meridian Bioscience,
Inc. 320,000 8,634
Molecular Devices Corp. *
(b) 250,000 8,290
Natus Medical, Inc. * (b) 510,000 10,455
Palomar Medical
Technologies, Inc. *
(b) 360,000 12,042
PDL BioPharma, Inc. * (b) 470,000 15,416
Per-Se Technologies, Inc.
* (b) 460,000 12,264
Providence Service Corp.
(The) * (b) 254,196 8,266
Res-Care, Inc. * 230,000 4,227
Serologicals Corp. * (b) 470,000 11,496
SurModics, Inc. * (b) 340,000 12,022
Third Wave Technologies,
Inc. * 840,000 2,629
TriPath Imaging, Inc. * 665,618 4,646
TriZetto Group, Inc. *
(b) 370,000 6,508
United Therapeutics Corp.
* 165,000 10,936
Ventiv Health, Inc. * (b) 410,000 13,620
ViroPharma, Inc. * (b) 480,000 6,096
West Pharmaceutical
Services, Inc. 96,570 3,353
----------
291,212
----------
INDUSTRIALS (17.3%)
A.S.V., Inc. * (b) 295,305 9,515
AirTran Holdings, Inc. *
(b) 371,000 6,719
Barrett Business
Services, Inc. * 247,097 6,672
Brady Corp., Cl A 190,000 7,117
BTU International, Inc. * 268,158 4,406
Builders FirstSource,
Inc. * 385,000 8,743
CBIZ, Inc. * 694,348 5,555
Ceradyne, Inc. * (b) 195,000 9,731
</Table>
See Notes to Financial Statements.
73
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP GROWTH STOCK FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
Columbus McKinnon Corp. *
(b) 265,000 7,136
Copart, Inc. * 370,000 10,157
Corrections Corp. of
America * (b) 236,000 10,666
Dycom Industries, Inc. *
(b) 30,062 639
EDO Corp. (b) 255,000 7,867
ElkCorp 250,000 8,438
EMCOR Group, Inc. * (b) 136,950 6,801
Encore Wire Corp. * (b) 115,000 3,896
Esterline Technologies
Corp. * 220,000 9,405
Flow International Corp.
* (d) 1,370,000 18,042
Gardner Denver, Inc. * 105,000 6,846
General Cable Corp. * (b) 405,000 12,283
Genlyte Group, Inc. (The)
* 210,000 14,308
Gevity HR, Inc. 195,000 4,770
Griffon Corp. * 290,000 7,204
Herman Miller, Inc. 250,000 8,103
Hub Group, Inc., Cl A * 28,171 1,284
Insituform Technologies,
Inc., Cl A * (b) 288,628 7,678
Labor Ready, Inc. * 275,000 6,586
Marten Transport Ltd. * 222,500 4,025
Mobile Mini, Inc. * (b) 290,000 8,967
Mueller Industries, Inc. 205,000 7,316
NCI Building Systems,
Inc. * (b) 170,000 10,161
Pacer International, Inc.
(b) 280,000 9,150
Power-One, Inc. * 762,100 5,487
PW Eagle, Inc. (b) 74,164 2,062
Simpson Manufacturing
Co., Inc. 156,875 6,793
TAL International Group,
Inc. * 75,000 1,808
Toro Co. (The) 190,000 9,073
Ultralife Batteries, Inc.
* (b) 360,000 4,626
Universal Truckload
Services, Inc. * 155,000 3,883
Wabtec Corp. 325,000 10,595
Woodward Governor Co. 195,000 6,484
----------
300,997
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY (31.8%)
@Road, Inc. * 1,585,889 8,040
24/7 Real Media, Inc. * 195,253 2,042
Access Integrated
Technologies, Inc., Cl
A * (b) 379,873 4,881
Actuate Corp. * 1,302,972 5,538
Advanced Energy
Industries, Inc. * (b) 275,000 3,886
Aeroflex, Inc. * 897,525 12,323
ANADIGICS, Inc. * (b) 801,088 6,329
Ansoft Corp. * 155,000 6,462
ANSYS, Inc. * 170,000 9,206
Art Technology Group,
Inc. * 955,000 3,066
Atmel Corp. * (b) 370,000 1,746
ATMI, Inc. * 130,000 3,926
Avocent Corp. * 190,000 6,031
Black Box Corp. 215,000 10,331
Blackboard, Inc. * 340,000 9,659
Bottomline Technologies
(de), Inc. * 775,000 10,641
CalAmp Corp. * 484,544 5,689
Carrier Access Corp. * 181,453 1,092
Checkpoint Systems, Inc.
* (b) 280,000 7,526
Cirrus Logic, Inc. * 615,000 5,215
Click Commerce, Inc. *
(b) 465,000 11,132
Comtech Group, Inc. * 370,000 3,700
Credence Systems Corp. *
(b) 670,000 4,918
Cree, Inc. * (b) 325,000 10,663
Cymer, Inc. * (b) 199,420 9,062
Cypress Semiconductor
Corp. * (b) 455,000 7,712
Ditech Communications
Corp. * 560,000 5,852
eCollege.com * (b) 260,000 4,898
EFJ, Inc. * 63,965 690
Entrust, Inc. * 1,240,000 5,580
Epicor Software Corp. *
(b) 398,100 5,346
FEI Co. * (b) 275,000 5,459
Hutchinson Technology,
Inc. * (b) 210,000 6,336
Hyperion Solutions Corp.
* 95,000 3,097
InfoCrossing, Inc. * (b) 520,000 6,266
</Table>
See Notes to Financial Statements.
74
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP GROWTH STOCK FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Integrated Device
Technology, Inc. * 470,000 6,984
Ituran Location & Control
Ltd. 405,540 6,136
Kopin Corp. * 1,050,374 5,262
Liveperson, Inc. * 650,000 4,706
Magma Design Automation,
Inc. * (b) 272,112 2,354
Merge Technologies, Inc.
* (b) 138,532 2,212
Metrologic Instruments,
Inc. * 361,066 8,351
Micrel, Inc. * (b) 370,000 5,483
MIPS Technologies, Inc. * 487,068 3,634
Moldflow Corp. * 313,900 4,928
Multi-Fineline
Electronix, Inc. * (b) 40,000 2,340
Neoware Systems, Inc. *
(b) 330,000 9,775
Netlogic Microsystems,
Inc. * (b) 253,544 10,449
NICE Systems Ltd. * 245,000 12,485
Nuance Communications,
Inc. * 519,201 6,132
O2Micro International
Ltd., ADR * 405,000 4,305
Orbotech Ltd. * 225,000 5,542
Orckit Communications
Ltd. * 240,000 5,275
Packeteer, Inc. * 350,000 4,060
Park Electrochemical
Corp. 240,000 7,080
Performance Technologies,
Inc. * 500,000 3,750
Photronics, Inc. * (b) 350,000 6,566
Portalplayer, Inc. * (b) 220,000 4,891
Power Integrations, Inc.
* (b) 242,126 6,000
Presstek, Inc. * (b) 746,745 8,886
Quest Software, Inc. *
(b) 465,000 7,766
Radiant Systems, Inc. *
(b) 632,299 8,549
Radvision Ltd. * 510,000 9,104
Radyne ComStream, Inc. * 539,700 8,619
RealNetworks, Inc. * (b) 420,000 3,465
Rogers Corp. * (b) 136,917 7,459
Secure Computing Corp. *
(b) 460,000 5,308
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Semtech Corp. * (b) 390,000 6,977
SM&A * 400,000 2,600
SonicWALL, Inc. * 480,000 3,403
Standard Microsystems
Corp. * 65,000 1,689
Stellent, Inc. 540,000 6,404
Sunair Services Corp. * 1,000,000 5,000
TALX Corp. 220,000 6,266
Technitrol, Inc. 133,499 3,201
Tekelec * (b) 430,000 5,947
Tollgrade Communications,
Inc. * 485,000 7,217
Transaction Systems
Architects, Inc. * (b) 280,000 8,739
Trimble Navigation Ltd. *
(b) 265,000 11,938
TTM Technologies, Inc. *
(b) 510,000 7,390
Ultimate Software Group,
Inc. (The) * 455,000 11,762
ValueClick, Inc. * (b) 570,000 9,644
VASCO Data Security
International, Inc. *
(b) 520,000 4,254
webMethods, Inc. * 1,205,000 10,146
Websense, Inc. * (b) 365,000 10,067
WebSideStory, Inc. * 362,606 6,233
Westell Technologies,
Inc., Cl A * 843,716 3,434
Xyratex Ltd. * 190,517 6,001
----------
550,508
----------
MATERIALS (4.3%)
A. Schulman, Inc. 265,000 6,559
Aleris International,
Inc. * (b) 240,000 11,537
AMCOL International Corp.
(b) 124,255 3,579
Carpenter Technology
Corp. 135,000 12,759
Foundation Coal Holdings,
Inc. 238,600 9,816
Gibraltar Industries,
Inc. 118,800 3,500
Headwaters, Inc. * (b) 185,000 7,361
PolyOne Corp. * (b) 375,000 3,495
</Table>
See Notes to Financial Statements.
75
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP GROWTH STOCK FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MATERIALS--CONTINUED
Silgan Holdings, Inc. 120,000 4,820
Texas Industries, Inc.
(b) 200,000 12,098
----------
75,524
----------
Total Common Stocks (Cost
$1,316,614) 1,690,236
----------
WARRANT (0.0%)
HEALTH CARE (0.0%)
Drugmax, Inc. * 1,301,500 0
----------
INFORMATION TECHNOLOGY (0.0%)
InfoCrossing, Inc. *(e) 139,109 583
----------
TELECOMMUNICATION SERVICES (0.0%)
Sunair Services Corp. (d) 350,000 0
----------
Total Warrant (Cost $169) 583
----------
SHORT-TERM INVESTMENT (27.8%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 482,460,076 482,460
----------
Total Short-Term Investment
(Cost $482,460) 482,460
----------
REPURCHASE AGREEMENTS (2.8%)
BNP Paribas, 4.655%,
dated 03/31/06 to be
repurchased 04/03/06,
repurchase price
$22,325,637
(collateralized by U.S.
Government Agencies,
2.875%, due 12/15/06;
total market value
$22,763,957) 22,317 22,317
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Lehman Brothers, Inc.,
4.755%, dated 03/31/06,
to be repurchased
04/03/06, repurchase
price $25,643,794
(collateralized by U.S.
Government Obligations
DN, due 12/01/34; total
market value
$26,148,390) 25,634 25,634
----------
Total Repurchase Agreements
(Cost $47,951) 47,951
----------
Total Investments
(Cost $1,847,194)
(a) -- 127.9% 2,221,230
Liabilities in excess of
other assets -- (27.9)% (483,411)
----------
Net Assets -- 100.0% $1,737,819
==========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $1,850,633
(amount in thousands). Unrealized appreciation/
(depreciation) on a tax basis is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $407,324
Unrealized Depreciation................. (37,227)
--------
Unrealized Appreciation
(Depreciation)........................ $370,097
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $467,161.
(c)This security was purchased with cash collateral held
from securities lending.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)Valued at fair value using methods determined by the
Board. As of March 31, 2006, collectively these securities represented 0.23%
of net assets.
ADR -- American Depository Receipt
Cl -- Class
DN -- Discount Note
See Notes to Financial Statements.
76
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP VALUE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (98.8%)
CONSUMER DISCRETIONARY (20.3%)
ADESA, Inc. 265,069 7,088
Applebee's International,
Inc. 411,100 10,093
Bassett Furniture
Industries, Inc. 216,300 4,315
bebe stores, Inc. (b) 561,300 10,339
Benetton Group SpA ADR 206,200 6,134
Borders Group, Inc. 322,700 8,145
BorgWarner, Inc. 96,800 5,812
CKE Restaurants, Inc. (b) 537,200 9,347
Cobra Electronics Corp. * 194,400 2,059
Courier Corp. 79,500 3,525
Group 1 Automotive, Inc. 192,500 9,151
International Speedway Corp. 158,600 8,073
Intrawest Corp. 60,800 2,079
K-Swiss, Inc., Cl A 275,467 8,303
Lithia Motors, Inc. 248,800 8,633
Makita Corp. ADR 341,954 10,450
Media General, Inc., Cl A 126,400 5,893
Meredith Corp. 107,900 6,020
Movado Group, Inc. 457,800 10,566
Natuzzi SpA ADR 427,500 3,121
SCP Pool Corp. 131,100 6,150
Stanley Furniture Co., Inc. 76,900 2,249
United Auto Group, Inc. (b) 136,300 5,861
Winnebago Industries, Inc.
(b) 212,400 6,444
World Wrestling
Entertainment, Inc. 302,900 5,119
---------
164,969
---------
CONSUMER STAPLES (3.1%)
Church & Dwight Co., Inc.
(b) 333,350 12,308
Corn Products International,
Inc. 136,800 4,045
Ingles Markets, Inc., Cl A 82,400 1,468
J.M. Smucker Co. (The) 195,243 7,751
---------
25,572
---------
ENERGY (4.6%)
CARBO Ceramics, Inc. (b) 76,100 4,331
CHC Helicopter Corp., Cl A 715,200 18,202
Maritrans, Inc. 121,700 2,973
Tidewater, Inc. (b) 154,500 8,533
Ultrapar Participacoes SA
ADR 207,700 3,689
---------
37,728
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS (16.6%)
American Financial Group,
Inc. (b) 180,500 7,511
Bank of Hawaii Corp. 109,100 5,816
BankAtlantic Bancorp, Inc.
(b) 411,400 5,920
Banner Corp. 102,600 3,488
Capital Corp. of the West 55,800 2,049
City National Corp. 78,600 6,036
Cohen & Steers, Inc. 341,130 8,358
Desert Community Bank 36,600 1,471
Federal Agricultural
Mortgage Corp., Cl C 80,189 2,359
First Republic Bank * 261,300 9,882
Glacier Bancorp, Inc. (b) 206,232 6,404
HCC Insurance Holdings, Inc.
(b) 371,650 12,933
Horizon Financial Corp. 230,106 5,882
Hub International Ltd. 547,700 15,346
International Bancshares
Corp. 127,400 3,660
Jefferies Group, Inc. 104,200 6,096
National Interstate Corp. 117,379 2,553
Seacoast Banking Corp. of
Florida 215,700 6,279
StanCorp Financial Group,
Inc. 199,400 10,790
Washington Federal, Inc. 231,404 5,600
West Coast Bancorp 226,953 6,343
---------
134,776
---------
HEALTH CARE (4.0%)
Ansell Ltd. ADR 108,200 3,533
Cooper Cos., Inc. (The) (b) 295,000 15,938
PerkinElmer, Inc. 260,200 6,107
Perrigo Co. (b) 442,400 7,216
---------
32,794
---------
INDUSTRIALS (31.3%)
ABM Industries, Inc. 187,100 3,587
American Ecology Corp. (b) 307,500 6,267
Apogee Enterprises, Inc. 187,500 3,165
Briggs & Stratton Corp. (b) 148,500 5,252
Brink's Co. (The) 227,500 11,548
Deluxe Corp. (b) 242,500 6,346
Donaldson Co., Inc. 178,600 6,035
DRS Technologies, Inc. (b) 37,400 2,052
ElkCorp (b) 161,100 5,437
Forward Air Corp. 280,411 10,457
Freightcar America, Inc. 90,800 5,775
</Table>
See Notes to Financial Statements.
77
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP VALUE EQUITY FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
Gol Linhas Aereas
Inteligentes SA ADR 231,492 6,204
Graco, Inc. (b) 569,200 25,860
Granite Construction, Inc. 250,500 12,194
Grupo Aeroportuario del
Pacifico SA de CV ADR * 500,000 15,975
Heartland Express, Inc. 380,100 8,282
Lan Airlines SA ADR 149,400 5,855
Lennox International, Inc.
(b) 309,189 9,232
LSI Industries, Inc. 508,487 8,665
McGrath Rentcorp 239,600 7,202
Mine Safety Appliances Co.
(b) 191,083 8,025
MSC Industrial Direct Co.,
Inc., Cl A 123,700 6,682
Multi-Color Corp. * 84,800 2,548
Oshkosh Truck Corp. (b) 105,800 6,585
Portec Rail Products, Inc. 151,327 2,377
Quixote Corp. 401,820 9,945
Ryder System, Inc. 177,700 7,957
Simpson Manufacturing Co.,
Inc. 149,900 6,491
Supreme Industries, Inc., Cl
A 81,405 605
Valmont Industries, Inc. 200,700 8,437
Wabtec Corp. 499,400 16,281
Walter Industries, Inc. (b) 193,400 12,884
---------
254,207
---------
INFORMATION TECHNOLOGY (8.0%)
Diebold, Inc. (b) 187,900 7,723
Factset Research Systems,
Inc. (b) 245,200 10,875
Harris Corp. 261,956 12,387
Jack Henry & Associates,
Inc. (b) 526,400 12,038
Keithley Instruments, Inc. 260,600 4,003
Nam Tai Electronics, Inc. 266,500 6,106
Reynolds & Reynolds Co.
(The), Cl A 289,694 8,227
Woodhead Industries, Inc. 201,900 3,352
---------
64,711
---------
MATERIALS (8.4%)
Aber Diamond Corp 9,800 397
Agnico-Eagle Mines Ltd. 433,500 13,200
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MATERIALS--CONTINUED
Airgas, Inc. 524,688 20,510
Foundation Coal Holdings,
Inc. 233,200 9,594
RPM International, Inc. ADR 418,600 7,510
Scotts Miracle-Gro Co.
(The), Cl A 165,500 7,573
Valspar Corp. (The) 349,200 9,732
---------
68,516
---------
UTILITIES (2.5%)
Companhia de Saneamento
Basico ADR (b) 570,900 12,566
PNM Resources, Inc. (b) 334,100 8,152
---------
20,718
---------
Total Common Stocks (Cost
$569,122) 803,991
---------
SHORT-TERM INVESTMENT (12.6%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (c) 102,612,350 102,612
---------
Total Short-Term Investment
(Cost $102,612) 102,612
---------
REPURCHASE AGREEMENT (1.0%)
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $7,883,109
(collateralized by U.S.
Government Agencies, DN, due
12/31/34; total market value
$8,039,279) 7,880 7,880
---------
Total Repurchase Agreement
(Cost $7,880) 7,880
---------
Total Investments (Cost
$679,614) (a) -- 112.4% 914,483
Liabilities in excess of other
assets -- (12.4)% (101,069)
---------
Net Assets -- 100.0% $ 813,414
=========
</Table>
- ---------------
* Non-income producing security.
See Notes to Financial Statements.
78
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SMALL CAP VALUE EQUITY FUND -- CONCLUDED
(a)Cost for federal income tax purposes is $679,704
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $241,826
Unrealized Depreciation.................. (7,047)
--------
Unrealized Appreciation (Depreciation)... $234,779
========
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $99,514.
(c)This security was purchased with cash collateral held
from securities lending.
ADR -- American Depository Receipt
Cl -- Class
DN -- Discount Note
See Notes to Financial Statements.
79
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC QUANTITATIVE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (99.1%)
CONSUMER DISCRETIONARY (10.5%)
Bed Bath & Beyond, Inc. * 44,747 1,718
Best Buy Co., Inc. 32,045 1,792
Centex Corp. 27,824 1,725
Circuit City Stores, Inc. 72,240 1,768
Coach, Inc. * 50,255 1,738
Costco Wholesale Corp. 37,915 2,054
D. R. Horton, Inc. 52,463 1,743
Darden Restaurants, Inc. 42,805 1,756
Home Depot, Inc. (The) 41,421 1,752
Lowe's Cos., Inc. 27,277 1,758
News Corp., Cl A 106,173 1,764
NIKE, Inc., Cl B 20,652 1,757
Nordstrom, Inc. 44,262 1,734
Office Depot, Inc. * 47,342 1,763
OfficeMax, Inc. 57,820 1,744
Pulte Homes, Inc. 45,231 1,738
Starbucks Corp. * 46,774 1,761
--------
30,065
--------
CONSUMER STAPLES (6.4%)
Alberto-Culver Co. 46,447 2,054
Anheuser-Busch Cos., Inc. 48,065 2,056
Constellation Brands, Inc., Cl
A * 82,230 2,060
General Mills, Inc. 40,620 2,059
Pepsi Bottling Group, Inc.
(The) 67,579 2,054
PepsiCo, Inc. 35,377 2,044
Procter & Gamble Co. (The) 35,672 2,055
SUPERVALU, Inc. 66,680 2,055
Wal-Mart Stores, Inc. 43,048 2,034
--------
18,471
--------
ENERGY (12.4%)
Amerada Hess Corp. 31,610 4,502
Apache Corp. 67,781 4,440
Chevron Corp. 77,072 4,468
ConocoPhillips 69,936 4,416
Exxon Mobil Corp. 73,780 4,491
Marathon Oil Corp. 58,557 4,460
Occidental Petroleum Corp. 47,841 4,432
Valero Energy Corp. 74,759 4,469
--------
35,678
--------
FINANCIALS (23.6%)
ACE Ltd. 92,544 4,813
Ambac Financial Group, Inc. 60,803 4,840
Bear Stearns & Co., Inc. 34,892 4,840
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FINANCIALS--CONTINUED
Capital One Financial Corp. 59,713 4,808
Chubb Corp. (The) 50,521 4,822
CIT Group, Inc. 90,142 4,824
Countrywide Financial Corp. 135,165 4,961
Goldman Sachs Group, Inc.
(The) 30,892 4,849
Lehman Brothers Holdings,
Inc. 33,748 4,878
Lincoln National Corp. 89,775 4,901
Merrill Lynch & Co., Inc. 61,735 4,862
MetLife, Inc. * 99,389 4,807
Morgan Stanley 75,932 4,770
SAFECO Corp. 94,926 4,766
--------
67,741
--------
HEALTH CARE (14.1%)
AmerisourceBergen Corp. 77,339 3,734
Becton, Dickinson & Co. 59,711 3,677
C.R. Bard, Inc. 54,232 3,677
Express Scripts, Inc. * 41,988 3,691
King Pharmaceuticals, Inc. * 213,387 3,681
Medtronic, Inc. 71,612 3,634
Merck & Co., Inc. 103,727 3,654
Thermo Electron Corp. * 99,561 3,693
UnitedHealth Group, Inc. 65,655 3,667
Waters Corp. * 85,741 3,700
WellPoint, Inc. * 47,840 3,704
--------
40,512
--------
INDUSTRIALS (12.8%)
Allied Waste Industries, Inc.
* 255,153 3,124
Boeing Co. (The) 38,849 3,028
Burlington Northern Santa Fe
Corp. 36,657 3,055
CSX Corp. 50,792 3,037
Emerson Electric Co. 36,316 3,037
FedEx Corp. 27,333 3,087
Lockheed Martin Corp. 40,496 3,042
Norfolk Southern Corp. 56,627 3,062
Northrop Grumman Corp. 44,684 3,051
Southwest Airlines Co. 171,057 3,077
Union Pacific Corp. 32,879 3,069
Waste Management, Inc. 87,293 3,081
--------
36,750
--------
INFORMATION TECHNOLOGY (18.2%)
Advanced Micro Devices, Inc. * 111,357 3,693
Apple Computer, Inc. * 59,609 3,739
</Table>
See Notes to Financial Statements.
80
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC QUANTITATIVE EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Applied Micro Circuits Corp. * 910,090 3,704
Broadcom Corp., Cl A * 86,126 3,717
Citrix Systems, Inc. * 102,059 3,867
Comverse Technology, Inc. * 160,673 3,781
Freescale Semiconductor, Inc.,
Cl B * 133,175 3,698
Hewlett-Packard Co. 114,844 3,778
Molex, Inc. 113,935 3,783
National Semiconductor Corp. 133,113 3,706
NVIDIA Corp. * 65,086 3,727
Tektronix, Inc. 106,384 3,799
Tellabs, Inc. * 234,512 3,729
Teradyne, Inc. * 238,550 3,700
--------
52,421
--------
MATERIALS (1.1%)
Rohm & Haas Co. 62,725 3,065
--------
Total Common Stocks
(Cost $270,801) 284,703
--------
REPURCHASE AGREEMENT (0.7%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $2,015,697
(collateralized by U.S.
Government Agencies; 5.500%,
02/01/35; total market value
$2,059,090) 2,014,904 2,015
--------
Total Repurchase Agreement
(Cost $2,015) 2,015
--------
Total Investments
(Cost $272,816) (a) -- 99.8% 286,718
Other assets in excess of
liabilities -- 0.2% 708
--------
Net Assets -- 100.0% $287,426
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $273,882
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $16,826
Unrealized Depreciation................. (3,990)
-------
Unrealized Appreciation
(Depreciation)........................ $12,836
=======
</Table>
Cl -- Class
See Notes to Financial Statements.
81
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
BALANCED FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMMON STOCKS (56.1%)
CONSUMER DISCRETIONARY (10.0%)
Advance Auto Parts, Inc. 12,900 537
Dow Jones & Co., Inc. (b) 22,700 892
Harley-Davidson, Inc. 25,800 1,339
Home Depot, Inc. (The) (b) 32,100 1,358
Lowe's Cos., Inc. 27,700 1,784
Marriott International, Inc.,
Cl A 10,000 686
New York Times Co. (The), Cl
A (b) 22,400 567
NIKE, Inc., Cl B (b) 9,700 825
TJX Cos., Inc. (The) (b) 55,000 1,365
Univision Communications,
Inc., Cl A * 21,600 745
Walt Disney Co. (The) 17,700 494
--------
10,592
--------
CONSUMER STAPLES (2.0%)
Colgate-Palmolive Co. 15,700 897
Estee Lauder Cos., Inc.
(The), Cl A 12,900 480
Wal-Mart Stores, Inc. 16,500 779
--------
2,156
--------
ENERGY (3.1%)
Anadarko Petroleum Corp. 8,000 808
Exxon Mobil Corp. 41,000 2,495
--------
3,303
--------
FINANCIALS (9.8%)
American Express Co. 25,800 1,355
American International Group,
Inc. 14,100 932
Chubb Corp. (The) 12,600 1,203
Goldman Sachs Group, Inc.
(The) 7,000 1,099
JPMorgan Chase & Co. 25,000 1,041
Merrill Lynch & Co., Inc. 15,400 1,213
MGIC Investment Corp. 20,200 1,346
SLM Corp. 23,000 1,195
Wells Fargo & Co. 15,600 996
--------
10,380
--------
HEALTH CARE (9.8%)
AmerisourceBergen Corp. (b) 17,200 830
Amgen, Inc. * 8,600 626
Baxter International, Inc. 35,200 1,366
Becton, Dickinson & Co. 30,900 1,902
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Forest Laboratories, Inc. * 21,400 955
Health Management Associates,
Inc., Cl A 47,300 1,020
Pfizer, Inc. 60,500 1,508
Quest Diagnostics, Inc. 19,000 975
Schering-Plough Corp. 29,000 551
Universal Health Services,
Inc., Cl B 12,700 645
--------
10,378
--------
INDUSTRIALS (10.5%)
Danaher Corp. 23,000 1,462
Emerson Electric Co. 10,800 903
General Electric Co. 30,300 1,054
Honeywell International, Inc. 33,700 1,441
Illinois Tool Works, Inc. 13,800 1,329
Lockheed Martin Corp. 6,700 503
Raytheon Co. 20,000 917
Union Pacific Corp. 6,200 579
United Parcel Service,
Inc., Cl B 15,300 1,215
Waste Management, Inc. 48,200 1,701
--------
11,104
--------
INFORMATION TECHNOLOGY (9.5%)
Analog Devices, Inc. 18,100 693
Automatic Data Processing,
Inc. 25,000 1,142
CheckFree Corp. * (b) 25,000 1,263
Cisco Systems, Inc. * 35,000 758
Comverse Technology, Inc. * 30,500 718
International Business
Machines Corp. 17,000 1,402
Maxim Integrated Products,
Inc. 19,500 724
Microsoft Corp. 65,300 1,778
Oracle Corp. * 27,500 376
Paychex, Inc. 29,200 1,216
--------
10,070
--------
MATERIALS (0.6%)
Rohm & Haas Co. 13,700 670
--------
TELECOMMUNICATION SERVICES (0.8%)
AT&T, Inc. (b) 32,500 879
--------
Total Common Stocks (Cost
$50,432) 59,532
--------
</Table>
See Notes to Financial Statements.
82
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
BALANCED FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CORPORATE BONDS (7.1%)
AEROSPACE & DEFENSE (0.1%)
United Technologies Corp.,
4.875%, 05/01/15 125 119
--------
AIRLINES (0.1%)
Southwest Airlines Co.,
5.125%, 03/01/17 140 130
--------
BANKS (0.2%)
Bank of America Corp.,
7.400%, 01/15/11 210 227
--------
CONSUMER STAPLES (0.2%)
Avon Products, Inc.,
5.125%, 01/15/11 225 221
--------
DIVERSIFIED FINANCIAL SERVICES (1.9%)
CIT Group, Inc.,
5.125%, 09/30/14 130 124
Citigroup, Inc.,
5.125%, 05/05/14 60 58
Citigroup, Inc.,
5.850%, 12/11/34 60 59
ERAC USA Finance Co.,
5.600%, 05/01/15 (d) 165 161
Fund American Cos., Inc.,
5.875%, 05/15/13 335 330
Goldman Sachs Group, Inc.
(The),
4.750%, 07/15/13 280 265
HSBC Holdings PLC,
7.625%, 05/17/32 105 124
International Lease Finance
Corp., Ser Q,
5.250%, 01/10/13 85 83
John Deere Capital Corp.,
3.900%, 01/15/08 65 63
JPMorgan Chase & Co.,
6.625%, 03/15/12 310 326
Lazard Group LLC, 7.125%,
05/15/15 230 239
Morgan Stanley, 5.300%,
03/01/13 180 176
--------
2,008
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ELECTRIC (0.5%)
Exelon Corp., 4.900%,
06/15/15 195 181
Exelon Corp., 5.625%,
06/15/35 (b) 190 172
Pacific Gas & Electric Co.,
6.050%, 03/01/34 195 191
--------
544
--------
ENTERTAINMENT (0.2%)
GTECH Holdings Corp., 4.750%,
10/15/10 270 263
--------
HEALTH CARE (0.1%)
Teva Pharmaceutical Finance
LLC, 5.550%, 02/01/16 60 58
Teva Pharmaceutical Finance
LLC, 6.150%, 02/01/36 40 38
--------
96
--------
INFORMATION TECHNOLOGY (0.3%)
Comcast Corp., 4.950%,
06/15/16 180 164
Comcast Corp., 6.450%,
03/15/37 110 106
--------
270
--------
INSURANCE (0.0%)
Metlife, Inc., 5.700%,
06/15/35 35 33
--------
INVESTMENT COMPANIES (0.1%)
Credit Suisse First Boston
USA, Inc., 6.500%, 01/15/12 70 73
--------
MEDIA (0.2%)
Cox Communications, Inc.,
4.625%, 06/01/13 95 87
News America, Inc., 6.200%,
12/15/34 105 98
Time Warner, Inc., 7.625%,
04/15/31 70 76
--------
261
--------
MINING (0.1%)
Alcan, Inc., 5.750%, 06/01/35 70 65
--------
MISCELLANEOUS MANUFACTURER (0.5%)
General Electric Co., 5.000%,
02/01/13 495 481
--------
</Table>
See Notes to Financial Statements.
83
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
BALANCED FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OIL & GAS (0.2%)
Devon Financing Corp. ULC,
7.875%, 09/30/31 130 157
Enterprise Products Operating
LP, Ser B, 5.750%, 03/01/35 110 98
--------
255
--------
PIPELINES (0.2%)
CenterPoint Energy Resources
Corp., Ser B, 7.875%,
04/01/13 90 100
Kinder Morgan, Inc., 6.400%,
01/05/36 130 127
--------
227
--------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 55 56
--------
RETAIL (0.5%)
Federated Department Stores,
Inc., 6.900%, 04/01/29 55 57
Woolworths Ltd., 5.550%,
11/15/15 (d) 435 424
--------
481
--------
TELECOMMUNICATIONS (1.6%)
AT&T, Inc., 5.100%, 09/15/14 440 417
BellSouth Corp., 5.200%,
09/15/14 330 316
Cisco Systems Inc., 5.500%,
02/22/16 260 256
Telecom Italia SpA, 5.250%,
10/01/15 325 302
Verizon Communications, Inc.,
5.850%, 09/15/35 110 99
Vodafone Group PLC, 5.500%,
06/15/11 330 327
--------
1,717
--------
Total Corporate Bonds
(Cost $7,721) 7,527
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FIXED INCOME SECURITIES (1.8%)
AUTOMOBILE ABS (0.3%)
Daimler Chrysler Auto Trust,
Ser 2005-A, Cl A4, 3.740%,
02/08/10 225 219
Honda Auto Receivables Owner
Trust, Ser 2006-1, Cl A3,
5.070%, 09/18/09 140 140
--------
359
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.5%)
Banc of America Commercial
Mortgage, Inc., Ser 2004-4,
Cl A3, 4.128%, 07/10/42 195 188
Citigroup/Deutsche Bank
Commercial Mortgage Trust,
Ser 2005-CD1, Cl A4,
5.225%, 07/15/44 (e) 345 338
Citigroup/Deutsche Bank
Commercial Mortgage Trust,
Ser 2006-CD2, Cl A4,
5.545%, 01/15/46 (e) 220 217
GE Capital Commercial
Mortgage Corp.,
Ser 2006-C1, Cl A4,
5.5185%, 03/10/44 (e) 205 202
GS Mortgage Securities Corp.
II, Ser 2006-GG6, Cl A2,
5.506%, 04/10/38 (e) 290 291
Wachovia Bank Commercial
Mortgage Trust,
Ser 2006-C23, Cl A4,
5.418%, 01/15/45 (e) 365 360
--------
1,596
--------
Total Fixed Income Securities
(Cost $1,979) 1,955
--------
U.S. TREASURY OBLIGATIONS (29.5%)
U.S. TREASURY BONDS (3.6%)
4.500%, 02/15/36 (b) 4,020 3,772
--------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (2.0%)
1.625%, 01/15/15 2,210 2,166
--------
</Table>
See Notes to Financial Statements.
84
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
BALANCED FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
U.S. TREASURY NOTES (23.9%)
2.250%, 04/30/06 (b) 4,675 4,666
4.625%, 02/29/08 (b) 2,320 2,311
5.625%, 05/15/08 (b) 2,995 3,042
3.375%, 12/15/08 (b) 5,965 5,747
4.250%, 10/15/10 (b) 5,115 4,995
4.500%, 02/28/11 (b) 2,750 2,710
4.250%, 08/15/13 (b) 2,025 1,948
--------
25,419
--------
Total U.S. Treasury Obligations
(Cost $31,830) 31,357
--------
SHORT-TERM INVESTMENTS (29.8%)
CSFB Enhanced Liquidity
Portfolio (c) 31,634,326 31,634
--------
Total Short-Term Investments
(Cost $31,634) 31,634
--------
REPURCHASE AGREEMENT (4.9%)
Deutsche Bank AG, 4.455%
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $5,186,384
(collateralized by U.S.
Treasury Obligations,
2.625%, due 03/15/09; total
market value $5,288,413) 5,184 5,184
--------
Total Repurchase Agreement
(Cost $5,184) 5,184
--------
Total Investments (Cost
$128,780) (a) -- 129.2% 137,189
Liabilities in excess of other
assets -- (29.2)% (31,029)
--------
Net Assets -- 100.0% $106,160
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $129,015
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $ 9,842
Unrealized Depreciation................... (1,668)
-------
Unrealized Appreciation (Depreciation).... $ 8,174
=======
</Table>
(b)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $30,517.
(c)This security was purchased with cash collateral held
from securities lending.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
Cl -- Class
LLC -- Limited Liability Company
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
85
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION AGGRESSIVE GROWTH FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
EQUITY FUNDS (95.1%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 361,929 4,430
STI Classic Capital
Appreciation Fund, I Shares
(b) 1,187,946 15,229
STI Classic Emerging Growth
Stock Fund, I Shares * (b) 49,559 636
STI Classic International
Equity Index Fund, I Shares
(b) 598,563 9,463
STI Classic Large Cap Relative
Value Fund, I Shares (b) 683,092 11,749
STI Classic Large Cap Value
Equity Fund, I Shares (b) 358,042 4,959
STI Classic Mid-Cap Equity
Fund, I Shares (b) 274,120 3,747
STI Classic Mid-Cap Value
Equity Fund, I Shares (b) 142,530 1,873
STI Classic Small Cap Growth
Stock Fund, I Shares * (b) 53,510 1,266
STI Classic Small Cap Value
Equity Fund, I Shares (b) 45,145 945
STI Classic Strategic
Quantitative Equity Fund, I
Shares (b) 361,423 4,970
-------
Total Equity Funds
(Cost $48,009) 59,267
-------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
MONEY MARKET FUNDS (5.1%)
STI Classic Prime Quality
Money Market Fund, I Shares
(b) 3,171,443 3,171
-------
Total Money Market Funds (Cost
$3,171) 3,171
-------
Total Investments (Cost $51,180)
(a) -- 100.2% 62,438
Liabilities in excess of other
assets -- (0.2)% (152)
-------
Net Assets -- 100.0% $62,286
=======
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $52,328 (amount
in thousands). Unrealized appreciation/
(depreciation) on a tax basis is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $10,112
Unrealized Depreciation.................. (2)
-------
Unrealized Appreciation (Depreciation)... $10,110
=======
</Table>
(b)Affiliate Investment.
See Notes to Financial Statements.
86
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION CONSERVATIVE FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
EQUITY FUNDS (20.1%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 13,004 159
STI Classic Capital Appreciation
Fund, I Shares (b) 28,428 364
STI Classic International Equity
Index Fund, I Shares (b) 33,423 527
STI Classic Large Cap Relative
Value Fund, I Shares (b) 21,047 362
STI Classic Large Cap Value
Equity Fund, I Shares (b) 7,497 104
STI Classic Mid-Cap Equity Fund,
I Shares (b) 7,651 105
STI Classic Mid-Cap Value Equity
Fund, I Shares (b) 7,961 105
STI Classic Small Cap Growth
Stock Fund, I Shares * (b) 4,473 106
STI Classic Small Cap Value
Equity Fund, I Shares (b) 5,041 106
STI Classic Strategic
Quantitative Equity Fund, I
Shares (b) 11,352 156
-------
Total Equity Funds
(Cost $1,638) 2,094
-------
FIXED INCOME FUNDS (70.7%)
STI Classic Core Bond Fund, I
Shares (b) 735,586 7,253
STI Classic High Income Fund, I
Shares (b) 14,950 104
-------
Total Fixed Income Funds
(Cost $7,587) 7,357
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (9.0%)
STI Classic Prime Quality Money
Market Fund, I Shares (b) 935,928 936
-------
Total Money Market Funds
(Cost $936) 936
-------
Total Investments
(Cost $10,161) (a) -- 99.8% 10,387
Other assets in excess of
liabilities -- 0.2% 27
-------
Net Assets -- 100.0% $10,414
=======
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $10,168 (amount
in thousands). Unrealized appreciation/(depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................... $ 450
Unrealized Depreciation.................... (231)
-----
Unrealized Appreciation (Depreciation)..... $ 219
=====
</Table>
(b)Affiliate Investment.
See Notes to Financial Statements.
87
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION GROWTH AND INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
EQUITY FUNDS (70.4%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 539,581 6,604
STI Classic Capital
Appreciation Fund, I Shares
(b) 1,750,855 22,446
STI Classic Emerging Growth
Stock Fund, I Shares * (b) 69,887 897
STI Classic International
Equity Index Fund, I Shares
(b) 885,144 13,994
STI Classic Large Cap Relative
Value Fund, I Shares (b) 1,006,435 17,311
STI Classic Large Cap Value
Equity Fund, I Shares (b) 529,334 7,331
STI Classic Mid-Cap Equity
Fund, I Shares (b) 403,458 5,515
STI Classic Mid-Cap Value
Equity Fund, I Shares (b) 209,718 2,756
STI Classic Small Cap Growth
Stock Fund, I Shares * (b) 80,819 1,911
STI Classic Small Cap Value
Equity Fund, I Shares (b) 66,453 1,391
STI Classic Strategic
Quantitative Equity Fund, I
Shares (b) 534,327 7,347
--------
Total Equity Funds
(Cost $68,427) 87,503
--------
FIXED INCOME FUNDS (21.9%)
STI Classic Core Bond Fund, I
Shares (b) 2,639,216 26,023
STI Classic High Income Fund,
I Shares (b) 179,049 1,248
--------
Total Fixed Income Funds
(Cost $28,047) 27,271
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (7.9%)
STI Classic Prime Quality
Money Market Fund, I Shares
(b) 9,856,999 9,857
--------
Total Money Market Funds
(Cost $9,857) 9,857
--------
Total Investments
(Cost $106,331) (a) -- 100.2% 124,631
Liabilities in excess of other
assets -- (0.2)% (281)
--------
Net Assets -- 100.0% $124,350
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $107,554
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $17,891
Unrealized Depreciation................... (814)
-------
Unrealized Appreciation (Depreciation).... $17,077
=======
</Table>
(b)Affiliate Investment.
See Notes to Financial Statements.
88
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION MODERATE GROWTH FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
EQUITY FUNDS (50.8%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 562,601 6,886
STI Classic Capital
Appreciation Fund, I Shares
(b) 1,820,412 23,338
STI Classic International
Equity Index Fund, I Shares
(b) 926,153 14,642
STI Classic Large Cap
Relative Value Fund, I
Shares (b) 1,050,457 18,068
STI Classic Large Cap Value
Equity Fund, I Shares (b) 543,225 7,524
STI Classic Mid-Cap Equity
Fund, I Shares (b) 468,839 6,409
STI Classic Mid-Cap Value
Equity Fund, I Shares (b) 223,313 2,934
STI Classic Small Cap Growth
Stock Fund, I Shares* (b) 86,012 2,034
STI Classic Small Cap Value
Equity Fund, I Shares (b) 88,420 1,851
STI Classic Strategic
Quantitative Equity Fund, I
Shares (b) 557,265 7,662
--------
Total Equity Funds
(Cost $70,672) 91,348
--------
FIXED INCOME FUNDS (42.3%)
STI Classic Core Bond Fund, I
Shares (b) 7,531,481 74,261
STI Classic High Income Fund,
I Shares (b) 261,184 1,820
--------
Total Fixed Income Funds
(Cost $78,309) 76,081
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (8.2%)
STI Classic Prime Quality
Money Market Fund, I Shares
(b) 14,748,127 14,748
--------
Total Money Market Funds
(Cost $14,748) 14,748
--------
Total Investments
(Cost $163,729) (a) -- 101.3% 182,177
Liabilities in excess of other
assets -- (1.3)% (2,308)
--------
Net Assets -- 100.0% $179,869
========
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax purposes is $166,216
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $18,244
Unrealized Depreciation.................. (2,283)
-------
Unrealized Appreciation (Depreciation)... $15,961
=======
</Table>
(b)Affiliate Investment.
See Notes to Financial Statements.
89
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION TARGET DATE 2015 FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
EQUITY FUNDS (64.4%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 1,090 13
STI Classic Capital Appreciation
Fund, I Shares (b) 3,538 45
STI Classic Emerging Growth Stock
Fund, I Shares* (b) 141 2
STI Classic International Equity
Index Fund, I Shares (b) 1,799 28
STI Classic Large Cap Relative
Value Fund, I Shares (b) 2,033 35
STI Classic Large Cap Value Equity
Fund, I Shares (b) 1,069 15
STI Classic Mid-Cap Equity Fund, I
Shares (b) 812 11
STI Classic Mid-Cap Value Equity
Fund, I Shares (b) 423 6
STI Classic Small Cap Growth Stock
Fund, I Shares* (b) 164 4
STI Classic Strategic Quantitative
Equity Fund, I Shares (b) 1,080 15
----
Total Equity Funds
(Cost $163) 174
----
FIXED INCOME FUNDS (22.2%)
STI Classic Core Bond Fund, I
Shares (b) 5,839 57
STI Classic High Income Fund, I
Shares (b) 361 3
----
Total Fixed Income Funds
(Cost $61) 60
----
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
MONEY MARKET FUNDS (5.6%)
STI Classic Prime Quality Money
Market Fund, I Shares (b) 15,279 15
----
Total Money Market Funds
(Cost $15) 15
----
EXCHANGE TRADED FUNDS (1.1%)
iShares Russell 2000 Value Index
Fund 37 3
----
Total Exchange Traded Funds
(Cost $2) 3
----
Total Investments
(Cost $241) (a) -- 93.3% 252
Other assets in excess of
liabilities -- 6.7% 18
----
Net Assets -- 100.0% $270
====
</Table>
- ---------------
* Non-Income producing security.
(a)Cost for federal income tax and financial reporting
purposes are the same.
(b)Affiliate Investment.
See Notes to Financial Statements.
90
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION TARGET DATE 2025 FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
EQUITY FUNDS (87.1%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 5,941 73
STI Classic Capital Appreciation
Fund, I Shares (b) 19,429 249
STI Classic Emerging Growth Stock
Fund, I Shares * (b) 777 10
STI Classic International Equity
Index Fund, I Shares (b) 9,923 157
STI Classic Large Cap Relative
Value Fund, I Shares (b) 11,333 195
STI Classic Large Cap Value Equity
Fund, I Shares (b) 6,262 87
STI Classic Mid-Cap Equity Fund, I
Shares (b) 4,544 62
STI Classic Mid-Cap Value Equity
Fund, I Shares (b) 2,319 30
STI Classic Small Cap Growth Stock
Fund, I Shares * (b) 885 21
STI Classic Strategic Quantitative
Equity Fund, I Shares (b) 6,007 83
------
Total Equity Funds
(Cost $949) 967
------
FIXED INCOME FUNDS (3.9%)
STI Classic Core Bond Fund, I
Shares (b) 3,289 32
STI Classic High Income Fund, I
Shares (b) 1,555 11
------
Total Fixed Income Funds
(Cost $43) 43
------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
MONEY MARKET FUNDS (5.9%)
STI Classic Prime Quality Money
Market Fund, I Shares (b) 65,993 66
------
Total Money Market Funds
(Cost $66) 66
------
EXCHANGE TRADED FUNDS (1.4%)
iShares Russell 2000 Value Index
Fund 208 15
------
Total Exchange Traded Funds
(Cost $15) 15
------
Total Investments
(Cost $1,073) (a) -- 98.3% 1,091
Other assets in excess of
liabilities -- 1.7% 19
------
Net Assets -- 100.0% $1,110
======
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax and financial reporting
purposes are the same.
(b)Affiliate Investment.
See Notes to Financial Statements.
91
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIFE VISION TARGET DATE 2035 FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
EQUITY FUNDS (90.3%)
STI Classic Aggressive Growth
Stock Fund, I Shares (b) 3,298 40
STI Classic Capital Appreciation
Fund, I Shares (b) 10,834 140
STI Classic Emerging Growth Stock
Fund, I Shares * (b) 458 6
STI Classic International Equity
Index Fund, I Shares (b) 5,518 87
STI Classic Large Cap Relative
Value Fund, I Shares (b) 6,236 107
STI Classic Large Cap Value Equity
Fund, I Shares (b) 3,280 45
STI Classic Mid-Cap Equity Fund, I
Shares (b) 2,503 34
STI Classic Mid-Cap Value Equity
Fund, I Shares (b) 1,308 17
STI Classic Small Cap Growth Stock
Fund, I Shares * (b) 492 12
STI Classic Strategic Quantitative
Equity Fund, I Shares (b) 3,291 45
----
Total Equity Funds
(Cost $517) 533
----
FIXED INCOME FUNDS (1.0%)
STI Classic Core Bond Fund, I
Shares (b) 570 6
----
Total Fixed Income Funds
(Cost $6) 6
----
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares Value($)
- --------------------------------------------------------
MONEY MARKET FUNDS (4.1%)
STI Classic Prime Quality Money
Market Fund, I Shares (b) 23,845 24
----
Total Money Market Funds
(Cost $24) 24
----
EXCHANGE TRADED FUNDS (1.5%)
iShares Russell 2000 Value Index
Fund 117 9
----
Total Exchange Traded Funds
(Cost $8) 9
----
Total Investments
(Cost $555) (a) -- 96.9% 572
Other assets in excess of
liabilities -- 3.1% 18
----
Net Assets -- 100.0% $590
====
</Table>
- ---------------
* Non-income producing security.
(a)Cost for federal income tax and financial reporting
purposes are the same.
(b)Affiliate Investment.
See Notes to Financial Statements.
92
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Aggressive Capital Emerging International Large Cap
Growth Stock Appreciation Growth Stock International Equity Relative Value
Fund Fund Fund Equity Fund Index Fund Fund
------------ ------------ ------------ ------------- ------------- --------------
Assets:
Investments, at Cost.............. $238,113 $1,630,851 $38,338 $ 832,447 $616,067 $1,575,489
======== ========== ======= ========== ======== ==========
Investments, at Value*............ $256,183 $1,758,270 $48,432 $1,034,221 $853,848 $1,844,888
Repurchase Agreements, at Cost.... 12,613 38,654 743 -- -- --
-------- ---------- ------- ---------- -------- ----------
Total Investments................. 268,796 1,796,924 49,175 1,034,221 853,848 1,844,888
Cash.............................. -- -- -- -- -- 3
Foreign Currency, at Value (Cost
$6,980 and $3,356,
respectively)................... -- -- -- 6,997 3,372 --
Interest and Dividends
Receivable...................... 44 914 7 4,915 2,703 2,324
Receivable for Investment
Securities Sold................. 237 28,686 -- 15,452 -- 7,040
Receivable for Capital Shares
Issued.......................... 841 1,053 292 808 1,416 3,951
Reclaims Receivable............... -- -- -- 300 137 --
Prepaid Expenses and Other
Assets.......................... 5 9 -- 15 3 7
-------- ---------- ------- ---------- -------- ----------
Total Assets...................... 269,923 1,827,586 49,474 1,062,708 861,479 1,858,213
-------- ---------- ------- ---------- -------- ----------
Liabilities:
Payable to Custodian.............. -- 17,174 -- 522 430 --
Payable for Investment Securities
Purchased....................... 9,551 11,119 709 11,369 -- 12,665
Payable for Capital Shares
Redeemed........................ 154 2,644 13 479 4,580 3,935
Payable upon Return of Securities
Loaned.......................... -- 342,342 -- 101,979 67,285 319,720
Investment Advisory Fees
Payable......................... 223 1,141 42 866 317 1,033
Administration Fees Payable....... 5 26 -- -- -- 21
Compliance Services Fees
Payable......................... -- 2 -- 1 1 2
Distribution and Service Fees
Payable......................... 4 72 -- 10 7 77
Custodian Fees Payable............ 5 36 3 155 91 29
Accrued Expenses.................. 15 178 4 93 103 170
-------- ---------- ------- ---------- -------- ----------
Total Liabilities................. 9,957 374,734 771 115,474 72,814 337,652
-------- ---------- ------- ---------- -------- ----------
Total Net Assets.................. $259,966 $1,452,852 $48,703 $ 947,234 $788,665 $1,520,561
======== ========== ======= ========== ======== ==========
Net Assets:
Capital........................... $238,164 $1,232,423 $38,484 $ 770,816 $620,842 $1,181,551
Accumulated Net Investment Income
(Loss).......................... (11) 120 (15) 1,088 (1,892) 858
Accumulated Net Realized Gains
(Losses) on Investments and
Foreign Currency Transactions... (8,870) 54,236 (603) (26,448) (68,077) 68,753
Net Unrealized Appreciation on
Investments and Foreign Currency
Transactions.................... 30,683 166,073 10,837 201,778 237,792 269,399
-------- ---------- ------- ---------- -------- ----------
Total Net Assets.................. $259,966 $1,452,852 $48,703 $ 947,234 $788,665 $1,520,561
======== ========== ======= ========== ======== ==========
NET ASSETS:
I Shares.......................... $254,412 $1,296,236 $48,369 $ 926,845 $774,008 $1,396,362
A Shares.......................... $ 331 $ 104,733 $ 227 $ 11,805 $ 8,666 $ 45,851
C Shares.......................... $ 5,223 $ 51,883 $ 107 $ 8,584 $ 5,991 $ 78,348
SHARES OUTSTANDING:
I Shares.......................... 20,780 101,074 3,769 63,987 48,971 81,167
A Shares.......................... 27 8,584 17 824 553 2,642
C Shares.......................... 435 4,527 9 632 392 4,609
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE:
I Shares.......................... $ 12.24 $ 12.83 $ 12.83 $ 14.49 $ 15.81 $ 17.20
A Shares.......................... $ 12.16 $ 12.20 $ 12.74 $ 14.34 $ 15.66 $ 17.36
C Shares**........................ $ 12.00 $ 11.46 $ 12.59 $ 13.58 $ 15.29 $ 17.00
OFFERING PRICE PER SHARE:
(100%/(100%-maximum sales charge)
of net asset value adjusted to the
nearest cent)
I Shares.......................... $ 12.24 $ 12.83 $ 12.83 $ 14.49 $ 15.81 $ 17.20
A Shares.......................... $ 12.90 $ 12.94 $ 13.52 $ 15.21 $ 16.62 $ 18.42
C Shares.......................... $ 12.00 $ 11.46 $ 12.59 $ 13.58 $ 15.29 $ 17.00
Maximum Sales Charge -- A Shares.... 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
</Table>
* The Capital Appreciation Fund, International Equity Fund, International
Equity Index Fund and Large Cap Relative Value Fund include securities on
loan of $332,407, $97,223, $64,328 and $309,029, respectively.
** Redemption Price Per Share Varies by Length of Time Shares are Held.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
93
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Large Cap Mid-Cap Mid-Cap Quality Small Cap Small Cap
Value Equity Equity Value Equity Growth Stock Growth Stock Value Equity
Fund Fund Fund Fund Fund Fund
------------ -------- ------------ ------------ ------------ ------------
Assets:
Investments, at Cost...................... $ 928,415 $473,210 $301,772 $114,094 $1,847,194 $679,614
========== ======== ======== ======== ========== ========
Investments, at Value*.................... $ 993,435 $519,889 $323,241 $141,789 $2,173,279 $906,603
Repurchase Agreements, at Cost............ 50,864 13,946 -- -- 47,951 7,880
---------- -------- -------- -------- ---------- --------
Total Investments......................... 1,044,299 533,835 323,241 141,789 2,221,230 914,483
Cash...................................... -- 1 -- 1,359 -- 1,362
Interest and Dividends Receivable......... 1,054 538 355 102 613 1,350
Receivable for Investment Securities
Sold.................................... 9,442 23,577 44 1,407 20,186 1,307
Receivable for Capital Shares Issued...... 819 3,666 558 60 3,451 1,156
Prepaid Expenses and Other Assets......... 5 12 9 10 7 4
---------- -------- -------- -------- ---------- --------
Total Assets.............................. 1,055,619 561,629 324,207 144,727 2,245,487 919,662
---------- -------- -------- -------- ---------- --------
Liabilities:
Payable to Custodian...................... -- 3,110 -- -- 3,780 --
Payable for Investment Securities
Purchased............................... 44,262 24,994 6,243 -- 13,405 1,777
Payable for Capital Shares Redeemed....... 4,434 190 102 517 6,240 971
Payable upon Return of Securities
Loaned.................................. 127,527 92,956 65,281 20,697 482,460 102,612
Investment Advisory Fees Payable.......... 587 360 208 93 1,544 765
Administration Fees Payable............... -- -- -- -- -- 12
Compliance Services Fees Payable.......... 1 1 -- -- 2 1
Distribution and Service Fees Payable..... 55 15 6 42 45 11
Custodian Fees Payable.................... 26 18 9 7 35 22
Accrued Expenses.......................... 78 18 23 10 157 77
---------- -------- -------- -------- ---------- --------
Total Liabilities......................... 176,970 121,662 71,872 21,366 507,668 106,248
---------- -------- -------- -------- ---------- --------
Total Net Assets.......................... $ 878,649 $439,967 $252,335 $123,361 $1,737,819 $813,414
========== ======== ======== ======== ========== ========
Net Assets:
Capital................................... $ 793,844 $375,431 $214,854 $290,255 $1,300,527 $487,385
Accumulated Net Investment Income......... 9 144 54 -- -- 273
Accumulated Net Realized Gains (Losses) on
Investments............................. (31,088) 3,767 15,958 (194,589) 63,256 90,887
Net Unrealized Appreciation on
Investments............................. 115,884 60,625 21,469 27,695 374,036 234,869
---------- -------- -------- -------- ---------- --------
Total Net Assets.......................... $ 878,649 $439,967 $252,335 $123,361 $1,737,819 $813,414
========== ======== ======== ======== ========== ========
NET ASSETS:
I Shares.................................. $ 766,547 $410,459 $243,534 $ 74,481 $1,641,681 $762,709
A Shares.................................. $ 67,845 $ 16,009 $ 2,435 $ 468 $ 59,896 $ 5,317
C Shares.................................. $ 44,257 $ 13,499 $ 6,366 $ 48,412 $ 36,242 $ 45,388
SHARES OUTSTANDING:
I Shares.................................. 55,331 30,021 18,531 2,884 69,410 36,443
A Shares.................................. 4,911 1,220 186 18 2,602 256
C Shares.................................. 3,235 1,111 487 2,008 1,684 2,226
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE:
I Shares.................................. $ 13.85 $ 13.67 $ 13.14 $ 25.83 $ 23.65 $ 20.93
A Shares.................................. $ 13.82 $ 13.12 $ 13.10 $ 25.67 $ 23.02 $ 20.79
C Shares**................................ $ 13.68 $ 12.15 $ 13.06 $ 24.11 $ 21.53 $ 20.39
OFFERING PRICE PER SHARE:
(100%/(100%-maximum sales charge) of net
asset value adjusted to the nearest cent)
I Shares.................................. $ 13.85 $ 13.67 $ 13.14 $ 25.83 $ 23.65 $ 20.93
A Shares.................................. $ 14.66 $ 13.92 $ 13.90 $ 27.24 $ 24.41 $ 22.06
C Shares.................................. $ 13.68 $ 12.15 $ 13.06 $ 24.11 $ 21.52 $ 20.39
Maximum Sales Charge -- A Shares............ 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
</Table>
* Includes securities on loan of $123,453, $90,550, $63,390, $20,114, $467,161
and $99,514, respectively.
** Redemption Price Per Share Varies by Length of Time Shares are Held.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
94
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Strategic Life Vision Life Vision Life Vision Life Vision
Quantitative Balanced Aggressive Conservative Growth and Moderate
Equity Fund Fund Growth Fund Fund Income Fund Growth Fund
------------ -------- ----------- ------------ ----------- -----------
Assets:
Investments, at Cost......................... $272,816 $128,780 $51,180 $10,161 $106,331 $163,729
======== ======== ======= ======= ======== ========
Investments, at Value*....................... $284,703 $132,005 $62,438 $10,387 $124,631 $182,177
Repurchase Agreements, at Cost............... 2,015 5,184 -- -- -- --
-------- -------- ------- ------- -------- --------
Total Investments............................ 286,718 137,189 62,438 10,387 124,631 182,177
Cash......................................... 1 4,337 -- -- -- --
Interest and Dividends Receivable............ 152 506 11 34 148 360
Receivable for Investment Securities Sold.... 64,035 1,579 -- -- -- --
Receivable for Capital Shares Issued......... 1,516 141 66 -- 88 72
Receivable from Investment Adviser........... -- -- -- 2 -- --
Prepaid Expenses and Other Assets............ 1 9 -- -- 1 1
-------- -------- ------- ------- -------- --------
Total Assets................................. 352,423 143,761 62,515 10,423 124,868 182,610
-------- -------- ------- ------- -------- --------
Liabilities:
Payable to Custodian......................... -- 569 -- -- -- --
Payable for Investment Securities
Purchased.................................. 64,663 4,955 -- -- -- --
Payable for Capital Shares Redeemed.......... 62 318 210 -- 478 2,689
Payable upon Return of Securities Loaned..... -- 31,634 -- -- -- --
Investment Advisory Fees Payable............. 202 79 5 -- 11 15
Administration Fees Payable.................. 6 -- 1 -- 1 1
Distribution and Service Fees Payable........ 2 28 5 4 15 12
Custodian Fees Payable....................... 27 12 1 2 2 4
Accrued Expenses............................. 35 6 7 3 11 20
-------- -------- ------- ------- -------- --------
Total Liabilities............................ 64,997 37,601 229 9 518 2,741
-------- -------- ------- ------- -------- --------
Total Net Assets............................. $287,426 $106,160 $62,286 $10,414 $124,350 $179,869
======== ======== ======= ======= ======== ========
Net Assets:
Capital...................................... $267,087 $ 91,433 $51,057 $10,094 $104,624 $160,958
Accumulated Net Investment Income............ 14 189 1 11 40 116
Accumulated Net Realized Gains (Losses) on
Investments................................ 6,423 6,129 (30) 83 1,386 347
Net Unrealized Appreciation on Investments... 13,902 8,409 11,258 226 18,300 18,448
-------- -------- ------- ------- -------- --------
Total Net Assets............................. $287,426 $106,160 $62,286 $10,414 $124,350 $179,869
======== ======== ======= ======= ======== ========
NET ASSETS:
I Shares..................................... $284,727 $ 69,616 $52,765 $ 3,066 $ 97,964 $158,301
A Shares..................................... $ 1,181 $ 5,811 $ 2,619 $ 1,324 $ 5,737 $ 5,821
C Shares..................................... $ 1,518 $ 30,733 $ 1,146 $ 835 $ 2,820 $ 1,674
B Shares..................................... N/A N/A $ 5,756 $ 5,189 $ 17,829 $ 14,073
SHARES OUTSTANDING:
I Shares..................................... 20,702 5,861 4,281 274 7,884 14,594
A Shares..................................... 87 487 213 118 462 537
C Shares..................................... 114 2,608 93 75 228 155
B Shares..................................... N/A N/A 472 463 1,436 1,301
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
I Shares..................................... $ 13.75 $ 11.88 $ 12.32 $ 11.21 $ 12.43 $ 10.85
A Shares..................................... $ 13.65 $ 11.94 $ 12.29 $ 11.21 $ 12.41 $ 10.84
C Shares**................................... $ 13.37 $ 11.78 $ 12.33 $ 11.20 $ 12.39 $ 10.82
B Shares**................................... N/A N/A $ 12.19 $ 11.22 $ 12.41 $ 10.82
OFFERING PRICE PER SHARE: (100%/(100%-maximum
sales charge) of net asset value adjusted to
the nearest cent)
I Shares..................................... $ 13.75 $ 11.88 $ 12.32 $ 11.21 $ 12.43 $ 10.85
A Shares..................................... $ 14.48 $ 12.67 $ 13.04 $ 11.77 $ 13.17 $ 11.50
C Shares..................................... $ 13.37 $ 11.78 $ 12.33 $ 11.20 $ 12.39 $ 10.82
B Shares..................................... N/A N/A $ 12.19 $ 11.22 $ 12.41 $ 10.82
Maximum Sales Charge -- A Shares............... 5.75% 5.75% 5.75% 4.75% 5.75% 5.75%
</Table>
* The Balanced Fund includes securities on loan of $30,517.
** Redemption Price Per Share Varies by Length of Time Shares are Held.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
95
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Life Vision Life Vision Life Vision
Target Date Target Date Target Date
2015 Fund 2025 Fund 2035 Fund
----------- ----------- -----------
Assets:
Investments, at Cost...................................... $ 241 $1,073 $ 555
====== ====== ======
Investments, at Value..................................... $ 252 $1,091 $ 572
Interest and Dividends Receivable......................... -- 1 --
Receivable from Investment Adviser........................ 13 13 13
Prepaid Expenses and Other Assets......................... 6 6 6
------ ------ ------
Total Assets.............................................. 271 1,111 591
------ ------ ------
Liabilities:
Custodian Fees Payable.................................... 1 1 1
------ ------ ------
Total Liabilities......................................... 1 1 1
------ ------ ------
Total Net Assets.......................................... $ 270 $1,110 $ 590
====== ====== ======
Net Assets:
Capital................................................... $ 255 $1,089 $ 568
Accumulated Net Investment Income......................... 1 1 --
Accumulated Net Realized Gains on Investments............. 3 2 5
Net Unrealized Appreciation on Investments................ 11 18 17
------ ------ ------
Total Net Assets.......................................... $ 270 $1,110 $ 590
====== ====== ======
NET ASSETS:
I Shares.................................................. $ 270 $1,110 $ 590
SHARES OUTSTANDING:
I Shares.................................................. 25 100 54
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
I Shares.................................................. $10.86 $11.11 $10.89
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
96
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Aggressive Capital Emerging International Large Cap
Growth Stock Appreciation Growth Stock International Equity Relative
Fund Fund Fund Equity Fund Index Fund Value Fund
------------ ------------ ------------ ------------- ------------- ----------
Investment Income:
Dividend Income....................... $ 457 $ 19,272 $ 82 $ 18,839 $ 16,432 $ 27,131
Interest Income....................... 169 602 27 477 596 1
Securities Lending Income............. -- 550 -- 754 792 460
Less: Foreign Taxes Withheld.......... -- -- -- (1,330) (1,582) --
------- -------- ------- -------- -------- --------
Total Investment Income............... 626 20,424 109 18,740 16,238 27,592
------- -------- ------- -------- -------- --------
Expenses:
Investment Advisory Fees.............. 1,230 15,897 342 8,023 3,831 11,260
Administration and Fund Accounting
Fees................................ 28 419 8 181 164 353
Compliance Services Fees.............. 1 13 -- 6 5 12
Distribution Fees -- A Shares......... 1 499 -- 31 25 115
Distribution and Service Fees -- C
Shares.............................. 54 610 1 80 56 822
Custodian Fees........................ 15 75 7 661 602 61
Professional Fees..................... 6 70 1 33 30 71
Insurance Fees........................ 1 30 -- 8 8 20
Registration Fees..................... 15 108 9 31 55 92
Transfer Agent Fees................... 18 158 -- 24 26 73
Printing Fees......................... 20 144 3 58 54 119
Trustees' Fees........................ 3 33 1 14 12 29
Other Expenses........................ 4 20 4 61 109 40
------- -------- ------- -------- -------- --------
Total Expenses........................ 1,396 18,076 376 9,211 4,977 13,067
Less: Investment Advisory Fees
Waived............................ (39) (61) (10) -- (113) --
Less: Administration Fees Waived.... (7) (16) (2) (68) (59) (23)
Less: Distribution Fees Waived -- A
Shares............................ -- -- -- -- -- (3)
Less: Distribution and Service Fees
Waived -- C Shares................ (2) -- -- -- -- (6)
------- -------- ------- -------- -------- --------
Net Expenses.......................... 1,348 17,999 364 9,143 4,805 13,035
------- -------- ------- -------- -------- --------
Net Investment Income (Loss).......... (722) 2,425 (255) 9,597 11,433 14,557
------- -------- ------- -------- -------- --------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions:
Net Realized Gain (Loss) on
Investments Sold and Foreign
Currency Transactions............... (3,816) 55,310 1,325 46,895 5,290 110,126
Net Change in Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions....... 27,629 51,746 9,111 110,353 132,522 39,541
Net Increase from Payments by
Affiliates (See Note 4.)............ -- -- -- 2 7 --
------- -------- ------- -------- -------- --------
Total Net Realized and Unrealized Gain
on Investments and Foreign Currency
Transactions........................ 23,813 107,056 10,436 157,250 137,819 149,667
------- -------- ------- -------- -------- --------
Net Change in Net Assets from
Operations.......................... $23,091 $109,481 $10,181 $166,847 $149,252 $164,224
======= ======== ======= ======== ======== ========
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
97
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Large Cap Mid-Cap Quality Small Cap Small Cap
Value Mid-Cap Value Growth Growth Value
Equity Fund Equity Fund Equity Fund Stock Fund Stock Fund Equity Fund
----------- ----------- ----------- ---------- ---------- -----------
Investment Income:
Dividend Income............................... $22,367 $ 4,744 $ 4,590 $ 1,759 $ 3,604 $ 12,228
Interest Income............................... 677 460 -- 82 1,668 411
Securities Lending Income..................... 216 248 89 21 1,502 194
------- ------- ------- ------- -------- --------
Total Investment Income....................... 23,260 5,452 4,679 1,862 6,774 12,833
------- ------- ------- ------- -------- --------
Expenses:
Investment Advisory Fees...................... 7,082 3,242 2,338 1,403 14,692 8,673
Administration and Fund Accounting Fees....... 237 82 57 39 348 201
Compliance Services Fees...................... 8 3 2 1 12 7
Distribution Fees -- A Shares................. 217 51 7 2 164 13
Distribution and Service Fees -- C Shares..... 469 139 64 572 340 209
Custodian Fees................................ 53 40 19 15 85 44
Professional Fees............................. 40 16 10 6 65 35
Insurance Fees................................ 15 4 3 3 16 13
Registration Fees............................. 60 29 24 29 61 64
Transfer Agent Fees........................... 95 56 31 65 159 40
Printing Fees................................. 79 33 18 16 150 70
Trustees' Fees................................ 16 6 4 3 27 14
Other Expenses................................ 16 23 7 8 48 17
------- ------- ------- ------- -------- --------
Total Expenses................................ 8,387 3,724 2,584 2,162 16,167 9,400
Less: Investment Advisory Fees Waived....... -- (2) (51) -- -- --
Less: Administration Fees Waived............ (44) (32) (15) (24) (69) (12)
Less: Distribution Fees Waived -- A
Shares.................................... -- -- -- -- (13) (1)
Less: Distribution and Service Fees
Waived -- C Shares........................ -- -- (7) -- -- (104)
------- ------- ------- ------- -------- --------
Net Expenses.................................. 8,343 3,690 2,511 2,138 16,085 9,283
------- ------- ------- ------- -------- --------
Net Investment Income (Loss).................. 14,917 1,762 2,168 (276) (9,311) 3,550
------- ------- ------- ------- -------- --------
Net Realized and Unrealized Gain (Loss) on
Investments:
Net Realized Gain on Investments Sold......... 55,766 31,428 26,814 17,605 129,014 190,190
Net Change in Unrealized Appreciation
(Depreciation) on Investments............... 28,775 22,166 9,917 (7,295) 224,874 10,943
------- ------- ------- ------- -------- --------
Total Net Realized and Unrealized Gain on
Investments................................. 84,541 53,594 36,731 10,310 353,888 201,133
------- ------- ------- ------- -------- --------
Net Change in Net Assets from Operations...... $99,458 $55,356 $38,899 $10,034 $344,577 $204,683
======= ======= ======= ======= ======== ========
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
98
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Life Vision
Strategic Life Vision Life Vision Growth and Life Vision
Quantitative Balanced Aggressive Conservative Income Moderate
Equity Fund Fund Growth Fund Fund Fund Growth Fund
------------ -------- ----------- ------------ ----------- -----------
Investment Income:
Dividend Income (1).......................... $ 1,623 $ 1,516 $ 819 $330 $ 2,472 $ 4,617
Interest Income.............................. 121 3,614 -- -- -- --
Securities Lending Income.................... -- 224 -- -- -- --
------- ------- ------ ---- ------- -------
Total Investment Income...................... 1,744 5,354 819 330 2,472 4,617
------- ------- ------ ---- ------- -------
Expenses:
Investment Advisory Fees..................... 1,505 1,768 79 13 169 243
Administration and Fund Accounting Fees...... 43 53 14 2 30 43
Compliance Services Fees..................... 2 2 -- -- 1 1
Distribution Fees -- A Shares................ 2 19 8 4 17 25
Distribution and Service Fees -- C Shares.... 15 382 6 6 13 9
Distribution Fees -- B Shares................ 47 45 145 122
Custodian Fees............................... 65 24 8 3 9 11
Professional Fees............................ 9 6 3 1 6 8
Insurance Fees............................... 1 5 1 -- 2 3
Registration Fees............................ 10 35 13 10 17 21
Transfer Agent Fees.......................... 7 49 12 4 19 13
Printing Fees................................ 19 18 5 2 11 17
Trustees' Fees............................... 6 4 1 -- 2 3
Other Expenses............................... 18 10 4 5 4 6
------- ------- ------ ---- ------- -------
Total Expenses............................... 1,702 2,375 201 95 445 525
Less: Investment Advisory Fees Waived or
Fees Reimbursed...................... (51) (28) (23) (21) (42) (58)
Less: Administration Fees Waived........... -- (15) (5) (2) (7) (8)
Less: Distribution Fees Waived -- A
Shares................................... -- -- (1) -- (2) (5)
Less: Distribution Fees Waived -- B
Shares................................... (3) (4) (11) (15)
------- ------- ------ ---- ------- -------
Net Expenses................................. 1,651 2,332 169 68 383 439
------- ------- ------ ---- ------- -------
Net Investment Income........................ 93 3,022 650 262 2,089 4,178
------- ------- ------ ---- ------- -------
Net Realized and Unrealized Gain (Loss) on
Investments:
Capital Gain Received from Investments in
Affiliated Investment Companies (1)........ -- -- 1,091 67 1,834 1,945
Net Realized Gain on Investments Sold (1).... 10,158 9,135 959 28 1,961 3,257
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1).......... 9,471 (2,870) 4,463 20 6,195 3,923
Net Increase from Payments by Affiliates (See
Note 4.)................................... -- 71 -- -- -- --
------- ------- ------ ---- ------- -------
Total Net Realized and Unrealized Gain on
Investments................................ 19,629 6,336 6,513 115 9,990 9,125
------- ------- ------ ---- ------- -------
Net Change in Net Assets from Operations..... $19,722 $ 9,358 $7,163 $377 $12,079 $13,303
======= ======= ====== ==== ======= =======
</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.
See Notes to Financial Statements.
99
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Life Vision Life Vision Life Vision
Target Date Target Date Target Date
2015 Fund (a) 2025 Fund (b) 2035 Fund (c)
------------- ------------- -------------
Investment Income:
Dividend Income (1)................... $ 3 $ 3 $ 3
--- --- ---
Total Investment Income............... 3 3 3
--- --- ---
Expenses:
Investment Advisory Fees.............. -- -- --
Administration and Fund Accounting
Fees................................ -- -- --
Compliance Services Fees.............. -- -- --
Custodian Fees........................ 1 1 1
Professional Fees..................... -- -- --
Insurance Fees........................ -- -- --
Registration Fees..................... 10 10 10
Transfer Agent Fees................... -- -- --
Printing Fees......................... -- -- --
Trustees' Fees........................ -- -- --
Other Expenses........................ 2 2 2
--- --- ---
Total Expenses........................ 13 13 13
Less: Expenses Reimbursable from
Investment Adviser............ (13) (13) (13)
Less: Administration Fees Waived.... -- -- --
--- --- ---
Net Expenses.......................... -- -- --
--- --- ---
Net Investment Income................. 3 3 3
--- --- ---
Net Realized and Unrealized Gain on
Investments:
Capital Gain Received from Investments
in Affiliated Investment Companies
(1)................................. 3 2 4
Net Realized Gain on Investments Sold
(1)................................. -- -- 1
Net Change in Unrealized Appreciation
on Investments (1).................. 11 18 17
--- --- ---
Total Net Realized and Unrealized Gain
on Investments...................... 14 20 22
--- --- ---
Net Change in Net Assets from
Operations.......................... $17 $23 $25
=== === ===
</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.
(a)Commencement of operations October 12, 2005.
(b)Commencement of operations October 21, 2005.
(c)Commencement of operations November 2, 2005.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
100
STATEMENTS OF CHANGES IN NET ASSETS
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Aggressive Growth Capital Appreciation
Stock Fund Fund
------------------------------------ --------------------------------------
04/01/05- 06/01/04- 02/23/04*- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- ---------- ---------- ---------- ----------
Operations:
Net Investment
Income (Loss)..... $ (722) $ (313) $ (21) $ 2,425 $ 2,917 $ (5,705)
Net Realized Gain
(Loss) on
Investments
Sold.............. (3,816) (1,571) (39) 55,310 32,759 240,042
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments....... 27,629 710 389 51,746 (23,096) (77,211)
-------- ------- ------- ---------- ---------- ----------
Change in Net Assets
from Operations... 23,091 (1,174) 329 109,481 12,580 157,126
-------- ------- ------- ---------- ---------- ----------
Dividends and
Distributions to
Shareholders:
Net Investment
Income:
I Shares.......... (5) -- -- (2,305) (3,119) --
Net Realized Gains:
I Shares.......... -- -- -- (29,860) (22,698) --
A Shares.......... -- -- -- (2,465) (2,096) --
C Shares.......... -- -- -- (1,308) (1,379) --
-------- ------- ------- ---------- ---------- ----------
Total Dividends and
Distributions..... (5) -- -- (35,938) (29,292) --
-------- ------- ------- ---------- ---------- ----------
Change in Net Assets
from Capital
Transactions...... 171,957(a) 45,482 20,286 (316,585)(b) 217,615 11,323
-------- ------- ------- ---------- ---------- ----------
Change in Net
Assets.......... 195,043 44,308 20,615 (243,042) 200,903 168,449
-------- ------- ------- ---------- ---------- ----------
Net Assets:
Beginning of
Period............ 64,923 20,615 -- 1,695,894 1,494,991 1,326,542
-------- ------- ------- ---------- ---------- ----------
End of Period....... $259,966 $64,923 $20,615 $1,452,852 $1,695,894 $1,494,991
======== ======= ======= ========== ========== ==========
Accumulated Net
Investment Income
(Loss), End of
Period.............. $ (11) $ (15) $ (5) $ 120 $ -- $ --
======== ======= ======= ========== ========== ==========
<Caption>
Emerging Growth
Stock Fund
------------------------------------
04/01/05- 06/01/04- 02/23/04*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Operations:
Net Investment
Income (Loss)..... $ (255) $ (144) $ (24)
Net Realized Gain
(Loss) on
Investments
Sold.............. 1,325 (1,750) (178)
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments....... 9,111 1,765 (39)
------- ------- -------
Change in Net Assets
from Operations... 10,181 (129) (241)
------- ------- -------
Dividends and
Distributions to
Shareholders:
Net Investment
Income:
I Shares.......... -- -- --
Net Realized Gains:
I Shares.......... -- -- --
A Shares.......... -- -- --
C Shares.......... -- -- --
------- ------- -------
Total Dividends and
Distributions..... -- -- --
------- ------- -------
Change in Net Assets
from Capital
Transactions...... 17,908 7,779 13,205
------- ------- -------
Change in Net
Assets.......... 28,089 7,650 12,964
------- ------- -------
Net Assets:
Beginning of
Period............ 20,614 12,964 --
------- ------- -------
End of Period....... $48,703 $20,614 12,964
======= ======= =======
Accumulated Net
Investment Income
(Loss), End of
Period.............. $ (15) $ (19) $ (6)
======= ======= =======
</Table>
* Commencement of operations.
(a)Redemption fees have been rounded to $0.
(b)Includes redemption fees collected of $1.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
101
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Aggressive Growth Capital Appreciation
Stock Fund Fund
---------------------------------- ---------------------------------
04/01/05- 06/01/04- 02/23/04*- 04/01/05- 06/01/04- 6/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- ---------- --------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued............ $193,192 $40,408 $20,288 $ 390,413 $ 544,096 $ 279,768
Proceeds from Shares Issued in
Acquisition.......................... -- 8,427 -- -- -- --
Dividends Reinvested................... 2 -- -- 22,561 18,371 --
Cost of Shares Redeemed................ (19,718) (7,169) (115) (676,657) (304,351) (253,060)
-------- ------- ------- --------- --------- ---------
Change in Net Assets from I Shares
Transactions..................... $173,476 $41,666 $20,173 $(263,683) $ 258,116 $ 26,708
-------- ------- ------- --------- --------- ---------
A Shares
Proceeds from Shares Issued............ $ 190 $ 115 $ 48 $ 8,707 $ 9,187 $ 15,738
Proceeds from Shares Issued in
Acquisition.......................... -- 7 -- -- -- --
Dividends Reinvested................... -- -- -- 2,391 2,016 --
Cost of Shares Redeemed................ (43) (32) -- (38,114) (28,451) (26,645)
-------- ------- ------- --------- --------- ---------
Change in Net Assets from A Shares
Transactions..................... $ 147 $ 90 $ 48 $ (27,016) $ (17,248) $ (10,907)
-------- ------- ------- --------- --------- ---------
C Shares(1)
Proceeds from Shares Issued............ $ 218 $ -- $ 72 $ 1,332 $ 2,626 $ 21,720
Proceeds from Shares Issued in
Acquisition.......................... -- 6,502 -- -- -- --
Dividends Reinvested................... -- -- -- 1,268 1,338 --
Cost of Shares Redeemed................ (1,884) (2,776) (7) (28,486) (27,217) (26,198)
-------- ------- ------- --------- --------- ---------
Change in Net Assets from C Shares
Transactions..................... $ (1,666) $ 3,726 $ 65 $ (25,886) $ (23,253) $ (4,478)
-------- ------- ------- --------- --------- ---------
Change in Net Assets from Capital
Transactions........................... $171,957 $45,482 $20,286 $(316,585) $ 217,615 $ 11,323
======== ======= ======= ========= ========= =========
Share Transactions:
I Shares
Issued................................. 16,618 3,857 2,062 31,807 44,144 23,848
Issued in Acquisition.................. -- 804 -- -- -- --
Reinvested............................. -- -- -- 1,810 1,461 --
Redeemed............................... (1,805) (744) (12) (54,757) (24,695) (21,521)
-------- ------- ------- --------- --------- ---------
Change in I Shares Transactions.... 14,813 3,917 2,050 (21,140) 20,910 2,327
-------- ------- ------- --------- --------- ---------
A Shares
Issued................................. 17 11 5 745 787 1,390
Issued in Acquisition.................. -- 1 -- -- -- --
Reinvested............................. -- -- -- 202 168 --
Redeemed............................... (4) (3) -- (3,241) (2,422) (2,350)
-------- ------- ------- --------- --------- ---------
Change in A Shares Transactions.... 13 9 5 (2,294) (1,467) (960)
-------- ------- ------- --------- --------- ---------
C Shares(1)
Issued................................. 21 18 7 121 236 2,046
Issued in Acquisition.................. -- 624 -- -- -- --
Reinvested............................. -- -- -- 114 117 --
Redeemed............................... (178) (57) -- (2,575) (2,438) (2,409)
-------- ------- ------- --------- --------- ---------
Change in C Shares Transactions.... (157) 585 7 (2,340) (2,085) (363)
-------- ------- ------- --------- --------- ---------
Change in Share Transactions............. 14,669 4,511 2,062 (25,774) 17,358 1,004
======== ======= ======= ========= ========= =========
<Caption>
Emerging Growth
Stock Fund
----------------------------------
04/01/05- 06/01/04- 02/23/04*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Capital Transactions:
I Shares
Proceeds from Shares Issued............ $25,991 $ 9,477 $13,349
Proceeds from Shares Issued in
Acquisition.......................... -- -- --
Dividends Reinvested................... -- -- --
Cost of Shares Redeemed................ (8,236) (1,743) (221)
------- ------- -------
Change in Net Assets from I Shares
Transactions..................... $17,755 $ 7,734 $13,128
------- ------- -------
A Shares
Proceeds from Shares Issued............ $ 116 $ 75 $ 40
Proceeds from Shares Issued in
Acquisition.......................... -- -- --
Dividends Reinvested................... -- -- --
Cost of Shares Redeemed................ (18) (31) --
------- ------- -------
Change in Net Assets from A Shares
Transactions..................... $ 98 $ 44 $ 40
------- ------- -------
C Shares(1)
Proceeds from Shares Issued............ $ 55 $ 10 $ 44
Proceeds from Shares Issued in
Acquisition.......................... -- -- --
Dividends Reinvested................... -- -- --
Cost of Shares Redeemed................ -- (9) (7)
------- ------- -------
Change in Net Assets from C Shares
Transactions..................... $ 55 $ 1 $ 37
------- ------- -------
Change in Net Assets from Capital
Transactions........................... $17,908 $ 7,779 $13,205
======= ======= =======
Share Transactions:
I Shares
Issued................................. 2,376 1,031 1,367
Issued in Acquisition.................. -- -- --
Reinvested............................. -- -- --
Redeemed............................... (791) (190) (24)
------- ------- -------
Change in I Shares Transactions.... 1,585 841 1,343
------- ------- -------
A Shares
Issued................................. 10 8 4
Issued in Acquisition.................. -- -- --
Reinvested............................. -- -- --
Redeemed............................... (2) (3) --
------- ------- -------
Change in A Shares Transactions.... 8 5 4
------- ------- -------
C Shares(1)
Issued................................. 5 1 5
Issued in Acquisition.................. -- -- --
Reinvested............................. -- -- --
Redeemed............................... -- (1) (1)
------- ------- -------
Change in C Shares Transactions.... 5 -- 4
------- ------- -------
Change in Share Transactions............. 1,598 846 1,351
======= ======= =======
</Table>
* Commencement of operations.
(1) C Shares were offered beginning February 27, 2004 for the Emerging Growth
Stock Fund.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
102
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
International International
Equity Fund Equity Index Fund
----------------------------------- -----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment
Income............ $ 9,597 $ 2,809 $ 2,690 $ 11,433 $ 2,790 $ 4,350
Net Realized Gain
(Loss) on
Investments Sold
and Foreign
Currency
Transactions...... 46,895 13,245 12,672 5,290 (1,347) 3,571
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currency
Transactions...... 110,353 47,096 42,092 132,522 67,094 82,007
Net Increase from
Payments by
Affiliates........ 2 -- -- 7 -- --
-------- -------- -------- -------- -------- --------
Change in Net Assets
from Operations... 166,847 63,150 57,454 149,252 68,537 89,928
-------- -------- -------- -------- -------- --------
Dividends and
Distributions to
Shareholders:
Net Investment
Income:
I Shares.......... (8,756) (4,121) (3,390) (9,595) (8,557) (3,907)
A Shares.......... (88) (52) (74) (84) (76) (153)
C Shares.......... -- (1) (45) (8) (47) (22)
Net Realized Gains:
I Shares.......... -- -- -- -- -- --
A Shares.......... -- -- -- -- -- --
C Shares.......... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends and
Distributions..... (8,844) (4,174) (3,509) (9,687) (8,680) (4,082)
-------- -------- -------- -------- -------- --------
Change in Net Assets
from Capital
Transactions...... 291,758(a) 91,655 89,770 117,744(b) 100,091 23,822
-------- -------- -------- -------- -------- --------
Change in Net
Assets.......... 449,761 150,631 143,715 257,309 159,948 109,668
-------- -------- -------- -------- -------- --------
Net Assets:
Beginning of
Period............ 497,473 346,842 203,127 531,356 371,408 261,740
-------- -------- -------- -------- -------- --------
End of Period....... $947,234 $497,473 $346,842 $788,665 $531,356 $371,408
======== ======== ======== ======== ======== ========
Accumulated Net
Investment Income
(Loss), End of
Period.............. $ 1,088 $ 1,301 $ 2,377 $ (1,892) $ (2,610) $ 3,035
======== ======== ======== ======== ======== ========
<Caption>
Large Cap Relative
Value Fund
-------------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
---------- ---------- ---------
Operations:
Net Investment
Income............ $ 14,557 $ 9,087 $ 7,823
Net Realized Gain
(Loss) on
Investments Sold
and Foreign
Currency
Transactions...... 110,126 70,618 54,492
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currency
Transactions...... 39,541 38,394 99,001
Net Increase from
Payments by
Affiliates........ -- -- --
---------- ---------- --------
Change in Net Assets
from Operations... 164,224 118,099 161,316
---------- ---------- --------
Dividends and
Distributions to
Shareholders:
Net Investment
Income:
I Shares.......... (13,698) (9,529) (6,962)
A Shares.......... (388) (416) (336)
C Shares.......... (93) (213) (163)
Net Realized Gains:
I Shares.......... (52,561) (20,518) --
A Shares.......... (1,849) (1,020) --
C Shares.......... (3,290) (2,064) --
---------- ---------- --------
Total Dividends and
Distributions..... (71,879) (33,760) (7,461)
---------- ---------- --------
Change in Net Assets
from Capital
Transactions...... 284,015(c) 133,490 63,089
---------- ---------- --------
Change in Net
Assets.......... 376,360 217,829 216,944
---------- ---------- --------
Net Assets:
Beginning of
Period............ 1,144,201 926,372 709,428
---------- ---------- --------
End of Period....... $1,520,561 $1,144,201 $926,372
========== ========== ========
Accumulated Net
Investment Income
(Loss), End of
Period.............. $ 858 $ 480 $ 1,551
========== ========== ========
</Table>
(a)Includes redemption fees collected of $21.
(b)Includes redemption fees collected of $5.
(c)Includes redemption fees collected of $2.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
103
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
International International
Equity Fund Equity Index Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued......... $ 411,692 $140,746 $144,029 $ 258,434 $157,372 $ 83,517
Proceeds from Shares Issued in
Acquisition.......................
Dividends Reinvested................ 2,197 1,260 1,379 5,754 5,808 3,067
Cost of Shares Redeemed............. (121,946) (50,085) (54,870) (144,948) (53,751) (64,875)
--------- -------- -------- --------- -------- --------
Change in Net Assets from I
Shares Transactions........... $ 291,943 $ 91,921 $ 90,538 $ 119,240 $109,429 $ 21,709
--------- -------- -------- --------- -------- --------
A Shares
Proceeds from Shares Issued......... $ 4,921 $ 1,904 $ 16,666 $ 1,666 $ 2,408 $ 22,245
Dividends Reinvested................ 77 47 67 81 73 147
Cost of Shares Redeemed............. (3,828) (1,679) (17,896) (2,293) (11,540) (21,325)
--------- -------- -------- --------- -------- --------
Change in Net Assets from A
Shares Transactions........... $ 1,170 $ 272 $ (1,163) $ (546) $ (9,059) $ 1,067
--------- -------- -------- --------- -------- --------
C Shares
Proceeds from Shares Issued......... $ 1,175 $ 1,329 $ 1,875 $ 351 $ 885 $ 2,143
Dividends Reinvested................ -- 1 43 7 44 20
Cost of Shares Redeemed............. (2,530) (1,868) (1,523) (1,308) (1,208) (1,117)
--------- -------- -------- --------- -------- --------
Change in Net Assets from C
Shares Transactions........... $ (1,355) $ (538) $ 395 $ (950) $ (279) $ 1,046
--------- -------- -------- --------- -------- --------
Change in Net Assets from Capital
Transactions........................ $ 291,758 $ 91,655 $ 89,770 $ 117,744 $100,091 $ 23,822
========= ======== ======== ========= ======== ========
Share Transactions:
I Shares
Issued.............................. 32,572 12,488 14,743 18,710 12,840 8,041
Issued in Acquisition...............
Reinvested.......................... 166 108 141 402 459 290
Redeemed............................ (9,601) (4,485) (6,032) (10,515) (4,534) (6,365)
--------- -------- -------- --------- -------- --------
Change in I Shares
Transactions.................. 23,137 8,111 8,852 8,597 8,765 1,966
--------- -------- -------- --------- -------- --------
A Shares
Issued.............................. 391 175 2,018 115 212 2,436
Reinvested.......................... 6 4 7 6 6 14
Redeemed............................ (302) (154) (2,130) (167) (995) (2,267)
--------- -------- -------- --------- -------- --------
Change in A Shares
Transactions.................. 95 25 (105) (46) (777) 183
--------- -------- -------- --------- -------- --------
C Shares
Issued.............................. 100 128 213 26 78 215
Reinvested.......................... -- -- 5 1 4 2
Redeemed............................ (217) (181) (173) (101) (103) (112)
--------- -------- -------- --------- -------- --------
Change in C Shares
Transactions.................. (117) (53) 45 (74) (21) 105
--------- -------- -------- --------- -------- --------
Change in Share Transactions.......... 23,115 8,083 8,792 8,477 7,967 2,254
========= ======== ======== ========= ======== ========
<Caption>
Large Cap Relative
Value Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued......... $ 552,868 $ 147,236 $ 187,428
Proceeds from Shares Issued in
Acquisition....................... -- 106,678 --
Dividends Reinvested................ 35,791 17,106 2,566
Cost of Shares Redeemed............. (286,603) (114,963) (136,004)
--------- --------- ---------
Change in Net Assets from I
Shares Transactions........... $ 302,056 $ 156,057 $ 53,990
--------- --------- ---------
A Shares
Proceeds from Shares Issued......... $ 9,149 $ 7,636 $ 11,177
Dividends Reinvested................ 2,010 1,302 304
Cost of Shares Redeemed............. (13,233) (14,015) (9,607)
--------- --------- ---------
Change in Net Assets from A
Shares Transactions........... $ (2,074) $ (5,077) $ 1,874
--------- --------- ---------
C Shares
Proceeds from Shares Issued......... $ 4,631 $ 7,083 $ 29,013
Dividends Reinvested................ 3,215 2,166 154
Cost of Shares Redeemed............. (23,813) (26,739) (21,942)
--------- --------- ---------
Change in Net Assets from C
Shares Transactions........... $ (15,967) $ (17,490) $ 7,225
--------- --------- ---------
Change in Net Assets from Capital
Transactions........................ $ 284,015 $ 133,490 $ 63,089
========= ========= =========
Share Transactions:
I Shares
Issued.............................. 33,293 9,472 13,896
Issued in Acquisition............... -- 6,605 --
Reinvested.......................... 2,139 1,069 190
Redeemed............................ (17,149) (7,447) (9,941)
--------- --------- ---------
Change in I Shares
Transactions.................. 18,283 9,699 4,145
--------- --------- ---------
A Shares
Issued.............................. 549 496 814
Reinvested.......................... 119 81 22
Redeemed............................ (786) (905) (697)
--------- --------- ---------
Change in A Shares
Transactions.................. (118) (328) 139
--------- --------- ---------
C Shares
Issued.............................. 284 465 2,178
Reinvested.......................... 195 136 11
Redeemed............................ (1,453) (1,750) (1,603)
--------- --------- ---------
Change in C Shares
Transactions.................. (974) (1,149) 586
--------- --------- ---------
Change in Share Transactions.......... 17,191 8,222 4,870
========= ========= =========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
104
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Large Cap Value Mid-Cap
Equity Fund Equity Fund
---------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
---------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income......... $ 14,917 $ 10,617 $ 10,571 $ 1,762 $ 962 $ 999
Net Realized Gain on
Investments Sold............ 55,766 105,214 71,412 31,428 17,287 22,721
Net Change in Unrealized
Appreciation (Depreciation)
on Investments.............. 28,775 (18,053) 62,760 22,166 15,850 6,629
---------- -------- -------- -------- -------- --------
Change in Net Assets from
Operations.................. 99,458 97,778 144,743 55,356 34,099 30,349
---------- -------- -------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares.................... (13,581) (11,469) (9,766) (1,634) (964) (869)
A Shares.................... (989) (878) (744) (36) (23) (41)
C Shares.................... (340) (280) (212) -- -- (12)
Net Realized Gains:
I Shares.................... -- -- -- (14,705) -- --
A Shares.................... -- -- -- (730) -- --
C Shares.................... -- -- -- (694) -- --
---------- -------- -------- -------- -------- --------
Total Dividends and
Distributions............... (14,910) (12,627) (10,722) (17,799) (987) (922)
---------- -------- -------- -------- -------- --------
Change in Net Assets from
Capital Transactions........ (127,185)(a) (10,453) (83,633) 158,637(a) 410 38,582
---------- -------- -------- -------- -------- --------
Change in Net Assets........ (42,637) 74,698 50,388 196,194 33,522 68,009
---------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period........... 921,286 846,588 796,200 243,773 210,251 142,242
---------- -------- -------- -------- -------- --------
End of Period................. $ 878,649 $921,286 $846,588 $439,967 $243,773 $210,251
========== ======== ======== ======== ======== ========
Accumulated Net Investment
Income, End of Period......... $ 9 $ 2 $ 2,012 $ 144 $ 52 $ 77
========== ======== ======== ======== ======== ========
<Caption>
Mid-Cap
Value Equity Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Operations:
Net Investment Income......... $ 2,168 $ 1,816 $ 669
Net Realized Gain on
Investments Sold............ 26,814 27,508 18,863
Net Change in Unrealized
Appreciation (Depreciation)
on Investments.............. 9,917 (5,309) 12,849
-------- -------- --------
Change in Net Assets from
Operations.................. 38,899 24,015 32,381
-------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares.................... (2,100) (1,906) (653)
A Shares.................... (15) (9) --
C Shares.................... (11) (31) (1)
Net Realized Gains:
I Shares.................... (20,403) -- --
A Shares.................... (208) -- --
C Shares.................... (598) -- --
-------- -------- --------
Total Dividends and
Distributions............... (23,335) (1,946) (654)
-------- -------- --------
Change in Net Assets from
Capital Transactions........ 19,071(a) 39,956 18,350
-------- -------- --------
Change in Net Assets........ 34,635 62,025 50,077
-------- -------- --------
Net Assets:
Beginning of Period........... 217,700 155,675 105,598
-------- -------- --------
End of Period................. $252,335 $217,700 $155,675
======== ======== ========
Accumulated Net Investment
Income, End of Period......... $ 54 $ 12 $ 142
======== ======== ========
</Table>
(a)Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
105
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Large Cap Value Mid-Cap
Equity Fund Equity Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued............ $ 135,139 $ 169,872 $ 117,907 $250,612 $ 52,779 $ 82,329
Dividends Reinvested................... 9,868 8,648 7,527 8,646 411 360
Cost of Shares Redeemed................ (244,925) (174,545) (204,589) (97,492) (44,085) (48,540)
--------- --------- --------- -------- -------- --------
Change in Net Assets from I Shares
Transactions..................... $ (99,918) $ 3,975 $ (79,155) $161,766 $ 9,105 $ 34,14
--------- --------- --------- -------- -------- --------
A Shares(1)
Proceeds from Shares Issued............ $ 3,961 $ 6,041 $ 8,238 $ 3,061 $ 2,497 $ 6,855
Dividends Reinvested................... 947 834 704 727 22 39
Cost of Shares Redeemed................ (19,040) (11,748) (12,649) (4,203) (7,520) (4,089)
--------- --------- --------- -------- -------- --------
Change in Net Assets from A Shares
Transactions..................... $ (14,132) $ (4,873) $ (3,707) $ (415) $ (5,001) $ 2,805
--------- --------- --------- -------- -------- --------
C Shares
Proceeds from Shares Issued............ $ 1,086 $ 2,931 $ 11,995 $ 1,009 $ 613 $ 6,138
Dividends Reinvested................... 327 267 201 665 -- 11
Cost of Shares Redeemed................ (14,548) (12,753) (12,967) (4,388) (4,307) (4,521)
--------- --------- --------- -------- -------- --------
Change in Net Assets from C Shares
Transactions..................... $ (13,135) $ (9,555) $ (771) $ (2,714) $ (3,694) $ 1,628
--------- --------- --------- -------- -------- --------
Change in Net Assets from Capital
Transactions........................... $(127,185) $ (10,453) $ (83,633) $158,637 $ 410 $ 38,582
========= ========= ========= ======== ======== ========
Share Transactions:
I Shares
Issued................................. 10,604 14,111 11,026 19,102 4,657 8,504
Reinvested............................. 757 712 717 667 37 37
Redeemed............................... (18,995) (14,301) (19,413) (7,583) (4,027) (4,889)
--------- --------- --------- -------- -------- --------
Change in I Shares Transactions.... (7,634) 522 (7,670) 12,186 667 3,652
--------- --------- --------- -------- -------- --------
A Shares(1)
Issued................................. 311 509 785 246 243 721
Reinvested............................. 73 69 67 58 2 4
Redeemed............................... (1,484) (977) (1,175) (341) (714) (440)
--------- --------- --------- -------- -------- --------
Change in A Shares Transactions.... (1,100) (399) (323) (37) (469) 285
--------- --------- --------- -------- -------- --------
C Shares
Issued................................. 87 246 1,157 87 62 704
Reinvested............................. 25 22 19 58 -- 1
Redeemed............................... (1,152) (1,070) (1,205) (380) (436) (502)
--------- --------- --------- -------- -------- --------
Change in C Shares Transactions.... (1,040) (802) (29) (235) (374) 203
--------- --------- --------- -------- -------- --------
Change in Share Transactions............. (9,774) (679) (8,022) 11,914 (176) 4,140
========= ========= ========= ======== ======== ========
<Caption>
Mid-Cap Value
Equity Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued............ $ 82,778 $ 59,139 $ 49,725
Dividends Reinvested................... 10,665 692 224
Cost of Shares Redeemed................ (73,941) (18,975) (32,636)
-------- -------- --------
Change in Net Assets from I Shares
Transactions..................... $ 19,502 $ 40,856 $ 17,313
-------- -------- --------
A Shares(1)
Proceeds from Shares Issued............ $ 1,345 $ 1,766 $ 781
Dividends Reinvested................... 187 7 --
Cost of Shares Redeemed................ (970) (794) (195)
-------- -------- --------
Change in Net Assets from A Shares
Transactions..................... $ 562 $ 979 $ 586
-------- -------- --------
C Shares
Proceeds from Shares Issued............ $ 344 $ 930 $ 3,478
Dividends Reinvested................... 576 30 1
Cost of Shares Redeemed................ (1,913) (2,839) (3,028)
-------- -------- --------
Change in Net Assets from C Shares
Transactions..................... $ (993) $ (1,879) $ 451
-------- -------- --------
Change in Net Assets from Capital
Transactions........................... $ 19,071 $ 39,956 $ 18,350
======== ======== ========
Share Transactions:
I Shares
Issued................................. 6,541 5,209 5,128
Reinvested............................. 871 59 23
Redeemed............................... (5,921) (1,664) (3,302)
-------- -------- --------
Change in I Shares Transactions.... 1,491 3,604 1,849
-------- -------- --------
A Shares(1)
Issued................................. 107 153 75
Reinvested............................. 15 1 --
Redeemed............................... (77) (69) (19)
-------- -------- --------
Change in A Shares Transactions.... 45 85 56
-------- -------- --------
C Shares
Issued................................. 27 82 364
Reinvested............................. 48 3 --
Redeemed............................... (152) (244) (310)
-------- -------- --------
Change in C Shares Transactions.... (77) (159) 54
-------- -------- --------
Change in Share Transactions............. 1,459 3,530 1,959
======== ======== ========
</Table>
(1) A Shares were offered beginning on October 27, 2003 for the Mid-Cap Value
Equity Fund.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
106
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Quality Growth Small Cap
Stock Fund Growth Stock Fund
---------------------------------- ------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- ---------- ---------- ---------
Operations:
Net Investment Income
(Loss)................ $ (276) $ 187 $ (1,885) $ (9,311) $ (3,979) $ (7,285)
Net Realized Gain on
Investments Sold...... 17,605 26,996 31,183 129,014 105,648 145,086
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... (7,295) (21,017) 2,584 224,874 (13,579) 80,171
-------- -------- --------- ---------- ---------- --------
Change in Net Assets
from Operations....... 10,034 6,166 31,882 344,577 88,090 217,972
-------- -------- --------- ---------- ---------- --------
Dividends and
Distributions to
Shareholders:
Net Investment Income:
I Shares.............. (463) (178) -- -- -- --
A Shares.............. (2) (1) -- -- -- --
C Shares.............. (64) -- -- -- -- --
Net Realized Gains:
I Shares.............. -- -- -- (105,684) (95,566) --
A Shares.............. -- -- -- (3,574) (5,207) --
C Shares.............. -- -- -- (2,682) (4,471) --
-------- -------- --------- ---------- ---------- --------
Total Dividends and
Distributions......... (529) (179) -- (111,940) (105,244) --
-------- -------- --------- ---------- ---------- --------
Change in Net Assets
from Capital
Transactions.......... (53,743)(a) (76,451) (102,333) 490,131(b) 161,611 37,420
-------- -------- --------- ---------- ---------- --------
Change in Net Assets.. (44,238) (70,464) (70,451) 722,768 144,457 255,392
-------- -------- --------- ---------- ---------- --------
Net Assets:
Beginning of Period..... 167,599 238,063 308,514 1,015,051 870,594 615,202
-------- -------- --------- ---------- ---------- --------
End of Period........... $123,361 $167,599 $ 238,063 $1,737,819 $1,015,051 $870,594
======== ======== ========= ========== ========== ========
Accumulated Net Investment
Income (Loss), End of
Period.................. $ -- $ 528 $ (1,149) $ -- $ -- $ --
======== ======== ========= ========== ========== ========
<Caption>
Small Cap
Value Equity Fund
----------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Operations:
Net Investment Income
(Loss)................ $ 3,550 $ 1,274 $ 2,067
Net Realized Gain on
Investments Sold...... 190,190 68,368 66,912
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... 10,943 51,510 113,873
--------- -------- --------
Change in Net Assets
from Operations....... 204,683 121,152 182,852
--------- -------- --------
Dividends and
Distributions to
Shareholders:
Net Investment Income:
I Shares.............. (3,434) (2,046) (2,433)
A Shares.............. (13) (5) --
C Shares.............. (118) (18) (5)
Net Realized Gains:
I Shares.............. (142,285) (54,153) --
A Shares.............. (974) (303) --
C Shares.............. (8,202) (3,428) --
--------- -------- --------
Total Dividends and
Distributions......... (155,026) (59,953) (2,438)
--------- -------- --------
Change in Net Assets
from Capital
Transactions.......... (11,427)(a) (18,862) (99)
--------- -------- --------
Change in Net Assets.. 38,230 42,337 180,315
--------- -------- --------
Net Assets:
Beginning of Period..... 775,184 732,847 552,532
--------- -------- --------
End of Period........... $ 813,414 $775,184 $732,847
========= ======== ========
Accumulated Net Investment
Income (Loss), End of
Period.................. $ 273 $ 288 $ 1,083
========= ======== ========
</Table>
(a)Redemption fees have been rounded to $0.
(b)Includes redemption fees collected of $4.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
107
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Quality Growth Small Cap
Stock Fund Growth Stock Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued...... $ 7,349 $ 3,796 $ 10,614 $ 836,404 $ 280,968 $ 208,034
Dividends Reinvested............. 68 26 -- 86,652 70,587 --
Cost of Shares Redeemed.......... (37,892) (53,299) (84,727) (441,501) (185,101) (187,311)
-------- -------- --------- --------- --------- ---------
Change in Net Assets from I
Shares Transactions........ $(30,475) $(49,477) $ (74,113) $ 481,555 $ 166,454 $ 20,723
-------- -------- --------- --------- --------- ---------
A Shares(1)
Proceeds from Shares Issued...... $ 582 $ 990 $ 664 $ 19,918 $ 16,113 $ 18,285
Dividends Reinvested............. 1 1 -- 3,405 5,004 --
Cost of Shares Redeemed.......... (825) (707) (318) (10,408) (21,911) (7,136)
-------- -------- --------- --------- --------- ---------
Change in Net Assets from A
Shares Transactions........ $ (242) $ 284 $ 346 $ 12,915 $ (794) $ 11,149
-------- -------- --------- --------- --------- ---------
C Shares
Proceeds from Shares Issued...... $ 550 $ 694 $ 4,890 $ 2,166 $ 2,010 $ 14,012
Dividends Reinvested............. 59 -- -- 2,539 4,297 --
Cost of Shares Redeemed.......... (23,635) (27,952) (33,456) (9,044) (10,356) (8,464)
-------- -------- --------- --------- --------- ---------
Change in Net Assets from C
Shares Transactions........ $(23,026) $(27,258) $ (28,566) $ (4,339) $ (4,049) $ 5,548
-------- -------- --------- --------- --------- ---------
Change in Net Assets from Capital
Transactions..................... $(53,743) $(76,451) $(102,333) $ 490,131 $ 161,611 $ 37,420
======== ======== ========= ========= ========= =========
Share Transactions:
I Shares
Issued........................... 290 161 474 38,694 13,718 11,405
Reinvested....................... 3 1 -- 4,066 3,464 --
Redeemed......................... (1,509) (2,270) (3,816) (20,410) (9,120) (9,774)
-------- -------- --------- --------- --------- ---------
Change in I Shares
Transactions............... (1,216) (2,108) (3,342) 22,350 8,062 1,631
-------- -------- --------- --------- --------- ---------
A Shares(1)
Issued........................... 23 42 29 944 795 960
Reinvested....................... -- -- -- 164 251 --
Redeemed......................... (33) (30) (13) (498) (1,092) (381)
-------- -------- --------- --------- --------- ---------
Change in A Shares
Transactions............... (10) 12 16 610 (46) 579
-------- -------- --------- --------- --------- ---------
C Shares
Issued........................... 24 31 235 110 105 812
Reinvested....................... 3 -- -- 131 227 --
Redeemed......................... (1,016) (1,253) (1,562) (466) (540) (467)
-------- -------- --------- --------- --------- ---------
Change in C Shares
Transactions............... (989) (1,222) (1,327) (225) (208) 345
-------- -------- --------- --------- --------- ---------
Change in Share Transactions....... (2,215) (3,318) (4,653) 22,735 7,808 2,555
======== ======== ========= ========= ========= =========
<Caption>
Small Cap
Value Equity Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued...... $ 173,077 $ 100,626 $ 194,843
Dividends Reinvested............. 106,300 36,386 1,303
Cost of Shares Redeemed.......... (290,041) (149,795) (200,738)
--------- --------- ---------
Change in Net Assets from I
Shares Transactions........ $ (10,664) $ (12,783) $ (4,592)
--------- --------- ---------
A Shares(1)
Proceeds from Shares Issued...... $ 1,825 $ 4,273 $ 5,183
Dividends Reinvested............. 644 241 --
Cost of Shares Redeemed.......... (2,054) (4,286) (1,130)
--------- --------- ---------
Change in Net Assets from A
Shares Transactions........ $ 415 $ 228 $ 4,053
--------- --------- ---------
C Shares
Proceeds from Shares Issued...... $ 696 $ 864 $ 11,644
Dividends Reinvested............. 7,953 3,288 5
Cost of Shares Redeemed.......... (9,827) (10,459) (11,209)
--------- --------- ---------
Change in Net Assets from C
Shares Transactions........ $ (1,178) $ (6,307) $ 440
--------- --------- ---------
Change in Net Assets from Capital
Transactions..................... $ (11,427) $ (18,862) $ (99)
========= ========= =========
Share Transactions:
I Shares
Issued........................... 8,501 5,177 12,101
Reinvested....................... 5,755 1,847 87
Redeemed......................... (14,423) (7,794) (12,580)
--------- --------- ---------
Change in I Shares
Transactions............... (167) (770) (392)
--------- --------- ---------
A Shares(1)
Issued........................... 89 219 290
Reinvested....................... 35 12 --
Redeemed......................... (102) (222) (65)
--------- --------- ---------
Change in A Shares
Transactions............... 22 9 225
--------- --------- ---------
C Shares
Issued........................... 35 45 759
Reinvested....................... 442 170 --
Redeemed......................... (496) (549) (695)
--------- --------- ---------
Change in C Shares
Transactions............... (19) (334) 64
--------- --------- ---------
Change in Share Transactions....... (164) (1,095) (103)
========= ========= =========
</Table>
(1) A Shares were offered beginning on October 27, 2003 and October 9, 2003 for
the Quality Growth Stock Fund and Small Cap Value Equity Fund, respectively.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
108
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Strategic Quantitative Equity Fund Balanced Fund
---------------------------------- ----------------------------------
04/01/05- 06/01/04- 08/07/03*- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- ---------- --------- --------- ---------
Operations:
Net Investment Income (Loss).... $ 93 $ (143) $ (90) $ 3,022 $ 3,638 $ 4,071
Capital Gain Received from
Investments in Affiliated
Investment Companies.......... -- -- -- -- -- --
Net Realized Gain on Investments
Sold.......................... 10,158 11,057 3,973 9,135 8,294 26,469
Net Change in Unrealized
Appreciation (Depreciation) on
Investments................... 9,471 1,327 3,104 (2,870) (2,297) (17,586)
Net Increase from Payments by
Affiliates.................... -- -- -- 71 -- --
-------- ------- ------- --------- -------- --------
Change in Net Assets from
Operations.................... 19,722 12,241 6,987 9,358 9,635 12,954
-------- ------- ------- --------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares...................... (60) -- -- (2,575) (3,918) (3,826)
A Shares...................... -- -- -- (101) (130) (114)
C Shares...................... -- -- -- (312) (382) (403)
B Shares......................
Net Realized Gains:
I Shares...................... (12,525) (4,730) (972) (8,598) (2,083) --
A Shares...................... (77) (16) (1) (380) (83) --
C Shares...................... (118) (90) (21) (2,237) (485) --
B Shares......................
-------- ------- ------- --------- -------- --------
Total Dividends and
Distributions................. (12,780) (4,836) (994) (14,203)(a) (7,081) (4,343)
-------- ------- ------- --------- -------- --------
Change in Net Assets from
Capital Transactions.......... 185,415 19,124 62,547 (139,394) (70,534) 5,441
-------- ------- ------- --------- -------- --------
Change in Net Assets.......... 192,357 26,529 68,540 (144,239) (67,980) 14,052
-------- ------- ------- --------- -------- --------
Net Assets:
Beginning of Period............. 95,069 68,540 -- 250,399 318,379 304,327
-------- ------- ------- --------- -------- --------
End of Period................... $287,426 $95,069 $68,540 $ 106,160 $250,399 $318,379
======== ======= ======= ========= ======== ========
Accumulated Net Investment Income
(Loss), End of Period........... $ 14 $ (19) $ (18) $ 189 $ 149 $ 893
======== ======= ======= ========= ======== ========
<Caption>
Life Vision Aggressive Growth Fund
------------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
---------- ---------- ----------
Operations:
Net Investment Income (Loss).... $ 650 $ 484 $ 124
Capital Gain Received from
Investments in Affiliated
Investment Companies.......... 1,091 534 --
Net Realized Gain on Investments
Sold.......................... 959 478 325
Net Change in Unrealized
Appreciation (Depreciation) on
Investments................... 4,463 2,602 6,169
Net Increase from Payments by
Affiliates.................... -- -- --
------- ------- -------
Change in Net Assets from
Operations.................... 7,163 4,098 6,618
------- ------- -------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares...................... (583) (447) (120)
A Shares...................... (22) (15) --
C Shares...................... (5) --
B Shares...................... (42) (29) (4)
Net Realized Gains: (12)
I Shares...................... (519) -- --
A Shares...................... (26) -- --
C Shares...................... (8) -- --
B Shares...................... (64) -- --
------- ------- -------
Total Dividends and
Distributions................. (1,269) (491) (136)
------- ------- -------
Change in Net Assets from
Capital Transactions.......... 5,577 3,506 7,487
------- ------- -------
Change in Net Assets.......... 11,471 7,113 13,969
------- ------- -------
Net Assets:
Beginning of Period............. 50,815 43,702 29,733
------- ------- -------
End of Period................... $62,286 $50,815 $43,702
======= ======= =======
Accumulated Net Investment Income
(Loss), End of Period........... $ 1 $ 1 $ --
======= ======= =======
</Table>
* Commencement of operations.
(a)Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
109
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Strategic Quantitative
Equity Fund Balanced Fund
---------------------------------- ---------------------------------
04/01/05- 06/01/04- 08/07/03*- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- ---------- --------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued.............. $220,812 $ 30,156 $63,961 $ 30,214 $ 35,927 $ 70,058
Dividends Reinvested..................... 4,633 2,338 655 10,973 5,707 3,612
Cost of Shares Redeemed.................. (40,814) (13,347) (3,492) (163,733) (91,992) (64,462)
-------- -------- ------- --------- -------- --------
Change in Net Assets from I Shares
Transactions....................... $184,631 $ 19,147 $60,854 $(122,546) $(50,358) $ 9,208
-------- -------- ------- --------- -------- --------
A Shares(1)
Proceeds from Shares Issued.............. $ 904 $ 226 $ 156 $ 259 $ 958 $ 2,139
Dividends Reinvested..................... 68 12 1 473 211 112
Cost of Shares Redeemed.................. (212) (9) (3) (3,423) (1,437) (1,862)
-------- -------- ------- --------- -------- --------
Change in Net Assets from A Shares
Transactions....................... $ 760 $ 229 $ 154 $ (2,691) $ (268) $ 389
-------- -------- ------- --------- -------- --------
C Shares(2)
Proceeds from Shares Issued.............. $ 467 $ 139 $ 1,627 $ 816 $ 1,374 $ 18,913
Dividends Reinvested..................... 111 79 19 2,443 826 376
Cost of Shares Redeemed.................. (554) (470) (107) (17,416) (22,108) (23,445)
-------- -------- ------- --------- -------- --------
Change in Net Assets from C Shares
Transactions....................... $ 24 $ (252) $ 1,539 $ (14,157) $(19,908) $ (4,156)
-------- -------- ------- --------- -------- --------
B Shares
Proceeds from Shares Issued..............
Dividends Reinvested.....................
Cost of Shares Redeemed..................
Change in Net Assets from B Shares
Transactions.......................
Change in Net Assets from Capital
Transactions............................. $185,415 $ 19,124 $62,547 $(139,394) $(70,534) $ 5,441
======== ======== ======= ========= ======== ========
Share Transactions:
I Shares
Issued................................... 16,302 2,392 5,767 2,483 2,927 5,833
Reinvested............................... 353 182 58 923 459 299
Redeemed................................. (2,988) (1,068) (296) (13,467) (7,420) (5,342)
-------- -------- ------- --------- -------- --------
Change in I Shares Transactions...... 13,667 1,506 5,529 (10,061) (4,034) 790
-------- -------- ------- --------- -------- --------
A Shares(1)
Issued................................... 67 18 13 21 78 176
Reinvested............................... 5 1 -- 40 17 9
Redeemed................................. (16) (1) -- (278) (116) (152)
-------- -------- ------- --------- -------- --------
Change in A Shares Transactions...... 56 18 13 (217) (21) 33
-------- -------- ------- --------- -------- --------
C Shares(2)
Issued................................... 35 12 138 67 112 1,596
Reinvested............................... 9 6 2 208 67 31
Redeemed................................. (42) (37) (9) (1,441) (1,806) (1,944)
-------- -------- ------- --------- -------- --------
Change in C Shares Transactions...... 2 (19) 131 (1,166) (1,627) (317)
-------- -------- ------- --------- -------- --------
B Shares
Issued...................................
Reinvested...............................
Redeemed.................................
Change from B Shares Transactions....
Change in Share Transactions............... 13,725 1,505 5,673 (11,444) (5,682) 506
======== ======== ======= ========= ======== ========
<Caption>
Life Vision
Aggressive Growth Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares
Proceeds from Shares Issued.............. $ 15,960 $ 8,047 $ 8,576
Dividends Reinvested..................... 1,089 445 132
Cost of Shares Redeemed.................. (12,553) (6,786) (4,939)
-------- ------- -------
Change in Net Assets from I Shares
Transactions....................... $ 4,496 $ 1,706 $ 3,769
-------- ------- -------
A Shares(1)
Proceeds from Shares Issued.............. $ 957 $ 1,337 $ 858
Dividends Reinvested..................... 46 15 --
Cost of Shares Redeemed.................. (711) (254) --
-------- ------- -------
Change in Net Assets from A Shares
Transactions....................... $ 292 $ 1,098 $ 858
-------- ------- -------
C Shares(2)
Proceeds from Shares Issued.............. $ 1,184
Dividends Reinvested..................... 13
Cost of Shares Redeemed.................. (120)
--------
Change in Net Assets from C Shares
Transactions....................... $ 1,077
--------
B Shares
Proceeds from Shares Issued.............. $ 401 $ 994 $ 3,147
Dividends Reinvested..................... 104 29 4
Cost of Shares Redeemed.................. (793) (321) (291)
-------- ------- -------
Change in Net Assets from B Shares
Transactions....................... $ (288) $ 702 $ 2,860
-------- ------- -------
Change in Net Assets from Capital
Transactions............................. $ 5,577 $ 3,506 $ 7,487
======== ======= =======
Share Transactions:
I Shares
Issued................................... 1,378 751 894
Reinvested............................... 92 40 14
Redeemed................................. (1,098) (636) (509)
-------- ------- -------
Change in I Shares Transactions...... 372 155 399
-------- ------- -------
A Shares(1)
Issued................................... 84 126 85
Reinvested............................... 4 1 --
Redeemed................................. (63) (24) --
-------- ------- -------
Change in A Shares Transactions...... 25 103 85
-------- ------- -------
C Shares(2)
Issued................................... 102
Reinvested............................... 1
Redeemed................................. (10)
--------
Change in C Shares Transactions...... 93
--------
B Shares
Issued................................... 36 95 334
Reinvested............................... 9 3 1
Redeemed................................. (69) (31) (29)
-------- ------- -------
Change from B Shares Transactions.... (24) 67 306
-------- ------- -------
Change in Share Transactions............... 466 325 790
======== ======= =======
</Table>
* Commencement of operations.
(1) A Shares were offered beginning on October 8, 2003 and October 16, 2003 for
the Strategic Quantitative Equity Fund and Life Vision Aggressive Growth
Fund, respectively.
(2) C Shares were offered beginning on October 13, 2003 and April 1, 2005 for
the Strategic Quantitative Equity Fund and Life Vision Aggressive Growth
Fund, respectively.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
110
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Life Vision Conservative Fund Life Vision Growth and Income Fund
--------------------------------- ------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- ---------- ---------- ----------
Operations:
Net Investment Income............. $ 262 $ 114 $ 61 $ 2,089 $ 1,426 $ 1,051
Capital Gain Received from
Investments in Affiliated
Investment Companies............ 67 31 1 1,834 873 8
Net Realized Gain on Investments
Sold............................ 28 22 9 1,961 1,933 2,565
Net Change in Unrealized
Appreciation (Depreciation) on
Investments..................... 20 93 95 6,195 3,161 8,207
------- ------ ------ -------- -------- -------
Change in Net Assets from
Operations...................... 377 260 166 12,079 7,393 11,831
------- ------ ------ -------- -------- -------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................ (74) (6) -- (1,750) (1,371) (972)
A Shares........................ (36) (10) (3) (83) (37) (5)
C Shares........................ (17) -- -- (21) -- --
B Shares........................ (128) (106) (47) (204) (142) (58)
Net Realized Gains:
I Shares........................ (14) (1) -- -- -- --
A Shares........................ (7) (1) -- -- -- --
C Shares........................ (4) -- -- -- -- --
B Shares........................ (29) (19) -- -- -- --
------- ------ ------ -------- -------- -------
Total Dividends and
Distributions................... (309) (143) (50) (2,058) (1,550) (1,035)
------- ------ ------ -------- -------- -------
Change in Net Assets from Capital
Transactions.................... 3,691 1,022 4,600 6,593(a) 12,324 17,307
------- ------ ------ -------- -------- -------
Change in Net Assets............ 3,759 1,139 4,716 16,614 18,167 28,103
------- ------ ------ -------- -------- -------
Net Assets:
Beginning of Period............... 6,655 5,516 800 107,736 89,569 61,466
------- ------ ------ -------- -------- -------
End of Period..................... $10,414 $6,655 $5,516 $124,350 $107,736 $89,569
======= ====== ====== ======== ======== =======
Accumulated Net Investment Income,
End of Period..................... $ 11 $ 4 $ 12 $ 40 $ 9 $ 133
======= ====== ====== ======== ======== =======
<Caption>
Life Vision Moderate Growth Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Operations:
Net Investment Income............. $ 4,178 $ 2,791 $ 1,907
Capital Gain Received from
Investments in Affiliated
Investment Companies............ 1,945 1,309 12
Net Realized Gain on Investments
Sold............................ 3,257 4,204 2,529
Net Change in Unrealized
Appreciation (Depreciation) on
Investments..................... 3,923 1,375 9,804
-------- -------- --------
Change in Net Assets from
Operations...................... 13,303 9,679 14,252
-------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................ (3,669) (2,776) (1,737)
A Shares........................ (157) (102) (19)
C Shares........................ (20) -- --
B Shares........................ (266) (203) (90)
Net Realized Gains:
I Shares........................ (3,087) (682) --
A Shares........................ (163) (26) --
C Shares........................ (26) -- --
B Shares........................ (315) (71) --
-------- -------- --------
Total Dividends and
Distributions................... (7,703) (3,860) (1,846)
-------- -------- --------
Change in Net Assets from Capital
Transactions.................... 18,789(a) 11,225 29,617
-------- -------- --------
Change in Net Assets............ 24,389 17,044 42,023
-------- -------- --------
Net Assets:
Beginning of Period............... 155,480 138,436 96,413
-------- -------- --------
End of Period..................... $179,869 $155,480 $138,436
======== ======== ========
Accumulated Net Investment Income,
End of Period..................... $ 116 $ 50 $ 340
======== ======== ========
</Table>
(a)Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
111
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Life Vision Life Vision Growth
Conservative Fund and Income Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares(1)
Proceeds from Shares Issued................ $3,189 $ 555 $ 30 $ 28,839 $ 17,841 $ 22,469
Dividends Reinvested....................... 84 6 -- 1,747 1,371 971
Cost of Shares Redeemed.................... (613) (176) -- (28,075) (11,550) (17,771)
------ ------ ------- -------- -------- --------
Change in Net Assets from I Shares
Transactions......................... $2,660 $ 385 $ 30 $ 2,511 $ 7,662 $ 5,669
------ ------ ------- -------- -------- --------
A Shares(2)
Proceeds from Shares Issued................ $ 717 $ 302 $ 485 $ 2,726 $ 2,267 $ 1,432
Dividends Reinvested....................... 34 7 2 82 37 5
Cost of Shares Redeemed.................... (42) (185) (10) (1,078) (316) (24)
------ ------ ------- -------- -------- --------
Change in Net Assets from A Shares
Transactions......................... $ 709 $ 124 $ 477 $ 1,730 $ 1,988 $ 1,413
------ ------ ------- -------- -------- --------
C Shares(3)
Proceeds from Shares Issued................ $ 930 $ 3,013
Dividends Reinvested....................... 18 20
Cost of Shares Redeemed.................... (115) (342)
------ --------
Change in Net Assets from C Shares
Transactions......................... $ 833 $ 2,691
------ --------
B Shares
Proceeds from Shares Issued................ $ 120 $ 611 $ 4,680 $ 1,586 $ 4,275 $ 10,738
Dividends Reinvested....................... 133 106 40 193 134 54
Cost of Shares Redeemed.................... (764) (204) (627) (2,118) (1,735) (567)
------ ------ ------- -------- -------- --------
Change in Net Assets from B Shares
Transactions......................... $ (511) $ 513 $ 4,093 $ (339) $ 2,674 $ 10,225
------ ------ ------- -------- -------- --------
Change in Net Assets from Capital
Transactions............................... $3,691 $1,022 $ 4,600 $ 6,593 $ 12,324 $ 17,307
====== ====== ======= ======== ======== ========
Share Transactions:
I Shares(1)
Issued..................................... 284 49 3 2,447 1,614 2,228
Reinvested................................. 8 1 -- 146 122 95
Redeemed................................... (55) (16) -- (2,382) (1,041) (1,716)
------ ------ ------- -------- -------- --------
Change in I Shares Transactions........ 237 34 3 211 695 607
------ ------ ------- -------- -------- --------
A Shares(2)
Issued..................................... 64 27 45 232 206 135
Reinvested................................. 3 1 -- 7 3 --
Redeemed................................... (4) (17) (1) (91) (28) (2)
------ ------ ------- -------- -------- --------
Change in A Shares Transactions........ 63 11 44 148 181 133
------ ------ ------- -------- -------- --------
C Shares(3)
Issued..................................... 83 254
Reinvested................................. 2 2
Redeemed................................... (10) (28)
------ --------
Change in C Shares Transactions........ 75 228
------ --------
B Shares
Issued..................................... 11 56 438 138 390 1,049
Reinvested................................. 12 10 4 16 12 5
Redeemed................................... (68) (19) (58) (179) (157) (54)
------ ------ ------- -------- -------- --------
Change from B Shares Transactions...... (45) 47 384 (25) 245 1,000
------ ------ ------- -------- -------- --------
Change in Share Transactions................. 330 92 431 562 1,121 1,740
====== ====== ======= ======== ======== ========
<Caption>
Life Vision
Moderate Growth Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares(1)
Proceeds from Shares Issued................ $ 52,916 $ 29,536 $ 45,870
Dividends Reinvested....................... 6,685 3,448 1,730
Cost of Shares Redeemed.................... (38,674) (27,216) (31,191)
-------- -------- --------
Change in Net Assets from I Shares
Transactions......................... $ 20,927 $ 5,768 $ 16,409
-------- -------- --------
A Shares(2)
Proceeds from Shares Issued................ $ 2,619 $ 4,620 $ 4,397
Dividends Reinvested....................... 311 124 18
Cost of Shares Redeemed.................... (5,501) (247) (898)
-------- -------- --------
Change in Net Assets from A Shares
Transactions......................... $ (2,571) $ 4,497 $ 3,517
-------- -------- --------
C Shares(3)
Proceeds from Shares Issued................ $ 1,691
Dividends Reinvested....................... 43
Cost of Shares Redeemed.................... (92)
--------
Change in Net Assets from C Shares
Transactions......................... $ 1,642
--------
B Shares
Proceeds from Shares Issued................ $ 620 $ 1,819 $ 10,808
Dividends Reinvested....................... 561 265 87
Cost of Shares Redeemed.................... (2,390) (1,124) (1,204)
-------- -------- --------
Change in Net Assets from B Shares
Transactions......................... $ (1,209) $ 960 $ 9,691
-------- -------- --------
Change in Net Assets from Capital
Transactions............................... $ 18,789 $ 11,225 $ 29,617
======== ======== ========
Share Transactions:
I Shares(1)
Issued..................................... 4,953 2,836 4,736
Reinvested................................. 625 330 179
Redeemed................................... (3,619) (2,620) (3,218)
-------- -------- --------
Change in I Shares Transactions........ 1,959 546 1,697
-------- -------- --------
A Shares(2)
Issued..................................... 246 439 440
Reinvested................................. 29 12 2
Redeemed................................... (517) (24) (90)
-------- -------- --------
Change in A Shares Transactions........ (242) 427 352
-------- -------- --------
C Shares(3)
Issued..................................... 160
Reinvested................................. 4
Redeemed................................... (9)
--------
Change in C Shares Transactions........ 155
--------
B Shares
Issued..................................... 59 179 1,135
Reinvested................................. 53 25 9
Redeemed................................... (226) (109) (123)
-------- -------- --------
Change from B Shares Transactions...... (114) 95 1,021
-------- -------- --------
Change in Share Transactions................. 1,758 1,068 3,070
======== ======== ========
</Table>
(1) I Shares were offered beginning on November 6, 2003 for the Life Vision
Conservative Fund.
(2) A Shares were offered beginning on November 11, 2003, November 5, 2003 and
October 10, 2003 for the Life Vision Conservative Fund, Life Vision Growth
and Income Fund and Life Vision Moderate Growth Fund, respectively.
(3) C Shares were offered beginning on April 1, 2005 for the Life Vision
Conservative Fund, the Life Vision Growth and Income Fund and Life Vision
Moderate Growth Fund.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
112
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Life Vision Target Life Vision Target Life Vision Target
Date 2015 Fund Date 2025 Fund Date 2035 Fund
------------------ ------------------ ------------------
10/12/05-* 10/21/05-* 11/02/05-*
03/31/06 03/31/06 03/31/06
------------------ ------------------ ------------------
Operations:
Net Investment Income..................................... $ 3 $ 3 $ 3
Capital Gain Received from Investments in Affiliated
Investment Companies.................................... 3 2 4
Net Realized Gain on Investments Sold..................... -- -- 1
Net Change in Unrealized Appreciation on Investments...... 11 18 17
---- ------ ----
Change in Net Assets from Operations...................... 17 23 25
---- ------ ----
Dividends and Distributions to Shareholders:
Net Investment Income:
I Shares................................................ (2) (2) (3)
---- ------ ----
Total Dividends and Distributions......................... (2) (2) (3)
---- ------ ----
Change in Net Assets from Capital Transactions............ 255 1,089 568
---- ------ ----
Change in Net Assets.................................... 270 1,110 590
---- ------ ----
Net Assets:
Beginning of Period....................................... -- -- --
---- ------ ----
End of Period............................................. $270 $1,110 $590
==== ====== ====
Accumulated Net Investment Income (Loss), End of Period..... $ 1 $ 1 $ --
==== ====== ====
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
113
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Life Vision Target Life Vision Target Life Vision Target
Date 2015 Fund Date 2025 Fund Date 2035 Fund
------------------ ------------------ ------------------
10/12/05*- 10/21/05*- 11/02/05*-
03/31/06 03/31/06 03/31/06
------------------ ------------------ ------------------
Capital Transactions
I Shares
Proceeds from Shares Issued............................... $255 $1,096 $634
Dividends Reinvested...................................... 2 2 3
Cost of Shares Redeemed................................... (2) (9) (69)
---- ------ ----
Change in Net Assets from I Shares Transactions....... $255 $1,089 $568
---- ------ ----
Change in Net Assets from Capital Transactions.............. $255 $1,089 $568
==== ====== ====
Share Transactions:
I Shares
Issued.................................................... 25 101 61
Reinvested................................................ -- -- --
Redeemed.................................................. -- (1) (7)
---- ------ ----
Change in I Shares Transactions....................... 25 100 54
---- ------ ----
Change in Share Transactions................................ 25 100 54
==== ====== ====
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
114
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
AGGRESSIVE GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 $ 9.89 $(0.07)(a) $ 2.42(a) $ 2.35 $ --* $ -- $ --*
Period Ended March 31, 2005 10.00 (0.06)(a) (0.05)(a) (0.11) -- -- --
Period Ended May 31, 2004(b) 10.00 (0.02)(a) 0.02(a) -- -- -- --
A Shares
Year Ended March 31, 2006 9.84 (0.10)(a) 2.42(a) 2.32 -- -- --
Period Ended March 31, 2005 9.99 (0.09)(a) (0.06)(a) (0.15) -- -- --
Period Ended May 31, 2004(b) 10.00 (0.03)(a) 0.02(a) (0.01) -- -- --
C Shares
Year Ended March 31, 2006 9.78 (0.17)(a) 2.39(a) 2.22 -- -- --
Period Ended March 31, 2005 9.97 (0.15)(a) (0.04)(a) (0.19) -- -- --
Period Ended May 31, 2004(b) 10.00 (0.04)(a) 0.01(a) (0.03) -- -- --
CAPITAL APPRECIATION FUND
I Shares
Year Ended March 31, 2006 12.22 0.03(a) 0.86(a) 0.89 (0.02) (0.26) (0.28)
Period Ended March 31, 2005 12.33 0.03(a) 0.07(a) 0.10 (0.03) (0.18) (0.21)
Year Ended May 31, 2004 11.02 (0.03)(a) 1.34(a) 1.31 -- -- --
Year Ended May 31, 2003 12.24 (0.03)(a) (1.19)(a) (1.22) -- -- --
Year Ended May 31, 2002 13.89 -- (1.53) (1.53) -- (0.12) (0.12)
Year Ended May 31, 2001 17.12 (0.05) (0.38) (0.43) -- (2.80) (2.80)
A Shares
Year Ended March 31, 2006 11.66 (0.03)(a) 0.83(a) 0.80 -- (0.26) (0.26)
Period Ended March 31, 2005 11.82 (0.04)(a) 0.06(a) 0.02 -- (0.18) (0.18)
Year Ended May 31, 2004 10.63 (0.10)(a) 1.29(a) 1.19 -- -- --
Year Ended May 31, 2003 11.89 (0.10)(a) (1.16)(a) (1.26) -- -- --
Year Ended May 31, 2002 13.59 (0.10) (1.48) (1.58) -- (0.12) (0.12)
Year Ended May 31, 2001 16.91 (0.14) (0.38) (0.52) -- (2.80) (2.80)
C Shares
Year Ended March 31, 2006 11.04 (0.09)(a) 0.77(a) 0.68 -- (0.26) (0.26)
Period Ended March 31, 2005 11.22 (0.07)(a) 0.07(a) -- -- (0.18) (0.18)
Year Ended May 31, 2004 10.15 (0.15)(a) 1.22(a) 1.07 -- -- --
Year Ended May 31, 2003 11.40 (0.14)(a) (1.11)(a) (1.25) -- -- --
Year Ended May 31, 2002 13.09 (0.06) (1.51) (1.57) -- (0.12) (0.12)
Year Ended May 31, 2001 16.45 (0.16) (0.40) (0.56) -- (2.80) (2.80)
EMERGING GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 9.38 (0.09)(a) 3.54(a) 3.45 -- -- --
Period Ended March 31, 2005 9.60 (0.08)(a) (0.14)(a) (0.22) -- -- --
Period Ended May 31, 2004(b) 10.00 (0.03)(a) (0.37)(a) (0.40) -- -- --
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
AGGRESSIVE GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 $12.24 23.77% $ 254,412 1.19% (0.61)% 1.23% 30%
Period Ended March 31, 2005 9.89 (1.10) 58,988 1.22 (0.79) 1.45 42
Period Ended May 31, 2004(b) 10.00 -- 20,501 1.22 (0.74) 1.61 2
A Shares
Year Ended March 31, 2006 12.16 23.58 331 1.50 (0.94) 1.55 30
Period Ended March 31, 2005 9.84 (1.50) 140 1.58 (1.14) 5.56 42
Period Ended May 31, 2004(b) 9.99 (0.10) 49 1.65 (1.25) 11.29+++ 2
C Shares
Year Ended March 31, 2006 12.00 22.70 5,223 2.17 (1.63) 2.27 30
Period Ended March 31, 2005 9.78 (1.91) 5,795 2.19 (1.75) 2.56 42
Period Ended May 31, 2004(b) 9.97 (0.30) 65 2.10 (1.69) 8.78+++ 2
CAPITAL APPRECIATION FUND
I Shares
Year Ended March 31, 2006 12.83 7.33 1,296,236 1.06 0.22 1.07 74
Period Ended March 31, 2005 12.22 0.76 1,493,213 1.19 0.31 1.21 72
Year Ended May 31, 2004 12.33 11.89 1,248,636 1.23 (0.25) 1.24 106
Year Ended May 31, 2003 11.02 (9.97) 1,090,549 1.22 (0.32) 1.24 69
Year Ended May 31, 2002 12.24 (11.06) 1,204,445 1.22 (0.54) 1.24 75
Year Ended May 31, 2001 13.89 (3.74) 1,177,933 1.21 (0.29) 1.24 75
A Shares
Year Ended March 31, 2006 12.20 6.97 104,733 1.50 (0.22) 1.50 74
Period Ended March 31, 2005 11.66 0.15 126,895 1.86 (0.38) 1.90 72
Year Ended May 31, 2004 11.82 11.19 145,883 1.88 (0.91) 2.00 106
Year Ended May 31, 2003 10.63 (10.60) 141,488 1.88 (0.98) 2.00 69
Year Ended May 31, 2002 11.89 (11.68) 163,155 1.88 (1.20) 1.99 75
Year Ended May 31, 2001 13.59 (4.38) 202,548 1.86 (0.94) 1.99 75
C Shares
Year Ended March 31, 2006 11.46 6.27 51,883 2.07 (0.79) 2.08 74
Period Ended March 31, 2005 11.04 (0.02) 75,786 2.21 (0.74) 2.24 72
Year Ended May 31, 2004 11.22 10.54 100,472 2.35 (1.38) 2.43 106
Year Ended May 31, 2003 10.15 (10.96) 94,505 2.35 (1.45) 2.45 69
Year Ended May 31, 2002 11.40 (12.05) 110,923 2.35 (1.67) 2.39 75
Year Ended May 31, 2001 13.09 (4.79) 112,497 2.33 (1.41) 2.39 75
EMERGING GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 12.83 36.78 48,369 1.20 (0.84) 1.24 107
Period Ended March 31, 2005 9.38 (2.29) 20,494 1.23 (1.03) 1.51 64
Period Ended May 31, 2004(b) 9.60 (4.00) 12,891 1.22 (1.04) 1.69 11
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
115
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
EMERGING GROWTH STOCK FUND
A Shares
Year Ended March 31, 2006 $ 9.34 $(0.13)(a) $ 3.53(a) $ 3.40 $ -- $ -- $ --
Period Ended March 31, 2005 9.59 (0.11)(a) (0.14)(a) (0.25) -- -- --
Period Ended May 31, 2004(b) 10.00 (0.04)(a) (0.37)(a) (0.41) -- -- --
C Shares
Year Ended March 31, 2006 9.29 (0.20)(a) 3.50(a) 3.30 -- -- --
Period Ended March 31, 2005 9.58 (0.15)(a) (0.14)(a) (0.29) -- -- --
Period Ended May 31, 2004(c) 10.14 (0.05)(a) (0.51)(a) (0.56) -- -- --
INTERNATIONAL EQUITY FUND
I Shares
Year Ended March 31, 2006 11.77 0.16 2.72 2.88 (0.16) -- (0.16)
Period Ended March 31, 2005 10.15 0.06 1.67 1.73 (0.11) -- (0.11)
Year Ended May 31, 2004 8.00 0.10(a) 2.19(a) 2.29 (0.14) -- (0.14)
Year Ended May 31, 2003 9.31 0.07 (1.32) (1.25) (0.06) -- (0.06)
Year Ended May 31, 2002 10.19 0.19 (1.07) (0.88) -- -- --
Year Ended May 31, 2001 12.56 -- (1.22) (1.22) (0.04) (1.11) (1.15)
A Shares
Year Ended March 31, 2006 11.64 0.11 2.70 2.81 (0.11) -- (0.11)
Period Ended March 31, 2005 10.03 0.01 1.67 1.68 (0.07) -- (0.07)
Year Ended May 31, 2004 7.92 0.04(a) 2.17(a) 2.21 (0.10) -- (0.10)
Year Ended May 31, 2003 9.21 0.04 (1.30) (1.26) (0.03) -- (0.03)
Year Ended May 31, 2002 10.11 0.14 (1.04) (0.90) -- -- --
Year Ended May 31, 2001 12.47 (0.02) (1.23) (1.25) -- (1.11) (1.11)
C Shares
Year Ended March 31, 2006 11.01 --* 2.57 2.57 -- -- --
Period Ended March 31, 2005 9.49 (0.02)(a) 1.54(a) 1.52 --* -- --*
Year Ended May 31, 2004 7.50 (0.01)(a) 2.06(a) 2.05 (0.06) -- (0.06)
Year Ended May 31, 2003 8.75 (0.01) (1.24) (1.25) -- -- --
Year Ended May 31, 2002 9.68 0.04 (0.97) (0.93) -- -- --
Year Ended May 31, 2001 12.06 (0.16) (1.11) (1.27) -- (1.11) (1.11)
INTERNATIONAL EQUITY INDEX FUND
I Shares
Year Ended March 31, 2006 12.83 0.25 2.94 3.19 (0.21) -- (0.21)
Period Ended March 31, 2005 11.11 0.08(a) 1.88(a) 1.96 (0.24) -- (0.24)
Year Ended May 31, 2004 8.39 0.14(a) 2.71(a) 2.85 (0.13) -- (0.13)
Year Ended May 31, 2003 9.76 0.10(a) (1.43)(a) (1.33) (0.04) -- (0.04)
Year Ended May 31, 2002 11.18 0.04 (1.43) (1.39) (0.03) -- (0.03)
Year Ended May 31, 2001 13.97 0.06 (2.69) (2.63) (0.07) (0.09) (0.16)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
EMERGING GROWTH STOCK FUND
A Shares
Year Ended March 31, 2006 $12.74 36.30% $ 227 1.51% (1.16)% 1.55% 107%
Period Ended March 31, 2005 9.34 (2.61) 86 1.59 (1.40) 6.91 64
Period Ended May 31, 2004(b) 9.59 (4.10) 39 1.65 (1.46) 13.36+++ 11
C Shares
Year Ended March 31, 2006 12.59 35.52 107 2.17 (1.82) 2.21 107
Period Ended March 31, 2005 9.29 (3.03) 34 2.11 (1.92) 13.65 64
Period Ended May 31, 2004(c) 9.58 (5.52) 34 2.11 (1.95) 18.36+++ 11
INTERNATIONAL EQUITY FUND
I Shares
Year Ended March 31, 2006 14.49 24.47# 926,845 1.31 1.40 1.32 59
Period Ended March 31, 2005 11.77 17.09 480,731 1.38 0.85 1.38 39
Year Ended May 31, 2004 10.15 28.64 332,180 1.41 1.08 1.41 58
Year Ended May 31, 2003 8.00 (13.40) 191,041 1.46 0.83 1.46 89
Year Ended May 31, 2002 9.31 (8.64) 252,991 1.48 0.48 1.48 102
Year Ended May 31, 2001 10.19 (10.79) 208,120 1.45 0.50 1.45 68
A Shares
Year Ended March 31, 2006 14.34 24.15# 11,805 1.62 1.14 1.63 59
Period Ended March 31, 2005 11.64 16.78 8,480 1.72 0.47 1.75 39
Year Ended May 31, 2004 10.03 29.97 7,056 1.83 0.46 2.06 58
Year Ended May 31, 2003 7.92 (13.70) 6,408 1.83 0.59 2.22 89
Year Ended May 31, 2002 9.21 (8.90) 5,272 1.83 (0.21) 2.08 102
Year Ended May 31, 2001 10.11 (11.13) 7,517 1.79 0.18 1.97 68
C Shares
Year Ended March 31, 2006 13.58 23.34# 8,584 2.31 0.51 2.32 59
Period Ended March 31, 2005 11.01 16.03 8,248 2.40 (0.21) 2.45 39
Year Ended May 31, 2004 9.49 27.32 7,606 2.53 (0.15) 2.86 58
Year Ended May 31, 2003 7.50 (14.29) 5,678 2.53 (0.17) 3.03 89
Year Ended May 31, 2002 8.75 (9.61) 6,567 2.53 (0.73) 2.93 102
Year Ended May 31, 2001 9.68 (11.71) 7,765 2.48 (0.51) 2.57 68
INTERNATIONAL EQUITY INDEX FUND
I Shares
Year Ended March 31, 2006 15.81 25.06# 774,008 0.76 1.84 0.78 7
Period Ended March 31, 2005 12.83 17.68 517,993 0.97 0.81 1.06 21
Year Ended May 31, 2004 11.11 34.07 351,163 0.98 1.38 1.07 10
Year Ended May 31, 2003 8.39 (13.63) 248,770 1.03 1.26 1.12 25
Year Ended May 31, 2002 9.76 (12.43) 287,944 1.04 0.63 1.12 35
Year Ended May 31, 2001 11.18 (18.90) 236,862 1.06 0.40 1.09 13
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
116
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
INTERNATIONAL EQUITY INDEX FUND
A Shares
Year Ended March 31, 2006 $12.69 $ 0.25 $ 2.87 $ 3.12 $(0.15) $ -- $(0.15)
Period Ended March 31, 2005 10.93 0.04(a) 1.84(a) 1.88 (0.12) -- (0.12)
Year Ended May 31, 2004 8.28 0.07(a) 2.68(a) 2.75 (0.10) -- (0.10)
Year Ended May 31, 2003 9.64 0.10(a) (1.45)(a) (1.35) (0.01) -- (0.01)
Year Ended May 31, 2002 11.05 (0.02) (1.38) (1.40) (0.01) -- (0.01)
Year Ended May 31, 2001 13.80 (0.01) (2.65) (2.66) -- (0.09) (0.09)
C Shares
Year Ended March 31, 2006 12.37 0.07 2.87 2.94 (0.02) -- (0.02)
Period Ended March 31, 2005 10.69 (0.02)(a) 1.80(a) 1.78 (0.10) -- (0.10)
Year Ended May 31, 2004 8.10 0.02(a) 2.62(a) 2.64 (0.05) -- (0.05)
Year Ended May 31, 2003 9.48 0.01(a) (1.39)(a) (1.38) -- -- --
Year Ended May 31, 2002 10.93 (0.12) (1.33) (1.45) -- -- --
Year Ended May 31, 2001 13.74 (0.06) (2.66) (2.72) -- (0.09) (0.09)
LARGE CAP RELATIVE VALUE FUND
I Shares
Year Ended March 31, 2006 16.07 0.18 1.83 2.01 (0.18) (0.70) (0.88)
Period Ended March 31, 2005 14.72 0.17 1.74 1.91 (0.18) (0.38) (0.56)
Year Ended May 31, 2004 12.21 0.14(a) 2.50(a) 2.64 (0.13) -- (0.13)
Year Ended May 31, 2003 13.80 0.13 (1.60) (1.47) (0.12) -- (0.12)
Year Ended May 31, 2002 15.05 0.09 (1.26) (1.17) (0.08) -- (0.08)
Year Ended May 31, 2001 15.53 0.07 (0.04) 0.03 (0.08) (0.43) (0.51)
A Shares
Year Ended March 31, 2006 16.21 0.14 1.85 1.99 (0.14) (0.70) (0.84)
Period Ended March 31, 2005 14.83 0.14 1.77 1.91 (0.15) (0.38) (0.53)
Year Ended May 31, 2004 12.31 0.12(a) 2.51(a) 2.63 (0.11) -- (0.11)
Year Ended May 31, 2003 13.91 0.11 (1.61) (1.50) (0.10) -- (0.10)
Year Ended May 31, 2002 15.17 0.06 (1.27) (1.21) (0.05) -- (0.05)
Year Ended May 31, 2001 15.65 0.04 (0.04) -- (0.05) (0.43) (0.48)
C Shares
Year Ended March 31, 2006 15.89 0.02 1.81 1.83 (0.02) (0.70) (0.72)
Period Ended March 31, 2005 14.54 0.03 1.74 1.77 (0.04) (0.38) (0.42)
Year Ended May 31, 2004 12.08 0.01(a) 2.47(a) 2.48 (0.02) -- (0.02)
Year Ended May 31, 2003 13.66 -- (1.56) (1.56) (0.02) -- (0.02)
Year Ended May 31, 2002 14.96 (0.02) (1.28) (1.30) -- -- --
Year Ended May 31, 2001 15.49 (0.05) (0.05) (0.10) -- (0.43) (0.43)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
INTERNATIONAL EQUITY INDEX FUND
A Shares
Year Ended March 31, 2006 $15.66 24.74%# $ 8,666 1.09% 1.58% 1.12% 7%
Period Ended March 31, 2005 12.69 17.22 7,600 1.36 0.38 1.45 21
Year Ended May 31, 2004 10.93 33.26 15,037 1.49 0.73 1.61 10
Year Ended May 31, 2003 8.28 (14.03) 9,877 1.49 1.33 1.87 25
Year Ended May 31, 2002 9.64 (12.65) 3,222 1.49 (0.12) 1.90 35
Year Ended May 31, 2001 11.05 (19.31) 3,451 1.46 0.05 1.83 13
C Shares
Year Ended March 31, 2006 15.29 23.79# 5,991 1.77 0.94 1.80 7
Period Ended March 31, 2005 12.37 16.62 5,763 1.99 (0.24) 2.12 21
Year Ended May 31, 2004 10.69 32.60 5,208 2.14 0.25 2.54 10
Year Ended May 31, 2003 8.10 (14.56) 3,093 2.14 0.18 2.82 25
Year Ended May 31, 2002 9.48 (13.27) 3,505 2.14 (0.68) 2.26 35
Year Ended May 31, 2001 10.93 (19.84) 4,731 2.10 (0.61) 2.15 13
LARGE CAP RELATIVE VALUE FUND
I Shares
Year Ended March 31, 2006 17.20 12.76 1,396,362 0.90 1.15 0.90 55
Period Ended March 31, 2005 16.07 12.98 1,010,717 0.96 1.23 0.96 44
Year Ended May 31, 2004 14.72 21.76 782,665 1.00 1.03 1.00 51
Year Ended May 31, 2003 12.21 (10.58) 598,862 0.99 1.05 0.99 52
Year Ended May 31, 2002 13.80 (7.80) 792,557 0.99 0.63 0.99 68
Year Ended May 31, 2001 15.05 0.11 867,664 0.99 0.49 0.99 73
A Shares
Year Ended March 31, 2006 17.36 12.50 45,851 1.15 0.90 1.15 55
Period Ended March 31, 2005 16.21 12.86 44,743 1.18 0.97 1.23 44
Year Ended May 31, 2004 14.83 21.45 45,808 1.18 0.84 1.36 51
Year Ended May 31, 2003 12.31 (10.74) 36,305 1.18 0.88 1.38 52
Year Ended May 31, 2002 13.91 (7.97) 36,789 1.18 0.44 1.36 68
Year Ended May 31, 2001 15.17 (0.07) 40,174 1.18 0.30 1.35 73
C Shares
Year Ended March 31, 2006 17.00 11.69 78,348 1.90 0.15 1.90 55
Period Ended March 31, 2005 15.89 12.12 88,741 1.93 0.23 1.99 44
Year Ended May 31, 2004 14.54 20.58 97,899 1.93 0.09 2.17 51
Year Ended May 31, 2003 12.08 (11.41) 74,261 1.93 0.11 2.20 52
Year Ended May 31, 2002 13.66 (8.69) 94,671 1.93 (0.29) 2.16 68
Year Ended May 31, 2001 14.96 (0.77) 78,376 1.93 (0.45) 2.14 73
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
117
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
LARGE CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 $12.59 $ 0.23 $ 1.26 $ 1.49 $(0.23) $ -- $(0.23)
Period Ended March 31, 2005 11.47 0.15 1.15 1.30 (0.18) -- (0.18)
Year Ended May 31, 2004 9.73 0.15(a) 1.74(a) 1.89 (0.15) -- (0.15)
Year Ended May 31, 2003 11.05 0.15 (1.33) (1.18) (0.14) -- (0.14)
Year Ended May 31, 2002 11.61 0.12 (0.56) (0.44) (0.12) -- (0.12)
Year Ended May 31, 2001 10.38 0.19 1.24 1.43 (0.20) -- (0.20)
A Shares
Year Ended March 31, 2006 12.56 0.19 1.26 1.45 (0.19) -- (0.19)
Period Ended March 31, 2005 11.43 0.11 1.16 1.27 (0.14) -- (0.14)
Year Ended May 31, 2004 9.70 0.11(a) 1.73(a) 1.84 (0.11) -- (0.11)
Year Ended May 31, 2003 11.01 0.12 (1.32) (1.20) (0.11) -- (0.11)
Year Ended May 31, 2002 11.58 0.08 (0.56) (0.48) (0.09) -- (0.09)
Year Ended May 31, 2001 10.35 0.14 1.25 1.39 (0.16) -- (0.16)
C Shares
Year Ended March 31, 2006 12.43 0.09 1.25 1.34 (0.09) -- (0.09)
Period Ended March 31, 2005 11.31 0.03 1.15 1.18 (0.06) -- (0.06)
Year Ended May 31, 2004 9.60 0.03(a) 1.72(a) 1.75 (0.04) -- (0.04)
Year Ended May 31, 2003 10.90 0.05 (1.31) (1.26) (0.04) -- (0.04)
Year Ended May 31, 2002 11.46 -- (0.55) (0.55) (0.01) -- (0.01)
Year Ended May 31, 2001 10.24 0.04 1.26 1.30 (0.08) -- (0.08)
MID-CAP EQUITY FUND
I Shares
Year Ended March 31, 2006 12.03 0.07 2.26 2.33 (0.07) (0.62) (0.69)
Period Ended March 31, 2005 10.32 0.07 1.70 1.77 (0.06) -- (0.06)
Year Ended May 31, 2004 8.74 0.06(a) 1.57(a) 1.63 (0.05) -- (0.05)
Year Ended May 31, 2003 9.79 (0.03)(a) (1.02)(a)** (1.05)** -- -- --
Year Ended May 31, 2002 10.95 0.01 (1.17) (1.16) -- -- --
Year Ended May 31, 2001 14.10 (0.03) (0.61) (0.64) -- (2.51) (2.51)
A Shares
Year Ended March 31, 2006 11.57 0.03 2.17 2.20 (0.03) (0.62) (0.65)
Period Ended March 31, 2005 9.92 0.02 1.64 1.66 (0.01) -- (0.01)
Year Ended May 31, 2004 8.42 0.02(a) 1.51(a) 1.53 (0.03) -- (0.03)
Year Ended May 31, 2003 9.47 (0.05)(a) (1.00)(a) (1.05) -- -- --
Year Ended May 31, 2002 10.64 (0.03) (1.14) (1.17) -- -- --
Year Ended May 31, 2001 13.82 (0.05) (0.62) (0.67) -- (2.51) (2.51)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
LARGE CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 $13.85 11.93% $ 766,547 0.85% 1.74% 0.86% 104%
Period Ended March 31, 2005 12.59 11.42 792,677 0.86 1.52 0.86 87
Year Ended May 31, 2004 11.47 19.58 715,928 0.90 1.40 0.90 67
Year Ended May 31, 2003 9.73 (10.54) 681,899 0.89 1.68 0.89 46
Year Ended May 31, 2002 11.05 (3.68) 686,014 0.90 1.13 0.90 60
Year Ended May 31, 2001 11.61 14.09 704,842 0.90 1.70 0.90 77
A Shares
Year Ended March 31, 2006 13.82 11.61 67,845 1.16 1.43 1.17 104
Period Ended March 31, 2005 12.56 11.18 75,462 1.20 1.18 1.20 87
Year Ended May 31, 2004 11.43 19.10 73,257 1.28 1.01 1.31 67
Year Ended May 31, 2003 9.70 (10.85) 65,294 1.28 1.29 1.32 46
Year Ended May 31, 2002 11.01 (4.14) 75,697 1.28 0.74 1.31 60
Year Ended May 31, 2001 11.58 13.63 85,584 1.28 1.31 1.31 77
C Shares
Year Ended March 31, 2006 13.68 10.86 44,257 1.85 0.74 1.86 104
Period Ended March 31, 2005 12.43 10.46 53,147 1.88 0.49 1.89 87
Year Ended May 31, 2004 11.31 18.27 57,403 2.02 0.27 2.07 67
Year Ended May 31, 2003 9.60 (11.56) 49,007 2.02 0.55 2.10 46
Year Ended May 31, 2002 10.90 (4.82) 59,392 2.02 -- 2.05 60
Year Ended May 31, 2001 11.46 12.85 65,895 2.01 0.59 2.05 77
MID-CAP EQUITY FUND
I Shares
Year Ended March 31, 2006 13.67 19.68 410,459 1.12 0.63 1.13 138
Period Ended March 31, 2005 12.03 17.17 214,660 1.20 0.64 1.22 68
Year Ended May 31, 2004 10.32 18.70 177,128 1.23 0.64 1.26 126
Year Ended May 31, 2003 8.74 (10.73) 118,092 1.22 (0.31) 1.25 144
Year Ended May 31, 2002 9.79 (10.59) 171,813 1.22 (0.18) 1.24 87
Year Ended May 31, 2001 10.95 (6.92) 156,111 1.21 (0.24) 1.25 100
A Shares
Year Ended March 31, 2006 13.12 19.32 16,009 1.47 0.25 1.48 138
Period Ended March 31, 2005 11.57 16.79 14,556 1.63 0.21 1.68 68
Year Ended May 31, 2004 9.92 18.16 17,125 1.68 0.20 1.87 126
Year Ended May 31, 2003 8.42 (11.09) 12,137 1.68 (0.68) 1.92 144
Year Ended May 31, 2002 9.47 (11.00) 10,766 1.68 (0.63) 1.89 87
Year Ended May 31, 2001 10.64 (7.34) 12,316 1.66 (0.69) 1.86 100
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
118
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
MID-CAP EQUITY FUND
C Shares
Year Ended March 31, 2006 $10.81 $ -- $ 1.96 $ 1.96 $ -- $(0.62) $(0.62)
Period Ended March 31, 2005 9.30 0.01 1.50 1.51 -- -- --
Year Ended May 31, 2004 7.92 (0.04)(a) 1.43(a) 1.39 (0.01) -- (0.01)
Year Ended May 31, 2003 8.97 (0.10)(a) (0.95)(a) (1.05) -- -- --
Year Ended May 31, 2002 10.14 0.02 (1.19) (1.17) -- -- --
Year Ended May 31, 2001 13.35 (0.07) (0.63) (0.70) -- (2.51) (2.51)
MID-CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 12.27 0.13 2.15 2.28 (0.13) (1.28) (1.41)
Period Ended March 31, 2005 10.95 0.11 1.33 1.44 (0.12) -- (0.12)
Year Ended May 31, 2004 8.62 0.05(a) 2.33(a) 2.38 (0.05) -- (0.05)
Year Ended May 31, 2003 10.95 0.05 (2.16) (2.11) (0.04) (0.18) (0.22)
Period Ended May 31, 2002(d) 10.00 0.02 0.94 0.96 (0.01) -- (0.01)
A Shares
Year Ended March 31, 2006 12.24 0.09 2.14 2.23 (0.09) (1.28) (1.37)
Period Ended March 31, 2005 10.94 0.08 1.31 1.39 (0.09) -- (0.09)
Period Ended May 31, 2004(e) 9.39 0.02(a) 1.55(a) 1.57 (0.02) -- (0.02)
C Shares
Year Ended March 31, 2006 12.21 0.02 2.13 2.15 (0.02) (1.28) (1.30)
Period Ended March 31, 2005 10.90 0.04 1.32 1.36 (0.05) -- (0.05)
Year Ended May 31, 2004 8.58 (0.01)(a) 2.33(a) 2.32 --* -- --*
Year Ended May 31, 2003 10.92 0.01 (2.16) (2.15) (0.01) (0.18) (0.19)
Period Ended May 31, 2002(d) 10.00 (0.01) 0.93 0.92 -- -- --
QUALITY GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 24.14 -- 1.82 1.82 (0.13) -- (0.13)
Period Ended March 31, 2005 23.31 0.10(a) 0.77(a) 0.87 (0.04) -- (0.04)
Year Ended May 31, 2004 20.78 (0.06)(a) 2.59(a) 2.53 -- -- --
Year Ended May 31, 2003 23.25 --(a) (2.47)(a) (2.47) -- -- --
Year Ended May 31, 2002 26.74 (0.02) (3.47) (3.49) -- -- --
Year Ended May 31, 2001 33.10 (0.03) (6.33) (6.36) -- -- --
A Shares
Year Ended March 31, 2006 24.02 (0.05) 1.78 1.73 (0.08) -- (0.08)
Period Ended March 31, 2005 23.26 0.03(a) 0.77(a) 0.80 (0.04) -- (0.04)
Period Ended May 31, 2004(f) 22.32 (0.10)(a) 1.04(a) 0.94 -- -- --
C Shares
Year Ended March 31, 2006 22.67 (0.11) 1.57 1.46 (0.02) -- (0.02)
Period Ended March 31, 2005 22.04 (0.09)(a) 0.72(a) 0.63 -- -- --
Year Ended May 31, 2004 19.85 (0.29)(a) 2.48(a) 2.19 -- -- --
Year Ended May 31, 2003 22.45 (0.20)(a) (2.40)(a) (2.60) -- -- --
Year Ended May 31, 2002 26.10 (0.41) (3.24) (3.65) -- -- --
Year Ended May 31, 2001 32.65 (0.36) (6.19) (6.55) -- -- --
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
MID-CAP EQUITY FUND
C Shares
Year Ended March 31, 2006 $12.15 18.44% $ 13,499 2.13% (0.42)% 2.14% 138%
Period Ended March 31, 2005 10.81 16.24 14,557 2.21 (0.37) 2.28 68
Year Ended May 31, 2004 9.30 17.51 15,998 2.28 (0.41) 2.54 126
Year Ended May 31, 2003 7.92 (11.71) 12,013 2.28 (1.33) 2.60 144
Year Ended May 31, 2002 8.97 (11.54) 13,937 2.28 (1.23) 2.50 87
Year Ended May 31, 2001 10.14 (7.88) 12,910 2.26 (1.29) 2.46 100
MID-CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 13.14 19.49 243,534 1.13 1.03 1.16 169
Period Ended March 31, 2005 12.27 13.25 209,088 1.22 1.19 1.32 117
Year Ended May 31, 2004 10.95 27.71 147,185 1.26 0.53 1.36 95
Year Ended May 31, 2003 8.62 (19.05) 99,854 1.25 0.63 1.35 71
Period Ended May 31, 2002(d) 10.95 9.65 174,859 1.27 0.29 1.37 30
A Shares
Year Ended March 31, 2006 13.10 19.09 2,435 1.46 0.72 1.49 169
Period Ended March 31, 2005 12.24 12.73 1,724 1.62 0.74 1.93 117
Period Ended May 31, 2004(e) 10.94 16.73 610 1.60 0.24 4.23 95
C Shares
Year Ended March 31, 2006 13.06 18.47 6,366 2.03 0.13 2.17 169
Period Ended March 31, 2005 12.21 12.47 6,888 1.91 0.54 2.39 117
Year Ended May 31, 2004 10.90 27.06 7,880 1.90 (0.11) 2.74 95
Year Ended May 31, 2003 8.58 (19.58) 5,744 1.90 0.03 2.85 71
Period Ended May 31, 2002(d) 10.92 9.24 5,465 1.89 (0.31) 2.72 30
QUALITY GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 25.83 7.54 74,481 1.07 0.21 1.08 82
Period Ended March 31, 2005 24.14 3.74 98,982 1.22 0.52 1.25 51
Year Ended May 31, 2004 23.31 12.18 144,732 1.25 (0.28) 1.25 49
Year Ended May 31, 2003 20.78 (10.62) 198,429 1.24 (0.01) 1.24 58
Year Ended May 31, 2002 23.25 (13.05) 244,707 1.24 (0.10) 1.24 69
Year Ended May 31, 2001 26.74 (19.21) 460,311 1.24 (0.10) 1.25 103
A Shares
Year Ended March 31, 2006 25.67 7.21 468 1.39 (0.11) 1.41 82
Period Ended March 31, 2005 24.02 3.42 667 1.62 0.13 2.00 51
Period Ended May 31, 2004(f) 23.26 4.21 365 1.65 (0.71) 4.48+++ 49
C Shares
Year Ended March 31, 2006 24.11 6.46 48,412 2.07 (0.80) 2.08 82
Period Ended March 31, 2005 22.67 2.86 67,950 2.23 (0.47) 2.28 51
Year Ended May 31, 2004 22.04 11.03 92,966 2.31 (1.34) 2.41 49
Year Ended May 31, 2003 19.85 (11.58) 110,085 2.31 (1.07) 2.40 58
Year Ended May 31, 2002 22.45 (13.98) 167,973 2.31 (1.16) 2.36 69
Year Ended May 31, 2001 26.10 (20.06) 233,496 2.30 (1.15) 2.34 103
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
119
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
SMALL CAP GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 $19.99 $(0.14)(a) $ 5.46(a) $ 5.32 $ -- $(1.66) $(1.66)
Period Ended March 31, 2005 20.25 (0.08)(a) 2.27(a) 2.19 -- (2.45) (2.45)
Year Ended May 31, 2004 15.19 (0.16)(a) 5.22(a) 5.06 -- -- --
Year Ended May 31, 2003 17.28 (0.12)(a) (1.72)(a) (1.84) -- (0.25) (0.25)
Year Ended May 31, 2002 18.37 -- (1.02) (1.02) -- (0.07) (0.07)
Year Ended May 31, 2001 18.30 (0.18) 1.71 1.53 -- (1.46) (1.46)
A Shares
Year Ended March 31, 2006 19.56 (0.21)(a) 5.33(a) 5.12 -- (1.66) (1.66)
Period Ended March 31, 2005 19.92 (0.14)(a) 2.23(a) 2.09 -- (2.45) (2.45)
Year Ended May 31, 2004 15.00 (0.22)(a) 5.14(a) 4.92 -- -- --
Year Ended May 31, 2003 17.12 (0.17)(a) (1.70)(a) (1.87) -- (0.25) (0.25)
Year Ended May 31, 2002 18.26 (0.17) (0.90) (1.07) -- (0.07) (0.07)
Year Ended May 31, 2001 18.27 (0.59) 2.04 1.45 -- (1.46) (1.46)
C Shares
Year Ended March 31, 2006 18.51 (0.33)(a) 5.01(a) 4.68 -- (1.66) (1.66)
Period Ended March 31, 2005 19.06 (0.23)(a) 2.13(a) 1.90 -- (2.45) (2.45)
Year Ended May 31, 2004 14.45 (0.34)(a) 4.95(a) 4.61 -- -- --
Year Ended May 31, 2003 16.62 (0.26)(a) (1.66)(a) (1.92) -- (0.25) (0.25)
Year Ended May 31, 2002 17.85 (0.02) (1.14) (1.16) -- (0.07) (0.07)
Year Ended May 31, 2001 18.00 (0.25) 1.56 1.31 -- (1.46) (1.46)
SMALL CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 19.86 0.10 5.39 5.49 (0.10) (4.32) (4.42)
Period Ended March 31, 2005 18.26 0.04(a) 3.15(a) 3.19 (0.06) (1.53) (1.59)
Year Ended May 31, 2004 13.73 0.06(a) 4.53(a) 4.59 (0.06) -- (0.06)
Year Ended May 31, 2003 14.54 0.08 (0.82) (0.74) (0.07) -- (0.07)
Year Ended May 31, 2002 12.21 0.08 2.35 2.43 (0.10) -- (0.10)
Year Ended May 31, 2001 9.13 0.17 3.07 3.24 (0.16) -- (0.16)
A Shares
Year Ended March 31, 2006 19.75 0.06 5.36 5.42 (0.06) (4.32) (4.38)
Period Ended March 31, 2005 18.18 (0.01)(a) 3.13(a) 3.12 (0.02) (1.53) (1.55)
Period Ended May 31, 2004(g) 15.75 0.03(a) 2.41(a) 2.44 (0.01) -- (0.01)
C Shares
Year Ended March 31, 2006 19.45 0.06 5.26 5.32 (0.06) (4.32) (4.38)
Period Ended March 31, 2005 17.91 (0.01)(a) 3.09(a) 3.08 (0.01) (1.53) (1.54)
Year Ended May 31, 2004 13.55 (0.10)(a) 4.46(a) 4.36 --* -- --*
Year Ended May 31, 2003 14.43 (0.04) (0.84) (0.88) -- -- --
Year Ended May 31, 2002 12.15 -- 2.29 2.29 (0.01) -- (0.01)
Year Ended May 31, 2001 9.10 0.07 3.04 3.11 (0.06) -- (0.06)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
SMALL CAP GROWTH STOCK FUND
I Shares
Year Ended March 31, 2006 $23.65 27.55% $1,641,681 1.17% (0.66)% 1.18% 98%
Period Ended March 31, 2005 19.99 10.60 940,775 1.22 (0.46) 1.22 70
Year Ended May 31, 2004 20.25 33.31 789,650 1.25 (0.83) 1.25 107
Year Ended May 31, 2003 15.19 (10.50) 567,714 1.24 (0.87) 1.24 96
Year Ended May 31, 2002 17.28 (5.55) 593,211 1.25 (1.01) 1.25 100
Year Ended May 31, 2001 18.37 8.33 508,857 1.24 (0.95) 1.25 112
A Shares
Year Ended March 31, 2006 23.02 27.13### 59,896 1.51 (1.00) 1.54 98
Period Ended March 31, 2005 19.56 10.26 38,954 1.61 (0.84) 1.73 70
Year Ended May 31, 2004 19.92 32.80 40,590 1.61 (1.20) 1.88 107
Year Ended May 31, 2003 15.00 (10.77) 21,887 1.61 (1.23) 1.93 96
Year Ended May 31, 2002 17.12 (5.86) 24,978 1.61 (1.37) 1.88 100
Year Ended May 31, 2001 18.26 7.89 28,933 1.60 (1.33) 1.87 112
C Shares
Year Ended March 31, 2006 21.53 26.27### 36,242 2.18 (1.67) 2.18 98
Period Ended March 31, 2005 18.51 9.71 35,322 2.22 (1.46) 2.24 70
Year Ended May 31, 2004 19.06 31.90 40,354 2.31 (1.90) 2.40 107
Year Ended May 31, 2003 14.45 (11.40) 25,601 2.31 (1.93) 2.46 96
Year Ended May 31, 2002 16.62 (6.50) 29,457 2.31 (2.07) 2.41 100
Year Ended May 31, 2001 17.85 7.19 26,941 2.29 (2.01) 2.39 112
SMALL CAP VALUE EQUITY FUND
I Shares
Year Ended March 31, 2006 20.93 30.70 762,709 1.20 0.48 1.20 58
Period Ended March 31, 2005 19.86 17.57 726,904 1.21 0.22 1.21 17
Year Ended May 31, 2004 18.26 33.56 682,567 1.25 0.38 1.25 44
Year Ended May 31, 2003 13.73 (5.09) 518,468 1.24 0.64 1.24 29
Year Ended May 31, 2002 14.54 20.06 614,199 1.25 0.67 1.25 29
Year Ended May 31, 2001 12.21 35.90 401,900 1.25 1.72 1.25 86
A Shares
Year Ended March 31, 2006 20.79 30.44 5,317 1.45 0.22 1.48 58
Period Ended March 31, 2005 19.75 17.26 4,616 1.47 (0.05) 1.61 17
Period Ended May 31, 2004(g) 18.18 15.51 4,088 1.55 0.30 2.15 44
C Shares
Year Ended March 31, 2006 20.39 30.41 45,388 1.45 0.23 1.70 58
Period Ended March 31, 2005 19.45 17.27 43,664 1.50 (0.07) 2.25 17
Year Ended May 31, 2004 17.91 32.20 46,192 2.26 (0.64) 2.45 44
Year Ended May 31, 2003 13.55 (6.10) 34,064 2.31 (0.40) 2.50 29
Year Ended May 31, 2002 14.43 18.92 32,708 2.31 (0.38) 2.52 29
Year Ended May 31, 2001 12.15 34.30 11,167 2.30 0.63 2.66 86
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
120
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
STRATEGIC QUANTITATIVE EQUITY FUND
I Shares
Year Ended March 31, 2006 $13.25 $ 0.01(a) $ 1.55(a) $ 1.56 $ --* $(1.06) $(1.06)
Period Ended March 31, 2005 12.08 (0.02)(a) 1.91(a) 1.89 -- (0.72) (0.72)
Period Ended May 31, 2004(h) 10.00 (0.02)(a) 2.35(a) 2.33 -- (0.25) (0.25)
A Shares
Year Ended March 31, 2006 13.18 (0.02)(a) 1.55(a) 1.53 -- (1.06) (1.06)
Period Ended March 31, 2005 12.05 (0.05)(a) 1.90(a) 1.85 -- (0.72) (0.72)
Period Ended May 31, 2004(i) 11.35 (0.05)(a) 1.00(a) 0.95 -- (0.25) (0.25)
C Shares
Year Ended March 31, 2006 13.03 (0.13)(a) 1.53(a) 1.40 -- (1.06) (1.06)
Period Ended March 31, 2005 12.00 (0.13)(a) 1.88(a) 1.75 -- (0.72) (0.72)
Period Ended May 31, 2004(j) 11.64 (0.11)(a) 0.72(a) 0.61 -- (0.25) (0.25)
BALANCED FUND
I Shares
Year Ended March 31, 2006 12.29 0.24 0.37 0.61 (0.23) (0.79) (1.02)
Period Ended March 31, 2005*** 12.23 0.18 0.21 0.39 (0.21) (0.12) (0.33)
Year Ended May 31, 2004 11.92 0.18(a) 0.32(a) 0.50 (0.19) -- (0.19)
Year Ended May 31, 2003 12.18 0.20 (0.23) (0.03) (0.23) -- (0.23)
Year Ended May 31, 2002 13.18 0.23 (0.65) (0.42) (0.24) (0.34) (0.58)
Year Ended May 31, 2001 13.37 0.30 0.12 0.42 (0.31) (0.30) (0.61)
A Shares
Year Ended March 31, 2006 12.35 0.20 0.37 0.57 (0.19) (0.79) (0.98)
Period Ended March 31, 2005*** 12.28 0.15 0.22 0.37 (0.18) (0.12) (0.30)
Year Ended May 31, 2004 11.97 0.14(a) 0.33(a) 0.47 (0.16) -- (0.16)
Year Ended May 31, 2003 12.24 0.16 (0.24) (0.08) (0.19) -- (0.19)
Year Ended May 31, 2002 13.24 0.18 (0.64) (0.46) (0.20) (0.34) (0.54)
Year Ended May 31, 2001 13.43 0.27 0.11 0.38 (0.27) (0.30) (0.57)
C Shares
Year Ended March 31, 2006 12.20 0.11 0.36 0.47 (0.10) (0.79) (0.89)
Period Ended March 31, 2005*** 12.12 0.05 0.23 0.28 (0.08) (0.12) (0.20)
Year Ended May 31, 2004 11.82 0.05(a) 0.32(a) 0.37 (0.07) -- (0.07)
Year Ended May 31, 2003 12.07 0.08 (0.22) (0.14) (0.11) -- (0.11)
Year Ended May 31, 2002 13.07 0.10 (0.65) (0.55) (0.11) (0.34) (0.45)
Year Ended May 31, 2001 13.27 0.16 0.11 0.27 (0.17) (0.30) (0.47)
LIFE VISION AGGRESSIVE GROWTH FUND(K)
I Shares
Year Ended March 31, 2006 11.07 0.14 1.38 1.52 (0.14) (0.13) (0.27)
Period Ended March 31, 2005 10.25 0.12 0.82 0.94 (0.12) -- (0.12)
Year Ended May 31, 2004 8.55 0.04(a) 1.70(a) 1.74 (0.04)**** -- (0.04)****
Year Ended May 31, 2003 9.57 0.03 (1.02) (0.99) (0.03) -- (0.03)
Year Ended May 31, 2002 10.31 0.02 (0.74) (0.72) (0.02) -- (0.02)
Year Ended May 31, 2001 11.61 0.11 0.23 0.34 (0.12) (1.52) (1.64)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
STRATEGIC QUANTITATIVE EQUITY FU
I Shares
Year Ended March 31, 2006 $13.75 12.17% $ 284,727 0.99% 0.07% 1.02% 432%
Period Ended March 31, 2005 13.25 15.84 93,204 1.11 (0.19) 1.26 346
Period Ended May 31, 2004(h) 12.08 23.43 66,812 1.13 (0.22) 1.33 344
A Shares
Year Ended March 31, 2006 13.65 11.90 1,181 1.23 (0.17) 1.27 432
Period Ended March 31, 2005 13.18 15.54 407 1.39 (0.47) 2.37 346
Period Ended May 31, 2004(i) 12.05 8.48 155 1.55 (0.67) 10.70+++ 344
C Shares
Year Ended March 31, 2006 13.37 11.11 1,518 2.00 (0.97) 2.05 432
Period Ended March 31, 2005 13.03 14.76 1,458 2.13 (1.22) 2.39 346
Period Ended May 31, 2004(j) 12.00 5.34 1,573 2.30 (1.42) 3.09 344
BALANCED FUND
I Shares
Year Ended March 31, 2006 11.88 5.10## 69,616 0.97 1.73 0.99 133
Period Ended March 31, 2005*** 12.29 3.14 195,680 0.99 1.68 1.02 140
Year Ended May 31, 2004 12.23 4.24 244,042 1.02 1.50 1.05 116
Year Ended May 31, 2003 11.92 (0.14) 228,475 1.02 1.74 1.05 102
Year Ended May 31, 2002 12.18 (3.29) 241,604 1.02 1.78 1.05 95
Year Ended May 31, 2001 13.18 3.24 209,316 1.01 2.24 1.05 99
A Shares
Year Ended March 31, 2006 11.94 4.77## 5,811 1.25 1.44 1.28 133
Period Ended March 31, 2005*** 12.35 2.94 8,693 1.28 1.38 1.34 140
Year Ended May 31, 2004 12.28 3.91 8,902 1.34 1.18 1.54 116
Year Ended May 31, 2003 11.97 (0.54) 8,285 1.33 1.43 1.55 102
Year Ended May 31, 2002 12.24 (3.57) 9,020 1.33 1.46 1.55 95
Year Ended May 31, 2001 13.24 2.91 7,834 1.32 1.93 1.54 99
C Shares
Year Ended March 31, 2006 11.78 3.97 30,733 1.97 0.72 2.00 133
Period Ended March 31, 2005*** 12.20 2.29 46,026 2.00 0.66 2.05 140
Year Ended May 31, 2004 12.12 3.12 65,435 2.09 0.42 2.18 116
Year Ended May 31, 2003 11.82 (1.15) 67,567 2.09 0.67 2.18 102
Year Ended May 31, 2002 12.07 (4.33) 74,880 2.09 0.71 2.16 95
Year Ended May 31, 2001 13.07 2.11 67,824 2.07 1.18 2.15 99
LIFE VISION AGGRESSIVE GROWTH FU
I Shares
Year Ended March 31, 2006 12.32 13.90 52,765 0.21 1.30 0.26 31
Period Ended March 31, 2005 11.07 9.15 43,283 0.21 1.32 0.34 29
Year Ended May 31, 2004 10.25 20.34 38,468 0.25 0.39 0.39 44
Year Ended May 31, 2003 8.55 (10.36) 28,681 0.25 0.33 0.40 50
Year Ended May 31, 2002 9.57 (6.96) 34,398 0.25 0.17 0.41 101
Year Ended May 31, 2001 10.31 3.07 23,936 0.25 1.05 0.43 202
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
121
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
LIFE VISION AGGRESSIVE GROWTH FUND(K)
A Shares
Year Ended March 31, 2006 $11.05 $ 0.11 $ 1.37 $ 1.48 $(0.11) $(0.13) $(0.24)
Period Ended March 31, 2005 10.23 0.09 0.82 0.91 (0.09) -- (0.09)
Period Ended May 31, 2004(l) 9.46 (0.01)(a) 0.81(a) 0.80 (0.03) -- (0.03)
C Shares
Period Ended March 31, 2006(m) 11.07 0.08 1.39 1.47 (0.08) (0.13) (0.21)
B Shares
Year Ended March 31, 2006 10.98 0.09 1.34 1.43 (0.09) (0.13) (0.22)
Period Ended March 31, 2005 10.18 0.06 0.80 0.86 (0.06) -- (0.06)
Year Ended May 31, 2004 8.53 (0.04)(a) 1.70(a) 1.66 (0.01) -- (0.01)
Period Ended May 31, 2003(n) 7.23 (0.01) 1.31 1.30 -- -- --
LIFE VISION CONSERVATIVE FUND(K)
I Shares
Year Ended March 31, 2006 11.09 0.37 0.17 0.54 (0.36) (0.06) (0.42)
Period Ended March 31, 2005 10.87 0.28 0.28 0.56 (0.30) (0.04) (0.34)
Period Ended May 31, 2004(o) 10.71 0.15(a) 0.14(a) 0.29 (0.13) -- (0.13)
A Shares
Year Ended March 31, 2006 11.09 0.33 0.17 0.50 (0.32) (0.06) (0.38)
Period Ended March 31, 2005 10.86 0.24 0.29 0.53 (0.26) (0.04) (0.30)
Period Ended May 31, 2004(p) 10.68 0.12(a) 0.18(a) 0.30 (0.12) -- (0.12)
C Shares
Period Ended March 31, 2006(m) 11.08 0.29 0.17 0.46 (0.28) (0.06) (0.34)
B Shares
Year Ended March 31, 2006 11.09 0.28 0.18 0.46 (0.27) (0.06) (0.33)
Period Ended March 31, 2005 10.86 0.20 0.29 0.49 (0.22) (0.04) (0.26)
Year Ended May 31, 2004 10.43 0.17(a) 0.39(a) 0.56 (0.13) -- (0.13)
Period Ended May 31, 2003(n) 10.00 0.01 0.42 0.43 -- -- --
LIFE VISION GROWTH AND INCOME FUND(K)
I Shares
Year Ended March 31, 2006 11.41 0.23 1.02 1.25 (0.23) -- (0.23)
Period Ended March 31, 2005 10.76 0.16 0.67 0.83 (0.18) -- (0.18)
Year Ended May 31, 2004 9.33 0.14(a) 1.43(a) 1.57 (0.14) -- (0.14)
Year Ended May 31, 2003 9.98 0.13 (0.65) (0.52) (0.13) -- (0.13)
Year Ended May 31, 2002 10.42 0.12 (0.43) (0.31) (0.13) -- (0.13)
Year Ended May 31, 2001 10.50 0.24 0.40 0.64 (0.25) (0.47) (0.72)
A Shares
Year Ended March 31, 2006 11.39 0.19 1.02 1.21 (0.19) -- (0.19)
Period Ended March 31, 2005 10.75 0.13 0.66 0.79 (0.15) -- (0.15)
Period Ended May 31, 2004(q) 10.18 0.06(a) 0.58(a) 0.64 (0.07) -- (0.07)
C Shares
Period Ended March 31, 2006(r) 11.41 0.15 0.98 1.13 (0.15) -- (0.15)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate
------ ------- ------------ -------- ----------- --------------- ---------
LIFE VISION AGGRESSIVE GROWTH FU
A Shares
Year Ended March 31, 2006 $12.29 13.50% $ 2,619 0.52% 1.06% 0.62% 31%
Period Ended March 31, 2005 11.05 8.90 2,080 0.55 1.20 1.01 29
Period Ended May 31, 2004(l) 10.23 8.43 867 0.51 (0.24) 5.15 44
C Shares
Period Ended March 31, 2006(m) 12.33 13.40 1,146 1.17 0.67 1.22 31
B Shares
Year Ended March 31, 2006 12.19 13.10 5,756 0.99 0.50 1.10 31
Period Ended March 31, 2005 10.98 8.44 5,452 1.03 0.53 1.40 29
Year Ended May 31, 2004 10.18 19.49 4,367 1.00 (0.36) 1.95 44
Period Ended May 31, 2003(n) 8.53 18.03 1,052 0.89 (0.86) 1.36 50
LIFE VISION CONSERVATIVE FUND(K)
I Shares
Year Ended March 31, 2006 11.21 4.96 3,066 0.20 3.58 0.56 29
Period Ended March 31, 2005 11.09 5.18 414 0.17 3.29 1.52 121
Period Ended May 31, 2004(o) 10.87 2.68 30 0.25 2.41 85.33+++ 138
A Shares
Year Ended March 31, 2006 11.21 4.63 1,324 0.53 3.10 0.83 29
Period Ended March 31, 2005 11.09 4.88 606 0.56 2.61 1.51 121
Period Ended May 31, 2004(p) 10.86 2.82 474 0.57 2.06 4.00 138
C Shares
Period Ended March 31, 2006(m) 11.20 4.22 835 1.03 2.64 1.59 29
B Shares
Year Ended March 31, 2006 11.22 4.23 5,189 0.97 2.59 1.19 29
Period Ended March 31, 2005 11.09 4.50 5,635 0.96 2.22 1.67 121
Year Ended May 31, 2004 10.86 5.38 5,012 0.95 1.54 1.81 138
Period Ended May 31, 2003(n) 10.43 4.30 800 0.92 0.85 1.39 160
LIFE VISION GROWTH AND INCOME FU
I Shares
Year Ended March 31, 2006 12.43 11.05 97,964 0.19 1.96 0.24 34
Period Ended March 31, 2005 11.41 7.77 87,520 0.22 1.82 0.33 59
Year Ended May 31, 2004 10.76 16.92 75,083 0.25 1.38 0.36 97
Year Ended May 31, 2003 9.33 (5.16) 59,449 0.25 1.46 0.37 139
Year Ended May 31, 2002 9.98 (2.97) 77,395 0.25 1.25 0.39 166
Year Ended May 31, 2001 10.42 6.31 37,550 0.25 2.41 0.39 286
A Shares
Year Ended March 31, 2006 12.41 10.73 5,737 0.51 1.74 0.58 34
Period Ended March 31, 2005 11.39 7.37 3,575 0.57 1.55 0.91 59
Period Ended May 31, 2004(q) 10.75 6.32 1,426 0.56 1.04 1.95 97
C Shares
Period Ended March 31, 2006(r) 12.39 9.94 2,820 1.15 1.39 1.20 34
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
122
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Net Unrealized from from Total
Value, Investment Gains Net Realized Dividends
Beginning Income (Losses) on Total From Investment Capital and
of Period (Loss) Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
LIFE VISION GROWTH AND INCOME FUND(K)
B Shares
Year Ended March 31, 2006 $11.39 $ 0.14 $ 1.02 $ 1.16 $(0.14) $ -- $(0.14)
Period Ended March 31, 2005 10.74 0.08 0.67 0.75 (0.10) -- (0.10)
Year Ended May 31, 2004 9.34 0.07(a) 1.42(a) 1.49 (0.09) -- (0.09)
Period Ended May 31, 2003(n) 8.10 0.02 1.24 1.26 (0.02) -- (0.02)
LIFE VISION MODERATE GROWTH FUND(K)
I Shares
Year Ended March 31, 2006 10.49 0.29 0.59 0.88 (0.28) (0.24) (0.52)
Period Ended March 31, 2005 10.06 0.20 0.50 0.70 (0.22) (0.05) (0.27)
Year Ended May 31, 2004 9.02 0.16(a) 1.04(a) 1.20 (0.16) -- (0.16)
Year Ended May 31, 2003 9.40 0.16 (0.38) (0.22) (0.16) -- (0.16)
Year Ended May 31, 2002 9.73 0.17 (0.32) (0.15) (0.18) -- (0.18)
Year Ended May 31, 2001 10.61 0.32 0.20 0.52 (0.34) (1.06) (1.40)
A Shares
Year Ended March 31, 2006 10.48 0.25 0.59 0.84 (0.24) (0.24) (0.48)
Period Ended March 31, 2005 10.05 0.17 0.50 0.67 (0.19) (0.05) (0.24)
Period Ended May 31, 2004(s) 9.58 0.10(a) 0.45(a) 0.55 (0.08) -- (0.08)
C Shares
Period Ended March 31, 2006(r) 10.49 0.20 0.57 0.77 (0.20) (0.24) (0.44)
B Shares
Year Ended March 31, 2006 10.46 0.21 0.59 0.80 (0.20) (0.24) (0.44)
Period Ended March 31, 2005 10.03 0.13 0.50 0.63 (0.15) (0.05) (0.20)
Year Ended May 31, 2004 9.00 0.09(a) 1.04(a) 1.13 (0.10) -- (0.10)
Period Ended May 31, 2003(n) 8.05 0.03 0.95 0.98 (0.03) -- (0.03)
LIFE VISION TARGET DATE 2015 FUND(K)
I Shares
Period Ended March 31, 2006(t) 10.00 0.17 0.82 0.99 (0.13) -- (0.13)
LIFE VISION TARGET DATE 2025 FUND(K)
I Shares
Period Ended March 31, 2006(u) 10.00 0.13 1.10 1.23 (0.12) -- (0.12)
LIFE VISION TARGET DATE 2035 FUND(K)
I Shares
Period Ended March 31, 2006(v) 10.00 0.13 0.88 1.01 (0.12) -- (0.12)
<Caption>
Ratio of
Ratio of Expenses to
Ratio of Net Average
Net Investment Net Assets
Net Expenses Income (Excluding
Asset to (Loss) to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate(+)
------ ------- ------------ -------- ----------- --------------- ---------
LIFE VISION GROWTH AND INCOME FU
B Shares
Year Ended March 31, 2006 $12.41 10.21% $ 17,829 0.96% 1.21% 1.07% 34%
Period Ended March 31, 2005 11.39 7.00 16,641 1.01 1.05 1.34 59
Year Ended May 31, 2004 10.74 15.99 13,060 1.00 0.63 1.61 97
Period Ended May 31, 2003(n) 9.34 15.57 2,017 0.90 0.39 1.34 139
LIFE VISION MODERATE GROWTH FUND
I Shares
Year Ended March 31, 2006 10.85 8.48 158,301 0.18 2.63 0.22 34
Period Ended March 31, 2005 10.49 6.98 132,522 0.21 2.32 0.32 83
Year Ended May 31, 2004 10.06 13.35 121,659 0.25 1.65 0.36 109
Year Ended May 31, 2003 9.02 (2.21) 93,722 0.25 1.87 0.36 101
Year Ended May 31, 2002 9.40 (1.52) 88,592 0.25 1.81 0.36 202
Year Ended May 31, 2001 9.73 5.28 73,429 0.25 3.04 0.37 247
A Shares
Year Ended March 31, 2006 10.84 8.16 5,821 0.47 2.38 0.59 34
Period Ended March 31, 2005 10.48 6.74 8,161 0.47 2.13 0.87 83
Period Ended May 31, 2004(s) 10.05 5.79 3,541 0.55 1.49 1.27 109
C Shares
Period Ended March 31, 2006(r) 10.82 7.40 1,674 1.13 1.89 1.19 34
B Shares
Year Ended March 31, 2006 10.82 7.60 14,073 0.92 1.87 1.06 34
Period Ended March 31, 2005 10.46 6.28 14,797 0.92 1.59 1.35 83
Year Ended May 31, 2004 10.03 12.66 13,236 1.00 0.91 1.56 109
Period Ended May 31, 2003(n) 9.00 12.22 2,691 0.91 0.93 1.34 101
LIFE VISION TARGET DATE 2015 FUN
I Shares
Period Ended March 31, 2006(t) 10.86 9.94 270 0.20 2.71 13.92+++ 25
LIFE VISION TARGET DATE 2025 FUN
I Shares
Period Ended March 31, 2006(u) 11.11 12.33 1,110 0.20 2.28 11.64+++ 17
LIFE VISION TARGET DATE 2035 FUN
I Shares
Period Ended March 31, 2006(v) 10.89 10.14 590 0.20 2.45 10.98+++ 40
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
123
NOTES TO FINANCIAL HIGHLIGHTS
* Amount represents less than $0.005.
** Includes redemption fees of $0.01.
*** Effective June 1, 2004, the Balanced Fund adopted a change in the
amortization and accretion methodology on fixed income securities. The
cumulative effect of this change in methodology was immaterial.
**** Includes return of capital of $0.003.
+ Total return excludes sales charge. Not annualized for periods less than
one year.
++ Annualized for periods less than one year.
+++ Ratio reflects the impact of the initial low level of average net assets
associated with commencement of operations.
# The Fund had a voluntary reimbursement by the Investment Adviser and
affiliates that had no effect on total returns for the period.
## The Fund's total return consists of a voluntary reimbursement by the
Investment Adviser and affiliates of 0.09% for a realized investment loss.
Excluding this reimbursement, total return would have been 5.01% and 4.68%
for the I Shares and A Shares, respectively. There was no effect to total
return in C Shares.
### The Fund's total return includes the effect of an asset valuation
adjustment as of March 31, 2006. Excluding this effect, total return would
have been 27.08% and 26.21% for the A Shares and C Shares, respectively.
There was no effect to total return in I Shares.
(+) Not annualized for periods less than one year.
(a) Per share data calculated using average shares outstanding method.
(b) Commenced operations on February 23, 2004.
(c) Commenced operations on February 27, 2004.
(d) Commenced operations on November 30, 2001.
(e) Commenced operations on October 27, 2003.
(f) Commenced operations on October 14, 2003.
(g) Commenced operations on October 9, 2003.
(h) Commenced operations on August 7, 2003.
(i) Commenced operations on October 8, 2003.
(j) Commenced operations on October 13, 2003.
(k) The Life Vision Funds and its shareholders indirectly bear a pro rata share
of the expenses of the underlying STI Classic Funds. The expense ratios do
not include such expenses.
(l) Commenced operations on October 16, 2003.
(m) Commenced operations on April 4, 2005.
(n) Commenced operations on March 11, 2003.
(o) Commenced operations on November 6, 2003.
(p) Commenced operations on November 11, 2003.
(q) Commenced operations on November 5, 2003.
(r) Commenced operations on April 6, 2005.
(s) Commenced operations on October 10, 2003.
(t) Commenced operations on October 12, 2005.
(u) Commenced operations on October 21, 2005.
(v) Commenced operations on November 2, 2005.
124
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FUNDS March 31, 2006
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 53 funds as of March 31, 2006. The Trust
is authorized to issue an unlimited number of shares without par value. The
financial statements presented herein are those of the Aggressive Growth Stock
Fund, the Capital Appreciation Fund, the Emerging Growth Stock Fund, the
International Equity Fund, the International Equity Index Fund, the Large Cap
Relative Value Fund (formerly the Growth and Income Fund), the Large Cap Value
Equity Fund (formerly the Value Income Stock Fund), the Mid-Cap Equity Fund, the
Mid-Cap Value Equity Fund, the Quality Growth Stock Fund (formerly the Tax
Sensitive Growth Stock Fund), the Small Cap Growth Stock Fund, the Small Cap
Value Equity Fund, the Strategic Quantitative Equity Fund, the Balanced Fund,
the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the
Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the
Life Vision Target Date 2015 Fund, the Life Vision Target Date 2025 Fund and the
Life Vision Target Date 2035 Fund (each a "Fund" and collectively the "Funds").
The Funds may offer the following share classes: I Shares (formerly T Shares), A
Shares and C Shares (formerly L Shares). In addition, the Life Vision Aggressive
Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and
Income Fund and the Life Vision Moderate Growth Fund may offer B Shares. The
financial statements of the remaining funds are presented separately. The Funds'
prospectus provides a description of the Funds' investment objectives, policies
and strategies.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. Each class of shares has identical rights
and privileges except with respect to the fees paid under the Distribution Plan
and Distribution and Services Plan, voting rights on matters affecting a single
class of shares and sales charges. The A Shares of the Funds (except Life Vision
Conservative Fund) have a maximum sales charge on purchases of 5.75% as a
percentage of original purchase price. Life Vision Conservative Fund A Shares
have a maximum sales charge on purchases of 4.75% as a percentage of original
purchase price. Certain purchases of A Shares will not be subject to a front-end
sales charge but will be subject to a contingent deferred sales charge (CDSC) of
1.00% if redeemed within one year of purchase. The C Shares have a maximum CDSC
of 1.00% (2.00% if purchased prior to August 1, 2005) as a percentage of either
the original purchase price or the next calculated price after the Funds receive
the redemption request, whichever is less, if redeemed within one year of
purchase. The B Shares will not be subject to a sales charge but will be subject
to a maximum CDSC of 5.00% as a percentage of original purchase price if
redeemed within five years of purchase.
Effective August 1, 2005, investors are not able to make new purchases of Class
B Shares, except through dividend or distribution reinvestments in Class B
Shares and exchanges of Class B Shares of a Fund for Class B Shares of another
Fund.
Effective April 30, 2004, the Small Cap Value Equity Fund was closed to new
investors.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with its vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Reorganizations
Aggressive Growth Stock Fund -- The Trust entered into an agreement and plan of
reorganization on behalf of the Information and Technology Fund and the
Aggressive Growth Stock Fund, that provides for the acquisition by the
Aggressive Growth Stock Fund of all of the assets, subject to stated
liabilities, of the Information and Technology Fund, in exchange for I Shares, A
Shares, and C Shares of the Aggressive Growth Stock Fund, the distribution of
such shares to the shareholders of the Information and Technology Fund and
125
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
the dissolution of the Information and Technology Fund. The reorganization,
which qualified as a tax-free exchange for Federal income tax purposes, was
completed on December 20, 2004 following approval by shareholders of the
Information and Technology Fund at a special shareholder meeting. The following
is a summary of shares outstanding, net assets and net asset value per share
issued immediately before and after the reorganization:
<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:
I Shares.................................................. $ 8.01 $ 10.48 $ 10.48
A Shares.................................................. $ 7.98 $ 10.45 $ 10.45
C Shares.................................................. $ 7.63 $ 10.40 $ 10.40
Net unrealized appreciation............................... $ 1,954,611 $ 3,927,078 $ 5,881,689
</Table>
Large Cap Relative Value -- The Trust entered into an agreement and plan of
reorganization with the CCMI Funds pursuant to which all of the assets, subject
to stated liabilities, of each portfolio of the CCMI Funds were transferred to a
corresponding series of the Trust in exchange for a corresponding Class of
shares of that series. The reorganization, which qualified as a tax-free
exchange for Federal income tax purposes, was effective on March 21, 2005,
following approval by shareholders of the CCMI Funds at a special shareholder
meeting on March 18, 2005. The following is a summary of shares outstanding, net
assets and net asset value per share issued immediately before and after the
reorganization:
<Table>
<Caption>
After
Before Reorganization Reorganization
-------------------------------------- -------------------
Large Cap Relative Large Cap Relative
CCMI Equity Fund Value Fund Value Fund
---------------- ------------------- -------------------
Shares...................................................... 7,387,034 55,660,341 62,266,100
Net Assets.................................................. $106,677,983 $898,832,391 $1,005,510,374
Net Asset Value:
I Shares (a).............................................. $ 16.15 $ 16.15
A Shares.................................................. $ 14.44
Net unrealized appreciation............................... $ 23,786,949 $200,133,667 $ 223,920,616
</Table>
(a) Effective March 21, 2005 the CCMI Equity Fund A Shares merged into the Large
Cap Relative Value Fund I Shares.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available
(except for securities traded on NASDAQ), including securities traded over
the counter, are valued at the last quoted sale price on the primary
exchange or market (foreign or domestic) on which they are traded on
valuation date (or at approximately 4:00 p.m. Eastern Time if a security's
primary exchange is normally open at that time), or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be
used. If available, debt securities are priced based upon valuations
provided by independent, third-party pricing agents. Such values generally
reflect the last reported sale
126
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
price if the security is actively traded. The third-party pricing agents
may also value debt securities at an evaluated bid price by employing
methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value
for such securities. Debt obligations with remaining maturities of sixty
days or less may be valued at their amortized cost, which approximates
market value. The prices for foreign securities are reported in local
currency and converted to U.S. dollars at the exchange rate of such
currencies against the U.S. dollar, as of the close of regular trading on
the New York Stock Exchange (usually 4:00 p.m. Eastern Time), as provided
by an independent pricing service approved by the Funds' Board of Trustees
(the "Board"). If a security price cannot be obtained from an independent,
third-party pricing agent, the Funds' administrator shall seek to obtain a
bid price from at least one independent broker.
Securities for which market prices are not "readily available" are valued
in accordance with Fair Value Procedures established by the Board. The
Funds' Fair Value Procedures will be performed and monitored by a Valuation
Committee (the "Committee") designated by the Board. Some of the more
common reasons that may necessitate a security be valued using Fair Value
Procedures include, but are not limited to: the security's trading has been
halted or suspended; the security has been de-listed from a national
exchange; the security's primary trading market is temporarily closed at a
time when under normal conditions it would be open; or the security's
primary pricing source is not able or willing to provide a price. When a
security is valued in accordance with the Fair Value Procedures, the
Committee determines the value after taking into consideration relevant
information reasonably available to the Committee.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular
security's last trade and the time at which a Fund calculates its net asset
value. The closing prices of such securities may no longer reflect their
market value at the time the Fund calculates net asset value if an event
that could materially affect the value of those securities (a "Significant
Event") has occurred between the time of the security's last close and the
time that the Fund calculates net asset value. A Significant Event may
relate to a single issuer or to an entire market sector. If the adviser or
sub-adviser of a Fund becomes aware of a Significant Event that has
occurred with respect to a security or group of securities after the
closing of the exchange or market on which the security or securities
principally trade, but before the time at which the Fund calculates net
asset value, it shall immediately notify the Funds' accounting agent and
may preauthorize the Funds' accounting agent to utilize a pricing service
authorized by the Board (a "Fair Value Pricing Service") that has been
designed to determine a fair value. On a day when a Fair Value Pricing
Service is so utilized pursuant to a preauthorization, the Committee need
not meet. If the adviser or sub-adviser does not pre-authorize the Fund's
accounting agent to utilize a Fair Value Pricing Service, the adviser or
sub-adviser will request that a Committee Meeting be called. In addition,
the Funds' accounting agent monitors price movements among certain selected
indices, securities and/or groups of securities that may be an indicator
that the closing prices received earlier in the day from foreign exchanges
or markets may not reflect market value at the time the Fund calculates net
asset value. If price movements in a monitored index or security exceed
levels established by the Funds ("Trigger Points"), the Funds may use a
systematic valuation model provided by an independent third party to fair
value their international equity securities.
The assets of the Life Vision Aggressive Growth Fund, the Life Vision
Conservative Fund, the Life Vision Growth and Income Fund, the Life Vision
Moderate Growth Fund, the Life Vision Target Date 2015 Fund, the Life
Vision Target Date 2025 Fund and the Life Vision Target Date 2035 Fund (the
"Life Vision Funds") consist of investments in underlying affiliated
investment companies, which are valued at their respective daily net asset
values. Recognition of net investment income by the Life Vision Funds is
affected by the timing of the declaration of dividends by the STI Classic
Funds in which the Life Vision Funds invest. Also, in addition to the Life
Vision Funds' direct expenses, shareholders bear a proportionate share of
the underlying Funds' expenses.
Security Transactions and Investment Income -- During the period, security
transactions are accounted for no later than one business day following the
trade date. For financial reporting purposes, however, security
127
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
transactions are accounted for on trade date on the last business day of
the reporting period. Securities sold are determined on a specific
identification basis. Interest income is recognized on an accrual basis and
includes amortization or accretion of premium or discount. Costs used in
determining net realized gains and losses on the sales of investment
securities are those of the specific securities sold, adjusted for the
accretion or amortization of purchase discounts or premiums during the
respective holding period. Dividend income is recorded on the ex-dividend
date.
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the repurchase agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of a Fund's net asset value if
the Fund makes such investments while remaining substantially fully
invested.
Foreign Currency Translation -- The books and records of the International
Equity and the International Equity Index Funds are maintained in U.S.
dollars on the following basis: (i) market value of investment securities,
other assets and liabilities at the current rate of exchange; and (ii)
purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Equity and the International Equity Index Funds do not
isolate the portion of operations resulting from changes in foreign
exchange rates on investments from fluctuations arising from changes in
market prices of securities held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments and foreign
currencies.
Forward Foreign Currency Contracts -- The International Equity and the
International Equity Index Funds may enter into forward foreign currency
contracts as hedges against either specific transactions, fund positions or
anticipated fund positions. All commitments are "marked-to-market" daily at
the applicable foreign exchange rate, and any resulting unrealized gains or
losses are recorded currently. The Fund realizes gains and losses at the
time forward contracts are extinguished. Unrealized gains or losses on
outstanding positions in forward foreign currency contracts held at the
close of the year are recognized as ordinary income or loss for Federal
income tax purposes. As of March 31, 2006, there were no open forward
foreign currency contracts.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to deposit an amount equal to 110% of the overdraft
in a compensating balance account with its custodian, SunTrust Bank, a
wholly-owned subsidiary of SunTrust Banks, Inc., on the following business
day. If a Fund has a positive cash balance in excess of $100,000 it is
allowed to overdraw an amount equal to 90% of the balance from SunTrust
Bank on the following business day. All such deposits to, and overdrafts
from, the compensating balance account are non-interest bearing and are for
a duration of one business day. This does not apply to the International
Equity Fund or International Equity Index Fund.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
if any, are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
128
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes within a Fund on
the basis of the relative daily net assets.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income, if any, are declared and paid each calendar quarter by
the Funds, except for the International Equity and the International Equity
Index Funds, which distribute income annually. Any net realized capital
gains on sales of securities are distributed to shareholders at least
annually. However, to the extent that net realized capital gains can be
offset by capital loss carryovers, such gains will not be distributed.
Redemption Fees -- A redemption fee of 2% of the value of the shares sold
will be imposed on shares redeemed within seven days or less after the date
of purchase (60 days or less for the International Equity and International
Equity Index Funds) unless the redemption is excluded under the Funds'
Redemption Fee Policy. For the year ended March 31, 2006, the Funds
collected redemption fees which are disclosed on the Statements of Changes
in Net Assets. Redemption Fees are recorded as an addition to paid-in
capital.
4. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly-owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements. Zevenbergen Capital,
Inc. serves as the Sub-Adviser for the Aggressive Growth Stock Fund and
Emerging Growth Stock Fund.
Under revised terms of the agreements dated August 1, 2005, the Funds are
charged the following annual fees, which are computed daily and paid
monthly based upon average daily net assets. Breakpoints are used in
computing the advisory fee. The maximum annual advisory fee is charged on
average daily net assets of each Fund up to $500 million, a discount of 5%
applies on the next $500 million, a discount of 10% applies on amounts over
$1 billion. Fee rates for the period August 1, 2005 through March 31, 2006
were as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
----------------- -------------
Capital Appreciation Fund................................... 0.92 0.92
International Equity Fund................................... 1.15 1.13
International Equity Index Fund............................. 0.50 0.49
Large Cap Relative Value Fund............................... 0.83 0.81
Large Cap Value Equity Fund................................. 0.78 0.78
Mid-Cap Equity Fund......................................... 1.00 1.00
Mid-Cap Value Equity Fund................................... 1.00 1.00
Quality Growth Stock Fund................................... 0.85 0.83
Small Cap Growth Stock Fund................................. 1.12 1.09
Small Cap Value Equity Fund................................. 1.13 1.13
Strategic Quantitative Equity Fund.......................... 0.85 0.85
Balanced Fund............................................... 0.85 0.85
Life Vision Aggressive Growth Fund.......................... 0.10 0.10
Life Vision Conservative Fund............................... 0.10 --
Life Vision Growth and Income Fund.......................... 0.10 0.10
Life Vision Moderate Growth Fund............................ 0.10 0.09
Life Vision Target Date 2015 Fund........................... 0.10 0.10
Life Vision Target Date 2025 Fund........................... 0.10 0.10
Life Vision Target Date 2035 Fund........................... 0.10 0.10
</Table>
129
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
For their services as Investment Adviser and Sub-Adviser, respectively, the
Investment Adviser and Zevenbergen Capital, Inc. receive aggregate annual
fees from the Aggressive Growth Stock and Emerging Growth Stock Funds,
which are computed daily and paid monthly based upon average daily net
assets. Fee rates for the period August 1, 2005 through March 31, 2006 were
as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
----------------- -------------
Aggressive Growth Stock Fund................................ 1.10 1.09
Emerging Growth Stock Fund.................................. 1.10 1.09
</Table>
Prior to August 1, 2005, the Funds that were in operation during that
period paid the following annual fees which were computed daily and paid
monthly based upon average daily net assets. Fee rates for the period April
1, 2005 through July 31, 2005, including the aggregate fees paid to the
Investment Adviser and Sub-Adviser for the Aggressive Growth Stock and
Emerging Growth Stock Funds, were as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
----------------- -------------
Aggressive Growth Stock Fund................................ 1.25 1.06
Capital Appreciation Fund................................... 1.15 1.14
Emerging Growth Stock Fund.................................. 1.25 1.12
International Equity Fund................................... 1.25 1.25
International Equity Index Fund............................. 0.90 0.84
Large Cap Relative Value Fund............................... 0.90 0.90
Large Cap Value Equity Fund................................. 0.80 0.80
Mid-Cap Equity Fund......................................... 1.15 1.15
Mid-Cap Value Equity Fund................................... 1.25 1.18
Quality Growth Stock Fund................................... 1.15 1.11
Small Cap Growth Stock Fund................................. 1.15 1.15
Small Cap Value Equity Fund................................. 1.15 1.15
Strategic Quantitative Equity Fund.......................... 1.15 1.00
Balanced Fund............................................... 0.95 0.92
Life Vision Aggressive Growth Fund.......................... 0.25 0.12
Life Vision Conservative Fund............................... 0.25 --
Life Vision Growth and Income Fund.......................... 0.25 0.14
Life Vision Moderate Growth Fund............................ 0.25 0.16
</Table>
The Investment Adviser has contractually agreed, effective August 1, 2005
until at least August 1, 2007, to waive fees and/or reimburse each Fund to
the extent necessary to maintain each Fund's Total Fund Operating Expenses,
expressed as a percentage of average daily net assets, as noted below:
<Table>
<Caption>
Total Operating
Expenses(%)
---------------
Life Vision Aggressive Growth Fund.......................... I Shares 0.20
Life Vision Aggressive Growth Fund.......................... A Shares 0.50
Life Vision Aggressive Growth Fund.......................... C Shares 1.20
Life Vision Aggressive Growth Fund.......................... B Shares 0.95
Life Vision Conservative Fund............................... I Shares 0.20
Life Vision Conservative Fund............................... A Shares 0.50
Life Vision Conservative Fund............................... C Shares 1.20
Life Vision Conservative Fund............................... B Shares 0.95
</Table>
130
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Total Operating
Expenses(%)
---------------
Life Vision Growth and Income Fund.......................... I Shares 0.20
Life Vision Growth and Income Fund.......................... A Shares 0.50
Life Vision Growth and Income Fund.......................... C Shares 1.20
Life Vision Growth and Income Fund.......................... B Shares 0.95
Life Vision Moderate Growth Fund............................ I Shares 0.20
Life Vision Moderate Growth Fund............................ A Shares 0.50
Life Vision Moderate Growth Fund............................ C Shares 1.20
Life Vision Moderate Growth Fund............................ B Shares 0.95
Life Vision Target Date 2015 Fund........................... I Shares 0.20
Life Vision Target Date 2015 Fund........................... A Shares 0.50
Life Vision Target Date 2015 Fund........................... C Shares 1.20
Life Vision Target Date 2025 Fund........................... I Shares 0.20
Life Vision Target Date 2025 Fund........................... A Shares 0.50
Life Vision Target Date 2025 Fund........................... C Shares 1.20
Life Vision Target Date 2035 Fund........................... I Shares 0.20
Life Vision Target Date 2035 Fund........................... A Shares 0.50
Life Vision Target Date 2035 Fund........................... C Shares 1.20
</Table>
Also effective August 1, 2005, the Investment Adviser may retain the
difference between the Total Operating Expense and the actual total expense
ratio to recapture any of its prior waivers or reimbursements, until August
1, 2008. Such repayments shall be made monthly, but only to the extent that
such repayments would not cause the annualized total expense ratio to
exceed the Total Operating Expense in place at that time. As of March 31,
2006, the fee repayments that may potentially be made to the Investment
Adviser are as follows (in thousands):
<Table>
<Caption>
Amount($)
----------
Life Vision Aggressive Growth Fund.......................... 2
Life Vision Conservative Fund............................... 21
Life Vision Growth and Income Fund.......................... 1
Life Vision Moderate Growth Fund............................ 10
</Table>
During the year ended March 31, 2006, the Investment Adviser also
voluntarily waived fees in the Funds in order to maintain a more
competitive expense ratio for shareholders. These voluntary waivers will
not be recouped by the Investment Adviser in subsequent years.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and STI Classic Variable Trust are parties to a Master Services Agreement
with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the
Administrator provides administrative, fund accounting, transfer agent and
shareholder services for an annual fee (expressed as a percentage of the
combined average daily net assets of the Trust and STI Class Variable
Trust) of: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and
0.0175% on amounts over $30 billion plus an additional class fee of $2,593
per class annually, applicable to each additional class of shares over 145
total classes of shares.
The Master Services Agreement provides for the Administrator to pay certain
insurance premiums for the Trust and STI Classic Variable Trust, including
$300,000 toward the premium for Directors and Officers Liability/Errors and
Omissions insurance coverage, and $25,000 toward the premium for Fidelity
Bond coverage. The Administrator has agreed, under the terms of the Master
Services Agreement, to pay certain legal expenses for the benefit of the
Trust and the Classic Variable Trust relating to administrative
131
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
service matters. The Master Services Agreement further provides for the
Administrator to waive a portion of its fees for the benefit of
shareholders. Such payments and fee waivers are expected to total
approximately $400,000 to $650,000 annually, and will not be recouped by
the Administrator in subsequent years.
Transfer Agency Agreement -- Prior to December 12, 2005, SunTrust
Investment Services ("STIS"), a wholly-owned subsidiary of SunTrust Banks,
Inc., provided certain transfer agency account activity processing and
servicing to the Trust. STIS received transfer agency service fees based
upon a monthly per account charge for the total shareholder accounts at the
Trust's transfer agent. These fees are included in the Transfer Agent Fees
on the Statements of Operations.
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Services
Agreement. The Distributor receives no fees for its distribution services
under the agreement for the I Shares of any Fund. With respect to the A
Shares, C Shares and B Shares, the Distributor receives amounts, pursuant
to a Distribution Plan and (in the case of C Shares and B Shares) a
Distribution and Service Plan, based upon average daily net assets of each
respective class which are computed daily and paid monthly. These fees,
expressed as a percentage of average daily net assets, for the period
August 1, 2005 through March 31, 2006 are as follows:
<Table>
<Caption>
Board Approved Board Approved and Board Approved and
and Charged Charged Charged
A Share Distribution C Share Distribution B Share Distribution
Fee(%) and Service Fee(%) and Service Fee(%)
-------------------- -------------------- --------------------
Aggressive Growth Stock Fund....................... 0.30 1.00 N/A
Capital Appreciation Fund.......................... 0.30 1.00 N/A
Emerging Growth Stock Fund......................... 0.30 1.00 N/A
International Equity Fund.......................... 0.30 1.00 N/A
International Equity Index Fund.................... 0.30 1.00 N/A
Large Cap Relative Value Fund...................... 0.25 1.00 N/A
Large Cap Value Equity Fund........................ 0.30 1.00 N/A
Mid-Cap Equity Fund................................ 0.30 1.00 N/A
Mid-Cap Value Equity Fund.......................... 0.30 1.00 N/A
Quality Growth Stock Fund.......................... 0.30 1.00 N/A
Small Cap Growth Stock Fund........................ 0.30 1.00 N/A
Small Cap Value Equity Fund........................ 0.25 0.25 N/A
Strategic Quantitative Equity Fund................. 0.25 1.00 N/A
Balanced Fund...................................... 0.28 1.00 N/A
Life Vision Aggressive Growth Fund................. 0.30 1.00 0.75
Life Vision Conservative Fund...................... 0.30 1.00 0.75
Life Vision Growth and Income Fund................. 0.30 1.00 0.75
Life Vision Moderate Growth Fund................... 0.30 1.00 0.75
Life Vision Target Date 2015 Fund.................. 0.30 1.00 N/A
Life Vision Target Date 2025 Fund.................. 0.30 1.00 N/A
Life Vision Target Date 2035 Fund.................. 0.30 1.00 N/A
</Table>
132
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Prior to August 1, 2005, with respect to the A Shares, C Shares and B
Shares, the Distributor received amounts, pursuant to a Distribution Plan
and (in the case of C Shares and B Shares) a Distribution and Service Plan,
based upon average daily net assets of each respective class which were
computed daily and paid monthly. These fees, expressed as a percentage of
average daily net assets, for the Funds that were in operation during the
period April 1, 2005 through July 31, 2005 were as follows:
<Table>
<Caption>
Maximum Maximum
Maximum C Share B Share
A Share Net Annual Distribution Net Annual Distribution Net Annual
Distribution Fees and Fees and Fees
Fee(%) Paid(%) Service Fee(%) Paid(%) Service Fee(%) Paid(%)
--------------- ---------- --------------- ---------- --------------- ----------
Aggressive Growth Stock Fund... 0.35 0.35 1.00 0.92 N/A N/A
Capital Appreciation Fund...... 0.68 0.68 1.00 1.00 N/A N/A
Emerging Growth Stock Fund..... 0.35 0.35 1.00 0.88 N/A N/A
International Equity Fund...... 0.33 0.33 1.00 1.00 N/A N/A
International Equity Index
Fund......................... 0.38 0.38 1.00 1.00 N/A N/A
Large Cap Relative Value Fund.. 0.25 0.23 1.00 0.98 N/A N/A
Large Cap Value Equity Fund.... 0.33 0.33 1.00 1.00 N/A N/A
Mid-Cap Equity Fund............ 0.43 0.43 1.00 1.00 N/A N/A
Mid-Cap Value Equity Fund...... 0.40 0.40 1.00 0.70 N/A N/A
Quality Growth Stock Fund...... 0.40 0.40 1.00 1.00 N/A N/A
Small Cap Growth Stock Fund.... 0.50 0.40 1.00 1.00 N/A N/A
Small Cap Value Equity Fund.... 0.33 0.25 1.00 0.25 N/A N/A
Strategic Quantitative Equity
Fund......................... 0.25 0.25 1.00 1.00 N/A N/A
Balanced Fund.................. 0.28 0.28 1.00 1.00 N/A N/A
Life Vision Aggressive Growth
Fund......................... 0.50 0.34 1.00 0.78 1.00 0.83
Life Vision Conservative
Fund......................... 0.40 0.40 1.00 0.28 1.00 0.80
Life Vision Growth and Income
Fund......................... 0.50 0.36 1.00 0.78 1.00 0.81
Life Vision Moderate Growth
Fund......................... 0.50 0.24 1.00 0.75 1.00 0.69
</Table>
Custodian Agreements -- SunTrust Bank acts as Custodian for the Funds,
except for the International Equity Fund and the International Equity Index
Fund, which has appointed Brown Brothers Harriman & Co. as Custodian. The
Funds pay custody fees on the basis of net assets and transaction costs.
Other -- Certain officers of the Trust are also officers of the Investment
Adviser, the Administrator and/or the Distributor. Such officers receive no
fees from the Trust for serving as officers of the Trust. Each of the
trustees receives an annual retainer fee and an additional fee for each
meeting attended. Trustees receive additional fee for attendance at
committee meetings. The current fees are as follows:
<Table>
<Caption>
Chairman($) Trustee($)
----------- ----------
Annual Retainer............................................. 50,000 40,000
Regular Meeting Fee......................................... 7,500 6,000
Special Meeting Fee......................................... 3,750 3,000
Committee Meeting Fee....................................... 4,500 2,500
</Table>
Trustees are also reimbursed for certain expenses incurred. The Investment
Adviser provides services to the Trust and the STI Classic Variable Trust
to ensure compliance with applicable laws and regulations. In addition, the
Investment Adviser has designated a dedicated compliance staff and an
employee to serve as Chief Compliance Officer. The Investment Adviser
received a fee totaling $120,000 for these services during the year ended
March 31, 2006. The Investment Adviser has expanded the scope of its
compliance
133
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
services to the Trust and the STI Classic Variable Trust and, effective
April 1, 2006, will receive annual fees totaling $475,000 for the fiscal
year ending March 31, 2007. In addition, the Administrator provides an
employee and staff to assist the Chief Compliance Officer for the Trust,
including providing certain related services, and receives an annual fee of
$150,000 for providing these services. The fees above are allocated across
the assets of the Trust and the STI Classic Variable Trust. For the year
ended March 31, 2006, the total amount paid by the Trust related to
trustees and compliance services was $961,554.
During the period the Investment Adviser reimbursed the International
Equity Fund and the International Equity Index Fund $1,870 and $6,506,
respectively, for losses relating to the application of revised foreign
exchange rates.
On February 27, 2006, the Balanced Fund received a redemption request of
approximately $53,000,000, which represented approximately 31% of the net
assets of that Fund as of that date. The Investment Adviser immediately
sold significant security positions sufficient to generate the amount of
cash required to satisfy the redemption request. These sales were conducted
in an expedited manner not contemplated in the ordinary operations of the
Fund. As a result, certain of the securities were sold at prices less than
those achievable in the ordinary operations of the Fund. The Investment
Adviser determined the security sales, if undertaken in the ordinary
operations of the Fund, would have resulted in additional sales proceeds to
the Fund. Accordingly, the Investment Adviser and an affiliate of the
Investment Adviser, contributed a total of $71,348 to the Balanced Fund,
such that shareholders were unaffected by the impact of the expedited
security sales.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital Markets, Inc., which is a direct non-bank
subsidiary of SunTrust Banks, Inc., to act as an agent in placing
repurchase agreements for the Trust. For the year ended March 31, 2006, the
following Funds paid SunTrust Robinson Humphrey, through a reduction in the
yield earned by the Funds on those repurchase agreements, the following
amounts (in thousands):
<Table>
<Caption>
Fees($)
-------
Aggressive Growth Stock Fund................................ 2
Capital Appreciation Fund................................... 8
Emerging Growth Stock Fund.................................. --
Large Cap Value Equity Fund................................. 11
Mid-Cap Equity Fund......................................... 6
Quality Growth Stock Fund................................... 1
Small Cap Growth Stock Fund................................. 21
Small Cap Value Equity Fund................................. 6
Strategic Quantitative Equity Fund.......................... 2
Balanced Fund............................................... 3
Amounts designated as "--" round to less than $1,000.
</Table>
5. Investment Transactions
The cost of purchases and the proceeds from sales and maturities of securities,
excluding short-term investments and U.S. Government securities, for the year
ended March 31, 2006 were as follows (in thousands):
<Table>
<Caption>
Sales and
Purchases($) Maturities($)
------------ -------------
Aggressive Growth Stock Fund................................ 202,926 33,727
Capital Appreciation Fund................................... 1,165,303 1,537,573
Emerging Growth Stock Fund.................................. 50,324 32,262
International Equity Fund................................... 682,173 392,894
</Table>
134
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Sales and
Purchases($) Maturities($)
------------ -------------
International Equity Index Fund............................. 156,355 40,795
Large Cap Relative Value Fund............................... 939,317 724,082
Large Cap Value Equity Fund................................. 906,734 1,009,228
Mid-Cap Equity Fund......................................... 557,980 418,623
Mid-Cap Value Equity Fund................................... 357,945 357,597
Quality Growth Stock Fund................................... 117,387 170,870
Small Cap Growth Stock Fund................................. 1,632,072 1,265,231
Small Cap Value Equity Fund................................. 434,849 607,379
Strategic Quantitative Equity Fund.......................... 888,936 718,475
Balanced Fund............................................... 114,509 219,834
Life Vision Aggressive Growth Fund.......................... 20,976 16,373
Life Vision Conservative Fund............................... 5,491 2,467
Life Vision Growth and Income Fund.......................... 39,412 37,029
Life Vision Moderate Growth Fund............................ 62,761 52,755
Life Vision Target Date 2015 Fund........................... 269 43
Life Vision Target Date 2025 Fund........................... 1,030 38
Life Vision Target Date 2035 Fund........................... 633 103
</Table>
The cost of purchases and proceeds from sales and maturities of long-term U.S.
Government securities for the Balanced Fund during the year ended March 31,
2006, in thousands, was $137,487 and $188,420, respectively.
6. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with each applicable country's tax rules and rates.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature (i.e. foreign currency transactions), such amounts are
reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
At March 31, 2006, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes. These differences were
generally due to losses on wash sales, which cannot be used for Federal income
tax purposes in the current year and have been deferred for use in future years.
The Federal tax cost and aggregate gross unrealized appreciation and
depreciation for securities held by the Funds at March 31, 2006, are presented
on each Fund's Schedule of Portfolio Investments.
The tax character of distributions paid to shareholders during the year ended
March 31, 2006 was as follows (in thousands):
<Table>
<Caption>
Distributions Paid From
-------------------------
Net Net Long Total
Investment Term Capital Distributions
Fund Income($) Gains($) Paid($)*
- ---- ---------- ------------ -------------
Aggressive Growth Stock Fund................................ 5 -- 5
Capital Appreciation Fund................................... 2,820 33,118 35,938
</Table>
135
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Distributions Paid From
-------------------------
Net Net Long Total
Investment Term Capital Distributions
Fund Income($) Gains($) Paid($)*
- ---- ---------- ------------ -------------
Emerging Growth Stock Fund.................................. -- -- --
International Equity Fund................................... 8,844 -- 8,844
International Equity Index Fund............................. 9,687 -- 9,687
Large Cap Relative Value Fund............................... 20,863 51,016 71,879
Large Cap Value Equity Fund................................. 14,910 -- 14,910
Mid-Cap Equity Fund......................................... 1,670 16,129 17,799
Mid-Cap Value Equity Fund................................... 8,090 15,245 23,335
Quality Growth Stock Fund................................... 529 -- 529
Small Cap Growth Stock Fund................................. 14,140 97,800 111,940
Small Cap Value Equity Fund................................. 13,487 141,539 155,026
Strategic Quantitative Equity Fund.......................... 12,192 588 12,780
Balanced Fund............................................... 3,711 10,492 14,203
Life Vision Aggressive Growth Fund.......................... 652 617 1,269
Life Vision Conservative Fund............................... 309 -- 309
Life Vision Growth and Income Fund.......................... 2,058 -- 2,058
Life Vision Moderate Growth Fund............................ 5,382 2,321 7,703
Life Vision Target Date 2015 Fund........................... 2 -- 2
Life Vision Target Date 2025 Fund........................... 2 -- 2
Life Vision Target Date 2035 Fund........................... 3 -- 3
</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 $0.
The tax character of distributions paid to shareholders during the period ended
March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions Paid From
-------------------------
Net Net Long Total
Investment Term Capital Distributions
Fund Income($) Gains($) Paid($)*
- ---- ---------- ------------ -------------
Aggressive Growth Stock Fund................................ -- -- --
Capital Appreciation Fund................................... 2,919 26,372 29,291
Emerging Growth Stock Fund.................................. -- -- --
International Equity Fund................................... 4,175 -- 4,175
International Equity Index Fund............................. 8,680 -- 8,680
Large Cap Relative Value Fund............................... 14,777 18,982 33,759
Large Cap Value Equity Fund................................. 12,627 -- 12,627
Mid-Cap Equity Fund......................................... 987 -- 987
Mid-Cap Value Equity Fund................................... 1,946 -- 1,946
Quality Growth Stock Fund................................... 178 -- 178
Small Cap Growth Stock Fund................................. 33,850 71,394 105,244
Small Cap Value Equity Fund................................. 9,030 50,922 59,952
Strategic Quantitative Equity Fund.......................... 3,904 932 4,836
Balanced Fund............................................... 4,430 2,651 7,081
Life Vision Aggressive Growth Fund.......................... 8,680 -- 8,680
</Table>
136
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Distributions Paid From
-------------------------
Net Net Long Total
Investment Term Capital Distributions
Fund Income($) Gains($) Paid($)*
- ---- ---------- ------------ -------------
Life Vision Conservative Fund............................... 492 -- 492
Life Vision Growth and Income Fund.......................... 142 1 143
Life Vision Moderate Growth Fund............................ 1,550 -- 1,550
</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 $0.
The tax character of distributions paid to shareholders during the year ended
May 31, 2004 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
-----------------------------
Net Total
Investment Net Long Term Total Taxable Return of Distributions
Fund Income($) Capital Gains($) Distributions($) Capital($) Paid($)*
---- ---------- ---------------- ---------------- ---------- -------------
Aggressive Growth Stock Fund...................... -- -- -- -- --
Capital Appreciation Fund......................... -- -- -- -- --
Emerging Growth Stock Fund........................ -- -- -- -- --
International Equity Fund......................... 3,509 -- 3,509 -- 3,509
International Equity Index Fund................... 4,082 -- 4,082 -- 4,082
Large Cap Relative Value Fund..................... 7,461 -- 7,461 -- 7,461
Large Cap Value Equity Fund....................... 10,772 -- 10,772 -- 10,772
Mid-Cap Equity Fund............................... 922 -- 922 -- 922
Mid-Cap Value Equity Fund......................... 654 -- 654 -- 654
Small Cap Growth Stock Fund....................... -- -- -- -- --
Small Cap Value Equity Fund....................... 2,438 -- 2,438 -- 2,438
Strategic Quantitative Equity Fund................ 994 -- 994 -- 994
Balanced Fund..................................... 4,343 -- 4,343 -- 4,343
Life Vision Aggressive Growth Fund................ 124 -- 124 12 136
Life Vision Conservative Fund..................... 50 -- 50 -- 50
Life Vision Growth and Income Fund................ 1,035 -- 1,035 -- 1,035
Life Vision Moderate Growth Fund.................. 1,846 -- 1,846 -- 1,846
</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 $0.
As of March 31, 2006 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Undistributed Undistributed Accumulated
Ordinary Long Term Accumulated Distributions Capital and
Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ---------------- ----------- ------------- -----------------
Aggressive Growth Stock Fund.... -- -- -- -- (8,578)
Capital Appreciation Fund....... 15,134 39,578 54,712 -- --
Emerging Growth Stock Fund...... -- -- -- -- (525)
International Equity Fund....... 6,616 -- 6,616 -- (25,734)
International Equity Index
Fund.......................... 3,719 -- 3,719 -- (52,744)
Large Cap Relative Value Fund... 19,947 51,873 71,820 -- --
Large Cap Value Equity Fund..... 11 -- 11 -- (30,146)
Mid-Cap Equity Fund............. 143 4,696 4,839 -- --
Mid-Cap Value Equity Fund....... 10,520 5,819 16,339 -- --
Quality Growth Stock Fund....... -- -- -- -- (194,445)
Small Cap Growth Stock Fund..... 15,457 52,014 67,471 -- (665)
<Caption>
Total
Unrealized Accumulated
Appreciation Earnings
(Depreciation)($)*** (Deficit)($)
-------------------- ------------
Aggressive Growth Stock Fund.... 30,395 21,817
Capital Appreciation Fund....... 165,717 220,429
Emerging Growth Stock Fund...... 10,759 10,234
International Equity Fund....... 195,533 176,415
International Equity Index
Fund.......................... 216,841 167,816
Large Cap Relative Value Fund... 267,062 338,882
Large Cap Value Equity Fund..... 114,943 84,808
Mid-Cap Equity Fund............. 59,696 64,535
Mid-Cap Value Equity Fund....... 21,142 37,481
Quality Growth Stock Fund....... 27,551 (166,894)
Small Cap Growth Stock Fund..... 370,097 436,903
</Table>
137
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Undistributed Undistributed Accumulated
Ordinary Long Term Accumulated Distributions Capital and
Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ---------------- ----------- ------------- -----------------
Small Cap Value Equity Fund..... 26,284 64,964 91,248 -- --
Strategic Quantitative Equity
Fund.......................... 1,418 6,098 7,516 -- --
Balanced Fund................... 2,428 4,053 6,481 -- --
Life Vision Aggressive Growth
Fund.......................... 99 1,021 1,120 -- --
Life Vision Conservative Fund... 31 69 100 -- --
Life Vision Growth and Income
Fund.......................... 40 2,609 2,649 -- --
Life Vision Moderate Growth
Fund.......................... 395 2,551 2,946 -- --
Life Vision Target Date 2015
Fund.......................... -- 3 3 -- --
Life Vision Target Date 2025
Fund.......................... 1 1 2 -- --
Life Vision Target Date 2035
Fund.......................... 1 4 5 -- --
<Caption>
Total
Unrealized Accumulated
Appreciation Earnings
(Depreciation)($)*** (Deficit)($)
-------------------- ------------
Small Cap Value Equity Fund..... 234,779 326,027
Strategic Quantitative Equity
Fund.......................... 12,836 20,352
Balanced Fund................... 8,174 14,655
Life Vision Aggressive Growth
Fund.......................... 10,110 11,230
Life Vision Conservative Fund... 219 319
Life Vision Growth and Income
Fund.......................... 17,077 19,726
Life Vision Moderate Growth
Fund.......................... 15,961 18,907
Life Vision Target Date 2015
Fund.......................... 11 14
Life Vision Target Date 2025
Fund.......................... 18 20
Life Vision Target Date 2035
Fund.......................... 17 22
</Table>
- ---------------
** As of the latest tax year end of March 31, 2006, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations (in thousands). To the extent
that these carryovers are used to offset future gains, it is probable that
the gains so offset will not be distributed to shareholders:
<Table>
<Caption>
Expires
-------------------------------------------------------------------
2007($) 2009($) 2010($) 2011($) 2012($) 2013($) 2014($)
------- ------- ------- ------- ------- ------- -------
Aggressive Growth Stock Fund............................ -- -- 3,369 -- -- 1,399 2,683
Emerging Growth Stock Fund.............................. -- -- -- -- -- 525 --
International Equity Fund............................... -- -- -- 8,547 17,051 -- --
International Equity Index Fund......................... -- -- 23,637 16,546 9,207 3,126 --
Large Cap Value Equity Fund............................. -- 1,204 -- 28,942 -- -- --
Quality Growth Stock Fund............................... -- 132,265 52,653 9,527 -- -- --
Small Cap Growth Stock Fund............................. 665 -- -- -- -- -- --
</Table>
As of March 31, 2006, the Aggressive Growth Stock Fund has additional capital
loss carryforwards, subject to any applicable limitations on availability, to
offset future gains, if any, as the successor of a merger with the
Information and Technology Fund. This amount is $3,369,014 expiring in 2010.
During the year ended March 31, 2006, the Aggressive Growth Stock Fund,
Emerging Growth Stock Fund, International Equity Fund, International Equity
Index Fund, Large Cap Value Equity Fund, Mid-Cap Equity Fund, Quality Growth
Stock Fund, Small Cap Growth Fund, Life Vision Aggressive Growth Fund and
Life Vision Growth and Income Fund, utilized $2,683, $634, $47,966, $6,424,
$56,312, $11,269, $16,770, $665, $52 and $1,183 in capital loss
carryforwards, respectively, (in thousands).
Net Capital Losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year.
The Aggressive Growth Stock Fund, International Equity Fund and International
Equity Index Fund have incurred and will elect to defer $1,127, $136 and
$228, respectively, (in thousands).
*** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral of losses on wash
sales, the difference between book and tax amortization methods for premium
and market discount, the realization for tax purposes of unrealized
gains/losses on investments in passive foreign investment companies, and the
return of capital adjustments from real estate investment trusts.
7. Risks
The International Equity and International Equity Index Funds invest in
securities of foreign issuers in various countries. Investments in securities of
foreign issuers carry certain risks not ordinarily associated with investments
in securities of U.S. issuers. These risks include future political and economic
developments, and the possible imposition of exchange controls or other foreign
governmental laws and restrictions. In addition, with respect to certain
countries, there is a possibility of expropriation of assets, confiscatory
taxation, political or social instability or diplomatic developments, which
could adversely affect investments in those countries. Emerging market countries
are countries that the World Bank or the United Nations considers to be emerging
or developing. Emerging markets may be more likely to experience political
turmoil or rapid changes in market or economic conditions than more developed
countries. In addition, the financial stability of issuers, including
governments, in emerging market countries may be more precarious than in other
countries. As a
138
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
result, there will tend to be a decreased risk of price volatility associated
with these Fund's investments in emerging market countries, which may be
magnified by currency fluctuations relative to the U.S. dollar.
8. Securities Lending
The Capital Appreciation Fund, International Equity Fund, International Equity
Index Fund, Large Cap Relative Value Fund, Large Cap Value Equity Fund, Mid-Cap
Equity Fund, Mid-Cap Value Equity Fund, Quality Growth Stock Fund, Small Cap
Growth Stock Fund, Small Cap Value Equity Fund and Balanced Fund may lend
portfolio securities to brokers, dealers and other financial organizations that
meet capital and other credit requirements or other criteria established by the
Trust's Board. These loans may not exceed either (i) 50% of the sum of the
market value of all securities of the Fund and the market value of the loan
collateral or (ii) 33.33% of the total market value of all securities of the
Fund. No Fund will lend portfolio securities to its investment adviser,
sub-adviser, or its affiliates unless it has applied for and received specific
authority to do so from the Securities and Exchange Commission. Loans of
portfolio securities will be fully collateralized by cash, letters of credit or
U.S. government securities. The value of the collateral is at least 100% of the
market value of the securities loaned. However, due to market fluctuations
during the day, the value of securities loaned on a particular day may, during
the course of the day, exceed the value of collateral. On each business day, the
amount of collateral is adjusted based on the prior day's market fluctuations
and the current day's lending activity. Income from lending activity is
determined by the amount of interest earned on collateral, less any amounts
payable to the borrowers of the securities and the lending agent. Lending
securities involves certain risks, including the risk that the Fund may be
delayed or prevented from recovering the collateral if the borrower fails to
return the securities.
A fee will be obtained from the borrower if letters of credit or U.S. government
securities are used as collateral. Cash collateral received in connection with
securities lending is invested in the CSFB Enhanced Liquidity Portfolio (the
"Portfolio"). This investment may consist of money market mutual funds
registered under the Investment Company Act of 1940 and money market instruments
including commercial paper, repurchase agreements, U.S. Treasury Bills and U.S.
Agency Obligations. At March 31, 2006, the Portfolio was invested in
certificates of deposit, repurchase agreements, asset backed securities and
corporate bonds (with interest rates ranging from 4.58% to 5.09% and maturity
dates ranging from 04/03/06 to 04/17/17).
The Funds paid fees for security lending for the year ended March 31, 2006,
which have been netted against the Securities Lending Income on the Statements
of Operations. These fees are presented below (in thousands):
<Table>
<Caption>
Fees($)
-------
Capital Appreciation Fund................................... 109
International Equity Fund................................... 148
International Equity Index Fund............................. 159
Large Cap Relative Value Fund............................... 93
Large Cap Value Equity Fund................................. 43
Mid-Cap Equity Fund......................................... 50
Mid-Cap Value Equity Fund................................... 18
Quality Growth Stock Fund................................... 4
Small Cap Growth Stock Fund................................. 301
Small Cap Value Equity Fund................................. 36
Balanced Fund............................................... 44
</Table>
9. Subsequent Events
On April 3, 2006, the Small Cap Quantitative Fund began offering I, A and C
Shares. This Fund offering was approved by the Board on November 18, 2005. At
the regular meeting of the Board on February 14, 2006, the
139
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Board voted to change the name of the Strategic Quantitative Equity Fund to
Large Cap Quantitative Fund effective April 17, 2006.
10. Other Federal Tax Information (Unaudited)
For corporate shareholders, the following percentage of the total ordinary
income distributions paid by the Funds during the year ended March 31, 2006
qualify for the corporate dividends received deductions:
<Table>
<Caption>
Dividend Received
Deduction(%)
-----------------
Capital Appreciation Fund................................... 100.00
Large Cap Relative Value Fund............................... 73.76
Large Cap Value Equity Fund................................. 100.00
Mid-Cap Equity Fund......................................... 100.00
Mid-Cap Value Equity Fund................................... 22.58
Quality Growth Stock Fund................................... 100.00
Small Cap Value Equity Fund................................. 41.17
Strategic Quantitative Equity Fund.......................... 10.56
Balanced Fund............................................... 25.44
Life Vision Aggressive Growth Fund.......................... 63.98
Life Vision Conservative Fund............................... 4.30
Life Vision Growth and Income Fund.......................... 37.29
Life Vision Moderate Growth Fund............................ 10.94
Life Vision Target Date 2015................................ 26.29
Life Vision Target Date 2025................................ 45.74
Life vision Target Date 2035................................ 34.93
</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 year
ended March 31, 2006, the International Equity Fund and International Equity
Index Fund elected to pass through foreign taxes of $1,387 and $1,574,
respectively, (in thousands).
For the year ended March 31, 2006, the following Funds paid qualified dividend
income:
<Table>
<Caption>
Qualified Dividend
Income(%)
------------------
Capital Appreciation........................................ 100.00
International Equity Fund................................... 62.51
International Equity Index Fund............................. 50.85
Large Cap Relative Value Fund............................... 73.62
Large Cap Value Equity Fund................................. 100.00
Mid-Cap Equity Fund......................................... 100.00
Mid-Cap Value Equity Fund................................... 22.02
Quality Growth Stock Fund................................... 100.00
Small Cap Value Equity Fund................................. 41.19
Strategic Quantitative Equity Fund.......................... 9.87
Balanced Fund............................................... 25.12
Life Vision Aggressive Growth Fund.......................... 57.13
Life Vision Conservative Fund............................... 3.95
Life Vision Growth and Income Fund.......................... 32.80
Life Vision Moderate Growth Fund............................ 10.96
Life Vision Target Date 2015................................ 20.94
Life Vision Target Date 2025................................ 42.77
Life Vision Target Date 2035................................ 29.84
</Table>
140
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
STI CLASSIC FUNDS March 31, 2006
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Aggressive Growth Stock Fund,
Capital Appreciation Fund, Emerging Growth Stock Fund, International Equity
Fund, International Equity Index Fund, Large Cap Relative Value Fund (formerly
the Growth and Income Fund), Large Cap Value Equity Fund (formerly the Value
Income Stock Fund), Mid-Cap Equity Fund, Mid-Cap Value Equity Fund, Quality
Growth Stock Fund (formerly the Tax Sensitive Growth Stock Fund), Small Cap
Growth Stock Fund, Small Cap Value Equity Fund, Strategic Quantitative Equity
Fund, Balanced Fund, Life Vision Aggressive Growth Fund, Life Vision
Conservative Fund, Life Vision Growth and Income Fund, Life Vision Moderate
Growth Fund, Life Vision Target Date 2015 Fund, Life Vision Target Date 2025
Fund and Life Vision Target Date 2035 Fund (twenty-one of the fifty-three funds
constituting STI Classic Funds, hereafter referred to as the "Funds") at March
31, 2006, the results of each of their operations, the changes in each of their
net assets and the financial highlights for each of the periods indicated except
as discussed below where Funds were audited by other independent accountants, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2006, by
correspondence with the custodians and brokers, provide a reasonable basis for
our opinion. The financial highlights for the year ended May 31, 2001 were
audited by other independent accountants who have ceased operations. Those
independent accountants expressed an unqualified opinion on those financial
statements in their report dated July 18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2006
141
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
Information pertaining to the trustees and officers of the Trust is set forth
below. Trustees who are not deemed to be "interested persons" of the Trust as
defined in the 1940 Act are referred to as "Independent Trustees." Trustees who
are deemed to be "interested persons" of the Trust are referred to as
"Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed
to be "interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
TERM OF THE STI
POSITION(S) OFFICE AND PRINCIPAL FUND COMPLEX OTHER
NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES*:
Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60 Genuine Parts Company;
3435 Stelzer Road since November Company Piedmont Medical Center;
Columbus, OH 43219 2001 SunTrust Bank
DOB 01/18/36
- ------------------------------------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60 Crawford & Co.
3435 Stelzer Road since November Companies; Partner, King and
Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977
DOB 06/03/42 to 2000)
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60 Genuine Parts Company;
3435 Stelzer Road since May 2000 Company Oxford Industries, Inc.
Columbus, OH 43219
DOB 11/25/47
- ------------------------------------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite; Retired 60 SEI Family of Funds
3435 Stelzer Road since May 1992
Columbus, OH 43219
DOB 12/03/32
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60 ServiceMaster Company; Total
3435 Stelzer Road since November (1997-2004), J. Mack Robinson System Services, Inc.;
Columbus, OH 43219 2004 College of Business, Georgia Transamerica Investors, Inc.
DOB 07/21/49 State University (13 Mutual Funds)
- ------------------------------------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power 60 WellPoint, Inc.; UniSource
3435 Stelzer Road since November Company and SVP, Southern Energy Corp.; HomeBanc Corp.
Columbus, OH 43219 2004 Company (1998-2001)
DOB 11/12/40
- ------------------------------------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite; Vice President and Controller, 60 None
3435 Stelzer Road since May 2005 The Coca-Cola Company
Columbus, OH 43219
DOB 04/10/58
- ------------------------------------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60 Cox Communications; Humana,
3435 Stelzer Road since May 2000 Communications, Inc. Inc.
Columbus, OH 43219 (1985-2005)
DOB 07/04/42
- ------------------------------------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60 None
3435 Stelzer Road since November Accenture (consulting)
Columbus, OH 43219 2004
DOB 07/13/35
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an Interested Trustee because of his directorships
with affiliates of the Investment Adviser. Mr. Ridley may be deemed an
Interested Trustee because of a material business relationship with the parent
of the Investment Adviser.
142
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) (continued)
<Table>
<Caption>
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS
R. Jeffrey Young President One-year; Senior Vice President, Relationship Management, BISYS
3435 Stelzer Road since July 2004 Fund Services (since 2002); Vice President, Client
Columbus, OH 43219 Services, BISYS Fund Services (1997-2002)
DOB 08/22/64
- --------------------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice One-year; Chief Compliance Officer and Managing Director, Trusco
50 Hurt Plaza President, since September 2004; Capital Management, Inc. (since 2003); President,
Atlanta, GA 30303 Assistant since November 2003; Investment Industry Consultants, LLC (2000-2003)
DOB 10/02/52 Secretary; Chief since August 2004
Compliance Officer (respectively)
- --------------------------------------------------------------------------------------------------------------------------------
Joel B. Engle Treasurer, Chief One-year; Director, Fund Administration, BISYS Fund Services
3435 Stelzer Road Financial Officer since May 2006* (since 2006); Self-employed, retail business owner
Columbus, OH 43219 (2003-2006); Vice President, Financial Services, BISYS
DOB 10/31/65 Fund Services (1998-2003)
- --------------------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary and One-year; Senior Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Chief Legal since February 2005 (since 2004); Director and Counsel, Investors Bank &
Columbus, OH 43219 Officer Trust Company (1999-2004)
DOB 07/08/46
- --------------------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant One-year; Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary Since July 2004 (since 2002); Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002)
DOB 04/07/67
- --------------------------------------------------------------------------------------------------------------------------------
Jennifer English Assistant One-year; Assistant Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Secretary Since November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005);
Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments
DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management
Company, LLP (1998-2001)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Elected at the Board of Trustee meeting May 9, 2006.
The Trust's Statement of Additional Information includes additional information
about the Trust's trustees and officers. To request your free copy of the
Statement of Additional Information, call toll free 1-888-STI-FUND.
143
ADDITIONAL INFORMATION (UNAUDITED)
EXPENSE EXAMPLES
As a shareholder of the STI Classic Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases and redemption
fees; (2) ongoing costs, including management fees, 12b-1 distribution and/or
service fees and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in the STI Classic Funds
and to compare these costs with the ongoing costs of investing in other mutual
funds.
These examples are based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from October 1, 2005 through March 31,
2006.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Aggressive Growth Stock Fund........ I Shares $1,000.00 $1,138.60 $ 6.24 1.17%
A Shares 1,000.00 1,137.50 7.83 1.47
C Shares 1,000.00 1,133.10 11.54 2.17
Capital Appreciation Fund........... I Shares 1,000.00 1,080.40 5.13 0.99
A Shares 1,000.00 1,079.00 6.69 1.29
C Shares 1,000.00 1,075.40 10.30 1.99
Emerging Growth Stock Fund.......... I Shares 1,000.00 1,209.20 6.66 1.21
A Shares 1,000.00 1,206.60 8.25 1.50
C Shares 1,000.00 1,203.60 12.09 2.20
International Equity Fund........... I Shares 1,000.00 1,137.40 6.87 1.29
A Shares 1,000.00 1,136.10 8.47 1.59
C Shares 1,000.00 1,131.70 12.17 2.29
International Equity Index Fund..... I Shares 1,000.00 1,147.70 3.53 0.66
A Shares 1,000.00 1,146.30 5.08 0.95
C Shares 1,000.00 1,141.00 8.81 1.65
Large Cap Relative Value Fund....... I Shares 1,000.00 1,075.90 4.55 0.88
A Shares 1,000.00 1,075.10 5.85 1.13
C Shares 1,000.00 1,075.90 9.70 1.88
Large Cap Value Equity Fund......... I Shares 1,000.00 1,106.80 4.46 0.85
A Shares 1,000.00 1,106.20 6.04 1.15
C Shares 1,000.00 1,101.40 9.69 1.85
Mid-Cap Equity Fund................. I Shares 1,000.00 1,076.50 5.64 1.09
A Shares 1,000.00 1,074.80 7.19 1.39
C Shares 1,000.00 1,070.50 10.79 2.09
Mid-Cap Value Equity Fund........... I Shares 1,000.00 1,126.40 5.73 1.08
A Shares 1,000.00 1,124.30 7.31 1.38
C Shares 1,000.00 1,120.50 11.00 2.08
Quality Growth Stock Fund........... I Shares 1,000.00 1,032.70 4.97 0.98
A Shares 1,000.00 1,031.70 6.53 1.29
C Shares 1,000.00 1,027.70 10.06 1.99
Small Cap Growth Stock Fund......... I Shares 1,000.00 1,155.80 6.23 1.16
A Shares 1,000.00 1,154.00 7.84 1.46
C Shares 1,000.00 1,149.70 11.58 2.16
Small Cap Value Equity Fund......... I Shares 1,000.00 1,180.70 6.52 1.20
A Shares 1,000.00 1,179.10 7.88 1.45
C Shares 1,000.00 1,179.30 7.88 1.45
</Table>
144
ADDITIONAL INFORMATION (UNAUDITED) (continued)
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Strategic Quantitative Equity
Fund.............................. I Shares $1,000.00 $1,046.00 $ 4.85 0.95%
A Shares 1,000.00 1,044.50 6.12 1.20
C Shares 1,000.00 1,040.80 9.92 1.95
Balanced Fund....................... I Shares 1,000.00 1,048.70 4.85 0.95
A Shares 1,000.00 1,046.90 6.28 1.23
C Shares 1,000.00 1,043.30 9.93 1.95
Life Vision Aggressive Growth
Fund.............................. I Shares 1,000.00 1,094.90 0.99 0.19
A Shares 1,000.00 1,093.40 2.56 0.49
B Shares 1,000.00 1,092.20 4.90 0.94
C Shares 1,000.00 1,089.70 6.20 1.19
Life Vision Conservative Fund....... I Shares 1,000.00 1,025.50 1.01 0.20
A Shares 1,000.00 1,023.80 2.47 0.49
B Shares 1,000.00 1,022.20 4.74 0.94
C Shares 1,000.00 1,019.40 5.99 1.19
Life Vision Growth and Income
Fund.............................. I Shares 1,000.00 1,073.40 0.93 0.18
A Shares 1,000.00 1,071.00 2.48 0.48
B Shares 1,000.00 1,068.30 4.80 0.93
C Shares 1,000.00 1,068.10 6.03 1.17
Life Vision Moderate Growth Fund.... I Shares 1,000.00 1,052.20 0.87 0.17
A Shares 1,000.00 1,050.30 2.40 0.47
B Shares 1,000.00 1,048.00 4.70 0.92
C Shares 1,000.00 1,047.30 5.97 1.17
Life Vision Target Date 2015........ I Shares(a) 1,000.00 1,099.40 1.05 0.20
Life Vision Target Date 2025........ I Shares(b) 1,000.00 1,123.30 1.06 0.20
Life Vision Target Date 2035........ I Shares(c) 1,000.00 1,101.40 1.05 0.20
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
(a) Information shown reflects values for the period from October 12, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
(b) Information shown reflects values for the period from October 21, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
(c) Information shown reflects values for the period from November 2, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on each STI Classic Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of
145
ADDITIONAL INFORMATION (UNAUDITED) (continued)
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Aggressive Growth Stock Fund........ I Shares $1,000.00 $1,019.10 $ 5.89 1.17%
A Shares 1,000.00 1,017.60 7.39 1.47
C Shares 1,000.00 1,014.11 10.90 2.17
Capital Appreciation Fund........... I Shares 1,000.00 1,020.00 4.99 0.99
A Shares 1,000.00 1,018.50 6.49 1.29
C Shares 1,000.00 1,015.01 10.00 1.99
Emerging Growth Stock Fund.......... I Shares 1,000.00 1,018.90 6.09 1.21
A Shares 1,000.00 1,017.45 7.54 1.50
C Shares 1,000.00 1,013.96 11.05 2.20
International Equity Fund........... I Shares 1,000.00 1,018.50 6.49 1.29
A Shares 1,000.00 1,017.00 8.00 1.59
C Shares 1,000.00 1,013.51 11.50 2.29
International Equity Index Fund..... I Shares 1,000.00 1,021.64 3.33 0.66
A Shares 1,000.00 1,020.19 4.78 0.95
C Shares 1,000.00 1,016.70 8.30 1.65
Large Cap Relative Value Fund....... I Shares 1,000.00 1,020.54 4.43 0.88
A Shares 1,000.00 1,019.30 5.69 1.13
C Shares 1,000.00 1,015.56 9.45 1.88
Large Cap Value Equity Fund......... I Shares 1,000.00 1,020.69 4.28 0.85
A Shares 1,000.00 1,019.20 5.79 1.15
C Shares 1,000.00 1,015.71 9.30 1.85
Mid-Cap Equity Fund................. I Shares 1,000.00 1,024.28 0.66 0.13
A Shares 1,000.00 1,018.00 6.99 1.39
C Shares 1,000.00 1,014.51 10.50 2.09
Mid-Cap Value Equity Fund........... I Shares 1,000.00 1,019.55 5.44 1.08
A Shares 1,000.00 1,018.05 6.94 1.38
C Shares 1,000.00 1,014.56 10.45 2.08
Quality Growth Stock Fund........... I Shares 1,000.00 1,020.04 4.94 0.98
A Shares 1,000.00 1,018.50 6.49 1.29
C Shares 1,000.00 1,015.01 10.00 1.99
Small Cap Growth Stock Fund......... I Shares 1,000.00 1,019.15 5.84 1.16
A Shares 1,000.00 1,017.65 7.34 1.46
C Shares 1,000.00 1,014.16 10.85 2.16
Small Cap Value Equity Fund......... I Shares 1,000.00 1,018.95 6.04 1.20
A Shares 1,000.00 1,017.70 7.29 1.45
C Shares 1,000.00 1,017.70 7.29 1.45
Strategic Quantitative Equity
Fund.............................. I Shares 1,000.00 1,020.19 4.78 0.95
A Shares 1,000.00 1,018.95 6.04 1.20
C Shares 1,000.00 1,015.21 9.80 1.95
Balanced Fund....................... I Shares 1,000.00 1020.19 4.78 0.95
A Shares 1,000.00 1018.80 6.19 1.23
C Shares 1,000.00 1015.21 9.80 1.95
Life Vision Aggressive Growth
Fund.............................. I Shares 1,000.00 1,023.98 0.96 0.19
A Shares 1,000.00 1,022.49 2.47 0.49
B Shares 1,000.00 1,020.24 4.73 0.94
C Shares 1,000.00 1,019.00 5.99 1.19
Life Vision Conservative Fund....... I Shares 1,000.00 1,023.93 1.01 0.20
A Shares 1,000.00 1,022.49 2.47 0.49
B Shares 1,000.00 1,020.24 4.73 0.94
C Shares 1,000.00 1,019.00 5.99 1.19
</Table>
146
ADDITIONAL INFORMATION (UNAUDITED) (continued)
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Life Vision Growth and Income
Fund.............................. I Shares $1,000.00 $1,024.03 $ 0.91 0.18%
A Shares 1,000.00 1,022.54 2.42 0.48
B Shares 1,000.00 1,020.29 4.68 0.93
C Shares 1,000.00 1,019.10 5.89 1.17
Life Vision Moderate Growth Fund.... I Shares 1,000.00 1,024.08 0.86 0.17
A Shares 1,000.00 1,022.59 2.37 0.47
B Shares 1,000.00 1,020.34 4.63 0.92
C Shares 1,000.00 1,019.10 5.89 1.17
Life Vision Target Date 2015........ I Shares(a) 1,000.00 1,023.93 1.01 0.20
Life Vision Target Date 2025........ I Shares(b) 1,000.00 1,023.93 1.01 0.20
Life Vision Target Date 2035........ I Shares(c) 1,000.00 1,023.93 1.01 0.20
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
(a) Information shown reflects values for the period from October 12, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
(b) Information shown reflects values for the period from October 21, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
(c) Information shown reflects values for the period from November 2, 2005
(commencement of operations) to March 31, 2006 and has been calculated using
expense ratios and rates of return for the same period.
PROXY VOTING
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-888-STI-FUND. The information also is
included in the Funds' Statement of Additional Information, which is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio
securities held during the most recent twelve months ended June 30 is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review or, for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
147
INVESTMENT ADVISER:
Trusco Capital Management, Inc.
This information must be preceded or accompanied by a current prospectus for
each Fund described. An investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before investing or sending
money. This and other important information about STI Classic Funds can be found
in the Fund's prospectus. For additional information, please call
1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus
carefully before investing.
DISTRIBUTOR:
BISYS Fund Services Limited Partnership
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
STI Classic Funds
STI-AE-0306
05/06
2006 ANNUAL REPORT
BOND AND MONEY MARKET FUNDS
MARCH 31, 2006
STI CLASSIC FUNDS
TABLE OF CONTENTS
STI CLASSIC BOND AND MONEY MARKET FUNDS ANNUAL REPORT March 31, 2006
Letter to Shareholders ................................................... 1
MANAGEMENT DISCUSSION AND ANALYSIS
BOND FUNDS:
Core Bond Fund ........................................................ 3
Florida Tax-Exempt Bond Fund .......................................... 5
Georgia Tax-Exempt Bond Fund .......................................... 7
High Income Fund ...................................................... 9
High Quality Bond Fund ................................................ 11
Intermediate Bond Fund ................................................ 13
Investment Grade Bond Fund ............................................ 15
Investment Grade Tax-Exempt Bond Fund ................................. 17
Limited Duration Fund ................................................. 19
Limited-Term Federal Mortgage Securities Fund ......................... 21
Maryland Municipal Bond Fund .......................................... 23
North Carolina Tax-Exempt Bond Fund ................................... 25
Seix High Yield Fund .................................................. 27
Short-Term Bond Fund .................................................. 29
Short-Term U.S. Treasury Securities Fund .............................. 31
Strategic Income Fund ................................................. 33
Total Return Bond Fund ................................................ 35
U.S. Government Securities Fund ....................................... 37
U.S. Government Securities Ultra-Short Bond Fund ...................... 39
Ultra-Short Bond Fund ................................................. 41
Virginia Intermediate Municipal Bond Fund ............................. 43
Virginia Municipal Bond Fund .......................................... 45
MONEY MARKET FUNDS:
Prime Quality Money Market Fund ....................................... 47
Tax-Exempt Money Market Fund .......................................... 48
U.S. Government Securities Money Market Fund .......................... 49
U.S. Treasury Money Market Fund ....................................... 50
Virginia Tax-Free Money Market Fund ................................... 51
Schedules of Portfolio Investments ....................................... 53
Statements of Assets and Liabilities ..................................... 168
Statements of Operations ................................................. 173
Statements of Changes in Net Assets ...................................... 178
Financial Highlights ..................................................... 206
Notes to Financial Statements ............................................ 219
Report of Independent Registered Public Accounting Firm .................. 240
Trustees and Officers of the STI Classic Funds ........................... 241
Additional Information ................................................... 243
LETTER TO SHAREHOLDERS
March 31, 2006
Dear Valued STI Classic Funds Shareholder,
Another fiscal year has come to a successful close. The environment was
challenging, and the path over the past twelve months was uneven, but both the
economy and financial markets navigated the setbacks and emerged with positive
results. The STI Classic Funds performed very well during these often trying
times, with peer group outperformance by 27 stock and bond funds across a number
of diverse styles and asset classes. This outperformance helped achieve
competitive returns with well-diversified portfolios. We will highlight some key
developments in the economy and financial markets, but would first like to thank
you for your confidence and support in choosing the STI Classic Funds to help
grow your investments. We greatly value the opportunity to serve you and
continue to strive to meet your expectations every day.
The overall economic backdrop for the markets was positive despite natural,
economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew
3.5% for the year ended March 2006, paced by strong double-digit gains in
business capital spending. "Headline" inflation, as measured by the Consumer
Price Index, increased 3.4% during the same period, which was 1% higher than in
the previous fiscal year. Energy prices, as everyone is painfully aware, were
largely responsible for the acceleration. However, if energy and food are taken
out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting
monetary policy, the resulting core inflation rate was just 2.1%.
Unfortunately, the economy did not grow at an "average" pace for the entire
year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both
sociological and economic terms. Though the storms occurred in the third quarter
of 2005, the statistical impact of the devastation was concentrated in the
fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy
infrastructure from the storm helped drive prices sharply higher, draining
discretionary dollars from consumer wallets and business bottom lines. Energy
prices retreated somewhat during the fourth quarter, but then moved higher in
the first quarter. Fed policy was another headwind for the economy. The central
bank raised short-term interest rates fifteen consecutive times since June 2004,
culminating in the 4.75% fed funds rate on March 31, 2006. During most of this
time, the impact of the tightening was limited to short-term rates, but after
the yield curve flattened at the end of 2005 (short and long rate roughly
equal), long-term rates, such as home mortgage rates, also moved higher, making
borrowing more expensive.
The continued growth in the economy, combined with reasonable valuations, helped
equities move broadly higher during the fiscal year. The S&P 500 Index returned
11.72%, including dividends, during the twelve months ended March 31, 2006,
compared with 6.69% in the previous year. Energy stocks, boosted by the increase
in oil prices, out performed other major sectors in the index for the year. In
addition, above average gains were posted in the financial, telecom, and
technology sectors. Consumer stocks underperformed, reflecting the pressure on
consumers as discussed earlier. The mix of sector performance did not overly
benefit either the value or growth style for the year, except in small-caps,
where growth outperformed value by four percentage points. Small-cap and mid-cap
stocks performed very well over the past year, with a 25.85% gain in the Russell
2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International
stocks also performed very well, as evidenced by the 24.41% gain in the MSCI
EAFE Index.
In the fixed-income markets, the yield on the 10-year Treasury note was
relatively "range-bound" for much of the year, but continued pressure from
short-term rate increases and higher energy prices, among other factors pushed
the yield to 4.85% by March. As a result, bond returns, as measured by the
Lehman Brothers Aggregate Bond Index, returned a positive, but below average,
2.26% for the year ended March 31. Higher quality bonds, such as Treasuries,
tended to lag the overall investment-grade index. The standout performer in the
fixed-income market was the High Yield sector, which returned 7.43% during the
year.
The STI Classic Funds performed very well during this period, as 27 funds across
a wide spectrum of investment styles, generated above-average returns. These
included large-cap growth and value, mid-cap, small-cap growth and value,
short- and intermediate-term bonds, high yield, and municipal bonds. Many of
these funds were highlighted for their strong performance in publications such
as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal
Finance. In addition to strong performance, we reduced the internal expense
ratios on many of the funds to expressly benefit you, our valued shareholder.
1
Looking ahead, we expect continued economic growth, though the pace over the
next year will likely be below that of the past year. This may allow the Fed to
keep short-term rates steady for awhile as long as inflation remains contained.
It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With
growth likely to slow, interest rates relatively high as compared to the last
few years, and elevated energy prices still a threat, our strategy is to
emphasize quality company holdings that we believe are best able to weather a
more challenging environment.
We close this letter with a special thanks to you, and also to Douglas Phillips,
CFA, the founding president of Trusco Capital Management, who retired on
December 31, 2005. Under Doug's the most challenging markets, to become one of
the nation's leading grateful to Doug Phillips for his strong sense of
discipline, integrity, and commitment to the highest levels of client service.
He will be missed, but his legacy will endure.
Sincerely,
/s/ David H. Edison
- -------------------------------------
David H. Edison
Chairman and CEO
/s/ Robert J. Rhodes
- -------------------------------------
Robert J. Rhodes, CFA
Executive Vice President
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
2
CORE BOND FUND (formerly Classic Institutional Core Bond Fund)
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Core Bond Fund lagged its
benchmark the Lehman Brothers U.S. Aggregate Bond Index with a total return of
1.68% (I Shares) versus 2.26% for the Index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The economy rebounded from the weak, hurricane impacted, final quarter of 2005.
First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment
and manufacturing sectors are healthy and housing has only slowed slightly. The
Federal Reserve raised the fed funds target rate twice in the quarter to 4.75%.
Interest rates rose approximately 50 basis points (0.50%) in the quarter and
returns of bond indexes were slightly negative, similar to last year's third
quarter.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Because credit spreads are extremely narrow, driven by strong demand and limited
supply, we maintained our defensive strategy in the quarter. Despite this
cautious posture and bias towards Treasuries, we are making active decisions
regarding security selection and sector allocations. We are significantly
underweight the corporate and mortgage sectors and continue to opportunistically
own Treasury Inflation Protected Securities ("TIPS"). We believe that current
valuations are not sustainable and do not justify the greater risk of
overweighting corporates and mortgages. We think the more likely outcome will be
wider yield spreads and better buying opportunities as we move into the latter
stages of the current economic expansion.
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
PORTFOLIO COMPOSITION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
Asset Backed Securities 2.6%
Corporate Bonds 9.2%
U.S. Government Agency Mortgage 27.8%
U.S. Treasury Obligations 51.0%
Repurchase Agreements 7.2%
Collateralized Mortgage Obligations 2.2%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
3
CORE BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Core Bond Fund Lehman Brothers U.S.
(I Shares) Aggregate Bond Index
-------------- --------------------
12/30/1997 10000 10000
10020 10128
10180 10156
10409 10393
10740 10832
12/98 10803 10869
10793 10815
10668 10720
10730 10793
12/99 10746 10779
10900 11017
11077 11209
11424 11547
12/00 11864 12033
12219 12398
12314 12468
12836 13043
12/01 12671 13049
12651 13061
13028 13543
13346 14164
12/02 13631 14387
13843 14587
14242 14952
14231 14930
12/03 14287 14977
14636 15375
14319 15000
14766 15479
12/04 14943 15627
14895 15552
15294 16020
15161 15912
12/05 15261 16007
3/06 15146 15903
This chart assumes an initial hypothetical investment of $10,000 made on
12/30/97. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index a widely-recognized index of U.S. Treasury and agency securities,
corporate bond issues, mortgage-backed securities, asset-backed securities and
corporate mortgage-backed securities. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
------------------------------------
INCEPTION SINCE
CORE BOND FUND DATE+ 1 YEAR 3 YEAR 5 YEAR INCEPTION
- -------------- --------- ------ ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 01/25/02 1.38 2.72 4.23 4.99
WITH SALES CHARGE* -3.44 1.06 3.22 4.37
C SHARES WITHOUT CDSC 10/11/04 0.76 2.63 4.25 5.01
WITH CDSC* -0.21 2.63 4.25 5.01
I SHARES 12/30/97 1.68 3.04 4.50 5.16
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92 5.11 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECTS THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES AND T
SHARES WERE MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED.
+ The quoted returns reflect the performance from December 30, 1997 to
October 11, 2004 of the Seix Core Bond Fund, an open-end investment
company that was the predecessor fund to the Core Bond Fund.
Performance for the I Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix Core Bond Fund's Class I Shares prior to
that date.
Performance for the C Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix Core Bond Fund's Class I Shares prior to
that date. The historical performance has not been adjusted to reflect the
Fund's I share expenses. If it had been, the performance would have been lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004
is that of the Class I Shares and Class P Shares, respectively, of the Seix Core
Bond Fund, the Fund's predecessor. The performance of the predecessor fund's
Class I Shares has not been adjusted to reflect the Fund's A Shares expenses. If
it had been, the Performance would have been lower.
4
FLORIDA TAX-EXEMPT BOND FUND
PORTFOLIO MANAGER
- - Ronald Schwartz, CFA, CFP
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Fund returned 2.90% (I Shares) under
performing the Lehman Brothers 10 Year Municipal Bond Index which returned 3.31%
for the same period. The Fund's under performance during the period was a result
of our distribution on the yield curve. Our lack of representation in the 20
years and longer part of the curve was a detriment to the Fund's overall
performance.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Record municipal issuance dominated most of 2005, however the first quarter of
2006 issuance declined by nearly 30% contributing to the sectors out
performance. The summer of 2005 saw a continuous stream of positive economic
data and the most disruptive hurricane season on record. In August, Hurricane
Katrina devastated New Orleans and the Gulf Coast of Mississippi. September
opened with Hurricane Rita striking east Texas and western Louisiana. The
municipal market struggled to understand the degree to which the economic
disruption would impact all facets of the municipal market from insurers to the
profitability of property and casualty industry to creating additional financing
opportunities. The Fed continued on its path of increasing rates suggesting that
inflation was the motivation for the increases. The Federal Open Market
Committee raised rates 8 times in the year ended March 31, 2006 taking the fed
funds rate from 2.75% to 4.75%. The municipal curve flattened throughout the
year with the front end increasing in yields in response to the Fed tightening
while the long end decreased in yields as it responded to positive economic
conditions.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Credit spreads remained narrow throughout the period as we continued our focus
on high quality securities. We favored a barbell strategy for the majority of
the period however as we prepare for the end of the Fed tightening we are
reducing our barbell in anticipation of a flatter curve. We will be reducing our
exposure to the 10-15 year area of the curve and rolling down to the 5 - 10 year
area, with continued over weighing of the 1 - 5 year area.(1)
PORTFOLIO COMPOSITION (as March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Municipal Bonds 97.3%
Money Markets 2.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
5
FLORIDA TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Florida Tax-Exempt Lehman Brothers 10 Year
Bond Fund (I Shares) Municipal Bond Index
-------------------- -----------------------
3/96 10000 10000
10058 10031
10273 10232
12/96 10546 10523
10446 10521
10780 10867
11076 11205
12/97 11370 11495
11462 11614
11633 11789
12033 12192
12/98 12081 12272
12105 12342
11827 12059
11822 12136
12/99 11801 12119
12119 12401
12296 12599
12551 12911
12/00 13175 13423
13432 13735
13487 13795
13857 14202
12/01 13659 14043
13780 14213
14357 14793
15128 15548
12/02 15103 15471
15262 15662
15628 16153
15585 16133
12/03 15723 16353
15855 16616
15472 16220
15993 16892
12/04 16065 17031
15947 16918
16436 17462
16339 17365
12/05 16459 17498
3/06 16409 17478
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
INCEPTION ----------------------------------
FLORIDA TAX-EXEMPT BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ---------------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/18/94 2.73 2.28 3.88 4.88
WITH SALES CHARGE* -2.11 0.63 2.88 4.37
C SHARES WITHOUT CDSC 06/01/95 1.95 1.67 3.30 4.33
WITH CDSC* 0.96 1.67 3.30 4.33
I SHARES 01/25/94 2.90 2.45 4.09 5.08
LEHMAN BROTHERS 10 YEAR MUNICIPAL
BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
6
GEORGIA TAX-EXEMPT BOND FUND
PORTFOLIO MANAGER
- - Chris Carter, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Georgia Tax-Exempt Bond Fund had a
total return of 3.19% (I Shares) versus a 3.31% return for the Lehman Brothers
10 Year Municipal Bond Index. The Fund maintained an overweight of 0 to 2-year
and 15-year and longer paper. Within the latter maturity range, the period
witnessed exposure to the long bond sector increased. Five and 10-year generic
AAA rated municipal bond yields increased 39 and 15 basis (0.39% and 0.15%)
respectively, over the 12 months, while 30-year yields declined 10 basis points.
The 2-year to 30-year municipal bond yield curve flattened 89 basis points to 94
basis (0.89% to 0.94%) points of slope.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund slightly underperformed its benchmark index for the period; the
underperformance was due primarily to management fees, which are associated with
a mutual fund but not associated with our benchmark index, the Lehman Brothers
10 Year Municipal Bond Index. The index is also not limited to Georgia state
tax-exempt municipals and may invest in sectors of the market that we avoid.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund continues to favor premium bonds (prices greater than par) for their
income benefit and relative price stability. All activity should occur within
an investment grade construct and the average credit quality of Fund holdings
should remain high.(1)
PORTFOLIO COMPOSITION (as March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Money Market Funds 2.5%
Municipal Bonds 97.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
7
GEORGIA TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Georgia Tax-Exempt Lehman Brothers 10 Year
Bond Fund (I Shares) Municipal Bond Index
-------------------- -----------------------
3/96 10000 10000
10018 10031
10188 10232
12/96 10437 10523
10387 10521
10707 10867
11018 11205
12/97 11290 11495
11368 11614
11518 11789
11895 12192
12/98 11943 12272
11951 12342
11676 12059
11689 12136
12/99 11673 12119
11893 12401
12043 12599
12292 12911
12/00 12774 13423
13065 13735
13103 13795
13462 14202
12/01 13325 14043
13399 14213
13928 14793
14539 15548
12/02 14548 15471
14648 15662
14996 16153
14985 16133
12/03 15108 16353
15242 16616
14831 16220
15389 16892
12/04 15537 17031
15477 16918
15923 17462
15864 17365
12/05 15966 17498
3/06 15971 17478
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
GEORGIA TAX-EXEMPT BOND FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ----------------------------- -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/19/94 3.12 2.73 3.92 4.58
WITH SALES CHARGE* -1.78 1.08 2.91 4.08
C SHARES WITHOUT CDSC 06/06/95 2.25 2.11 3.32 4.05
WITH CDSC* 1.25 2.11 3.32 4.05
I SHARES 01/18/94 3.19 2.92 4.10 4.79
LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
8
HIGH INCOME FUND
PORTFOLIO MANAGER(S)
- - George Goudelias
- - Michael McEachern, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the High Income Fund outperformed
its benchmark the Lehman Brothers U.S. Corporate High Yield Bond Index with a
return of 7.53% (I Shares) versus 7.43% for the index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The portfolio's underweighting in Autos hurt relative returns in the first
quarter when GM and Ford bonds recovered from a difficult fourth quarter. The
sector was helped by anticipation of the long awaited announcement of a GM deal
to sell a majority stake in GMAC. (1)
In the first quarter, we reduced exposure to Healthcare. The industry has
enjoyed a favorable regulatory environment for the past three years. It appears
this cycle is turning and margins may be squeezed as a result of harsher
government scrutiny. Positions in the Food and Restaurant sector were sold after
they had reached our price target. We rotated into Technology and Chemicals
where new issues offered value. (1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
We will continue to be underweighted in Autos, since the long term outlook for
the industry--both large manufacturers and their suppliers--is negative. We
believe that rising interest rates will not be as big a factor for the rest of
the year and that fundamentals could remain strong. The key to performance will
be avoiding those issuers whose balance sheets will deteriorate as a result of
stockholder friendly actions. (1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Bank Loans 4.1%
Corporate Bonds 78.7%
Preferred Stock 1.4%
Short-Term Investment 12.3%
Repurchase Agreement 3.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
9
HIGH INCOME FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
High Income Fund Lehman Brothers U.S. Corporate
(I Shares) High Yield Bond Index
---------------- ------------------------------
10/3/2001 10000 10000
12/01 10342 10578
10355 10756
9785 10066
9258 9771
12/02 9998 10429
10576 11223
11499 12357
11792 12700
12/03 12578 13450
12799 13765
12752 13633
13234 14294
12/04 13876 14947
13728 14707
13966 15113
14307 15253
12/05 14460 15356
3/06 14761 15799
This chart assumes an initial hypothetical investment of $10,000 made on
10/3/01. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Corporate High
Yield Bond Index, a widely recognized, market value-weighted index that covers
the universe of fixed rate, non-investment grade debt. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
SINCE
HIGH INCOME FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------- -------------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 10/27/03 7.20 -- -- -- 8.69
WITH SALES CHARGE* 2.09 -- -- -- 6.52
C SHARES WITHOUT CDSC 05/04/94 6.57 10.94 7.47 4.57 4.88
WITH CDSC* 5.62 10.94 7.47 4.57 4.88
I SHARES 10/03/01 7.53 11.75 -- -- 9.06
LEHMAN BROTHERS U.S. CORPORATE
HIGH YIELD BOND INDEX 7.43 12.08 8.13 6.66 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
10
HIGH QUALITY BOND FUND (formerly Classic Institutional High Quality Bond Fund)
PORTFOLIO MANAGER(S)
- - Perry Troisi
- - Adrien Webb, CFA
INVESTMENT CONCERNS
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the Fund's share price will decline.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the High Quality Bond Fund
underperformed its benchmark with a return of 1.52% (I Shares) versus 2.09% for
its benchmark the Lehman Brothers U. S. Intermediate Government/Credit A+ Index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund has maintained its defensive strategy over the past fiscal year, while
credit spreads have been extremely narrow and driven by strong demand and
limited supply. Despite this cautious posture and bias towards Treasuries, we
are making active decisions regarding security selection and sector allocations.
We are significantly underweight the corporate and mortgage sectors and as
always are neutral duration to the index. The resulting performance for the Fund
modestly trailed the index's results.
The economy rebounded from the weak, hurricane impacted, final quarter of 2005.
First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment
and manufacturing sectors are healthy and housing has only slowed slightly. The
Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest
rates rose approximately 50 basis points (0.50%) in the quarter and returns of
bond indexes were slightly negative, similar to last year's third quarter.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Because credit spreads are extremely narrow, driven by strong demand and limited
supply, we maintained our defensive strategy in the quarter. Despite this
cautious posture and bias towards Treasuries, we are making active decisions
regarding security selection and sector allocations. We are significantly
underweight in the corporate and mortgage sectors and continue to
opportunistically own Treasury Inflation Protected Securities. We believe that
current valuations are not sustainable and do not justify the greater risk of
overweighting corporates and mortgages. We think the outcome will more likely be
wider yield spreads and better buying opportunities as we move into the latter
stages of the current economic expansion.(2)
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
PORTFOLIO COMPOSITION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
Asset Backed Securities 3.1%
Corporate Bonds 14.5%
U.S. Government Agency Mortgages 8.2%
U.S. Treasury Obligations 73.8%
Money Market Funds 0.4%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
11
HIGH QUALITY BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Lehman Brothers U.S.
High Quality Bond Intermediate Government/
Fund (I Shares) Credit A+ Index
----------------- ------------------------
10/29/2003 10000 10000
12/03 10073 10085
10247 10324
9993 10070
10236 10322
12/04 10282 10356
10193 10278
10412 10530
10354 10474
12/05 10402 10532
3/06 10347 10494
This chart assumes an initial hypothetical investment of $10,000 made on
10/29/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Intermediate
Government/Credit A+ Index which consists of is composed of all bonds that are
investment grade, rated Baa or higher by Moody's or BBB or higher by Standard &
Poor's if unrated by Moody's. Issues must have at least one year to maturity.
Total return comprises price appreciation/depreciation and income as a
percentage of the original investment.
The index is unmanaged and does not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
-------------------------
HIGH QUALITY BOND FUND INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------- -------------- ------ ---------------
I SHARES 10/29/03 1.52 1.42
LEHMAN BROTHERS U.S. INTERMEDIATE
GOVERNMENT/CREDIT A+ INDEX 2.09 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S THAN THE ORIGINAL COST. FOR
PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT
WWW.STICLASSICFUNDS. COM.
Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares
were merged into I Shares and T Shares were no longer offered.
12
INTERMEDIATE BOND FUND (formerly Classic Institutional Intermediate Bond Fund)
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Intermediate Bond Fund lagged
its benchmark the Lehman Brothers Intermediate Government/Credit Bond Index with
a return of 1.76% (I Shares) versus 2.08% for the index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund has maintained its defensive strategy over the past fiscal year, while
credit spreads have been extremely narrow and driven by strong demand and
limited supply. Despite this cautious posture and bias towards Treasuries, we
are making active decisions regarding security selection and sector allocations.
We are significantly underweight the corporate sector and as always are neutral
duration to the index. The resulting performance for the Fund modestly trailed
the index's results.
The economy rebounded from the weak, hurricane impacted, final quarter of 2005.
First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment
and manufacturing sectors are healthy and housing has only slowed slightly. The
Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest
rates rose approximately 50 basis points (0.50%) in the quarter and returns of
bond indexes were slightly negative, similar to last year's third quarter.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Because credit spreads are extremely narrow, driven by strong demand and limited
supply, we maintained our defensive strategy in the quarter. Despite this
cautious posture and bias towards Treasuries, we are making active decisions
regarding security selection and sector allocations. We are significantly
underweight in the corporate and mortgage sectors and continue to
opportunistically own Treasury Inflation Protected Securities. We believe that
current valuations are not sustainable and do not justify the greater risk of
overweighting corporates and mortgages. We think the outcome will more likely be
wider yield spreads and better buying opportunities as we move into the latter
stages of the current economic expansion.(2)
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
PORTFOLIO COMPOSITION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
Collateralized Mortgage Obligations 3.0%
Corporate Bonds 16.8%
U.S. Treasury Obligations 76.7%
Repurchase Agreements 2.5%
Asset Backed Securities 1.0%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
13
INTERMEDIATE BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Intermediate Bond Fund Lehman Brothers Intermediate
(I Shares) Government/Credit Index
---------------------- ----------------------------
6/30/1999 10000 10000
10094 10092
12/99 10123 10098
10322 10249
10456 10423
10774 10723
12/00 11154 11119
11508 11496
11573 11573
12073 12106
12/01 11936 12116
11892 12089
12230 12519
12592 13086
12/02 12792 13307
12939 13508
13265 13875
13293 13873
12/03 13308 13881
13635 14225
13318 13866
13693 14241
12/04 13799 14303
13686 14179
13997 14531
13908 14455
12/05 13989 14529
3/06 13926 14473
This chart assumes an initial hypothetical investment of $10,000 made on
6/30/99. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers Intermediate
Government/Credit Bond Index which is a widely-recognized, market-value weighted
(higher market value bonds have more influence than lower market value bonds)
index of U.S. Treasury and agency securities, corporate bond issues and
mortgage-backed securities having maturities of 10 years or less. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF
3/31/06 (%)
------------------------------------
INCEPTION SINCE
INTERMEDIATE BOND FUND DATE+ 1 YEAR 3 YEAR 5 YEAR INCEPTION
- ---------------------- --------- ------ ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 10/11/04 1.39 2.29 3.88 4.94
WITH SALES CHARGE* -3.40 0.65 2.88 4.18
C SHARES WITHOUT CDSC 10/11/04 0.74 2.01 3.71 4.81
WITH CDSC* -0.24 2.01 3.71 4.81
I SHARES 6/30/99 1.76 2.48 4.00 5.03
LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT INDEX 2.08 2.33 4.71 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES, T SHARES
MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED.
+ The quoted returns reflect the performance from June 30, 1999 to October
11, 2004 of the Seix Intermediate Bond Fund, an open-end investment company
that was the predecessor fund to the Intermediate Bond Fund.
Performance for the I Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix Intermediate Bond Fund's Class I Shares
prior to that date.
Performance for the C Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix Intermediate Bond Fund's Class I Shares
prior to that date. The historical performance has not been adjusted to reflect
the Fund's C Share expenses. If it had been, the performance would have been
lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004
is that of the Class I Shares and Class P Shares, respectively, of the Seix
Intermediate Bond Fund, the Fund's predecessor. The performance of the
predecessor fund's Class I Shares has not been adjusted to reflect the Fund's A
Share expenses. If it had been, the performance would have been lower.
14
INVESTMENT GRADE BOND FUND
PORTFOLIO MANAGER(S)
- - Perry Troisi
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Investment Grade Bond Fund
outperformed its benchmark's Lehman Brothers Intermediate U.S. Government/Credit
Bond Index and the Lehman Brothers U.S. Aggregate Bond Index with a total return
of 2.94% (I Shares) versus 2.02% and 2.26%, respectively.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The economy rebounded from the weak, hurricane impacted, final quarter of 2005.
First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment
and manufacturing sectors are healthy and housing has only slowed slightly. The
Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest
rates rose approximately 50 basis points (0.50%) in the quarter and returns of
bond indexes were slightly negative, similar to last year's third quarter.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Because credit spreads are extremely narrow, driven by strong demand and limited
supply, we maintained our defensive strategy in the quarter. Despite this
cautious posture and bias towards Treasuries, we are making active decisions
regarding security selection and sector allocations. We are significantly
underweight in the corporate and mortgage sectors and continue to
opportunistically own Treasury Inflation Protected Securities. We believe that
current valuations are not sustainable and do not justify the greater risk of
overweighting corporates and mortgages. We think the outcome will more likely be
wider yield spreads and better buying opportunities as we move into the latter
stages of the current economic expansion.(2)
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
PORTFOLIO COMPOSITION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
Collateralized Mortgage Obligations 2.1%
Corporate Bonds 12.3%
U.S. Government Agencies 3.5%
U.S. Government Agency Mortgages 0.1%
U.S. Treasury Obligations 48.3%
Short-Term Investment 32.1%
Repurchase Agreements 0.9%
Asset Backed Securities 0.7%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
15
INVESTMENT GRADE BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Investment Lehman Brothers Lehman Brothers
Grade Bond U.S. Government/Credit U.S. Aggregate
Fund (I Shares) Bond Index Bond Index
--------------- ---------------------- ---------------
3/96 10000 10000 10000
10026 10047 10057
10188 10224 10243
12/96 10450 10537 10550
10373 10446 10491
10739 10826 10876
11088 11205 11238
12/97 11399 11565 11569
11600 11740 11749
11890 12047 12023
12532 12644 12531
12/98 12446 12661 12574
12373 12509 12511
12219 12372 12401
12313 12439 12486
12/99 12255 12389 12470
12522 12722 12745
12311 12906 12967
12630 13277 13358
12/00 13061 13857 13920
13711 14300 14343
13761 14343 14423
14367 15026 15089
12/01 14244 15035 15096
14093 14964 15110
14304 15526 15668
15029 16411 16386
12/02 15301 16694 16644
15550 16969 16875
15983 17567 17297
15903 17478 17272
12/03 15867 17474 17327
16344 18012 17787
15777 17441 17353
16317 18061 17907
12/04 16516 18206 18078
16438 18084 17992
16927 18707 18533
16753 18527 18408
12/05 16873 18638 18517
3/06 16921 18449 18398
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Government/Credit
Bond Index a widely recognized composite index made up of the Lehman Brothers
U.S. Government Index and the Lehman Brothers U.S. Credit Index which include
U.S. Government, Treasury and agency securities, as well as high grade corporate
bonds. The Fund's Aggregate Bond Index a widely recognized index of U.S.
Treasury and agency securities, corporate bond issues, mortgage-backed
securities, asset-backed securities and corporate mortgage-backed securities.
The indices are unmanaged and do not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
INCEPTION ----------------------------------
INVESTMENT GRADE BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- -------------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 06/11/92 2.69 2.46 3.92 4.99
WITH SALES CHARGE* -2.16 0.81 2.91 4.48
C SHARES WITHOUT CDSC 06/07/95 1.94 1.87 3.35 4.46
WITH CDSC* 0.95 1.87 3.35 4.46
I SHARES 07/16/92 2.94 2.86 4.30 5.40
LEHMAN BROTHERS U.S. GOVERNMENT/
CREDIT BOND INDEX 2.02 2.83 5.23 6.32
LEHMAN BROTHERS U. S. AGGREGATE
BOND INDEX 2.26 2.92 5.11 6.29
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
16
INVESTMENT GRADE TAX-EXEMPT BOND FUND
PORTFOLIO MANAGER
- - Ronald Schwartz, CFA, CFP
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund's income may be subject to certain state and local taxes and, minimum
tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the Investment Grade Tax-Exempt Bond
Fund returned 2.92% (I Shares) outperforming the Lehman Brothers 5 Year
Municipal Bond Index which returned 2.14% for the same period. The Fund's
performance during the period was a result of trading opportunities realized
during the period as well as our placement on the yield curve.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Record municipal issuance dominated most of 2005, however the first quarter of
2006 issuance declined by nearly 30% contributing to the sectors out
performance. The summer of 2005 saw a continuous stream of positive economic
data and the most disruptive hurricane season on record. In August, Hurricane
Katrina devastated New Orleans and the Gulf Coast of Mississippi. September
opened with Hurricane Rita striking east Texas and western Louisiana. The
municipal market struggled to understand the degree to which the economic
disruption would impact all facets of the municipal market from insurers to the
profitability of property and casualty industry to creating additional financing
opportunities. The Fed continued on is path of increasing rates suggesting that
inflation was the motivation for the increases. The Federal Open Market
Committee raised rates 8 times in the year ended March 31, 2006 taking the fed
funds rate from 2.75% to 4.75%. The municipal curve flattened throughout the
year with the front end increasing in yields in response to the Fed tightening
while the long end decreased in yields as it responded to positive economic
conditions.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Credit spreads remained narrow throughout the period as we continued our focus
on high quality securities. We favored a barbell strategy for the majority of
the period however as we prepare for the end of the Fed tightening we are
reducing our barbell in anticipation of a flatter curve. We will be reducing our
exposure to the 10-15 year area of the curve and rolling down to the 5 -10 year
area, with continued over weighing of the 1-5 year area.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Municipal Bonds 94.0%
Money Market Funds 6.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
17
INVESTMENT GRADE TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Investment Grade Lehman Brothers
Tax-Exempt Bond 5 Year Municipal
Fund (I Shares) Bond Index
---------------- ----------------
3/96 10000 10000
10066 10053
10276 10219
12/96 10526 10422
10514 10419
10820 10674
11072 10902
12/97 11346 11086
11471 11215
11653 11340
12055 11638
12/98 12147 11734
12215 11856
12031 11709
12059 11819
12/99 12116 11820
12414 11961
12604 12150
12852 12389
12/00 13433 12732
13751 13093
13798 13222
14147 13585
12/01 14174 13522
14341 13600
14803 14161
15512 14652
12/02 15644 14776
15808 14941
16174 15212
16189 15366
12/03 16334 15386
16528 15583
16252 15248
16767 15680
12/04 16904 15805
16784 15623
17227 15922
17155 15907
12/05 17280 15955
3/06 17274 15958
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond
Index a widely recognized index of intermediate investment grade tax-exempt
bonds. The index includes general obligation bonds, revenue bonds, insured bonds
and prefunded bonds with maturities between 4 and 6 years. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/06 (%)
INVESTMENT GRADE INCEPTION ----------------------------------
TAX-EXEMPT BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- -------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 06/09/92 2.57 2.59 4.25 5.18
WITH SALES CHARGE* -2.29 0.93 3.25 4.67
C SHARES WITHOUT CDSC 06/01/95 1.92 2.02 3.72 4.66
WITH CDSC* 0.93 2.02 3.72 4.66
I SHARES 10/21/93 2.92 3.00 4.67 5.62
LEHMAN BROTHERS 5 YEAR
MUNICIPAL BOND INDEX 2.14 2.22 4.04 4.78
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
18
LIMITED DURATION FUND (formerly Classic Institutional Limited Duration Fund)
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Limited Duration Fund
outperformed its benchmark the Merrill Lynch 3 Month U.S. Treasury Bill Index
with a return of 3.73% (I Shares) versus 3.53% for the Index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund generated the majority of its return through the collection of
interest. By utilizing asset-backed securities with attractive spreads over
money market instruments, Agencies and Treasuries, the Fund produced a steady
source of income with price preservation as a secondary goal.(1)
The Fund supplemented its use of short duration Treasuries with Federal agency
notes. The balance of the portfolio resides in floating rate securities that
maintain a high level of income with little price fluctuation.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Since the early part of last year, we have focused on reducing risk at a time
when market volatility remains close to all time lows. This absence of
volatility breeds an environment which fosters more complacent risk
taking--something we are not willing to accept. A greater degree of instability
could arise and provide the opportunity to boost returns. We feel strongly that
our strategies should continue to pay off if this disregard for risk comes to an
end. An overaggressive inflation fighting Fed would provide additional
opportunities. Our general view is that spread markets must get cheaper. This
would certainly provide the impetus for value to surface. Until then, we will
monitor risk and reward closely.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Asset Backed Securities 24.8%
U.S. Government Agencies 8.6%
U.S. Treasury Obligations 63.2%
Repurchase Agreements 3.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
19
LIMITED DURATION FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Limited Duration Fund Merrill Lynch 3 Month U.S.
(I Shares) Treasury Bill Index
--------------------- --------------------------
10/25/2002 10000 10000
12/02 10014 10028
10031 10058
10068 10092
10093 10117
12/03 10111 10143
10140 10167
10155 10191
10188 10229
12/04 10232 10278
10287 10337
10360 10410
10458 10496
12/05 10559 10593
3/06 10671 10701
This chart assumes an initial hypothetical investment of $10,000 made on
10/25/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch 3 Month U.S. Treasury
Bill Index which is a widely-recognized index that tracks the performance of 3
Month U.S. Treasury Bills. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
---------------------------
INCEPTION SINCE
LIMITED DURATION FUND DATE 1 YEAR 3 YEAR INCEPTION
- --------------------- --------- ------ ------ ---------
I SHARES 10/25/02 3.73 2.08 1.91
MERRILL LYNCH 3 MONTH U.S. TREASURY BILL INDEX 3.53 2.09 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM.
+ The quoted returns reflect the performance from October 25, 2002 to October
11, 2004 of the Seix Limited Duration Fund, an open-end investment company
that was the predecessor fund to the Limited Duration Fund.
Effective August 1, 2005, Institutional Shares were renamed I Shares, L Shares
and T Shares were merged into I Shares and L Shares and T Shares were no longer
offered.
20
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Limited-Term Federal Mortgage
Securities Fund lagged its benchmark's the merrill Lynch 1-5 Year AAA U.S.
Treasury/Agencies Index and the Merrill Lynch 1-5 Year U.S. Treasuries Index
with a return of 2.04% (I Shares) versus 2.22% and 2.08% for the indexes,
respectively.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Higher interest rates were a benefit to performance as prepayments slow and
mortgages gain favor. Since the index has only government bond exposure, the
rise in yields did not have as great an effect on the Fund as compared to the
benchmark. The added value of ARMs and the stability of recently dated current
coupon mortgages generated a positive contribution.(1)
We are making active decisions regarding sector allocations versus the short
duration benchmark. We hold no Treasuries, are significantly underweight the
Agency sector, and have been predominantly using mortgages to generate a
significant income advantage. We have added to our position in Adjustable Rate
Mortgagees ("ARMs") with incoming cash flows and the use of monthly paydowns.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Since the early part of last year, we have focused on reducing risk at a time
when market volatility remains close to all time lows. This absence of
volatility breeds an environment which fosters more complacent risk
taking--something we are not willing to accept without proportional returns. A
greater degree of instability could arise and provide the opportunity to boost
relative returns. We feel strongly that our strategies should continue to pay
off if this disregard for risk comes to an end. Another inversion between two
and ten year Treasuries can cause mortgages to cheapen. An overaggressive
inflation fighting Fed would provide additional opportunities. Our general view
is that spread markets must get cheaper. This would certainly provide the
impetus for value to surface. Until then, we will monitor risk and reward
closely.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
U.S. Government Agencies 7.7%
U.S. Government Agency Mortgages 81.8%
Short-Term Investment 7.0%
Repurchase Agreements 3.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
21
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Limited-Term Federal Merrill Lynch Merrill Lynch
Mortgage Securities 1-5 Year U.S. 1-5 Year AAA U.S.
Fund (I Shares) Treasuries Index Treasuries/Agencies Index
-------------------- ---------------- -------------------------
3/96 10000 10000 10000
10056 10080 10081
10224 10249 10250
12/96 10421 10461 10462
10455 10498 10501
10704 10755 10759
10926 10996 10998
12/97 11124 11205 11206
11276 11375 11376
11439 11561 11563
11846 12016 12005
12/98 11892 12073 12065
11965 12102 12101
11929 12134 12134
12033 12281 12275
12/99 12041 12319 12319
12163 12487 12476
12355 12710 12700
12681 13003 13005
12/00 13076 13412 13428
13345 13800 13819
13441 13913 13944
14027 14486 14520
12/01 14044 14534 14574
14133 14512 14567
14512 14949 15016
14927 15493 15524
12/02 15097 15620 15673
15240 15727 15789
15413 15901 15967
15269 15943 16004
12/03 15311 15941 16009
15571 16184 16250
15307 15914 15982
15592 16153 16230
12/04 15672 16150 16242
15626 16054 16150
15840 16308 16410
15843 16272 16377
12/05 15915 16374 16477
3/06 15944 16389 16509
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch 1-5 Year AAA U.S.
Treasuries/Agencies Index and the Merrill Lynch 1-5 Year U.S. Treasuries Index.
The Merrill Lynch 1-5 Year AAA U.S. Treasuries/Agencies Index tracks the
performance of U.S. government and agency bonds that have a minimum issue size
of $150 million. The Merrill Lynch 1-5 Year U.S. Treasuries Index is a widely
recognized, capitalization weighted index of U.S. Treasury securities with
maturities of one year or greater and no more than 5 years. The indices are
unmanaged and do not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------------
LIMITED-TERM FEDERAL MORTGAGE INCEPTION
SECURITIES FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ----------------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 07/18/94 1.93 1.28 3.38 4.51
WITH SALES CHARGE* -0.64 0.43 2.85 4.25
C SHARES WITHOUT CDSC 06/07/95 1.14 0.80 2.97 4.13
WITH CDSC* 0.16 0.80 2.97 4.13
I SHARES 06/06/94 2.04 1.52 3.63 4.78
MERRILL LYNCH 1-5 YEAR AAA U.S.
TREASURY/AGENCIES INDEX 2.22 1.50 3.62 5.14
MERRILL LYNCH 1-5 YEAR U. S.
TREASURIES INDEX 2.08 1.38 3.50 5.06
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
22
MARYLAND MUNICIPAL BOND FUND
PORTFOLIO MANAGER
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Maryland Municipal Bond Fund
outperformed, to a minor degree, the Lehman Brothers 10 Year Municipal Bond
Index, returning 3.34% ( I Shares) compared to 3.31% for the index.
The Fund's duration and maturity exposure continued a more defensive posture
over the past year. The longest bonds and the weaker credits out performed but
for most of the year we held less than a market weighting in both categories.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The flattening yield curve that came with rising rates hurt the valuation of
bonds due within 10 years the most, while long bonds produced the greatest
returns due to the world wide demand for higher yields regardless of maturity or
credit. In our opinion, market yields did not provide appropriate spreads for
either risk and the more conservative approach generated an average, or lower,
total return. (1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund's position for 2006-2007 will maintain shorter duration and maturity
characteristics as we expect additional increases in rates. We will reduce the
Fund's exposure to bonds due past 20 years and make tactical trades in the
intermediate range to prepare for the eventual return of the yield curve to a
more normal steeper slope.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Municipal Bonds 96.1%
Money Market Funds 3.9%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
23
MARYLAND MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Maryland Municipal Bond Lehman Brothers 10 Year
Fund (I Shares) Municipal Bond Index
----------------------- -----------------------
3/96 10000 10000
9933 10031
10104 10232
12/96 10330 10523
10258 10521
10626 10867
10953 11205
12/97 11238 11495
11342 11614
11481 11789
11842 12192
12/98 11897 12272
11944 12342
11827 12059
11647 12136
12/99 11501 12119
11853 12401
11991 12599
12300 12911
12/00 12802 13423
13070 13735
13149 13795
13497 14202
12/01 13383 14043
13450 14213
13973 14793
14565 15548
12/02 14575 15471
14715 15662
15075 16153
15077 16133
12/03 15189 16353
15390 16616
15069 16220
15543 16892
12/04 15695 17031
15608 16918
16011 17462
15987 17365
12/05 16107 17498
3/06 16129 17478
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
SINCE
MARYLAND MUNICIPAL BOND FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------------------- --------------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 04/13/2005 2.88 2.95 4.20 4.85 4.47
WITH SALES CHARGE* -1.99 1.30 3.19 4.34 3.97
C SHARES WITHOUT CDSC 04/25/96 2.30 2.11 3.31 -- 4.09
WITH CDSC* 1.32 2.11 3.31 -- 4.09
I SHARES 03/01/96 3.34 3.10 4.30 4.90 4.52
LEHMAN BROTHERS 10 YEAR
MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The A Shares were offered beginning on 4/14/05. The A Shares performance
between 3/1/96 to 4/14/05 is that of the Class I Shares (formerly T Shares)
of the Fund, and has not been adjusted to reflect A Share expenses. If it
had been performance would have been lower.
24
NORTH CAROLINA TAX-EXEMPT BOND FUND
PORTFOLIO MANAGER
- - Chris Carter, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 months ended March 31, 2006, the North Carolina Tax-Exempt Bond Fund
had a total return of 3.51% (I Shares) versus a return of 3.31% for the Lehman
Brothers 10 Year Municipal Bond Index. The Fund's "barbell" yield curve strategy
contributed largely to its outperformance. As envisioned in last year's Annual
Report, the past 12 months was spent reducing the Fund's percentage of assets
invested in bonds with final maturities from 8 to 16 years and increasing
exposure to 15-year and longer paper. This objective was achieved, and the
performance benefit realized, with the Fund eventually achieving an overweight
of 0 to 2-year and 15-year and longer paper. 5 and 10-year generic AAA rated
municipal bond yields increased 39 and 15 basis (0.39% and 0.15%) respectively,
over the 12 months, while 30-year yields declined 10 basis points (0.10%). The
2-year to 30-year municipal bond yield curve flattened 89 basis points to 94
basis points (0.89% to 0.94%) of slope.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The primary factor behind the Fund's outperformance was its high relative
allocation to callable bonds with 5% or greater coupons and final maturities
exceeding 15 years.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund continues to favor premium bonds (prices greater than par) for their
income benefit and relative price stability. All activity will occur within an
investment grade construct and the average credit quality of Fund holdings
should remain high.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Money Market Funds 3.8%
Municipal Bonds 96.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
25
NORTH CAROLINA TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
North Carolina Tax-Exempt Bond Fund (I Shares) Lehman Brothers 10 Year Municipal Bond Index
---------------------------------------------- --------------------------------------------
1/8/2004 10000 10000
10133 10161
9872 9919
10282 10330
12/04 10349 10415
10239 10346
10565 10678
10520 10619
12/05 10586 10700
3/06 10598 10688
This chart assumes an initial hypothetical investment of $10,000 made on 1/8/04.
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
NORTH CAROLINA SINCE
TAX-EXEMPT BOND FUND INCEPTION DATE+ 1 YEAR INCEPTION
- -------------------- --------------- ------ ---------
A SHARES WITHOUT SALES CHARGE 01/08/04 3.85 2.81
WITH SALES CHARGE* 1.06 0.58
C SHARES WITHOUT CDSC 01/08/04 3.23 2.53
WITH CDSC* 2.23 2.53
I SHARES 01/08/04 3.51 2.64
LEHMAN BROTHERS 10 YEAR
MUNICIPAL BOND INDEX 3.31 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
+ The Fund began operations on March 21, 2005. Performance from January 8,
2004 to March 21, 2005 is that of the CCMI Tax-Exempt North Carolina Bond
Fund, the Fund's predecessor.
26
SEIX HIGH YIELD FUND (formerly Seix Institutional High Yield Fund)
PORTFOLIO MANAGER(S)
- - George Goudelias
- - Michael McEachern, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bond
Funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Seix High Yield Fund lagged
its benchmark, the Merrill Lynch High Yield Master Index. The Fund produced a
return of 5.37% (I Shares) versus 7.30% for the index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Funds underperformance was due to its higher quality profile versus its
benchmark. During the past year, very strong returns from the lowest quality
bonds boosted the Merrill Lynch High Yield Master Index return. The Fund does
not hold securities with a rating lower than B.(1)
The January effect was in full force during the first quarter when the riskiest
assets in all sectors were the best performers. In equities, Small Cap Indexes
soared and the Russell 2000(R) Index(2) was up 14.0% compared to 4.3% for the
Dow Jones Industrial Average(2) and the S&P 500 Index(2). In bonds, the CCC
return was 4.6% versus 0.8% for BB's ex Autos. Investment Grade benchmark
returns were all negative.
The portfolio's higher quality positioning hurt relative returns in the first
quarter when lower quality outperformed and GM and Ford bonds recovered from a
difficult fourth quarter. The Auto sector was helped by anticipation of the long
awaited announcement of a GM deal to sell a majority stake in GMAC. Also,
relatively stable demand for High Yield combined with a surprising decrease in
net supply to push already narrow yield spreads tighter. Supply has fallen for a
number of positive fundamental reasons - calls, tenders, maturities and
upgrades. In addition, with the maturation of the Bank Loan market, issuers have
shunned borrowing through High Yield bonds and taken advantage of the
opportunity to diversify funding using the floating rate feature of Loans.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
In order to protect the portfolio's downside from a retreat in credit spreads,
we continue to avoid the volatile Auto sector and remain overweighted in Energy,
Media and Utilities. Our rigorous research process paid off again this quarter
when the auto supplier Dana defaulted. We recognized early on the difficult
industry fundamentals facing Dana and had avoided the credit for over two years.
Our bottom up strategy continues to identify the weakest credits and those with
the best potential for upgrade.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Corporate Bonds 82.7%
U.S. Treasury Obligations 3.0%
Short-Term Investments 8.2%
Repurchase Agreements 1.8%
Bank Loans 4.2%
Money Market Funds 0.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
27
SEIX HIGH YIELD FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Seix High Yield Merrill Lynch High
Fund (I Shares) Yield Master Index
--------------- ------------------
12/29/2000 10000 10000
12/00 10000 10596
10578 10621
10699 10487
10708 10063
12/01 11129 10620
11301 10828
11332 10163
11405 9843
12/02 11834 10499
12334 11223
12987 12309
13105 12620
12/03 13676 13357
13968 13656
13745 13536
14409 14163
12/04 14817 14795
14571 14583
14963 14976
15061 15111
12/05 15206 15214
3/06 15353 15648
This chart assumes an initial hypothetical investment of $10,000 made on
12/29/00. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch High Yield Master Index
which is a widely-recognized index of U.S. high yield corporate bond issues
having maturities of at least one year. The index does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/06 (%)
------------------------------------
INCEPTION SINCE
SEIX HIGH YIELD FUND DATE 1 YEAR 3 YEAR 5 YEAR INCEPTION
- -------------------- --------- ------ ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 12/21/01 5.22 7.34 7.73 8.27
WITH SALES CHARGE* 0.26 5.62 6.68 7.27
C SHARES WITHOUT CDSC 10/11/04 4.45 7.11 7.70 8.24
WITH CDSC* 3.47 7.11 7.70 8.24
I SHARES 12/29/00 5.37 7.57 7.97 8.51
MERRILL LYNCH HIGH YIELD MASTER INDEX 7.31 11.72 8.06 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES, T SHARES
MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED.
+ The quoted returns reflect the performance from December 29, 2000 to
October 11, 2004 of the Seix High Yield Fund, an open-end investment
company that was the predecessor fund to the High Yield Fund.
Performance for the I Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix High Yield prior to that date.
Performance for the C Shares, which commenced operations on October 11, 2004, is
the historical performance of the Seix High Yield Fund's Class I Shares prior to
that date. The historical performance has not been adjusted to reflect the
Fund's C Share expenses. If it had been, the performance would have been lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 29, 2000 to December 21, 2001 and December 21, 2001 to October 11, 2004
is that of the Class I Shares and Class P Shares, respectively, of the Seix Core
Bond Fund, the Fund's predecessor. The performance of the predecessor fund's
Class I Shares has not been adjusted to reflect the Fund's A Share expenses. If
it had been, the performance would have been lower.
(2) Russell 2000 Index Measures the performance of the 2,000 smallest companies
in the Russell 3000 Index, which represents approximately 8% of the total
market capitalization of the Russell 3000 Index. The companies which
comprise this index have high price-to-book ratios and higher forecasted
growth values. Dow Jones Industrial Average is a price-weighted average
based on the price-only performance of 30 blue chip stocks (The average is
computed by adding the prices of the 30 stocks and dividing by a
denominator, which has been adjusted over the years for stocks splits,
stock dividends and substitutions of stocks).
28
SHORT-TERM BOND FUND
PORTFOLIO MANAGER(S)
- - Robert W. Corner
- - H. Rick Nelson
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Short-Term Bond Fund
outperformed its benchmark index by 68 basis points (0.68%) with a 3.24% (I
Shares) total return versus 2.56% for the Citigroup 1-3 Year Government/Credit
Index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Funds performance was in line with the stated benchmark index until February
2006 when the Fund received a settlement for the WorldCom bonds that defaulted
in 2002.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund is underweight Treasury and Agency securities, has a neutral weighting
in corporates and an overweight in structured product. We plan to increase our
government weighting if spreads and volatility stays low or goes lower.
Conversely we would add corporate bonds if spreads widen. The Fund is currently
neutral duration but if economic direction becomes clearer the Fund would shift
average life to take advantage of future rates.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Asset Backed Securities 5.3%
Collateralized Mortgage Obligations 6.9%
Commercial Papers 1.3%
Corporate Bonds 22.6%
U.S. Government Agencies 16.2%
U.S. Government Agency Mortgages 11.3%
U.S. Treasury Obligations 13.0%
Short-Term Investments 21.9%
Money Market Funds 1.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
29
SHORT-TERM BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Short-Term Bond Citigroup 1-3 Year
Fund (I Shares) Government/Credit Index
--------------- -----------------------
3/96 10000 10000
10065 10105
10220 10275
12/96 10416 10470
10439 10543
10679 10774
10916 10988
12/97 11122 11168
11271 11335
11456 11511
11816 11850
12/98 11884 11947
11899 12037
11860 12107
11956 12256
12/99 11993 12339
12147 12495
12333 12706
12643 13003
12/00 12909 13345
13327 13745
13466 13930
13986 14415
12/01 13882 14527
13818 14533
13832 14883
14021 15250
12/02 14241 15437
14392 15577
14531 15766
14581 15841
12/03 14601 15882
14733 16070
14579 15891
14725 16074
12/04 14744 16089
14720 16048
14873 16248
14887 16273
12/05 14990 16382
3/06 15197 16459
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 1-3 Year Government/Credit
Index a widely recognized index of U.S. Treasury securities, government agency
obligations, and corporate debt securities rated at least investment grade
(BBB). The securities in the index have maturities of one year or greater and
less than three years. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/06 (%)
INCEPTION ----------------------------------
SHORT-TERM BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- -------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 03/22/93 3.01 1.58 2.44 4.07
WITH SALES CHARGE* 0.44 0.71 1.92 3.80
C SHARES WITHOUT CDSC 06/20/95 2.34 1.15 2.03 3.69
WITH CDSC* 1.34 1.15 2.03 3.69
I SHARES WITHOUT LOAD 03/15/93 3.24 1.83 2.66 4.27
CITIGROUP 1-3 YEAR GOVERNMENT/
CREDIT INDEX 2.56 1.85 3.67 5.10
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
30
SHORT-TERM U.S. TREASURY SECURITIES FUND
PORTFOLIO MANAGER(S)
- - H. Rick Nelson
- - Chad Stephens
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Short-Term U.S. Treasury
Securities Fund returned 1.70% (I Shares) versus 2.30% and 3.54% for its
benchmarks the Citigroup 1-3 Year Treasury Index and the Citigroup 6 Month
Treasury Bill Index, respectively.
The most prominent factor influencing underperformed over the past year was that
of a flattening yield curve due to Federal Reserve (the "Fed") tightening.
Short-term yields rose more than long-term yields as the Fed tightened monetary
policy by 25 basis points (0.25%) at each of their eight meetings. The federal
funds rate ended the year at 4.75%, up from 2.75% at the beginning of the year
while the two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82%
from 3.78%. In contrast, the 10-year U.S. Treasury note rose only 37 basis
points (0.37%) to end the year at 4.85%, up from 4.48%.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund slightly underperformed its benchmark index for the period; the
underperformance was due primarily to management fees, which are associated with
a mutual fund but not associated with the Citigroup 1-3 Year Treasury Index. The
difference in performance versus our shorter duration index the Citigroup 6
Month Treasury Bill Index is not only fees but also was due to the Fund having a
longer duration in a rising rate environment.
The Fund maintained a conservative duration of about 1.6 years during the
beginning of the year and slowly added to duration as rates rose. Duration at
the end of the year had been pushed out to 1.75 years. The Fund would probably
have performed even better relative to its peer group if we had maintained a
shorter duration. However, not extending duration to the Fund's maximum
permitted duration of 2.0 years kept returns very competitive.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund will continue to be managed in line with the 1-3 Treasury index.
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Money Market Funds 1.0%
U.S. Treasury Obligations 99.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
31
SHORT-TERM U.S. TREASURY SECURITIES FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Short-Term
U.S. Treasury
Securities Fund Citigroup 1-3 Year Citigroup 6 Month
(I Shares) Treasury Index Treasury Bill Index
--------------- ------------------ -------------------
3/96 10000 10000 10000
10091 10104 10129
10242 10272 10263
12/96 10407 10465 10401
10458 10535 10536
10674 10764 10676
10861 10975 10820
12/97 11017 11160 10965
11168 11321 11109
11321 11495 11255
11613 11849 11403
12/98 11705 11938 11544
11763 12011 11675
11811 12079 11807
11944 12233 11948
12/99 12022 12302 12098
12156 12455 12261
12322 12669 12440
12544 12936 12633
12/00 12821 13286 12832
13128 13655 13019
13250 13813 13177
13600 14282 13306
12/01 13660 14390 13408
13648 14385 13480
13919 14733 13544
14173 15088 13607
12/02 14290 15221 13664
14362 15308 13710
14433 15417 13751
14458 15484 13789
12/03 14485 15507 13824
14570 15661 13860
14433 15491 13896
14515 15641 13942
12/04 14512 15644 14005
14496 15602 14084
14624 15780 14182
14619 15793 14297
12/05 14712 15902 14429
3/06 14742 15961 14578
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 1-3 Year Treasury Index and
the Citigroup 6 Month Treasury Bill Index. The Citigroup 1-3 Year Treasury Index
is a widely recognized index of U.S. Treasury securities with maturities of one
year or greater and less than three years. The Citigroup 6 Month Treasury Bill
Index tracks the performance of 6 month U.S. Treasury Bills. The indices are
unmanaged and do not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
SHORT-TERM U.S. TREASURY ----------------------------------
SECURITIES FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
------------------------ -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 03/18/93 1.52 0.70 2.16 3.78
WITH SALES CHARGE* -0.98 -0.13 1.65 3.53
C SHARES WITHOUT CDSC 06/22/95 0.88 0.32 1.85 3.51
WITH CDSC* -0.11 0.32 1.85 3.51
I SHARES 03/15/93 1.70 0.88 2.35 3.96
CITIGROUP 1-3 YEAR TREASURY
INDEX 2.30 1.40 3.17 4.78
CITIGROUP 6 MONTH TREASURY BILL
INDEX 3.54 2.08 2.42 4.02
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
32
STRATEGIC INCOME FUND
PORTFOLIO MANAGER(S)
- - Michael McEachern, CFA
- - Adrien Webb, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares.
Although the fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
International investing involves increased risk and volatility.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Strategic Income Fund lagged
its benchmark with a return of 0.19% (I Shares) versus 3.53% for the Strategic
Income Hybrid Index. The Fund uses a hybrid blended benchmark of 34% of the
Merrill Lynch AAA U.S. Treasury/Agency Master Index, 33% of the Merrill Lynch
U.S. High Yield Master Index and 33% of the Merrill Lynch AAA Global Government
Bond II ex U.S. Index for performance comparison purposes.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The performance of the Fund was impacted by several factors during the quarter.
First of all, the high yield segment was underweight assets of the major
domestic auto makers and their financial subsidiaries, which rallied in the
period. Secondly, the foreign exchange element of the fund benefited from both
the weakness in the U.S. dollar and investments in assets denominated in the
Euro and the Swedish Krona. After the strong fourth quarter the U.S. dollar
finally fell off, thereby enabling our short position in the dollar to add
significant value. Thirdly, the U.S. Government portion of the fund was neutral
to the index. And finally, investments in emerging market debt were also
essentially flat. (1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Going forward we continue to take a somewhat defensive stand in credit and
expect the dollar to continue its underperformance, with the major beneficiaries
being the Japanese Yen and the Euro. In fact, the Fund ended the quarter with
commitments to these two currencies.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Bank Loans 1.0%
Corporate Bonds 21.7%
Foreign Government Bonds 23.8%
Preferred Stock 0.3%
Short Term Investments 27.5%
U.S. Treasury Obligations 25.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
33
STRATEGIC INCOME FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Merrill Lynch AAA Merrill Lynch AAA Merrill Lynch U.S.
Strategic Income Fund U.S. Treasury/ Global Government High Yield Master II Strategic Income
(I Shares) Agency Master Index Bond II ex U.S. Index Index Hybrid Index
--------------------- ------------------- --------------------- -------------------- ----------------
11/30/2001 10000 10000 10000 10000 10000
12/01 9906 9912 9920 9921 9842
9946 9851 9892 10093 9823
9850 10282 10127 9389 10184
9837 10953 10472 9106 10406
12/02 10261 11032 10645 9733 10885
10533 11145 10799 10429 11318
11059 11420 10944 11474 11951
11129 11335 10844 11774 12126
12/03 11441 11293 10848 12473 12617
11725 11614 11028 12745 12894
11520 11273 10904 12643 12587
11957 11625 11171 13228 13053
12/04 12662 11679 11418 13829 13722
12446 11633 11555 13630 13502
12526 12029 11926 13986 13658
12481 11911 11954 14114 13598
12/05 12468 11989 12057 14208 13545
3/06 12469 11883 11956 14615 13629
This chart assumes an initial hypothetical investment of $10,000 made on
11/30/01. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Strategic Income Hybrid Index a blended
hybrid index which consists of 33% of the Merrill Lynch AAA U.S. Treasury/Agency
Master Index, 34% of the Merrill Lynch U.S. High Yield Master II Index and 33%
of the Merrill Lynch AAA Global Government Bond II ex U.S. Index. The Merrill
Lynch AAA U.S. Treasury/Agency Master Index, the Merrill Lynch U.S. High Yield
Master II Index and the Merrill Lynch AAA Global Government Bond II ex U.S.
Index. The Merrill Lynch AAA U.S. Treasury/Agency Master Index is a
widely-recognized U.S. government index that tracks the performance of the
combined U.S. Treasury and U.S. agency markets. It includes U.S.
dollar-denominated, U.S. Treasury and U.S. agency bonds, issued in the U.S.
domestic bond market, having a at least one year remaining term to maturity, a
fixed coupon schedule and a minimum amount outstanding of $1 billion for U.S.
Treasuries and $150 million for U.S. agencies. The Merrill Lynch U.S. High Yield
Master II Index is a widely-recognized, market-value weighted index that tracks
the performance of below investment grade U.S. dollar-denominated corporate
bonds publicly issued in the U.S. domestic market. The Merrill Lynch Global
Government Bond II ex U.S. Index is a widely recognized subset of the Merrill
Lynch Global Government bond Index including Belgian, Danish, Irish, Italian,
New Zealand, Portuguese, Spanish and Swedish returns. The indices are unmanaged
and do not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------
SINCE
STRATEGIC INCOME FUND INCEPTION DATE 1 YEAR 3 YEAR INCEPTION
- --------------------- -------------- ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 10/8/03 -0.01 -- 4.62
WITH SALES CHARGE* -4.74 -- 2.57
C SHARES WITHOUT CDSC 11/30/01 -0.57 5.14 4.63
WITH CDSC* -1.51 5.14 4.63
I SHARES 11/30/01 0.19 5.79 5.23
MERRILL LYNCH AAA U.S. TREASURY/AGENCY MASTER INDEX 2.16 2.16 --
MERRILL LYNCH U.S. HIGH YIELD MASTER II INDEX 7.23 11.91 --
MERRILL LYNCH AAA GLOBAL GOVERNMENT BOND II EX U.S. INDEX 3.47 3.45 --
STRATEGIC INCOME HYBRID INDEX 3.53 5.50 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
34
TOTAL RETURN BOND FUND (formerly Classic Institutional Total Return Bond Fund)
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
INVESTMENT CONCERNS
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Total Return Bond Fund lagged
its benchmark, the Lehman Brothers Aggregate Bond Index with a return of 1.31%
(I Shares) versus 2.26% for the index.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund has maintained its defensive strategy over the past fiscal year, while
credit spreads have been extremely narrow and driven by strong demand and
limited supply. Despite this cautious posture and bias towards Treasuries, we
are making active decisions regarding security selection and sector allocations.
We are significantly underweight the corporate and mortgage sectors and as
always are neutral duration to the index. The resulting performance for the Fund
modestly trailed the index's results.(1)
The economy rebounded from the weak, hurricane impacted, final quarter of 2005.
First quarter Gross Domestic Product(1) is predicted to exceed 4%. Employment
and manufacturing sectors are healthy and housing has only slowed slightly. The
Federal Reserve Board (the "Fed") raised the fed funds target twice in the
quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in
the quarter and returns of bond indexes were slightly negative, similar to last
year's third quarter.(2)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Because credit spreads are extremely narrow, driven by strong demand and limited
supply, we maintained our defensive strategy in the quarter. Despite this
cautious posture and bias towards Treasuries, we are making active decisions
regarding security selection and sector allocations. We are significantly
underweight the corporate and mortgage sectors and continue to opportunistically
own Treasury Inflation Protected Securities. We believe that current valuations
are not sustainable and do not justify the greater risk of overweighting
corporates and mortgages. We think the more likely outcome will be wider yield
spreads and better buying opportunities as we move into the latter stages of the
current economic expansion.
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
PORTFOLIO COMPOSITION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
Collateralized Mortgage Obligations 2.2%
Corporate Bonds 10.5%
Foreign Government Bonds 2.7%
U.S. Government Agency Mortgages 29.0%
U.S. Treasury Obligations 46.9%
Repurchase Agreements 6.2%
Asset Backed Securities 2.5%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
35
TOTAL RETURN BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Total Return Bond Fund Lehman Brothers U.S. Aggregate
(I Shares) Bond Index
---------------------- ------------------------------
10/15/2003 10000 10000
12/03 10128 10126
10379 10395
10064 10141
10389 10465
12/04 10562 10565
10489 10515
10739 10831
10663 10758
12/05 10717 10822
3/06 10627 10752
This chart assumes an initial hypothetical investment of $10,000 made on
10/15/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index a widely-recognized index of U.S. Treasury and agency securities,
corporate bond issues, mortgage-backed securities, asset-backed securities and
corporate mortgage-backed securities. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
----------------------------
SINCE
TOTAL RETURN BOND FUND INCEPTION DATE 1 YEAR INCEPTION
- ---------------------- -------------- ------ ---------
I SHARES 10/15/03 1.31 2.50
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM.
Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares
were merged into I Shares and T Shares were no longer offered.
36
U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's Shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the U.S. Government Securities
Fund lagged its benchmarks, the Merrill Lynch Government/Mortgage Custom Index
and the Lehman Brothers Intermediate U.S. Government Bond Index with a return of
1.66% (I Shares) versus 2.46% and 2.07%, respectively.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
Mortgage Backed Securities have been the best performers this year. A rally was
spurred by a surprising interest from investors who have replaced the absent
Federal housing agencies. Another inversion between two and ten year securities
can cause mortgages to cheapen. The tone of the market is subdued because market
volatility remains close to all time lows. This breeds an environment which
fosters more complacent risk taking--something we are not willing to accept
without proportional returns, and which caused the Fund's underperformance.(1)
Higher interest rates were a benefit to performance as prepayments slow and
mortgages gain favor. The portfolio's shorter duration relative to the index
during this period also provided a benefit. The added value of ARMs and the
stability of recently dated current coupon mortgages were also helpful. The
underweight in bonds relative to the Government component of the blended index
also generated a positive contribution.(1)
We are making active decisions regarding security selection and sector
allocations. We are significantly underweight in the Agency sector,
opportunistically own TIPS and are somewhat overweight mortgages relative to the
index. We have doubled our position in ARMs with complementary prepayment
scenarios to our fixed rate composition while also providing a hedge against
higher rates. We have reduced our holdings in generic Treasuries while holding
similar weightings in Treasury Inflation Protected Securities, Agencies and
Cash.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Since the early part of last year, we have focused on reducing risk at a time
when market volatility remains close to all time lows. This absence of
volatility breeds an environment which fosters more complacent risk
taking--something we are not willing to accept without proportional returns. A
greater degree of instability could arise and provide the opportunity to boost
relative returns. We feel strongly that our strategies should continue to pay
off if this disregard for risk comes to an end. Another inversion between two
and ten year Treasuries can cause mortgages to cheapen. An overaggressive
inflation fighting Fed would provide additional opportunities. Our general view
is that spread markets must get cheaper. This would certainly provide the
impetus for value to surface. Until then, we will monitor risk and reward
closely.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
U.S. Government Agencies 1.4%
Short-Term Investments 28.1%
U.S. Treasury Obligations 31.9%
U.S. Government Agency Mortgages 35.5%
Repurchase Agreements 3.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
37
U.S. GOVERNMENT SECURITIES FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
U.S. Government Securities Merrill Lynch Lehman Brothers Intermediate
Fund (I Shares) Government/Mortgage Custom Index U.S. Government Bond Index
-------------------------- -------------------------------- ----------------------------
3/96 10000 10000 10000
10017 10053 10067
10192 10243 10240
12/96 10493 10546 10477
10374 10509 10475
10771 10887 10767
11131 11228 11042
12/97 11431 11545 11286
11619 11733 11457
11877 11987 11669
12344 12477 12214
12/98 12364 12528 12244
12311 12496 12210
12182 12408 12186
12278 12513 12309
12/99 12244 12495 12304
12493 12791 12505
12712 13035 12732
13083 13421 13074
12/00 13588 14019 13592
13927 14380 14000
13914 14426 14059
14585 15135 14757
12/01 14529 15093 14736
14533 15128 14697
15110 15726 15265
15735 16470 16001
12/02 15935 16657 16157
16053 16827 16306
16287 17101 16582
16104 17089 16560
12/03 16141 17130 16526
16466 17539 16891
16119 17179 16502
16531 17676 16875
12/04 16693 17830 16912
16657 17781 16797
17039 18294 17185
16952 18190 17095
12/05 17030 18301 17197
3/06 16934 18217 17145
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch Government/Mortgage
Custom Index and the Lehman Brothers Intermediate U.S. Government Bond Index.
The Merrill Lynch Government/Mortgage Custom Index is a synthetic index created
by combining the Merrill Lynch Government Master Index, which is a comprised of
U.S. Treasury securities and U.S. government agency securities with a maturity
of at least one year; and the Merrill Lynch Mortgage Master Index, which is
comprised of mortgage-backed securities including 15 and 30 year single family
mortgages in addition to aggregated pooled mortgages. The Lehman Brothers
Intermediate U.S. Government bond index is a market value-weighted index of U.S.
Treasury securities, U.S. government agency obligations, and corporate debt
backed by the U.S. Government, fixed-rate nonconvertible corporate debt
securities, Yankee bonds, and nonconvertible debt securities issued by or
guaranteed by foreign governments and agencies. All securities in the Index are
rated investment grade (BBB) or higher, with maturities of at least one year.
The indices are unmanaged and do not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS
AS OF 3/31/06 (%)
INCEPTION ----------------------------------
U.S. GOVERNMENT SECURITIES FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 06/06/94 1.43 1.42 3.61 4.99
WITH SALES CHARGE* -3.39 -0.21 2.61 4.49
C SHARES WITHOUT CDSC 06/07/95 0.76 0.84 3.03 4.45
WITH CDSC* -0.21 0.84 3.03 4.45
I SHARES 08/01/94 1.66 1.80 3.99 5.41
MERRILL LYNCH GOVERNMENT/
MORTGAGE CUSTOM INDEX 2.46 2.68 4.84 6.18
LEHMAN BROTHERS INTERMEDIATE
U.S. GOVERNMENT BOND INDEX 2.07 1.69 4.14 5.54
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
38
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND (formerly Classic Institutional
U.S. Government Securities Super Short Income Plus Fund)
PORTFOLIO MANAGER(S)
- - Robert W. Corner
- - H. Rick Nelson
INVESTMENT CONCERNS
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the U.S. Government Securities
Ultra-Short Bond Fund returned 3.12% (I Shares) versus 3.51% for its benchmark
the Citigroup 6 Month U.S. Treasury Bill Index.
The most prominent factor influencing the underperformance of the Fund over the
past year was that of a flattening yield curve due to a tighter, or more
restrictive, Federal Reserve monetary policy. Short-term yields rose more than
long-term yields as the Federal Reserve (the "Fed") tightened monetary policy by
25 basis points (0.25%) at each of their eight meetings. The federal funds rate
ended the year at 4.75%, up from 2.75% at the beginning of the year while the
two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82% from 3.78%.
In contrast, the ten year U.S. Treasury note rose only 37 basis points (0.37%)
to end the year at 4.85%, up from 4.48%.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund maintained a conservative duration of about 0.6 years during the
beginning of the year and slowly added to duration as rates rose. Duration at
the end of the year had been pushed out to 0.7 years. The Fund would probably
have performed even better relative to its peer group if we had maintained a
shorter duration. However, not extending duration to the Fund's maximum
permitted duration of one year kept returns very competitive and slightly above
the Lipper category average.(1)
A significant position in floating rate securities or securities that have
adjustable rates helped temper the interest rate sensitivity of the Fund while
helping increase the yield of the Fund as rates rose. For example we maintained
a consistent allocation between 10% and 15% to student loan auction and floating
rate securities. In addition, we maintained positions in U.S. Agency adjustable
rate mortgage backed securities as well as floating rate U.S. Agency debt
securities.(1)
In general, U.S. Agency mortgage backed securities and U.S. Agency debt
securities performed well compared to other fixed income sectors due to
declining volatility and relatively stable spreads. For example, U.S. Agency
notes maturing between 1 and 3 years returned 2.66% for the year while AAA/AA
rated corporate securities returned a slightly higher 2.72% (Source: Merrill
Lynch.)(1)
During the year, we reduced our allocation to U.S. Agency debt securities to 42%
from 35%. However, we increased our allocation to callable U.S. Agency
securities to 2% from 10%. Our mortgage backed allocation increased to 31% from
44%.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Looking forward, the extent of further Fed tightening is more data dependent as
policy expectations are pushing the upper bounds of neutral. With (the fed
funds) rate having risen by nearly 400 basis points (4.00%) over the past two
years, the Fed is expected to slow their pace of tightening in order to better
evaluate the economic landscape of higher rates and a flatter yield curve.
Second, yield spreads and volatility measures are at the lower ends of recent
history. If both spreads and volatility measures stay low, callable U.S. Agency
securities and U.S. Agency mortgage backed securities should continue to perform
well relative to other asset classes. We expect to maintain this focus for the
near future as there seems to be little reward in assuming additional corporate
credit risk at current tight spreads.
One needs to consider the many possibilities when evaluating future
expectations. One of those potential outcomes that has not been on the radar
over the last few years is a Fed pause and eventual easing. While Fed easing
does not seem be in the cards in the near-term, our plan for Fed easing will be
to reduce our exposure to floating rate securities, callable structure, and MBS
in favor of bullet structures in order to lock in yields for a longer period of
time.
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Asset Backed Securities 9.8%
Master Notes 1.9%
Municipal Bonds 0.9%
U.S. Government Agencies 40.1%
U.S. Government Agency Mortgages 43.8%
Short-Term Investments 1.5%
Money Market Funds 2.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
39
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
U.S. Government
Securities
Ultra-Short Bond Citigroup 6 Month U.S.
Fund (I Shares) Treasury Bill Index
---------------- ----------------------
4/11/2002 10000 10000
10103 10047
10211 10094
12/02 10279 10136
10332 10171
10327 10201
10365 10229
12/03 10353 10255
10444 10281
10431 10308
10477 10343
12/04 10541 10389
10559 10448
10652 10521
10721 10606
12/05 10800 10704
3/06 10889 10814
This chart assumes an initial hypothetical investment of $10,000 made on
4/11/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill
Index which is a widely-recognized index which tracks the performance of the 6
Month U.S. Treasury Bills. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL
RETURNS AS OF 3/31/06 (%)
---------------------------
U.S. GOVERNMENT SECURITIES INCEPTION SINCE
ULTRA-SHORT BOND FUND DATE 1 YEAR 3 YEAR INCEPTION
- -------------------------- --------- ------ ------ ---------
I SHARES 04/11/02 3.12 1.76 2.17
CITIGROUP 6 MONTH U.S. TREASURY BILL INDEX 3.51 2.07
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares
were merged into I Shares and T Shares were no longer offered.
40
ULTRA-SHORT BOND FUND (formerly Classic Institutional Super Short Income Plus
Fund)
PORTFOLIO MANAGER(S)
- - Robert W. Corner
- - H. Rick Nelson
INVESTMENT CONCERNS
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Ultra-Short Bond Fund returned
3.23% (I Shares) versus 3.51% for its benchmark index the Citigroup 6 Month U.S.
Treasury Bill Index.
The most prominent factor influencing underperformance over the past year was
that of a flattening yield curve due to Federal Reserve tightening. Short-term
yields rose more than long-term yields as the Fed tightened monetary policy by
25 basis points (0.25%) at each of their eight meetings. The federal funds rate
ended the year at 4.75%, up from 2.75% at the beginning of the year while the
two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82% from 3.78%.
In contrast, the ten year U.S. Treasury note rose only 37 basis points (0.37%)
to end the year at 4.85%, up from 4.48%.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund maintained a conservative duration of about 0.6 years during the
beginning of the year and slowly added to duration as rates rose. Duration at
the end of the year had been pushed out to 0.7 years. The Fund would probably
have performed even better relative to its peer group if we had maintained a
shorter duration. However, not extending duration to the Fund's maximum
permitted duration of 1 year kept returns very competitive and slightly above
the Lipper category average.
A significant position in floating rate securities or securities that have
adjustable rates helped temper the interest rate sensitivity of the Fund while
helping increase the yield of the Fund as rates rose. For example we maintained
a consistent allocation between floating rate corporate notes, asset backed
securities and student loan auction securities. In addition, we maintained
positions in U.S. Agency adjustable rate mortgage backed securities.(1)
In general, U.S. Agency mortgage backed securities and U.S. Agency debt
securities performed well compared to other fixed income sectors due to
declining volatility and relatively stable spreads. For example, US Agency notes
maturing between 1 and 3 years returned 2.66% for the year while AAA/AA rated
corporate securities returned a slightly higher 2.72% (Source: Merrill
Lynch.)(1)
During the year, we reduced our allocation to U.S. Agency debt securities,
corporate debt securities, and cash & equivalents in favor of mortgage backed
securities. However, we increased our allocation to callable U.S. Agency
securities to 2% from 8%. Our mortgage backed allocation increased to 18% from
24%.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Looking forward, the extent of further Fed tightening is more data dependent as
policy expectations are pushing the upper bounds of neutral. With (the fed
funds) rate having risen by nearly 400 basis points (4.00%) over the past two
years, the Fed is expected to slow their pace of tightening in order to better
evaluate the economic landscape of higher rates and a flatter yield curve.(1)
Second, yield spreads and volatility measures are at the lower ends of recent
history. If both spreads and volatility measures stay low, callable U.S. Agency
securities and mortgage backed securities should continue to perform well
relative to other asset classes. We expect to maintain this focus for the near
future as there seems to be little reward in assuming additional corporate
credit risk at current tight spreads.(1)
One needs to consider the many possibilities when evaluating future
expectations. One of those potential outcomes that has not been on the radar
over the last few years is a Fed pause and eventual easing. While Fed easing
does not seem be in the cards in the near-term, our plan for Fed easing will be
to reduce our exposure to floating rate securities, callable structure, and MBS
in favor of bullet structures in order to lock in yields for a longer period of
time.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Money Market Funds 1.7%
Asset Backed Securities 22.6%
Collateralized Mortgage Obligations 5.7%
Commercial Papers 5.6%
Corporate Bonds 26.7%
Master Notes 1.1%
Municipal Bonds 1.0%
U.S. Government Agencies 10.4%
U.S. Government Agency Mortgages 16.4%
U.S. Treasury Obligations 3.3%
Short-Term Investments 5.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
41
ULTRA-SHORT BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Ultra-Short Bond Fund (I Shares) Citigroup 6 Month U.S. Treasury Bill Index
-------------------------------- ------------------------------------------
4/15/2002 10000 10000
10100 10047
10209 10094
12/02 10268 10136
10316 10171
10360 10201
10399 10229
12/03 10387 10255
10477 10281
10412 10308
10508 10343
12/04 10513 10389
10579 10448
10666 10521
10735 10606
12/05 10829 10704
3/06 10920 10814
This chart assumes an initial hypothetical investment of $10,000 made on
4/15/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill
Index which is a widely-recognized index which tracks the performance of 6 Month
U.S. Treasury Bills. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
ULTRA-SHORT BOND FUND INCEPTION DATE 1 YEAR 3 YEAR SINCE INCEPTION
- --------------------- -------------- ------ ------ ---------------
I SHARES 04/15/02 3.23 1.91 2.25
CITIGROUP 6 MONTH U.S. TREASURY BILL INDEX 3.51 2.07 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares
were merged into I Shares and T Shares were no longer offered.
42
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO MANAGER
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Virginia Intermediate
Municipal Bond Fund outperformed the Lehman 5 Year Municipal Bond Index,
returning 3.05% (I Shares) versus 2.14% for the index.
The primary factor for the outperformance was the Fund's exposure to 15 to 20
year bonds where returns exceeded the returns of shorter bonds, despite the
rising rate environment most of the year. We offset these longer holdings with
cushion bonds and other short duration bonds.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The flattening yield curve that came with rising rates hurt the valuation of
bonds due within 10 years the most. This Fund was underweight in this area. The
Fund was overweight some lower quality sectors, including the Tobacco settlement
bonds issued by Virginia, and the intense demand for higher yielding securities
that has been a worldwide fixed income issue allowed these bonds to hold value
better than high grade bonds in the rising rate environment.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund will be positioned for 2006-2007 with slightly shorter duration and
maturity characteristics as we expect rates to rise further. We will reduce the
Fund's exposure to bonds due past 15 years and make the tactical trades within
the 5 to 10 year area to prepare for the yield curve to eventually return to a
steeper slope.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006)(1)
as a percentage of total investments
(PIE CHART)
Municipal Bonds 99.6%
Money Market Funds 0.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
43
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Virginia Intermediate Lehman Brothers 5 Year
Municipal Bond Fund (I Shares) Municipal Bond Index
------------------------------ ----------------------
3/96 10000 10000
10025 10053
10178 10219
12/96 10387 10422
10370 10419
10647 10674
10904 10902
12/97 11139 11086
11239 11215
11363 11340
11653 11638
12/98 11720 11734
11793 11856
11561 11709
11512 11819
12/99 11446 11820
11680 11961
11810 12150
12083 12389
12/00 12521 12732
12774 13093
12843 13222
13139 13585
12/01 13076 13522
13162 13600
13599 14161
14104 14652
12/02 14106 14776
14236 14941
14532 15212
14542 15366
12/03 14645 15386
14818 15583
14509 15248
14928 15680
12/04 15035 15805
14934 15623
15354 15922
15287 15907
12/05 15383 15955
3/06 15390 15958
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond
Index a widely recognized index of intermediate investment grade tax-exempt
bonds. The index includes general obligation bonds, revenue bonds, insured bonds
and prefunded bonds with maturities between 4 and 6 years. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%)
----------------------------------------------
VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- --------------------- -------------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 05/05/93 2.92 2.51 3.73 4.38
WITH SALES CHARGE* -1.93 0.87 2.72 3.87
C SHARES WITHOUT CDSC 09/01/05 2.56 2.47 3.70 4.36
WITH CDSC* 1.57 2.47 3.70 4.36
I SHARES 01/11/93 3.05 2.63 3.80 4.41
LEHMAN BROTHERS 5 YEAR
MUNICIPAL BOND INDEX 2.14 2.22 4.04 4.78
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, T SHARES
WERE RENAMED I SHARES.
The C Shares were offered beginning on 9/1/05. The C Shares performance between
1/11/93 to 9/1/05 is that of the Class I Shares (formerly T Shares) of the Fund,
and has not been adjusted to reflect C Share expenses. If it had been
performance would have been lower.
44
VIRGINIA MUNICIPAL BOND FUND
PORTFOLIO MANAGER
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
Certain shareholders may be subject to the Alternative Minimum Tax (AMT).
Federal income tax rules will apply to any capital gains distributions.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2006?
For the 12 month period ended March 31, 2006, the Fund outperformed, to a minor
degree, the Lehman Brothers 10 Year Municipal Bond Index, returning 3.36% (I
Shares) compared to 3.31% for the index.
The Fund's duration was more defensive during this period, holding less than a
market weight of long maturity bonds where returns were the best by wide
margins, and greater weighting in shorter duration holdings.(1)
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The flattening yield curve that came with rising rates hurt the valuation of
bonds due within 10 years, while long bonds produced the greatest returns due
to the world wide demand for higher yields regardless of maturity. Market yields
did not offer appropriate spreads for maturity or credit risk but portfolios
exposed to these risks generated greater returns than this Fund.(1)
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund will be positioned for 2006-2007 with slightly shorter duration and
maturity characteristics as we expect rates to rise further. We will reduce the
Fund's exposure to bonds due past 20 years and make tactical trades in the
intermediate range to prepare for the eventual return of the yield curve to a
more normal steeper slope.(1)
PORTFOLIO COMPOSITION (as of March 31, 2006) (1)
as a percentage of total investments
(PIE CHART)
Municipal Bonds 98.6%
Money Market Funds 1.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
45
VIRGINIA MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT (as of March 31, 2006)
(PERFORMANCE GRAPH)
Virginia Municipal Bond Lehman Brothers 10 Year
Fund (I Shares) Municipal Bond Index
----------------------- -----------------------
3/96 10000 10000
10030 10031
10206 10232
12/96 10456 10523
10382 10521
10736 10867
11060 11205
12/97 11378 11495
11494 11614
11632 11789
12018 12192
12/98 12044 12272
12112 12342
11894 12059
11678 12136
12/99 11459 12119
11777 12401
11965 12599
12260 12911
12/00 12795 13423
13042 13735
13102 13795
13437 14202
12/01 13336 14043
13439 14213
13909 14793
14570 15548
12/02 14556 15471
14715 15662
15067 16153
15065 16133
12/03 15198 16353
15371 16616
15040 16220
15555 16892
12/04 15713 17031
15657 16918
16132 17462
16074 17365
12/05 16165 17498
3/06 16184 17478
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/96. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/06 (%)
INCEPTION ----------------------------------
VIRGINIA MUNICIPAL BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ---------------------------- --------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 05/11/04 3.11 3.07 4.32 4.88
WITH SALES CHARGE* -1.82 1.41 3.31 4.38
C SHARES WITHOUT CDSC 04/14/95 2.23 2.18 3.39 3.96
WITH CDSC* 1.24 2.18 3.39 3.96
I SHARES 04/04/95 3.36 3.22 4.41 4.93
LEHMAN BROTHERS 10 YEAR
MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF
4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED
SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES
WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES.
46
PRIME QUALITY MONEY MARKET FUND
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
INVESTMENT CONCERNS
An investment in the Prime Quality Money Market Fund (the "Fund") is not insured
or guaranteed by the FDIC or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Prime Quality Money Market Fund was positioned for a rising rate environment
by overweighting floating rate assets and maintaining shorter fixed maturities.
For the period the Federal Reserve has increased interest rates at each Federal
Open Market Committee ("FOMC") meeting benefiting the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve should raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR (1) curve later in the year.(2)
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES C SHARES I SHARES
- ----------------------------- -------- -------- --------
7 Day Average Yield 3.97 3.87 4.12
7 Day Effective Yield 4.05 3.94 4.20
30 Day Average Yield 3.91 3.81 4.06
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return. Effective August 1, 2005, L Shares were renamed C Shares and
T Shares were renamed I Shares.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 13.9%
3-14 Days 42.1%
15-29 Days 14.8%
30-89 Days 14.1%
90-365 Days 15.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
47
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert Bowman, CFA
INVESTMENT CONCERNS
An investment in the Tax-Exempt Money Market Fund (the "Fund") is not insured or
guaranteed by the FDIC or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Tax-Exempt Money Market Fund was positioned for a rising rate environment by
overweighting floating rate assets and maintaining shorter fixed maturities.
For the period the Federal Reserve has increased interest rates at each Federal
Open Market Committee ("FOMC") meeting benefiting the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve should raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR (1) curve later in the year.(2)
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES
- ----------------------------- -------- --------
7 Day Average Yield 2.54 2.69
7 Day Effective Yield 2.57 2.72
30 Day Average Yield 2.47 2.62
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return. Effective August 1, 2005, T Shares were renamed I Shares.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 15.6%
3-14 Days 78.0%
30-89 Days 2.3%
90-365 Days 4.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
48
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert Bowman, CFA
INVESTMENT CONCERNS
An investment in the U.S. Government Securities Money Market Fund (the "Fund")
is not insured or guaranteed by the FDIC or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The U.S. Government Securities Money Market Fund was positioned for a rising
rate environment by overweighting floating rate assets and maintaining shorter
fixed maturities. For the period the Federal Reserve has increased interest
rates at each Federal Open Market Committee ("FOMC") meeting benefiting the
Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve should raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR (1) curve later in the year.(2)
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES
- ----------------------------- -------- --------
7 Day Average Yield 3.80 3.95
7 Day Effective Yield 3.87 4.03
30 Day Average Yield 3.71 3.86
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return. Effective August 1, 2005, T Shares were renamed I Shares.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 50.5%
3-14 Days 17.1%
15-29 Days 3.0%
30-89 Days 10.0%
90-365 Days 19.4%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
49
U.S. TREASURY MONEY MARKET FUND
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
INVESTMENT CONCERNS
An investment in the U.S. Treasury Money Market Fund (the "Fund") is not insured
or guaranteed by the FDIC or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The U.S. Treasury Money Market Fund was positioned for a rising rate environment
by maintaining shorter fixed maturities. For the period the Federal Reserve has
increased interest rates at each Federal Open Market Committee ("FOMC") meeting
benefiting the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve should raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity should alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
yield curve later in the year.
YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES
- ----------------------------- -------- --------
7 Day Average Yield 3.84 3.99
7 Day Effective Yield 3.91 4.06
30 Day Average Yield 3.72 3.87
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return. Effective August 1, 2005, T Shares were renamed I Shares.
MATURITY DISTRIBUTION (as of March 31, 2006)(1)
as a percentage of total investment
(PIE CHART)
1-2 Days 63.9%
15-29 Days 29.8%
30-89 Days 3.7%
90-365 Days 2.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
50
VIRGINIA TAX-FREE MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert Bowman, CFA
INVESTMENT CONCERNS
An investment in the Virginia Tax-Free Money Market Fund (the "Fund") is not
insured or guaranteed by the FDIC or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Virginia Tax-Free Fund was positioned for a rising rate environment by
overweighting floating rate assets and maintaining shorter fixed maturities.
For the period the Federal Reserve has increased interest rates at each FOMC
meeting benefiting the performance of the fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve should raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR (1) curve later in the year.(2)
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES
- ----------------------------- -------- --------
7 Day Average Yield 2.53 2.68
7 Day Effective Yield 2.56 2.71
30 Day Average Yield 2.47 2.62
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return. Effective August 1, 2005, T Shares were renamed I Shares.
MATURITY DISTRIBUTION (as March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 8.6%
3-14 Days 84.2%
30-89 Days 1.3%
90-365 Days 5.9%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
51
This page is intentionally left blank.
52
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CORE BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
ASSET BACKED SECURITIES (2.8%)
AUTOMOBILE ABS (0.7%)
Daimler Chrysler Auto Trust,
Ser 2005-A, Cl A4, 3.740%,
02/08/10 2,490 2,428
Honda Auto Receivables Owner
Trust, Ser 2006-1, Cl A3,
5.070%, 02/18/10 1,105 1,102
--------
3,530
--------
CREDIT CARD ABS (0.9%)
BA Master Credit Card Trust,
Ser 2001, Cl A, 4.869%,
06/15/08 (b) 1,664 1,664
Chase Issuance Trust, Ser
2005-A1, Cl A1, 4.759%,
12/15/10 (b) 2,606 2,606
--------
4,270
--------
DIVERSIFIED FINANCIAL SERVICES (0.5%)
SLM Student Loan Trust, Ser
2004-8, Cl A3, 4.713%,
07/27/15 (b) 2,582 2,586
--------
HOME EQUITY ABS (0.7%)
Cityscape Home Equity Loan
Trust, Ser 1996-3, Cl A8,
7.650%, 09/25/25 23 22
Countywide Home Equity Loan
Trust, Ser 2006-C, Cl 2A,
5.041%, 05/15/36 (b) 3,280 3,281
Delta Funding Home Equity Loan
Trust, Ser 1999-3, Cl A1F,
7.462%, 09/15/29 8 8
New Century Home Equity Loan
Trust, Ser 1999-NCB, Cl A7,
7.540%, 06/25/29 8 8
Soundview Home Equity Loan
Trust, Ser 2001-1, Cl A,
6.265%, 04/15/31 7 7
--------
3,326
--------
Total Asset Backed Securities
(Cost $13,727) 13,712
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (2.3%)
Banc of America Commercial
Mortgage, Inc., Ser 2004-4,
Cl A3, 4.128%, 07/10/42 2,350 2,264
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
Citigroup/Deutsche Bank
Commercial Mortgage Trust,
Ser 2005-CD1, Cl A4, 5.225%,
07/15/44 (b) 1,700 1,666
Citigroup/Deutsche Bank
Commercial Mortgage Trust,
Ser 2006-CD2, Cl A4, 5.545%,
01/15/46 1,115 1,100
GE Capital Commercial Mortgage
Corp., Ser 2006-C1, Cl A4,
5.519%, 03/10/44 (b) 2,635 2,600
GS Mortgage Securities Corp.
II, Ser 2006-GG6, Cl A2,
5.506%, 04/10/38 (b) 2,185 2,190
Wachovia Bank Commercial
Mortgage Trust, Ser 2006-C23,
Cl A4, 5.418%, 01/15/45 (b) 1,860 1,833
--------
Total Collateralized Mortgage
Obligations (Cost $11,785) 11,653
--------
CORPORATE BONDS (9.8%)
AEROSPACE/DEFENSE (0.3%)
United Technologies Corp.,
4.875%, 05/01/15 1,350 1,289
--------
AIRLINES (0.1%)
Southwest Airlines Co., 5.125%,
03/01/17 650 602
--------
BANKS (0.3%)
Bank of America Corp., 7.400%,
01/15/11 1,610 1,740
--------
COMMERCIAL SERVICES (0.1%)
ERAC USA Finance Co., 5.600%,
05/01/15 (d) 395 385
--------
COSMETICS/PERSONAL CARE (0.3%)
Avon Products, Inc., 5.125%,
01/15/11 1,615 1,586
--------
DIVERSIFIED FINANCIAL SERVICES (2.6%)
CIT Group, Inc., 5.125%,
09/30/14 1,370 1,310
Citigroup, Inc., 5.125%,
05/05/14 420 408
Citigroup, Inc., 5.850%,
12/11/34 635 624
Fund American Cos., Inc.,
5.875%, 05/15/13 1,795 1,764
Goldman Sachs Group, Inc.
(The), 4.750%, 07/15/13 1,795 1,696
</Table>
See Notes to Financial Statements.
53
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CORE BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
HSBC Holdings PLC, 7.625%,
05/17/32 655 776
International Lease Finance
Corp., Ser Q, 5.250%,
01/10/13 650 632
John Deere Capital Corp.,
3.900%, 01/15/08 370 361
JPMorgan Chase & Co., 6.625%,
03/15/12 1,685 1,770
Lazard Group LLC, 7.125%,
05/15/15 2,050 2,129
Morgan Stanley, 5.300%,
03/01/13 1,420 1,389
--------
12,859
--------
ELECTRIC (0.8%)
Exelon Corp., 4.900%, 06/15/15 1,255 1,166
Exelon Corp., 5.625%, 06/15/35 1,145 1,039
Northern States Power Co.,
2.875%, 08/01/06 165 164
Pacific Gas & Electric Co.,
6.050%, 03/01/34 1,270 1,242
Public Service Co. of Colorado,
Ser 14, 4.375%, 10/01/08 200 196
--------
3,807
--------
ENTERTAINMENT (0.1%)
GTECH Holdings Corp., 4.750%,
10/15/10 410 399
--------
INSURANCE (0.1%)
Metlife, Inc., 5.700%, 06/15/35 370 349
--------
INVESTMENT COMPANIES (0.1%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 605 632
--------
MEDIA (0.4%)
Cox Communications, Inc.,
4.625%, 06/01/13 915 834
News America Holdings, Inc.,
6.200%, 12/15/34 645 604
Time Warner, Inc., 7.625%,
04/15/31 675 735
--------
2,173
--------
MISCELLANEOUS MANUFACTURER (0.6%)
General Electric Co., 5.000%,
02/01/13 2,935 2,855
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
OIL & GAS (0.3%)
Devon Financing Corp. ULC,
7.875%, 09/30/31 760 917
Enterprise Products Operating
LP, Ser B, 5.750%, 03/01/35 745 663
--------
1,580
--------
PHARMACEUTICALS (0.1%)
Teva Pharmaceutical Finance
LLC, 5.550%, 02/01/16 465 448
Teva Pharmaceutical Finance
LLC, 6.150%, 02/01/36 300 283
--------
731
--------
PIPELINES (0.5%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%,
04/01/13 1,000 1,114
Kinder Morgan, Inc., 6.400%,
01/05/36 1,220 1,188
Panhandle Eastern Pipe Line Co.
LLC, Ser B, 4.800%, 08/15/08 345 339
--------
2,641
--------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 410 416
--------
RETAIL (0.6%)
Federated Department Stores,
Inc., 6.900%, 04/01/29 380 395
Woolworths Ltd., 5.550%,
11/15/15 (d) 2,475 2,413
--------
2,808
--------
TELECOMMUNICATIONS (2.4%)
AT&T, Inc., 5.100%, 09/15/14 2,720 2,581
BellSouth Corp., 5.200%,
09/15/14 2,060 1,970
Cisco Systems, Inc., 5.500%,
02/22/16 1,615 1,591
Comcast Corp., 4.950%, 06/15/16 1,155 1,053
Comcast Corp., 6.450%, 03/15/37 750 722
Telecom Italia Capital SA,
5.250%, 10/01/15 1,515 1,410
Verizon Communications, Inc.,
5.850%, 09/15/35 685 614
</Table>
See Notes to Financial Statements.
54
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CORE BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Vodafone Group PLC, 5.500%,
06/15/11 2,095 2,075
--------
12,016
--------
Total Corporate Bonds
(Cost $50,457) 48,868
--------
U.S. GOVERNMENT AGENCY MORTGAGES (29.6%)
FANNIE MAE (20.4%)
5.000%, 12/01/18 2,187 2,132
5.000%, 12/01/18 9,662 9,445
5.000%, 08/01/19 220 215
5.500%, 08/01/19 715 711
5.000%, 09/01/19 144 141
5.500%, 09/01/19 228 227
5.500%, 09/01/19 1,105 1,099
5.500%, 09/01/19 3,879 3,860
5.000%, 10/01/19 239 233
5.000%, 10/01/19 154 150
5.500%, 12/01/19 61 61
4.500%, 04/15/20 (c) 4,512 4,313
6.500%, 06/01/32 77 79
5.500%, 01/01/33 15,943 15,563
5.500%, 02/01/33 444 433
6.500%, 03/01/33 271 276
5.500%, 06/01/33 2,601 2,540
5.500%, 10/01/33 3,821 3,730
6.500%, 10/01/33 107 109
6.500%, 10/01/33 108 111
5.000%, 11/01/33 5,359 5,102
5.000%, 11/01/33 3,479 3,312
6.500%, 11/01/33 121 124
6.500%, 11/01/33 764 780
5.000%, 03/01/34 3,034 2,889
5.000%, 03/01/34 3,921 3,733
5.000%, 04/01/34 7,833 7,458
4.708%, 07/01/34 (b) 4,493 4,398
6.500%, 07/01/34 124 127
6.500%, 07/01/34 1,077 1,099
6.500%, 01/01/35 3,749 3,826
6.000%, 10/01/35 4,366 4,366
6.500%, 11/01/35 5,715 5,831
5.170%, 01/01/36 (b) 4,863 4,831
6.000%, 01/01/36 5,202 5,204
5.501%, 03/01/36 (b) 3,082 3,059
--------
101,567
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
FREDDIE MAC (9.2%)
4.500%, 05/01/18 4,714 4,512
4.500%, 10/01/18 301 288
4.500%, 12/01/18 3,252 3,110
6.000%, 12/01/31 1,496 1,499
6.500%, 07/01/32 160 164
6.000%, 12/01/32 920 920
6.000%, 04/01/33 1,464 1,465
5.000%, 07/01/33 211 201
6.000%, 10/01/33 31 31
6.000%, 12/01/33 284 285
6.500%, 05/01/34 2,563 2,613
6.000%, 07/01/34 1,047 1,048
5.500%, 04/01/35 4,932 4,817
6.000%, 04/01/35 5,475 5,478
6.000%, 04/13/35 (c) 13,364 13,368
4.645%, 08/01/35 (b) 2,451 2,382
4.931%, 11/01/35 (b) 3,750 3,710
--------
45,891
--------
Total U.S. Government Agency
Mortgages (Cost $150,125) 147,458
--------
U.S. TREASURY OBLIGATIONS (54.3%)
U.S. TREASURY BONDS (5.5%)
4.500%, 02/15/36 29,340 27,529
--------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.4%)
1.625%, 01/15/15 22,480 22,032
--------
U.S. TREASURY NOTES (44.4%)
2.250%, 04/30/06 21,505 21,463
3.125%, 05/15/07 23,780 23,329
4.625%, 02/29/08 12,420 12,370
5.625%, 05/15/08 23,360 23,726
3.375%, 12/15/08 40,750 39,268
4.500%, 02/15/09 1,975 1,958
6.000%, 08/15/09 21,280 22,049
4.250%, 10/15/10 30,750 30,032
4.500%, 02/28/11 16,025 15,792
4.250%, 08/15/13 22,970 22,092
4.250%, 11/15/14 9,491 9,071
--------
221,150
--------
Total U.S. Treasury Obligations
(Cost $275,814) 270,711
--------
</Table>
See Notes to Financial Statements.
55
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CORE BOND FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENT (7.7%)
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $38,485,319
(collateralized by U.S.
Government Agencies, DN, due
12/01/34; total market value
$39,241,174) 38,470 38,470
--------
Total Repurchase Agreement (Cost
$38,470) 38,470
--------
Total Investments (Cost $540,378)
(a) -- 106.5% 530,872
Liabilities in excess of other
assets -- (6.5)% (32,621)
--------
Net Assets -- 100.0% $498,251
========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $540,628
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 81
Unrealized Depreciation.................. (9,837)
-------
Unrealized Appreciation (Depreciation)... $(9,756)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)This security was purchased on a when-issue basis.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
Cl -- Class
DN -- Discount Note
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
56
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
FLORIDA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (96.4%)
CALIFORNIA (3.1%)
Los Angeles Unified School
District, Election of 2005,
Ser A, GO, 5.000%, 07/01/09,
AMBAC 5,260 5,499
--------
FLORIDA (68.7%)
Brevard County School Board,
COP, 5.500%, 07/01/17,
Callable 07/01/12 @ 100,
AMBAC 1,860 2,009
Brevard County School Board,
COP, 5.500%, 07/01/18,
Callable 07/01/12 @ 100,
AMBAC 3,015 3,257
Brevard County Utility
Authority, RB, 5.250%,
03/01/13, Callable 03/01/12
@ 100, FGIC 1,000 1,070
Brevard County Utility
Authority, RB, 5.250%,
03/01/14, Callable 03/01/12
@ 100, FGIC 1,000 1,069
Charlotte County Utilities,
Ser A, RB, 3.160%, 10/01/21,
FSA (b) 4,000 4,001
Charlotte County Utilities,
Ser B, RB, 3.180%, 10/01/21,
FSA (b) 3,260 3,260
Collier County Gas Tax, RB,
5.000%, 06/01/22, Callable
06/01/15 @ 100, AMBAC 5,035 5,288
Collier County Gas Tax, RB,
5.000%, 06/01/23, Callable
06/01/15 @ 100, AMBAC 6,160 6,455
Deerfield Beach Water & Sewer
Authority, Refunding &
Improvement Project, RB,
6.125%, 10/01/06, FGIC 30 30
Florida Municipal Power
Agency, Requirements Power
Supply, Ser A, RB, 5.000%,
10/01/08, FSA 6,000 6,200
Florida State Board of
Education, Capital Outlay,
Public Education Project,
GO, 9.125%, 06/01/14, ETM 950 1,276
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser B, GO, 5.250%, 06/01/11,
Callable 06/01/08 @ 101 1,000 1,041
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser B, GO, 5.375%, 06/01/18,
Callable 06/01/12 @ 101 2,130 2,300
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser D, GO, 5.375%, 06/01/15,
Callable 06/01/12 @ 100 1,535 1,655
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser D, GO, 5.625%, 06/01/15,
Callable 06/01/10 @ 101 1,235 1,332
Florida State Board of
Education, Capital Outlay,
Ser C, GO, 7.100%, 06/01/07,
Callable 06/01/06 @ 100, ETM 190 190
Florida State Board of
Education, Lottery, Ser A,
RB, 6.000%, 07/01/12,
Callable 07/01/10 @ 101,
FGIC 1,295 1,415
Florida State Board of
Education, Lottery, Ser A,
RB, 5.375%, 07/01/15,
Callable 07/01/12 @ 101,
FGIC 3,500 3,789
Florida State Board of
Education, Ser B, GO,
5.000%, 01/01/10 4,000 4,185
Florida State Division of Bond
Finance, Department of
Environmental Protection &
Preservation, Ser 2000-A,
RB, 5.375%, 07/01/11,
Callable 07/01/09 @ 101,
FGIC 2,130 2,254
</Table>
See Notes to Financial Statements.
57
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
FLORIDA TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Florida State Housing
Financing Authority,
Homeowner Mortgage Project,
Ser 7, RB, AMT, 5.200%,
01/01/31, Callable 07/01/09
@ 100, FSA 190 191
Greater Orlando Aviation
Authority, Airport
Facilities, RB, AMT, 5.500%,
10/01/17, FGIC 1,810 1,974
Hillsborough County Community
Improvement Tax, RB, 5.000%,
11/01/25, Callable 11/01/13
@ 101, AMBAC 2,345 2,451
Hillsborough County Industrial
Development Authority,
University Community
Hospital Project, RB,
6.500%, 08/15/19, MBIA 145 173
Jacksonville Electric
Authority, Electrical
Systems Project, Ser 3-A,
RB, 5.250%, 10/01/13,
Callable 10/01/07 @ 101 1,000 1,034
Jacksonville Health Facilities
Authority, Charity
Obligation Group, Ser C, RB,
5.750%, 08/15/13,
Prerefunded 08/15/11 @ 101 3,090 3,312
Jacksonville Sales Tax, RB,
5.500%, 10/01/13, Callable
10/01/11 @ 100, AMBAC 1,435 1,548
Jacksonville Sales Tax, RB,
5.500%, 10/01/14, Callable
10/01/11 @ 100, AMBAC 1,200 1,291
Jacksonville Sales Tax, RB,
5.500%, 10/01/15, Callable
10/01/11 @ 100, AMBAC 1,550 1,668
JEA Electric System, Ser-3-A,
RB, 5.500%, 10/01/41,
Prerefunded 10/01/07 @ 100 4,500 4,626
JEA Water & Sewer Systems,
Second Crossover, RB,
5.000%, 10/01/24,
Callable 10/01/14 @ 100,
MBIA 2,000 2,086
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Lee County Industrial
Development Authority,
Bonita Springs Utilities
Project, RB, AMT, 5.750%,
11/01/10, Callable 11/01/06
@ 101, MBIA 1,480 1,509
Lee County Memorial Health
Systems Hospital, Ser A, RB,
5.750%, 04/01/15, Callable
04/01/12 @ 100, FSA 1,000 1,095
Lee County Transportation
Facility Authority, Ser A,
RB, 5.500%, 10/01/13,
Callable 10/01/11 @ 100,
AMBAC 2,000 2,157
Lee County Transportation
Facility Authority, Ser A,
RB, 5.000%, 10/01/27,
Callable 10/01/14 @ 100,
AMBAC 6,000 6,253
Manatee County Improvement
Project, RB, 5.000%,
10/01/23, Callable 10/01/14
@ 100, FGIC 2,095 2,195
Miami Parking Facilities
Authority, RB, 5.250%,
10/01/15, MBIA 1,000 1,083
Miami-Dade County School
Board, Ser A, COP, 5.000%,
11/01/20, Callable 11/01/16
@ 100, AMBAC 3,830 4,042
Orange County Health
Facilities Authority, Ser C,
RB, 6.250%, 10/01/16, MBIA 4,855 5,678
Orange County School Board,
Ser A, COP, 5.500%,
08/01/18, Callable 08/01/12
@ 100, MBIA 2,335 2,551
Orange County Tourist
Development Tax, RB, 5.500%,
10/01/11, Callable 10/1/09 @
100, AMBAC 3,030 3,209
Osceola County Tourist
Development Tax Authority,
Ser A, RB, 5.500%, 10/01/15,
Callable 10/01/12 @ 100,
FGIC 1,000 1,087
</Table>
See Notes to Financial Statements.
58
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
FLORIDA TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Palm Beach County Criminal
Justice Facility, RB,
5.000%, 06/01/15 1,865 1,997
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.375%, 06/01/13,
Callable 06/01/11 @ 100 2,260 2,417
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.375%, 06/01/14,
Callable 06/01/11 @ 100 1,050 1,124
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.500%, 06/01/16,
Callable 06/01/11 @ 100 1,200 1,291
Palm Beach County School Board
Authority, Ser C, COP,
5.500%, 08/01/14, Callable
08/01/12 @ 100, FSA 2,735 2,974
Palm Beach County, Waterfront
Access Projects, GO, 5.000%,
08/01/23, Callable 08/01/16
@ 100 2,000 2,119
Pensacola Airport Authority,
Ser A, RB, AMT, 6.250%,
10/01/09, AMBAC 505 543
Pensacola Airport Authority,
Ser A, RB, AMT, 6.000%,
10/01/12, Callable 10/01/08
@ 102, MBIA 1,075 1,141
Plant City Utility Systems
Authority, Refunding &
Improvements Project, RB,
6.000%, 10/01/15, MBIA 400 450
Polk County School District
Sales Tax Authority, RB,
5.250%, 10/01/15, Callable
10/01/14 @ 100, FSA 2,000 2,167
Polk County Utility Systems
Authority, RB, 6.000%,
10/01/08, FGIC 1,430 1,477
Tampa Guaranteed Entitlement
Authority, RB, 6.000%,
10/01/18, AMBAC 500 564
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Tampa Sales Tax Authority, Ser
A, RB, 5.375%, 10/01/14,
Callable 10/01/11 @ 101,
AMBAC 1,640 1,772
--------
123,325
--------
ILLINOIS (3.1%)
Du Page County Transportation,
RB, 5.750%, 01/01/18,
Prerefunded 07/01/11 @ 100,
FSA 5,000 5,472
--------
PUERTO RICO (20.3%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, RB, 5.250%,
07/01/15, Callable 07/01/13
@ 100, FGIC 5,860 6,334
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser G, RB,
5.250%, 07/01/15, Callable
07/01/13 @ 100, FGIC 3,000 3,243
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser I, RB,
5.000%, 07/01/23, Callable
07/01/14 @ 100, FGIC 3,000 3,149
Puerto Rico Commonwealth
Infrastructure Financing
Authority, Special Tax, Ser
C, RB, 5.500%, 07/01/15,
AMBAC 1,000 1,109
Puerto Rico Commonwealth
Infrastructure Financing
Authority, Special Tax, Ser
C, RB, 5.500%, 07/01/17,
AMBAC 12,450 13,877
Puerto Rico Commonwealth
Municipal Finance Agency,
Ser A, RB, 5.250%, 08/01/14,
Callable 08/01/12 @ 100, FSA 6,965 7,489
Puerto Rico Commonwealth
Municipal Finance Agency,
Ser A, RB, 5.250%, 08/01/16,
Callable 08/01/12 @ 100, FSA 1,020 1,095
--------
36,296
--------
</Table>
See Notes to Financial Statements.
59
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
FLORIDA TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TEXAS (1.2%)
University of Houston, RB,
5.500%, 02/15/30,
Prerefunded 02/15/10 @ 100,
MBIA 2,000 2,127
--------
Total Municipal Bonds (Cost
$172,193) 172,719
--------
MONEY MARKET FUNDS (2.7%)
Federated Tax-Free Obligations
Fund 4,846,110 4,847
SEI Tax Exempt Trust,
Institutional Tax Free Fund
(c) 462 0
--------
Total Money Market Funds (Cost
$4,847) 4,847
--------
Total Investments (Cost
$177,040) (a) -- 99.1% 177,566
Other assets in excess of
liabilities -- 0.9% 1,635
--------
Net Assets -- 100.0% $179,201
========
</Table>
- ---------------
(a)Cost for federal income tax and financial reporting
purposes is the same. Unrealized appreciation/(depreciation) is as follows
(amounts in thousands):
<Table>
Unrealized Appreciation................... $ 1,734
Unrealized Depreciation................... (1,208)
-------
Unrealized Appreciation (Depreciation).... $ 526
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Market value is less than one thousand dollars.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
60
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
GEORGIA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (96.4%)
GEORGIA (91.9%)
Association County
Commissioners of Georgia
Leasing Program, Georgia
Public Purpose Project, COP,
5.250%, 04/01/21, Callable
04/01/14 @ 102 2,680 2,887
Athens Housing Authority,
Student Housing Lease
Project, RB, 5.250%,
12/01/21, Callable 12/01/12
@ 100, AMBAC 1,000 1,055
Atlanta Airport Passenger
Facility Charge, Ser J, RB,
5.000%, 01/01/34, Callable
01/01/15 @ 100, FSA 7,500 7,708
Atlanta Airport Project, Ser
A, RB, AMT, 5.375%,
01/01/19, Callable 07/01/14
@ 100, FSA 5,000 5,326
Atlanta Development Authority
Student Housing, Ser A,
5.000%, 09/01/30, Callable
09/01/15 @ 100, XLCA 2,600 2,701
Atlanta Water & Sewer, RB,
5.250%, 01/01/27,
Prerefunded 01/01/07 @ 101,
FGIC 2,000 2,045
Augusta Water & Sewer
Authority, RB, 5.250%,
10/01/34, Callable 10/01/14
@ 100, FSA 2,000 2,125
Barrow County, GO, 4.500%,
10/01/11, FGIC 1,255 1,300
Bibb County School District,
GO, 5.000%, 04/01/09, LOC:
St Aid Withholding 3,700 3,843
Brunswick Water & Sewer,
Refunding & Improvement
Project, RB, 6.100%,
10/01/14, MBIA 1,000 1,132
Burke County Development
Authority Pollution Control,
Vogtle Project, RB, 3.200%,
10/01/32 (b) 1,607 1,607
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA--CONTINUED
Burke County Development
Authority, Pollution
Control, Vogtle Project, RB,
3.290%, 10/01/32 (b) 6,395 6,395
Carroll County Water
Authority, Water & Sewer,
RB, 5.250%, 07/01/22,
Callable 07/01/15 @ 100, FSA 1,000 1,082
Carrollton Payroll Development
Authority, UWG Campus
Center, RB, 5.250%,
08/01/27, Callable 8/01/14 @
100, MBIA 1,650 1,755
Central Valdosta Development
Authority, Lowndes County
Judicial Project, RB,
5.250%, 06/01/21, Callable
06/01/13 @ 102 1,885 2,020
Clarke County Hospital
Authority, Athens Regional
Medical Center Project, RB,
5.375%, 01/01/07, MBIA 1,425 1,444
Cobb County Development
Authority, Kennesaw State
University Project, RB,
5.000%, 07/15/29, Callable
07/15/14 @ 100, MBIA 2,250 2,340
Cobb County Development
Authority, Kennesaw State
University Project, Ser A,
RB, 5.000%, 07/15/29,
Callable 07/15/14 @ 100,
MBIA 2,000 2,073
Cobb County Development
Authority, Solid Waste
Disposal, Georgia Waste
Management Project, Ser A.
RB, AMT, 5.000%, 04/01/33,
Callable 04/01/16 @ 101 1,000 991
Cobb-Marietta County Coliseum
& Exhibit Hall Project, RB,
5.500%, 10/01/12, MBIA 940 1,010
</Table>
See Notes to Financial Statements.
61
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
GEORGIA TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA--CONTINUED
College Park Business &
Industrial Development
Authority, Civic Center
Project, RB, 5.500%,
09/01/11, Prerefunded
09/01/10 @ 102, AMBAC 1,690 1,842
Columbus, Sales Tax, GO,
5.000%, 07/01/08 1,000 1,031
Coweta County Development
Authority, Newnan Water,
Sewer & Light Commission,
RB, 5.000%, 07/01/25,
Callable 07/01/15 @ 100,
MBIA 1,000 1,044
Dalton Utilities, RB, 6.000%,
01/01/08, MBIA 3,240 3,369
Dekalb County Public Safety &
Judicial Facilities
Authority, Public Safety &
Judicial Facility Project,
RB, 5.000%, 12/01/29,
Callable 01/01/14 @ 101 1,000 1,040
Douglasville-Douglas County
Water & Sewer Authority, RB,
5.625%, 06/01/15, Callable
12/01/15 @ 100, AMBAC 1,390 1,505
Douglasville-Douglas County
Water & Sewer Authority, RB,
5.000%, 06/01/28, Callable
12/01/15 @ 100, MBIA 2,000 2,086
Forsyth County Hospital
Authority, Baptist Health
Care System Project, RB,
6.375%, 10/01/28, ETM 1,000 1,217
Fulton County Development
Authority, Molecular Science
Building Project, RB,
5.250%, 05/01/22, Callable
05/01/14 @ 100, MBIA 2,370 2,535
Fulton County Development
Authority, Molecular Science
Building Project, RB,
5.250%, 05/01/27, Callable
05/01/14 @ 100, MBIA 3,375 3,598
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA--CONTINUED
Fulton County Water & Sewer,
RB, 5.000%, 01/01/24,
Callable 01/01/14 @ 100,
FGIC 2,000 2,087
Georgia Municipal Electric
Authority, RB, 8.000%,
01/01/15, Callable 05/16/06
@ 100, ETM 1,900 2,402
Georgia State Private College
& Universities Facilities
Authority, Mercer University
Project, RB, 6.400%,
11/01/11, MBIA, ETM 1,675 1,827
Gwinnett County Development
Authority, Public Schools
Project, COP, 5.250%,
01/01/21, Callable 01/01/14
@ 100, MBIA 2,910 3,092
Gwinnett County Hospital
Authority, Gwinnett Hospital
Systems Project, Ser B, RB,
5.000%, 10/01/24, Callable
10/01/14 @ 100 1,250 1,299
Gwinnett County Public Schools
Project, COP, 5.250%,
01/01/25, Callable 01/01/14
@ 100, MBIA 1,500 1,589
Gwinnett County School
District, Ser B, GO, 6.400%,
02/01/07 1,500 1,535
Habersham County School
District, GO, 4.500%,
04/01/12, MBIA 1,335 1,382
Henry County Hospital
Authority, Henry Medical
Center Project, RB, 5.500%,
07/01/08, Prerefunded
07/01/07 @ 102, AMBAC 1,640 1,710
Henry County Water & Sewer,
RB, 6.150%, 02/01/20, AMBAC 2,100 2,508
Metropolitan Atlanta Rapid
Transit Authority, Ser E,
RB, 7.000%, 07/01/11, ETM 3,595 4,035
Metropolitan Atlanta Rapid
Transit Authority, Ser N,
RB, 6.000%, 07/01/07 2,090 2,151
</Table>
See Notes to Financial Statements.
62
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
GEORGIA TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA--CONTINUED
Milledgeville-Baldwin County
Development Authority,
Georgia College & State
University Foundation, RB,
6.000%, 09/01/33, Callable
09/01/14 @ 101 2,355 2,547
Municipal Electric Authority
of Georgia, Combustion, Ser
A, RB, 5.000%, 11/01/24,
Callable 11/01/07 @ 100 2,000 2,033
Newnan Hospital Authority,
Newnan Hospital Project, RB,
5.500%, 01/01/16, Callable
01/01/13 @100, MBIA 2,435 2,619
Newnan Hospital Authority,
Newnan Hospital Project, RB,
5.500%, 01/01/17, Callable
01/01/13 @ 100, MBIA 2,570 2,763
Oconee County Industrial
Development Authority, OIIT
Project, RB, 5.250%,
07/01/23, Callable 07/01/13
@ 100 1,295 1,363
Paulding County School
District, GO, 6.000%,
02/01/10, MBIA 1,000 1,081
Paulding County School
District, Ser A, GO, 6.625%,
02/01/07 1,000 1,025
Paulding County School
District, Ser A, GO, 6.625%,
02/01/08 525 552
Rockdale County Water & Sewer
Authority, RB, 5.000%,
07/01/29, Callable 07/01/15
@ 100, FSA 2,000 2,084
Savannah Economic Development
Authority, AASU Compass
Point LLC Project, RB,,
5.000%, 07/01/29, Callable
07/01/15 @ 100, XLCA 1,695 1,758
Upper Oconee Basin Water
Authority, RB, 5.000%,
07/01/26, Callable 07/01/15
@ 100, MBIA 2,000 2,093
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA--CONTINUED
Valdosta & Lowndes County
Hospital Authority, South
Georgia Medical Center
Project, RB, 5.250%,
10/01/27, Callable 10/01/12
@ 101, AMBAC 1,110 1,171
Vidalia Water & Sewer, RB,
6.000%, 07/01/07, ETM 605 623
Walker, Dade & Catoosa
Counties Hutcheson Medical
Project, Ser A, RB, 5.500%,
10/01/08, Callable 10/01/07
@ 102, FSA 1,370 1,429
--------
118,864
--------
GUAM (1.0%)
Guam International Airport
Authority, Ser A, RB, AMT,
5.000%, 10/01/06, MBIA 1,250 1,259
--------
PUERTO RICO (3.5%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 2,080 2,087
Puerto Rico Municipal Finance
Agency, Ser A, GO, 5.000%,
08/01/30, Callable 08/01/15
@ 100, FSA 2,300 2,405
--------
4,492
--------
Total Municipal Bonds (Cost
$122,142) 124,615
--------
MONEY MARKET FUNDS (2.5%)
Federated Tax-Free Obligations
Fund 2,778,706 2,779
SEI Tax Exempt Trust,
Institutional Tax Free Fund 397,171 397
--------
Total Money Market Funds (Cost
$3,176) 3,176
--------
Total Investments (Cost
$125,318) (a) -- 98.9% 127,791
Other assets in excess of
liabilities -- 1.1% 1,416
--------
Net Assets -- 100.0% $129,207
========
</Table>
See Notes to Financial Statements.
63
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
GEORGIA TAX-EXEMPT BOND FUND -- CONCLUDED
- ---------------
(a)Cost for federal income tax and financial reporting
purposes is the same. Unrealized appreciation/ (depreciation) is as follows
(amounts in thousands):
<Table>
Unrealized Appreciation................... $2,761
Unrealized Depreciation................... (288)
------
Unrealized Appreciation (Depreciation).... $2,473
======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LLC -- Limited Liability Company
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
XLCA -- Security insured by XL Capital Assurance, Inc.
See Notes to Financial Statements.
64
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
BANK LOANS (4.7%)
COMPUTERS (0.6%)
Stratus Technologies, Inc.,
13.830%, 03/15/12 (b) (d) 450 437
--------
ENERGY (0.6%)
Plum Point Associates LLC,
8.044%, 02/21/14 (b) (d) 363 365
Plum Point Associates LLC,
8.167%, 02/21/14 (b) (d) 87 88
--------
453
--------
TELECOMMUNICATIONS (3.5%)
Charter Communications
Operating LLC, 0.000%,
04/27/11 (b) (d) (h) 448 451
Qwest Corp., 9.503%, 06/30/07
(b) (d) 2,023 2,073
--------
2,524
--------
Total Bank Loans
(Cost $3,432) 3,414
--------
CORPORATE BONDS (90.5%)
ADVERTISING (0.4%)
R.H. Donnelley Corp.,
10.875%, 12/15/12, Callable
12/15/07 @ 105.44 250 277
--------
AUTO PARTS & EQUIPMENT (2.8%)
Goodyear Tire & Rubber Co.
(The), 9.000%, 07/01/15,
Callable 07/01/10 @ 104.50 2,000 2,030
--------
BUILDING MATERIALS (3.6%)
Nortek, Inc., 8.500%,
09/01/14, Callable 09/01/09
@ 104.25 1,040 1,058
U.S. Concrete, Inc., 8.375%,
04/01/14, Callable 04/01/09
@ 104.188 1,500 1,545
--------
2,603
--------
CHEMICALS (7.0%)
Equistar Chemical Funding
Corp., 10.125%, 09/01/08 1,900 2,019
Huntsman International LLC,
11.625%, 10/15/10, Callable
10/15/07 @ 105.81 250 283
IMC Global, Inc., Ser B,
11.250%, 06/01/11, Callable
06/01/06 @ 105.625 15 16
Ineos Group Holdings PLC,
8.500%, 02/15/16, Callable
02/15/11 @ 104.25 (d) 1,555 1,477
Lyondell Chemical Co., Ser A,
9.625%, 05/01/07 100 103
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
<->CHEMICALS--CONTINUED
Rockwood Specialties Group,
Inc., 7.500%, 11/15/14,
Callable 11/15/09 @ 103.75
(e) 1,250 1,256
--------
5,154
--------
COMMERCIAL SERVICES (1.4%)
Ashtead Holdings PLC, 8.625%,
08/01/15, Callable 08/01/10
@ 104.31 (d) 1,000 1,040
--------
COMPUTERS (3.5%)
Activant Solutions, Inc.,
10.500%, 06/15/11, Callable
06/15/07 @ 105.25 1,425 1,578
Sungard Data Systems, Inc.,
10.250%, 08/15/15, Callable
08/15/10 @ 105.13 (d) (e) 910 958
--------
2,536
--------
DIVERSIFIED FINANCIAL SERVICES (2.7%)
CCM Merger, Inc., 8.000%,
08/01/13, Callable 08/01/09
@ 104 (d) (e) 95 95
Galaxy Entertainment Finance
Co. Ltd., 9.875%, 12/15/12,
Callable 12/15/09 @ 104.94
(d) 100 104
General Motors Acceptance
Corp., 6.875%, 09/15/11 1,880 1,752
--------
1,951
--------
DIVERSIFIED OPERATIONS (3.0%)
Leucadia National Corp.,
7.000%, 08/15/13 500 501
Nell AF SARL, 8.375%,
08/15/15, Callable 08/15/10
@ 104.19 (d) (e) 1,675 1,663
--------
2,164
--------
ELECTRIC (10.5%)
AES Corp. (The), 9.500%,
06/01/09 1,030 1,109
Aquila, Inc., 14.875%,
07/01/12 (e) 1,420 1,920
Edison Mission Energy,
10.000%, 08/15/08 500 535
FPL Energy National Wind,
6.125%, 03/25/19 (d) 235 229
Mirant Americas Generation
LLC, 8.300%, 05/01/11 380 393
Mirant Americas Generation
LLC, 9.125%, 05/01/31 100 107
</Table>
See Notes to Financial Statements.
65
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
<->ELECTRIC--CONTINUED
Mission Energy Holdings Co.,
13.500%, 07/15/08 1,050 1,204
NRG Energy, Inc., 7.250%,
02/01/14, Callable 02/01/09
@ 107.25 780 793
PSEG Energy Holdings LLC,
10.000%, 10/01/09 250 277
Sierra Pacific Resources,
7.803%, 06/15/12, Callable
06/15/09 @ 103.90 160 168
Sithe/Independence Funding
Corp., Ser A, 9.000%,
12/30/13 750 810
Tenaska Alabama Partners LP,
7.000%, 06/30/21 (d) 197 198
--------
7,743
--------
ENTERTAINMENT (1.6%)
Seneca Gaming Corp., Ser B,
7.250%, 05/01/12, Callable
05/01/08 @ 103.63 90 91
Six Flags, Inc., 9.625%,
06/01/14, Callable 06/01/09
@ 104.81 1,095 1,103
--------
1,194
--------
FOOD (4.2%)
Pinnacle Foods Holding Corp.,
8.250%, 12/01/13, Callable
12/01/08 @ 104.12 2,125 2,104
Stater Brothers Holdings,
Inc., 8.125%, 06/15/12,
Callable 06/15/08 @ 104.06
(e) 1,000 999
--------
3,103
--------
FOREST PRODUCTS & PAPER (3.5%)
Appleton Papers, Inc., Ser B,
9.750%, 06/15/14, Callable
06/15/09 @ 104.88 1,950 1,935
Boise Cascade LLC, 7.475%,
10/15/12, Callable 10/15/06
@ 101 (b) 600 608
--------
2,543
--------
HEALTHCARE -- PRODUCTS (3.4%)
Accellent, Inc., 10.500%,
12/01/13, Callable 12/01/09
@ 105.25 940 1,003
Universal Hospital Services,
Inc., 10.125%, 11/01/11,
Callable 11/01/07 @ 105.06 1,450 1,505
--------
2,508
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTHCARE -- SERVICES (5.5%)
Skilled Healthcare Group,
11.000%, 01/15/14, Callable
01/15/10 @ 105.50 (d) 1,035 1,076
Tenet Healthcare Corp.,
9.875%, 07/01/14 1,115 1,129
US Oncology Holdings, Inc.,
10.320%, 03/15/15, Callable
03/15/07 @ 102 (b) 735 737
US Oncology, Inc., 10.750%,
08/15/14, Callable 03/15/07
@ 102 1,000 1,093
--------
4,035
--------
HOUSEHOLD PRODUCTS/WARES (1.4%)
Visant Holding Corp., 8.750%,
12/01/13, Callable 12/01/08
@ 106.563 (d) 1,100 1,056
--------
INSURANCE (0.7%)
Markel Capital Trust I, Ser
B, 8.710%, 01/01/46,
Callable 01/01/07 @ 104.36 500 522
--------
LODGING (2.0%)
Mandalay Resort Group, Ser B,
10.250%, 08/01/07 250 263
MGM Mirage, Inc., 9.750%,
06/01/07 1,130 1,177
--------
1,440
--------
MACHINERY DIVERSIFIED (3.9%)
Chart Industries, Inc.,
9.125%, 10/15/15, Callable
10/15/10 @ 104.56 (d) 1,250 1,291
NMGH Holding Co., 10.000%,
05/15/09, Callable 05/15/06
@ 105 1,500 1,575
--------
2,866
--------
MEDIA (12.7%)
Cablevision Systems Corp.,
Ser B, 8.000%, 04/15/12 (e) 910 887
CCH I LLC, 11.000%, 10/01/15,
Callable 10/01/10 @ 105.50 1,230 1,022
Dex Media, Inc., 9.540%,
11/15/13, Callable 11/15/08
@ 104.50 (c) (g) 915 773
EchoStar DBS Corp., 7.125%,
02/01/16, Callable 10/01/06
@ 100 (d) 565 556
Houghton Mifflin Co.,
10.432%, 10/15/13 (c) (e)
(g) 1,280 1,091
</Table>
See Notes to Financial Statements.
66
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
<->MEDIA--CONTINUED
Kabel Deutschland Gmbh,
10.625%, 07/01/14, Callable
07/01/09 @ 105.31 (d) 1,800 1,921
LIN Television Corp., Ser B,
6.500%, 05/15/13, Callable
05/15/08 @ 103.25 250 235
Mediacom LLC, 9.500%,
01/15/13, Callable 01/15/07
@ 103.167 (e) 500 495
Morris Publishing Group LLC,
7.000%, 08/01/13, Callable
08/01/08 @ 103.50 1,105 1,043
Quebecor Media, Inc., 7.750%,
03/15/16, Callable 03/15/11
@ 103.875 (d) 165 170
Quebecor World Capital Corp.,
8.750%, 03/15/16, Callable
03/15/11 @ 104.375 (d) 110 107
Sinclair Broadcast Group,
Inc., 8.750%, 12/15/11,
Callable 12/15/06 @ 104.375 960 1,009
Sinclair Broadcast Group,
Inc., 8.000%, 03/15/12,
Callable 03/15/07 @ 104 30 31
--------
9,340
--------
MISCELLANEOUS MANUFACTURER (2.3%)
Clarke American Corp.,
11.750%, 12/15/13, Callable
12/15/09 @ 105.88 (d) 1,390 1,414
Koppers, Inc., 9.875%,
10/15/13, Callable 10/15/08
@ 104.94 239 262
--------
1,676
--------
OIL & GAS (0.6%)
Compagnie Gererale de
Geophysique SA, 7.500%,
05/15/15, Callable 05/15/10
@ 103.75 150 155
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @ 103.813
(d) 115 115
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @ 103.813 155 155
--------
425
--------
PACKAGING & CONTAINERS (0.8%)
Ball Corp., 6.875%, 12/15/12,
Callable 12/15/07 @ 103.44 100 102
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
<->PACKAGING & CONTAINERS--
CONTINUED
Crown Cork & Seal Co., Inc.,
7.375%, 12/15/26 500 465
--------
567
--------
PIPELINES (0.2%)
Copano Energy LLC, 8.125%,
03/01/16, Callable 03/01/11
@ 104.0625 (d) 40 41
Targa Resources, Inc.,
8.500%, 11/01/13, Callable
11/01/09 @ 104.25 (d) (e) 95 99
--------
140
--------
REAL ESTATE (1.1%)
American Real Estate Partners
LP, 7.125%, 02/15/13,
Callable 02/15/09 @ 103.56 345 340
CB Richard Ellis Group, Inc.,
9.750%, 05/15/10, Callable
05/15/07 @ 104.88 413 447
--------
787
--------
REITS (0.5%)
Host Marriott Corp., Ser G,
9.250%, 10/01/07 315 330
Ventas Realty LP, 6.500%,
06/01/16, Callable 06/01/11
@ 103.25 (d) 55 55
--------
385
--------
RETAIL (1.3%)
Rite Aid Corp., 7.500%,
01/15/15, Callable 01/15/10
@ 103.75 1,000 970
--------
SEMICONDUCTORS (4.4%)
Avago Technologies Finance
Ltd., 10.320%, 06/01/13,
Callable 12/01/07 @ 102 (b)
(d) 1,025 1,071
Avago Technologies Finance
Ltd., 11.875%, 12/01/15,
Callable 12/01/10 @ 105.938
(d) (e) 1,005 1,090
Spansion LLC, 11.250%,
01/15/16, Callable 01/15/11
@ 105.62 (d) 1,080 1,037
--------
3,198
--------
SOFTWARE (1.5%)
SERENA Software, Inc.,
10.375%, 03/15/16, Callable
03/15/11 @ 105.188 (d) 1,070 1,124
--------
</Table>
See Notes to Financial Statements.
67
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TELECOMMUNICATIONS (4.0%)
PanAmSat Holdings Corp.,
9.000%, 08/15/14, Callable
08/15/09 @ 104.50 1,600 1,683
Rogers Wireless, Inc.,
7.250%, 12/15/12 185 195
Valor Telecommunications
Enterprise LLC, 7.750%,
02/15/15, Callable 02/15/10
@ 103.88 1,000 1,048
--------
2,926
--------
Total Corporate Bonds (Cost
$65,339) 66,303
--------
PREFERRED STOCK (1.6%)
RETAIL (1.6%)
Rite Aid Corp. 50,000 1,153
--------
Total Preferred Stock (Cost
$1,255) 1,153
--------
SHORT-TERM INVESTMENTS (13.5%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (f) 9,887,072 9,887
--------
Total Short-Term Investments
(Cost $9,887) 9,887
--------
REPURCHASE AGREEMENT (4.0%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price $2,910,408
(collateralized by U.S.
Government Agencies,
5.500%, due 01/01/35; total
market value $2,969,221) 2,909 2,909
--------
Total Repurchase Agreement
(Cost $2,909) 2,909
--------
Total Investments (Cost
$82,822) (a) -- 114.3% 83,666
Liabilities in excess of other
assets -- (14.3)% (10,437)
--------
Net Assets -- 100.0% $ 73,229
========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $82,793 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $1,434
Unrealized Depreciation................... (562)
------
Unrealized Appreciation (Depreciation).... $ 872
======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $9,422.
(f)This security was purchased with cash collateral held
from securities lending.
(g)Step bond.
(h)This security has not settled as of March 31, 2006 and
thus does not have a rate in effect. The security does not have a stated
settlement date and will receive a rate upon settling with the custodian.
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
68
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH QUALITY BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
ASSET BACKED SECURITIES (3.1%)
AUTOMOBILE ABS (2.0%)
Chase Manhattan Auto Owner
Trust, Ser 2003-B, Cl A4,
2.570%, 02/16/10 550 538
Daimler Chrysler Auto Trust, Ser
2003-B, Cl A4, 2.860%,
03/09/09 405 397
-------
935
-------
CREDIT CARD ABS (1.1%)
Citibank Credit Card Master
Trust I, Ser 1998-2, Cl A,
6.050%, 01/15/10 550 559
-------
Total Asset Backed Securities
(Cost $1,498) 1,494
-------
CORPORATE BONDS (14.4%)
AEROSPACE/DEFENSE (0.3%)
United Technologies Corp.,
4.875%, 05/01/15 165 158
-------
BANKS (1.0%)
Bank of America Corp., 7.400%,
01/15/11 440 476
-------
BIOTECHNOLOGY (0.6%)
Amgen, Inc., 4.000%, 11/18/09 315 301
-------
COSMETICS/PERSONAL CARE (0.5%)
Avon Products, Inc., 5.125%,
01/15/11 230 226
-------
DIVERSIFIED FINANCIAL SERVICES (5.8%)
American Express Co., 3.750%,
11/20/07 550 538
Caterpillar Financial Services
Corp., 4.500%, 06/15/09 290 283
CIT Group, Inc., 5.125%,
09/30/14 195 186
Citigroup, Inc., 5.125%,
05/05/14 310 301
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 405 383
Household Finance Corp., 6.375%,
11/27/12 380 394
International Lease Finance
Corp., Ser Q, 5.250%, 01/10/13 95 92
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
JPMorgan Chase & Co., 6.625%,
03/15/12 395 415
Morgan Stanley, 5.300%, 03/01/13 320 313
-------
2,905
-------
ELECTRIC (0.3%)
Consolidated Edison Co. of New
York, Inc., 4.700%, 06/15/09 145 142
-------
INSURANCE (0.2%)
MetLife, Inc., 5.000%, 06/15/15 95 90
-------
INVESTMENT COMPANIES (0.4%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 175 183
-------
MISCELLANEOUS MANUFACTURER (2.2%)
General Electric Co., 5.000%,
02/01/13 1,095 1,065
-------
RETAIL (0.5%)
Wal-Mart Stores, Inc., 4.550%,
05/01/13 280 266
-------
TELECOMMUNICATIONS (2.6%)
AT&T, Inc., 5.100%, 09/15/14 260 247
BellSouth Corp., 5.200%,
09/15/14 135 129
Cisco Systems, Inc., 5.500%,
02/22/16 255 251
France Telecom SA, 7.750%,
03/01/11 95 104
Verizon Global Funding Corp.,
7.250%, 12/01/10 255 270
Vodafone Group PLC, 5.500%,
06/15/11 255 253
-------
1,254
-------
Total Corporate Bonds (Cost
$7,279) 7,066
-------
U.S. GOVERNMENT AGENCY MORTGAGES (8.1%)
FANNIE MAE (1.1%)
5.725%, 03/01/12 225 227
6.260%, 05/01/12 308 319
-------
546
-------
</Table>
See Notes to Financial Statements.
69
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
HIGH QUALITY BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (7.0%)
6.364%, 10/16/20 (b) 450 456
6.114%, 11/16/21 353 357
4.449%, 03/16/25 352 342
4.212%, 01/16/28 (b) 408 395
3.760%, 09/16/28 447 428
4.241%, 07/16/29 205 198
5.473%, 02/16/31 (b) 400 397
5.269%, 03/16/37 (b) 400 391
4.811%, 06/16/45 447 438
-------
3,402
-------
Total U.S. Government Agency
Mortgages (Cost $4,010) 3,948
-------
U.S. TREASURY OBLIGATIONS (73.3%)
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.5%)
1.625%, 01/15/15 2,730 2,676
-------
U.S. TREASURY NOTES (67.8%)
3.125%, 05/15/07 7,820 7,671
5.625%, 05/15/08 2,830 2,874
3.375%, 12/15/08 7,540 7,265
6.000%, 08/15/09 6,555 6,792
4.250%, 10/15/10 5,100 4,981
4.250%, 08/15/13 3,750 3,607
-------
33,190
-------
Total U.S. Treasury Obligations
(Cost $36,655) 35,866
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MONEY MARKET FUNDS (0.4%)
Federated Prime Value Money
Market Fund 171,979 172
-------
Total Money Market Funds (Cost
$172) 172
-------
Total Investments (Cost $49,614)
(a) -- 99.3% 48,546
Other assets in excess of
liabilities -- 0.7% 362
-------
Net Assets -- 100.0% $48,908
=======
</Table>
- ---------------
(a)Cost for federal income tax purposes is $49,636 (amount in
thousands). Unrealized appreciation/(depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ --
Unrealized Depreciation.................. (1,090)
-------
Unrealized Appreciation (Depreciation)... $(1,090)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
Cl -- Class
PLC -- Public Limited Company
Ser -- Series
See Notes to Financial Statements.
70
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERMEDIATE BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
ASSET BACKED SECURITIES (1.0%)
AUTOMOBILE ABS (0.8%)
Daimler Chrysler Auto Trust, Ser
2005-A, Cl A4, 3.740%,
02/08/10 410 401
Honda Auto Receivables Owner
Trust, Ser 2006-1, Cl A3,
5.070%, 02/18/10 265 264
-------
665
-------
HOME EQUITY ABS (0.2%)
Cityscape Home Equity Loan
Trust, Ser 1996-3, Cl A8,
7.650%, 09/25/25 11 11
Contimortgage Home Equity Loan
Trust, Ser 1996-2, Cl A8,
7.900%, 07/15/27 78 77
Delta Funding Home Equity Loan
Trust, Ser 1999-3, Cl A1F,
7.462%, 09/15/29 8 8
New Century Home Equity Loan
Trust, Ser 1999-NCB, Cl A7,
7.540%, 06/25/29 6 6
Soundview Home Equity Loan
Trust,Ser 2001-1, Cl A,
6.265%, 04/15/31 17 17
-------
119
-------
Total Asset Backed Securities
(Cost $788) 784
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (3.0%)
Banc of America Commercial
Mortgage, Inc., Ser 2004-4, Cl
A3, 4.128%, 07/10/42 355 342
Citigroup/Deutsche Bank
Commercial Mortgage Trust, Ser
2005-CD1, Cl A4, 5.225%,
07/15/44 (b) 415 407
Citigroup/Deutsche Bank
Commercial Mortgage Trust, Ser
2006-CD2, Cl A4, 5.545%,
01/15/46 275 271
GE Capital Commercial Mortgage
Corp., Ser 2006-C1, Cl A4,
5.519%, 03/10/44 (b) 360 355
GS Mortgage Securities Corp. II,
Ser 2006-GG6, Cl A2, 5.506%,
04/10/38 (b) 535 537
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
Wachovia Bank Commercial
Mortgage Trust, Ser 2006-C23,
Cl A4, 5.418%, 01/15/45 (b) 455 448
-------
Total Collateralized Mortgage
Obligations (Cost $2,390) 2,360
-------
CORPORATE BONDS (17.0%)
AEROSPACE/DEFENSE (0.4%)
United Technologies Corp.,
4.875%, 05/01/15 315 301
-------
AIRLINES (0.2%)
Southwest Airlines Co., 5.125%,
03/01/17 180 167
-------
BANKS (1.1%)
Bank of America Corp., 7.400%,
01/15/11 435 470
Wells Fargo & Co., 5.125%,
02/15/07 360 360
-------
830
-------
COMMERCIAL SERVICES (0.1%)
ERAC USA Finance Co., 5.600%,
05/01/15 (c) 120 117
-------
COSMETICS/PERSONAL CARE (0.6%)
Avon Products, Inc., 5.125%,
01/15/11 445 437
-------
DIVERSIFIED FINANCIAL SERVICES (6.3%)
CIT Group, Inc., 5.125%,
09/30/14 335 320
Citigroup, Inc., 5.125%,
05/05/14 370 359
Fund American Cos., Inc.,
5.875%, 05/15/13 440 432
General Electric Capital Corp.,
4.250%, 01/15/08 950 934
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 400 378
Household Finance Corp., 4.125%,
12/15/08 735 713
International Lease Finance
Corp., Ser Q, 5.250%, 01/10/13 175 170
John Deere Capital Corp.,
3.900%, 01/15/08 115 112
JPMorgan Chase & Co., 6.625%,
03/15/12 425 447
Lazard Group LLC, 7.125%,
05/15/15 545 566
</Table>
See Notes to Financial Statements.
71
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERMEDIATE BOND FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Morgan Stanley, 5.300%, 03/01/13 420 411
SLM Corp., 5.625%, 04/10/07 115 115
-------
4,957
-------
ELECTRIC (1.1%)
Carolina Power & Light, Inc.,
5.250%, 12/15/15 390 377
Exelon Corp., 4.900%, 06/15/15 495 460
Northern States Power Co.,
2.875%, 08/01/06 60 60
-------
897
-------
ENTERTAINMENT (0.1%)
GTECH Holdings Corp., 4.750%,
10/15/10 115 112
-------
INSURANCE (0.2%)
MetLife, Inc., 5.000%, 06/15/15 165 157
-------
INVESTMENT COMPANIES (0.3%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 215 225
-------
MEDIA (0.6%)
News America Holdings, Inc.,
9.250%, 02/01/13 295 348
Time Warner, Inc., 9.125%,
01/15/13 95 110
-------
458
-------
MISCELLANEOUS MANUFACTURER (0.3%)
General Electric Co., 5.000%,
02/01/13 245 238
-------
OIL & GAS (0.4%)
Enterprise Products Operating
LP, Ser B, 5.600%, 10/15/14 325 315
-------
PHARMACEUTICALS (0.2%)
Teva Pharmaceutical Finance LLC,
5.550%, 02/01/16 125 121
-------
PIPELINES (0.7%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%, 04/01/13 295 329
Kinder Morgan, Inc., 5.700%,
01/05/16 260 253
-------
582
-------
RETAIL (1.0%)
Federated Department Stores,
7.450%, 07/15/17 70 78
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
RETAIL--CONTINUED
Woolworths Ltd., 5.550%,
11/15/15 (c) 720 702
-------
780
-------
TELECOMMUNICATIONS (3.4%)
AT&T, Inc., 5.100%, 09/15/14 350 332
BellSouth Corp., 5.200%,
09/15/14 250 239
Cisco Systems, Inc., 5.500%,
02/22/16 425 419
Comcast Corp., 4.950%, 06/15/16 365 333
Telecom Italia Capital SA,
5.250%, 10/01/15 405 377
Verizon Global Funding Corp.,
7.250%, 12/01/10 355 377
Vodafone Group PLC, 5.500%,
06/15/11 560 554
-------
2,631
-------
Total Corporate Bonds (Cost
$13,680) 13,325
-------
U.S. GOVERNMENT AGENCY MORTGAGES (0.0%)
FREDDIE MAC (0.0%)
6.500%, 08/01/08 29 29
-------
Total U.S. Government Agency
Mortgages (Cost $30) 29
-------
U.S. TREASURY OBLIGATIONS (77.7%)
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.9%)
1.625%, 01/15/15 3,895 3,817
-------
U.S. TREASURY NOTES (72.8%)
2.250%, 04/30/06 785 783
3.125%, 05/15/07 8,795 8,628
4.625%, 02/29/08 4,480 4,462
5.625%, 05/15/08 8,760 8,897
3.375%, 12/15/08 8,915 8,591
4.500%, 02/15/09 140 139
6.000%, 08/15/09 7,510 7,781
4.250%, 10/15/10 6,800 6,641
4.500%, 02/28/11 5,355 5,277
4.375%, 08/15/12 50 49
4.250%, 08/15/13 5,825 5,602
4.500%, 02/15/16 50 49
-------
56,899
-------
Total U.S. Treasury Obligations
(Cost $61,777) 60,716
-------
</Table>
See Notes to Financial Statements.
72
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INTERMEDIATE BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
REPURCHASE AGREEMENT (2.5%)
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $1,961,557
(collateralized by U.S.
Government Agencies, DN, due
12/01/34; total market value
$2,001,955) 1,961 1,961
-------
Total Repurchase Agreement (Cost
$1,961) 1,961
-------
Total Investments (Cost $80,626)
(a) -- 101.2% 79,175
Liabilities in excess of other
assets -- (1.2)% (916)
-------
Net Assets -- 100.0% $78,259
=======
</Table>
- ---------------
(a)Cost for federal income tax purposes is $80,740 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 30
Unrealized Depreciation.................. (1,595)
-------
Unrealized Appreciation (Depreciation)... $(1,565)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
Cl -- Class
DN -- Discount Note
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
Ser -- Series
See Notes to Financial Statements.
73
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ASSET BACKED SECURITIES (1.0%)
AUTOMOBILE ABS (0.8%)
Daimler Chrysler Auto
Trust, Ser 2005-A, Cl A4,
3.740%, 02/08/10 2,700 2,633
Honda Auto Receivables
Owner Trust, Ser 2006-1,
Cl A3, 5.070%, 02/18/10 1,765 1,760
---------
4,393
---------
CREDIT CARD ABS (0.2%)
Citibank Credit Card
Issuance Trust, Ser
2008-A7, Cl A7, 4.150%,
07/07/17 1,000 915
---------
Total Asset Backed Securities
(Cost $5,314) 5,308
---------
COLLATERALIZED MORTGAGE OBLIGATIONS (3.1%)
Banc of America Commercial
Mortgage, Inc., Ser
2004-4, Cl A3, 4.128%,
07/10/42 2,375 2,289
Citigroup/Deutsche Bank
Commercial Mortgage
Trust, Ser 2005-CD1, Cl
A4, 5.225%, 07/15/44 (b) 2,995 2,936
Citigroup/Deutsche Bank
Commercial Mortgage
Trust, Ser 2006-CD2, Cl
A4, 5.545%, 01/15/46 1,785 1,761
GE Capital Commercial
Mortgage Corp., Ser
2006-C1, Cl A4, 5.519%,
03/10/44 (b) 2,450 2,417
GS Mortgage Securities
Corp. II, Ser 2006-GG6,
Cl A2, 5.506%, 04/10/38
(b) 3,650 3,657
Wachovia Bank Commercial
Mortgage Trust, Ser
2006-C23, Cl A4, 5.418%,
01/15/45 (b) 2,985 2,942
---------
Total Collateralized Mortgage
Obligations (Cost $16,205) 16,002
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CORPORATE BONDS (18.2%)
AEROSPACE/DEFENSE (0.4%)
United Technologies Corp.,
4.875%, 05/01/15 2,160 2,063
---------
AIRLINES (0.2%)
Southwest Airlines Co.,
5.125%, 03/01/17 (d) 1,255 1,163
---------
BANKS (0.6%)
Bank of America Corp.,
7.400%, 01/15/11 2,740 2,961
---------
COMMERCIAL SERVICES (0.2%)
ERAC USA Finance Co.,
5.600%, 05/01/15 (c) 1,130 1,101
---------
COSMETICS/PERSONAL CARE (0.7%)
Avon Products, Inc.,
5.125%, 01/15/11 3,470 3,409
---------
DIVERSIFIED FINANCIAL SERVICES (4.7%)
CIT Group, Inc., 5.125%,
09/30/14 2,200 2,103
Citigroup, Inc., 5.125%,
05/05/14 1,100 1,068
Citigroup, Inc., 5.850%,
12/11/34 965 948
Fund American Cos., Inc.,
5.875%,05/15/13 3,085 3,031
Goldman Sachs Group, Inc.
(The), 4.750%, 07/15/13 3,355 3,170
HSBC Holdings PLC, 7.625%,
05/17/32 1,270 1,504
International Lease Finance
Corp., Ser Q, 5.250%,
01/10/13 1,220 1,186
John Deere Capital Corp.,
3.900%, 01/15/08 640 625
JPMorgan Chase & Co.,
6.625%, 03/15/12 3,735 3,925
Lazard Group LLC, 7.125%,
05/15/15 4,005 4,160
Morgan Stanley, 5.300%,
03/01/13 2,690 2,631
---------
24,351
---------
</Table>
See Notes to Financial Statements.
74
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ELECTRIC (1.3%)
Exelon Corp., 4.900%,
06/15/15 2,385 2,215
Exelon Corp., 5.625%,
06/15/35 (d) 2,340 2,124
Pacific Gas & Electric Co.,
6.050%, 03/01/34 (d) 2,350 2,300
---------
6,639
---------
ENTERTAINMENT (0.2%)
GTECH Holdings Corp.,
4.750%, 10/15/10 1,065 1,036
---------
INSURANCE (0.1%)
Metlife, Inc., 5.700%,
06/15/35 520 490
---------
INVESTMENT COMPANIES (0.3%)
Credit Suisse First Boston
USA, Inc., 6.500%,
01/15/12 1,255 1,311
---------
MEDIA (0.7%)
Cox Communications, Inc.,
4.625%, 06/01/13 (d) 1,425 1,298
News America Holdings,
Inc., 6.200%, 12/15/34 1,215 1,138
Time Warner, Inc., 7.625%,
04/15/31 1,220 1,329
---------
3,765
---------
MINING (0.2%)
Alcan, Inc., 5.750%,
06/01/35 1,120 1,042
---------
MISCELLANEOUS MANUFACTURER (1.1%)
General Electric Co.,
5.000%, 02/01/13 6,030 5,865
---------
OIL & GAS (0.6%)
Devon Financing Corp. ULC,
7.875%, 09/30/31 1,595 1,926
Enterprise Products
Operating LP, Ser B,
5.750%, 03/01/35 1,350 1,201
---------
3,127
---------
PHARMACEUTICALS (0.3%)
Teva Pharmaceutical Finance
LLC, 5.550%, 02/01/16 885 854
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PHARMACEUTICALS--CONTINUED
Teva Pharmaceutical Finance
LLC, 6.150%, 02/01/36 575 542
---------
1,396
---------
PIPELINES (0.8%)
Centerpoint Energy
Resources Corp., Ser B,
7.875%, 04/01/13 1,540 1,716
Kinder Morgan, Inc.,
6.400%, 01/05/36 2,335 2,273
---------
3,989
---------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 595 604
---------
RETAIL (1.1%)
Federated Department
Stores, Inc., 6.900%,
04/01/29 515 535
Woolworths Ltd., 5.550%,
11/15/15 (c) 5,260 5,129
---------
5,664
---------
TELECOMMUNICATIONS (4.6%)
AT&T, Inc., 5.100%,
09/15/14 5,305 5,034
BellSouth Corp., 5.200%,
09/15/14 (d) 4,020 3,845
Cisco Systems, Inc.,
5.500%, 02/22/16 3,150 3,103
Comcast Corp., 4.950%,
06/15/16 2,190 1,996
Comcast Corp., 6.450%,
03/15/37 1,460 1,405
Telecom Italia Capital SA,
5.250%, 10/01/15 3,305 3,075
Verizon Communications,
Inc., 5.850%, 09/15/35 1,335 1,197
Vodafone Group PLC, 5.500%,
06/15/11 4,095 4,057
---------
23,712
---------
Total Corporate Bonds (Cost
$96,294) 93,688
---------
</Table>
See Notes to Financial Statements.
75
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES (5.2%)
FANNIE MAE (1.7%)
3.250%, 02/15/09 1,000 951
3.800%, 07/14/10, Callable
05/01/06 @ 100 500 474
5.125%, 01/02/14 500 489
5.500%, 11/08/16, Callable
11/08/06 @ 100 1,250 1,217
6.250%, 02/28/17, Callable
02/28/07 @ 100 600 598
6.200%, 06/13/17, Callable
06/13/07 @ 100 1,000 1,005
5.750%, 11/07/17, Callable
05/07/06 @ 100 2,500 2,441
5.100%, 06/26/18, Callable
05/01/06 @ 100 1,500 1,412
5.500%, 04/23/24, Callable
05/01/06 @ 100 250 234
---------
8,821
---------
FEDERAL HOME LOAN BANK (1.5%)
3.489%, 03/03/08 (b) 2,500 2,501
3.790%, 03/24/08, Callable
06/24/06 @ 100 (b) 2,000 1,983
4.400%, 03/30/11, Callable
04/24/06 @ 100 1,000 961
5.250%, 12/10/13, Callable
06/10/06 @ 100 1,250 1,219
5.000%, 05/08/18, Callable
05/08/06 @ 100 1,000 961
---------
7,625
---------
FREDDIE MAC (2.0%)
4.050%, 11/17/09 700 675
6.250%, 06/25/10, Callable
06/25/07 @ 100 1,000 1,012
4.650%, 08/27/10, Callable
08/27/06 @ 100 500 488
4.500%, 12/16/10 1,000 972
6.375%, 08/01/11, Callable
08/01/06 @ 100 3,000 3,003
4.650%, 10/10/13, Callable
10/10/06 @ 100 1,000 950
6.000%, 06/27/17, Callable
06/27/07 @ 100 1,000 1,002
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FREDDIE MAC--CONTINUED
5.550%, 10/30/17, Callable
04/24/06 @ 100 1,000 959
5.200%, 03/05/19, Callable
03/05/09 @ 100 1,200 1,139
---------
10,200
---------
Total U.S. Government
Agencies (Cost $27,234) 26,646
---------
U.S. GOVERNMENT AGENCY MORTGAGES (0.1%)
FREDDIE MAC (0.0%)
7.000%, 05/01/07 8 8
---------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.1%)
7.000%, 04/15/13 269 278
7.000%, 08/15/14 162 168
7.000%, 05/15/31 72 75
---------
521
---------
Total U.S. Government Agency
Mortgages (Cost $512) 529
---------
U.S. TREASURY OBLIGATIONS (71.2%)
U.S. TREASURY BONDS (9.0%)
4.500%, 02/15/36 (d) 49,150 46,117
---------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.5%)
1.625%, 01/15/15 28,875 28,299
---------
U.S. TREASURY NOTES (56.7%)
2.250%, 04/30/06 12,925 12,900
3.125%, 05/15/07 (d) 52,555 51,556
4.625%, 02/29/08 (d) 31,620 31,493
5.625%, 05/15/08 (d) 36,240 36,808
3.375%, 12/15/08 (d) 36,920 35,577
4.500%, 02/15/09 (d) 4,505 4,466
6.000%, 08/15/09 (d) 28,040 29,053
4.250%, 10/15/10 (d) 36,550 35,696
4.500%, 02/28/11 (d) 28,575 28,159
4.250%, 08/15/13 (d) 26,040 25,045
---------
290,753
---------
Total U.S. Treasury
Obligations (Cost $373,235) 365,169
---------
</Table>
See Notes to Financial Statements.
76
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
SHORT-TERM INVESTMENTS (47.3%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (e) 243,190,865 243,191
---------
Total Short-Term Investments
(Cost $243,191) 243,191
---------
REPURCHASE AGREEMENT (1.4%)
Morgan Stanley, 4.705%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$7,223,970
(collateralized by U.S.
Government Agencies;
4.581%-6.500%,
08/01/30-08/01/35; total
market value $7,463,433) 7,221 7,221
---------
Total Repurchase Agreement
(Cost $7,221) 7,221
---------
Total Investments (Cost
$769,206) (a) -- 147.5% 757,754
Liabilities in excess of
other assets -- (47.5)% (243,940)
---------
Net Assets -- 100.0% $ 513,814
=========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $768,985
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $ 492
Unrealized Depreciation................. (11,722)
--------
Unrealized Appreciation
(Depreciation)........................ $(11,230)
========
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(d)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $235,428.
(e)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
77
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (95.1%)
ALABAMA (6.1%)
Alabama Public School &
College Authority, Capital
Improvements, Ser C, RB,
5.750%, 07/01/17, Callable
07/01/09 @ 101.50 3,950 4,231
Alabama Water Pollution
Control Authority, RB,
5.750%, 08/15/12, Callable
08/15/09 @ 100, AMBAC 5,205 5,524
Auburn University, Ser A, RB,
6.000%, 06/01/16, Callable
06/01/11 @ 100, MBIA 4,060 4,457
Huntsville, Ser A, GO,
5.625%, 05/01/16, Callable
05/01/12 @ 102 2,375 2,618
Huntsville, Ser A, GO,
5.750%, 05/01/19, Callable
05/01/12 @ 102 2,800 3,113
--------
19,943
--------
ARIZONA (1.1%)
Arizona Water Infrastructure
Finance Authority, Water
Quality, Ser A, RB, 5.625%,
10/01/12, Callable 10/01/09
@ 101 3,280 3,503
--------
CALIFORNIA (6.4%)
California State Department
of Water Resources, Power
Supply, Ser A, RB, 5.750%,
05/01/17, Prerefunded
05/01/12 @ 101 5,200 5,809
California State, GO, 5.500%,
11/01/33, Callable 11/01/13
@ 100 11,000 11,939
Fresno Unified School
District, Ser A, GO,
6.550%, 08/01/20, Callable
02/01/13 @ 103, MBIA 1,000 1,181
Orange County Loma Ridge/Data
Center Project, COP,
6.000%, 06/01/21,
Prerefunded 06/01/19 @ 100,
AMBAC 2,075 2,393
--------
21,322
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COLORADO (1.7%)
Douglas County School
District No. RE1, Douglas &
Ebert Counties, GO, 5.750%,
12/15/20, Callable 12/15/14
@ 100, FGIC 2,540 2,834
Metro Wastewater Reclamation
District, RB, 5.450%,
04/01/12, Callable 04/01/08
@ 100 2,570 2,653
--------
5,487
--------
CONNECTICUT (3.2%)
Connecticut State, Ser E, GO,
5.500%, 11/15/13, Callable
11/15/12 @ 100 9,500 10,358
--------
FLORIDA (1.6%)
Charlotte County Utilities,
Ser B, RB, 3.180%,
10/01/21, FSA (b) 1,000 1,000
Florida State Board of
Education, Ser B, RB,
6.000%, 07/01/14,
Prerefunded 07/01/10 @ 101 2,795 3,069
Lee County Transportation
Facility Authority, Ser A,
RB, 5.000%, 10/01/27,
Callable 10/01/14 @ 100,
AMBAC 1,000 1,042
--------
5,111
--------
GEORGIA (1.5%)
Georgia State, Ser D, GO,
5.000%, 11/01/12, Callable
11/01/11 @ 100 4,500 4,769
--------
ILLINOIS (1.1%)
Illinois State Sales Tax, Ser
X, RB, 5.500%, 06/15/13,
Callable 06/15/07 @ 101 3,390 3,490
--------
IOWA (0.7%)
Des Moines Public Parking
System, Ser A, RB, 6.375%,
06/01/18, Callable 06/01/10
@ 100, FGIC 2,005 2,206
--------
</Table>
See Notes to Financial Statements.
78
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
KANSAS (1.7%)
Johnson County Unified School
District No. 229, Ser A,
GO, 5.000%, 10/01/09 5,455 5,691
--------
MARYLAND (3.3%)
Maryland State, State & Local
Facilities, First Series,
GO, 5.500%, 03/01/10 10,000 10,679
--------
MASSACHUSETTS (1.6%)
Boston, Ser A, GO, 5.000%,
01/01/10 5,095 5,332
--------
MICHIGAN (1.1%)
Michigan Municipal Bond
Authority, Clean Water
State Revolving Fund, RB,
5.375%, 10/01/17, Callable
10/01/12 @ 100 3,300 3,553
--------
MINNESOTA (1.3%)
Minnesota State, GO, 5.250%,
11/01/10 4,000 4,265
--------
MISSOURI (2.9%)
Missouri State Highways &
Transit Commission, Ser A,
RB, 5.625%, 02/01/18,
Callable 02/01/11 @ 100 8,885 9,546
--------
NEW JERSEY (4.5%)
Garden State Preservation
Trust, Open Space &
Farmland Preservation, Ser
A, RB, 5.800%, 11/01/19,
Callable 11/01/15 @ 100 3,000 3,412
Garden State Preservation
Trust, Open Space &
Farmland Preservation, Ser
A, RB, 5.800%, 11/01/20,
Callable 11/01/15 @ 100,
FSA 10,000 11,364
--------
14,776
--------
NEW YORK (17.5%)
Buffalo School Improvements,
Ser D, GO, 5.500%,
12/15/14, Callable 12/15/11
@ 100, FGIC 1,075 1,161
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NEW YORK--CONTINUED
New York City Transitional
Finance Authority, Future
Secured Tax, Ser A-1, RB,
5.000%, 11/01/09 2,975 3,107
New York City, Ser A, GO,
6.250%, 08/01/08, Callable
08/01/06 @ 101.5, MBIA 11,000 11,251
New York Counties Tobacco
Trust I, Tobacco
Settlement, Ser B, RB,
6.625%, 06/01/42,
Prerefunded 06/01/10 @ 101 15,800 17,699
New York Local Government
Assistance Corp., Ser A-2,
RB, 5.000%, 04/01/10 3,000 3,144
Tobacco Settlement Financing
Corp., Ser A1, RB, 5.000%,
06/01/10, Callable 06/01/06
@ 100 35 35
Tobacco Settlement Financing
Corp., Ser A1, RB, 5.250%,
06/01/13, Callable 06/01/08
@ 100 10,000 10,309
Tobacco Settlement Financing
Corp., Ser A1, RB, 5.500%,
06/01/14, Callable 06/01/09
@ 100 3,750 3,930
Tobacco Settlement Financing
Corp., Ser C1, RB, 5.250%,
06/01/12, Callable 06/01/07
@ 100 6,720 6,841
--------
57,477
--------
NORTH CAROLINA (3.9%)
North Carolina State, Public
Improvement, Ser A, GO,
5.000%, 03/01/10 2,160 2,267
North Carolina State, Public
Improvement, Ser A, GO,
5.000%, 03/01/10 10,000 10,494
--------
12,761
--------
OHIO (6.0%)
Columbus, Public Improvement,
Ser D, GO, 5.000%, 12/15/10 3,290 3,477
</Table>
See Notes to Financial Statements.
79
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OHIO--CONTINUED
Ohio State Water Development
Authority, Fresh Water
Improvement Project, RB,
5.700%, 06/01/08, Callable
06/01/06 @ 101, AMBAC 1,520 1,552
Ohio State Water Development
Authority, Water Pollution
Control, RB, 5.000%,
12/01/11 13,785 14,652
--------
19,681
--------
PENNSYLVANIA (4.1%)
Pennsylvania State Turnpike
Commission, Registration
Fee, RB, 5.375%, 07/15/14,
Callable 07/15/11 @ 101,
AMBAC 2,000 2,173
Pennsylvania State Turnpike
Commission, Ser T, RB,
5.500%, 12/01/10 5,515 5,939
Pennsylvania State, Second
Series, GO, 5.000%,
07/01/10, MBIA 5,000 5,255
--------
13,367
--------
PUERTO RICO (8.5%)
Puerto Rico Commonwealth
Electric Power Authority,
Ser RR, RB, 5.000%,
07/01/23, Callable 07/01/15
@ 100, FGIC 6,500 6,864
Puerto Rico Commonwealth
Government Development
Bank, RB, 3.050%, 12/01/15,
MBIA (b) 3,000 3,000
Puerto Rico Commonwealth
Highway & Transportation
Authority, RB, 5.250%,
07/01/15, Callable 07/01/13
@ 100, FGIC 5,000 5,404
Puerto Rico Commonwealth
Highway & Transportation
Authority, RB, 5.250%,
07/01/17, Callable 07/01/13
@ 100, FGIC 5,260 5,660
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PUERTO RICO--CONTINUED
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser G, RB,
5.250%, 07/01/15, Callable
07/01/13 @ 100, FGIC 2,720 2,940
Puerto Rico Commonwealth
Municipal Finance Agency,
Ser A, RB, 5.250%,
08/01/14, Callable 08/01/12
@ 100, FSA 4,000 4,301
--------
28,169
--------
TENNESSEE (1.0%)
Shelby County, Public
Improvement, Ser A, GO,
5.000%, 03/01/10, FSA 3,000 3,142
--------
TEXAS (10.3%)
Irving Waterworks & Sewer,
RB, 5.950%, 06/15/19,
Callable 06/15/09 @ 100.50 1,460 1,560
Lancaster Independent School
District, GO, 5.000%,
02/15/34, Callable 02/15/16
@ 100, FSA 8,555 8,825
North Harris County Regional
Water Authority, RB,
5.250%, 12/15/18, Callable
12/15/14 @ 100, MBIA 2,690 2,896
Richardson Texas, GO, 5.250%,
02/15/17, Callable 02/15/15
@ 100, MBIA 2,665 2,862
Texas State, TAN & RAN, GO,
4.500%, 08/31/06 17,750 17,815
--------
33,958
--------
VIRGINIA (2.2%)
Fairfax County, Public
Improvement, Ser A, GO,
5.000%, 10/01/09, LOC:
State Aid Withholding 6,755 7,063
--------
WASHINGTON (1.8%)
Washington State, Motor
Vehicle Fuel Tax, Ser E,
5.000%, 01/01/08, AMBAC 5,870 6,007
--------
Total Municipal Bonds (Cost
$311,866) 311,656
--------
</Table>
See Notes to Financial Statements.
80
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (6.1%)
Federated Tax-Free
Obligations Fund 14,239,039 14,239
SEI Tax Exempt Trust,
Institutional Tax Free Fund 5,583,965 5,584
--------
Total Money Market Funds (Cost
$19,823) 19,823
--------
Total Investments (Cost
$331,689) (a) -- 101.2% 331,479
Liabilities in excess of other
assets -- (1.2)% (4,027)
--------
Net Assets -- 100.0% $327,452
========
</Table>
- ---------------
(a)Cost for federal income tax and financial reporting
purposes is the same. Unrealized appreciation/(depreciation) is as follows
(amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 1,832
Unrealized Depreciation.................. (2,042)
-------
Unrealized Appreciation (Depreciation)... $ (210)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RAN -- Revenue Anticipation Note
RB -- Revenue Bond
Ser -- Series
TAN -- Tax Anticipation Note
See Notes to Financial Statements.
81
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIMITED DURATION FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
ASSET BACKED SECURITIES (24.6%)
AUTOMOBILE ABS (0.4%)
WFS Financial Owner Trust, Ser
2005-1, Cl A2, 3.190%,
12/17/07 264 263
-------
CREDIT CARD ABS (17.3%)
American Express Credit Account
Master Trust, Ser 2003-3, Cl
A, 4.859%, 11/15/10 (b) 1,200 1,202
BA Master Credit Card Trust, Ser
2001, Cl A, 4.869%, 06/15/08
(b) 2,250 2,250
Chase Issuance Trust, Ser 2005-
A1, Cl A1, 4.759%, 12/15/10
(b) 2,200 2,200
First USA Credit Card Master
Trust, Ser 1997-8, Cl A,
4.903%, 05/17/10 (b) 2,266 2,271
MBNA Credit Card Master Trust,
Ser 2002-A13, Cl A, 4.879%,
05/17/10 (b) 2,250 2,255
-------
10,178
-------
DIVERSIFIED FINANCIAL SERVICES (1.7%)
SLM Student Loan Trust, Ser
2004-8, Cl A3, 4.713%,
07/27/15 (b) 1,022 1,024
-------
FANNIE MAE (2.4%)
Guarantor Trust, Ser 2002-T10,
Cl A1, 4.940%, 06/25/32 (b) 1,412 1,412
-------
FREDDIE MAC (1.1%)
Structured Pass Thru Securities,
Ser T-49, Cl AV, 4.968%,
12/25/32 (b) 619 619
-------
HOME EQUITY ABS (1.7%)
Countywide Home Equity Loan
Trust, Ser 2006-C, Cl 2A,
5.041%, 05/15/36 (b) 992 992
-------
Total Asset Backed Securities
(Cost $14,492) 14,488
-------
U.S. GOVERNMENT AGENCIES (8.5%)
FREDDIE MAC (8.5%)
2.375%, 04/15/06 5,000 4,996
-------
Total U.S. Government Agencies
(Cost $4,996) 4,996
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
U.S. TREASURY OBLIGATIONS (62.5%)
U.S. TREASURY NOTES (62.5%)
2.250%, 04/30/06 7,000 6,986
4.625%, 05/15/06 7,000 6,999
6.875%, 05/15/06 7,000 7,016
2.500%, 05/31/06 7,000 6,976
2.750%, 06/30/06 2,850 2,837
7.000%, 07/15/06 6,000 6,036
-------
Total U.S. Treasury Obligations
(Cost $36,858) 36,850
-------
REPURCHASE AGREEMENT (3.4%)
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $1,991,820
(collateralized by U.S.
Government Agencies; DN,
12/01/34; total market value
$2,033,414) 1,991 1,991
-------
Total Repurchase Agreement (Cost
$1,991) 1,991
-------
Total Investments (Cost $58,337)
(a) -- 99.0% 58,325
Other assets in excess of
liabilities -- 1.0% 562
-------
Net Assets -- 100.0% $58,887
=======
</Table>
- ---------------
(a) Cost for federal income tax purposes is $58,338
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................... $ 2
Unrealized Depreciation.................... (15)
----
Unrealized Appreciation (Depreciation)..... $(13)
====
</Table>
(b) Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
Cl -- Class
DN -- Discount Note
Ser -- Series
See Notes to Financial Statements.
82
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES (8.3%)
FANNIE MAE (3.3%)
5.250%, 06/15/06 (c) 13,000 13,005
--------
FREDDIE MAC (5.0%)
3.625%, 09/15/06 (c) 20,000 19,872
--------
Total U.S. Government Agencies
(Cost $32,938) 32,877
--------
U.S. GOVERNMENT AGENCY MORTGAGES (87.8%)
FANNIE MAE (67.5%)
6.500%, 12/01/08 2,464 2,517
3.500%, 04/25/11 21,235 20,883
7.500%, 09/01/12 4,948 5,111
6.500%, 06/01/13 502 514
6.000%, 09/01/13 1,057 1,071
4.000%, 11/01/13 9,651 9,145
4.500%, 03/01/14 15,958 15,391
6.000%, 09/01/16 6,798 6,889
6.500%, 10/01/16 1,131 1,158
5.500%, 12/01/16 3,048 3,034
6.000%, 08/01/17 1,905 1,932
6.000%, 10/01/17 1,218 1,235
6.000%, 10/01/17 3,571 3,620
6.000%, 06/01/19 5,543 5,618
5.500%, 07/01/19 7,774 7,730
5.500%, 07/01/19 2,200 2,188
5.500%, 08/01/19 3,562 3,542
5.500%, 10/01/19 4,844 4,816
5.500%, 06/01/20 9,438 9,384
3.500%, 10/25/21 17,745 17,441
7.000%, 05/01/32 5,443 5,610
6.500%, 12/01/32 3,729 3,813
4.121%, 05/01/33 (b) 5,915 5,814
3.946%, 06/01/33 (b) 9,751 9,552
4.098%, 08/01/33 (b) 12,512 12,286
5.000%, 11/01/33 18,747 17,896
6.000%, 11/01/33 1,879 1,880
3.233%, 05/01/34 (b) 9,050 8,913
4.502%, 05/01/34 (b) 2,703 2,657
4.023%, 06/01/34 (b) 5,357 5,208
4.242%, 06/01/34 (b) 3,304 3,239
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FANNIE MAE--CONTINUED
7.000%, 06/01/34 4,953 5,101
3.484%, 07/01/34 (b) 6,795 6,742
4.497%, 08/01/35 (b) 9,839 9,698
6.000%, 08/01/35 10,882 10,886
6.000%, 12/01/35 13,244 13,248
5.173%, 01/01/36 (b) 7,442 7,393
5.528%, 02/01/36 (b) 12,983 12,959
--------
266,114
--------
FREDDIE MAC (20.3%)
7.000%, 11/01/16 866 891
6.500%, 02/01/17 2,446 2,499
5.500%, 05/01/17 4,633 4,608
6.000%, 07/01/17 2,891 2,926
4.500%, 05/01/18 7,747 7,415
5.000%, 02/15/19 12,621 12,562
4.500%, 10/15/27 10,000 9,769
6.000%, 12/01/31 16,596 16,628
6.500%, 09/01/32 4,100 4,189
5.046%, 12/01/32 (b) 13,793 13,824
4.250%, 05/01/34 (b) 5,000 4,776
--------
80,087
--------
Total U.S. Government Agency
Mortgages (Cost $353,311) 346,201
--------
SHORT-TERM INVESTMENTS (7.5%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (d) 29,675,000 29,675
--------
Total Short-Term Investments
(Cost $29,675) 29,675
--------
REPURCHASE AGREEMENTS (3.8%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to
be repurchased on
04/03/06, repurchase price
$3,379,247 (collateralized
by U.S. Government
Agencies, 5.50%, due
02/01/35; total market
value $3,449,998) 3,378 3,378
</Table>
See Notes to Financial Statements.
83
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Morgan Stanley, 4.705%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$11,655,631
(collateralized by U.S.
Government Agencies,
5.147%-6.50%, due
08/01/34-10/01/35; total
market value $12,120,658) 11,651 11,651
--------
Total Repurchase Agreements
(Cost $15,029) 15,029
--------
Total Investments (Cost
$430,953) (a) -- 107.4% 423,782
Liabilities in excess of other
assets -- (7.4)% (29,281)
--------
Net Assets -- 100.0% $394,501
========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $430,079
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 1,043
Unrealized Depreciation.................. (7,339)
-------
Unrealized Appreciation (Depreciation)... $(6,296)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $28,902.
(d)This security was purchased with cash collateral held
from securities lending.
See Notes to Financial Statements.
84
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MARYLAND MUNICIPAL BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MUNICIPAL BONDS (95.8%)
MARYLAND (90.7%)
Annapolis Public Improvement,
GO, 5.000%, 04/01/08 1,000 1,027
Anne Arundel County Special
Obligation, Arundel Mills
Project, RB, 5.125%,
07/01/22, Callable 07/01/14 @
100, County Guaranteed 1,000 1,063
Baltimore Convention Center,
Baltimore Hotel Corp., Ser A,
RB, 5.250%, 09/01/39,
Callable 09/01/16 @ 100 1,000 1,064
Baltimore Parking System
Facilities, Ser A, RB,
5.900%, 07/01/13, FGIC 900 1,006
Charles County, County
Commissioner, Public
Improvement, GO, 5.000%,
03/01/14 1,000 1,073
Charles County, County
Commissioner, Public
Improvement, GO, 5.000%,
03/01/16 1,250 1,346
Frederick County Educational
Facilities, Mount St. Mary's
University, RB, 5.625%,
09/01/38, Callable 09/01/16 @
100 500 524
Frederick County, Public
Facilities, GO, 5.000%,
12/01/16, Callable 12/01/15 @
100 1,000 1,075
Harford County, GO, 5.000%,
07/15/25, Callable 07/15/15 @
100 1,000 1,051
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center, Ser
E, RB, 5.700%, 09/01/17,
Callable 09/01/09 @ 100 350 356
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Community
Development Administration,
Department of Housing &
Community Development, Ser 2,
RB, AMT, 4.700%, 04/01/11 1,000 1,027
Maryland State Community
Development Administration,
Department of Housing &
Community Development, Ser
2001B, RB, AMT, 4.100%,
07/01/08, FHA/GNMA/HUD 285 287
Maryland State Economic
Development Corp., 5.000%,
07/01/35 500 518
Maryland State Economic
Development Corp., Department
of Transportation
Headquarters, RB, 5.375%,
06/01/19, Callable 06/01/12 @
100.50 1,000 1,079
Maryland State Economic
Development Corp., Student
Housing, University of
Maryland College Park
Project, RB, 5.000%,
06/01/33, Callable 06/01/06 @
100, CIFG 750 777
Maryland State Economic
Development Corp., U.S.
Pharmacopeial Project, Ser B,
RB, 3.170%, 07/01/34, AMBAC
(b) 650 650
Maryland State Economic
Development Corp., University
of Maryland College Park
Project, RB, 5.750%,
06/01/18, Callable 06/01/13 @
100 475 526
Maryland State Economic
Development Corp., University
of Maryland, Ser A, RB,
5.625%, 10/01/23, Callable
10/01/13 @ 100 (c) 400 387
</Table>
See Notes to Financial Statements.
85
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MARYLAND MUNICIPAL BOND FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Economic
Development Corp., University
Village at Sheppard Pratt,
RB, 5.875%, 07/01/21,
Callable 07/01/11 @ 101, ACA 250 266
Maryland State Health & Higher
Educational Facilities
Authority, Calvert Health
Systems, RB, 5.500%,
07/01/36, Callable 07/01/14 @
100 1,000 1,052
Maryland State Health & Higher
Educational Facilities
Authority, Carroll County
General Hospital, RB, 6.000%,
07/01/18, Callable 07/01/12 @
100 1,035 1,118
Maryland State Health & Higher
Educational Facilities
Authority, Carroll County
General Hospital, RB, 6.000%,
07/01/21, Callable 07/01/12 @
100 250 269
Maryland State Health & Higher
Educational Facilities
Authority, Catholic Health
Initiatives, Ser A, RB,
6.000%, 12/01/24, Callable
06/01/10 @ 101, ETM 250 274
Maryland State Health & Higher
Educational Facilities
Authority, Goucher College,
RB, 5.375%, 07/01/25,
Callable 07/01/14 @ 100 565 595
Maryland State Health & Higher
Educational Facilities
Authority, Hebrew Home of
Greater Washington, RB,
5.700%, 01/01/21, Callable
01/01/12 @ 100 480 508
Maryland State Health & Higher
Educational Facilities
Authority, Hebrew Home of
Greater Washington, RB,
5.700%, 01/01/22, Callable
01/01/12 @ 100 510 538
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Health & Higher
Educational Facilities
Authority, Johns Hopkins
University, Ser A, RB,
5.000%, 07/01/38, Callable
07/01/14 @ 100 1,115 1,149
Maryland State Health & Higher
Educational Facilities
Authority, Lifebridge Health,
Ser A, RB, 5.125%, 07/01/34,
Callable 07/01/14 @ 100 1,000 1,025
Maryland State Health & Higher
Educational Facilities
Authority, Mercy Ridge, Ser
B, RB, 5.000%, 04/01/08,
Callable 04/01/06 @ 101 300 303
Maryland State Health & Higher
Educational Facilities
Authority, Union Hospital of
Cecil Country, RB, 5.750%,
07/01/20, Callable 07/01/12 @
100 500 535
Maryland State Health & Higher
Educational Facilities
Authority, University of
Maryland Medical System, RB,
5.750%, 07/01/21, Callable
07/01/11 @ 100 1,725 1,828
Maryland State Industrial
Development Authority,
Economic Development, Our
Lady of Good Counsel School,
Ser A, RB, 6.000%, 05/01/35,
Callable 05/15/15 @ 100 500 532
Maryland State Stadium
Authority, RB, 5.800%,
03/01/26, Callable 03/01/07 @
101, AMBAC 250 253
Maryland State Transportation
Authority, Baltimore/
Washington International
Airport, Ser B, RB, AMT,
5.375%, 03/01/15, Callable
03/01/12 @ 101, AMBAC 1,000 1,059
</Table>
See Notes to Financial Statements.
86
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MARYLAND MUNICIPAL BOND FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MARYLAND--CONTINUED
Maryland State, Capital
Improvements, Ser A, GO,
5.000%, 02/15/17, Callable
02/15/15 @ 100 1,250 1,339
Maryland State, Capital
Improvements, Ser A, GO,
5.000%, 02/15/19, Callable
02/15/15 @ 100 1,000 1,066
Maryland State, State & Local
Facilities, Ser 2, GO,
5.000%, 08/01/16, Callable
08/01/13 @ 100 1,000 1,060
Montgomery County Economic
Development, Trinity Health
Care Group, RB, 5.500%,
12/01/16, Callable 12/01/11 @
100 1,000 1,059
Montgomery County Housing
Opportunities Commission,
Aston Woods Apartments, Ser
A, RB, 4.900%, 05/15/31,
Callable 05/15/08 @ 102, FNMA 1,150 1,190
Montgomery County Housing
Opportunities Commission, Ser
A, RB, 4.450%, 07/01/17,
Callable 01/01/11 @ 100 170 170
Montgomery County Housing
Opportunities Commission, Ser
A, RB, 6.000%, 07/01/20,
Callable 07/01/10 @ 100 1,005 1,055
Montgomery County Revenue
Authority, Lease, College
Arts Center Project, Ser A,
RB, 5.000%, 05/01/28,
Callable 05/01/15 @ 100 1,000 1,035
Northeast Waste Disposal
Authority, Montgomery County
Resource Recovery Project,
Ser A, RB, AMT, 6.000%,
07/01/06 1,100 1,105
St. Mary's County Public
Improvement, GO, 5.500%,
07/01/11 1,165 1,265
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MARYLAND--CONTINUED
Talbot County Public
Facilities, GO, 5.375%,
03/15/17, Callable 03/15/12 @
101 1,000 1,081
Washington Suburban Sanitation
District, Ser B, GO, 3.100%,
06/01/23, LOC: Bank of
America N.A. (b) 1,000 1,000
-------
38,565
-------
PUERTO RICO (5.1%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 500 502
Puerto Rico Electric Power
Authority, Ser RR, RB,
5.000%, 07/01/26, Callable
07/01/15 @ 100, XLCA 1,000 1,046
Puerto Rico Housing Bank &
Finance Agency, Affordable
Housing Mortgage Portfolio I,
RB, AMT, 6.250%, 04/01/29,
Callable 10/01/06 @ 101,
GNMA/FNMA/FHLMC 625 631
-------
2,179
-------
Total Municipal Bonds (Cost
$40,198) 40,744
-------
MONEY MARKET FUNDS (3.9%)
Federated Maryland Municipal
Cash Trust 1,678,315 1,678
-------
Total Money Market Funds (Cost
$1,678) 1,678
-------
Total Investments (Cost $41,876)
(a) -- 99.7% 42,422
Other assets in excess of
liabilities -- 0.3% 112
-------
Net Assets -- 100.0% $42,534
=======
</Table>
See Notes to Financial Statements.
87
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
MARYLAND MUNICIPAL BOND FUND -- CONCLUDED
- ---------------
(a)Cost for federal income tax purposes is $41,873 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................... $ 723
Unrealized Depreciation.................... (174)
-----
Unrealized Appreciation (Depreciation)..... $ 549
=====
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be illiquid based upon procedures approved by the
Board of Trustees. The restricted securities held by the Fund as of March 31,
2006 are identified below (in thousands):
<Table>
<Caption>
PERCENT
ACQUISITION OF NET
ISSUE DESCRIPTION DATE COST SHARES VALUE ASSETS
- -------------------------------------------------------------------------
Maryland State Economic
Development Corp.,
University of Maryland,
Ser A, RB, 5.625%,
10/01/23, Callable
10/01/13 @ 100 01/31/03 $392 400 $387 0.91%
</Table>
ACA -- Security insured by American Capital Access
AMBAC -- Security insured by the American Municipal Bond
Assurance Corporation
AMT -- Alternative Minimum Tax Paper
CIFG -- Security insured by CIFG Guaranty
ETM -- Escrowed to Maturity
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FHA -- Security insured by the Federal Housing
Administration
FHLMC -- Security insured by Freddie Mac
FNMA -- Security insured by Fannie Mae
GNMA -- Security insured by the Government National
Mortgage Association
GO -- General Obligation
HUD -- Security insured by the Department of Housing and
Urban Development
LOC -- Line of Credit
RB -- Revenue Bond
Ser -- Series
XLCA -- Security insured by XL Capital Assurance, Inc.
See Notes to Financial Statements.
88
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
NORTH CAROLINA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
MUNICIPAL BONDS (98.7%)
NORTH CAROLINA (95.0%)
Appalachian State University,
Procurement Services
Building, RB, 5.000%,
07/15/30, Callable 07/15/15
@100, MBIA 1,250 1,306
Brunswick County Enterprise
System, Ser A, RB, 5.250%,
04/01/22, Callable 04/01/14 @
100, FSA 500 535
Buncombe County, COP, 5.250%,
10/01/17, Callable 10/01/13 @
100, AMBAC 585 623
Charlotte Water & Sewer System,
RB, 5.250%, 06/01/15,
Prerefunded 06/01/09 @ 101 500 528
Charlotte Water & Sewer System,
RB, 5.750%, 06/01/19,
Prerefunded 06/01/10 @ 101 2,000 2,175
Charlotte, FY 2006 Equipment
Aquisition Project, Ser A,
COP, 5.000%, 03/01/09 1,000 1,036
Charlotte-Mecklenberg Hospital
Authority, Carolinas Health
Care System, Ser A, RB,
5.000%, 01/15/13, Callable
01/15/07 @ 102 500 514
Charlotte-Mecklenburg Hospital
Authority, Carolinas Health
Care System, Ser A, 5.000%,
01/15/31, Callable 01/15/11 @
101 1,260 1,279
Dare County, COP, 5.000%,
06/01/23, Callable 12/01/12 @
100, AMBAC 830 859
Durham, GO, 5.000%, 02/01/07 500 506
Fayetteville Public Works
Commission, RB, 3.375%,
01/15/07, FSA 840 839
Greensboro Enterprise System,
Ser A, RB, 5.000%, 06/01/26,
Callable 06/01/15 @ 100 1,000 1,043
Iredell County Public
Facilities Project, COP,
5.250%, 10/01/20, Callable
10/01/13 @ 100, AMBAC 500 531
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
NORTH CAROLINA--CONTINUED
New Hanover County Hospital,
New Hanover Regional Medical
Center Project, RB, 5.300%,
10/01/06, AMBAC 200 202
North Carolina Capital
Facilities Finance Agency,
Educational Facilities,
Johnson & Wales University
Project, Ser A, RB, 5.000%,
04/01/14, Callable 04/01/13 @
100 500 526
North Carolina Capital
Facilities Finance Agency,
Educational Facilities,
Trinity Episcopal School
Project, RB, 3.180%,
09/01/24, LOC: Wachovia Bank
N.A.(b) 400 400
North Carolina Capital
Facilities Finance Agency,
Student Housing, NCA&T
University Foundation
Project, Ser A, RB, 5.250%,
06/01/20, Callable 06/01/14 @
100, LOC: Radian 500 531
North Carolina Eastern
Municipal Power Agency, Power
System, Ser A, RB, 5.700%,
01/01/15, Callable 01/01/07 @
102, MBIA 500 516
North Carolina Eastern
Municipal Power Agency, Power
System, Ser C, RB, 5.375%,
01/01/16, Callable 01/01/13 @
100 500 529
North Carolina Educational
Facilities Finance Agency,
Belmont Abbey College, RB,
3.180%, 06/01/18, LOC: First
Union National Bank (b) 400 400
North Carolina Educational
Facilities Finance Agency,
Wingate University, RB,
3.180%, 05/01/22, LOC: Bank
of America N.A. (b) 400 400
</Table>
See Notes to Financial Statements.
89
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
NORTH CAROLINA TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina Medical Care
Commission, Health Care
Facilities, Novant Health
Obligations Group, Ser A, RB,
5.000%, 11/01/17, Callable
11/01/13 @ 100 500 521
North Carolina Medical Care
Commission, Health Care
Facilities, Novant Health
Obligations Group, Ser A, RB,
5.000%, 11/01/18, Callable
11/01/13 @ 100 500 520
North Carolina Medical Care
Commission, Health Care
Facilities, RB, 5.000%,
01/01/33, Callable 01/01/15 @
100, FGIC 2,520 2,590
North Carolina Medical Care
Commission, Northeast Medical
Center Project, RB, 5.750%,
11/01/06, AMBAC 1,095 1,109
North Carolina Municipal Power
Agency, No. 1 Catawba
Electric, Ser A, RB, 5.500%,
01/01/15, MBIA 500 549
North Carolina Municipal Power
Agency, No. 1 Catawba
Electric, Ser A, RB, 5.000%,
01/01/20, Callable 01/01/11 @
100 1,000 1,030
North Carolina State University
at Raleigh, Centennial Campus
Project, Ser B, RB, 5.125%,
12/15/16, Prerefunded
12/15/06 @ 101, MBIA 500 510
North Carolina State,
Albermarle Building, Clean
Water, Ser B, GO, 2.625%,
05/01/06 500 500
North Carolina State, Public
Improvement, Ser A, GO,
5.250%, 03/01/13 1,000 1,085
Pitt County School Facilities
Project, Ser B, COP, 5.300%,
04/01/21, Callable 04/01/10 @
101, FSA 500 528
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
NORTH CAROLINA--CONTINUED
Raleigh Combined Enterprise
System, RB, 5.250%, 03/01/17,
Callable 03/01/11 @ 100 500 534
Raleigh Durham Airport
Authority, Ser A, RB, 5.000%,
05/01/30, Callable 05/01/15 @
100, AMBAC 2,000 2,077
Rockingham County, COP, 5.000%,
04/01/18, Callable 04/01/12 @
101, AMBAC 500 524
Salisbury Enterprise System,
RB, 5.000%, 02/01/20,
Callable 02/01/12 @ 101, FSA 500 523
University of North Carolina at
Wilmington, COP, 5.000%,
06/01/31, Callable 06/01/15 @
100, FGIC 1,295 1,339
University of North Carolina
Systems Pool, Ser A, RB,
5.375%, 04/01/21, Callable
10/01/12 @ 100, AMBAC 400 431
University of North Carolina
Systems Pool, Ser A, RB,
5.375%, 04/01/22, Callable
10/01/12 @ 100, AMBAC 500 539
University of North Carolina
Systems Pool, Ser A, RB,
5.000%, 04/01/23, Callable
04/01/15 @ 100, AMBAC 1,910 2,005
Wake County Hospital, RB,
5.125%, 10/01/13, MBIA, ETM 350 378
Wake County Industrial
Facilities & Pollution
Control Financing Authority,
Carolina Power & Light Co.
Project, RB, 5.375%,
02/01/17, Callable 02/01/12 @
101 1,000 1,054
Wilmington, COP, 5.000%,
09/01/14, AMBAC 520 553
Wilmington, Ser A, COP, 5.000%,
06/01/22, Callable 06/01/16 @
100 1,415 1,482
Wilmington, Ser A, COP, 5.350%,
06/01/24, Callable 06/01/09 @
101, MBIA 500 529
</Table>
See Notes to Financial Statements.
90
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
NORTH CAROLINA TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
NORTH CAROLINA--CONTINUED
Wilmington, Ser A, COP, 5.000%,
06/01/32, Callable 06/01/15 @
100, AMBAC 1,500 1,547
Wilson Combined Enterprise
Systems, RB, 5.250%,
12/01/18, Callable 12/01/12 @
100, FSA 500 535
Winston-Salem State University,
Housing & Dining System, Ser
B, RB, 4.850%, 01/01/11,
Callable 01/01/09 @ 101, MBIA 500 517
Winston-Salem Water & Sewer
System, RB, 5.500%, 06/01/15,
Prerefunded 06/01/11 @ 101 270 294
Winston-Salem Water & Sewer
System, RB, 5.500%, 06/01/16,
Prerefunded 06/01/11 @ 101 200 218
-------
39,299
-------
PUERTO RICO (3.7%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 500 502
Puerto Rico Convention Center
Authority, Hotel Occupancy
Tax, Ser A, RB, 5.000%,
07/01/31, Callable 07/01/16 @
100, AMBAC 1,000 1,047
-------
1,549
-------
Total Municipal Bonds (Cost
$40,913) 40,848
-------
MONEY MARKET FUNDS (3.9%)
Federated Tax-Free Obligations
Fund 1,561,891 1,562
SEI Tax Exempt Trust,
Institutional Tax Free Fund 47,134 47
-------
Total Money Market Funds (Cost
$1,609) 1,609
-------
Total Investments (Cost $42,522)
(a) -- 102.6% 42,457
Liabilities in excess of other
assets -- (2.6)% (1,069)
-------
Net Assets -- 100.0% $41,388
=======
</Table>
- ---------------
(a)Cost for federal income tax and financial reporting
purposes is the same. Unrealized appreciation/(depreciation) is as follows
(amounts in thousands):
<Table>
Unrealized Appreciation.................... $ 180
Unrealized Depreciation.................... (245)
-----
Unrealized Appreciation (Depreciation)..... $ (65)
=====
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
91
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX FLOATING RATE HIGH INCOME FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
BANK LOANS (94.2%)
ADVERTISING (0.9%)
R.H. Donnelley Corp., 6.690%,
06/30/11 (b) (d) 1,000 1,004
--------
AUTO PARTS & EQUIPMENT (1.9%)
Goodyear Tire & Rubber Co.
(The), 7.060%, 04/30/10 (b)
(d) 2,000 2,025
--------
CHEMICALS (5.7%)
Celanese AG, 6.979%,
06/01/10 (b) (d) 1,995 2,020
Huntsman International LLC,
6.530%, 08/16/12 (b) (d) 2,000 2,011
Ineos Group Holdings PLC,
0.000%, 12/14/13 (b) (d) (e) 1,000 1,013
Ineos Group Holdings PLC,
0.000%, 12/14/14 (b) (d) (e) 1,000 1,013
--------
6,057
--------
COAL (0.9%)
Alpha Natural Resources, Inc.,
6.320%, 10/26/12 (b) (d) 998 1,003
--------
COMMERCIAL SERVICES (10.4%)
Eastman Kodak Co., 6.888%,
10/18/12 (b) (d) 3,000 3,032
Hertz Corp. (The), 6.980%,
12/21/12 (b) (d) 2,800 2,836
Hertz Corp. (The), 7.180%,
12/21/12 (b) (d) 193 195
Quintiles Transnational Corp.,
6.820%, 03/21/13 (b) (d) 1,000 1,009
Quintiles Transnational Corp.,
8.820%, 03/21/14 (b) (d) 1,000 1,015
United Rental North America,
Inc., 6.640%, 02/14/11 (b)
(d) 433 437
United Rental North America,
Inc., 7.070%, 02/14/11 (b)
(d) 2,494 2,521
--------
11,045
--------
COMPUTERS (3.8%)
Stratus Technologies, Inc.,
7.960%, 03/15/12 (b) (d) 1,000 1,014
SunGard Data Systems, Inc.,
7.215%, 02/11/13 (b) (d) 2,992 3,030
--------
4,044
--------
DIVERSIFIED FINANCIAL SERVICES (1.9%)
Nasdaq Stock Market, Inc.
(The), 6.288%, 12/08/11 (b)
(d) 2,050 2,064
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
ELECTRIC (8.5%)
Boston Generating LLC, 0.000%,
10/01/10 (b) (d) (e) 2,000 2,030
LSP-Kendall Energy LLC, 6.979%,
10/07/13 (b) (d) 1,985 1,982
Mirant North America LLC,
6.441%, 01/03/13 (b) (d) 1,995 2,011
NRG Energy, Inc., 6.820%,
02/01/13 (b) (d) 3,000 3,037
--------
9,060
--------
ENERGY (0.9%)
Plum Point Associates LLC,
8.044%, 02/21/14 (b) (d) 806 812
Plum Point Associates LLC,
8.167%, 02/21/14 (b) (d) 194 196
--------
1,008
--------
ENTERTAINMENT (4.0%)
SFX Entertainment, Inc.,
7.230%, 06/21/13 (b) (d) 1,995 2,000
Venetian Casino Resort LLC,
6.730%, 06/15/11 (b) (d) 1,865 1,883
Venetian Casino Resort LLC,
6.730%, 06/15/11 (b) (d) 385 388
--------
4,271
--------
ENVIRONMENTAL CONTROL (1.9%)
Allied Waste North America,
Inc., 0.000%, 01/15/12 (b)
(d) (e) 559 561
Allied Waste North America,
Inc., 0.000%, 01/15/12 (b)
(d) (e) 1,441 1,446
--------
2,007
--------
FOREST PRODUCTS & PAPER (2.8%)
Georgia-Pacific Corp., 7.163%,
11/22/10 (b) (d) 1,975 1,986
Georgia-Pacific Corp., 7.884%,
12/20/13 (b) (d) 1,000 1,022
--------
3,008
--------
HEALTHCARE -- SERVICES (4.3%)
CRC Health Corp., 7.229%,
02/06/13 (b) (d) 3,000 3,038
Fresenius Medical Care AG &
Co., 6.384%, 03/13/13 (b) (d) 1,500 1,505
--------
4,543
--------
</Table>
See Notes to Financial Statements.
92
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX FLOATING RATE HIGH INCOME FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
LODGING (3.8%)
Metro-Goldwyn-Mayer, Inc.,
7.229%, 04/08/11 (b) (d) 2,000 2,017
MGM Mirage, Inc., 6.284%,
04/25/10 (b) (d) 2,001 2,006
--------
4,023
--------
MEDIA (18.6%)
Cablevision Systems Corp.,
6.664%, 03/21/12 (b) (d) 1,500 1,510
Dex Media West LLC, 6.516%,
12/30/10 (b) (d) 2,968 2,990
DirecTV Holdings LLC, 6.276%,
03/30/10 (b) (d) 2,000 2,019
Entravision Communications
Corp., 6.030%, 03/29/13 (b)
(d) 2,000 2,014
Gray Television, Inc., 6.030%,
11/22/12 (b) (d) 2,993 3,010
Next Media Operating, Inc.,
6.661%, 11/04/12 (b) (d) 614 620
Next Media Operating, Inc.,
6.753%, 11/04/12 (b) (d) 1,381 1,394
Quebecor Media, 6.602%,
01/17/13 (b) (d) 2,000 2,027
San Juan Cable LLC, 6.840%,
10/31/12 (b) (d) 998 1,008
San Juan Cable LLC, 10.340%,
10/31/13 (b) (d) 1,000 1,009
Time Warner Telecom, Inc.,
7.118%, 11/30/10 (b) (d) 1,995 2,025
--------
19,626
--------
OIL & GAS (3.8%)
Cheniere Energy, Inc., 7.729%,
08/30/12 (b) (d) 1,995 2,012
Petroleum Geo-Services ASA,
7.480%, 12/16/12 (b) (d) 1,995 2,019
--------
4,031
--------
PIPELINES (6.6%)
EL Paso Corp., 7.750%,
11/23/09 (b) (d) 1,992 2,015
MarkWest Energy Partners LP,
7.014%, 12/29/10 (b) (d) 3,000 3,022
Targa Resources, Inc., 6.104%,
10/31/12 (b) (d) 388 392
Targa Resources, Inc., 7.091%,
10/31/12 (b) (d) 1,608 1,628
--------
7,057
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
RETAIL (4.5%)
Capital Automotive LP, 6.340%,
12/16/10 (b) (d) 2,708 2,734
Neiman Marcus Group, Inc.
(The), 7.340%, 04/06/13 (b)
(d) 2,000 2,027
--------
4,761
--------
SEMICONDUCTORS (1.4%)
ON Semiconductor Corp., 0.000%,
12/15/11 (b) (d) (e) 1,497 1,512
--------
TELECOMMUNICATIONS (7.6%)
Consolidated Communications,
Inc., 6.675%, 11/30/11 (b)
(d) 2,000 2,016
Qwest Corp., 9.503%,
06/30/07 (b) (d) 4,000 4,099
Sorenson Communications, Inc.,
7.749%, 11/15/12 (b) (d) 1,975 2,002
--------
8,117
--------
Total Bank Loans (Cost $100,579) 100,266
--------
CORPORATE BONDS (5.2%)
MEDIA (1.8%)
EchoStar DBS Corp., 7.125%,
02/01/16, Callable 10/01/06 @
100 (d) 2,000 1,968
--------
PACKAGING & CONTAINERS (1.4%)
Ball Corp., 6.875%, 12/15/12,
Callable 12/15/07 @ 103.44 1,500 1,534
--------
REITS (2.0%)
Omega Healthcare Investors,
Inc., 7.000%, 01/15/16,
Callable 01/15/11 @ 103.50
(d) 2,000 1,999
--------
Total Corporate Bonds (Cost
$5,521) 5,501
--------
U.S. TREASURY OBLIGATIONS (15.9%)
U.S. TREASURY BILLS (15.9%)
4.484%, 05/11/06 (c) 17,000 16,920
--------
Total U.S. Treasury Obligations
(Cost $16,916) 16,920
--------
</Table>
See Notes to Financial Statements.
93
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX FLOATING RATE HIGH INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (10.1%)
Federated Prime Obligation
Money Market Fund 5,044,280 5,044
Federated Prime Value Money
Market Fund 5,713,403 5,714
--------
Total Money Market Funds (Cost
$10,758) 10,758
--------
Total Investments (Cost
$133,774) (a) -- 125.4% 133,445
Liabilities in excess of other
assets -- (25.4)% (27,040)
--------
Net Assets -- 100.0% $106,405
========
</Table>
- ---------------
(a)Cost for federal income tax and financial reporting
purposes is the same. Unrealized appreciation/ (depreciation) is as follows
(amounts in thousands):
<Table>
Unrealized Appreciation.................... $ 76
Unrealized Depreciation.................... (405)
-----
Unrealized Appreciation (Depreciation)..... $(329)
=====
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)This security has not settled as of March 31, 2006 and
thus does not have a rate in effect. The security does not have a stated
settlement date and will receive a rate upon settling with the custodian.
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
See Notes to Financial Statements.
94
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
BANK LOANS (4.6%)
CHEMICALS (0.6%)
Celanese AG, 6.979%,
06/01/10 (b) (d) 2,993 3,029
Huntsman International
LLC, 6.530%, 08/16/12
(b) (d) 2,000 2,011
Ineos Group Holdings PLC,
0.000%, 12/14/13 (b) (d)
(h) 1,500 1,520
Ineos Group Holdings PLC,
0.000%, 12/14/14 (b) (d)
(h) 1,500 1,519
----------
8,079
----------
COMMERCIAL SERVICES (0.6%)
Eastman Kodak Co., 6.888%,
10/18/12 (b) (d) 2,000 2,022
Hertz Corp. (The), 6.980%,
12/21/12 (b) (d) 2,737 2,771
Hertz Corp. (The), 7.180%,
12/21/12 (b) (d) 257 260
Quintiles Transnational
Corp., 6.820%, 03/21/13
(b) (d) 1,000 1,009
United Rental North
America, Inc., 6.640%,
02/14/11 (b) (d) 336 340
United Rental North
America, Inc., 7.070%,
02/14/11 (b) (d) 1,907 1,927
----------
8,329
----------
COMPUTERS (0.2%)
SunGard Data Systems,
Inc., 7.215%, 02/11/13
(b) (d) 1,995 2,020
----------
ELECTRIC (0.2%)
NRG Energy, Inc., 6.820%,
02/01/13 (b) (d) 2,000 2,024
----------
ENERGY (0.1%)
Plum Point Associates LLC,
8.044%, 02/21/14 (b) (d) 806 812
Plum Point Associates LLC,
8.167%, 02/21/14 (b) (d) 194 196
----------
1,008
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ENTERTAINMENT (0.1%)
Venetian Casino Resort
LLC, 6.730%, 06/15/11
(b) (d) 1,000 1,009
----------
ENVIRONMENTAL CONTROL (0.2%)
Allied Waste North
America, Inc., 0.000%,
01/15/12 (b) (d) (h) 559 561
Allied Waste North
America, Inc., 0.000%,
01/15/12 (b) (d) (h) 1,441 1,446
----------
2,007
----------
FOREST PRODUCTS & PAPER (0.2%)
Georgia-Pacific Corp.,
7.163%, 11/22/10 (b) (d) 988 993
Georgia-Pacific Corp.,
7.884%, 12/20/13 (b) (d) 1,000 1,022
----------
2,015
----------
LODGING (0.3%)
Boyd Gaming Corp., 6.545%,
06/19/11 (b) (d) 1,995 2,016
Metro-Goldwyn-Mayer, Inc.,
7.229%, 04/08/11 (b) (d) 1,000 1,008
MGM Mirage, Inc., 6.284%,
04/25/10 (b) (d) 1,000 1,003
----------
4,027
----------
MEDIA (0.9%)
Cablevision Systems Corp.,
6.664%, 03/21/12 (b) (d) 2,000 2,013
Dex Media West LLC,
6.516%, 12/30/10 (b) (d) 989 997
DirecTV Holdings LLC,
6.276%, 03/30/10 (b) (d) 2,000 2,019
Entravision Communications
Corp., 6.030%, 03/29/13
(b) (d) 1,000 1,007
Gray Television, Inc.,
6.030%, 11/22/12 (b) (d) 1,995 2,007
Quebecor Media, 6.602%,
01/17/13 (b) (d) 1,000 1,013
</Table>
See Notes to Financial Statements.
95
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MEDIA--CONTINUED
San Juan Cable LLC,
6.840%, 10/31/12 (b) (d) 998 1,008
Time Warner Telecom, Inc.,
7.118%, 11/30/10 (b) (d) 1,995 2,025
----------
12,089
----------
OIL & GAS (0.2%)
Cheniere Energy, Inc.,
7.729%, 08/30/12 (b) (d) 997 1,006
Petroleum Geo-Services
ASA, 7.480%, 12/16/12
(b) (d) 1,995 2,019
----------
3,025
----------
PIPELINES (0.2%)
EL Paso Corp., 7.750%,
11/23/09 (b) (d) 996 1,007
MarkWest Energy Partners
LP, 7.014%, 12/29/10 (b)
(d) 1,000 1,008
----------
2,015
----------
RETAIL (0.2%)
Neiman Marcus Group, Inc.
(The), 7.340%, 04/06/13
(b) (d) 2,000 2,027
----------
TELECOMMUNICATIONS (0.6%)
Consolidated Communications,
Inc., 6.675%, 11/30/11
(b) (d) 2,000 2,016
Qwest Corp., 9.503%,
06/30/07 (b) (d) 4,000 4,099
Sorenson Communications,
Inc., 7.749%, 11/15/12
(b) (d) 1,975 2,002
----------
8,117
----------
Total Bank Loans (Cost
$58,017) 57,791
----------
CORPORATE BONDS (90.3%)
ADVERTISING (1.9%)
Lamar Media Corp., 6.625%,
08/15/15, Callable
08/15/10 @ 103.31 10,970 10,915
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ADVERTISING--CONTINUED
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @
105.44 (d) 918 1,018
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @
105.44 11,341 12,574
----------
24,507
----------
AEROSPACE/DEFENSE (1.4%)
Alliant Techsystems, Inc.,
6.750%, 04/01/16,
Callable 04/01/11 @
103.38 3,925 3,974
L-3 Communications Corp.,
7.625%, 06/15/12,
Callable 06/15/07 @
103.81 7,433 7,675
L-3 Communications Corp.,
Ser B, 6.375%, 10/15/15,
Callable 10/15/10 @
103.19 (e) 6,235 6,141
----------
17,790
----------
AUTO PARTS & EQUIPMENT (0.4%)
Goodyear Tire & Rubber Co.
(The), 9.000%, 07/01/15,
Callable 07/01/10 @
104.50 5,095 5,171
----------
BEVERAGES (0.3%)
Constellation Brands,
Inc., 8.625%, 08/01/06 4,340 4,383
----------
BUILDING MATERIALS (0.2%)
U.S. Concrete, Inc.,
8.375%, 04/01/14,
Callable 04/01/09 @
104.188 2,135 2,199
----------
CHEMICALS (3.8%)
Airgas, Inc., 9.125%,
10/01/11, Callable
10/01/06 @ 104.56 360 381
ARCO Chemical Co.,
10.250%, 11/01/10 4,455 4,789
Equistar Chemical Funding
Corp., 10.125%, 09/01/08 1,645 1,748
</Table>
See Notes to Financial Statements.
96
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CHEMICALS--CONTINUED
Equistar Chemicals LP,
10.625%, 05/01/11,
Callable 05/01/07 @
105.31 (e) 2,660 2,879
Ethyl Corp., 8.875%,
05/01/10 2,435 2,526
FMC Corp., Ser A, 7.000%,
05/15/08 1,057 1,081
Hercules, Inc., 11.125%,
11/15/07 1,480 1,608
Huntsman International
LLC, 9.875%, 03/01/09 975 1,019
Huntsman International
LLC, 11.625%, 10/15/10,
Callable 10/15/07 @
105.81 5,985 6,778
Huntsman International
LLC, 11.500%, 07/15/12,
Callable 07/15/08 @
105.75 1,230 1,415
IMC Global, Inc., 10.875%,
08/01/13, Callable
08/01/08 @ 105.44 850 973
IMC Global, Inc., Ser B,
11.250%, 06/01/11,
Callable 06/01/06 @
105.625 275 293
Ineos Group Holdings PLC,
8.500%, 02/15/16,
Callable 02/15/11 @
104.25 (d) 8,350 7,932
Lyondell Chemical Co., Ser
A, 9.625%, 05/01/07 (e) 7,480 7,723
MacDermid, Inc., 9.125%,
07/15/11, Callable
07/15/06 @ 104.56 650 686
Nalco Co., 7.750%,
11/15/11, Callable
11/15/07 @ 103.88 (e) 610 618
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CHEMICALS--CONTINUED
Rockwood Specialties
Group, Inc., 10.625%,
05/15/11, Callable
05/15/07 @ 105.31 2,679 2,940
Rockwood Specialties
Group, Inc., 7.500%,
11/15/14, Callable
11/15/09 @ 103.75 (e) 2,000 2,010
----------
47,399
----------
COMMERCIAL SERVICES (1.6%)
Alderwoods Group, Inc.,
7.750%, 09/15/12,
Callable 09/15/08 @
103.88 2,050 2,106
Ashtead Holdings PLC,
8.625%, 08/01/15,
Callable 08/01/10 @
104.31 (d) 2,055 2,137
Corrections Corp. of
America, 7.500%,
05/01/11, Callable
05/01/07 @ 103.75 7,735 7,968
Corrections Corp. of
America, 6.250%,
03/15/13, Callable
03/15/09 @ 103.13 1,000 984
Hanover Compressor Co.,
7.500%, 04/15/13,
Callable 04/15/10 @
103.75 1,225 1,225
Hertz Corp. (The), 8.875%,
01/01/14, Callable
01/01/10 @ 104.44 (d) 3,545 3,678
United Rentals NA, Inc.,
6.500%, 02/15/12,
Callable 02/15/08 @
103.25 1,939 1,900
----------
19,998
----------
</Table>
See Notes to Financial Statements.
97
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COMPUTERS (0.8%)
Activant Solutions, Inc.,
10.500%, 06/15/11,
Callable 06/15/07 @
105.25 975 1,080
Seagate Technology HDD
Holdings, 8.000%,
05/15/09, Callable
05/15/06 @ 104 3,684 3,826
SunGard Data Systems,
Inc., 9.125%, 08/15/13,
Callable 08/15/09 @
104.56 (d) 2,490 2,633
SunGard Data Systems,
Inc., 9.431%, 08/15/13,
Callable 08/15/07 @ 103
(b) (d) (e) 1,865 1,968
----------
9,507
----------
DIVERSIFIED FINANCIAL SERVICES (1.9%)
AES Ironwood LLC, 8.857%,
11/30/25 929 1,040
AES Red Oak LLC, Ser A,
8.540%, 11/30/19 1,347 1,468
AES Red Oak LLC, Ser B,
9.200%, 11/30/29 2,200 2,475
BCP Crystal US Holdings
Corp., 9.625%, 06/15/14,
Callable 06/15/09 @
104.81 3,410 3,777
CCM Merger, Inc., 8.000%,
08/01/13, Callable
08/01/09 @ 104 (d) (e) 1,470 1,463
Galaxy Entertainment
Finance Co. Ltd.,
9.655%, 12/15/10,
Callable 12/15/08 @
101.50 (b) (d) (e) 1,375 1,430
Galaxy Entertainment
Finance Co. Ltd.,
9.875%, 12/15/12,
Callable 12/15/09 @
104.94 (d) 3,340 3,478
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Rainbow National Services
LLC, 8.750%, 09/01/12,
Callable 09/01/08 @
104.38 (d) 6,838 7,282
Rainbow National Services
LLC, 10.375%, 09/01/14,
Callable 09/01/09 @
105.19 (d) 1,485 1,663
----------
24,076
----------
DIVERSIFIED OPERATIONS (0.6%)
Leucadia National Corp.,
7.000%, 08/15/13 4,190 4,201
Nell AF SARL, 8.375%,
08/15/15, Callable
08/15/10 @ 104.19 (d)
(e) 3,710 3,682
----------
7,883
----------
ELECTRIC (12.9%)
AES Corp. (The), 8.750%,
05/15/13, Callable
05/15/08 @ 104.38 (d) 7,977 8,615
Allegheny Energy Supply
Co. LLC, 7.800%,
03/15/11 1,475 1,569
Allegheny Energy Supply
Co. LLC, 8.250%,
04/15/12 (d) 10,045 11,012
Aquila, Inc., 9.950%,
02/01/11 2,005 2,221
Aquila, Inc., 14.875%,
07/01/12 (e) 3,585 4,849
CMS Energy Corp., 9.875%,
10/15/07 1,220 1,298
CMS Energy Corp., 8.900%,
07/15/08 1,295 1,376
CMS Energy Corp., 7.500%,
01/15/09 3,505 3,606
Edison Mission Energy,
10.000%, 08/15/08 490 524
Edison Mission Energy,
7.730%, 06/15/09 4,000 4,100
Edison Mission Energy,
9.875%, 04/15/11 (e) 7,025 7,938
FirstEnergy Corp., Ser C,
7.375%, 11/15/31 (e) 1,050 1,166
FPL Energy National Wind,
6.125%, 03/25/19 (d) 2,261 2,197
</Table>
See Notes to Financial Statements.
98
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ELECTRIC--CONTINUED
FPL Energy Wind Funding
LLC, 6.876%,
06/27/17 (d) 3,179 3,179
General Cable Corp.,
9.500%, 11/15/10,
Callable 11/15/07 @
104.75 4,408 4,761
Inergy LP, 8.250%,
03/01/16, Callable
03/01/11 @ 104.13 (d) 2,295 2,352
IPALCO Enterprises, Inc.,
8.375%, 11/14/08 5,000 5,225
Legrand Holding SA,
8.500%, 02/15/25 550 674
Midwest Generation LLC,
8.750%, 05/01/34,
Callable 05/01/09 @
104.38 (e) 686 743
Midwest Generation LLC,
Ser A, 8.300%, 07/02/09 3,350 3,462
Midwest Generation LLC,
Ser B, 8.560%, 01/02/16 9,701 10,457
Mirant Americas Generation
LLC, 8.300%,
05/01/11 (e) 6,910 7,152
Mirant Americas Generation
LLC, 8.500%, 10/01/21 425 432
Mirant Americas Generation
LLC, 9.125%,
05/01/31 (e) 3,650 3,887
MSW Energy Holdings LLC,
8.500%, 09/01/10,
Callable 09/01/07 @
104.25 4,450 4,717
MSW Energy Holdings LLC,
Ser B, 7.375%, 09/01/10,
Callable 09/01/07 @
103.69 6,341 6,531
Nevada Power Co., Ser A,
8.250%, 06/01/11 6,165 6,768
NRG Energy, Inc., 7.250%,
02/01/14, Callable
02/01/09 @ 107.25 2,850 2,896
NRG Energy, Inc., 7.375%,
02/01/16, Callable
02/01/11 @ 103.69 (e) 12,910 13,185
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ELECTRIC--CONTINUED
PSEG Energy Holdings LLC,
8.625%, 02/15/08 12,420 12,949
PSEG Energy Holdings LLC,
10.000%, 10/01/09 946 1,048
Sierra Pacific Power Co.,
6.000%, 05/15/16 (d) 1,010 996
Sierra Pacific Power Co.,
Ser A, 8.000%, 06/01/08 250 260
Sierra Pacific Resources,
7.803%, 06/15/12,
Callable 06/15/09 @
103.90 2,089 2,193
Sithe/Independence Funding
Corp., Ser A, 8.500%,
06/30/07 1,091 1,108
Sithe/Independence Funding
Corp., Ser A, 9.000%,
12/30/13 6,300 6,803
TECO Energy, Inc., 6.680%,
05/01/10, Callable
05/01/07 @ 102 (b) 2,310 2,379
TECO Energy, Inc., 7.200%,
05/01/11 605 631
Tenaska Alabama Partners
LP, 7.000%, 06/30/21 (d) 3,547 3,558
TXU Corp., Ser O, 4.800%,
11/15/09 3,340 3,209
TXU Corp., Ser P, 5.550%,
11/15/14 1,065 996
----------
163,022
----------
ELECTRONICS (0.5%)
Fisher Scientific
Instrument, Inc.,
6.125%, 07/01/15 3,555 3,470
Fisher Scientific
International, Inc.,
6.750%, 08/15/14,
Callable 08/15/09 @
103.38 2,440 2,480
----------
5,950
----------
ENERGY -- ALTERNATIVE SERVICES (0.2%)
Salton Sea Funding Corp.,
Ser C, 7.840%, 05/30/10 1,423 1,463
Salton Sea Funding Corp.,
Ser F, 7.475%, 11/30/18 1,150 1,215
----------
2,678
----------
</Table>
See Notes to Financial Statements.
99
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ENTERTAINMENT (1.6%)
Capitol Records, Inc.,
8.375%, 08/15/09 (d) 6,908 7,270
Isle of Capri Casinos,
Inc., 9.000%, 03/15/12,
Callable 03/15/07 @
104.50 2,705 2,871
Seneca Gaming Corp., Ser
B, 7.250%, 05/01/12,
Callable 05/01/08 @
103.63 1,570 1,586
Warner Music Group Corp.,
7.375%, 04/15/14,
Callable 04/15/09 @
103.69 6,572 6,506
WMG Holdings Corp.,
10.054%, 12/15/14,
Callable 12/15/09 @
104.75 (c) (e) (g) 2,063 1,519
----------
19,752
----------
ENVIRONMENT CONTROL (0.3%)
Allied Waste North
America, Inc., Ser B,
8.500%, 12/01/08 1,055 1,109
Casella Waste Systems,
Inc., 9.750%, 02/01/13,
Callable 02/01/08 @
104.88 2,825 3,023
----------
4,132
----------
FOOD (2.3%)
Dean Foods Co., 8.150%,
08/01/07 8,277 8,442
Del Monte Corp., 8.625%,
12/15/12, Callable
12/15/07 @ 104.31 1,877 1,983
Delhaize America, Inc.,
8.125%, 04/15/11 2,730 2,947
Delhaize America, Inc.,
9.000%, 04/15/31 615 711
Pinnacle Foods Holding
Corp., 8.250%, 12/01/13,
Callable 12/01/08 @
104.12 2,150 2,129
Smithfield Foods, Inc.,
Ser B, 8.000%, 10/15/09 3,370 3,513
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FOOD--CONTINUED
Stater Brothers Holdings,
Inc., 8.125%, 06/15/12,
Callable 06/15/08 @
104.06 1,960 1,958
Swift & Co., 10.125%,
10/01/09, Callable
10/01/06 @ 105.06 3,580 3,723
United Agri Products,
Inc., 8.250%, 12/15/11,
Callable 12/15/07 @
104.12 3,055 3,177
----------
28,583
----------
FOREST PRODUCTS & PAPER (1.7%)
Appleton Papers, Inc.,
8.125%, 06/15/11,
Callable 06/15/08 @
104.06 1,160 1,166
Appleton Papers, Inc., Ser
B, 9.750%, 06/15/14,
Callable 06/15/09 @
104.88 4 4
Boise Cascade LLC, 7.475%,
10/15/12, Callable
10/15/06 @ 101 (b) 1,045 1,058
Boise Cascade LLC, 7.125%,
10/15/14, Callable
10/15/09 @ 103.56 425 409
Georgia-Pacific Corp.,
8.125%, 05/15/11 11,134 11,579
Georgia-Pacific Corp.,
9.500%, 12/01/11 6,219 6,810
----------
21,026
----------
GAS (0.4%)
Colorado Interstate Gas
Co., 5.950%, 03/15/15 1,595 1,531
Colorado Interstate Gas
Co., 6.800%,
11/15/15 (d) 3,890 3,957
----------
5,488
----------
HEALTHCARE -- PRODUCTS (0.2%)
Sybron Dental Specialties,
Inc., 8.125%, 06/15/12,
Callable 06/15/07 @
104.06 2,592 2,735
----------
</Table>
See Notes to Financial Statements.
100
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTHCARE -- SERVICES (3.3%)
Coventry Health Care,
Inc., 5.875%, 01/15/12 1,430 1,416
Coventry Health Care,
Inc., 8.125%, 02/15/12,
Callable 02/15/07 @
104.06 5,478 5,752
Coventry Health Care,
Inc., 6.125%, 01/15/15 1,115 1,109
DaVita, Inc., 6.625%,
03/15/13, Callable
03/15/09 @ 103.31 3,960 3,950
HCA, Inc., 5.500%,
12/01/09 7,415 7,224
HCA, Inc., 8.750%,
09/01/10 5,983 6,490
HCA, Inc., 7.875%,
02/01/11 6,882 7,242
HCA, Inc., 7.500%,
11/15/95 6,001 5,262
Triad Hospitals, Inc.,
7.000%, 05/15/12,
Callable 05/15/08 @
103.50 2,790 2,790
----------
41,235
----------
HOLDING COMPANIES -- DIVERSIFIED (0.0%)
Leucadia National Corp.,
8.650%, 01/15/27,
Callable 01/15/07 @
104.28 135 140
----------
HOME BUILDERS (0.1%)
Pulte Homes, Inc., 8.125%,
03/01/11 540 583
Pulte Homes, Inc., 7.875%,
08/01/11 695 751
----------
1,334
----------
INSURANCE (0.8%)
AFC Capital Trust I, Ser
B, 8.207%, 02/03/27 4,252 4,405
Markel Capital Trust I,
Ser B, 8.710%, 01/01/46,
Callable 01/01/07 @
104.36 4,025 4,203
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INSURANCE--CONTINUED
Markel Corp., 7.350%,
08/15/34 1,060 1,093
UnumProvident Corp.,
7.625%, 03/01/11 870 923
----------
10,624
----------
LEISURE TIME (0.2%)
Royal Caribbean Cruises
Ltd., 8.750%, 02/02/11 1,705 1,882
Royal Caribbean Cruises
Ltd., 6.875%, 12/01/13 1,140 1,172
----------
3,054
----------
LODGING (5.8%)
Aztar Corp., 9.000%,
08/15/11, Callable
08/15/06 @ 104.50 1,410 1,490
Boyd Gaming Corp., 8.750%,
04/15/12, Callable
04/15/07 @ 104.38 (e) 3,815 4,073
Boyd Gaming Corp., 7.750%,
12/15/12, Callable
12/15/07 @ 103.88 (e) 3,560 3,729
Caesars Entertainment,
Inc., 9.375%, 02/15/07 1,855 1,913
Caesars Entertainment,
Inc., 8.875%, 09/15/08 1,700 1,819
Caesars Entertainment,
Inc., 7.875%, 03/15/10 300 319
Caesars Entertainment,
Inc., 8.125%,
05/15/11 (e) 8,611 9,364
Chumash Casino & Resort
Enterprise, 9.000%,
07/15/10, Callable
07/15/06 @ 104.50 (d) 3,073 3,250
Gaylord Entertainment Co.,
8.000%, 11/15/13,
Callable 11/15/08 @ 104 1,530 1,595
Gaylord Entertainment Co.,
6.750%, 11/15/14,
Callable 11/15/09 @
103.38 1,360 1,326
Hilton Hotels Corp.,
8.250%, 02/15/11 4,165 4,508
Mandalay Resort Group, Ser
B, 10.250%, 08/01/07 10,956 11,531
</Table>
See Notes to Financial Statements.
101
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
LODGING--CONTINUED
MGM Mirage, Inc., 9.750%,
06/01/07 6,965 7,252
MGM Mirage, Inc., 8.500%,
09/15/10 13,794 14,759
Station Casinos, Inc.,
6.000%, 04/01/12,
Callable 04/01/08 @
102.25 4,267 4,208
Wynn Las Vegas LLC,
6.625%, 12/01/14,
Callable 12/01/09 @
103.31 1,385 1,345
----------
72,481
----------
MACHINERY DIVERSIFIED (0.6%)
Case New Holland, Inc.,
9.250%, 08/01/11,
Callable 08/01/07 @
104.62 1,355 1,446
Case New Holland, Inc.,
7.125%, 03/01/14,
Callable 03/01/10 @
103.56 (d) 1,295 1,279
Chart Industries, Inc.,
9.125%, 10/15/15,
Callable 10/15/10 @
104.56 (d) 2,125 2,194
NMGH Holding Co., 10.000%,
05/15/09, Callable
05/15/06 @ 105 2,685 2,820
----------
7,739
----------
MEDIA (9.5%)
AT&T Broadband, 8.375%,
03/15/13 1,867 2,100
Block Communications,
Inc., 8.250%, 12/15/15,
Callable 12/15/10 @
104.13 (d) 1,715 1,681
Cablevision Systems Corp.,
Ser B, 8.000%,
04/15/12 (e) 2,555 2,491
CanWest Media, Inc.,
8.000%, 09/15/12,
Callable 09/15/11 @ 100 4,527 4,640
Clear Channel
Communications, Inc.,
7.650%, 09/15/10 1,635 1,718
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MEDIA--CONTINUED
Clear Channel
Communications, Inc.,
6.250%, 03/15/11 1,500 1,488
CSC Holdings, Inc.,
7.000%, 04/15/12 (d) 1,330 1,300
CSC Holdings, Inc., Ser B,
8.125%, 07/15/09 (e) 5,070 5,241
CSC Holdings, Inc., Ser B,
8.125%, 08/15/09 2,025 2,091
Dex Media East Finance
Co., 9.875%, 11/15/09,
Callable 11/15/06 @
104.94 1,270 1,356
Dex Media East Finance
Co., 12.125%, 11/15/12,
Callable 11/15/07 @
106.06 3,970 4,536
Dex Media West Finance,
Ser B, 9.875%, 08/15/13,
Callable 08/15/08 @
104.94 6,200 6,859
DirecTV Holdings LLC,
8.375%, 03/15/13,
Callable 03/15/08 @
104.19 17,130 18,285
EchoStar DBS Corp.,
5.750%, 10/01/08 4,600 4,554
EchoStar DBS Corp.,
6.375%, 10/01/11 2,565 2,507
EchoStar DBS Corp.,
7.125%, 02/01/16,
Callable 10/01/06 @ 100
(d) 9,460 9,306
Gray Television, Inc.,
9.250%, 12/15/11,
Callable 12/15/06 @
104.62 5,662 6,002
Houghton Mifflin Co.,
8.250%, 02/01/11,
Callable 02/01/07 @
104.12 3,745 3,876
Kabel Deutschland Gmbh,
10.625%, 07/01/14,
Callable 07/01/09 @
105.31 (d) 3,775 4,030
Liberty Media Corp.,
7.750%, 07/15/09 270 283
</Table>
See Notes to Financial Statements.
102
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MEDIA--CONTINUED
Liberty Media Corp.,
7.875%, 07/15/09 2,600 2,736
LIN Television Corp., Ser
B, 6.500%, 05/15/13,
Callable 05/15/08 @
103.25 2,305 2,167
Morris Publishing Group
LLC, 7.000%, 08/01/13,
Callable 08/01/08 @
103.50 1,010 953
Quebecor Media, Inc.,
7.750%, 03/15/16,
Callable 03/15/11 @
103.875 (d) 3,525 3,622
Quebecor World Capital
Corp., 8.750%, 03/15/16,
Callable 03/15/11 @
104.375 (d) 2,020 1,970
Radio One, Inc., Ser B,
8.875%, 07/01/11,
Callable 07/01/06 @
104.44 2,900 3,045
Readers-Digest
Association, Inc.,
6.500%, 03/01/11,
Callable 03/01/08 @
103.25 6,176 6,161
Rogers Cable, Inc.,
7.875%, 05/01/12 3,761 4,024
Rogers Cable, Inc.,
6.250%, 06/15/13 270 267
Rogers Cable, Inc.,
8.750%, 05/01/32 920 1,090
Shaw Communications, Inc.,
8.250%, 04/11/10 1,455 1,546
Sinclair Broadcast Group,
Inc., 8.750%, 12/15/11,
Callable 12/15/06 @
104.375 3,350 3,522
Sinclair Broadcast Group,
Inc., 8.000%, 03/15/12,
Callable 03/15/07 @ 104 3,750 3,825
----------
119,272
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MISCELLANEOUS MANUFACTURER (0.3%)
Koppers, Inc., 9.875%,
10/15/13, Callable
10/15/08 @ 104.94 2,201 2,410
Samsonite Corp., 8.875%,
06/01/11, Callable
06/01/08 @ 104.44 1,180 1,248
----------
3,658
----------
OFFICE/BUSINESS EQUIPMENT (1.7%)
Xerox Capital Trust I,
8.000%, 02/01/27,
Callable 02/01/07 @
102.45 (e) 1,450 1,501
Xerox Corp., 9.750%,
01/15/09 14,129 15,453
Xerox Corp., 7.125%,
06/15/10 1,440 1,490
Xerox Corp., 6.875%,
08/15/11 3,415 3,505
----------
21,949
----------
OIL & GAS (11.1%)
Chesapeake Energy Corp.,
7.500%, 09/15/13,
Callable 09/15/08 @
103.75 11,732 12,260
Chesapeake Energy Corp.,
7.500%, 06/15/14,
Callable 06/15/09 @
103.75 7,384 7,735
Chesapeake Energy Corp.,
7.750%, 01/15/15,
Callable 01/15/08 @
103.88 (e) 2,770 2,895
Chesapeake Energy Corp.,
6.375%, 06/15/15,
Callable 12/15/09 @
103.19 910 895
Chesapeake Energy Corp.,
6.500%, 08/15/17 8,655 8,547
Chesapeake Energy Corp.,
6.875%, 11/15/20 (d) 1,830 1,844
Compagnie Generale de
Geophysique SA, 7.500%,
05/15/15, Callable
05/15/10 @ 103.75 (d) 1,090 1,123
</Table>
See Notes to Financial Statements.
103
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OIL & GAS--CONTINUED
Compagnie Gererale de
Geophysique SA, 7.500%,
05/15/15, Callable
05/15/10 @ 103.75 1,890 1,947
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @
103.813 (d) 2,060 2,060
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @
103.813 2,915 2,915
Denbury Resources, Inc.,
7.500%, 12/15/15,
Callable 12/15/10 @
103.75 1,170 1,217
Encore Acquisition Co.,
6.000%, 07/15/15,
Callable 07/15/10 @ 103 4,925 4,593
Encore Acquisition Co.,
7.250%, 12/01/17,
Callable 12/01/10 @
103.63 745 747
Enterprise Products
Operating LP, 7.500%,
02/01/11 4,415 4,713
Enterprise Products
Operating LP, Ser B,
5.600%, 10/15/14 8,080 7,835
Enterprise Products
Operating LP, Ser B,
5.000%, 03/01/15 5,325 4,941
Enterprise Products
Operating LP, Ser B,
6.650%, 10/15/34 2,450 2,434
EXCO Resources, Inc.,
7.250%, 01/15/11,
Callable 01/15/07 @
105.44 2,883 2,869
Forest Oil Corp., 8.000%,
06/15/08 4,684 4,860
Forest Oil Corp., 8.000%,
12/15/11 3,913 4,206
Kerr-McGee Corp., 6.875%,
09/15/11 14,630 15,295
Kerr-McGee Corp., 6.950%,
07/01/24 8,695 8,845
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OIL & GAS--CONTINUED
Pioneer Natural Resource
Co., 5.875%, 07/15/16 4,025 3,814
Premcor Refining Group,
Inc. (The), 9.250%,
02/01/10, Callable
02/01/07 @ 104.63 6,702 7,231
Premcor Refining Group,
Inc. (The), 6.750%,
02/01/11 2,737 2,852
Premcor Refining Group,
Inc. (The), 6.125%,
05/01/11 911 926
Quicksilver Resources,
Inc., 7.125%, 04/01/16,
Callable 04/01/11 @
103.56 3,255 3,214
Range Resources Corp.,
7.375%, 07/15/13,
Callable 07/15/08 @
103.69 1,650 1,708
Tesoro Corp., 6.625%,
11/01/15, Callable
11/01/10 @ 103.31 (d) 4,355 4,311
Western Oil Sands, Inc.,
8.375%, 05/01/12 9,459 10,499
----------
139,331
----------
OIL & GAS SERVICES (0.4%)
Hanover Compressor Co.,
8.625%, 12/15/10,
Callable 12/15/07 @
104.31 1,795 1,883
Hanover Equipment Trust
01, Ser B, 8.750%,
09/01/11, Callable
09/01/06 @ 104.38 3,571 3,736
----------
5,619
----------
PACKAGING & CONTAINERS (1.2%)
Ball Corp., 6.875%,
12/15/12, Callable
12/15/07 @ 103.44 450 460
Ball Corp., 6.625%,
03/15/18, Callable
03/15/11 @ 103.31 2,565 2,552
</Table>
See Notes to Financial Statements.
104
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PACKAGING & CONTAINERS--CONTINUED
Crown Americas, Inc.,
7.625%, 11/15/13,
Callable 11/15/09 @
103.81 (d) (e) 3,845 3,980
Crown Cork & Seal Co.,
Inc., 8.000%, 04/15/23,
Callable 04/15/06 @
102.67 (e) 780 751
Owens-Brockway Glass
Container, Inc., 8.875%,
02/15/09, Callable
02/15/06 @ 104.44 3,910 4,071
Silgan Holdings, Inc.,
6.750%, 11/15/13,
Callable 11/15/08 @
103.38 3,000 3,000
----------
14,814
----------
PIPELINES (6.6%)
Atlas Pipeline Partners
LP, 8.125%, 12/15/15,
Callable 12/15/10 @
104.06 (d) 1,575 1,642
Copano Energy LLC, 8.125%,
03/01/16, Callable
03/01/11 @ 104.0625 (d) 1,290 1,335
Duke Capital LLC, 6.250%,
02/15/13 1,460 1,497
Dynegy Holdings, Inc.,
9.875%, 07/15/10,
Callable 07/15/07 @
104.94 (d) 7,890 8,678
Dynegy Holdings, Inc.,
10.125%, 07/15/13,
Callable 07/15/08 @
105.06 (d) 5,104 5,848
El Paso Natural Gas Co.,
8.625%, 01/15/22 3,800 4,324
El Paso Natural Gas Co.,
8.375%, 06/15/32 3,760 4,251
El Paso Natural Gas Co.,
Ser A, 7.625%, 08/01/10,
Callable 08/01/07 @
103.81 8,565 8,929
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PIPELINES--CONTINUED
MarkWest Energy Partners
LP, Ser B, 6.875%,
11/01/14, Callable
11/01/09 @ 103.44 2,080 1,966
Southern Natural Gas Co.,
6.125%, 09/15/08 1,950 1,945
Southern Natural Gas Co.,
8.000%, 03/01/32 2,985 3,274
Targa Resources, Inc.,
8.500%, 11/01/13,
Callable 11/01/09 @
104.25 (d) (e) 2,355 2,449
Tennessee Gas Pipeline
Co., 7.500%, 04/01/17 645 687
Tennessee Gas Pipeline
Co., 8.375%, 06/15/32 1,480 1,689
Transcontinental Gas Pipe
Line Corp., Ser B,
8.875%, 07/15/12 1,015 1,157
Williams Cos., Inc. (The),
7.125%, 09/01/11 (e) 16,590 17,066
Williams Cos., Inc. (The),
8.125%, 03/15/12 (e) 6,220 6,679
Williams Cos., Inc. (The),
7.750%, 06/15/31 585 620
Williams Cos., Inc. (The),
8.750%, 03/15/32 7,619 8,914
----------
82,950
----------
REAL ESTATE (0.9%)
American Real Estate
Partners LP, 7.125%,
02/15/13, Callable
02/15/09 @ 103.56 4,720 4,650
CB Richard Ellis Group,
Inc., 9.750%, 05/15/10,
Callable 05/15/07 @
104.88 2,466 2,669
CB Richard Ellis Group,
Inc., 11.250%, 06/15/11,
Callable 06/15/06 @
105.63 3,265 3,485
----------
10,804
----------
REITS (2.5%)
Host Marriott Corp., Ser
G, 9.250%, 10/01/07 2,898 3,036
</Table>
See Notes to Financial Statements.
105
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REITS--CONTINUED
Host Marriott Corp., Ser
I, 9.500%, 01/15/07 7,545 7,752
Omega Healthcare
Investors, Inc., 7.000%,
04/01/14, Callable
04/01/09 @ 103.50 2,270 2,293
Omega Healthcare
Investors, Inc., 7.000%,
04/01/14, Callable
04/01/09 @ 103.50 (d) 2,700 2,727
Omega Healthcare
Investors, Inc., 7.000%,
01/15/16, Callable
01/15/11 @ 103.50 (d) 2,105 2,105
Rouse Co., 3.625%,
03/15/09 835 776
Rouse Co. (The), 8.000%,
04/30/09 3,725 3,889
Rouse Co. (The), 7.200%,
09/15/12 2,400 2,489
Ventas Realty LP, 6.750%,
06/01/10 1,825 1,843
Ventas Realty LP, 6.625%,
10/15/14, Callable
10/15/09 @ 103.31 1,505 1,505
Ventas Realty LP, 7.125%,
06/01/15, Callable
06/01/10 @ 103.56 1,565 1,608
Ventas Realty LP, 6.500%,
06/01/16, Callable
06/01/11 @ 103.25 (d) 990 985
----------
31,008
----------
RETAIL (1.0%)
AmeriGas Partners LP,
7.250%, 05/20/15,
Callable 05/20/10 @
103.63 (e) 2,445 2,445
J.C. Penney Co., Inc.,
8.000%, 03/01/10 1,065 1,147
J.C. Penney Co., Inc.,
9.000%, 08/01/12 1,245 1,426
Rite Aid Corp., 8.125%,
05/01/10, Callable
05/01/07 @ 104.06 625 638
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
RETAIL--CONTINUED
Rite Aid Corp., 9.500%,
02/15/11, Callable
02/15/07 @ 104.75 930 981
Rite Aid Corp., 7.500%,
01/15/15, Callable
01/15/10 @ 103.75 (e) 2,630 2,551
Suburban Propane Partners
LP, 6.875%, 12/15/13,
Callable 12/15/08 @
103.44 1,655 1,589
United Auto Group, Inc.,
9.625%, 03/15/12,
Callable 03/15/07 @
104.81 (e) 1,925 2,038
----------
12,815
----------
SEMICONDUCTORS (1.0%)
Advanced Micro Devices,
Inc., 7.750%, 11/01/12,
Callable 11/01/08 @
103.88 1,069 1,118
Avago Technologies Finance
Ltd., 10.320%, 06/01/13,
Callable 12/01/07 @ 102
(b) (d) 755 789
Avago Technologies, Inc.,
10.125%, 12/01/13,
Callable 12/01/09 @
105.06 (d) 1,500 1,611
Freescale Semiconductor,
Inc., 7.350%, 07/15/09,
Callable 07/15/06 @ 102
(b) (e) 2,933 3,006
Freescale Semiconductor,
Inc., 6.875%, 07/15/11,
Callable 07/15/08 @
103.44 2,685 2,745
Freescale Semiconductor,
Inc., 7.125%, 07/15/14,
Callable 07/15/09 @
103.56 3,525 3,658
----------
12,927
----------
</Table>
See Notes to Financial Statements.
106
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TELECOMMUNICATIONS (9.8%)
American Tower Corp.,
7.500%, 05/01/12,
Callable 05/01/08 @
103.75 500 524
AT&T Corp., 9.750%,
11/15/31 4,855 5,797
Citizens Communications
Co., 7.625%, 08/15/08 7,430 7,690
Citizens Communications
Co., 9.250%, 05/15/11 12,010 13,181
Citizens Communications
Co., 6.250%, 01/15/13 1,730 1,682
GCI, Inc., 7.250%,
02/15/14, Callable
02/15/09 @ 103.62 2,390 2,348
Inmarsat Finance II PLC,
7.522%, 11/15/12,
Callable 11/15/08 @
105.19 (c) (g) 2,630 2,236
Inmarsat Group Ltd.,
7.625%, 06/30/12,
Callable 03/01/08 @
103.81 4,733 4,851
Intelsat Bermuda Ltd.,
8.250%, 01/15/13,
Callable 01/15/09 @
104.13 10,360 10,541
National Cable PLC,
8.750%, 04/15/14,
Callable 04/15/09 @
104.38 (e) 6,314 6,472
PanAmSat Holding Corp.,
11.018%, 11/01/14,
Callable 11/01/09 @
105.19 (c) (g) 2,710 1,951
PanAmSat Holdings Corp.,
9.000%, 08/15/14,
Callable 08/15/09 @
104.50 4,675 4,920
Qwest Communications
International, Inc.,
8.249%, 02/15/09,
Callable 02/15/06 @ 102
(b) 3,360 3,436
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Qwest Communications
International, Inc.,
7.250%, 02/15/11,
Callable 02/15/08 @
103.62 (e) 2,150 2,204
Qwest Corp., 7.875%,
09/01/11 14,190 15,147
Qwest Corp., 8.875%,
03/15/12 865 967
Qwest Corp., 8.160%,
06/15/13 (b) (e) 3,000 3,300
Qwest Corp., 7.625%,
06/15/15 2,900 3,103
Rogers Wireless, Inc.,
8.035%, 12/15/10,
Callable 12/15/06 @ 102
(b) 2,295 2,370
Rogers Wireless, Inc.,
9.625%, 05/01/11 1,358 1,560
Rogers Wireless, Inc.,
7.250%, 12/15/12 7,435 7,835
Rogers Wireless, Inc.,
6.375%, 03/01/14 10,975 10,948
Rogers Wireless, Inc.,
7.500%, 03/15/15 (e) 600 644
Rogers Wireless, Inc.,
9.750%, 06/01/16 3,770 4,599
U.S. West Communications,
5.625%, 11/15/08 (e) 2,255 2,238
Valor Telecommunications
Enterprise LLC, 7.750%,
02/15/15, Callable
02/15/10 @ 103.88 2,580 2,703
----------
123,247
----------
TRANSPORTATION (0.5%)
CHC Helicopter Corp.,
7.375%, 05/01/14,
Callable 05/01/09 @
103.69 3,657 3,730
</Table>
See Notes to Financial Statements.
107
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SEIX HIGH YIELD FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TRANSPORTATION--CONTINUED
Petroleum Helicopters,
Inc., Ser B, 9.375%,
05/01/09, Callable
05/01/06 @ 104.69 2,435 2,554
----------
6,284
----------
Total Corporate Bonds (Cost
$1,145,690) 1,137,565
----------
U.S. TREASURY OBLIGATIONS (3.3%)
U.S. TREASURY NOTES (3.3%)
4.500%, 11/15/15 (e) 43,030 41,756
----------
Total U.S. Treasury
Obligations (Cost $42,835) 41,756
----------
SHORT-TERM INVESTMENTS (9.0%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (f) 112,889,480 112,889
----------
Total Short-Term Investments
(Cost $112,889) 112,889
----------
MONEY MARKET FUNDS (0.1%)
Federated Prime Obligation
Money Market Fund 1,187,671 1,188
----------
Total Money Market Funds
(Cost $1,188) 1,188
----------
REPURCHASE AGREEMENT (2.0%)
Lehman Brothers, Inc.,
4.755%, dated 03/31/06,
to be repurchased on
04/03/06, repurchase
price $25,706,484
(collateralized by U.S.
Government Agencies, DN,
due 12/01/34; total
market value
$26,211,309) 25,696 25,696
----------
Total Repurchase Agreement
(Cost $25,696) 25,696
----------
Total Investments (Cost $1,386,315) (a)--
109.3% 1,376,885
Liabilities in excess of
other assets -- (9.3)% (117,101)
----------
Net Assets -- 100.0% $1,259,784
==========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $1,386,632
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................. $ 9,017
Unrealized Depreciation................. (18,765)
--------
Unrealized Appreciation
(Depreciation)........................ $ (9,748)
========
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $107,738.
(f)This security was purchased with cash collateral held
from securities lending.
(g)Step bond.
(h)This security has not settled as of March 31, 2006 and
thus does not have a rate in effect. The security does not have a stated
settlement date and will receive a rate upon settling with the custodian.
DN -- Discount Note
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
108
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SHORT-TERM BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ASSET BACKED SECURITIES (6.8%)
AUTOMOBILE ABS (5.6%)
Capital Auto Receivables
Asset Trust, Ser 2006-1, Cl
A3, 5.030%, 10/15/09 3,315 3,301
Capital One Prime Auto
Receivable Trust, Ser
2005-1, Cl A3, 4.320%,
08/15/09 4,260 4,214
Daimler Chrysler Master Owner
Trust, Ser 2005-C, Cl A,
4.770%, 12/15/10 (b) 3,125 3,127
Honda Auto Receivables Owner
Trust, Ser 2005-6, Cl A3,
4.850%, 10/19/09 2,520 2,506
Nissan Auto Receivables Owner
Trust, Ser 2003-B, Cl A4,
2.050%, 03/16/09 1,625 1,589
USAA Auto Owner Trust, Ser
2004-1, Cl A3, 2.060%,
04/15/08 1,886 1,867
--------
16,604
--------
CREDIT CARD ABS (1.2%)
Citibank Credit Card Issuance
Trust, 2.550%, 01/20/09 3,525 3,452
--------
Total Asset Backed Securities
(Cost $20,195) 20,056
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (8.8%)
Adjustable Rate Mortgage
Trust, Ser 2005-1, Cl 2A22,
4.624%, 05/25/35 (b) 1,640 1,590
Bear Stearns Commercial
Mortgage Securities, Ser
2005-T20, Cl A1, 4.940%,
10/12/42 1,928 1,908
Countrywide Home Loans, Inc.,
Ser 2004-21, Cl A10,
6.000%, 11/25/34 1,529 1,515
First Horizon Alternative
Mortgage Securities, Ser
2005-AA3, Cl 2A1, 5.185%,
05/25/35 (b) 2,728 2,700
Indymac Inda Mortgage Loan
Trust, Ser 2005-AR1, Cl
2A1, 5.138%, 11/25/35 (b) 5,990 5,870
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
J.P. Morgan Chase Commercial
Mortgage Securities, Ser
2005-LDP1, Cl A2, 4.625%,
03/15/46 2,395 2,335
Morgan Stanley Capital I, Ser
2006-HQ8, Cl A1, 5.124%,
03/12/44 2,300 2,288
Wachovia Bank Commercial
Mortgage Trust, Ser
2005-C16, Cl A2, 4.380%,
10/15/41 3,635 3,515
Washington Mutual,
Ser 2005-AR4, Cl A1,
3.624%, 04/25/35 (b) 1,131 1,127
Wells Fargo Mortgage Backed
Securities Trust, Ser
2004-S, Cl A5, 3.540%,
09/25/34 (b) 3,225 3,067
--------
Total Collateralized Mortgage
Obligations (Cost $26,441) 25,915
--------
COMMERCIAL PAPERS (1.7%)
DIVERSIFIED FINANCIAL SERVICES (1.7%)
Goldman Sachs Group, Inc.
(The), 4.803%, 04/04/06 (e) 2,500 2,499
UBS Financial Delaware LLC,
4.832%, 04/03/06 (e) 2,450 2,449
--------
Total Commercial Papers (Cost
$4,948) 4,948
--------
CORPORATE BONDS (28.7%)
BANKS (3.6%)
Bank One Corp., 7.600%,
05/01/07 3,441 3,517
BankBoston Corp., 6.500%,
12/19/07 3,815 3,885
Wachovia Corp., 6.375%,
02/01/09 3,300 3,379
--------
10,781
--------
COMMERCIAL SERVICES (0.4%)
ERAC USA Finance Co., 7.350%,
06/15/08 (f) 1,125 1,168
--------
COSMETICS/PERSONAL CARE (0.3%)
Gillette Co. (The), 3.500%,
10/15/07, Callable 04/15/06
@ 100 873 852
--------
</Table>
See Notes to Financial Statements.
109
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SHORT-TERM BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (16.1%)
Bear Stearns & Co., Inc.
(The), 5.700%, 01/15/07 4,715 4,731
Capital One Financial Corp.,
8.750%, 02/01/07 770 791
CIT Group, Inc., 4.000%,
05/08/08 890 866
CIT Group, Inc., 4.250%,
02/01/10 2,340 2,240
Credit Suisse First Boston
USA, Inc., 6.500%, 06/01/08 2,455 2,509
General Electric Capital
Corp., 4.125%, 03/04/08 4,765 4,668
General Electric Capital
Corp., 4.875%, 10/21/10 1,700 1,665
Golden West Financial Corp.,
4.125%, 08/15/07 3,035 2,988
Goldman Sachs Group, Inc.
(The), 7.350%, 10/01/09 3,510 3,720
HSBC Finance Corp., 4.125%,
03/11/08 3,400 3,327
John Deere Capital Corp.,
3.900%, 01/15/08 3,130 3,055
Lehman Brothers, Inc.,
6.250%, 05/15/06 2,720 2,723
Merrill Lynch & Co., Inc.,
4.831%, 10/27/08 1,700 1,683
Merrill Lynch & Co., Inc.,
4.790%, 08/04/10 1,725 1,677
Morgan Stanley, 5.800%,
04/01/07 3,175 3,190
Salomon Smith Barney
Holdings, 6.500%, 02/15/08 3,705 3,787
SLM Corp., Ser A, 5.110%,
09/15/06 (b) 4,040 4,045
--------
47,665
--------
ELECTRIC (0.6%)
American Electric Power Co.,
Inc., Ser A, 6.125%,
05/15/06 339 339
Commonwealth Edison, Co.,
7.625%, 01/15/07 1,400 1,421
--------
1,760
--------
LODGING (0.5%)
Park Place Entertainment,
8.500%, 11/15/06 1,390 1,413
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MEDIA (0.4%)
Time Warner, Inc., 6.150%,
05/01/07 1,215 1,224
--------
MISCELLANEOUS MANUFACTURER (1.0%)
Honeywell International,
Inc., 7.500%, 03/01/10 2,850 3,059
--------
OIL & GAS (0.5%)
Devon Energy Corp., 2.750%,
08/01/06 1,450 1,437
--------
PIPELINES (0.3%)
Arkla, Inc., 8.900%, 12/15/06 860 879
--------
REITS (0.5%)
Simon Property Group LP,
6.375%, 11/15/07 1,500 1,522
--------
RETAIL (1.0%)
Home Depot, Inc. (The),
5.200%, 03/01/11 3,055 3,036
--------
TELECOMMUNICATIONS (3.5%)
Deutsche Telekom AG, 5.120%,
03/23/09 (b) 2,140 2,141
SBC Communications, Inc.,
4.951%, 11/14/08 (b) 2,180 2,184
SBC Communications, Inc.,
4.125%, 09/15/09 790 755
Telecom Italia Capital,
4.000%, 11/15/08 1,380 1,330
Verizon Global Funding Corp.,
6.125%, 06/15/07 1,753 1,768
Verizon Wireless, Inc.,
5.375%, 12/15/06 2,145 2,145
--------
10,323
--------
Total Corporate Bonds (Cost
$86,296) 85,119
--------
U.S. GOVERNMENT AGENCIES (20.6%)
FANNIE MAE (3.9%)
2.625%, 01/19/07 4,625 4,535
4.200%, 03/24/08 (c) 3,425 3,364
3.810%, 12/01/08 (b) 3,600 3,512
--------
11,411
--------
FEDERAL HOME LOAN BANK (2.1%)
3.750%, 01/16/07 (c) 6,135 6,070
--------
FREDDIE MAC (14.6%)
2.375%, 02/15/07 1,875 1,832
3.750%, 08/03/07 (c) 8,390 8,243
</Table>
See Notes to Financial Statements.
110
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SHORT-TERM BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FREDDIE MAC--CONTINUED
4.500%, 08/22/07, Callable
08/22/06 @ 100 (c) 13,520 13,390
5.050%, 12/08/08, Callable
12/08/06 @ 100 5,885 5,862
4.625%, 12/19/08 3,600 3,559
5.750%, 03/15/09 (c) 4,240 4,314
5.000%, 11/01/10, Callable
11/01/07 @ 100 6,280 6,176
--------
43,376
--------
Total U.S. Government Agencies
(Cost $61,607) 60,857
--------
U.S. GOVERNMENT AGENCY MORTGAGES (14.4%)
FANNIE MAE (8.8%)
7.030%, 08/01/07 695 704
6.805%, 11/01/07 2,995 3,017
6.070%, 10/01/08 2,127 2,136
6.575%, 07/01/09 2,417 2,475
6.850%, 08/01/09 3,443 3,552
6.955%, 10/01/10 (b) 2,838 2,978
4.000%, 12/01/14 3,875 3,663
5.000%, 11/25/26 2,531 2,510
5.626%, 09/01/33 (b) 1,238 1,246
5.589%, 10/01/33 (b) 1,498 1,531
4.337%, 03/01/34 (b) 2,500 2,440
--------
26,252
--------
FREDDIE MAC (5.2%)
4.000%, 07/01/08 2,131 2,083
3.750%, 12/15/11 2,104 2,037
4.500%, 08/15/19 119 116
5.000%, 12/15/20 3,663 3,646
4.500%, 10/15/28 2,806 2,734
4.273%, 03/01/34 (b) 2,648 2,589
4.972%, 04/01/34 (b) 2,119 2,094
--------
15,299
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.4%)
5.987%, 02/16/24 (b) 1,045 1,060
--------
Total U.S. Government Agency
Mortgages (Cost $43,740) 42,611
--------
U.S. TREASURY OBLIGATIONS (16.6%)
U.S. TREASURY NOTES (16.6%)
2.750%, 08/15/07 (c) 23,865 23,199
2.625%, 05/15/08 (c) 18,165 17,367
4.500%, 02/15/09 (c) 4,795 4,753
3.500%, 08/15/09 930 892
4.500%, 11/15/10 (c) 3,005 2,965
--------
Total U.S. Treasury Obligations
(Cost $49,714) 49,176
--------
SHORT-TERM INVESTMENTS (27.9%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (d) 82,595,788 82,596
--------
Total Short-Term Investments
(Cost $82,596) 82,596
--------
MONEY MARKET FUNDS (1.9%)
Federated Prime Value Money
Market Fund 5,649,658 5,650
--------
Total Money Market Funds (Cost
$5,650) 5,650
--------
Total Investments (Cost
$381,187) (a) -- 127.4% 376,928
Liabilities in excess of other
assets -- (27.4)% (81,025)
--------
Net Assets -- 100.0% $295,903
========
</Table>
See Notes to Financial Statements.
111
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SHORT-TERM BOND FUND -- CONCLUDED
- ---------------
(a)Cost for federal income tax purposes is $381,341
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 42
Unrealized Depreciation.................. (4,455)
-------
Unrealized Appreciation (Depreciation)... $(4,413)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $80,369.
(d)This security was purchased with cash collateral held
from securities lending.
(e)Rate represents the effective yield at purchase.
(f)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
Cl -- Class
LLC -- Limited Liability Corporation
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
Ser -- Series
See Notes to Financial Statements.
112
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
SHORT-TERM U.S. TREASURY SECURITIES FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
U.S. TREASURY OBLIGATIONS (98.6%)
U.S. TREASURY NOTES (98.6%)
2.750%, 06/30/06 1,000 995
7.000%, 07/15/06 1,000 1,006
2.375%, 08/31/06 1,000 990
2.500%, 09/30/06 1,000 989
2.500%, 10/31/06 1,000 987
2.875%, 11/30/06 1,000 987
6.250%, 02/15/07 2,000 2,023
4.375%, 05/15/07 5,000 4,973
3.625%, 06/30/07 7,000 6,894
2.750%, 08/15/07 8,000 7,777
4.000%, 08/31/07 6,000 5,930
3.000%, 11/15/07 6,000 5,828
4.250%, 11/30/07 7,000 6,933
3.375%, 02/15/08 8,000 7,792
3.750%, 05/15/08 8,000 7,828
4.375%, 11/15/08 7,500 7,414
4.125%, 08/15/10 1,000 972
4.500%, 11/15/10 3,000 2,960
4.250%, 01/15/11 5,000 4,876
-------
Total U.S. Treasury Obligations
(Cost $79,265) 78,154
-------
MONEY MARKET FUNDS (1.0%)
Federated U.S. Treasury Cash
Reserves Fund 800,873 801
-------
Total Money Market Funds (Cost
$801) 801
-------
Total Investments (Cost $80,066)
(a) -- 99.6% 78,955
Other assets in excess of
liabilities -- 0.4% 330
-------
Net Assets -- 100.0% $79,285
=======
</Table>
- ---------------
(a)Cost for federal income tax purposes is $80,173 (amount
in thousands). Unrealized appreciation/(depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ --
Unrealized Depreciation.................. (1,218)
-------
Unrealized Appreciation (Depreciation)... $(1,218)
=======
</Table>
See Notes to Financial Statements.
113
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
BANK LOANS (1.4%)
COMPUTERS (0.2%)
Stratus Technologies, Inc.,
13.830%, 03/15/12 (b) (d) 550 534
---------
ENERGY (0.2%)
Plum Point Associates LLC,
8.044%, 02/21/14 (b) (d) 107 108
Plum Point Associates LLC,
8.167%, 02/21/14 (b) (d) 443 446
---------
554
---------
TELECOMMUNICATIONS (1.0%)
Charter Communications
Operating LLC, 0.000%,
04/27/11 (b) (d) (h) 547 551
Qwest Corp., 9.503%,
06/30/07 (b) (d) 2,477 2,538
---------
3,089
---------
Total Bank Loans
(Cost $4,200) 4,177
---------
CORPORATE BONDS (29.3%)
ADVERTISING (0.2%)
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @ 105.44 575 638
---------
AUTO PARTS & EQUIPMENT (0.9%)
Goodyear Tire & Rubber Co.
(The), 9.000%, 07/01/15,
Callable 07/01/10 @ 104.50 2,450 2,487
---------
BUILDING MATERIALS (1.0%)
Nortek, Inc., 8.500%,
09/01/14, Callable
09/01/09 @ 104.25 1,310 1,333
U.S. Concrete, Inc., 8.375%,
04/01/14, Callable
04/01/09 @ 104.188 1,510 1,555
---------
2,888
---------
CHEMICALS (2.3%)
Equistar Chemical Funding
Corp., 10.125%, 09/01/08 500 531
Huntsman International LLC,
11.625%, 10/15/10,
Callable 10/15/07 @ 105.81 1,000 1,133
IMC Global, Inc., Ser B,
11.250%, 06/01/11,
Callable 06/01/06 @
105.625 20 21
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CHEMICALS--CONTINUED
Ineos Group Holdings PLC,
8.500%, 02/15/16, Callable
02/15/11 @ 104.25 (d) 1,945 1,848
Lyondell Chemical Co., Ser
A, 9.625%, 05/01/07 2,000 2,064
Rockwood Specialties Group,
Inc., 7.500%, 11/15/14,
Callable 11/15/09 @ 103.75
(e) 1,000 1,005
---------
6,602
---------
COMMERCIAL SERVICES (0.5%)
Ashtead Holdings PLC,
8.625%, 08/01/15, Callable
08/01/10 @ 104.31 (d) 1,398 1,454
---------
COMPUTERS (1.1%)
Activant Solutions, Inc.,
10.500%, 06/15/11,
Callable 06/15/07 @ 105.25 1,575 1,744
Sungard Data Systems, Inc.,
10.250%, 08/15/15,
Callable 08/15/10 @ 105.13
(d) (e) 1,290 1,358
---------
3,102
---------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
CCM Merger, Inc., 8.000%,
08/01/13, Callable
08/01/09 @ 104 (d) 95 95
Galaxy Entertainment Finance
Co. Ltd., 9.875%,
12/15/12, Callable
12/15/09 @ 104.94 (d) 120 125
General Motors Acceptance
Corp., 6.875%, 09/15/11 2,370 2,209
---------
2,429
---------
DIVERSIFIED OPERATIONS (0.8%)
Leucadia National Corp.,
7.000%, 08/15/13 500 501
Nell AF SARL, 8.375%,
08/15/15, Callable
08/15/10 @ 104.19 (d) (e) 1,825 1,812
---------
2,313
---------
</Table>
See Notes to Financial Statements.
114
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ELECTRIC (3.4%)
AES Corp. (The), 9.500%,
06/01/09 1,300 1,400
Allegheny Energy Supply Co.
LLC, 8.250%, 04/15/12 (d) 1,070 1,173
Aquila, Inc., 14.875%,
07/01/12 2,010 2,718
Edison Mission Energy,
10.000%, 08/15/08 750 803
Mirant Americas Generation
LLC, 8.300%, 05/01/11 400 414
Mirant Americas Generation
LLC, 8.500%, 10/01/21 150 153
Mirant Americas Generation
LLC, 9.125%, 05/01/31 125 133
Mission Energy Holdings Co.,
13.500%, 07/15/08 1,400 1,606
NRG Energy, Inc., 7.250%,
02/01/14, Callable
02/01/09 @ 107.25 940 955
Sithe/Independence Funding
Corp., Ser A, 9.000%,
12/30/13 750 810
---------
10,165
---------
ENTERTAINMENT (0.5%)
Six Flags, Inc., 9.625%,
06/01/14, Callable
06/01/09 @ 104.81 1,405 1,416
---------
FOOD (1.3%)
Pinnacle Foods Holding
Corp., 8.250%, 12/01/13,
Callable 12/01/08 @ 104.12 2,740 2,712
Stater Brothers Holdings,
Inc., 8.125%, 06/15/12,
Callable 06/15/08 @ 104.06 1,000 999
---------
3,711
---------
FOREST PRODUCTS & PAPER (1.1%)
Appleton Papers, Inc., Ser
B, 9.750%, 06/15/14,
Callable 06/15/09 @ 104.88 2,425 2,407
Boise Cascade LLC, 7.475%,
10/15/12, Callable
06/16/06 @ 102 (b) 900 911
---------
3,318
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HEALTHCARE -- PRODUCTS (0.9%)
Accellent, Inc., 10.500%,
12/01/13, Callable
12/01/09 @ 105.25 1,060 1,132
Universal Hospital Services,
Inc., 10.125%, 11/01/11,
Callable 11/01/07 @ 105.06 1,460 1,514
---------
2,646
---------
HEALTHCARE -- SERVICES (1.7%)
Skilled Healthcare Group,
11.000%, 01/15/14,
Callable 01/15/10 @ 105.50
(d) 1,290 1,342
Tenet Healthcare Corp.,
9.875%, 07/01/14 1,385 1,402
US Oncology Holdings, Inc.,
10.320%, 03/15/15,
Callable 03/15/07 @ 102
(b) 945 947
US Oncology, Inc., 10.750%,
08/15/14, Callable
03/15/07 @ 102 1,250 1,366
---------
5,057
---------
HOUSEHOLD PRODUCTS/WARES (0.5%)
Visant Holding Corp.,
8.750%, 12/01/13, Callable
12/01/08 @ 106.563 (d) 1,400 1,344
---------
LODGING (0.6%)
Mandalay Resort Group, Ser
B, 10.250%, 08/01/07 300 316
MGM Mirage, Inc., 9.750%,
06/01/07 1,386 1,443
---------
1,759
---------
MACHINERY DIVERSIFIED (1.0%)
Chart Industries, Inc.,
9.125%, 10/15/15, Callable
10/15/10 @ 104.56 (d) 1,250 1,291
NMGH Holding Co., 10.000%,
05/15/09, Callable
05/15/06 @ 105 1,500 1,575
---------
2,866
---------
MEDIA (4.5%)
Cablevision Systems Corp.,
Ser B, 8.000%,
04/15/12 (e) 1,340 1,307
CCH I LLC, 11.000%,
10/01/15, Callable
10/01/10 @ 105.50 1,570 1,305
</Table>
See Notes to Financial Statements.
115
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MEDIA--CONTINUED
Dex Media, Inc., 9.540%,
11/15/13, Callable
11/15/08 @ 104.50 (c) (g) 1,085 917
EchoStar DBS Corp., 7.125%,
02/01/16, Callable
10/01/06 @ 100 (d) 185 182
Houghton Mifflin Co.,
10.776%, 10/15/13 (c) (e)
(g) 1,545 1,317
Kabel Deutschland Gmbh,
10.625%, 07/01/14,
Callable 07/01/09 @ 105.31
(d) 2,200 2,348
LIN Television Corp., Ser B,
6.500%, 05/15/13, Callable
05/15/08 @ 103.25 750 705
Mediacom LLC, 9.500%,
01/15/13, Callable
01/15/07 @ 103.167 2,470 2,444
Morris Publishing Group LLC,
7.000%, 08/01/13, Callable
08/01/08 @ 103.50 1,320 1,246
Quebecor Media, Inc.,
7.750%, 03/15/16, Callable
03/15/11 @ 103.875 (d) 195 200
Quebecor World Capital
Corp., 8.750%, 03/15/16,
Callable 03/15/11 @
104.375 (d) 140 137
Sinclair Broadcast Group,
Inc., 8.750%, 12/15/11,
Callable 12/15/06 @
104.375 1,180 1,240
Sinclair Broadcast Group,
Inc., 8.000%, 03/15/12,
Callable 03/15/07 @ 104 35 36
---------
13,384
---------
MISCELLANEOUS MANUFACTURER (0.8%)
Clarke American Corp.,
11.750%, 12/15/13,
Callable 12/15/09 @ 105.88
(d) 1,610 1,638
Koppers, Inc., 9.875%,
10/15/13, Callable
10/15/08 @ 104.94 681 746
---------
2,384
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OIL & GAS (0.2%)
Compagnie Gererale de
Geophysique SA, 7.500%,
05/15/15, Callable
05/15/10 @ 103.75 120 124
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @
103.813 (d) 145 145
Compton Petroleum Finance
Corp., 7.625%, 12/01/13,
Callable 12/01/09 @
103.813 170 170
---------
439
---------
PACKAGING & CONTAINERS (0.2%)
Crown Cork & Seal Co., Inc.,
7.375%, 12/15/26 500 465
---------
PIPELINES (0.1%)
Copano Energy LLC, 8.125%,
03/01/16, Callable
03/01/11 @ 104.0625 (d) 50 52
Targa Resources, Inc.,
8.500%, 11/01/13, Callable
11/01/09 @ 104.25 (d) 105 109
---------
161
---------
REAL ESTATE (0.4%)
American Real Estate
Partners LP, 7.125%,
02/15/13, Callable
02/15/09 @ 103.56 420 414
CB Richard Ellis Group,
Inc., 9.750%, 05/15/10,
Callable 05/15/07 @ 104.88 750 812
---------
1,226
---------
REITS (0.3%)
Host Marriott Corp., Ser G,
9.250%, 10/01/07 750 785
Ventas Realty LP, 6.500%,
06/01/16, Callable
06/01/11 @ 103.25 (d) 65 65
---------
850
---------
RETAIL (0.5%)
Rite Aid Corp., 7.500%,
01/15/15, Callable
01/15/10 @ 103.75 1,500 1,455
---------
</Table>
See Notes to Financial Statements.
116
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
SEMICONDUCTORS (1.4%)
Avago Technologies Finance
Ltd., 10.320%, 06/01/13,
Callable 12/01/07 @ 102
(b) (d) 1,235 1,291
Avago Technologies Finance
Ltd., 11.875%, 12/01/15,
Callable 12/01/10 @
105.938 (d) (e) 1,320 1,432
Spansion LLC, 11.250%,
01/15/16, Callable
01/15/11 @ 105.62 (d) 1,345 1,291
---------
4,014
---------
SOFTWARE (0.5%)
SERENA Software, Inc.,
10.375%, 03/15/16,
Callable 03/15/11 @
105.188 (d) 1,330 1,397
---------
TELECOMMUNICATIONS (1.8%)
Nextel Communications, Inc.,
7.375%, 08/01/15, Callable
08/01/08 @ 103.69 1,750 1,835
PanAmSat Holdings Corp.,
9.000%, 08/15/14, Callable
08/15/09 @ 104.50 2,053 2,161
Valor Telecommunications
Enterprise LLC, 7.750%,
02/15/15, Callable
02/15/10 @ 103.88 1,275 1,336
---------
5,332
---------
Total Corporate Bonds (Cost
$84,468) 85,302
---------
FOREIGN GOVERNMENT BONDS (32.2%)
BRAZIL (0.3%)
Republic of Brazil, 7.875%,
03/07/15 (e) 685 739
---------
COLUMBIA (0.2%)
Republic of Colombia,
8.250%, 12/22/14 590 664
---------
FRANCE (EUR) (3.9%)
France Government, 3.000%,
10/25/15 9,900 11,240
---------
GERMANY (EUR) (4.0%)
Deutschland Republic, Ser
05, 4.000%, 01/04/37 9,760 11,824
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
JAPAN (YEN) (19.6%)
Japan Government, Ser 241,
0.300%, 02/15/08 3,186,050 26,916
Japan Government, Ser 52,
0.800%, 12/20/10 3,652,650 30,408
---------
57,324
---------
SPAIN (EUR) (3.9%)
Spanish Government, 3.150%,
01/31/16 9,880 11,327
---------
UKRAINE (0.3%)
Ukraine Government, 7.650%,
06/11/13 (d) 800 839
---------
Total Foreign Government Bonds
(Cost $94,906) 93,957
---------
PREFERRED STOCK (0.4%)
RETAIL (0.4%)
Rite Aid Corp., 5.500% 50,000 1,153
---------
Total Preferred Stock (Cost
$1,255) 1,153
---------
U.S. TREASURY OBLIGATIONS (34.8%)
U.S. TREASURY BONDS (3.5%)
4.500%, 02/15/36 (e) 10,725 10,063
---------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.9%)
1.625%, 01/15/15 14,575 14,284
---------
U.S. TREASURY NOTES (26.4%)
2.250%, 04/30/06 (e) 8,400 8,384
4.625%, 02/29/08 (e) 41,980 41,811
4.500%, 02/28/11 (e) 19,750 19,462
3.875%, 02/15/13 (e) 5,855 5,521
4.500%, 02/15/16 (e) 1,980 1,926
---------
77,104
---------
Total U.S. Treasury
Obligations (Cost $102,978) 101,451
---------
SHORT-TERM INVESTMENTS (35.5%)
Brown Brothers Harriman &
Co., Cayman Islands Cash
Sweep, 3.970% 14,301,265 14,301
</Table>
See Notes to Financial Statements.
117
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
STRATEGIC INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
SHORT-TERM INVESTMENTS--CONTINUED
CSFB Enhanced Liquidity
Portfolio, 5.006% (f) 89,171,960 89,171
---------
Total Short-Term Investments
(Cost $103,473) 103,472
---------
Total Investments (Cost
$391,280) (a) -- 133.6% 389,512
Liabilities in excess of other
assets -- (33.6)% (97,966)
---------
Net Assets -- 100.0% $ 291,546
=========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $391,164
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 1,610
Unrealized Depreciation.................. (3,259)
-------
Unrealized Appreciation (Depreciation)... $(1,649)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $86,496.
(f)This security was purchased with cash collateral held
from securities lending.
(g)Step bond.
(h)This security has not settled as of March 31, 2006 and
thus does not have a rate in effect. The security does not have a stated
settlement date and will receive a rate upon settling with the custodian.
EUR -- Principal Amount in Euro
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
YEN -- Principal Amount in Japanese Yen
At March 31, 2006, the Fund's foreign currency exchange contracts were as
follows:
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------
Contract Unrealized
Delivery Contract Amount Value in Market Appreciation/
Currency Date in Local Currency USD Value (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------
Short:
Swiss Franc 04/05/06 17,993 $13,798 $13,807 $(9)
------- ------- ---
Total Short Contracts $13,798 $13,807 $(9)
======= ======= ===
Long:
Japanese Yen 04/05/06 1,626,377 $13,826 $13,822 $(4)
------- ------- ---
Total Long Contracts $13,826 $13,822 $(4)
======= ======= ===
</Table>
See Notes to Financial Statements.
118
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TOTAL RETURN BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
ASSET BACKED SECURITIES (2.7%)
AUTOMOBILE ABS (0.6%)
Daimler Chrysler Auto Trust, Ser
2005-A, Cl A4, 3.740%,
02/08/10 300 292
Honda Auto Receivables Owner
Trust, Ser 2006-1, Cl A3,
5.070%, 09/18/09 130 130
-------
422
-------
CREDIT CARD ABS (0.7%)
MBNA Credit Card Master Trust,
Ser 2002-A13, Cl A, 4.879%,
05/17/10 (b) 413 414
-------
DIVERSIFIED FINANCIAL SERVICES (0.7%)
SLM Student Loan Trust, Ser
2004-8, Cl A3, 4.713%,
07/27/15 (b) 411 412
-------
HOME EQUITY ABS (0.7%)
Countywide Home Equity Loan
Trust, Ser 2006-C, Cl 2A,
5.041%, 05/15/36 (b) 418 418
-------
Total Asset Backed Securities
(Cost $1,667) 1,666
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (2.3%)
Banc of America Commercial
Mortgage, Inc., Ser 2004-4, Cl
A3, 4.128%, 07/10/42 275 265
Citigroup/Deutsche Bank
Commercial Mortgage Trust, Ser
2005-CD1, Cl A4, 5.225%,
07/15/44 (b) 210 206
Citigroup/Deutsche Bank
Commercial Mortgage Trust, Ser
2006-CD2, Cl A4, 5.545%,
01/15/46 (b) 135 133
GE Capital Commercial Mortgage
Corp., Ser 2006-C1, Cl A4,
5.519%, 03/10/44 (b) 335 330
GS Mortgage Securities Corp. II,
Ser 2006-GG6, Cl A2, 5.506%,
04/10/38 (b) 270 271
Wachovia Bank Commercial
Mortgage Trust, Ser 2006-C23,
Cl A4, 5.418%, 01/15/45 (b) 225 222
-------
Total Collateralized Mortgage
Obligations (Cost $1,443) 1,427
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
CORPORATE BONDS (11.1%)
AEROSPACE/DEFENSE (0.3%)
United Technologies Corp.,
4.875%, 05/01/15 165 158
-------
AIRLINES (0.1%)
Southwest Airlines Co., 5.125%,
03/01/17 95 88
-------
BANKS (0.4%)
Bank of America Corp., 7.400%,
01/15/11 235 254
-------
COMMERCIAL SERVICES (0.1%)
ERAC USA Finance Co., 5.600%,
05/01/15 (c) 75 73
-------
COSMETICS/PERSONAL CARE (0.4%)
Avon Products, Inc., 5.125%,
01/15/11 250 246
-------
DIVERSIFIED FINANCIAL SERVICES (2.7%)
CIT Group, Inc., 5.125%,
09/30/14 165 158
Citigroup, Inc., 5.125%,
05/05/14 60 58
Citigroup, Inc., 5.850%,
12/11/34 85 83
Fund American Cos., Inc.,
5.875%, 05/15/13 215 211
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 240 227
HSBC Holdings PLC, 7.625%,
05/17/32 90 107
International Lease Finance
Corp., Ser Q, 5.250%, 01/10/13 90 87
John Deere Capital Corp.,
3.900%, 01/15/08 50 49
JPMorgan Chase & Co., 6.625%,
03/15/12 265 279
Lazard Group LLC, 7.125%,
05/15/15 290 301
Morgan Stanley, 5.300%, 03/01/13 195 191
-------
1,751
-------
ELECTRIC (0.8%)
Exelon Corp., 4.900%, 06/15/15 170 158
Exelon Corp., 5.625%, 06/15/35 160 145
Pacific Gas & Electric Co.,
6.050%, 03/01/34 175 171
-------
474
-------
ENTERTAINMENT (0.1%)
GTECH Holdings Corp., 4.750%,
10/15/10 45 44
-------
</Table>
See Notes to Financial Statements.
119
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TOTAL RETURN BOND FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
INSURANCE (0.1%)
Metlife, Inc., 5.700%, 06/15/35 45 42
-------
INVESTMENT COMPANIES (0.1%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 85 89
-------
MEDIA (0.6%)
Cox Communications, Inc.,
4.625%, 06/01/13 175 160
News America Holdings, Inc.,
6.200%, 12/15/34 90 84
Time Warner, Inc., 7.625%,
04/15/31 95 103
-------
347
-------
MINING (0.1%)
Alcan, Inc., 5.750%, 06/01/35 85 79
-------
MISCELLANEOUS MANUFACTURER (0.7%)
General Electric Co., 5.000%,
02/01/13 425 413
-------
OIL & GAS (0.4%)
Devon Financing Corp. ULC,
7.875%, 09/30/31 110 133
Enterprise Products Operating
LP, Ser B, 5.750%, 03/01/35 100 89
-------
222
-------
PHARMACEUTICALS (0.2%)
Teva Pharmaceutical Finance LLC,
5.550%, 02/01/16 65 62
Teva Pharmaceutical Finance LLC,
6.150%, 02/01/36 40 38
-------
100
-------
PIPELINES (0.6%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%, 04/01/13 175 194
Kinder Morgan, Inc., 6.400%,
01/05/36 170 166
-------
360
-------
REITS (0.1%)
Simon Property Group LP, 6.375%,
11/15/07 35 36
-------
RETAIL (0.7%)
Federated Department Stores,
Inc., 6.900%, 04/01/29 45 47
Woolworths Ltd., 5.550%,
11/15/15 (c) 380 370
-------
417
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
TELECOMMUNICATIONS (2.6%)
AT&T, Inc., 5.100%, 09/15/14 385 365
BellSouth Corp., 5.200%,
09/15/14 285 273
Cisco Systems, Inc., 5.500%,
02/22/16 225 222
Comcast Corp., 4.950%, 06/15/16 160 146
Comcast Corp., 6.450%, 03/15/37 105 101
Telecom Italia Capital SA,
5.250%, 10/01/15 215 200
Verizon Communications, Inc.,
5.850%, 09/15/35 95 85
Vodafone Group PLC, 5.500%,
06/15/11 295 292
-------
1,684
-------
Total Corporate Bonds
(Cost $7,074) 6,877
-------
FOREIGN GOVERNMENT BONDS (2.9%)
FRANCE (EUR) (0.4%)
France Government, 3.000%,
10/25/15 195 221
-------
GERMANY (EUR) (0.4%)
Deutschland Republic, Ser 05,
4.000%, 01/04/37 190 230
-------
JAPAN (YEN) (1.7%)
Japan Government, Ser 241,
0.300%, 02/15/08 63,500 536
Japan Government, Ser 52,
0.800%, 12/20/10 72,450 604
-------
1,140
-------
SPAIN (EUR) (0.4%)
Spanish Government, 3.150%,
01/31/16 195 224
-------
Total Foreign Government Bonds
(Cost $1,835) 1,815
-------
U.S. GOVERNMENT AGENCY MORTGAGES (30.7%)
FANNIE MAE (19.5%)
5.500%, 07/01/16 146 145
5.500%, 11/01/18 343 341
5.500%, 07/01/19 90 90
5.000%, 10/01/19 613 597
5.000%, 10/01/19 736 718
5.500%, 12/01/19 123 122
4.500%, 04/15/20 (d) 980 937
6.500%, 07/01/32 404 414
5.500%, 01/01/33 818 798
5.500%, 06/01/33 534 521
5.500%, 07/01/33 452 441
</Table>
See Notes to Financial Statements.
120
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TOTAL RETURN BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
FANNIE MAE--CONTINUED
5.500%, 10/01/33 1,224 1,195
5.000%, 11/01/33 692 659
5.000%, 11/01/33 730 695
6.000%, 11/01/33 181 181
5.500%, 01/01/34 644 629
5.000%, 04/01/34 978 932
6.500%, 11/01/34 630 642
5.000%, 09/01/35 659 628
6.000%, 12/01/35 799 799
5.173%, 01/01/36 (b) 604 600
-------
12,084
-------
FREDDIE MAC (11.2%)
4.500%, 09/01/18 614 586
5.000%, 11/01/18 66 64
5.500%, 12/01/18 125 125
5.000%, 01/01/19 762 744
6.000%, 11/01/33 753 754
6.000%, 11/01/33 574 574
6.500%, 05/01/34 120 122
5.000%, 07/01/34 101 96
6.000%, 10/01/34 294 295
6.000%, 04/13/35 (d) 1,847 1,847
6.500%, 05/01/35 1,012 1,032
4.646%, 08/01/35 (b) 749 728
-------
6,967
-------
Total U.S. Government Agency
Mortgages (Cost $19,510) 19,051
-------
U.S. TREASURY OBLIGATIONS (49.7%)
U.S. TREASURY BONDS (5.1%)
4.500%, 02/15/36 3,400 3,190
-------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.3%)
1.625%, 01/15/15 3,335 3,269
-------
U.S. TREASURY NOTES (39.3%)
2.250%, 04/30/06 2,370 2,365
3.125%, 05/15/07 2,445 2,399
4.625%, 02/29/08 2,080 2,072
5.625%, 05/15/08 3,975 4,036
3.375%, 12/15/08 3,295 3,175
4.500%, 02/15/09 110 109
6.000%, 08/15/09 2,575 2,668
4.250%, 10/15/10 3,145 3,072
4.500%, 02/28/11 2,130 2,099
4.250%, 08/15/13 1,320 1,270
4.250%, 11/15/14 1,077 1,029
-------
24,294
-------
Total U.S. Treasury Obligations
(Cost $31,349) 30,753
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount($) Value($)
- ---------------------------------------------------------
REPURCHASE AGREEMENT (6.6%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $4,085,516
(collateralized by U.S.
Government Agencies, 5.500%,
due 02/01/35; total market
value $4,168,179) 4,084 4,084
-------
Total Repurchase Agreement (Cost
$4,084) 4,084
-------
Total Investments (Cost $66,962)
(a) -- 106.0% 65,673
Liabilities in excess of other
assets -- (6.0)% (3,707)
-------
Net Assets -- 100.0% $61,966
=======
</Table>
- ---------------
(a)Cost for federal income tax purposes is $67,019 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 15
Unrealized Depreciation.................. (1,361)
-------
Unrealized Appreciation (Depreciation)... $(1,346)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(d)This security was purchased on a when-issued basis.
Cl -- Class
EUR -- Principal Amount in Euro
LLC -- Limited Liability Corporation
LP -- Limited Partnership
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
Ser -- Series
YEN -- Principal Amount in Japanese Yen
See Notes to Financial Statements.
121
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES (1.9%)
FREDDIE MAC (1.9%)
4.875%, 11/15/13 6,500 6,367
---------
Total U.S. Government
Agencies (Cost $6,662) 6,367
---------
U.S. GOVERNMENT AGENCY MORTGAGES (49.4%)
FANNIE MAE (38.0%)
6.000%, 07/01/16 852 864
6.000%, 07/01/16 1,602 1,625
5.500%, 09/01/17 2,011 2,001
5.500%, 01/01/18 7,757 7,717
5.500%, 04/01/18 973 968
6.290%, 08/01/18 1,167 1,193
5.500%, 11/01/18 7,079 7,041
5.000%, 03/01/19 16,450 16,071
7.000%, 06/01/32 1,003 1,033
6.000%, 03/01/33 1,636 1,638
4.098%, 08/01/33 (b) 8,342 8,190
6.000%, 10/01/33 2,853 2,854
6.000%, 04/01/34 7,541 7,544
4.502%, 05/01/34 (b) 5,405 5,313
4.748%, 05/01/34 (b) 8,358 8,106
4.023%, 06/01/34 (b) 3,378 3,284
4.242%, 06/01/34 (b) 2,084 2,043
6.000%, 03/01/35 2,474 2,475
5.173%, 01/01/36 (b) 11,388 11,312
6.000%, 01/01/36 15,827 15,827
5.251%, 02/01/36 (b) 5,443 5,412
5.528%, 02/01/36 (b) 11,796 11,775
---------
124,286
---------
FREDDIE MAC (11.4%)
5.500%, 04/01/17 2,320 2,307
4.500%, 01/01/19 11,232 10,743
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FREDDIE MAC--CONTINUED
5.000%, 04/01/19 17,759 17,341
5.316%, 03/01/33 (b) 7,085 6,997
---------
37,388
---------
Total U.S. Government Agency
Mortgages (Cost $164,318) 161,674
---------
U.S. TREASURY OBLIGATIONS (44.4%)
U.S. TREASURY BONDS (6.0%)
4.500%, 02/15/36 (c) 21,100 19,798
---------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.6%)
1.625%, 01/15/15 18,750 18,376
---------
U.S. TREASURY NOTES (32.8%)
2.375%, 08/31/06 (c) 17,000 16,836
3.625%, 07/15/09 (c) 32,350 31,180
6.000%, 08/15/09 (c) 21,000 21,759
3.375%, 09/15/09 (c) 15,750 15,031
5.000%, 02/15/11 (c) 15,000 15,122
4.250%, 08/15/13 (c) 7,650 7,358
---------
107,286
---------
Total U.S. Treasury
Obligations (Cost
$148,904) 145,460
---------
SHORT-TERM INVESTMENTS (39.0%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (d) 127,593,700 127,594
---------
Total Short-Term Investments
(Cost $127,594) 127,594
---------
</Table>
See Notes to Financial Statements.
122
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENT (4.3%)
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06,
to be repurchased
04/03/06, repurchase
price $14,064,238
(collaterized by U.S.
Government obligations
5.500%, due 02/01/35;
total market value
$14,340,900) 14,059 14,059
---------
Total Repurchase Agreement
(Cost $14,059) 14,059
---------
Total Investments (Cost
$461,537) (a) -- 139.0% 455,154
Liabilities in excess of
other assets -- (39.0)% (127,738)
---------
Net Assets -- 100.0% $ 327,416
=========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $461,846
(amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 39
Unrealized Depreciation.................. (6,731)
-------
Unrealized Appreciation (Depreciation)... $(6,692)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $123,842.
(d)This security was purchased with cash collateral held
from securities lending.
See Notes to Financial Statements.
123
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
ASSET BACKED SECURITIES (9.9%)
DIVERSIFIED FINANCIAL SERVICES (9.9%)
Access Group, Inc., Ser 2003-1,
Cl A6, 4.700%, 12/26/35 (b) 400 400
College Loan Corp. Trust, Ser
2005-2, Cl A1, 4.610%,
01/15/15 (b) 506 506
Collegiate Funding Services
Education Loan, Ser 2003-5, Cl
A6, 4.560%, 12/28/43 (b) 400 400
KeyCorp Student Loan Trust, Ser
2004-A, Cl 1A1, 4.256%,
04/27/17 (b) 435 435
Nelnet Student Loan Corp., Ser
2002-A, Cl A7, 4.600%,
06/01/35 (b) 350 350
Nelnet Student Loan Trust, Ser
2005-4, Cl A1, 4.418%,
12/22/18 (b) 754 756
SLC Student Loan Trust, Ser
2005-2, Cl A1, 4.910%,
03/15/18 (b) 293 292
SLM Student Loan Trust, Ser
1998-1, Cl A2, 5.370%,
10/25/11 (b) 573 578
SLM Student Loan Trust, Ser
2005-10, Cl A2, 4.565%,
04/25/15 (b) 500 500
-------
Total Asset Backed Securities
(Cost $4,216) 4,217
-------
MASTER NOTES (1.9%)
BANKS (1.9%)
Bank of America Corp., 4.945%,
09/14/06 (b) 800 800
-------
Total Master Notes
(Cost $800) 800
-------
MUNICIPAL BONDS (0.9%)
MISSOURI (0.9%)
Missouri Higher Education Loan
Authority, Student Loan, Ser
D, RB, 4.750%, 07/01/32 (b) 400 400
-------
Total Municipal Bonds
(Cost $400) 400
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
U.S. GOVERNMENT AGENCIES (40.5%)
FANNIE MAE (12.0%)
4.536%, 04/26/06 (c) 1,000 997
4.652%, 05/15/06 (c) 750 746
1.750%, 06/16/06 1,060 1,053
5.150%, 09/21/07, Callable
06/21/06 @ 100 750 748
5.000%, 11/23/07, Callable
05/23/06 @ 100 325 323
4.200%, 03/24/08 (d) 350 344
3.250%, 08/15/08 550 528
4.000%, 01/26/09, Callable
01/26/07 @ 100 400 389
-------
5,128
-------
FEDERAL FARM CREDIT BANK (11.7%)
4.560%, 12/01/06 (b) 2,500 2,500
4.576%, 04/04/07 (b) 1,500 1,501
4.710%, 05/01/07 (b) 1,000 1,000
-------
5,001
-------
FEDERAL HOME LOAN BANK (3.9%)
4.653%, 04/05/06 (c) 475 475
2.650%, 05/05/06 1,000 998
4.000%, 10/15/08, Callable
04/10/06 @ 100 200 195
-------
1,668
-------
FREDDIE MAC (12.9%)
4.470%, 04/07/06 (c) 1,000 999
2.740%, 05/12/06 1,125 1,122
4.500%, 08/22/07, Callable
08/22/06 @ 100 (d) 500 495
4.250%, 06/23/08, Callable
06/23/06 @ 100 1,600 1,574
5.050%, 12/08/08, Callable
12/08/06 @ 100 675 672
4.625%, 12/19/08 590 583
-------
5,445
-------
Total U.S. Government Agencies
(Cost $17,291) 17,242
-------
U.S. GOVERNMENT AGENCY MORTGAGES (44.2%)
FANNIE MAE (17.2%)
7.510%, 04/01/07 702 707
7.030%, 08/01/07 144 146
4.500%, 04/25/09 125 125
5.969%, 06/01/09 198 200
4.500%, 04/01/10 773 751
</Table>
See Notes to Financial Statements.
124
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
FANNIE MAE--CONTINUED
3.500%, 06/25/10 241 239
3.000%, 06/25/19 1,040 1,025
5.022%, 05/01/32 (b) 489 499
3.250%, 11/25/32 241 237
3.657%, 08/01/33 (b) 812 785
5.626%, 09/01/33 (b) 368 371
5.589%, 10/01/33 (b) 446 456
3.360%, 01/01/34 (b) 387 387
4.337%, 03/01/34 (b) 816 796
4.326%, 06/01/35 (b) 215 211
4.868%, 09/25/35 (b) 368 368
-------
7,303
-------
FREDDIE MAC (26.7%)
4.500%, 03/01/08 603 594
4.000%, 05/01/08 201 196
4.000%, 06/01/08 402 391
4.000%, 03/15/10 392 390
3.500%, 05/15/11 151 149
4.000%, 11/15/11 446 439
3.750%, 12/15/11 318 308
5.000%, 02/15/14 400 399
4.500%, 02/15/15 525 516
5.000%, 05/15/15 879 876
5.000%, 09/15/15 228 226
5.500%, 12/15/15 151 151
5.049%, 01/15/18 (b) 1,421 1,422
3.500%, 05/15/19 372 367
5.000%, 12/15/20 458 456
3.000%, 04/15/21 968 955
3.000%, 04/15/21 1,034 1,021
4.000%, 04/15/21 143 142
3.500%, 01/15/23 387 380
4.500%, 04/15/25 456 448
3.669%, 08/01/33 (b) 772 753
4.273%, 03/01/34 (b) 703 688
4.972%, 04/01/34 (b) 144 142
-------
11,409
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.3%)
5.987%, 02/16/24 (b) 125 127
-------
Total U.S. Government Agency
Mortgages (Cost $19,114) 18,839
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
SHORT-TERM INVESTMENTS (1.5%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (e) 636,738 637
-------
Total Short-Term Investments (Cost
$637) 637
-------
MONEY MARKET FUNDS (2.0%)
Federated Government Obligations
Money Market Fund 846,461 846
-------
Total Money Market Funds (Cost
$846) 846
-------
Total Investments (Cost $43,304)
(a) -- 100.9% 42,981
Liabilities in excess of other
assets -- (0.9)% (365)
-------
Net Assets -- 100.0% $42,616
=======
</Table>
- ---------------
(a) Cost for federal income tax purposes is $43,215 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $ 22
Unrealized Depreciation................... (255)
-----
Unrealized Appreciation (Depreciation).... $(233)
=====
</Table>
(b) Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c) Rate represents the effective yield at purchase.
(d) This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $623.
(e) This security was purchased with cash collateral held
from securities lending.
Cl -- Class
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
125
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
ASSET BACKED SECURITIES (24.4%)
AUTOMOBILE ABS (5.6%)
Capital One Prime Auto
Receivable Trust, Ser
2005-1, Cl A3, 4.320%,
08/15/09 2,375 2,350
Daimler Chrysler Master Owner
Trust, Ser 2005-C, Cl A,
4.770%, 12/15/10 (b) 2,025 2,026
Ford Credit Auto Owner Trust,
Ser 2005-A, Cl A2, 3.080%,
07/15/07 585 584
Harley-Davidson Motorcycle
Trust, Ser 2004-1, Cl A1,
1.400%, 10/15/08 282 280
Honda Auto Receivables Owner
Trust, Ser 2005-6, Cl A3,
4.850%, 10/19/09 1,025 1,019
Nissan Auto Receivables Owner
Trust, Ser 2003-B, Cl A4,
2.050%, 03/16/09 525 513
Nissan Master Owner Trust
Receivables, Ser 2003-A, Cl
A1, 4.809%, 09/15/08 (b) 3,000 3,003
USAA Auto Owner Trust, Ser
2004-1, Cl A3, 2.060%,
04/15/08 989 979
Volkswagen Credit Auto Master
Trust, Ser 2005-1, Cl A,
4.590%, 07/20/10 (b) 3,000 3,000
--------
13,754
--------
CREDIT CARD ABS (2.1%)
Discover Card Master Trust I,
Ser 2005-3, Cl A, 4.769%,
05/15/11 (b) 2,590 2,590
GE Capital Credit Card Master
Note Trust, Ser 2004-1, Cl
A, 4.799%, 06/15/10 (b) 2,500 2,501
--------
5,091
--------
DIVERSIFIED FINANCIAL SERVICES (7.0%)
Access Group, Inc., Ser
2003-1, Cl A6, 4.700%,
12/26/35 (b) 2,000 2,000
College Loan Corp. Trust, Ser
2005-1, Cl A1, 4.653%,
01/25/14 (b) 2,000 2,001
College Loan Corp. Trust, Ser
2005-2, Cl A1, 4.610%,
01/15/15 (b) 1,615 1,615
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Morgan Stanley Capital I, Ser
2006-NC2, Cl A2A, 4.703%,
02/25/36 (b) 2,000 2,000
Morgan Stanley Capital I, Ser
2006-HE2, Cl A2A, 4.823%,
03/25/36 (b) 2,000 2,000
Nelnet Student Loan Corp., Ser
2002-A, Cl A7, 4.600%,
06/01/35 (b) 1,650 1,650
Nelnet Student Loan Trust, Ser
2005-4, Cl A1, 4.418%,
12/22/18 (b) 2,074 2,077
SLC Student Loan Trust, Ser
2005-2, Cl A1, 4.910%,
03/15/18 (b) 2,030 2,024
SLM Student Loan Trust, Ser
1998-1, Cl A2, 5.370%,
10/25/11 (b) 1,757 1,771
--------
17,138
--------
HOME EQUITY ABS (9.4%)
Aames Mortgage Investment
Trust, Ser 2005-4, Cl 2A1,
4.938%, 10/25/35 (b) 1,463 1,463
Aegis Asset Backed Securities
Trust, Ser 2005-2, Cl 1A1,
4.918%, 06/25/35 (b) 726 726
Centex Home Equity, Ser
2005-C, Cl AV1, 4.908%,
06/25/35 (b) 916 916
Centex Home Equity, Ser
2005-D, Cl AV1, 4.928%,
10/25/35 (b) 1,494 1,494
Countrywide Home Equity Loan
Trust, Ser 2005-A, Cl A2,
4.989%, 02/15/30 (b) 1,059 1,060
Fieldstone Mortgage Investment
Corp, Ser 2006-1, Cl A1,
4.740%, 05/25/36 (b) 2,500 2,500
Household Home Equity Loan
Trust, Ser 2005-C, Cl A,
5.066%, 01/20/34 (b) 1,638 1,639
JP Morgan Mortgage Acquisition
Corp., Ser 2006-WMC1, Cl A2,
4.846%, 03/25/36 (b) 2,000 2,000
</Table>
See Notes to Financial Statements.
126
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
HOME EQUITY ABS--CONTINUED
Master Asset Backed Securities
Trust, Ser 2005-AB1, Cl A1A,
4.968%, 10/25/32 (b) 1,033 1,033
Master Asset Backed Securities
Trust, Ser 2006-WMC1, Cl A1,
4.790%, 02/25/36 (b) 2,500 2,500
Park Place Securities, Inc.,
Ser 2005-WHQ2, Cl A2A,
4.918%, 05/25/35 (b) 500 500
Residential Asset Mortgage
Products, Inc., Ser
2006-NC1, Cl A1, 4.898%,
01/25/36 (b) 1,926 1,926
Residential Asset Securities
Corp., Ser 2005-KS8, Cl A1,
4.928%, 07/25/26 (b) 1,790 1,791
Residential Funding Mortgage
Securities, Ser 2006-HSA1,
Cl A1, 4.928%, 11/25/35 (b) 1,888 1,888
Soundview Home Equity Loan
Trust, Ser 2006-0PT2, Cl A1,
4.890%, 05/25/36 (b) 1,740 1,739
--------
23,175
--------
OTHER ABS (0.3%)
CIT Equipment Collateral, Ser
2003-VT1, Cl A3A, 4.906%,
04/20/07 (b) 183 183
Marlin Leasing Receivables
LLC, Ser 2005-1A, Cl A1,
4.051%, 08/15/12 (d) 466 466
--------
649
--------
Total Asset Backed Securities
(Cost $59,824) 59,807
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (6.1%)
Adjustable Rate Mortgage
Trust, Ser 2005-7, Cl 7A21,
5.068%, 10/25/35 (b) 810 801
Banc of America Mortgage
Securities, Ser 2005-J, Cl
3A1, 5.276%, 11/25/35 (b) 1,884 1,851
Bear Stearns Commercial
Mortgage Securities, Ser
2005-T20, Cl A1, 4.940%,
10/12/42 1,104 1,093
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
Countrywide Home Loans, Inc.,
Ser 2004-21, Cl A10, 6.000%,
11/25/34 756 749
Countywide Home Loans, Ser
2002-39, Cl A16, 5.000%,
02/25/33 775 770
Deutsche Mortgage Securities,
Inc., Ser 2004-1, Cl 3A3,
3.690%, 12/25/33 68 67
First Horizon Alternative
Mortgage Securities, Ser
2005-AA3, Cl 2A1, 5.185%,
05/25/35 (b) 924 915
Indymac Loan Trust, Ser
2006-L1, Cl A1, 4.815%,
04/25/11 (b) 2,500 2,501
J.P. Morgan Chase Commercial
Mortgage Securities, Ser
2005-LDP1, Cl A1, 4.116%,
03/15/46 1,060 1,038
Morgan Stanley Capital I, Ser
2006-HQ8, Cl A1, 5.124%,
03/12/44 (b) 1,275 1,268
Opteum Mortgage Acceptance
Corp., Ser 2005-4, Cl 1A1A,
4.988%, 11/25/35 (b) 2,027 2,028
Washington Mutual, Ser
2005-AR4, Cl A1, 3.624%,
04/25/35 (b) 693 690
Wells Fargo Mortgage Backed
Securities Trust, Ser
2004-S, Cl A5, 3.540%,
09/25/34 (b) 1,125 1,070
--------
Total Collateralized Mortgage
Obligations (Cost $14,979) 14,841
--------
COMMERCIAL PAPERS (6.0%)
DIVERSIFIED FINANCIAL SERVICES (6.0%)
Goldman Sachs Group, Inc.
(The), 4.803%, 04/04/06 (c) 2,000 1,999
Merrill Lynch & Co., Inc.,
4.774%, 04/04/06 (c) 3,575 3,572
Morgan Stanley, 4.773%,
04/03/06 (c) 3,575 3,573
Societe Generale North
America, 4.774%, 04/06/06
(c) 3,575 3,572
</Table>
See Notes to Financial Statements.
127
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
UBS Financial Delaware LLC,
4.832%, 04/03/06 (c) 2,000 1,999
--------
Total Commercial Papers (Cost
$14,719) 14,715
--------
CORPORATE BONDS (28.9%)
AUTO MANUFACTURERS (1.4%)
American Honda Finance Corp.,
4.740%, 01/16/07 (b) (d) 2,500 2,503
DaimlerChrysler NA Holdings
Corp., 6.400%, 05/15/06 1,000 1,001
--------
3,504
--------
BANKS (3.8%)
Bank One Corp., 7.600%,
05/01/07 1,000 1,022
BankBoston Corp., 6.500%,
12/19/07 765 779
Wachovia Corp., 4.694%,
07/20/07 (b) 2,500 2,503
Wells Fargo & Co., 4.920%,
03/10/08 (b) 3,000 3,002
World Savings Bank FSB,
4.602%, 10/19/07 (b) 2,100 2,100
--------
9,406
--------
COMMERCIAL SERVICES (0.6%)
ERAC USA Finance Co., 6.625%,
05/15/06 (d) 1,000 1,002
ERAC USA Finance Co., 7.350%,
06/15/08 (d) 375 389
--------
1,391
--------
DIVERSIFIED FINANCIAL SERVICES (15.6%)
Allstate Life Global Funding
Trusts, Ser 2006-1, 4.980%,
03/23/09 (b) 2,000 1,999
American Express Centurion
Bank, 4.831%, 11/16/07 (b) 2,150 2,153
Bear Stearns & Co., Inc.
(The), 5.700%, 01/15/07 500 502
Bear Stearns & Co., Inc.
(The), 4.810%, 04/29/08 (b) 2,500 2,505
Capital One Financial Corp.,
7.250%, 05/01/06 1,000 1,002
Capital One Financial Corp.,
8.750%, 02/01/07 500 513
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
CIT Group, Inc., 4.990%,
05/18/07 (b) 2,500 2,506
CIT Group, Inc., 4.000%,
05/08/08 775 754
Citigroup, Inc., 5.000%,
03/06/07 1,000 997
Countrywide Home Loan, Inc.,
Ser M, 4.970%, 08/25/06 (b) 1,075 1,075
Credit Suisse First Boston
USA, Inc., 6.500%, 06/01/08 1,065 1,089
General Electric Capital
Corp., 4.125%, 03/04/08 1,500 1,469
General Electric Capital
Corp., 4.957%, 03/16/09 (b) 2,250 2,249
Golden West Financial Corp.,
4.125%, 08/15/07 550 542
Goldman Sachs Group, Inc.
(The), 4.125%, 01/15/08 1,000 980
Goldman Sachs Group, Inc.
(The), 5.025%, 12/22/08 (b) 2,250 2,250
Household Finance Corp.,
5.750%, 01/30/07 1,000 1,004
HSBC Finance Corp., 4.125%,
03/11/08 1,000 979
John Deere Capital Corp.,
3.900%, 01/15/08 1,000 976
JPMorgan Chase & Co., 5.060%,
12/18/06 (b) 3,000 3,004
Lehman Brothers Holdings,
Inc., 4.000%, 01/22/08 800 782
Lehman Brothers Holdings,
Inc., 4.704%, 10/22/08 (b) 850 851
Merrill Lynch & Co., Inc.,
4.831%, 10/27/08 1,000 990
Morgan Stanley, 4.709%,
01/12/07 (b) 2,500 2,502
Morgan Stanley, 5.800%,
04/01/07 1,000 1,005
Salomon Smith Barney Holdings,
6.500%, 02/15/08 750 767
SLM Corp., Ser A, 5.110%,
09/15/06 (b) 3,000 3,003
--------
38,448
--------
</Table>
See Notes to Financial Statements.
128
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
ELECTRIC (0.4%)
American Electric Power Co.,
Inc., Ser A, 6.125%,
05/15/06 209 209
Commonwealth Edison, Co.,
7.625%, 01/15/07 640 650
--------
859
--------
ENERGY (0.6%)
Terra, Ser 2006-1A, 4.942%,
04/15/36 (b) 1,500 1,500
--------
INSURANCE (1.3%)
MetLife Global Funding,
4.960%, 08/28/06 (b) (d) 3,250 3,251
--------
LODGING (0.5%)
Park Place Entertainment,
8.500%, 11/15/06 1,095 1,113
--------
MEDIA (0.6%)
Time Warner, Inc., 6.125%,
04/15/06 1,000 1,000
Time Warner, Inc., 6.150%,
05/01/07 500 504
--------
1,504
--------
OIL & GAS (0.4%)
Devon Energy Corp., 2.750%,
08/01/06 1,050 1,041
--------
PIPELINES (0.3%)
Arkla, Inc., 8.900%, 12/15/06 660 675
--------
TELECOMMUNICATIONS (3.4%)
BellSouth Corp., 4.874%,
11/15/07 (b) 1,940 1,943
Deutsche Telekom AG, 5.120%,
03/23/09 (b) (e) 1,825 1,825
SBC Communications, Inc.,
5.750%, 05/02/06 (e) 1,000 1,000
SBC Communications, Inc.,
4.951%, 11/14/08 (b) 1,500 1,503
Telecom Italia Capital SA,
4.000%, 11/15/08 545 525
Verizon Global Funding Corp.,
6.125%, 06/15/07 575 580
Vodafone Group PLC, 4.611%,
12/28/07 (b) 1,000 1,000
--------
8,376
--------
Total Corporate Bonds (Cost
$71,321) 71,068
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
MASTER NOTES (1.2%)
BANKS (1.2%)
Bank of America Corp., 4.945%,
09/14/06 (b) 3,000 3,000
--------
Total Master Notes (Cost $3,000) 3,000
--------
MUNICIPAL BONDS (1.1%)
Missouri Higher Education Loan
Authority, Student Loan, Ser
D, RB, 4.750%, 07/01/32 (b) 2,600 2,600
--------
Total Municipal Bonds (Cost
$2,600) 2,600
--------
U.S. GOVERNMENT AGENCIES (11.2%)
FANNIE MAE (4.2%)
5.150%, 09/21/07, Callable
06/21/06 @ 100 4,250 4,241
5.000%, 11/23/07, Callable
05/23/06 @ 100 1,075 1,069
4.200%, 03/24/08 (e) 1,500 1,473
3.250%, 08/15/08 2,200 2,112
4.000%, 01/26/09, Callable
01/26/07 @ 100 1,475 1,433
--------
10,328
--------
FEDERAL HOME LOAN BANK (1.1%)
4.900%, 11/21/07, Callable
11/21/06 @ 100 2,000 1,991
4.000%, 10/15/08, Callable
04/10/06 @ 100 760 741
--------
2,732
--------
FREDDIE MAC (5.9%)
4.500%, 08/22/07, Callable
08/22/06 @ 100 (e) 1,750 1,733
4.250%, 06/23/08, Callable
06/23/06 @ 100 3,475 3,416
5.050%, 12/08/08, Callable
12/08/06 @ 100 4,740 4,721
4.625%, 12/19/08 2,305 2,279
4.875%, 02/17/09 2,250 2,238
--------
14,387
--------
Total U.S. Government Agencies
(Cost $27,610) 27,447
--------
</Table>
See Notes to Financial Statements.
129
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGES (17.7%)
FANNIE MAE (5.9%)
7.510%, 04/01/07 1,252 1,262
6.805%, 11/01/07 1,298 1,308
4.500%, 04/25/09 375 374
5.969%, 06/01/09 744 750
6.575%, 07/01/09 1,822 1,867
4.500%, 04/01/10 773 751
3.500%, 06/25/10 724 717
6.250%, 08/25/30 760 763
5.022%, 05/01/32 (b) 430 439
3.657%, 08/01/33 (b) 753 728
5.626%, 09/01/33 (b) 847 853
5.589%, 10/01/33 (b) 1,040 1,063
3.360%, 01/01/34 (b) 860 859
4.337%, 03/01/34 (b) 920 898
4.326%, 06/01/35 (b) 665 655
4.868%, 09/25/35 (b) 1,089 1,089
--------
14,376
--------
FREDDIE MAC (11.6%)
4.500%, 03/01/08 603 594
4.000%, 05/01/08 1,056 1,027
4.000%, 06/01/08 903 879
4.000%, 03/15/10 1,173 1,167
3.500%, 05/15/11 453 448
4.000%, 11/15/11 708 696
3.750%, 12/15/11 747 723
5.000%, 02/15/14 652 650
4.500%, 02/15/15 (b) 2,100 2,062
5.000%, 05/15/15 3,530 3,519
5.000%, 09/15/15 683 679
4.500%, 11/15/15 804 790
5.500%, 12/15/15 67 67
5.000%, 12/15/17 799 796
5.049%, 01/15/18 (b) 3,928 3,934
3.500%, 05/15/19 443 436
5.000%, 12/15/20 787 784
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
FREDDIE MAC--CONTINUED
3.000%, 04/15/21 2,069 2,044
3.000%, 04/15/21 2,258 2,230
4.000%, 04/15/21 485 481
4.500%, 04/15/25 2,281 2,239
3.669%, 08/01/33 (b) 772 753
4.273%, 03/01/34 (b) 1,272 1,243
4.972%, 04/01/34 (b) 294 291
--------
28,532
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.2%)
5.987%, 02/16/24 (b) 500 507
--------
Total U.S. Government Agency
Mortgages (Cost $43,951) 43,415
--------
U.S. TREASURY OBLIGATIONS (3.6%)
U.S. TREASURY NOTES (3.6%)
4.375%, 11/15/08 (e) 5,750 5,685
4.500%, 02/15/09 (e) 3,200 3,172
--------
Total U.S. Treasury Obligations
(Cost $8,895) 8,857
--------
SHORT-TERM INVESTMENTS (5.9%)
CSFB Enhanced Liquidity
Portfolio, 5.006% (f) 14,416,569 14,417
--------
Total Short-Term Investments
(Cost $14,417) 14,417
--------
MONEY MARKET FUNDS (1.8%)
Federated Prime Value Money
Market Fund 4,451,750 4,452
--------
Total Money Market Funds (Cost
$4,452) 4,452
--------
Total Investments (Cost
$265,768) (a) -- 107.9% 264,619
Liabilities in excess of other
assets -- (7.9)% (19,362)
--------
Net Assets -- 100.0% $245,257
========
</Table>
See Notes to Financial Statements.
130
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
ULTRA-SHORT BOND FUND -- CONCLUDED
- ---------------
(a)Cost for federal income tax purposes is $265,669
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation.................. $ 182
Unrealized Depreciation.................. (1,232)
-------
Unrealized Appreciation (Depreciation)... $(1,050)
=======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
(e)This security or a partial position of the security was on
loan at March 31, 2006. The total value of securities on loan at March 31,
2006 in thousands was $13,985.
(f)This security was purchased with cash collateral held
from securities lending.
Cl -- Class
LLC -- Limited Liability Corporation
PLC -- Public Limited Company
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
131
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
MUNICIPAL BONDS (96.9%)
VIRGINIA (92.7%)
Albemarle County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 5.000%, 01/01/07,
Callable 05/15/06 @ 100.5 55 55
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/06 2,000 2,009
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/11 2,000 2,133
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/17, Callable
07/01/11 @ 101 2,225 2,420
Arlington County Industrial
Development Authority,
Resource Recovery, Ser B, RB,
AMT, 5.375%, 01/01/11,
Callable 07/01/08 @ 101 2,785 2,878
Chesapeake Water & Sewer
Project, GO, 5.000%,
12/01/19, Callable 12/01/14 @
101 2,465 2,618
Chesapeake, GO, 5.400%,
12/01/08 2,500 2,611
Chesterfield County Public
Improvement, GO, 5.000%,
01/01/14 3,440 3,691
Commonwealth Transportation
Board, Ser A, RB, 5.375%,
05/15/13, Callable 05/01/11 @
100 2,045 2,186
Fairfax County Industrial
Development Authority, Health
Care, Inova Health System
Project, RB, 6.000%,
08/15/26, Callable 08/15/06 @
102 810 833
Fairfax County Water Authority,
RB, 6.000%, 04/01/22,
Callable 04/01/07 @ 102 5,590 5,824
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Fairfax County, Public
Improvement, Ser A, GO,
5.000%, 06/01/06 1,000 1,003
Fauquier County Industrial
Development Authority, RB,
5.000%, 10/01/06, LOC: Radian 1,180 1,188
Front Royal & Warren County
Development Authority, Ser B,
RB, 5.000%, 04/01/23,
Callable 04/01/14 @ 100 2,485 2,590
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 6.000%, 06/15/13,
Callable 06/15/10 @ 101 3,185 3,492
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.000%, 06/15/14, MBIA 1,575 1,675
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.000%, 06/15/16,
Callable 06/15/15 @ 100, MBIA 2,855 3,028
Halifax County Industrial
Development Authority, RB,
3.000%, 09/01/06 1,125 1,122
Hampton, Ser A, GO, 5.500%,
07/15/18, Callable 07/15/12 @
101 1,275 1,395
Hanover County Industrial
Development Authority,
Regional Medical Care
Project, RB, 6.375%,
08/15/18, MBIA 5,100 5,923
Henrico County Economic
Development Authority,
Residential Care Facilities,
Baptist Homes, Ser A, RB,
4.500%, 07/01/10, Callable
07/01/07 @ 101 750 749
Henrico County Economic
Development Authority,
Residential Care Facilities,
Baptist Homes, Ser B, RB,
4.750%, 07/01/40, Callable
12/01/07 @ 101 1,750 1,752
</Table>
See Notes to Financial Statements.
132
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 3.750%, 06/01/06 255 255
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 4.250%, 06/01/07 525 528
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 5.000%, 06/01/10 1,000 1,028
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.500%, 06/01/22,
Callable 06/01/12 @ 100 1,000 1,068
Henrico County Industrial
Development Authority, Bon
Secours Health System, Ser B,
RB, 5.150%, 06/01/07,
Callable 06/01/06 @ 102, MBIA 2,500 2,545
Henrico County, GO, 5.000%,
01/15/08 2,220 2,275
Lexington Industrial
Development Authority,
Hospital Facility, Ser E01,
RB, 3.230%, 07/01/30,
Callable 07/01/10 @ 102, LOC:
Wachovia Bank NA (b) 3,080 3,079
Loudoun County Industrial
Development Authority,
Loudoun Hospital Center, RB,
6.000%, 06/01/22, Prerefunded
06/01/12 @ 101 1,000 1,116
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.000%, 08/01/24,
Callable 08/01/14 @ 100 1,000 1,055
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser B, RB, 5.000%, 08/01/28,
Callable 08/01/07 @ 101 1,100 1,135
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Loudoun County Sanitation
Authority, Water & Sewage,
RB, 5.000%, 01/01/25,
Callable 01/01/15 @ 100 3,165 3,313
Loudoun County, Public
Improvement, Ser B, GO,
5.000%, 06/01/14 3,500 3,763
Loudoun County, Public
Improvement, Ser B, GO,
5.000%, 06/01/16, Callable
06/01/15 @ 100 4,635 4,976
Loudoun County, Ser A, GO,
5.000%, 07/01/13 3,000 3,214
Louisa Industrial Development
Authority, Pollution Control,
Electric & Power Co., RB,
5.250%, 12/01/08, Callable
11/08/06 @ 101 650 662
Montgomery County Industrial
Development Authority, RB,
5.500%, 01/15/18, Callable
01/15/12 @ 101, AMBAC 1,865 2,026
Newport News, GO, 5.250%,
07/01/15 3,000 3,280
Norfolk Industrial Development
Authority, RB, 6.900%,
06/01/06, AMBAC 1,000 1,005
Peninsula Ports Authority,
Residential Care Facility,
Ser A, RB, 7.375%, 12/01/23,
Callable 12/01/13 @ 100 1,525 1,701
Portsmouth, Ser A, GO, 5.000%,
04/01/14 2,005 2,147
Richmond, GO, 5.500%, 01/15/12,
Callable 01/15/11 @ 101, FSA 2,500 2,706
Richmond, GO, 5.500%, 01/15/18,
Callable 01/10/11 @ 101, FSA 2,755 2,965
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.750%,
07/01/13, Callable 07/01/12 @
100 2,000 2,181
</Table>
See Notes to Financial Statements.
133
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.750%,
07/01/14, Callable 07/01/12 @
100 2,000 2,174
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.500%,
07/01/18, Callable 07/01/12 @
100 2,000 2,131
Roanoke Industrial Development
Authority, Carilion Health
System, Ser C2, RB, 3.140%,
07/01/27, FSA (b) 1,000 1,000
Roanoke Public Improvement, Ser
B, GO, 5.000%, 02/01/24,
Callable 02/01/15 @ 101 2,500 2,633
Russell County Industrial
Development Authority,
Pollution Control,
Appalachian Power Co.
Project, Ser I, RB, 2.700%,
11/01/07, Mandatory Put
11/01/06 @ 100 1,000 992
Southeastern Public Service
Authority, Ser A, RB, 5.100%,
07/01/08, MBIA 1,660 1,713
Southwest Regional Jail
Authority Facilities, RB,
3.000%, 09/01/06 1,750 1,747
Spotsylvania County Water &
Sewer, RB, 5.000%, 06/01/26,
FSA 2,635 2,750
Tobacco Settlement Financing
Corp., RB, 4.000%, 06/01/13 1,000 998
Tobacco Settlement Financing
Corp., RB, 5.250%, 06/01/19,
Callable 06/01/15 @ 100 1,750 1,786
Tobacco Settlement Financing
Corp., RB, 5.500%, 06/01/26,
Callable 06/01/15 @ 100 3,000 3,076
University of Virginia, Ser A,
RB, 3.100%, 06/01/34 (b) 2,000 2,000
Virginia Beach Development
Authority, Ser A, RB, 5.375%,
08/01/16, Callable 08/01/12 @
100 1,650 1,776
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Beach, Public
Improvement, Ser B, GO,
5.000%, 05/01/13 2,500 2,664
Virginia College Building
Authority, Educational
Facilities Project, RB,
5.375%, 01/01/21, Callable
01/01/16 @ 100 3,090 3,457
Virginia College Building
Authority, Educational
Facilities Project, Ser A,
RB, 5.000%, 02/01/15,
Callable 02/01/14 @ 100 4,510 4,801
Virginia College Building
Authority, Educational
Facilities, Public Higher
Education Financing Program,
Ser A, RB, 5.000%, 09/01/10 3,000 3,157
Virginia Housing Development
Authority, Commonwealth
Mortgage Project, Ser A, RB,
AMT, 2.000%, 07/01/06 750 747
Virginia Housing Development
Authority, Multifamily, Ser
E, RB, AMT, 5.350%, 11/01/11,
Callable 01/01/08 @ 102 1,250 1,300
Virginia Housing Development
Authority, Multifamily, Ser
H, RB, AMT, 5.625%, 11/01/18,
Callable 11/01/09 @ 100 3,500 3,617
Virginia Housing Development
Authority, Multifamily, Ser
I, RB, AMT, 4.875%, 11/01/12,
Callable 01/01/09 @ 101 1,950 1,997
Virginia Polytechnic Institute
& State University, Ser D,
RB, 5.125%, 06/01/21,
Callable 06/01/14 @ 101,
AMBAC 1,095 1,172
Virginia Port Authority,
Commonwealth Port Fund, RB,
AMT, 5.900%, 07/01/16,
Callable 07/01/06 @ 101 2,000 2,031
Virginia Public School
Authority, School Financing,
Ser B, RB, 5.125%, 08/01/13,
Prerefunded 08/01/06 @ 102,
LOC: St Aid Withholding 1,000 1,025
</Table>
See Notes to Financial Statements.
134
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Public School
Authority, Ser B, RB, 5.000%,
08/01/13, Callable 08/01/10 @
101 2,910 3,070
Virginia State Resource
Authority, Senior
Infrastructure, Ser B, RB,
5.000%, 11/01/26, Callable
11/01/14 @ 100 2,185 2,287
Virginia Transportation Board
Contract, Ser B, RB, 6.750%,
05/15/06 3,605 3,619
Winchester, Public Improvement,
GO, 5.000%, 11/01/18,
Callable 11/01/15 @ 100, FGIC 2,580 2,752
York County Industrial
Development Authority,
Pollution Control Project,
RB, 5.500%, 07/01/09,
Callable 11/08/06 @ 101 640 652
--------
162,322
--------
PUERTO RICO (4.2%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 1,500 1,505
Puerto Rico Electric Power
Authority, Ser RR, RB,
5.000%, 07/01/26, Callable
07/01/15 @ 100, XLCA 2,610 2,730
Puerto Rico Municipal Financial
Agency, Ser A, GO, 5.000%,
08/01/22, Callable 08/01/15 @
100, FSA 3,000 3,174
--------
7,409
--------
Total Municipal Bonds (Cost
$168,194) 169,731
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- --------------------------------------------------------
MONEY MARKET FUNDS (0.4%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 753,807 754
--------
Total Money Market Funds (Cost
$754) 754
--------
Total Investments (Cost $168,948)
(a) -- 97.3% 170,485
Other assets in excess of
liabilities -- 2.7% 4,747
--------
Net Assets -- 100.0% $175,232
========
</Table>
- ---------------
(a)Cost for federal income tax purposes is $168,931
(amount in thousands). Unrealized appreciation/(depreciation) on a tax basis
is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $2,354
Unrealized Depreciation................... (800)
------
Unrealized Appreciation (Depreciation).... $1,554
======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
XLCA -- Security insured by XL Capital Assurance, Inc.
See Notes to Financial Statements.
135
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA MUNICIPAL BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
MUNICIPAL BONDS (96.7%)
DISTRICT OF COLUMBIA (1.9%)
Metropolitan Washington Airports
Authority, Airport System, Ser
A, RB, AMT, 5.500%, 10/01/27,
Callable 10/01/11 @ 101 1,000 1,064
-------
VIRGINIA (92.8%)
Amherst County Service
Authority, RB, 6.000%,
12/15/20, Callable 12/15/10 @
102 500 524
Amherst County Service
Authority, RB, 6.000%,
12/15/30, Callable 12/15/10 @
102 1,750 1,815
Blacksburg Polytechnic Institute
Sanitation Authority, Sewer
System, RB, 4.150%, 11/01/06 500 502
Bristol Utility System, RB,
5.250%, 07/15/23, Callable
07/15/13 @ 100, MBIA 1,000 1,067
Chesapeake Bay Bridge & Tunnel
Commission, Ser A39, RB,
3.210%, 07/01/25, MBIA (b) 1,495 1,495
Fairfax County Sewer, RB,
5.800%, 07/15/22, Callable
07/15/06 @ 102, MBIA 1,000 1,026
Fairfax County, GO, 5.000%,
01/15/26, Callable 01/15/15 @
100 1,000 1,050
Fairfax County, Ser A, GO,
5.000%, 04/01/16, Callable
04/01/14 @ 100 1,000 1,066
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.500%, 06/15/08 550 569
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.000%, 06/15/25, Callable
06/15/15 @ 100, MBIA 1,000 1,042
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 6.125%, 06/15/25, Callable
06/15/10 @ 101 1,200 1,321
Hampton Virginia Golf Course,
RB, 6.000%, 12/01/12 866 886
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Hanover County Industrial
Development Authority,
Regional Medical Care Project,
RB, 6.375%, 08/15/18, MBIA 1,000 1,161
Henrico County Economic
Development Authority,
Residential Care Facilities,
Baptist Homes, Ser A, RB,
5.500%, 07/01/38, Callable
07/01/15 @ 100 500 498
Henrico County Economic
Development Authority, Ser A,
RB, 5.850%, 07/20/19, Callable
07/20/09 @ 102, GNMA 400 426
Henrico County Economic
Development Authority, Ser A,
RB, 5.900%, 07/20/29, Callable
07/20/09 @ 102, GNMA 500 538
Henrico County Industrial
Development Authority, RB,
AMT, 3.350%, 03/01/16,
Callable 05/15/06 @ 100, LOC:
First Union National Bank 985 968
Henry County Public Service
Authority, Water & Sewer, RB,
5.250%, 11/15/13, FSA 1,500 1,623
Loudoun County Industrial
Development Authority, Public
Safety Facilities Lease, Ser
A, RB, 5.250%, 12/15/17,
Callable 06/15/14 @ 100 1,110 1,190
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.000%, 08/01/24,
Callable 08/01/14 @ 100 750 791
Loudoun County Public
Improvement, Ser B, GO,
5.000%, 06/01/17, Callable
06/01/15 @ 100 1,000 1,071
Lynchburg Industrial Development
Authority, Healthcare
Facilities, Centra Health, RB,
5.200%, 01/01/23, Prerefunded
01/01/08 @ 101 1,015 1,050
</Table>
See Notes to Financial Statements.
136
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA MUNICIPAL BOND FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Newport News Redevelopment &
Housing Authority, RB, 5.850%,
12/20/30, Callable 08/20/07 @
102, GNMA 500 516
Peninsula Ports Authority,
Residential Care Facility, Ser
A, RB, 7.375%, 12/01/23,
Callable 12/01/13 @ 100 525 586
Pittsylvania County, Ser B, GO,
5.625%, 03/01/15, Callable
03/01/11 @ 102, MBIA 1,000 1,095
Prince William County Virginia,
Industrial Development
Authority, ATCC Lease Project,
RB, 5.250%, 02/01/16 1,055 1,145
Richmond Industrial Development
Authority, Student Housing,
RB, 5.450%, 01/01/21, Callable
01/01/11 @ 102 1,000 1,062
Richmond Public Utility, RB,
5.000%, 01/15/23, Callable
01/15/15 @ 100, FSA 1,000 1,049
Richmond, GO, 5.500%, 01/15/15,
Callable 01/15/11 @ 101 1,290 1,390
Richmond, GO, 5.500%, 01/15/18,
Callable 01/10/11 @ 101, FSA 1,000 1,076
Richmond, Public Improvement,
Ser B, GO, 5.000%, 07/15/16,
Callable 07/15/15 @ 100, FSA 1,000 1,068
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.500%,
07/01/16, Callable 07/01/12 @
100, MBIA 1,000 1,067
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.500%,
07/01/21, Callable 07/01/12 @
100, MBIA 1,000 1,067
Southeastern Public Service
Authority, Ser A, RB, 5.100%,
07/01/08, MBIA 1,000 1,032
Spotsylvania County Water &
Sewer Systems, RB, 5.000%,
06/01/15, FSA 1,000 1,072
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Spotsylvania County Water &
Sewer, RB, 5.000%, 06/01/26,
FSA 1,000 1,044
Tobacco Settlement Financing
Corp., RB, 4.000%, 06/01/13 1,000 998
Tobacco Settlement Financing
Corp., RB, 5.250%, 06/01/19,
Callable 06/01/15 @ 100 240 245
Tobacco Settlement Financing
Corp., RB, 5.500%, 06/01/26,
Callable 06/01/15 @ 100 1,000 1,025
University of Virginia, RB,
5.000%, 06/01/17, Callable
06/01/15 @ 100 1,000 1,067
Upper Occoquan Sewer Authority,
RB, 5.000%, 07/01/21, Callable
07/01/15 @ 100, FSA 1,000 1,055
Upper Occoquan Sewer Authority,
RB, 5.000%, 07/01/25, Callable
07/01/15 @ 100, FSA 1,000 1,049
Virginia College Building
Authority, Educational
Facilities, Public Higher
Education Financing Program,
Ser A, RB, 5.000%, 09/01/10 1,245 1,310
Virginia Commonwealth
Transportation Board, Ser A,
RB, 5.375%, 05/15/12, Callable
05/15/11 @ 100 1,000 1,073
Virginia Housing Development
Authority, Ser D, RB, AMT,
5.375%, 04/01/06 715 715
Virginia Polytechnic Institute &
State University, Ser D, RB,
5.125%, 06/01/21, Callable
06/01/14 @ 101, AMBAC 1,000 1,071
Virginia Port Authority,
Commonwealth Port Fund, RB,
AMT, 5.900%, 07/01/16,
Callable 07/01/06 @ 101 1,000 1,015
Virginia Public School
Authority, 5.000%, 08/01/15 1,000 1,071
Virginia Public School
Authority, Ser A, RB, 5.000%,
08/01/24, Callable 08/01/14 @
100 1,365 1,428
</Table>
See Notes to Financial Statements.
137
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA MUNICIPAL BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Resources Authority,
Infrastructure, RB, 5.000%,
11/01/22, Callable 11/01/13 @
100 1,250 1,307
Virginia Resources Authority,
Infrastructure, Ser A, RB,
5.800%, 05/01/30, Callable
05/01/11 @ 101, MBIA 1,500 1,635
-------
52,012
-------
PUERTO RICO (2.0%)
Puerto Rico Public Building
Authority, Ser C, RB, 5.500%,
07/01/15, CFIG 1,025 1,137
-------
Total Municipal Bonds (Cost
$53,291) 54,213
-------
MONEY MARKET FUNDS (1.4%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 807,723 808
-------
Total Money Market Funds (Cost
$808) 808
-------
Total Investments (Cost $54,099)
(a) -- 98.1% 55,021
Other assets in excess of
liabilities -- 1.9% 1,079
-------
Net Assets -- 100.0% $56,100
=======
</Table>
- ---------------
(a)Cost for federal income tax purposes is $54,090 (amount
in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $1,201
Unrealized Depreciation................... (270)
------
Unrealized Appreciation (Depreciation).... $ 931
======
</Table>
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
FSA -- Security insured by Financial Security
Assurance
GNMA -- Security insured by the Government National
Mortgage Association
GO -- General Obligation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
138
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CERTIFICATES OF DEPOSIT (16.1%)
BANKS (15.4%)
Calyon, Inc. NY, 4.300%,
04/26/06 40,000 39,997
Calyon, Inc. NY, 4.780%,
01/12/07 50,000 50,004
Canadian Imperial Bank NY,
4.800%, 01/29/07 (b) 50,000 50,000
Credit Agricole SA, 4.500%,
04/10/06 50,000 50,000
Credit Agricole SA, 4.805%,
01/29/07 50,000 50,000
Credit Suisse NY, 4.825%,
05/22/06 25,000 25,000
Credit Suisse NY, 4.800%,
01/16/07 39,000 39,001
Credit Suisse NY, 5.210%,
03/29/07 50,000 50,002
Credit Suisse NY, 4.740%,
05/19/06 (b) 50,000 50,000
Deutsche Bank AG, 4.805%,
02/21/07 75,000 74,956
First Tennessee Bank,
4.780%, 04/28/06 50,000 50,000
Fortis Bank NY, 4.790%,
05/03/06 50,000 50,000
Fortis Bank NY, 3.610%,
06/07/06 50,000 50,000
HSBC Bank PLC, 4.560%,
04/19/06 50,000 49,997
National City Bank, 4.860%,
10/12/06 (b) 50,000 50,012
Nordea Bank Finland PLC NY,
4.820%, 01/30/07 50,000 50,002
Royal Bank of Canada NY,
4.695%, 05/19/06 50,000 50,000
Royal Bank of Scotland NY,
4.755%, 10/27/06 25,000 25,001
Royal Bank of Scotland NY,
4.840%, 01/30/07 50,000 50,000
Swedbank, 4.865%, 02/02/07 50,000 50,002
Toronto-Dominion Bank,
3.635%, 04/10/06 75,000 75,001
Wells Fargo Bank NA,
4.800%, 01/19/07 (b) 50,000 50,000
----------
1,078,975
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.7%)
Alliance & Leicester PLC,
4.520%, 04/21/06 50,000 49,999
----------
Total Certificates of Deposit
(Cost $1,128,974) 1,128,974
----------
COMMERCIAL PAPERS (34.6%)
BANKS (9.1%)
Allied Irish Banks N.A.,
4.614%, 04/03/06 (c) (d) 20,000 19,995
Allied Irish Banks N.A.,
4.624%, 04/13/06 (c) (d) 50,000 49,924
ANZ National International
Ltd., 4.942%, 07/10/06
(c) (d) 7,850 7,744
ASB Bank Ltd., 4.626%,
04/21/06 (c) (d) 49,000 48,875
DnB Nor Bank ASA, 4.470%,
04/05/06 (c) 50,000 49,975
Rabobank USA Financial
Corp., 4.329%, 04/03/06
(c) 32,025 32,017
Santander Central Hispano
International Ltd.,
4.910%, 06/23/06 (c) (d) 30,000 29,665
Santander Central Hispano
International Ltd.,
4.923%, 07/18/06 (c) (d) 50,000 49,274
Societe Generale North
America, 4.784%, 04/03/06
(c) 75,000 74,980
Societe Generale North
America, 4.662%, 09/05/06
(c) 50,000 49,014
Spintab AB, 4.469%,
04/04/06 (c) 48,000 47,982
Swedbank, 4.480%, 04/04/06
(c) 75,000 74,972
Swedbank, 4.730%, 07/19/06
(c) 50,000 49,300
Westpac Banking Corp.,
4.703%, 06/30/06 (c) (d) 50,000 49,424
----------
633,141
----------
</Table>
See Notes to Financial Statements.
139
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (22.0%)
Amstel Funding Corp.,
4.672%, 05/03/06 (c) (d) 60,000 59,754
Amstel Funding Corp.,
4.544%, 05/08/06, LOC:
ABN Amro Bank N.V. (c)
(d) 23,876 23,767
Barton Capital LLC, 4.579%,
04/10/06, LOC: AMBAC/
Societe Generale (c) (d) 75,000 74,916
Bear Stearns & Co., Inc.,
4.810%, 09/15/06 (b) (d) 50,000 50,000
BNP Paribas, 4.339%,
04/03/06 (c) 30,000 29,993
Cheyne Finance LLC, 4.694%,
04/24/06 (c) (d) 44,775 44,642
CIT Group, Inc., 4.285%,
04/06/06 (c) 36,000 35,979
CIT Group, Inc., 4.404%,
04/11/06 (c) 25,000 24,970
CIT Group, Inc., 4.706%,
05/22/06 (c) 17,650 17,534
Cullinan Finance Corp.,
4.559%, 04/12/06 (c) (d) 11,293 11,277
Cullinan Finance Corp.,
4.848%, 05/25/06 (c) (d) 50,000 49,639
Cullinan Finance Corp.,
4.815%, 06/01/06 (c) (d) 34,141 33,866
Danske Corp., 4.776%,
04/07/06 (c) (d) 46,000 45,963
Dexia Delaware LLC, 4.474%,
04/04/06 (c) 17,500 17,494
Dexia Delaware LLC, 4.474%,
04/05/06 (c) 50,000 49,975
Dresdner US Finance, Inc.,
4.510%, 04/11/06 (c) 50,000 49,938
Dresdner US Finance, Inc.,
4.462%, 04/17/06 (c) 25,000 24,951
Dresdner US Finance, Inc.,
4.546%, 05/08/06 (c) 25,000 24,885
Fairway Finance Corp.,
4.779%, 04/12/06, LOC:
Bank of Montreal (c) (d) 50,000 49,927
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Fairway Finance Corp.,
4.792%, 05/01/06, LOC:
Bank of Montreal (c) (d) 50,000 49,801
Fairway Finance Corp.,
5.015%, 09/13/06, LOC:
Bank of Montreal (c) (d) 10,390 10,157
Five Finance, Inc., 4.618%,
04/11/06 (c) (d) 16,600 16,579
Five Finance, Inc., 4.783%,
04/19/06 (c) (d) 6,400 6,385
Fortis Funding LLC, 4.606%,
04/03/06 (c) (d) 50,000 49,987
Grampian Funding LLC,
4.536%, 05/08/06, LOC:
HBOS Treasury Services
PLC (c) (d) 50,000 49,771
Greenwich Capital Holdings,
Inc., 4.590%, 08/25/06
(b) (d) 50,000 50,000
Greenwich Capital Holdings,
Inc., 4.651%, 09/11/06
(b) 25,000 25,000
HBOS Treasury Services PLC,
4.485%, 04/06/06 (c) 59,700 59,663
HSBC USA, Inc., 4.480%,
04/04/06 (c) 26,000 25,990
ING US Funding LLC, 4.588%,
04/07/06 (c) 50,000 49,962
Kitty Hawk Funding Corp.,
4.707%, 04/03/06, LOC:
Bank of America NA (c)
(d) 11,711 11,708
National Australia Funding
Delaware, Inc., 4.727%,
04/04/06 (c) (d) 20,400 20,392
Nordea North America, Inc.,
4.584%, 05/25/06 (c) 11,500 11,423
Old Line Funding LLC,
4.852%, 04/03/06, LOC:
Royal Bank of Canada (c)
(d) 55,027 55,012
Old Line Funding LLC,
4.572%, 04/04/06, LOC:
Royal Bank of Canada (c)
(d) 18,525 18,518
</Table>
See Notes to Financial Statements.
140
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Old Line Funding LLC,
4.711%, 04/07/06, LOC:
Royal Bank of Canada (c)
(d) 9,178 9,171
Old Line Funding LLC,
4.783%, 04/19/06, LOC:
Royal Bank of Canada (c)
(d) 13,571 13,539
Park Avenue Receivables
Corp., 4.757%, 04/18/06,
LOC: JPMorgan Chase Bank
(c) (d) 56,211 56,085
Scaldis Capital LLC,
4.948%, 07/19/06, LOC:
Fortis Bank SA/NV (c) (d) 21,864 21,542
Solitaire Funding LLC,
5.025%, 09/27/06, LOC:
HSBC Bank PLC (c) (d) 50,000 48,782
Southern Co. Funding Corp.,
4.743%, 04/12/06 (c) (d) 17,000 16,975
Stanfield Victoria Funding
LLC, 4.645%, 06/20/06 (c)
(d) 45,000 44,545
Surrey Funding Corp.,
4.614%, 04/12/06, LOC:
Barclays Bank PLC (c) (d) 19,000 18,973
UBS Finance Delaware LLC,
4.535%, 04/28/06 (c) 14,700 14,651
UBS Finance Delaware LLC,
4.930%, 07/07/06 (c) 44,960 44,371
Whistlejacket Capital Ltd.,
4.681%, 04/04/06 (c) (d) 15,748 15,742
Whistlejacket Capital Ltd.,
4.584%, 05/26/06 (c) (d) 10,227 10,157
----------
1,544,351
----------
INSURANCE (3.5%)
ING America Insurance
Holdings, 4.480%,
04/05/06 (c) 48,000 47,976
ING America Insurance
Holdings, 4.551%,
04/17/06 (c) 60,000 59,880
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INSURANCE--CONTINUED
ING America Insurance
Holdings, 4.796%,
05/16/06 (c) 50,000 49,703
Swiss RE Financial Services
Corp., 4.259%, 04/03/06
(c) (d) 50,000 49,988
Swiss RE Financial Services
Corp., 4.795%, 10/20/06
(c) (d) 35,000 34,091
----------
241,638
----------
Total Commercial Papers (Cost
$2,419,130) 2,419,130
----------
CORPORATE BONDS (45.0%)
AGRICULTURE (0.4%)
Cargill, Inc., 6.250%,
05/01/06 (d) 29,770 29,829
----------
AUTO MANUFACTURERS (1.3%)
American Honda Finance
Corp., 4.700%, 05/12/06
(b) (d) 50,000 50,000
American Honda Finance
Corp., 4.510%, 07/10/06
(b) (d) 40,000 40,000
----------
90,000
----------
AUTOMOBILE ABS (1.3%)
Honda Auto Receivables
Owner Trust, Ser 2005-6,
Cl A1, 4.512%, 12/18/06
(b) 14,535 14,535
Nissan Auto Receivables
Owner Trust, Ser 2005-C,
Cl A1, 3.861%, 09/15/06 8,814 8,813
Nissan Auto Receivables
Owner Trust, Ser 2006-A,
Cl A1, 4.663%, 02/15/07 34,866 34,867
USAA Auto Owner Trust, Ser
2005-4, Cl A1, 4.400%,
12/15/06 (b) 15,482 15,476
Volkswagen Auto Loan
Enhanced Trust, Ser
2005-1, Cl A1, 4.366%,
11/20/06 20,469 20,469
----------
94,160
----------
BANKS (8.3%)
Bank of America N.A.,
4.810%, 06/07/06 (b) 15,000 15,000
</Table>
See Notes to Financial Statements.
141
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
BANKS--CONTINUED
Bank of New York Co., Inc.,
4.858%, 04/27/07 (b) (d) 25,000 25,000
Marshall & Ilsley Bank,
5.176%, 12/15/06 50,000 50,123
National Australia Bank,
4.640%, 03/07/07 (b) (d) 75,000 75,000
National City Bank
Cleveland, 4.795%,
01/22/07 (b) 50,000 50,000
Northern Rock PLC, 4.661%,
02/05/07 (b) (d) 50,000 50,000
Royal Bank of Canada,
4.600%, 03/30/07 (b) 75,000 75,000
Skandianaviska Enskil
Banken, 4.681%, 02/09/07
(b) (d) 50,000 50,000
Wachovia Bank N.A., 4.611%,
12/04/06 (b) 17,000 17,000
Wachovia Corp., 4.985%,
12/08/06 (b) 50,000 50,022
Wells Fargo & Co., 4.683%,
04/03/07 (b) 10,000 10,000
Wells Fargo & Co., 4.739%,
04/13/07 (b) (d) 50,000 50,000
Westpac Banking Corp.,
4.721%, 02/16/07 (b) (d) 60,000 60,000
----------
577,145
----------
COMPUTERS (0.4%)
IBM Corp., 4.680%, 04/05/07
(b) (d) 25,000 25,000
----------
DIVERSIFIED FINANCIAL SERVICES (32.8%)
Alliance & Leicester PLC,
4.680%, 04/05/07 (b) (d) 30,000 30,000
American Express Credit
Corp., 4.761%, 04/05/07
(b) 90,000 90,000
Bear Stearns & Co., Inc.,
4.861%, 04/28/07 (b) 125,000 124,999
Beta Finance, Inc., 4.820%,
07/26/06 (b) (d) 50,000 50,000
Beta Finance, Inc., 4.805%,
02/06/07 (b) (d) 75,000 74,994
Beta Finance, Inc., 4.808%,
02/08/07 (b) (d) 30,000 29,997
BMW US Capital LLC, 4.149%,
06/07/06 (b) 50,000 50,030
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Cheyne Finance LLC, 4.818%,
02/26/07 (b) (d) 50,000 49,999
Cheyne Finance LLC, 4.817%,
03/26/07 (b) (d) 50,000 49,999
CIT Group, Inc., 4.750%,
05/12/06 (b) 41,500 41,500
CIT Group, Inc., 4.800%,
08/18/06 (b) 50,000 50,011
Cullinan Finance Corp.,
5.170%, 01/25/07 (d) 50,000 50,000
Dorada Finance, Inc.,
4.808%, 01/12/07 (b) (d) 50,000 49,996
Dorada Finance, Inc.,
4.808%, 02/14/07 (b) (d) 50,000 49,996
Five Finance, Inc., 4.805%,
02/28/07 (b) (d) 50,000 49,995
General Electric Capital
Corp., 4.910%, 05/12/06
(b) 10,115 10,117
General Electric Capital
Corp., 4.791%, 04/09/07
(b) 69,000 69,000
Goldman Sachs Group, Inc.,
4.810%, 10/27/06 (b) 29,315 29,346
Goldman Sachs Group, Inc.,
4.769%, 04/13/07 (b) (d) 100,000 100,000
HSBC Finance Corp., 5.750%,
01/30/07 22,500 22,676
K2 (USA) LLC, 4.810%,
01/11/07 (b) (d) 15,000 14,999
K2 (USA) LLC, 4.910%,
12/04/06 (b) (d) 50,000 50,000
K2 (USA) LLC, 4.820%,
12/08/06 (b) (d) 50,000 49,997
K2 (USA) LLC, 4.810%,
02/08/07 (b) (d) 60,000 59,995
Lehman Brothers, Inc.,
6.250%, 05/15/06 25,000 25,075
Liberty Light US Capital,
4.680%, 05/11/06 (b) (d) 50,000 49,999
Liberty Light US Capital,
4.825%, 01/05/07 (b) (d) 25,000 25,000
Liberty Light US Capital,
4.820%, 01/25/07 (b) (d) 75,000 74,994
Liquid Funding Ltd.,
4.645%, 08/07/06 (b) (d) 50,000 49,998
</Table>
See Notes to Financial Statements.
142
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Liquid Funding Ltd.,
4.732%, 11/17/06 (b) (d) 30,000 29,997
Liquid Funding Ltd.,
4.844%, 11/28/06 (b) (d) 40,000 40,000
Liquid Funding Ltd.,
4.845%, 12/29/06 (b) (d) 15,000 14,998
Liquid Funding Ltd.,
4.815%, 03/15/07 (b) (d) 50,000 49,991
Merrill Lynch & Co., Inc.,
5.120%, 06/09/06 (b) 17,000 17,008
Merrill Lynch & Co., Inc.,
4.721%, 04/04/07 (b) 30,000 30,000
Morgan Stanley, 4.779%,
04/13/07 (b) 75,000 75,000
Morgan Stanley, 4.910%,
04/13/07 (b) 48,500 48,500
National Rural Utilities
Cooperative Finance
Corp., 6.000%, 05/15/06 37,987 38,085
Sigma Finance, Inc.,
4.767%, 05/02/06 (b) (d) 50,000 50,000
Sigma Finance, Inc.,
4.945%, 11/06/06 (b) (d) 50,000 50,005
Sigma Finance, Inc.,
4.920%, 12/05/06 (b) (d) 50,000 50,000
Sigma Finance, Inc.,
4.820%, 01/16/07 (b) (d) 30,000 30,000
Stanfield Victoria LLC,
4.815%, 12/22/06 (b) (d) 50,000 49,991
Stanfield Victoria LLC,
4.830%, 01/22/07 (b) (d) 50,000 49,996
Stanfield Victoria LLC,
4.920%, 01/26/07 Callable
04/18/06 @ 100 (d) 40,000 40,000
Whistlejacket Capital Ltd.,
4.820%, 01/12/07 (b) (d) 30,000 29,997
Whistlejacket Capital Ltd.,
4.820%, 01/17/07 (b) (d) 75,000 74,991
Whistlejacket Capital Ltd.,
4.815%, 02/06/07 (b) (d) 50,000 49,998
----------
2,291,269
----------
INSURANCE (0.5%)
Jefferson-Pilot Capital
Corp., 4.783%, 02/16/07
(b) (d) 35,000 35,000
----------
Total Corporate Bonds (Cost
$3,142,403) 3,142,403
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MASTER NOTES (2.7%)
BANKS (2.7%)
Bank of America Corp.,
4.945%, 09/14/06 (b) 190,000 190,000
----------
Total Master Notes (Cost
$190,000) 190,000
----------
MONEY MARKET FUNDS (1.3%)
Federated Prime Value Money
Market Fund 90,000,000 90,000
----------
Total Money Market Funds
(Cost $90,000) 90,000
----------
REPURCHASE AGREEMENTS (0.8%)
Bear Stearns & Co., Inc.,
4.745%, dated 03/31/06,
to be repurchased on
04/03/06, repurchase
price $7,125,787
(collateralized by U.S.
Government Securities,
5.000%, due 06/15/31;
total market value
$7,268,725) 7,123 7,123
BNP Paribas, 4.655%, dated
03/31/06, to be
repurchased on 04/03/06,
repurchase price
$5,869,840
(collateralized by U.S.
Government Securities,
DN, due 01/22/16; total
market value $5,985,000) 5,868 5,868
Lehman Brothers, Inc.,
4.755%, dated 03/31/06,
to be repurchased on
04/03/06, repurchase
price $13,304,027
(collateralized by U.S.
Government Securities,
DN, due 12/01/34; total
market value $13,567,534) 13,299 13,299
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06,
to be repurchased on
04/03/06, repurchase
price $7,373,147
(collateralized by U.S.
Government Securities,
5.500%, due 02/01/35;
total market value
$7,518,177) 7,370 7,370
</Table>
See Notes to Financial Statements.
143
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
PRIME QUALITY MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Morgan Stanley, 4.705%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$6,422,030
(collateralized by U.S.
Government Securities,
4.500%, due 10/01/18;
total market value
$7,015,912) 6,419 6,419
UBS Warburg LLC, 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$14,505,381
(collateralized by U.S.
Government Securities,
2.318%, due 10/26/23;
total market value
$14,790,213) 14,500 14,500
----------
Total Repurchase Agreements
(Cost $54,579) 54,579
----------
Total Investments (Cost
$7,025,086) (a) -- 100.5% 7,025,086
Liabilities in excess of
other assets -- (0.5)% (32,653)
----------
Net Assets -- 100.0% $6,992,433
==========
</Table>
- ---------------
(a)Aggregate cost for federal income tax and financial
reporting purposes is the same.
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
(d)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
Cl -- Class
DN -- Discount Note
LLC -- Limited Liability Company
PLC -- Public Limited Company
Ser -- Series
See Notes to Financial Statements.
144
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (97.0%)
ALABAMA (1.4%)
Birmingham-Carraway Special
Care Facilities Financing
Authority, Carraway
Methodist Health Project,
Ser A, RB, 3.210%,
08/15/28, LOC: AmSouth
Bank (b) 2,900 2,900
Cherokee Industrial
Development Board, The
BOC Group Project, RB,
3.180%, 04/01/08, LOC:
Wachovia Bank of Georgia
(b) 3,500 3,500
Daphne-Villa Mercy Special
Care Facilities Financing
Authority, Mercy Medical
Project, RB, 3.190%,
12/01/27, LOC: AmSouth
Bank (b) 12,500 12,500
Marion Educational Building
Authority, Judson College
Project, RB, 3.230%,
01/01/33, LOC: SouthTrust
Bank N.A. (b) 6,620 6,620
----------
25,520
----------
ALASKA (2.4%)
Valdez Marine Terminal,
Exxon Pipeline Co.
Project, RB, 3.120%,
10/01/25 (b) 25,000 25,000
Valdez Marine Terminal,
ExxonMobil Project, RB,
3.120%, 12/01/29 (b) 20,000 20,000
----------
45,000
----------
CALIFORNIA (5.1%)
California Housing Finance
Agency, Home Mortgage,
Ser U, RB, AMT, 3.200%,
02/01/31, FSA (b) 36,300 36,300
California Housing Finance
Agency, Home Mortgage,
Ser U, RB, AMT, 3.200%,
02/01/32, FSA (b) 8,900 8,900
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
CALIFORNIA--CONTINUED
Los Angeles Regional
Airports Improvement
Corp., Sublease L.A.
International, RB,
3.150%, 12/01/25, LOC:
Societe Generale (b) 25,000 25,000
Los Angeles Unified School
District, Ser PT-3191,
GO, 3.210%, 07/01/25,
Callable 07/01/15 @ 100,
FGIC (b) 8,000 8,000
San Francisco City & County
Housing Authority,
Valencia Gardens Housing,
RB, AMT, 3.200%,
09/01/49, LOC: Citibank
N.A. (b) 15,000 15,000
----------
93,200
----------
COLORADO (0.3%)
Colorado Housing & Finance
Authority, St. Moritz
Project, Ser H, RB,
3.170%, 10/15/16, FNMA
(b) 5,415 5,415
----------
DISTRICT OF COLUMBIA (1.1%)
District of Columbia,
Planned Parenthood
Project, RB, 3.180%,
12/01/29, LOC: Bank of
America N.A. (b) 6,245 6,245
District of Columbia, The
Phillips Collection
Issue, RB, 3.180%,
08/01/33, LOC: Bank of
America N.A. (b) 5,400 5,400
District of Columbia,
Thurgood Marshall Center
Trust, RB, 3.200%,
11/01/27, LOC: Branch
Banking & Trust Co. (b) 3,345 3,345
Metropolitan Washington
Airports, Ser 05-A, RB,
3.350%, 06/14/06, LOC:
Bank of America (b) 6,000 6,000
----------
20,990
----------
</Table>
See Notes to Financial Statements.
145
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA (6.1%)
De Soto County Industrial
Development, Tremron
Project, RB, 3.300%,
11/01/15, LOC: Branch
Banking & Trust Co. (b) 3,800 3,800
Florida Department of
Environmental Protection,
Preservation, Ser
PT-3335, RB, 3.210%,
07/01/24, Callable
07/01/15 @ 101, MBIA (b) 20,000 20,000
Florida Housing Finance
Agency, Bainbridge
Project, Ser M, RB, AMT,
3.200%, 12/01/25, FNMA
(b) 6,170 6,170
Florida Housing Finance
Corp., Brentwood Club
Apartments Project, Ser
A-1, RB, AMT, 3.190%,
01/15/35, FNMA (b) 10,400 10,400
Florida Housing Finance
Corp., Ser MT-169, RB,
3.250%, 10/01/32, FHLMC 12,750 12,750
Florida Housing Finance
Corp., St. Andrews Pointe
Apartments Project, Ser
E-1, RB, AMT, 3.180%,
06/15/36, FNMA (b) 8,615 8,615
Florida Housing Finance
Corp., Stone Harbor
Apartments Project, Ser
K, RB, AMT, 3.200%,
07/15/36, LOC: AmSouth
Bank (b) 5,560 5,560
Hillsborough County
Industrial Development
Authority, Independent
Day School Project, RB,
3.230%, 09/01/26, LOC:
Bank of America N.A. (b) 2,300 2,300
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Manatee County St.,
Stephens Upper School
Project, RB, 3.230%,
11/01/25, LOC: Bank of
America N.A. (b) 3,200 3,200
Miami-Dade County
Industrial Development
Authority, Gulliver
Schools Project, RB,
3.230%, 09/01/29, LOC:
Bank of America N.A. (b) 7,050 7,050
Orange County Housing
Finance Authority,
Charleston Club
Apartments Project, Ser
A, RB, AMT, 3.200%,
07/15/34, FNMA (b) 7,000 7,000
Santa Rosa County Health
Facilities Authority,
Baptist Hospital, Inc.
Project, RB, 3.180%,
10/01/21, LOC: Bank of
America N.A. (b) 7,700 7,700
Sarasota County Health
Facility Authority, Bay
Village Project, RB,
3.230%, 12/01/23, LOC:
Bank of America N.A. (b) 4,100 4,100
Tampa Bay Water Utility
System, Regional Water
Supply Authority, RB,
AMT, 3.230%, 10/01/31,
LOC: Bank of America N.A.
(b) 9,100 9,100
University of North Florida
Foundation, Inc., Parking
Systems Project, RB,
3.230%, 05/01/28, LOC:
First Union National Bank
(b) 5,400 5,400
----------
113,145
----------
</Table>
See Notes to Financial Statements.
146
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
GEORGIA (1.5%)
Atlanta Airport, Ser 313,
RB, AMT, 3.240%,
01/01/18, Callable
01/01/10 @ 101, FGIC (b) 3,335 3,335
Bulloch County Development
Authority, Ser PT-2594,
RB, 3.210%, 08/01/26,
Callable 08/01/15 @ 100,
XLCA (b) 4,090 4,090
Cobb County Development
Authority, Kennesaw State
University Project, RB,
3.180%, 11/01/18, AMBAC
(b) 4,820 4,820
Houston County Development
Authority, Clean Control
Corp. Project, RB, AMT,
3.300%, 06/01/20, LOC:
Branch Banking & Trust
Co. (b) 2,625 2,625
Metropolitan Atlanta Rapid
Transit Authority, Ser
SG-57, RB, 3.210%,
07/01/20, AMBAC (b) 5,000 5,000
Savannah Economic
Development Authority,
Exempt Facilities --
Consolidated Utilities,
Inc. Project, RB, AMT,
3.300%, 12/01/19, LOC:
Branch Banking & Trust
Co. (b) 2,090 2,090
Savannah Economic
Development Authority,
Kennickell Printing Co.
Project, RB, AMT, 3.300%,
09/01/11, LOC: Branch
Banking & Trust Co. (b) 1,410 1,410
Toombs County Hospital
Authority, Meadows
Regional Medical Center
Project, RB, 3.200%,
12/01/17, LOC: Branch
Banking & Trust Co. (b) 4,500 4,500
----------
27,870
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
HAWAII (0.3%)
Hawaii State Airport
System, Ser PA-1110, RB,
AMT, 3.000%, 07/01/09,
FGIC (b) 4,995 4,995
----------
ILLINOIS (11.2%)
Bloomington-Normal Airport
Authority, GO, 3.600%,
01/01/12, LOC: Bank One
N.A. (b) 600 600
Chicago Airport Special
Facilities, Centerpoint
O'Hare LLC Project, RB,
AMT, 3.260%, 09/01/32,
LOC: Bank One N.A. (b) 2,800 2,800
Chicago Waterworks, Merlots
Project, Ser A 02, GO,
3.370%, 11/01/30 (b) 14,920 14,920
Chicago, Merlots Project,
Ser WWW, GO, 3.210%,
01/01/22, AMBAC (b) 11,000 11,000
Illinois Educational
Facilities Authority,
Chicago Children's Museum
Project, RB, 3.280%,
02/01/28, LOC: Bank One
N.A. (b) 1,600 1,600
Illinois Educational
Facilities Authority,
Museum of Science &
Industry Project, RB,
3.280%, 11/01/15, LOC:
Northern Trust Co. (b) 4,200 4,200
Illinois Finance Authority,
Alexian Brothers Health
Project, RB, 3.180%,
04/01/35, LOC: Bank One
N.A. (b) 31,000 31,000
Illinois Finance Authority,
Resurrection Health, Ser
B, RB, 3.180%, 05/15/35,
LOC: JPMorgan Chase & Co.
(b) 42,700 42,700
</Table>
See Notes to Financial Statements.
147
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ILLINOIS--CONTINUED
Illinois Finance Authority,
Resurrection Health, Ser
C, RB, 3.190%, 05/15/35,
LOC: Lasalle Bank N.A.
(b) 70,100 70,100
Illinois Health Facilities
Authority, Advocate
Health Care Project, Ser
B, RB, 3.180%,
08/15/22 (b) 2,000 2,000
Illinois Health Facilities
Authority, Proctor
Hospital Project, RB,
3.280%, 01/01/12, LOC:
Bank One N.A. (b) 3,000 3,000
Illinois State, Merlots
Project, Ser B04, GO,
3.210%, 12/01/24,
Callable 01/01/12 @100,
FSA (b) 7,225 7,225
Lockport Industrial
Development, Panduit
Corp. Project, RB, AMT,
3.270%, 04/01/25, LOC:
Fifth Third Bank (b) 2,000 2,000
Macon County, Millikin
University Project, RB,
3.200%, 10/01/28, AMBAC
(b) 5,050 5,050
Naperville, Heritage YMCA
Group, Inc. Project, RB,
3.170%, 12/01/29, LOC:
Fifth Third Bank (b) 7,000 7,000
Savanna Industrial
Development, Metform
Corp. Project, Ser A, RB,
AMT, 3.290%, 05/01/14,
LOC: Bank One N.A. (b) 500 500
Savanna Industrial
Development, Metform
Corp. Project, Ser B, RB,
AMT, 3.500%, 06/01/09,
LOC: Bank One N.A. (b) 1,400 1,400
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ILLINOIS--CONTINUED
Wheeling Industrial
Development, Circuit
Service, Inc. Project,
RB, AMT, 3.500%,
04/01/18, LOC: Bank One
Illinois N.A. (b) 1,400 1,400
----------
208,495
----------
INDIANA (3.0%)
Elkhart County Economic
Development, Holly Park,
Inc. Project, RB, AMT,
3.500%, 02/01/10, LOC:
Bank One Indiana N.A. (b) 1,100 1,100
Fort Wayne Economic
Development, Notre Dame
Technical Project, RB,
AMT, 3.290%, 07/01/09,
LOC: Bank One N.A. (b) 1,000 1,000
Indiana Bond Bank, RB,
3.430%, 02/01/22,
Callable 02/01/15 @ 100,
FGIC (b) 5,150 5,150
Indiana Development Finance
Authority, Christel House
Project, RB, 3.170%,
02/01/23, LOC: Fifth
Third Bank (b) 6,255 6,255
Indiana Development Finance
Authority, Culver
Educational Foundation
Project, RB, 3.220%,
01/01/32, LOC: Northern
Trust Co. (b) 12,700 12,700
Indiana Development Finance
Authority, Indiana
Historical Society
Project, RB, 3.220%,
08/01/31, LOC: Bank One
Indiana N.A. (b) 1,200 1,200
Indiana Health Facility
Financing Authority,
Clarian Health Partners,
Inc. Project, Ser B, RB,
3.200%, 02/15/26, LOC:
JPMorgan Chase & Co. (b) 2,000 2,000
</Table>
See Notes to Financial Statements.
148
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
INDIANA--CONTINUED
La Porte County Economic
Development, Pedcor
Investments-Woodland
Project, RB, AMT, 3.290%,
10/01/29, FHLB (b) 1,200 1,200
Marion Economic
Development, Wesleyan
University Project, RB,
3.180%, 06/01/36, LOC:
Bank of America N.A. (b) 10,000 10,000
Marshall County Economic
Development, Culver
Educational Foundation
Project, RB, 3.220%,
01/01/35, LOC: Bank One
N.A. (b) 8,300 8,300
MSD Warren Township Vision
2005 School Building
Corp., Merlots Project,
Ser A52, RB, 3.210%,
07/15/20, FGIC (b) 6,595 6,595
----------
55,500
----------
IOWA (0.6%)
City of Des Moines, Airport
Passenger Facility, Ser
A, RB, 3.150%, 04/05/06,
LOC: Bank of America 5,000 5,000
Iowa Higher Education Loan
Authority, Private
College-Graceland
Project, RB, 3.230%,
02/01/33, LOC: Bank of
America N.A. (b) 3,600 3,600
Sac County Industrial,
Evapco, Inc. Project, RB,
AMT, 3.280%, 07/01/16,
LOC: Bank of America N.A.
(b) 2,400 2,400
----------
11,000
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
KENTUCKY (0.9%)
Campbell County Industrial
Building, Hospital
Imaging Co., Inc.
Project, RB, 3.190%,
04/01/20, LOC: Fifth
Third Bank (b) 2,705 2,705
Kentucky State Turnpike
Authority, Economic
Development, Ser PT-2702,
RB, 3.210%, 07/01/22,
Callable 07/01/15 @ 100,
AMBAC (b) 14,060 14,060
----------
16,765
----------
MARYLAND (1.4%)
Maryland Community
Development
Administration,
Department of Housing &
Community Development,
People's Resource Center,
Ser C, RB, AMT, 3.210%,
09/01/35, LOC: Lloyds TSB
Bank PLC (b) 15,040 15,040
Maryland State Economic
Development Corp., YMCA
of Central Maryland, Inc.
Project, RB, 3.200%,
04/01/28, LOC: Branch
Banking & Trust Co. (b) 3,950 3,950
Maryland State, Ser PA-816,
GO, 3.190%, 03/01/12,
LOC: Merrill Lynch
Capital Services, Inc.
(b) 5,995 5,995
----------
24,985
----------
MASSACHUSETTS (6.3%)
Massachusetts Bay
Transportation Authority,
Sales Tax, Ser PT-2581,
RB, 3.190%, 07/01/26,
LOC: Dexia Credit Local
(b) 29,960 29,960
</Table>
See Notes to Financial Statements.
149
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MASSACHUSETTS--CONTINUED
Massachusetts Development
Finance Agency, Boston
University, Ser R-4, RB,
3.140%, 10/01/42, XLCA
(b) 15,000 15,000
Massachusetts Housing
Finance Agency, Ser
PA-1333, RB, AMT, 3.200%,
07/01/25, Callable
07/01/13 @ 100, FSA (b) 37,165 37,165
Massachusetts State Special
Obligations, Dedicated
Tax, Ser PT-3050, RB,
3.190%, 01/01/30, FGIC
(b) 24,960 24,960
Massachusetts State, Ser
PT-1390, GO, 3.190%,
03/01/10, FSA (b) 9,905 9,905
----------
116,990
----------
MICHIGAN (0.6%)
ABN Amro Munitops
Certificate Trust, Ser
2004-2, RB, AMT, 3.270%,
12/20/11, GNMA (b) 9,780 9,780
Oakland County Economic
Development Corp., Moody
Family Ltd. Project, RB,
AMT, 3.380%, 09/01/12,
LOC: Bank One Michigan
(b) 500 500
----------
10,280
----------
MISSOURI (0.2%)
Carthage Industrial
Development Authority,
Schreiber Project, RB,
AMT, 3.500%, 11/01/10,
LOC: First National Bank
(b) 3,100 3,100
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MISSOURI--CONTINUED
Missouri State
Environmental Improvement
& Energy Resource
Authority, Utilicorp
United, Inc. Project, RB,
AMT, 3.500%, 05/01/28,
LOC: Toronto Dominion
Bank (b) 700 700
----------
3,800
----------
MONTANA (0.5%)
Missoula County Economic
Development, Dinny
Stranahan Research
Institute Project, RB,
3.180%, 06/01/20, LOC:
Northern Trust Co. (b) 8,500 8,500
----------
NEVADA (0.6%)
Nevada State, Ser 344, GO,
3.230%, 05/15/28,
Callable 05/15/08 @ 100,
FGIC (b) 5,495 5,495
Nevada State, Ser SG-114,
3.210%, 03/01/27 (b) 5,000 5,000
----------
10,495
----------
NEW JERSEY (7.0%)
New Jersey Economic
Development Authority,
Ser 1533, RB, 3.200%,
06/15/10, MBIA (b) 16,155 16,155
New Jersey Economic
Development Authority,
Ser PT-1532, RB, 3.200%,
12/15/14, MBIA (b) 10,590 10,590
New Jersey Economic
Development Authority,
Ser PT-2847, RB, 3.200%,
09/01/22, MBIA (b) 39,825 39,825
New Jersey State Turnpike
Authority, Ser PT-2843,
RB, 3.200%, 01/01/30, FSA
(b) 30,605 30,605
New Jersey State, Ser
PT-2742, GO, 3.200%,
07/15/19, AMBAC (b) 12,535 12,535
</Table>
See Notes to Financial Statements.
150
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NEW JERSEY--CONTINUED
New Jersey Transportation
Trust Fund Authority, Ser
PA-802, RB, 3.200%,
12/15/09, FSA (b) 10,000 10,000
New Jersey Transportation
Trust Fund Authority, Ser
PT-2489, RB, 3.200%,
12/15/17, Callable
12/15/15 @ 100, AMBAC/
FGIC (b) 9,380 9,380
----------
129,090
----------
NEW YORK (16.2%)
Metropolitan Transportation
Authority, Ser G, RB,
3.120%, 11/01/26, LOC:
BNP Paribas (b) 50,000 50,000
Metropolitan Transportation
Authority, Ser-1040, RB,
3.200%, 11/15/20,
Callable 11/15/12 @ 100,
FGIC (b) 30,770 30,770
New York City Housing
Development Corp., Morris
Avenue Apartments, Ser A,
RB, AMT, 3.210%,
10/15/38, LOC: HSBC Bank
USA N.A. (b) 21,000 21,000
New York City Housing
Development Corp., Ser
PT-2753, RB, 3.200%,
07/01/25, Callable
07/01/15 @ 100, FGIC (b) 2,250 2,250
New York City Housing
Development Corp., State
Renaissance LLC, Ser A,
RB, AMT, 3.190%,
06/01/37, FHLMC (b) 25,000 25,000
New York City Municipal
Water Finance Authority,
Ser SGB-27, RB, 3.200%,
06/15/24, FSA (b) 9,000 9,000
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NEW YORK--CONTINUED
New York City Municipal
Water Finance Authority,
Water & Sewer System, Ser
PA-1327, RB, 3.200%,
06/15/38, Callable
06/15/13 @ 100, LOC:
Merrill Lynch Capital
Services, Inc. (b) 25,000 25,000
New York City Municipal
Water Finance Authority,
Water & Sewer System, Ser
PA-523, RB, 3.200%,
06/15/30, Callable
06/15/07 @ 101, FGIC (b) 32,740 32,740
New York City Transitional
Finance Authority, Ser 3,
Sub-Ser 3B, RB, 3.040%,
11/01/22, LOC: Citigroup
Global Markets (b) 20,000 20,000
New York City Transitional
Finance Authority, Ser
L11, RB, 3.190%,
11/01/28 (b) 35,000 35,000
New York City, Ser PT-2712,
GO, 3.200%, 08/01/25,
Callable 08/01/15 @ 100,
FGIC (b) 13,955 13,955
New York State Dormitory
Authority, Secondary
Issues, Ser PT-2645, RB,
3.200%, 03/15/17,
Callable 03/15/15 @ 100,
AMBAC (b) 9,940 9,940
New York State Dormitory
Authority, Ser PT-746,
RB, 3.400%, 10/01/17,
Callable 12/14/06 @ 100,
MBIA (b) 1,495 1,495
New York State Thruway
Authority, Ser SG-119,
RB, 3.280%, 01/01/27,
LOC: Societe Generale (b) 7,900 7,900
Sales Tax Asset Receivables
Corp., Ser PT-2450, RB,
3.200%, 10/15/25,
Callable 10/15/14 @ 100,
MBIA (b) 14,960 14,960
</Table>
See Notes to Financial Statements.
151
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NEW YORK--CONTINUED
Southeast Industrial
Development Agency,
Unilock New York, Inc.
Project, RB, AMT, 3.500%,
12/01/12, LOC: Bank One
N.A. (b) 1,800 1,800
----------
300,810
----------
NORTH CAROLINA (3.7%)
Charlotte Airport,
Charlotte-Douglas
International, Ser A, RB,
AMT, 3.220%, 07/01/17,
MBIA (b) 3,500 3,500
Charlotte Water & Sewer,
RB, 3.350%, 08/01/06 29,740 29,740
Cleveland County Family
YMCA, Inc. Recreational
Facilities, RB, 3.200%,
08/01/18, LOC: Branch
Banking & Trust (b) 2,300 2,300
Forsyth County,
Communications System
Project, COP, 3.200%,
10/01/12, LOC: Wachovia
Bank N.A. (b) 9,070 9,070
Guilford County Industrial
Facilities & Pollution
Control Financing, YMCA
of Greensboro, Inc.
Project, RB, 3.200%,
02/01/23, LOC: Branch
Banking & Trust Co. (b) 4,600 4,600
North Carolina Medical Care
Commission Health Care
Facilities, Friends Homes
Project, RB, 3.200%,
09/01/33, LOC: Bank of
America N.A. (b) 6,855 6,855
North Carolina Medical Care
Commission Health Care
Facilities, Lutheran
Services for the Aging
Project, RB, 3.180%,
03/01/28, LOC: Branch
Banking & Trust Co. (b) 7,935 7,935
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina Medical Care
Commission, Westcare
Health Systems
Obligation, Ser A, RB,
3.200%, 09/01/22, LOC:
Branch Banking & Trust
Co. (b) 4,400 4,400
----------
68,400
----------
OHIO (0.6%)
Ohio State Higher
Educational Facility
Commission, Pooled
Financing Project, RB,
3.280%, 09/01/18, LOC:
Fifth Third Bank (b) 3,385 3,385
Rickenbacker Port
Authority, YMCA of
Central Ohio Project, RB,
3.280%, 05/01/22, LOC:
Fifth Third Bank (b) 7,300 7,300
----------
10,685
----------
OTHER (9.0%)
Eagle Tax-Exempt Trust, Ser
20001001, Cl A, GO,
3.210%, 07/01/15,
Callable 07/01/10 @ 100,
LOC: Citibank N.A. (b) 7,025 7,025
Eagle Tax-Exempt Trust, Ser
991301, GO, 3.210%,
06/01/25, FSA (b) (c) 9,900 9,900
Municipal Securities Pool
Trust Receipts, Ser SG
P-18, RB, 3.300%,
01/01/35, LOC: Societe
Generale (b) (c) 1,600 1,600
Municipal Securities Pool
Trust Receipts, Ser SG-PG
17, 3.300%, 06/01/34 (b)
(c) 5,905 5,905
Munimae TE Bond Subsidiary
LLC, Ser PT-3264, RB,
3.260%, 11/15/25, LOC:
Merrill Lynch Capital
Services, Inc. (b) 10,000 10,000
</Table>
See Notes to Financial Statements.
152
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
OTHER--CONTINUED
Munimae Trust, Ser PT-616,
RB, AMT, 3.260%,
12/17/06, FHLMC (b) (c) 5,000 5,000
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-1001,
Cl D, 3.100%,
03/01/40 (c) 9,120 9,120
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-1001,
Cl I, 3.270%,
03/01/40 (b) (c) 9,120 9,120
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-1003,
Cl A, 3.400%,
01/01/32 (b) (c) 19,220 19,220
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-1003,
Cl B, 3.270%,
01/01/32 (b) (c) 55,735 55,735
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-34,
3.860%, 12/01/29 (b) (c) 30,000 30,000
Puttable Floating Rate
Option, Tax-Exempt
Receipts, Ser PPT-36, Cl
A, 3.300%, 01/01/27 (b)
(c) 2,535 2,535
----------
165,160
----------
PENNSYLVANIA (2.1%)
Allegheny County Hospital
Development Authority,
Ser PT-762, RB, 2.850%,
11/01/23, MBIA (b) 15,900 15,900
Cambria County Industrial
Development Authority,
Cambria Cogen Co.
Project, Ser A-1, RB,
AMT, 3.300%, 12/01/28,
LOC: Bayerische Hypo-Und
Vereinsbank (b) 7,125 7,125
Delaware River Port
Authority, Ser PA 965,
RB, 3.200%, 01/01/10, FSA
(b) 5,920 5,920
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PENNSYLVANIA--CONTINUED
Philadelphia Authority for
Industrial Development,
Chemical Heritage
Foundation Project, RB,
3.180%, 07/01/27, LOC:
Wachovia Bank N.A. (b) 8,920 8,920
----------
37,865
----------
SOUTH CAROLINA (2.6%)
South Carolina Educational
Facilities Authority,
Charleston Southern
University Project, RB,
3.180%, 04/01/28, LOC:
Bank of America N.A. (b) 5,450 5,450
South Carolina Educational
Facilities Authority,
Newberry College Project,
RB, 3.200%, 09/01/35,
LOC: Branch Banking &
Trust Co. (b) 8,000 8,000
South Carolina Jobs-
Economic Development
Authority, Anderson Area
YMCA, Inc. Project, RB,
3.230%, 11/01/24, LOC:
Bank of America N.A. (b) 6,900 6,900
South Carolina Jobs-
Economic Development
Authority, DCS
Diversified Coating
Systems, Inc. Project,
RB, AMT, 3.300%,
04/01/17, LOC: Branch
Banking & Trust Co. (b) 2,195 2,195
South Carolina Jobs-
Economic Development
Authority, Sargent Metal
Fabricators, Inc.
Project, RB, AMT, 3.300%,
11/01/22, LOC: Branch
Banking & Trust Co. (b) 2,410 2,410
</Table>
See Notes to Financial Statements.
153
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
SOUTH CAROLINA--CONTINUED
South Carolina Jobs-
Economic Development
Authority, USC
Development Foundation
Project, RB, 3.200%,
12/01/10, LOC: Branch
Banking & Trust Co. (b) 6,000 6,000
South Carolina Jobs-
Economic Development
Authority, YMCA of
Beaufort County Project,
RB, 3.200%, 12/01/24,
LOC: Branch Banking &
Trust Co. (b) 3,310 3,310
South Carolina State
Housing Finance &
Development Authority,
Ser PT-1272, RB, 3.260%,
12/15/30, LOC: Merrill
Lynch Capital Services,
Inc. (b) 10,000 10,000
University of South
Carolina Development
Foundation, RB, 3.200%,
12/01/10, LOC: Branch
Banking & Trust Co. (b) 4,000 4,000
----------
48,265
----------
TENNESSEE (0.4%)
Covington Industrial
Development Board, Charms
Co. Project, RB, AMT,
3.290%, 06/01/27, LOC:
Bank of America N.A. (b) 3,000 3,000
Knox County Industrial
Development Board,
Educational Services of
America Project, RB,
3.200%, 12/01/22, LOC:
Branch Banking & Trust
Co. (b) 3,315 3,315
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
TENNESSEE--CONTINUED
Metropolitan Government,
Nashville & Davidson
County Health &
Educational Facilities
Board, Nashville
Christian School Project,
RB, 3.230%, 09/01/23,
LOC: SouthTrust Bank N.A.
(b) 1,560 1,560
----------
7,875
----------
TEXAS (2.9%)
Brazos County Health
Facility Development
Corp., Ser MT-181, RB,
3.240%, 01/01/19, LOC:
Merrill Lynch Capital
Services, Inc. (b) 30,630 30,630
Harris County Industrial
Development Corp.,
Pollution Control, RB,
3.120%, 03/01/24 (b) 9,800 9,800
Houston Water & Sewer
System, Ser SG-78, RB,
3.210%, 12/01/25 (b) 8,835 8,835
Lower Colorado River
Authority, Merlots
Project, Ser ZZZ, RB,
3.210%, 01/01/28, FSA (b) 3,500 3,500
----------
52,765
----------
VIRGINIA (6.7%)
ABN Amro Munitops
Certificate Trust, Ser
2003-33, RB, 3.190%,
04/01/11, MBIA (b) 5,370 5,370
Charlottesville Industrial
Development Authority,
Seminole Project, Ser A,
RB, 3.120%, 12/01/13,
Callable 12/01/06 @ 100,
LOC: Branch Banking &
Trust Co. (b) 3,450 3,450
</Table>
See Notes to Financial Statements.
154
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Clarke County Industrial
Development Authority,
Powhatan School District
Project, RB, 3.200%,
09/01/22, LOC: Branch
Banking & Trust Co. (b) 1,525 1,525
Danville-Pittsylvania
Regional Industrial
Facility Authority,
Institute of Advanced
Research Project, RB,
3.200%, 08/01/12, LOC:
Branch Banking & Trust
Co. (b) 1,965 1,965
Fairfax County Economic
Development Authority,
Public Broadcasting
Services Project, RB,
3.160%, 07/01/40, LOC:
Bank of America N.A. (b) 7,500 7,500
Fairfax County Industrial
Development Authority,
Inova Health Systems
Project, RB, 3.120%,
01/01/30 (b) 33,000 33,000
Front Royal & Warren County
Industrial Development
Authority, Warren
Memorial Hospital
Project, RB, 3.200%,
05/01/23, LOC: Branch
Banking & Trust Co. (b) 2,895 2,895
Lexington Industrial
Development Authority,
V.M.I. Development Board,
Inc. Project, RB, 3.180%,
12/01/34, LOC: Wachovia
Bank N.A. (b) 10,000 10,000
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Louisa County Industrial
Development Authority,
University of Virginia
Health Services
Foundation Project, RB,
3.190%, 10/01/30, LOC:
First Union National Bank
(b) 3,000 3,000
Norfolk Redevelopment &
Housing Authority,
Student Housing Project,
RB, 3.180%, 07/01/34,
LOC: Bank of America N.A.
(b) 7,000 7,000
Shenandoah County
Industrial Development
Authority, Shenandoah
Memorial Hospital
Project, RB, 3.200%,
11/01/14, LOC: Branch
Banking & Trust Co. (b) 2,915 2,915
University of Virginia,
Merlots Project, Ser B
31, RB, 3.210%, 06/01/27,
Callable 06/01/13 @100,
LOC: Wachovia Bank N.A.
(b) 4,720 4,720
Virginia Beach Development
Authority, Production
Road Ventures Project,
RB, AMT, 3.280%,
09/01/16, LOC: Wachovia
Bank N.A. (b) 1,000 1,000
Virginia Biotechnology
Research Park Authority,
United Network of Organ
Sharing Project, RB,
3.180%, 04/01/27, LOC:
Wachovia Bank N.A. (b) 6,730 6,730
Virginia College Building
Authority, Shenandoah
University Project, RB,
3.190%, 05/01/32, LOC:
Branch Banking & Trust
Co. (b) 3,000 3,000
</Table>
See Notes to Financial Statements.
155
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Housing
Development Authority,
Commonwealth Mortgage,
Ser PA-1310R, RB, 3.190%,
07/01/36, Callable
07/01/11@ 100, MBIA (b) 19,905 19,905
Virginia Resources
Authority, Clean Water,
Ser PA-790, RB, 3.190%,
10/01/16, Callable
10/01/10 @ 100, LOC:
Merrill Lynch Capital
Services, Inc. (b) (c) 2,000 2,000
Virginia State Public
School Authority, Ser
PT-1619, RB, 3.190%,
08/01/08, LOC: Merrill
Lynch Capital Services,
Inc. (b) (c) 2,470 2,470
Williamsburg Industrial
Development Authority,
Colonial Williamsburg
Project, RB, 3.180%,
10/01/35, LOC: First
Union National Bank (b) 4,220 4,220
----------
122,665
----------
WASHINGTON (1.7%)
King County Housing
Authority, Ser PT-2185,
RB, 3.190%, 09/20/42 (b) 5,485 5,485
King County Sewer, Ser
PA-1071, RB, 3.210%,
01/01/10, FSA (b) 7,495 7,495
Seattle Certificates, Ser
348, GO, 3.210%,
12/15/28, Callable
12/15/08 @ 100, LOC:
Morgan Stanley Dean
Witter (b) 4,495 4,495
Washington Public Power
Supply System, Nuclear
Power Project No. 1, Ser
1A-1, RB, 3.170%,
07/01/17, LOC: Bank of
America N.A. (b) 3,540 3,540
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
WASHINGTON--CONTINUED
Washington State, Merlots
Project, Ser B23, GO,
3.210%, 12/01/25,
Callable 06/01/13 @ 100,
MBIA (b) 10,000 10,000
----------
31,015
----------
WISCONSIN (0.6%)
ABN AMRO Munitops
Certificates Trust, Ser
2004-49, GO, 3.220%,
05/01/12, FSA (b) 9,400 9,400
Appleton Industrial
Development, Pro Label
Project, RB, AMT, 3.650%,
11/01/12, LOC: Bank One
N.A. (b) 585 585
Germantown Industrial, J.W.
Speaker Corp. Project,
RB, AMT, 3.650%,
08/01/11, LOC: Bank One
Milwaukee N.A. (b) 490 490
Oconomowoc Industrial
Development, Quest
Technologies Project, RB,
AMT, 3.500%, 05/01/18,
LOC: Bank One Wisconsin
(b) 1,190 1,190
----------
11,665
----------
Total Municipal Bonds (Cost
$1,789,205) 1,789,205
----------
MONEY MARKET FUNDS (2.7%)
Federated Tax-Free
Obligations Fund 12,046,125 12,046
Goldman Sachs Financial
Square Funds, Tax Free
Money Market Fund 36,820,292 36,820
----------
Total Money Market Funds
(Cost $48,866) 48,866
----------
Total Investments (Cost
$1,838,071) (a) -- 99.7% 1,838,071
Other assets in excess of
liabilities -- 0.3% 5,810
----------
Net Assets -- 100.0% $1,843,881
==========
</Table>
See Notes to Financial Statements.
156
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONCLUDED
- ---------------
(a)Aggregate cost for federal income tax and financial
reporting purposes is the same.
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
Cl -- Class
COP -- Certificates of Participation
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FHLB -- Security insured by the Federal Home Loan
Bank
FHLMC -- Security insured by Freddie Mac
FNMA -- Security insured by Fannie Mae
FSA -- Security insured by Financial Security
Assurance
GNMA -- Security insured by the Government National
Mortgage Association
GO -- General Obligation
LLC -- Limited Liability Corporation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
PLC -- Public Limited Company
RB -- Revenue Bond
Ser -- Series
XLCA -- Security insured by XL Capital Assurance, Inc.
See Notes to Financial Statements.
157
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES (67.1%)
FANNIE MAE (18.8%)
3.587%, 04/28/06 (c) 10,000 9,974
4.780%, 05/09/06 (b) 15,000 15,000
4.665%, 05/22/06 (b) 17,000 17,000
3.616%, 05/26/06 (c) 20,000 19,890
4.760%, 07/17/06 (b) 25,000 24,998
4.210%, 09/01/06 (c) 10,000 9,828
4.728%, 12/01/06 (c) 10,000 9,697
4.646%, 12/29/06 (c) 20,000 19,328
--------
125,715
--------
FEDERAL FARM CREDIT BANK (9.7%)
4.760%, 12/28/06 (b) 15,000 15,001
4.750%, 02/01/07 (b) 50,000 49,999
--------
65,000
--------
FEDERAL HOME LOAN BANK (26.9%)
3.604%, 05/02/06 (c) 15,000 14,955
4.710%, 07/21/06 (b) 15,000 14,999
4.720%, 07/21/06 (b) 25,000 25,000
4.205%, 08/25/06 10,000 10,002
4.369%, 09/27/06 (c) 10,000 9,791
4.705%, 11/16/06 (b) 15,000 15,000
4.741%, 12/12/06 (c) 15,000 14,525
4.800%, 02/08/07 (b) 15,000 15,000
4.800%, 02/15/07 (b) 20,000 20,000
4.750%, 03/01/07 (b) 10,000 10,000
4.730%, 03/21/07 (b) 30,000 30,000
--------
179,272
--------
FREDDIE MAC (11.7%)
3.543%, 04/18/06 (c) 10,000 9,984
3.664%, 05/30/06 (c) 15,000 14,913
3.995%, 07/25/06 (c) 10,000 9,877
4.122%, 07/31/06 (c) 10,000 9,867
4.146%, 08/04/06 (c) 10,000 9,861
4.951%, 02/06/07 (c) 10,000 9,591
4.960%, 03/06/07 (c) 15,000 14,332
--------
78,425
--------
Total U.S. Government Agencies
(Cost $448,412) 448,412
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS (32.9%)
Bear Stearns & Co., Inc.,
4.745%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $24,395,139
(collateralized by U.S.
Government Agencies; 5.000%,
06/15/31; total market value
$24,876,712) 24,386 24,386
BNP Paribas, 4.655%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase price
$34,503,564 (collateralized
by U.S. Government Agencies;
DN-5.020%, 11/07/08-02/02/16;
total market value
$35,180,944) 34,490 34,490
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $16,870,556
(collateralized by U.S.
Government Agencies; DN,
11/01/23-02/01/36; total
market value $17,202,389) 16,864 16,864
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $8,583,857
(collateralized by U.S.
Government Agencies; 5.500%,
02/01/35; total market value
$8,754,540) 8,580 8,580
Morgan Stanley, 4.705%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase price
$21,295,871 (collateralized
by U.S. Government Agencies;
4.319%-5.000%,
04/01/18-12/01/33; total
market value $21,713,349) 21,288 21,288
</Table>
See Notes to Financial Statements.
158
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC, 4.755%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase price
$113,760,120 (collateralized
by U.S. Government Agencies;
DN-5.500%, 10/26/23-01/25/41;
total market value
$115,991,940) 113,715 113,715
--------
Total Repurchase Agreements (Cost
$219,323) 219,323
--------
Total Investments (Cost $667,735)
(a) -- 100.0% 667,735
Liabilities in excess of other
assets -- (0.0)% (194)
--------
Net Assets -- 100.0% $667,541
========
</Table>
- ---------------
(a)Aggregate cost for federal income tax and financial
reporting purposes is the same.
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rate represents the effective yield at purchase.
DN -- Discount Note
LLC -- Limited Liability Company
See Notes to Financial Statements.
159
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. TREASURY MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
U.S. TREASURY OBLIGATIONS (36.1%)
U.S. TREASURY BILLS (29.8%)
4.689%, 04/17/06 (b) 250,000 249,545
4.542%, 04/20/06 (b) 247,000 246,372
----------
495,917
----------
U.S. TREASURY NOTES (6.3%)
2.500%, 05/31/06 61,100 60,910
2.375%, 08/31/06 32,400 32,130
2.625%, 11/15/06 12,100 11,969
----------
105,009
----------
Total U.S. Treasury Obligations
(Cost $600,926) 600,926
----------
REPURCHASE AGREEMENTS (64.2%)
ABN AMRO Bank N.V., 4.435%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$220,270,737
(collateralized by U.S.
Treasury Obligations,
DN-7.250%, due
08/31/06-08/15/28; total
market value $224,594,119) 220,190 220,190
Bear Stearns & Co., Inc.,
4.405%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price
$73,019,232 (collateralized
by U.S. Treasury
Obligations,
1.875%-6.1250%, due
07/15/15-11/15/27; total
market value $74,468,333) 72,992 72,992
BNP Paribas, 4.405%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $199,070,621
(collateralized by U.S.
Treasury Obligations, DN,
due 08/10/06-08/17/06;
total market value
$202,978,341) 198,998 198,998
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Deutsche Bank AG, 4.455%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$31,429,846 (collateralized
by U.S. Treasury
Obligations, 4.500%-8.000%,
due 05/15/07-10/15/21;
total market value
$32,047,202) 31,418 31,418
Dresdner Bank AG, 4.455%,
dated 03/31/06, to be
repurchased 04/03/06,
repurchase price
$29,852,206 (collateralized
by U.S. Treasury
Obligations, 3.375%-6.125%,
due 08/15/07-11/15/15;
total market value
$30,441,373) 29,841 29,841
Greenwich Capital Markets,
Inc., 4.435%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $119,518,288
(collateralized by U.S.
Treasury Obligations,
4.250%, due 01/15/11; total
market value $121,864,933) 119,474 119,474
JPMorgan Chase & Co., 4.355%,
dated 03/31/06, to be
repurchased 04/03/06,
repurchase price
$61,585,573 (collateralized
by U.S. Treasury
Obligations, 4.500%, due
02/15/16; total market
value $62,795,324) 61,563 61,563
Lehman Brothers, Inc.,
4.455%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price $3,538,302
(collateralized by U.S.
Treasury Obligations,
6.250%, due 05/15/30; total
market value $3,608,213) 3,537 3,537
</Table>
See Notes to Financial Statements.
160
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
U.S. TREASURY MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Merrill Lynch & Co., Inc.,
4.385%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price
$40,660,843 (collateralized
by U.S. Treasury
Obligations, 8.750%-9.125%,
due 05/15/17-05/15/18;
total market value
$41,461,619) 40,646 40,646
Morgan Stanley, 4.445%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $32,241,434
(collateralized by U.S.
Treasury Obligations, DN,
due 02/15/22; total market
value $32,874,308) 32,229 32,229
UBS Warburg LLC, 4.455%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$256,213,547
(collateralized by U.S.
Treasury Obligations,
3.625%, due 01/15/08; total
market value $261,244,737) 256,119 256,119
----------
Total Repurchase Agreements
(Cost $1,067,007) 1,067,007
----------
Total Investments (Cost
$1,667,933) (a) -- 100.3% 1,667,933
Liabilities in excess of other
assets -- (0.3)% (5,395)
----------
Net Assets -- 100.0% $1,662,538
==========
</Table>
- ---------------
(a) Aggregate cost for federal income tax purposes is
$1,667,935 (amount in thousands). Unrealized appreciation/(depreciation) on
a tax basis is as follows (amounts in thousands):
<Table>
Unrealized Appreciation................... $ --
Unrealized Depreciation................... (2)
-----
Unrealized Appreciation (Depreciation).... $ (2)
=====
</Table>
(b) Rate represents the effective yield at purchase.
DN -- Discount Note
LLC -- Limited Liability Corporation
See Notes to Financial Statements.
161
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (94.7%)
GUAM (2.1%)
Guam Power Authority, Ser
PA-531, RB, 3.170%,
10/01/18, LOC: Merrill
Lynch Capital Services,
Inc. (b) 11,025 11,025
--------
OTHER (2.0%)
Eagle Tax Exempt Trust
Certificates, Ser 994601,
RB, 3.210%, 05/15/19,
Callable 05/15/09 @ 101
LOC: Citibank N.A. (b) (c) 10,560 10,559
--------
VIRGINIA (82.7%)
Albemarle County Industrial
Development Authority,
University of Virginia
Health Services Project,
RB, 3.180%, 10/01/22, LOC:
Wachovia Bank N.A. (b) 5,995 5,995
Alexandria Industrial
Development Authority,
American Red Cross Project,
RB, 3.230%, 01/01/09, LOC:
First Union National Bank
(b) 1,600 1,600
Alexandria Industrial
Development Authority,
Association for Supervision
& Currency Project, RB,
3.180%, 07/01/23, LOC:
Wachovia National Bank N.A.
(b) 1,330 1,330
Alexandria Industrial
Development Authority,
Educational Facilities,
Alexandria County Day
School Project, RB, 3.230%,
06/01/25, LOC: First Union
National Bank (b) 4,180 4,180
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Alexandria Industrial
Development Authority,
Pooled Loan Program, Ser A,
RB, 3.180%, 07/01/26, LOC:
Bank of America N.A. (b) 1,000 1,000
Arlington County, Ballston
Public Parking Project, RB,
3.270%, 08/01/17, LOC:
Citibank N.A. (b) 6,550 6,550
Arlington County, GO, 4.750%,
10/01/06, State Aid
Withholding 6,420 6,469
Arlington County, Public
Improvement, GO, 3.000%,
05/15/06, State Aid
Withholding 1,725 1,726
Ashland Industrial
Development Authority,
Health & Community Services
Facilities, YMCA Greater
Richmond Project, Ser A,
RB, 3.180%, 11/01/20, LOC:
Wachovia Bank N.A. (b) 8,420 8,420
Charles City & County
Economic Development
Authority, Waste
Management, Inc. Project,
Ser A, RB, AMT, 3.230%,
02/01/29, LOC: JPMorgan
Chase & Co. (b) 4,000 4,000
Chesapeake Bay Bridge &
Tunnel Community District
Authority, General
Resolution Project, RB,
3.200%, 07/01/25, MBIA (b) 6,755 6,755
Chesterfield County
Industrial Development
Authority, Ser PT-2133, RB,
3.260%, 02/15/07, LOC:
Merrill Lynch Capital
Services, Inc. (b) 7,995 7,995
</Table>
See Notes to Financial Statements.
162
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Chesterfield County
Industrial Development
Authority, Virginia State
University Real Estate
Project, Ser A, RB, 3.180%,
07/01/29, LOC: Bank of
America N.A. (b) 1,265 1,265
Clarke County Industrial
Development Authority,
Hospital Facilities,
Winchester Medical Center
Project, RB, 3.200%,
01/01/30, FSA (b) 18,000 18,000
Danville-Pittsylvania
Regional Industrial
Facility Authority,
Institute of Advanced
Research Project, RB,
3.200%, 08/01/12, LOC:
Branch Banking & Trust Co.
(b) 6,040 6,040
Fairfax County Economic
Development Authority,
Flint Hill School Project,
RB, 3.240%, 09/01/21, LOC:
First Union National Bank
(b) 4,510 4,510
Fairfax County Economic
Development Authority,
Public Broadcasting
Services Project, RB,
3.160%, 07/01/40, LOC: Bank
of America N.A. (b) 12,000 12,000
Fairfax County Economic
Development Authority,
Smithsonian Institute, Ser
A, RB, 3.160%, 12/01/33,
LOC: Bank of America N.A.
(b) 4,000 4,000
Fairfax County Economic
Development Authority,
Smithsonian Institute, Ser
B, RB, 3.100%, 12/01/33,
LOC: Bank of America N.A.
(b) 3,700 3,700
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Fairfax County Industrial
Development Authority,
Fairfax Hospital Project,
Ser A, RB, 3.120%,
10/01/25 (b) 1,200 1,200
Fairfax County Industrial
Development Authority,
Fairfax Hospital Project,
Ser B, RB, 3.120%,
10/01/25 (b) 4,345 4,345
Fairfax County Industrial
Development Authority,
Inova Health Systems
Project, RB, 3.120%,
01/01/30 (b) 8,925 8,925
Fairfax County Industrial
Development Authority,
Inova Services Project, Ser
A, RB, 3.120%, 01/15/22 (b) 800 800
Fairfax County Water
Authority, Municipal Trade
Receipts Project, Ser
SGB-40A, RB, 3.210%,
04/01/30 (b) 7,850 7,850
Fairfax County Water
Authority, Ser A-18, RB,
3.190%, 04/01/23, LOC: IXIS
Municipal Products (b) 6,405 6,405
Front Royal & Warren County
Industrial Development
Authority, Warren Memorial
Hospital Project, RB,
3.200%, 05/01/23, LOC:
Branch Banking & Trust Co.
(b) 570 570
Greater Richmond Convention
Center Authority, Hotel
Tax, Ser PT-2570, RB,
3.190%, 06/15/23, Callable
06/15/15 @ 100, MBIA (b) 7,175 7,175
Greene County Industrial
Development Authority, Blue
Ridge School Project, RB,
3.200%, 06/01/26, LOC:
Branch Banking & Trust Co.
(b) 5,730 5,730
</Table>
See Notes to Financial Statements.
163
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Hampton Redevelopment &
Housing Authority, Multi-
Family Housing, Avalon
Pointe Project, RB, AMT,
3.210%, 06/15/26, FNMA (b) 4,537 4,537
Hampton Roads Jail Authority,
Ser 569, RB, 3.210%,
07/01/12, MBIA (b) 1,190 1,190
Hanover County Industrial
Development Authority,
Residential Care Facility,
Covenant Woods Project, RB,
3.200%, 07/01/29, LOC:
Branch Banking & Trust Co.
(b) 16,430 16,430
Harrisonburg Redevelopment &
Housing Authority,
Multi-Family Housing, Ser
PT-3097, RB, 3.300%,
05/01/40 (b) 8,770 8,770
Harrisonburg Redevelopment &
Housing Authority,
Multi-Family Housing,
Stoney Ridge/Dale Project,
RB, 3.110%, 08/01/32, FHLMC
(b) 8,810 8,810
Henrico County Economic
Development Authority,
Exempt Facility, White Oak
Ltd. Project, RB, 3.220%,
10/01/27, LOC: Citibank
N.A. (b) 1,000 1,000
Henrico County Economic
Development Authority,
Steward School Project, RB,
3.200%, 07/01/33, LOC:
Branch Banking & Trust Co.
(b) 2,700 2,700
James City & County Economic
Development Authority,
Industrial Development,
Historic Jamestown Project,
RB, 3.180%, 11/01/24, LOC:
Wachovia Bank N.A. (b) 800 800
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
King George County Industrial
Development Authority,
Exempt Facilities,
Birchwood Power Partners
Project, RB, 3.250%,
11/01/25, LOC: Credit
Suisse First Boston (b) 2,000 2,000
King George County Industrial
Development Authority,
Exempt Facilities,
Birchwood Power Partners
Project, RB, 4.70%, 3/1/27,
3.250%, 03/01/27, LOC:
Credit Suisse First Boston
(b) 5,000 5,000
King George County Industrial
Development Authority,
Exempt Facility, Birchwood
Power Partners, Ser B, RB,
AMT, 3.190%, 12/01/24, LOC:
Bank of Nova Scotia (b) 2,000 2,000
King George County Industrial
Development Authority,
Lease, Ser PT-2473, RB,
3.190%, 03/01/24, FSA (b) 5,240 5,240
Loudon County Industrial
Development Authority,
Howard Hughes Medical
Institute Project, Ser C,
RB, 3.140%, 02/15/38 (b) 5,055 5,055
Loudon County Industrial
Development Authority,
Howard Hughes Medical
Institute Project, Ser D,
RB, 3.170%, 02/15/38 (b) 11,950 11,950
Loudon County Industrial
Development Authority,
Howard Hughes Medical
Institute Project, Ser E,
RB, 3.170%, 02/15/38 (b) 4,000 4,000
Loudon County Industrial
Development Authority,
Howard Hughes Medical
Institute Project, Ser F,
RB, 3.160%, 02/15/38 (b) 4,400 4,400
</Table>
See Notes to Financial Statements.
164
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Louisa County Industrial
Development Authority,
Pooled Financing Project,
RB, 3.180%, 01/01/20, LOC:
Bank of America N.A. (b) 1,000 1,000
Lynchburg Industrial
Development Authority,
Aerofin Project, RB, AMT,
3.310%, 03/01/29, LOC: PNC
Bank N.A. (b) 2,075 2,075
Lynchburg Industrial
Development Authority,
Educational Facilities,
Randolph Macon Project, RB,
3.180%, 09/01/23, LOC:
Wachovia Bank N.A. (b) 7,800 7,800
Lynchburg Industrial
Development Hospital
Facilities, VHA First
Mortgage, Mid Atlantic
Project, Ser G, RB, 3.170%,
12/01/25, AMBAC (b) 6,930 6,930
Newport News Industrial
Development Authority, CNU
Warwick LLC Student Housing
Project, RB, 3.180%,
11/01/28, LOC: Bank of
America N.A. (b) 4,300 4,300
Norfolk Economic Development
Authority, Hospital
Facilities, RB, 3.210%,
11/01/34, LOC: Citigroup
Global Markets (b) 3,000 3,000
Orange County Industrial
Development Authority,
Zamma Project, RB, 3.330%,
12/01/22, LOC: SouthTrust
Bank N.A. (b) 1,815 1,815
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Peninsula Ports Authority,
Dominion Terminal
Associates Project, Ser C,
RB, 3.150%, 07/01/16, LOC:
Citibank N.A. (b) 960 960
Peninsula Ports Authority,
Riverside Health Systems
Project, RB, 3.230%,
07/01/37 (b) 13,600 13,600
Peninsula Ports Authority,
Ser 87-A, RB, 3.120%,
04/06/06, LOC: Barclays
Bank NY 3,700 3,700
Richmond, Anticipation Notes,
GO, 4.500%, 06/22/06 4,750 4,764
Richmond, Ser PT-1601,
3.190%, 07/15/17, LOC:
Merrill Lynch Capital
Services, Inc. (b) 9,285 9,285
Roanoke Industrial
Development Authority,
Hollins University Project,
RB, 3.180%, 05/01/15, LOC:
First Union National Bank
(b) 5,500 5,500
Rockingham County Industrial
Development Authority,
Sunnyside Presbyterian
Project, RB, 3.200%,
12/01/33, LOC: Branch
Banking & Trust Co. (b) 10,145 10,145
Spotsylvania County Economic
Development Authority,
Public Facilities, Ser
PT-2882, RB, 3.190%,
02/01/25, Callable 02/01/15
@ 100, FSA (b) 1,990 1,990
University of Virginia, Ser
A, RB, 3.100%, 06/01/34 (b) 20,200 20,200
Virginia Beach Development
Authority, Ocean Ranch
Project, RB, 3.200%,
07/01/17, LOC: Branch
Banking & Trust Co. (b) 1,740 1,740
Virginia Beach Water & Sewer,
RB, 2.800%, 10/01/06 2,835 2,835
</Table>
See Notes to Financial Statements.
165
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia College Building
Authority, Education
Facilities, Ser 134, RB,
3.210%, 09/01/07, FSA (b) 9,400 9,400
Virginia Commonwealth
Transportation Board,
Federal Highway
Reimbursement, RB, 3.000%,
10/01/06 20,940 20,961
Virginia Commonwealth
Transportation Board, Ser
SG 134, RB, 3.190%,
05/15/22, Callable 05/15/09
@ 101, LOC: Societe
Generale (b) 6,995 6,995
Virginia Housing Development
Authority, Commonwealth
Mortgage, Ser A, RB, AMT,
3.000%, 04/01/06 3,000 3,000
Virginia Housing Development
Authority, Commonwealth
Mortgage, Ser PA-1310R, RB,
3.190%, 07/01/36, Callable
07/01/11@ 100, MBIA (b) 12,000 12,000
Virginia Resources Authority,
Clean Water, Ser PA-790,
RB, 3.190%, 10/01/16,
Callable 10/01/10 @ 100,
LOC: Merrill Lynch Capital
Services, Inc. (b) (c) 2,600 2,600
Virginia Resources Authority,
Infrastructure, Virginia
Pooled Financing Project,
Ser C, RB, 5.000%, 11/01/06 1,195 1,207
Virginia Small Business
Financing Authority,
Virginia Museum of Fine
Arts Foundation, RB,
3.160%, 08/01/35, LOC:
Wachovia National Bank N.A.
(b) 1,000 1,000
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Small Business
Financing Authority, Clarke
County Industrial
Development Project,
PA-1052, RB, AMT, 3.300%,
07/01/25, LOC: Branch
Banking & Trust Co. (b) 1,695 1,695
Virginia State Port
Authority, Port Facility,
Ser SG-111, RB, 3.240%,
07/01/24 (b) 14,705 14,705
Virginia State Public
Building Authority, Ser
131, RB, 3.200%, 08/01/19,
Callable 08/01/08 @ 100 (b) 1,785 1,785
Virginia State Public School
Authority, Ser PT-1619, RB,
3.190%, 08/01/08, LOC:
Merrill Lynch Capital
Services, Inc. (b) (c) 8,450 8,450
Virginia State Public School
Authority, Ser II-R 4050,
RB, 3.210%, 08/01/17,
Callable 08/01/13 @ 100 (b) 4,110 4,110
Virginia State Public School
Authority, Ser PT-2746, RB,
3.190%, 08/01/16, Callable
08/01/15 @ 100, State Aid 5,800 5,800
Withholding (b)
Virginia State Public School
Authority, Ser PT-3269,
3.190%, 08/01/20, Callable
08/01/15 @ 100, State Aid
Withholding (b) 11,000 11,000
Williamsburg Industrial
Development Authority,
Colonial Williamsburg
Museum Foundation Project,
RB, 3.180%, 12/01/18, LOC:
Bank of America N.A. (b) 250 250
--------
439,014
--------
</Table>
See Notes to Financial Statements.
166
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PUERTO RICO (7.9%)
Puerto Rico Commonwealth, Ser
PA-625, GO, 3.160%,
07/01/10, AMBAC (b) 3,000 3,000
Puerto Rico Commonwealth, Ser
PA-774 R, 3.160%, 07/01/13,
LOC: Merrill Lynch Capital
Services, Inc. (b) (c) 7,040 7,040
Puerto Rico Electric Power
Authority, Ser PA-778R, RB,
3.160%, 07/01/20, FSA (b) 3,400 3,400
Puerto Rico Electric Power
Authority, Ser PT-2636, RB,
3.160%, 07/01/24, Callable
07/01/15 @ 100, FGIC (b)
(c) 3,000 3,000
Puerto Rico Electric Power
Authority, Ser PT-2957, RB,
3.160%, 07/01/24, Callable
07/01/15 @ 100, MBIA (b)
(c) 1,700 1,700
Puerto Rico Municipal Finance
Agency, Ser PT-3326, RB,
3.160%, 08/01/21, CIFG (b) 4,845 4,845
Puerto Rico Public Building
Authority, Ser 577, RB,
3.160%, 07/01/21, Callable
07/01/07 @ 101.5, AMBAC (b)
(c) 7,000 7,000
Puerto Rico Public Building
Authority, Ser PT-2973, RB,
3.160%, 07/01/16, FGIC (b)
(c) 5,545 5,545
Puerto Rico Public Finance
Corp., Ser PA-502, 3.160%,
06/01/19, LOC: Merrill
Lynch Capital Services,
Inc. (b) (c) 6,315 6,315
--------
41,845
--------
Total Municipal Bonds (Cost
$502,443) 502,443
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MONEY MARKET FUNDS (4.8%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 25,238,217 25,238
--------
Total Money Market Funds (Cost
$25,238) 25,238
--------
Total Investments (Cost
$527,681) (a) -- 99.5% 527,681
Other assets in excess of
liabilities -- 0.5% 2,390
--------
Net Assets -- 100.0% $530,071
========
</Table>
- ---------------
(a)Aggregate cost for federal income tax and financial
reporting purposes is the same.
(b)Variable rate security. Rate presented represents rate in
effect at March 31, 2006. Maturity date represents actual maturity date.
(c)Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The Fund's advisor has
deemed this security to be liquid based upon procedures approved by the Board
of Trustees.
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FHLMC -- Security insured by Federal Home Loan
Mortgage Corporation
FNMA -- Security insured by Fannie Mae
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LLC -- Limited Liability Corporation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
RB -- Revenue Bond
Ser -- Series
See Notes to Financial Statements.
167
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Core Florida Georgia High High Intermediate
Bond Tax-Exempt Tax-Exempt Income Quality Bond
Fund Bond Fund Bond Fund Fund Bond Fund Fund
-------- ---------- ---------- ------- --------- ------------
Assets:
Investments, at Cost.................................. $540,378 $177,040 $125,318 $82,822 $49,614 $80,626
======== ======== ======== ======= ======= =======
Investments, at Value*................................ $492,402 $177,566 $127,791 $80,757 $48,546 $77,214
Repurchase Agreements, at Cost........................ 38,470 -- -- 2,909 -- 1,961
-------- -------- -------- ------- ------- -------
Total Investments..................................... 530,872 177,566 127,791 83,666 48,546 79,175
Interest and Dividends Receivable..................... 4,325 2,550 1,688 1,482 515 875
Receivable for Capital Shares Issued.................. 2,289 54 209 227 86 202
Receivable for Investment Securities Sold............. 2,895 -- -- 4,612 -- 409
Prepaid Expenses and Other Assets..................... 2 1 1 2 -- --
-------- -------- -------- ------- ------- -------
Total Assets.......................................... 540,383 180,171 129,689 89,989 49,147 80,661
-------- -------- -------- ------- ------- -------
Liabilities:
Income Distributions Payable.......................... 1,932 492 398 430 184 300
Payable to Custodian.................................. -- -- -- 348 -- --
Payable for Investment Securities Purchased........... 40,029 -- -- 5,997 -- 1,305
Payable for Capital Shares Redeemed................... -- 363 -- 21 30 763
Payable upon Return of Securities Loaned.............. -- -- -- 9,887 -- --
Investment Advisory Fees Payable...................... 101 85 60 38 17 17
Administration Fees Payable........................... 10 4 2 -- 1 --
Compliance Services Fees Payable...................... 1 -- -- -- -- --
Distribution and Service Fees Payable................. -- 8 9 31 -- --
Custodian Fees Payable................................ 13 3 2 5 3 6
Accrued Expenses...................................... 46 15 11 3 4 11
-------- -------- -------- ------- ------- -------
Total Liabilities..................................... 42,132 970 482 16,760 239 2,402
-------- -------- -------- ------- ------- -------
Total Net Assets...................................... $498,251 $179,201 $129,207 $73,229 $48,908 $78,259
======== ======== ======== ======= ======= =======
Capital............................................... $512,234 $178,555 $127,359 $74,194 $51,327 $80,394
Undistributed (Distribution in Excess of) Net
Investment Income (Loss)............................ 36 (11) (734) 32 80 26
Accumulated Net Realized Gains (Losses) on Investment
Transactions........................................ (4,513) 131 109 (1,841) (1,431) (710)
Net Unrealized Appreciation (Depreciation) on
Investments......................................... (9,506) 526 2,473 844 (1,068) (1,451)
-------- -------- -------- ------- ------- -------
Total Net Assets...................................... $498,251 $179,201 $129,207 $73,229 $48,908 $78,259
======== ======== ======== ======= ======= =======
NET ASSETS:
I Shares.............................................. $497,730 $165,341 $115,929 $36,764 $48,908 $78,187
A Shares.............................................. $ 493 $ 5,077 $ 3,711 $ 403 N/A $ 4
C Shares.............................................. $ 28 $ 8,783 $ 9,567 $36,062 N/A $ 68
SHARES OUTSTANDING:
I Shares.............................................. 50,497 15,275 11,405 5,276 5,066 7,939
A Shares.............................................. 49 469 364 58 N/A --
C Shares.............................................. 3 810 940 5,176 N/A 7
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
I Shares.............................................. $ 9.86 $ 10.82 $ 10.16 $ 6.97 $ 9.65 $ 9.85
A Shares.............................................. $ 10.15 $ 10.83 $ 10.18 $ 6.98 N/A $ 9.85
C Shares**............................................ $ 9.86 $ 10.85 $ 10.17 $ 6.97 N/A $ 9.85
OFFERING PRICE PER SHARE (100%/(100%-maximum sales
charge) of net asset value adjusted to the nearest
cent):
I Shares.............................................. $ 9.86 $ 10.82 $ 10.16 $ 6.97 $ 9.65 $ 9.85
A Shares.............................................. $ 10.66 $ 11.37 $ 10.69 $ 7.33 N/A $ 10.34
C Shares.............................................. $ 9.86 $ 10.85 $ 10.17 $ 6.97 N/A $ 9.85
Maximum Sales Charge -- A Shares........................ 4.75% 4.75% 4.75% 4.75% N/A 4.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* The High Income Fund includes securities on loan of $9,422.
** Redemption price per share varies by length of time shares are held.
See Notes to Financial Statements.
168
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Limited-
Investment Term Federal
Investment Grade Limited Mortgage Maryland
Grade Bond Tax-Exempt Duration Securities Municipal
Fund Bond Fund Fund Fund Bond Fund
---------- ---------- -------- ------------ ---------
Assets:
Investments, at Cost...................................... $769,206 $331,689 $58,337 $430,953 $41,876
======== ======== ======= ======== =======
Investments, at Value*.................................... $750,533 $331,479 $56,334 $408,753 $42,422
Repurchase Agreements, at Cost............................ 7,221 -- 1,991 15,029 --
-------- -------- ------- -------- -------
Total Investments......................................... 757,754 331,479 58,325 423,782 42,422
Interest and Dividends Receivable......................... 5,418 4,800 634 1,779 501
Receivable for Capital Shares Issued...................... 1,338 281 142 716 141
Receivable for Investment Securities Sold................. 4,537 4,320 -- 84 451
Prepaid Expenses and Other Assets......................... 3 2 1 2 --
-------- -------- ------- -------- -------
Total Assets.............................................. 769,050 340,882 59,102 426,363 43,515
-------- -------- ------- -------- -------
Liabilities:
Payable for Fund Overdraft................................ -- 60 -- -- --
Income Distributions Payable.............................. 2,037 861 188 1,419 128
Payable for Investment Securities Purchased............... 8,109 12,080 8 74 783
Payable for Capital Shares Redeemed....................... 1,565 227 -- 436 38
Payable upon Return of Securities Loaned.................. 243,191 -- -- 29,675 --
Investment Advisory Fees Payable.......................... 224 143 4 168 20
Administration Fees Payable............................... -- 6 1 -- --
Compliance Services Fees Payable.......................... 1 -- -- -- --
Distribution and Service Fees Payable..................... 17 13 -- 18 8
Custodian Fees Payable.................................... 23 5 3 10 2
Accrued Expenses.......................................... 69 35 11 62 2
-------- -------- ------- -------- -------
Total Liabilities......................................... 255,236 13,430 215 31,862 981
-------- -------- ------- -------- -------
Total Net Assets.......................................... $513,814 $327,452 $58,887 $394,501 $42,534
======== ======== ======= ======== =======
Capital................................................... $532,068 $327,341 $58,895 $415,860 $41,929
Undistributed (Distribution in Excess of) Net Investment
Income (Loss)........................................... 812 (162) -- 1,019 (42)
Accumulated Net Realized Gains (Losses) on Investment
Transactions............................................ (7,614) 483 4 (15,207) 101
Net Unrealized Appreciation (Depreciation) on
Investments............................................. (11,452) (210) (12) (7,171) 546
-------- -------- ------- -------- -------
Total Net Assets.......................................... $513,814 $327,452 $58,887 $394,501 $42,534
======== ======== ======= ======== =======
NET ASSETS:
I Shares.................................................. $480,024 $300,986 $58,887 $369,991 $32,699
A Shares.................................................. $ 20,210 $ 16,182 N/A $ 4,398 $ 502
C Shares.................................................. $ 13,580 $ 10,284 N/A $ 20,112 $ 9,333
SHARES OUTSTANDING:
I Shares.................................................. 46,170 26,452 5,897 37,439 3,224
A Shares.................................................. 1,945 1,421 N/A 446 49
C Shares.................................................. 1,306 904 N/A 2,034 917
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
I Shares.................................................. $ 10.40 $ 11.38 $ 9.99 $ 9.88 $ 10.14
A Shares.................................................. $ 10.40 $ 11.39 N/A $ 9.87 $ 10.15
C Shares**................................................ $ 10.40 $ 11.37 N/A $ 9.89 $ 10.16
OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent):
I Shares.................................................. $ 10.40 $ 11.38 $ 9.99 $ 9.88 $ 10.14
A Shares.................................................. $ 10.92 $ 11.96 N/A $ 10.12 $ 10.66
C Shares.................................................. $ 10.40 $ 11.37 N/A $ 9.89 $ 10.16
Maximum Sales Charge -- A Shares............................ 4.75% 4.75% N/A 2.50% 4.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* The Investment Grade Bond Fund and Limited-Term Federal Mortgage Securities
Fund include securities on loan of $235,428 and $28,902, respectively.
** Redemption price per share varies by length of time shares are held.
See Notes to Financial Statements.
169
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Seix Short-Term
North Carolina Floating Rate Seix Short-Term U.S. Treasury Strategic
Tax-Exempt High Income High Yield Bond Securities Income
Bond Fund Fund Fund Fund Fund Fund
-------------- ------------- ---------- ---------- ------------- ---------
Assets:
Investments, at Cost..................... $42,522 $133,774 $1,386,315 $381,187 $80,066 $391,280
======= ======== ========== ======== ======= ========
Investments, at Value*................... $42,457 $133,445 $1,351,189 $376,928 $78,955 $389,512
Repurchase Agreements, at Cost........... -- -- 25,696 -- -- --
------- -------- ---------- -------- ------- --------
Total Investments........................ 42,457 133,445 1,376,885 376,928 78,955 389,512
Cash..................................... -- -- 39 -- -- --
Interest and Dividends Receivable........ 570 231 22,094 2,416 796 3,343
Receivable for Capital Shares Issued..... -- 432 5,951 522 176 339
Receivable for Investment Securities
Sold................................... -- 6,039 5,295 25 -- 21,602
Reclaims Receivable...................... -- -- -- -- -- 247
Prepaid Expenses and Other Assets........ 1 -- 13 4 3 10
------- -------- ---------- -------- ------- --------
Total Assets............................. 43,028 140,147 1,410,277 379,895 79,930 415,053
------- -------- ---------- -------- ------- --------
Liabilities:
Payable for Fund Overdraft............... -- 529 -- -- -- --
Income Distributions Payable............. 116 434 6,701 984 208 1,065
Payable for Investment Securities
Purchased.............................. 1,493 32,733 24,009 -- -- 31,787
Payable for Capital Shares Redeemed...... -- -- 6,249 249 368 1,221
Payable for Forward Foreign Currency
Contracts.............................. -- -- -- -- -- 13
Payable upon Return of Securities
Loaned................................. -- -- 112,889 82,596 -- 89,171
Investment Advisory Fees Payable......... 19 20 463 101 27 148
Administration Fees Payable.............. 1 -- 27 -- -- 5
Compliance Services Fees Payable......... -- -- 2 -- -- --
Distribution and Service Fees Payable.... -- -- 13 9 18 41
Custodian Fees Payable................... 1 -- 47 14 3 34
Accrued Expenses......................... 10 26 93 39 21 22
------- -------- ---------- -------- ------- --------
Total Liabilities........................ 1,640 33,742 150,493 83,992 645 123,507
------- -------- ---------- -------- ------- --------
Total Net Assets......................... $41,388 $106,405 $1,259,784 $295,903 $79,285 $291,546
======= ======== ========== ======== ======= ========
Capital.................................. $41,691 $106,736 $1,279,579 $310,230 $82,134 $302,337
Undistributed (Distribution in Excess of)
Net Investment Income (Loss)........... (64) 17 55 136 (2) (3,968)
Accumulated Net Realized Gains (Losses)
on Investment Transactions, Foreign
Currency Transactions and Options...... (174) (19) (10,420) (10,204) (1,736) (5,033)
Net Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions.......... (65) (329) (9,430) (4,259) (1,111) (1,790)
------- -------- ---------- -------- ------- --------
Total Net Assets......................... $41,388 $106,405 $1,259,784 $295,903 $79,285 $291,546
======= ======== ========== ======== ======= ========
NET ASSETS:
I Shares................................. $41,276 $106,405 $1,217,679 $281,282 $54,991 $243,102
A Shares................................. $ 110 N/A $ 36,291 $ 5,062 $ 4,336 $ 1,741
C Shares................................. $ 2 N/A $ 5,814 $ 9,559 $19,958 $ 46,703
SHARES OUTSTANDING:
I Shares................................. 4,167 10,678 113,924 28,977 5,612 25,207
A Shares................................. 11 N/A 3,471 520 443 179
C Shares................................. -- N/A 544 982 2,041 4,841
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE:
I Shares................................. $ 9.90 $ 9.96 $ 10.69 $ 9.71 $ 9.80 $ 9.64
A Shares................................. $ 9.88 N/A $ 10.45 $ 9.73 $ 9.79 $ 9.68
C Shares**............................... $ 9.89 N/A $ 10.68 $ 9.73 $ 9.78 $ 9.65
OFFERING PRICE PER SHARE
(100%/(100%-maximum sales charge) of net
asset value adjusted to the nearest
cent):
I Shares................................. $ 9.90 $ 9.96 $ 10.69 $ 9.71 $ 9.80 $ 9.64
A Shares................................. $ 10.37 N/A $ 10.97 $ 9.98 $ 10.04 $ 10.16
C Shares................................. $ 9.89 N/A $ 10.68 $ 9.73 $ 9.78 $ 9.65
Maximum Sales Charge -- A Shares........... 4.75% N/A 4.75% 2.50% 2.50% 4.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* The Seix High Yield Fund, Short-Term Bond Fund and Strategic Income Fund
include securities on loan of $107,738, $80,369 and $86,496, respectively.
** Redemption price per share varies by length of time shares are held.
See Notes to Financial Statements.
170
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
U.S. Government Virginia
Total U.S. Securities Ultra- Intermediate Virginia
Return Government Ultra-Short Short Municipal Municipal
Bond Fund Securities Fund Bond Fund Bond Fund Bond Fund Bond Fund
--------- --------------- --------------- --------- ------------ ---------
Assets:
Investments, at Cost..................... $66,962 $461,537 $43,304 $265,768 $168,948 $54,099
======= ======== ======= ======== ======== =======
Investments, at Value*................... $61,589 $441,095 $42,981 $264,619 $170,485 $55,021
Repurchase Agreements, at Cost........... 4,084 14,059 -- -- -- --
------- -------- ------- -------- -------- -------
Total Investments........................ 65,673 455,154 42,981 264,619 170,485 55,021
Interest and Dividends Receivable........ 539 1,712 208 1,407 2,393 753
Receivable for Capital Shares Issued..... 55 433 39 263 158 84
Receivable for Investment Securities
Sold................................... 591 57 197 8 3,176 532
Reclaims Receivable...................... 5 -- -- -- -- --
Prepaid Expenses and Other Assets........ -- 2 10 7 1 --
------- -------- ------- -------- -------- -------
Total Assets............................. 66,863 457,358 43,435 266,304 176,213 56,390
------- -------- ------- -------- -------- -------
Liabilities:
Income Distributions Payable............. 244 1,282 152 893 511 171
Payable for Investment Securities
Purchased.............................. 4,623 50 -- 5,240 -- --
Payable for Capital Shares Redeemed...... -- 802 -- 412 357 83
Payable upon Return of Securities
Loaned................................. -- 127,594 637 14,417 -- --
Investment Advisory Fees Payable......... 19 139 8 46 82 26
Administration Fees Payable.............. -- 1 -- -- 1 --
Distribution and Service Fees Payable.... -- 8 -- -- 1 4
Custodian Fees Payable................... 7 8 2 9 4 2
Accrued Expenses......................... 4 58 20 30 25 4
------- -------- ------- -------- -------- -------
Total Liabilities........................ 4,897 129,942 819 21,047 981 290
------- -------- ------- -------- -------- -------
Total Net Assets......................... $61,966 $327,416 $42,616 $245,257 $175,232 $56,100
======= ======== ======= ======== ======== =======
Capital.................................. $64,687 $339,657 $44,073 $247,944 $173,836 $55,224
Undistributed (Distribution in Excess of)
Net Investment Income (Loss)........... (74) 605 111 375 (18) (17)
Accumulated Net Realized Gains (Losses)
on Investment Transactions and Foreign
Currency Transactions.................. (1,358) (6,463) (1,245) (1,913) (123) (29)
Net Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions.......... (1,289) (6,383) (323) (1,149) 1,537 922
------- -------- ------- -------- -------- -------
Total Net Assets......................... $61,966 $327,416 $42,616 $245,257 $175,232 $56,100
======= ======== ======= ======== ======== =======
NET ASSETS:
I Shares................................. $61,966 $316,475 $42,616 $245,257 $169,743 $51,548
A Shares................................. N/A $ 3,032 N/A N/A $ 5,480 $ 63
C Shares................................. N/A $ 7,909 N/A N/A $ 9 $ 4,489
SHARES OUTSTANDING:
I Shares................................. 6,386 31,050 4,324 24,624 16,957 5,046
A Shares................................. N/A 298 N/A N/A 547 6
C Shares................................. N/A 776 N/A N/A 1 437
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE:
I Shares................................. $ 9.70 $ 10.19 $ 9.85 $ 9.96 $ 10.01 $ 10.22
A Shares................................. N/A $ 10.19 N/A N/A $ 10.01 $ 10.20
C Shares**............................... N/A $ 10.19 N/A N/A $ 10.01 $ 10.26
OFFERING PRICE PER SHARE
(100%/(100%-maximum sales charge) of net
asset value adjusted to the nearest
cent):
I Shares................................. $ 9.70 $ 10.19 $ 9.85 $ 9.96 $ 10.01 $ 10.22
A Shares................................. N/A $ 10.70 N/A N/A $ 10.51 $ 10.71
C Shares................................. N/A $ 10.19 N/A N/A $ 10.01 $ 10.26
Maximum Sales Charge -- A Shares........... N/A 4.75% N/A N/A 4.75% 4.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* The U.S. Government Securities Fund, U.S. Government Securities Ultra-Short
Bond Fund and Ultra-Short Bond Fund include securities on loan of $123,842,
$623 and $13,985, respectively.
** Redemption price per share varies by length of time shares are held.
See Notes to Financial Statements.
171
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<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...................... $7,025,086 $1,838,071 $667,735 $1,667,933 $527,681
========== ========== ======== ========== ========
Investments, at Value........................... $6,970,507 $1,838,071 $448,412 $ 600,926 $527,681
Repurchase Agreements, at Value................. 54,579 -- 219,323 1,067,007 --
---------- ---------- -------- ---------- --------
Total Investments, at Value..................... 7,025,086 1,838,071 667,735 1,667,933 527,681
Cash............................................ -- 4 -- -- 1
Accrued Income.................................. 31,622 9,553 2,661 5,265 3,086
Receivable for Capital Shares Issued............ 14,216 1,427 933 75 700
Receivable for Investment Securities Sold....... -- -- -- 249,458 --
Prepaid Expenses and Other Assets............... 31 8 4 8 3
---------- ---------- -------- ---------- --------
Total Assets.................................... 7,070,955 1,849,063 671,333 1,922,739 531,471
---------- ---------- -------- ---------- --------
Liabilities:
Income Distributions Payable.................... 23,767 4,115 2,249 5,236 1,115
Payable for Investment Securities Purchased..... 50,341 -- 1,078 254,025 --
Investment Advisory Fees Payable................ 2,948 705 326 731 176
Administration Fees Payable..................... 2 41 8 30 11
Compliance Services Fees Payable................ 9 2 1 2 1
Distribution and Service Fees Payable........... 502 86 34 2 39
Custodian Fees Payable.......................... 137 20 9 16 5
Accrued Expenses................................ 816 213 87 159 53
---------- ---------- -------- ---------- --------
Total Liabilities............................... 78,522 5,182 3,792 260,201 1,400
---------- ---------- -------- ---------- --------
Total Net Assets................................ $6,992,433 $1,843,881 $667,541 $1,662,538 $530,071
========== ========== ======== ========== ========
Net Assets:
Capital......................................... $6,992,419 $1,843,853 $667,540 $1,662,688 $530,062
Undistributed (Distributions in Excess of) Net
Investment Income............................. (74) (1) -- 62 5
Accumulated Net Realized Gain (Loss) on
Investment Transactions....................... 88 29 1 (212) 4
---------- ---------- -------- ---------- --------
Total Net Assets................................ $6,992,433 $1,843,881 $667,541 $1,662,538 $530,071
========== ========== ======== ========== ========
NET ASSETS:
I Shares........................................ $2,976,881 $1,172,717 $413,893 $1,650,172 $226,319
A Shares........................................ $4,011,561 $ 671,164 $253,648 $ 12,366 $303,752
C Shares........................................ $ 3,991 N/A N/A N/A N/A
SHARES OUTSTANDING:
I Shares........................................ 2,976,916 1,172,667 413,893 1,650,321 226,316
A Shares........................................ 4,011,511 671,186 253,648 12,237 303,746
C Shares........................................ 3,992 N/A N/A N/A N/A
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE:
I Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
A Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
C Shares*....................................... $ 1.00 N/A N/A N/A N/A
</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.
172
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Core Florida Georgia High High
Bond Tax-Exempt Tax-Exempt Income Quality Intermediate
Fund Bond Fund Bond Fund Fund Bond Fund Bond Fund
-------- ---------- ---------- ------ --------- ------------
Investment Income:
Interest Income........................................ $ 16,854 $6,655 $4,012 $6,862 $ 2,188 $ 2,851
Dividend Income........................................ -- 276 61 163 25 12
Income from Securities Lending......................... -- -- -- 67 -- --
-------- ------ ------ ------ ------- -------
Total Investment Income................................ 16,854 6,931 4,073 7,092 2,213 2,863
-------- ------ ------ ------ ------- -------
Expenses:
Investment Advisory Fees............................... 969 1,076 687 574 241 170
Administration and Fund Accounting Fees................ 102 49 31 22 15 18
Compliance Services Fees............................... 3 2 1 1 -- 1
Distribution Fees -- A Shares.......................... 1 9 5 1 -- --
Distribution and Service Fees -- C Shares.............. -- 111 103 423 -- --
Shareholder Service Fees -- Institutional Shares....... -- 31 --
Shareholder Service Fees -- T Shares................... 114 30 5
Custodian Fees......................................... 29 8 8 15 5 6
Professional Fees...................................... (4) 9 6 4 (2) 3
Insurance Fees......................................... 3 4 2 3 1 --
Registration Fees...................................... 3 16 17 19 7 1
Transfer Agent Fees.................................... -- 4 3 28 2 --
Printing Fees.......................................... 16 12 10 14 2 3
Trustees Fees.......................................... 6 4 3 2 1 1
Other Expenses......................................... 22 9 10 15 (1) 10
-------- ------ ------ ------ ------- -------
Total Expenses......................................... 1,264 1,313 886 1,121 332 218
Less: Investment Advisory Fees Waived................ -- (24) (18) (69) (74) --
Less: Administration Fees Waived..................... -- -- (2) (14) -- (3)
Less: Shareholder Service Fees
Waived -- Institutional Shares..................... -- (6) --
Less: Shareholder Service Fees Waived -- T Shares.... (79) (2) --
Less: Distribution and Service Fees Waived -- C
Shares............................................. -- (10) (8) (47) -- --
-------- ------ ------ ------ ------- -------
Net Expenses........................................... 1,185 1,279 858 991 250 215
-------- ------ ------ ------ ------- -------
Net Investment Income.................................. 15,669 5,652 3,215 6,101 1,963 2,648
-------- ------ ------ ------ ------- -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investments Sold........... (2,853) 1,124 133 (1,302) (451) (617)
Net Change in Unrealized Appreciation (Depreciation) on
Investments.......................................... (8,256) (1,704) 179 859 (574) (1,076)
-------- ------ ------ ------ ------- -------
Total Net Realized and Unrealized Gain (Loss) on
Investments.......................................... (11,109) (580) 312 (443) (1,025) (1,693)
-------- ------ ------ ------ ------- -------
Net Change in Net Assets from Operations............... $ 4,560 $5,072 $3,527 $5,658 $ 938 $ 955
======== ====== ====== ====== ======= =======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
173
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Investment Investment Grade Limited Limited-Term Maryland
Grade Tax-Exempt Duration Federal Mortgage Municipal
Bond Fund Bond Fund Fund Securities Fund Bond Fund
---------- ---------------- ----------- ---------------- ---------
Investment Income:
Interest Income.................................... $ 25,206 $10,605 $2,260 $15,673 $1,836
Dividend Income.................................... -- 615 -- -- 23
Income from Securities Lending..................... 1,185 -- -- 32 --
-------- ------- ------ ------- ------
Total Investment Income............................ 26,391 11,220 2,260 15,705 1,859
-------- ------- ------ ------- ------
Expenses:
Investment Advisory Fees........................... 3,394 1,855 64 2,154 250
Administration and Fund Accounting Fees............ 153 85 24 103 11
Compliance Services Fees........................... 5 3 1 3 --
Distribution Fees -- A Shares...................... 77 62 -- 13 --
Distribution and Service Fees -- C Shares.......... 158 132 -- 269 116
Custodian Fees..................................... 44 11 4 23 6
Professional Fees.................................. 35 15 (16) 18 1
Insurance Fees..................................... 16 5 -- 8 --
Registration Fees.................................. 56 39 6 61 12
Transfer Agent Fees................................ (25) 12 (1) 23 4
Printing Fees...................................... 38 21 3 28 4
Trustees Fees...................................... 15 6 -- 8 1
Other Expenses..................................... 39 12 10 20 3
-------- ------- ------ ------- ------
Total Expenses..................................... 4,005 2,258 95 2,731 408
Less: Investment Advisory Fees Waived............ (4) (3) -- (45) (9)
Less: Administration Fees Waived................. (16) (1) -- (15) (2)
Less: Distribution and Service Fees Waived -- C
Shares......................................... (3) (3) -- (36) --
-------- ------- ------ ------- ------
Net Expenses....................................... 3,982 2,251 95 2,635 397
-------- ------- ------ ------- ------
Net Investment Income.............................. 22,409 8,969 2,165 13,070 1,462
-------- ------- ------ ------- ------
Net Realized and Unrealized Gain (Loss) on
Investments:
Net Realized Gain (Loss) on Investments Sold....... 7,288 1,313 4 (2,545) 298
Net Change in Unrealized Appreciation
(Depreciation) on Investments.................... (12,042) (1,585) (13) (2,631) (442)
-------- ------- ------ ------- ------
Total Net Realized and Unrealized Loss on
Investments...................................... (4,754) (272) (9) (5,176) (144)
-------- ------- ------ ------- ------
Net Change in Net Assets from Operations........... $ 17,655 $ 8,697 $2,156 $ 7,894 $1,318
======== ======= ====== ======= ======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
174
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Seix Short-Term
North Carolina Floating Rate Seix Short-Term U.S. Treasury Strategic
Tax-Exempt High Income High Yield Bond Securities Income
Bond Fund Fund (a) Fund Fund Fund Fund
-------------- ------------- ---------- ---------- --------------- ---------
Investment Income:
Interest Income........................ $1,533 $ 457 $ 85,237 $11,227 $3,125 $ 14,880
Dividend Income........................ 35 24 36 204 19 111
Income from Securities Lending......... -- -- 411 159 -- 671
Less: Foreign Taxes Withheld........... -- -- -- -- -- (6)
------ ----- -------- ------- ------ --------
Total Investment Income................ 1,568 481 85,684 11,590 3,144 15,656
------ ----- -------- ------- ------ --------
Expenses:
Investment Advisory Fees............... 236 38 5,825 1,453 463 2,089
Administration and Fund Accounting
Fees................................. 11 2 327 79 25 80
Compliance Services Fees............... -- -- 11 -- 1 3
Distribution Fees -- A Shares.......... -- 58 12 9 9
Distribution and Service Fees -- C
Shares............................... -- 48 122 268 639
Shareholder Service Fees -- T Shares... 2
Custodian Fees......................... 1 -- 12 26 7 154
Professional Fees...................... 1 2 46 15 4 12
Insurance Fees......................... 3 -- 6 7 3 4
Registration Fees...................... 7 10 32 46 36 28
Transfer Agent Fees.................... 5 -- (9) 12 24 32
Printing Fees.......................... 18 11 56 24 8 21
Trustees Fees.......................... 2 -- 11 6 2 5
Other Expenses......................... 2 4 37 30 22 13
------ ----- -------- ------- ------ --------
Total Expenses......................... 286 67 6,462 1,832 872 3,089
Less: Investment Advisory Fees
Waived............................. (6) (18) (69) (51) (40) (93)
Less: Administration Fees Waived..... -- (2) -- (11) (15) (7)
Less: Distribution Fees Waived -- A
Shares............................. -- -- -- -- (1)
Less: Distribution and Service Fees
Waived -- C Shares................. -- (4) (18) (55) (103)
------ ----- -------- ------- ------ --------
Net Expenses........................... 280 47 6,389 1,752 762 2,885
------ ----- -------- ------- ------ --------
Net Investment Income.................. 1,288 434 79,295 9,838 2,382 12,771
------ ----- -------- ------- ------ --------
Net Realized and Unrealized Gain (Loss)
on Investments, Options and Foreign
Currency Transactions:
Net Realized Gain (Loss) on Investments
Sold, Forward Foreign Currency
Contracts, Options and Foreign
Currency Transactions................ (35) (19) (10,259) 531 (808) (12,508)
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Forward Foreign Currency Contracts,
Foreign Currencies and Translation of
Other Assets and Liabilities in
Foreign Currency..................... 166 (329) (1,686) (947) (122) (161)
------ ----- -------- ------- ------ --------
Total Net Realized and Unrealized Gain
(Loss) on Investments, Options and
Foreign Currency Transactions........ 131 (348) (11,945) (416) (930) (12,669)
------ ----- -------- ------- ------ --------
Net Change in Net Assets from
Operations........................... $1,419 $ 86 $ 67,350 $ 9,422 $1,452 $ 102
====== ===== ======== ======= ====== ========
</Table>
(a) Commencement of operations on March 2, 2006.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
175
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
U.S. Government Virginia
Total Return Securities Ultra-Short Intermediate Virginia
Bond U.S. Government Ultra-Short Bond Municipal Municipal
Fund Securities Fund Bond Fund Fund Bond Fund Bond Fund
------------ --------------- --------------- ----------- ------------ ---------
Investment Income:
Interest Income..................... $ 2,830 $14,852 $2,078 $8,505 $7,149 $2,366
Dividend Income..................... -- -- 16 62 39 28
Income from Securities Lending...... -- 460 2 12 -- --
Less: Foreign Taxes Withheld........ (1) -- -- -- -- --
------- ------- ------ ------ ------ ------
Total Investment Income............. 2,829 15,312 2,096 8,579 7,188 2,394
------- ------- ------ ------ ------ ------
Expenses:
Investment Advisory Fees............ 246 2,072 150 703 1,053 329
Administration and Fund Accounting
Fees.............................. 16 95 15 59 47 15
Compliance Services Fees............ 1 3 -- 2 2 --
Distribution Fees -- A Shares....... -- 11 -- -- 10 --
Distribution and Service Fees -- C
Shares............................ 99 17 -- 54
Shareholder Service
Fees -- Institutional Shares...... 40 35 57
Shareholder Service Fees -- T
Shares............................ 7 132
Custodian Fees...................... 20 19 11 25 11 6
Professional Fees................... 3 17 3 10 9 3
Insurance Fees...................... 1 6 2 5 4 1
Registration Fees................... 6 50 15 23 17 15
Transfer Agent Fees................. -- 12 3 -- 2 2
Printing Fees....................... 3 24 3 8 34 7
Trustees Fees....................... 2 7 1 4 4 4
Other Expenses...................... 15 32 27 36 12 16
------- ------- ------ ------ ------ ------
Total Expenses...................... 360 2,447 282 1,064 1,205 452
Less: Investment Advisory Fees
Waived.......................... (3) (5) (63) (206) (11) (4)
Less: Administration Fees
Waived.......................... (5) (9) (10) (8) (3) (10)
Less: Shareholder Service Fees
Waived -- Institutional
Shares.......................... (9) (35) (43)
Less: Shareholder Service Fees
Waived -- T Shares.............. (1) --
Less: Distribution Fees
Waived -- A Shares.............. -- (1) --
Less: Distribution and Service
Fees Waived -- C Shares......... (1) (4) -- --
------- ------- ------ ------ ------ ------
Net Expenses........................ 342 2,432 170 807 1,190 438
------- ------- ------ ------ ------ ------
Net Investment Income............... 2,487 12,880 1,926 7,772 5,998 1,956
------- ------- ------ ------ ------ ------
Net Realized and Unrealized Gain
(Loss) on Investments and Foreign
Currency Transactions:
Net Realized Gain (Loss) on
Investments Sold, Forward Foreign
Currency Contracts and Foreign
Currency Transactions............. (531) (944) (126) (421) 280 250
Net Change in Unrealized
Appreciation (Depreciation) on
Investments, Forward Foreign
Currency Contracts, Foreign
Currencies and Translation of
Other Assets and Liabilities in
Foreign Currency.................. (1,103) (5,944) (71) (420) (865) (435)
------- ------- ------ ------ ------ ------
Total Net Realized and Unrealized
Gain (Loss) on Investments and
Foreign Currency Transactions..... (1,634) (6,888) (197) (841) (585) (185)
------- ------- ------ ------ ------ ------
Net Change in Net Assets from
Operations........................ $ 853 $ 5,992 $1,729 $6,931 $5,413 $1,771
======= ======= ====== ====== ====== ======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
176
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
U.S. Government Virginia
Prime Quality Tax-Exempt Securities U.S. Treasury Tax-Free
Money Money Market Money Market Money Market Money Market
Market Fund Fund Fund Fund Fund
------------- ------------ --------------- ------------- ------------
Investment Income:
Interest Income................................. $219,742 $45,389 $26,472 $52,745 $13,407
Dividend Income................................. 5,388 1,304 -- -- 275
-------- ------- ------- ------- -------
Total Investment Income......................... 225,130 46,693 26,472 52,745 13,682
-------- ------- ------- ------- -------
Expenses:
Investment Advisory Fees........................ 32,146 8,036 4,261 8,471 1,996
Administration and Fund Accounting Fees......... 1,545 446 192 387 131
Compliance Services Fees........................ 51 14 6 13 4
Distribution Fees -- A Shares................... 4,532 923 377 8 663
Distribution and Service Fees -- C Shares....... 30
Custodian Fees.................................. 274 48 19 34 13
Professional Fees............................... 291 78 31 69 22
Insurance Fees.................................. 102 28 14 21 8
Registration Fees............................... 299 96 69 86 43
Transfer Agent Fees............................. (8) (1) (3) (6) (1)
Printing Fees................................... 621 71 34 61 21
Trustees' Fees.................................. 120 46 23 30 11
Other Expenses.................................. 231 118 52 56 31
-------- ------- ------- ------- -------
Total Expenses.................................. 40,234 9,903 5,075 9,230 2,942
Less: Investment Advisory Fees Waived......... (1,596) (463) (203) (338) --
Less: Administration Fees Waived.............. (175) -- (9) (6) --
Less: Distribution Fees Waived -- A Shares.... -- -- -- -- (175)
Less: Distribution and Service Fees
Waived -- C Shares.......................... (15)
-------- ------- ------- ------- -------
Net Expenses.................................... 38,448 9,440 4,863 8,886 2,767
-------- ------- ------- ------- -------
Net Investment Income........................... 186,682 37,253 21,609 43,859 10,915
-------- ------- ------- ------- -------
Net Realized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investment Sold..... 114 103 -- (14) 107
Net Increase from Payments by Affiliates and Net
Gains (Losses) Realized on the Disposal of
Investments in Violation of Restrictions...... 18 -- -- -- --
-------- ------- ------- ------- -------
Total Net Realized Gain (Loss) on Investments... 132 103 -- (14) 107
-------- ------- ------- ------- -------
Net Change in Net Assets from Operations........ $186,814 $37,356 $21,609 $43,845 $11,022
======== ======= ======= ======= =======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
177
STATEMENTS OF CHANGES IN NET ASSETS
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Core Bond Fund (a) Florida Tax-Exempt Bond Fund
--------------------------------- ----------------------------------
04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income.............. $ 15,669 $ 2,179 $ 1,648 $ 5,652 $ 4,207 $ 5,453
Net Realized Gain (Loss) on
Investments Sold................. (2,853) (433) 587 1,124 (145) 3,674
Net Change in Unrealized
Appreciation (Depreciation) on
Investments...................... (8,256) (2,062) 302 (1,704) 1,892 (13,497)
-------- -------- ------- -------- -------- --------
Change in Net Assets from
Operations....................... 4,560 (316) 2,537 5,072 5,954 (4,370)
-------- -------- ------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares......................... (14,412) (1,571) (1,696) (5,238) (3,792) (4,630)
T Shares......................... (1,742) (674)
A Shares......................... (13) (5) (6) (169) (150) (170)
C Shares......................... (1) -- -- (245) (280) (662)
Realized Capital Gains:
I Shares......................... (493) (562) (758) (774) (1,824) (3,033)
A Shares......................... (1) (2) (6) (26) (84) (106)
C Shares......................... -- -- -- (49) (178) (513)
-------- -------- ------- -------- -------- --------
Total Dividends and
Distributions.................... (16,662) (2,814) (2,466) (6,501) (6,308) (9,114)
-------- -------- ------- -------- -------- --------
Change in Net Assets from Capital
Transactions..................... 212,581 244,464 22,402 4,654(b) (14,593) 8,552
-------- -------- ------- -------- -------- --------
Change in Net Assets............... 200,479 241,334 22,473 3,225 (14,947) (4,932)
-------- -------- ------- -------- -------- --------
Net Assets:
Beginning of Period................ 297,772 56,438 33,965 175,976 190,923 195,855
-------- -------- ------- -------- -------- --------
End of Period...................... $498,251 $297,772 $56,438 $179,201 $175,976 $190,923
======== ======== ======= ======== ======== ========
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period............................. $ 36 $ 1 $ (56) $ (11) $ (11) $ 4
======== ======== ======= ======== ======== ========
<Caption>
Georgia Tax-Exempt Bond Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Operations:
Net Investment Income.............. $ 3,215 $ 2,966 $ 3,771
Net Realized Gain (Loss) on
Investments Sold................. 133 104 3,872
Net Change in Unrealized
Appreciation (Depreciation) on
Investments...................... 179 1,978 (10,196)
-------- -------- --------
Change in Net Assets from
Operations....................... 3,527 5,048 (2,553)
-------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares......................... (3,719) (2,528) (3,265)
T Shares.........................
A Shares......................... (100) (70) (91)
C Shares......................... (268) (232) (416)
Realized Capital Gains:
I Shares......................... (112) (2,127) (694)
A Shares......................... (4) (64) (19)
C Shares......................... (11) (255) (114)
-------- -------- --------
Total Dividends and
Distributions.................... (4,214) (5,276) (4,599)
-------- -------- --------
Change in Net Assets from Capital
Transactions..................... 20,067 (4,144) 3,264
-------- -------- --------
Change in Net Assets............... 19,380 (4,372) (3,888)
-------- -------- --------
Net Assets:
Beginning of Period................ 109,827 114,199 118,087
-------- -------- --------
End of Period...................... $129,207 $109,827 $114,199
======== ======== ========
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period............................. $ (734) $ 138 $ 2
======== ======== ========
</Table>
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2).
(b) Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
178
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Core Bond Fund (a) Florida Tax-Exempt Bond Fund
--------------------------------- ---------------------------------
04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued............................ $ 389,832 $140,313 $ 40,140 $ 61,889 $ 30,434 $ 83,482
Dividends Reinvested................................... 8,527 1,000 2,082 839 1,312 2,132
Cost of Shares Redeemed................................ (64,112) (18,633) (19,932) (53,510) (38,920) (57,242)
--------- -------- -------- -------- -------- --------
Change in Net Assets from I Shares Transactions........ $ 334,247 $122,680 $ 22,290 $ 9,218 $ (7,174) $ 28,372
--------- -------- -------- -------- -------- --------
T Shares(1):
Proceeds from Shares Issued............................ $ 39,832 $125,973 $ 1
Dividends Reinvested................................... 1,267 335 --
Cost of Shares Redeemed................................ (163,029) (4,379) --
--------- -------- --------
Change in Net Assets from T Shares Transactions........ $(121,930) $121,929 $ 1
--------- -------- --------
A Shares:
Proceeds from Shares Issued............................ $ 298 $ 125 $ 175 $ 733 $ 2,867 $ 3,093
Dividends Reinvested................................... 4 -- -- 132 153 166
Cost of Shares Redeemed................................ (66) (270) (65) (1,894) (2,785) (5,029)
--------- -------- -------- -------- -------- --------
Change in Net Assets from A Shares Transactions........ $ 236 $ (145) $ 110 $ (1,029) $ 235 $ (1,770)
--------- -------- -------- -------- -------- --------
C Shares(2):
Proceeds from Shares Issued............................ $ 28 $ -- $ 1 $ 96 $ 353 $ 6,043
Dividends Reinvested................................... 1 -- -- 225 349 865
Cost of Shares Redeemed................................ (1) -- -- (3,856) (8,356) (24,958)
--------- -------- -------- -------- -------- --------
Change in Net Assets from C Shares Transactions........ $ 28 $ -- $ 1 $ (3,535) $ (7,654) $(18,050)
--------- -------- -------- -------- -------- --------
Change in Net Assets from Capital Transactions........... $ 212,581 $244,464 $ 22,402 $ 4,654 $(14,593) $ 8,552
========= ======== ======== ======== ======== ========
<Caption>
Georgia Tax-Exempt Bond Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued............................ $ 39,979 $ 18,386 $ 19,156
Dividends Reinvested................................... 489 917 699
Cost of Shares Redeemed................................ (20,409) (20,690) (14,624)
-------- -------- --------
Change in Net Assets from I Shares Transactions........ $ 20,059 $ (1,387) $ 5,231
-------- -------- --------
T Shares(1):
Proceeds from Shares Issued............................
Dividends Reinvested...................................
Cost of Shares Redeemed................................
Change in Net Assets from T Shares Transactions........
A Shares:
Proceeds from Shares Issued............................ $ 2,084 $ 711 $ 1,280
Dividends Reinvested................................... 60 83 56
Cost of Shares Redeemed................................ (1,076) (861) (1,059)
-------- -------- --------
Change in Net Assets from A Shares Transactions......... $ 1,068 $ (67) $ 277
-------- -------- --------
C Shares(2):
Proceeds from Shares Issued............................ $ 446 $ 49 $ 2,653
Dividends Reinvested................................... 268 411 444
Cost of Shares Redeemed................................ (1,774) (3,150) (5,341)
-------- -------- --------
Change in Net Assets from C Shares Transactions........ $ (1,060) $ (2,690) $ (2,244)
-------- -------- --------
Change in Net Assets from Capital Transactions........... $ 20,067 $ (4,144) $ 3,264
======== ======== ========
</Table>
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T Shares were offered beginning on October 11, 2004 for the Core Bond Fund.
(2) C Shares were offered beginning on October 11, 2004 for the Core Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
179
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Core Bond Fund (a) Florida Tax-Exempt Bond Fund
--------------------------------- ---------------------------------
04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued............................................... 38,549 13,738 3,935 5,626 2,725 7,381
Reinvested........................................... 848 98 205 76 119 188
Redeemed............................................. (6,348) (1,830) (1,963) (4,876) (3,495) (5,085)
--------- -------- -------- -------- -------- --------
Change in I Shares Transactions...................... 33,049 12,006 2,177 826 (651) 2,484
--------- -------- -------- -------- -------- --------
T Shares(1):
Issued............................................... 3,893 12,354 --
Reinvested........................................... 124 33 --
Redeemed............................................. (15,973) (431) --
--------- -------- --------
Change in T Shares Transactions...................... (11,956) 11,956 --
--------- -------- --------
A Shares:
Issued............................................... 29 12 17 67 258 272
Reinvested........................................... -- -- -- 12 14 15
Redeemed............................................. (6) (25) (7) (172) (250) (448)
--------- -------- -------- -------- -------- --------
Change in A Shares Transactions...................... 23 (13) 10 (93) 22 (161)
--------- -------- -------- -------- -------- --------
C Shares(2):
Issued............................................... 3 -- -- 9 34 530
Reinvested........................................... -- -- -- 20 31 76
Redeemed............................................. -- -- -- (351) (756) (2,221)
--------- -------- -------- -------- -------- --------
Change in C Shares Transactions...................... 3 -- -- (322) (691) (1,615)
--------- -------- -------- -------- -------- --------
Change in Share Transactions........................... 21,119 23,949 2,187 411 (1,320) 708
========= ======== ======== ======== ======== ========
<Caption>
Georgia Tax-Exempt Bond Fund
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Share Transactions:
I Shares:
Issued............................................... 3,890 1,763 1,818
Reinvested........................................... 48 89 66
Redeemed............................................. (1,985) (1,981) (1,384)
-------- -------- --------
Change in I Shares Transactions....................... 1,953 (129) 500
-------- -------- --------
T Shares(1):
Issued...............................................
Reinvested...........................................
Redeemed.............................................
Change in T Shares Transactions......................
A Shares:
Issued............................................... 203 68 121
Reinvested........................................... 6 8 5
Redeemed............................................. (105) (83) (100)
-------- -------- --------
Change in A Shares Transactions...................... 104 (7) 26
-------- -------- --------
C Shares(2):
Issued............................................... 43 7 249
Reinvested........................................... 26 40 42
Redeemed............................................. (173) (306) (511)
-------- -------- --------
Change in C Shares Transactions...................... (104) (259) (220)
-------- -------- --------
Change in Share Transactions........................... 1,953 (395) 306
======== ======== ========
</Table>
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T Shares were offered beginning on October 11, 2004 for the Core Bond Fund.
(2) C Shares were offered beginning on October 11, 2004 for the Core Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
180
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
High Income Fund High Quality Bond Fund (a)
---------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ----------
Operations:
Net Investment Income................ $ 6,101 $ 7,181 $ 14,340 $ 1,963 $ 2,623 $ 1,023
Net Realized Gain (Loss) on
Investments Sold................... (1,302) 5,788 3,353 (451) (936) 197
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... 859 (1,932) 931 (574) 2,388 (2,882)
--------- -------- -------- -------- -------- --------
Change in Net Assets from
Operations......................... 5,658 11,037 18,624 938 4,075 (1,662)
--------- -------- -------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................... (3,216) (3,412) (7,786) (1,717) (819) (267)
T Shares........................... (229) (1,765) (789)
A Shares........................... (34) (68) (64)
C Shares........................... (2,851) (3,668) (6,492)
Realized Capital Gains:
I Shares........................... (2,058) (1,488) -- -- (50) --
T Shares........................... -- (134) --
A Shares........................... (22) (23) --
C Shares........................... (2,047) (1,711) --
--------- -------- -------- -------- -------- --------
Total Dividends and Distributions.... (10,228) (10,370) (14,342) (1,946) (2,768) (1,056)
--------- -------- -------- -------- -------- --------
Change in Net Assets from Capital
Transactions....................... (27,105)(b) (44,278) (21,037) (14,065) (71,614) 137,006
--------- -------- -------- -------- -------- --------
Change in Net Assets................. (31,675) (43,611) (16,755) (15,073) (70,307) 134,288
--------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period.................. 104,904 148,515 165,270 63,981 134,288 --
--------- -------- -------- -------- -------- --------
End of Period........................ $ 73,229 $104,904 $148,515 $ 48,908 $ 63,981 $134,288
========= ======== ======== ======== ======== ========
Undistributed (Distributions in Excess
of) Net Investment Income, End of
Period............................... $ 32 $ 32 $ (1) $ 80 $ 62 $ 3
========= ======== ======== ======== ======== ========
<Caption>
Intermediate Bond Fund (a)
---------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
--------- --------- ---------
Operations:
Net Investment Income................ $ 2,648 $ 627 $ 1,036
Net Realized Gain (Loss) on
Investments Sold................... (617) 23 607
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... (1,076) (1,006) (71)
------- ------- -------
Change in Net Assets from
Operations......................... 955 (356) 1,572
------- ------- -------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................... (2,568) (573) (1,036)
T Shares........................... (96) (41) --
A Shares........................... (2) -- --
C Shares........................... (1) -- --
Realized Capital Gains:
I Shares........................... (101) (341) --
T Shares........................... -- (21) --
A Shares........................... -- -- --
C Shares........................... -- -- --
------- ------- -------
Total Dividends and Distributions.... (2,768) (976) (1,036)
------- ------- -------
Change in Net Assets from Capital
Transactions....................... 24,893 20,660 6,626
------- ------- -------
Change in Net Assets................. 23,080 19,328 7,162
------- ------- -------
Net Assets:
Beginning of Period.................. 55,179 35,851 28,689
------- ------- -------
End of Period........................ $78,259 $55,179 $35,851
======= ======= =======
Undistributed (Distributions in Excess
of) Net Investment Income, End of
Period............................... $ 26 $ 37 $ 18
======= ======= =======
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(b) Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
181
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
High Income Fund High Quality Bond Fund (a)
--------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ----------
Capital Transactions:
I Shares:
Proceeds from Shares Issued.......................... $ 13,695 $ 25,619 $ 42,398 $ 32,804 $ 30,238 $ 26,414
Dividends Reinvested................................. 2,299 2,643 3,161 873 497 147
Cost of Shares Redeemed.............................. (28,300) (48,374) (77,402) (21,465) (17,507) (674)
-------- -------- -------- --------- --------- --------
Change in Net Assets from I Shares Transactions...... $(12,306) $(20,112) $(31,843) $ 12,212 $ 13,228 $ 25,887
-------- -------- -------- --------- --------- --------
T Shares(1):
Proceeds from Shares Issued.......................... $ 558 $ 29,454 $116,614
Dividends Reinvested................................. 23 263 82
Cost of Shares Redeemed.............................. (26,858) (114,559) (5,577)
--------- --------- --------
Change in Net Assets from T Shares Transactions...... $ (26,277) $ (84,842) $111,119
--------- --------- --------
A Shares(2):
Proceeds from Shares Issued.......................... $ 168 $ 938 $ 2,653
Dividends Reinvested................................. 47 77 32
Cost of Shares Redeemed.............................. (527) (1,804) (1,122)
-------- -------- --------
Change in Net Assets from A Shares Transactions...... $ (312) $ (789) $ 1,563
-------- -------- --------
C Shares(3):
Proceeds from Shares Issued.......................... $ 871 $ 3,557 $ 47,483
Dividends Reinvested................................. 3,596 3,914 4,236
Cost of Shares Redeemed.............................. (18,954) (30,848) (42,475)
-------- -------- --------
Change in Net Assets from C Shares Transactions...... $(14,487) $(23,377) $ 9,243
-------- -------- --------
Change in Net Assets from Capital Transactions......... $(27,105) $(44,278) $(21,037) $ (14,065) $ (71,614) $137,006
======== ======== ======== ========= ========= ========
<Caption>
Intermediate Bond Fund (a)
---------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
--------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued.......................... $35,040 $13,266 $ 7,192
Dividends Reinvested................................. 1,635 712 973
Cost of Shares Redeemed.............................. (4,560) (613) (1,542)
------- ------- -------
Change in Net Assets from I Shares Transactions...... $32,115 $13,365 $ 6,623
------- ------- -------
T Shares(1):
Proceeds from Shares Issued.......................... $ 2,156 $ 7,295 $ 1
Dividends Reinvested................................. 52 -- --
Cost of Shares Redeemed.............................. (9,504) -- --
------- ------- -------
Change in Net Assets from T Shares Transactions...... $(7,296) $ 7,295 $ 1
------- ------- -------
A Shares(2):
Proceeds from Shares Issued.......................... $ 207 $ -- $ 1
Dividends Reinvested................................. 3 -- --
Cost of Shares Redeemed.............................. (205) -- --
------- ------- -------
Change in Net Assets from A Shares Transactions...... $ 5 $ -- $ 1
------- ------- -------
C Shares(3):
Proceeds from Shares Issued.......................... $ 69 $ -- $ 1
Dividends Reinvested................................. 1 -- --
Cost of Shares Redeemed.............................. (1) -- --
------- ------- -------
Change in Net Assets from C Shares Transactions...... $ 69 $ -- $ 1
------- ------- -------
Change in Net Assets from Capital Transactions......... $24,893 $20,660 $ 6,626
======= ======= =======
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T shares were offered beginning on November 13, 2003 and October 11, 2004
for the High Quality Bond Fund and the Intermediate Bond Fund, respectively.
(2) A Shares were offered beginning on October 11, 2004 for the Intermediate
Bond Fund.
(3) C Shares were offered beginning on October 11, 2004 for the Intermediate
Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
182
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
High Income Fund High Quality Bond Fund (a)
--------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ----------
Share Transactions:
I Shares:
Issued.............................................. 1,892 3,464 5,657 3,243 3,038 2,643
Reinvested.......................................... 323 351 424 89 50 15
Redeemed............................................ (3,894) (6,524) (10,511) (2,176) (1,769) (67)
-------- -------- -------- --------- --------- ---------
Change in I Shares Transactions..................... (1,679) (2,709) (4,430) 1,156 1,319 2,591
-------- -------- -------- --------- --------- ---------
T Shares(1):
Issued.............................................. 56 2,964 11,601
Reinvested.......................................... 2 26 8
Redeemed............................................ (2,640) (11,458) (559)
--------- --------- ---------
Change in T Shares Transactions..................... (2,582) (8,468) 11,050
--------- --------- ---------
A Shares(2):
Issued.............................................. 23 124 350
Reinvested.......................................... 7 10 4
Redeemed............................................ (72) (238) (150)
-------- -------- --------
Change in A Shares Transactions..................... (42) (104) 204
-------- -------- --------
C Shares(3):
Issued.............................................. 119 515 6,402
Reinvested.......................................... 505 519 567
Redeemed............................................ (2,609) (4,127) (5,714)
-------- -------- --------
Change in C Shares Transactions..................... (1,985) (3,093) 1,255
-------- -------- --------
Change in Share Transactions.......................... (3,706) (5,906) (2,971) (1,426) (7,149) 13,641
======== ======== ======== ========= ========= =========
<Caption>
Intermediate Bond Fund (a)
----------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
---------- --------- ---------
Share Transactions:
I Shares:
Issued.............................................. 3,472 1,289 710
Reinvested.......................................... 163 69 95
Redeemed............................................ (453) (59) (151)
---------- ------- -------
Change in I Shares Transactions..................... 3,182 1,299 654
---------- ------- -------
T Shares(1):
Issued.............................................. 212 714 --
Reinvested.......................................... 5 -- --
Redeemed............................................ (931) -- --
---------- ------- -------
Change in T Shares Transactions..................... (714) 714 --
---------- ------- -------
A Shares(2):
Issued.............................................. 21 -- --
Reinvested.......................................... -- -- --
Redeemed............................................ (21) -- --
---------- ------- -------
Change in A Shares Transactions..................... -- -- --
---------- ------- -------
C Shares(3):
Issued.............................................. 7 -- --
Reinvested.......................................... -- -- --
Redeemed............................................ -- -- --
---------- ------- -------
Change in C Shares Transactions..................... 7 -- --
---------- ------- -------
Change in Share Transactions.......................... 2,475 2,013 654
========== ======= =======
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T shares were offered beginning on November 13, 2003 and October 11, 2004
for the High Quality Bond Fund and the Intermediate Bond Fund, respectively.
(2) A Shares were offered beginning on October 11, 2004 for the Intermediate
Bond Fund.
(3) C Shares were offered beginning on October 11, 2004 for the Intermediate
Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
183
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Investment Grade
Investment Grade Bond Fund Tax-Exempt Bond Fund
--------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income............. $ 22,409 $ 16,395 $ 24,241 $ 8,969 $ 5,039 $ 5,375
Net Realized Gain (Loss) on
Investments Sold................ 7,288 2,253 16,393 1,313 4,146 1,822
Net Change in Unrealized
Appreciation (Depreciation) on
Investments..................... (12,042) 9,268 (60,476) (1,585) (262) (8,837)
--------- -------- --------- -------- -------- --------
Change in Net Assets from
Operations...................... 17,655 27,916 (19,842) 8,697 8,923 (1,640)
--------- -------- --------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................ (21,449) (14,908) (24,510) (8,283) (4,663) (4,556)
T Shares........................
A Shares........................ (800) (657) (1,058) (444) (311) (394)
C Shares........................ (470) (405) (857) (242) (236) (418)
Realized Capital Gains:
I Shares........................ -- -- -- (1,977) (3,552) (4,156)
A Shares........................ -- -- -- (118) (280) (418)
C Shares........................ -- -- -- (80) (267) (595)
--------- -------- --------- -------- -------- --------
Total Dividends and
Distributions................... (22,719) (15,970) (26,425) (11,144) (9,309) (10,537)
--------- -------- --------- -------- -------- --------
Change in Net Assets from Capital
Transactions.................... (125,727) (1,276) (213,824) 37,315(b) 45,649 19,573
--------- -------- --------- -------- -------- --------
Change in Net Assets.............. (130,791) 10,670 (260,091) 34,868 45,263 7,396
--------- -------- --------- -------- -------- --------
Net Assets:
Beginning of Period............... 644,605 633,935 894,026 292,584 247,321 239,925
--------- -------- --------- -------- -------- --------
End of Period..................... $ 513,814 $644,605 $ 633,935 $327,452 $292,584 $247,321
========= ======== ========= ======== ======== ========
Undistributed (Distribution in
Excess of) Net Investment Income,
End of Period..................... $ 812 $ 881 $ 6 $ (162) $ (162) $ 9
========= ======== ========= ======== ======== ========
<Caption>
Limited Duration
Fund (a)
---------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
--------- --------- ---------
Operations:
Net Investment Income............. $ 2,165 $ 968 $ 1,653
Net Realized Gain (Loss) on
Investments Sold................ 4 (17) (6)
Net Change in Unrealized
Appreciation (Depreciation) on
Investments..................... (13) 37 (31)
-------- -------- --------
Change in Net Assets from
Operations...................... 2,156 988 1,616
-------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................ (2,219) (903) (1,654)
T Shares........................ (1) -- --
A Shares........................
C Shares........................ -- -- --
Realized Capital Gains:
I Shares........................ (1) (3) --
A Shares........................
C Shares........................ -- -- --
-------- -------- --------
Total Dividends and
Distributions................... (2,221) (906) (1,654)
-------- -------- --------
Change in Net Assets from Capital
Transactions.................... (24,365) (46,026) (17,214)
-------- -------- --------
Change in Net Assets.............. (24,430) (45,944) (17,252)
-------- -------- --------
Net Assets:
Beginning of Period............... 83,317 129,261 146,513
-------- -------- --------
End of Period..................... $ 58,887 $ 83,317 $129,261
======== ======== ========
Undistributed (Distribution in
Excess of) Net Investment Income,
End of Period..................... $ -- $ 66 $ 11
======== ======== ========
</Table>
(a) Effective August 1, 2005, all T Shares and C Shares of this fund were
exchanged for I Shares and T Shares and C Shares were no longer offered.
(See Note 2.)
(b) Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
184
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Investment Grade
Investment Grade Bond Fund Tax-Exempt Bond Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued........................... $ 121,335 $ 78,297 $ 131,151 $126,289 $ 92,986 $ 83,827
Proceeds from Shares Issued in Acquisition............ -- 96,136 --
Dividends Reinvested.................................. 9,103 6,490 10,827 2,449 2,189 2,327
Cost of Shares Redeemed............................... (248,679) (167,099) (342,709) (84,976) (40,368) (56,635)
--------- --------- --------- -------- -------- --------
Change in Net Assets from I Shares Transactions....... $(118,241) $ 13,824 $(200,731) $ 43,762 $ 54,807 $ 29,519
--------- --------- --------- -------- -------- --------
T Shares(1):
Proceeds from Shares Issued...........................
Cost of Shares Redeemed...............................
Change in Net Assets from T Shares Transactions.......
A Shares:
Proceeds from Shares Issued........................... $ 3,455 $ 2,965 $ 11,284 $ 3,247 $ 1,595 $ 3,424
Dividends Reinvested.................................. 786 613 943 468 475 654
Cost of Shares Redeemed............................... (7,512) (11,805) (13,838) (4,860) (3,755) (5,748)
--------- --------- --------- -------- -------- --------
Change in Net Assets from A Shares Transactions....... $ (3,271) $ (8,227) $ (1,611) $ (1,145) $ (1,685) $ (1,670)
--------- --------- --------- -------- -------- --------
C Shares(2):
Proceeds from Shares Issued........................... $ 798 $ 724 $ 6,557 $ 106 $ 284 $ 4,230
Dividends Reinvested.................................. 455 370 739 283 435 871
Cost of Shares Redeemed............................... (5,468) (7,967) (18,778) (5,691) (8,192) (13,377)
--------- --------- --------- -------- -------- --------
Change in Net Assets from C Shares Transactions....... $ (4,215) $ (6,873) $ (11,482) $ (5,302) $ (7,473) $ (8,276)
--------- --------- --------- -------- -------- --------
Change in Net Assets from Capital Transactions.......... $(125,727) $ (1,276) $(213,824) $ 37,315 $ 45,649 $ 19,573
========= ========= ========= ======== ======== ========
<Caption>
Limited Duration Fund (a)
---------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
--------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued........................... $ 31,566 $ 8,164 $ 157,998
Proceeds from Shares Issued in Acquisition............
Dividends Reinvested.................................. 2,057 762 1,533
Cost of Shares Redeemed............................... (57,986) (54,952) (176,747)
-------- -------- ---------
Change in Net Assets from I Shares Transactions....... $(24,363) $(46,026) $ (17,216)
-------- -------- ---------
T Shares(1):
Proceeds from Shares Issued........................... $ 220 $ -- $ 1
Cost of Shares Redeemed............................... (221) -- --
-------- -------- ---------
Change in Net Assets from T Shares Transactions....... $ (1) $ -- $ 1
-------- -------- ---------
A Shares:
Proceeds from Shares Issued...........................
Dividends Reinvested..................................
Cost of Shares Redeemed...............................
Change in Net Assets from A Shares Transactions.......
C Shares(2):
Proceeds from Shares Issued........................... $ 64 $ -- $ 1
Dividends Reinvested.................................. -- -- --
Cost of Shares Redeemed............................... (65) -- --
-------- -------- ---------
Change in Net Assets from C Shares Transactions....... $ (1) $ -- $ 1
-------- -------- ---------
Change in Net Assets from Capital Transactions.......... $(24,365) $(46,026) $ (17,214)
======== ======== =========
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares and C Shares of this fund were
exchanged for I Shares and T Shares and C Shares were no longer offered.
(See Note 2.)
(1) T Shares were offered beginning on October 11, 2004 for the Limited Duration
Fund.
(2) C Shares were offered beginning on October 11, 2004 for the Limited Duration
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
185
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Investment Grade
Investment Grade Bond Fund Tax-Exempt Bond Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued................................................ 11,501 7,408 12,373 10,965 8,015 7,142
Issued in Acquisition................................. -- 9,140 --
Reinvested............................................ 865 617 1,025 213 189 200
Redeemed.............................................. (23,593) (15,871) (32,348) (7,396) (3,471) (4,843)
--------- --------- --------- -------- ------- -------
Change in I Shares Transactions....................... (11,227) 1,294 (18,950) 3,782 4,733 2,499
--------- --------- --------- -------- ------- -------
T Shares(1):
Issued................................................
Redeemed..............................................
Change in T Shares Transactions.......................
A Shares:
Issued................................................ 328 281 1,067 281 136 290
Reinvested............................................ 75 58 89 41 41 56
Redeemed.............................................. (713) (1,117) (1,310) (422) (322) (489)
--------- --------- --------- -------- ------- -------
Change in A Shares Transactions....................... (310) (778) (154) (100) (145) (143)
--------- --------- --------- -------- ------- -------
C Shares(2):
Issued................................................ 76 69 615 9 24 357
Reinvested............................................ 43 35 70 25 38 75
Redeemed.............................................. (518) (758) (1,778) (494) (706) (1,145)
--------- --------- --------- -------- ------- -------
Change in C Shares Transactions....................... (399) (654) (1,093) (460) (644) (713)
--------- --------- --------- -------- ------- -------
Change in Share Transactions............................ (11,936) (138) (20,197) 3,222 3,944 1,643
========= ========= ========= ======== ======= =======
<Caption>
Limited Duration Fund (a)
---------------------------------
04/01/05- 11/01/04- 11/01/03-
03/31/06 03/31/05 10/31/04
--------- --------- ---------
Share Transactions:
I Shares:
Issued................................................ 3,161 819 15,801
Issued in Acquisition.................................
Reinvested............................................ 206 76 166
Redeemed.............................................. (5,809) (5,506) (17,691)
-------- -------- --------
Change in I Shares Transactions....................... (2,442) (4,611) (1,724)
-------- -------- --------
T Shares(1):
Issued................................................ 22 -- --
Redeemed.............................................. (22) -- --
-------- -------- --------
Change in T Shares Transactions....................... -- -- --
-------- -------- --------
A Shares:
Issued................................................
Reinvested............................................
Redeemed..............................................
Change in A Shares Transactions.......................
C Shares(2):
Issued................................................ 6 -- --
Reinvested............................................ -- -- --
Redeemed.............................................. (6) -- --
-------- -------- --------
Change in C Shares Transactions....................... -- -- --
-------- -------- --------
Change in Share Transactions............................ (2,442) (4,611) (1,724)
======== ======== ========
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares and C Shares of this fund were
exchanged for I Shares and T Shares and C Shares were no longer offered.
(See Note 2.)
(1) T Shares were offered beginning on October 11, 2004 for the Limited Duration
Fund.
(2) C Shares were offered beginning on October 11, 2004 for the Limited Duration
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
186
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Limited-Term Federal Maryland
Mortgage Securities Fund Municipal Bond Fund
----------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income.......... $ 13,070 $ 14,576 $ 12,288 $ 1,462 $ 1,215 $ 1,619
Net Realized Gain (Loss) on
Investments Sold............. (2,545) (3,135) (562) 298 316 500
Net Change in Unrealized
Appreciation (Depreciation)
on Investments............... (2,631) 73 (17,136) (442) 120 (3,073)
--------- -------- -------- ------- ------- --------
Change in Net Assets from
Operations................... 7,894 11,514 (5,410) 1,318 1,651 (954)
--------- -------- -------- ------- ------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares..................... (14,726) (13,707) (12,201) (1,142) (900) (996)
A Shares..................... (242) (208) (300) (10)
C Shares..................... (872) (1,244) (2,707) (310) (338) (620)
Realized Capital Gains:
I Shares..................... -- -- -- (268) (262) (546)
A Shares..................... -- -- -- (4)
C Shares..................... -- -- -- (94) (123) (459)
--------- -------- -------- ------- ------- --------
Total Dividends and
Distributions................ (15,840) (15,159) (15,208) (1,828) (1,623) (2,621)
--------- -------- -------- ------- ------- --------
Change in Net Assets from
Capital Transactions......... (45,874)(a) (62,975) 34,962 (1,199) (4,417) (7,850)
--------- -------- -------- ------- ------- --------
Change in Net Assets........... (53,820) (66,620) 14,344 (1,709) (4,389) (11,425)
--------- -------- -------- ------- ------- --------
Net Assets:
Beginning of Period............ 448,321 514,941 500,597 44,243 48,632 60,057
--------- -------- -------- ------- ------- --------
End of Period.................. $ 394,501 $448,321 $514,941 $42,534 $44,243 $ 48,632
========= ======== ======== ======= ======= ========
Undistributed (Distribution in
Excess of) Net Investment
Income, End of Period.......... $ (1,019) $ 1,404 $ 8 $ (42) $ (40) $ (17)
========= ======== ======== ======= ======= ========
<Caption>
North Carolina
Tax-Exempt Bond Fund
-----------------------------------
04/01/05- 06/01/04- 01/08/04*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Operations:
Net Investment Income.......... $ 1,288 $ 938 $ 251
Net Realized Gain (Loss) on
Investments Sold............. (35) (12) --
Net Change in Unrealized
Appreciation (Depreciation)
on Investments............... 166 633 (864)
------- ------- -------
Change in Net Assets from
Operations................... 1,419 1,559 (613)
------- ------- -------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares..................... (1,288) (1,006) (251)
A Shares..................... -- -- --
C Shares..................... -- -- --
Realized Capital Gains:
I Shares..................... (4) (124) --
A Shares..................... -- -- --
C Shares..................... -- -- --
------- ------- -------
Total Dividends and
Distributions................ (1,292) (1,130) (251)
------- ------- -------
Change in Net Assets from
Capital Transactions......... 463 7,612 33,621
------- ------- -------
Change in Net Assets........... 590 8,041 32,757
------- ------- -------
Net Assets:
Beginning of Period............ 40,798 32,757 --
------- ------- -------
End of Period.................. $41,388 $40,798 $32,757
======= ======= =======
Undistributed (Distribution in
Excess of) Net Investment
Income, End of Period.......... $ (64) $ (64) $ --
======= ======= =======
</Table>
* Commencement of operations.
(a) Includes redemption fees collected of $1.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
187
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Limited-Term Federal Maryland
Mortgage Securities Fund Municipal Bond Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued........................... $ 147,011 $ 109,729 $ 270,058 $ 6,853 $ 6,296 $ 8,075
Dividends Reinvested.................................. 4,004 4,321 4,093 350 277 489
Cost of Shares Redeemed............................... (181,240) (138,526) (144,748) (5,155) (5,216) (7,414)
--------- --------- --------- ------- ------- --------
Change in Net Assets from I Shares Transactions....... $ (30,225) $ (24,476) $ 129,403 $ 2,048 $ 1,357 $ 1,150
--------- --------- --------- ------- ------- --------
A Shares(1):
Proceeds from Shares Issued........................... $ 3,709 $ 3,395 $ 8,182 $ 697
Dividends Reinvested.................................. 190 181 279 14
Cost of Shares Redeemed............................... (5,233) (7,196) (12,123) (197)
--------- --------- --------- -------
Change in Net Assets from A Shares Transactions....... $ (1,334) $ (3,620) $ (3,662) $ 514
--------- --------- --------- -------
C Shares(2):
Proceeds from Shares Issued........................... $ 195 $ 525 $ 23,896 $ 4 $ 1,138 $ 4,056
Dividends Reinvested.................................. 802 1,065 2,217 341 402 932
Cost of Shares Redeemed............................... (15,312) (36,469) (116,892) (4,106) (7,314) (13,988)
--------- --------- --------- ------- ------- --------
Change in Net Assets from C Shares Transactions....... $ (14,315) $ (34,879) $ (90,779) $(3,761) $(5,774) $ (9,000)
--------- --------- --------- ------- ------- --------
Change in Net Assets from Capital Transactions.......... $ (45,874) $ (62,975) $ 34,962 $(1,199) $(4,417) $ (7,850)
========= ========= ========= ======= ======= ========
<Caption>
North Carolina
Tax-Exempt Bond Fund
----------------------------------
04/01/05- 06/01/04- 01/08/04*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Capital Transactions:
I Shares:
Proceeds from Shares Issued........................... $ 8,474 $11,202 $35,213
Dividends Reinvested.................................. 16 124 --
Cost of Shares Redeemed............................... (8,140) (3,714) (1,592)
------- ------- -------
Change in Net Assets from I Shares Transactions....... $ 350 $ 7,612 $33,621
------- ------- -------
A Shares(1):
Proceeds from Shares Issued........................... $ 111 $ --
Dividends Reinvested.................................. -- --
Cost of Shares Redeemed............................... -- --
------- -------
Change in Net Assets from A Shares Transactions....... $ 111 $ --
------- -------
C Shares(2):
Proceeds from Shares Issued........................... $ 2 $ --
Dividends Reinvested.................................. -- --
Cost of Shares Redeemed............................... -- --
------- -------
Change in Net Assets from C Shares Transactions....... $ 2 $ --
------- -------
Change in Net Assets from Capital Transactions.......... $ 463 $ 7,612 $33,621
======= ======= =======
</Table>
* Commencement of operations.
(1) A Shares were offered beginning on April 13, 2005 and March 21, 2005 for the
Maryland Municipal Bond Fund and the North Carolina Tax-Exempt Bond Fund,
respectively.
(2) C Shares were offered beginning on March 21, 2005 for the North Carolina
Tax-Exempt Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
188
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Limited-Term Federal Maryland
Mortgage Securities Fund Municipal Bond Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued................................................ 14,687 10,801 26,070 666 614 766
Reinvested............................................ 399 423 397 34 27 47
Redeemed.............................................. (18,032) (13,622) (13,982) (499) (514) (705)
--------- --------- --------- --------- ------- -------
Change in I Shares Transactions....................... (2,946) (2,398) 12,485 201 127 108
--------- --------- --------- --------- ------- -------
A Shares(1):
Issued................................................ 370 328 790 67
Reinvested............................................ 19 18 27 1
Redeemed.............................................. (524) (699) (1,176) (19)
--------- --------- --------- ---------
Change in A Shares Transactions....................... (135) (353) (359) 49
--------- --------- --------- ---------
C Shares(2):
Issued................................................ 19 45 2,282 -- 112 375
Reinvested............................................ 80 104 215 33 39 88
Redeemed.............................................. (1,524) (3,565) (11,317) (398) (705) (1,323)
--------- --------- --------- --------- ------- -------
Change in C Shares Transactions....................... (1,425) (3,416) (8,820) (365) (554) (860)
--------- --------- --------- --------- ------- -------
Change in Share Transactions............................ (4,506) (6,167) 3,306 (115) (427) (752)
========= ========= ========= ========= ======= =======
<Caption>
North Carolina
Tax-Exempt Bond Fund
----------------------------------
04/01/05- 06/01/04- 01/08/04*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Share Transactions:
I Shares:
Issued................................................ 849 1,134 3,517
Reinvested............................................ 2 12 --
Redeemed.............................................. (816) (372) (159)
------- ------ -------
Change in I Shares Transactions....................... 35 774 3,358
------- ------ -------
A Shares(1):
Issued................................................ 11 --
Reinvested............................................ -- --
Redeemed.............................................. -- --
------- ------
Change in A Shares Transactions....................... 11 --
------- ------
C Shares(2):
Issued................................................ -- --
Reinvested............................................ -- --
Redeemed.............................................. -- --
------- ------
Change in C Shares Transactions....................... -- --
------- ------
Change in Share Transactions............................ 46 774 3,358
======= ====== =======
</Table>
* Commencement of operations.
(1) A Shares were offered beginning on April 13, 2005 and March 21, 2005 for the
Maryland Municipal Bond Fund and the North Carolina Tax-Exempt Bond Fund,
respectively.
(2) C Shares were offered beginning on March 21, 2005 for the North Carolina
Tax-Exempt Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
189
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Seix
Floating Rate
High Income
Fund Seix High Yield Fund (a) Short-Term Bond Fund
------------- -------------------------------------- ----------------------------------
03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
3/31/2006 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
------------- ---------- ---------- ---------- --------- --------- ---------
Operations:
Net Investment Income........... $ 434 $ 79,295 $ 39,893 $ 92,194 $ 9,838 $ 6,194 $ 7,861
Net Realized Gain (Loss) on
Investments Sold.............. (19) (10,259) 17,216 19,041 531 (168) 1,780
Net Change in Unrealized
Appreciation (Depreciation) on
Investments................... (329) (1,686) (62,779) 25,392 (947) (3,407) (8,220)
-------- ---------- ---------- ---------- -------- -------- --------
Change in Net Assets from
Operations.................... 86 67,350 (5,670) 136,627 9,422 2,619 1,421
-------- ---------- ---------- ---------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares...................... (438) (77,610) (39,447) (90,978) (9,580) (5,829) (7,288)
T Shares...................... (62) (61) (5)
A Shares...................... (1,414) (363) (836) (186) (116) (147)
C Shares...................... (256) (45) -- (306) (303) (569)
Realized Capital Gains:
I Shares...................... -- (16,562) (19,147) (2,278) -- -- --
T Shares...................... -- (29) --
A Shares...................... (536) (192) (31) -- -- --
C Shares...................... (76) (17) -- -- -- --
-------- ---------- ---------- ---------- -------- -------- --------
Total Dividends and
Distributions................. (438) (96,516) (59,301) (94,128) (10,072) (6,248) (8,004)
-------- ---------- ---------- ---------- -------- -------- --------
Change in Net Assets from
Capital Transactions.......... 106,757 (118,674)(b) (234,489) 591,600 (12,846)(c) 1,432 (22,822)
-------- ---------- ---------- ---------- -------- -------- --------
Change in Net Assets............ 106,405 (147,840) (299,460) 634,099 (13,496) (2,197) (29,405)
-------- ---------- ---------- ---------- -------- -------- --------
Net Assets:
Beginning of Period............. -- 1,407,624 1,707,084 1,072,985 309,399 311,596 341,001
-------- ---------- ---------- ---------- -------- -------- --------
End of Period................... $106,405 $1,259,784 $1,407,624 $1,707,084 $295,903 $309,399 $311,596
======== ========== ========== ========== ======== ======== ========
Undistributed (Distribution in
Excess of) Net Investment
Income, End of Period........... $ 17 $ 55 $ 33 $ 33 $ 136 $ 165 $ 10
======== ========== ========== ========== ======== ======== ========
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(b) Includes redemption fees collected of $2.
(c) Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
190
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Seix
Floating Rate
High Income
Fund Seix High Yield Fund (a) Short-Term Bond Fund
------------- --------------------------------- ---------------------------------
03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
------------- --------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued............. $108,820 $ 184,613 $ 144,588 $ 868,270 $ 96,780 $ 95,870 $ 112,609
Proceeds from Shares Issued in
Acquisition........................... 12,374 -- --
Dividends Reinvested.................... 437 87,188 49,289 74,278 2,720 1,755 2,305
Cost of Shares Redeemed................. (2,500) (417,753) (427,085) (353,054) (118,491) (87,950) (129,543)
-------- --------- --------- --------- --------- -------- ---------
Change in Net Assets from I Shares
Transactions.......................... $106,757 $(145,952) $(233,208) $ 589,494 $ (6,617) $ 9,675 $ (14,629)
-------- --------- --------- --------- --------- -------- ---------
T Shares(1):
Proceeds from Shares Issued............. $ 2,840 $ 1,179 $ 1,798
Dividends Reinvested.................... 12 20 --
Cost of Shares Redeemed................. (5,727) (91) (31)
--------- --------- ---------
Change in Net Assets from T Shares
Transactions.......................... $ (2,875) $ 1,108 $ 1,767
--------- --------- ---------
A Shares:
Proceeds from Shares Issued............. $ 37,266 $ 1,729 $ 3,288 $ 2,668 $ 2,913 $ 5,818
Dividends Reinvested.................... 1,712 404 559 164 87 115
Cost of Shares Redeemed................. (11,512) (7,897) (3,509) (3,533) (3,030) (5,618)
--------- --------- --------- --------- -------- ---------
Change in Net Assets from A Shares
Transactions.......................... $ 27,466 $ (5,764) $ 338 $ (701) $ (30) $ 315
--------- --------- --------- --------- -------- ---------
C Shares(2):
Proceeds from Shares Issued............. $ 2,973 $ 3,438 $ 1 $ 435 $ 929 $ 8,024
Dividends Reinvested.................... 97 7 -- 238 240 449
Cost of Shares Redeemed................. (383) (70) -- (6,201) (9,382) (16,981)
--------- --------- --------- --------- -------- ---------
Change in Net Assets from C Shares
Transactions.......................... $ 2,687 $ 3,375 $ 1 $ (5,528) $ (8,213) $ (8,508)
--------- --------- --------- --------- -------- ---------
Change in Net Assets from Capital
Transactions............................. $106,757 $(118,674) $(234,489) $ 591,600 $ (12,846) $ 1,432 $ (22,822)
======== ========= ========= ========= ========= ======== =========
</Table>
* Commencement of operations.
(a)Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1)T shares were offered beginning on October 11, 2004 for the Seix High Yield
Fund.
(2)C shares were offered beginning on October 11, 2004 for the Seix High Yield
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
191
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Seix
Floating Rate
High Income
Fund Seix High Yield Fund (a) Short-Term Bond Fund
------------- --------------------------------- ---------------------------------
03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04
------------- --------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued................................ 10,885 16,930 12,773 77,562 9,961 9,702 11,306
Issued in Acquisition................. 1,281 -- --
Reinvested............................ 44 8,029 4,356 6,653 280 179 232
Redeemed.............................. (251) (38,273) (37,787) (31,699) (12,201) (8,895) (13,012)
-------- --------- --------- --------- --------- -------- --------
Change in I Shares Transactions....... 10,678 (13,314) (20,658) 52,516 (679) 986 (1,474)
-------- --------- --------- --------- --------- -------- --------
T Shares(1):
Issued................................ 258 104 159
Reinvested............................ 1 2 --
Redeemed.............................. (513) (8) (3)
--------- --------- ---------
Change in T Shares Transactions....... (254) 98 156
--------- --------- ---------
A Shares:
Issued................................ 3,495 157 303 273 296 583
Reinvested............................ 162 36 51 17 9 11
Redeemed.............................. (1,093) (715) (319) (363) (308) (563)
--------- --------- --------- --------- -------- --------
Change in A Shares Transactions....... 2,564 (522) 35 (73) (3) 31
--------- --------- --------- --------- -------- --------
C Shares(2):
Issued................................ 273 303 -- 45 96 803
Reinvested............................ 9 1 -- 24 24 45
Redeemed.............................. (36) (6) -- (637) (955) (1,703)
--------- --------- --------- --------- -------- --------
Change in C Shares Transactions....... 246 298 -- (568) (835) (855)
--------- --------- --------- --------- -------- --------
Change in Share Transactions............ 10,678 (10,758) (20,784) 52,707 (1,320) 148 (2,298)
======== ========= ========= ========= ========= ======== ========
</Table>
* Commencement of operations.
(a)Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1)T shares were offered beginning on October 11, 2004 for the Seix High Yield
Fund.
(2)C shares were offered beginning on October 11, 2004 for the Seix High Yield
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
192
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Short-Term U.S. Treasury
Securities Fund Strategic Income Fund
--------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income............... $ 2,382 $ 1,756 $ 2,576 $ 12,771 $ 8,682 $ 11,471
Net Realized Gain (Loss) on
Investments Sold, Options, Forward
Foreign Currencies and Foreign
Currency Transactions............. (808) (817) 1,438 (12,508) 11,389 2,989
Net Change in Unrealized
Appreciation (Depreciation) on
Investments, Forward Foreign
Currency Contracts, Foreign
Currencies and Translation of
Other Assets and Liabilities in
Foreign Currency.................. (122) (534) (4,029) (161) (2,779) (6,605)
-------- -------- -------- -------- -------- --------
Change in Net Assets from
Operations........................ 1,452 405 (15) 102 17,292 (7,855)
-------- -------- -------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares.......................... (1,724) (1,169) (1,437) (10,426) (4,949) (3,651)
T Shares..........................
A Shares.......................... (131) (117) (199) (109) (150) (81)
C Shares.......................... (528) (471) (940) (2,244) (3,275) (7,336)
Realized Capital Gains:
I Shares.......................... -- (749) (1,216) (4,450) (733) (423)
A Shares.......................... -- (63) (199) (33) (26) (19)
C Shares.......................... -- (391) (1,134) (1,056) (535) (792)
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions... (2,383) (2,960) (5,125) (18,318) (9,668) (12,302)
-------- -------- -------- -------- -------- --------
Change in Net Assets from Capital
Transactions...................... (29,864) (54,791) (92,366) 29,254(b) 52,917 32,543
-------- -------- -------- -------- -------- --------
Change in Net Assets................ (30,795) (57,346) (97,506) 11,038 60,541 28,096
-------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period................. 110,080 167,426 264,932 280,508 219,967 191,871
-------- -------- -------- -------- -------- --------
End of Period....................... $ 79,285 $110,080 $167,426 $291,546 $280,508 $219,967
======== ======== ======== ======== ======== ========
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period.............................. $ (2) $ (1) $ -- $ (3,968) $ 4,052 $ (1,028)
======== ======== ======== ======== ======== ========
<Caption>
Total Return
Bond Fund (a)
----------------------------------
04/01/05- 06/01/04- 10/15/03*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Operations:
Net Investment Income............... $ 2,487 $ 1,714 $ 569
Net Realized Gain (Loss) on
Investments Sold, Options, Forward
Foreign Currencies and Foreign
Currency Transactions............. (531) (493) (186)
Net Change in Unrealized
Appreciation (Depreciation) on
Investments, Forward Foreign
Currency Contracts, Foreign
Currencies and Translation of
Other Assets and Liabilities in
Foreign Currency.................. (1,103) 1,299 (1,485)
------- ------- -------
Change in Net Assets from
Operations........................ 853 2,520 (1,102)
------- ------- -------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares.......................... (2,522) (987) (255)
T Shares.......................... (75) (801) (352)
A Shares..........................
C Shares..........................
Realized Capital Gains:
I Shares.......................... -- -- --
A Shares..........................
C Shares..........................
------- ------- -------
Total Dividends and Distributions... (2,597) (1,788) (607)
------- ------- -------
Change in Net Assets from Capital
Transactions...................... (387) 15,875 49,199
------- ------- -------
Change in Net Assets................ (2,131) 16,607 47,490
------- ------- -------
Net Assets:
Beginning of Period................. 64,097 47,490 --
------- ------- -------
End of Period....................... $61,966 $64,097 $47,490
======= ======= =======
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period.............................. $ (74) $ 44 $ --
======= ======= =======
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(b) Redemption fees have been rounded to $0.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
193
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Short-Term U.S. Treasury
Securities Fund Strategic Income Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued.......................... $ 6,931 $ 17,440 $ 16,704 $140,531 $115,818 $ 61,718
Dividends Reinvested................................. 258 510 678 3,086 1,019 789
Cost of Shares Redeemed.............................. (21,504) (38,823) (44,103) (82,975) (21,438) (23,966)
-------- -------- --------- -------- -------- --------
Change in Net Assets from I Shares Transactions...... $(14,315) $(20,873) $ (26,721) $ 60,642 $ 95,399 $ 38,541
-------- -------- --------- -------- -------- --------
T Shares(1):
Proceeds from Shares Issued..........................
Dividends Reinvested.................................
Cost of Shares Redeemed..............................
Change in Net Assets from T Shares Transactions......
A Shares(2):
Proceeds from Shares Issued.......................... $ 453 $ 1,435 $ 11,230 $ 1,633 $ 2,095 $ 4,920
Dividends Reinvested................................. 108 145 349 127 110 41
Cost of Shares Redeemed.............................. (2,527) (7,892) (13,938) (3,670) (2,794) (682)
-------- -------- --------- -------- -------- --------
Change in Net Assets from A Shares Transactions...... $ (1,966) $ (6,312) $ (2,359) $ (1,910) $ (589) $ 4,279
-------- -------- --------- -------- -------- --------
C Shares:
Proceeds from Shares Issued.......................... $ 294 $ 1,211 $ 16,687 $ 1,238 $ 4,056 $ 75,089
Dividends Reinvested................................. 505 759 1,810 2,558 2,865 5,643
Cost of Shares Redeemed.............................. (14,382) (29,576) (81,783) (33,274) (48,814) (91,009)
-------- -------- --------- -------- -------- --------
Change in Net Assets from C Shares Transactions...... $(13,583) $(27,606) $ (63,286) $(29,478) $(41,893) $(10,277)
-------- -------- --------- -------- -------- --------
Change in Net Assets from Capital Transactions......... $(29,864) $(54,791) $ (92,366) $ 29,254 $ 52,917 $ 32,543
======== ======== ========= ======== ======== ========
<Caption>
Total Return
Bond Fund (a)
----------------------------------
04/01/05- 06/01/04- 10/15/03*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Capital Transactions:
I Shares:
Proceeds from Shares Issued.......................... $ 33,564 $ 63,889 $ 18,136
Dividends Reinvested................................. 681 422 225
Cost of Shares Redeemed.............................. (27,910) (21,945) (2,376)
-------- -------- --------
Change in Net Assets from I Shares Transactions...... $ 6,335 $ 42,366 $ 15,985
-------- -------- --------
T Shares(1):
Proceeds from Shares Issued.......................... $ 1,207 $ 9,247 $ 34,463
Dividends Reinvested................................. 55 832 352
Cost of Shares Redeemed.............................. (7,984) (36,570) (1,601)
-------- -------- --------
Change in Net Assets from T Shares Transactions...... $ (6,722) $(26,491) $ 33,214
-------- -------- --------
A Shares(2):
Proceeds from Shares Issued..........................
Dividends Reinvested.................................
Cost of Shares Redeemed..............................
Change in Net Assets from A Shares Transactions......
C Shares:
Proceeds from Shares Issued..........................
Dividends Reinvested.................................
Cost of Shares Redeemed..............................
Change in Net Assets from C Shares Transactions......
Change in Net Assets from Capital Transactions......... $ (387) $ 15,875 $ 49,199
======== ======== ========
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T shares were offered beginning on January 14, 2004 for the Total Return
Bond Fund.
(2) A shares were offered beginning on October 8, 2003 for the Strategic Income
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
194
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Short-Term U.S. Treasury
Securities Fund Strategic Income Fund
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued............................................... 701 1,707 1,628 13,993 11,187 6,185
Reinvested........................................... 26 51 66 314 100 79
Redeemed............................................. (2,175) (3,837) (4,296) (8,337) (2,101) (2,410)
-------- -------- -------- -------- -------- --------
Change in I Shares Transactions...................... (1,448) (2,079) (2,602) 5,970 9,186 3,854
-------- -------- -------- -------- -------- --------
T Shares(1):
Issued...............................................
Reinvested...........................................
Redeemed.............................................
Change in T Shares Transactions......................
A Shares(2):
Issued............................................... 46 139 1,096 161 203 489
Reinvested........................................... 11 14 34 13 11 4
Redeemed............................................. (256) (781) (1,363) (364) (271) (67)
-------- -------- -------- -------- -------- --------
Change in A Shares Transactions...................... (199) (628) (233) (190) (57) 426
-------- -------- -------- -------- -------- --------
C Shares:
Issued............................................... 30 119 1,62 122 435 7,519
Reinvested........................................... 51 76 178 258 282 566
Redeemed............................................. (1,458) (2,946) (7,989) (3,330) (4,871) (9,144)
-------- -------- -------- -------- -------- --------
Change in C Shares Transactions...................... (1,377) (2,751) (6,189) (2,950) (4,154) (1,059)
-------- -------- -------- -------- -------- --------
Change in Share Transactions........................... (3,024) (5,458) (9,024) 2,830 4,975 3,221
======== ======== ======== ======== ======== ========
<Caption>
Total Return
Bond Fund (a)
----------------------------------
04/01/05- 06/01/04- 10/15/03*-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Share Transactions:
I Shares:
Issued............................................... 3,336 6,343 1,796
Reinvested........................................... 69 42 22
Redeemed............................................. (2,810) (2,180) (232)
-------- -------- --------
Change in I Shares Transactions...................... 595 4,205 1,586
-------- -------- --------
T Shares(1):
Issued............................................... 121 922 3,381
Reinvested........................................... 5 83 35
Redeemed............................................. (761) (3,626) (160)
-------- -------- --------
Change in T Shares Transactions...................... (635) (2,621) 3,256
-------- -------- --------
A Shares(2):
Issued...............................................
Reinvested...........................................
Redeemed.............................................
Change in A Shares Transactions......................
C Shares:
Issued...............................................
Reinvested...........................................
Redeemed.............................................
Change in C Shares Transactions......................
Change in Share Transactions........................... (40) 1,584 4,842
======== ======== ========
</Table>
* Commencement of operations.
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) T shares were offered beginning on January 14, 2004 for the Total Return
Bond Fund.
(2) A shares were offered beginning on October 8, 2003 for the Strategic Income
Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
195
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
U.S. Government Securities
U.S. Government Securities Fund Ultra-Short Bond Fund (a)
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income................ $ 12,880 $ 9,129 $ 8,954 $ 1,926 $ 1,571 $ 1,569
Net Realized Gain (Loss) on
Investments Sold................... (944) (568) (1,697) (126) (51) (257)
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... (5,944) 3,057 (13,732) (71) (108) (560)
-------- -------- -------- -------- -------- --------
Change in Net Assets from
Operations......................... 5,992 11,618 (6,457) 1,729 1,412 752
-------- -------- -------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................... (13,431) (9,141) (9,197) (1,902) (1,372) (1,347)
T Shares...........................
A Shares........................... (117) (160) (243)
C Shares........................... (286) (341) (696) (119) (306) (559)
Realized Capital Gains:
A Shares........................... -- -- (922) -- -- --
I Shares........................... -- -- (24)
C Shares........................... -- -- (92) -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions.... (13,834) (9,642) (11,174) (2,021) (1,678) (1,906)
-------- -------- -------- -------- -------- --------
Change in Net Assets from Capital
Transactions....................... 891(c) 5,917 36,764 (19,784) (52,561) (2,362)
-------- -------- -------- -------- -------- --------
Change in Net Assets................. (6,951) 7,893 19,133 (20,076) (52,827) (3,516)
-------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period.................. 334,367 326,474 307,341 62,692 115,519 119,035
-------- -------- -------- -------- -------- --------
End of Period........................ $327,416 $334,367 $326,474 $ 42,616 $ 62,692 $115,519
======== ======== ======== ======== ======== ========
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period............................... $ 605 $ 607 $ 1 $ 111 $ 118 $ 2
======== ======== ======== ======== ======== ========
<Caption>
Ultra-Short Bond Fund (b)
---------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Operations:
Net Investment Income................ $ 7,772 $ 3,501 $ 3,821
Net Realized Gain (Loss) on
Investments Sold................... (421) (141) (460)
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... (420) (311) (1,377)
-------- -------- --------
Change in Net Assets from
Operations......................... 6,931 3,049 1,984
-------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
I Shares........................... (6,434) (1,503) (2,161)
T Shares........................... (1,464) (2,237) (1,656)
A Shares...........................
C Shares...........................
Realized Capital Gains:
A Shares........................... -- -- --
I Shares........................... -- -- --
C Shares...........................
-------- -------- --------
Total Dividends and Distributions.... (7,898) (3,740) (3,817)
-------- -------- --------
Change in Net Assets from Capital
Transactions....................... 33,249 (36,174) 35,286
-------- -------- --------
Change in Net Assets................. 32,282 36,865 33,453
-------- -------- --------
Net Assets:
Beginning of Period.................. 212,975 249,840 216,387
-------- -------- --------
End of Period........................ $245,257 $212,975 $249,840
======== ======== ========
Undistributed (Distribution in Excess
of) Net Investment Income, End of
Period............................... $ 375 $ 148 $ --
======== ======== ========
</Table>
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I
Shares and C Shares were no longer offered. (See Note 2.)
(b) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(c) Includes redemption fees collected of $1.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
196
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
U.S. Government Securities
U.S. Government Securities Fund Ultra-Short Bond Fund (a)
--------------------------------- ---------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued....... $ 159,338 $ 80,344 $138,247 $ 50,911 $ 30,218 $ 62,017
Dividends Reinvested.............. 2,992 2,238 3,400 691 575 596
Cost of Shares Redeemed........... (157,312) (64,224) (85,923) (57,870) (58,326) (79,764)
--------- -------- -------- --------- -------- --------
Change in Net Assets from I Shares
Transactions.................... $ 5,018 $ 18,358 $ 55,724 $ (6,268) $(27,533) $(17,151)
--------- -------- -------- --------- -------- --------
T Shares:
Proceeds from Shares Issued.......
Dividends Reinvested..............
Cost of Shares Redeemed...........
Change in Net Assets from T Shares
Transactions....................
A Shares:
Proceeds from Shares Issued....... $ 2,798 $ 2,421 $ 11,471
Dividends Reinvested.............. 94 142 241
Cost of Shares Redeemed........... (2,870) (8,089) (12,029)
--------- -------- --------
Change in Net Assets from A Shares
Transactions.................... $ 22 $ (5,526) $ (317)
--------- -------- --------
C Shares(1):
Proceeds from Shares Issued....... $ 65 $ 160 $ 4,150 $ 8,253 $ 5,128 $ 85,370
Dividends Reinvested.............. 274 295 645 99 280 480
Cost of Shares Redeemed........... (4,488) (7,370) (23,438) (21,868) (30,436) (71,061)
--------- -------- -------- --------- -------- --------
Change in Net Assets from C Shares
Transactions.................... $ (4,149) $ (6,915) $(18,643) $ (13,516) $(25,028) $ 14,789
--------- -------- -------- --------- -------- --------
Change in Net Assets from Capital
Transactions...................... $ 891 $ 5,917 $ 36,764 $ (19,784) $(52,561) $ (2,362)
========= ======== ======== ========= ======== ========
<Caption>
Ultra-Short Bond Fund (b)
----------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued....... $ 282,129 $ 33,501 $ 155,867
Dividends Reinvested.............. 1,145 374 493
Cost of Shares Redeemed........... (110,138) (71,824) (189,463)
--------- -------- ---------
Change in Net Assets from I Shares
Transactions.................... $ 173,136 $(37,949) $ (33,103)
--------- -------- ---------
T Shares:
Proceeds from Shares Issued....... $ 48,762 $ 52,537 $ 150,211
Dividends Reinvested.............. 203 281 210
Cost of Shares Redeemed........... (188,852) (51,043) (82,032)
--------- -------- ---------
Change in Net Assets from T Shares
Transactions.................... $(139,887) $ 1,775 $ 68,389
--------- -------- ---------
A Shares:
Proceeds from Shares Issued.......
Dividends Reinvested..............
Cost of Shares Redeemed...........
Change in Net Assets from A Shares
Transactions....................
C Shares(1):
Proceeds from Shares Issued.......
Dividends Reinvested..............
Cost of Shares Redeemed...........
Change in Net Assets from C Shares
Transactions....................
Change in Net Assets from Capital
Transactions...................... $ 33,249 $(36,174) $ 35,286
========= ======== =========
</Table>
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I
Shares and C Shares were no longer offered. (See Note 2.)
(b) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(1) C Shares were offered beginning on April 16, 2003 for the U.S. Government
Securities Ultra-Short Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
197
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
U.S. Government Securities
U.S. Government Securities Fund Ultra-Short Bond Fund (a)
--------------------------------- ---------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 (c) 05/31/04 (c)
--------- --------- --------- --------- ------------ ------------
Share Transactions:
I Shares:
Issued........................... 15,314 7,670 13,051 5,099 3,038 6,217
Reinvested....................... 288 213 322 86 58 60
Redeemed......................... (15,185) (6,141) (8,140) (25,788) (5,865) (8,005)
--------- -------- -------- --------- -------- --------
Change in I Shares
Transactions................... 417 1,742 5,233 (20,603) (2,769) (1,728)
--------- -------- -------- --------- -------- --------
T Shares:
Issued...........................
Reinvested.......................
Redeemed.........................
Change in T Shares
Transactions...................
A Shares:
Issued........................... 268 231 1,088
Reinvested....................... 9 14 23
Redeemed......................... (275) (769) (1,145)
--------- -------- --------
Change in A Shares
Transactions................... 2 (524) (34)
--------- -------- --------
C Shares(1):
Issued........................... 6 15 387 833 517 8,554
Reinvested....................... 26 28 61 10 28 48
Redeemed......................... (430) (704) (2,218) (2,163) (3,066) (7,134)
--------- -------- -------- --------- -------- --------
Change in C Shares
Transactions................... (398) (661) (1,770) (1,320) (2,521) 1,468
--------- -------- -------- --------- -------- --------
Change in Share Transactions....... 21 557 3,429 (21,923) (5,290) (260)
========= ======== ======== ========= ======== ========
<Caption>
Ultra-Short Bond Fund (b)
----------------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 (d) 05/31/04 (d)
--------- ------------ ------------
Share Transactions:
I Shares:
Issued........................... 28,114 3,340 15,489
Reinvested....................... 132 37 49
Redeemed......................... (40,744) (7,165) (18,830)
--------- -------- --------
Change in I Shares
Transactions................... (12,498) (3,788) (3,292)
--------- -------- --------
T Shares:
Issued........................... 4,871 5,262 14,996
Reinvested....................... 38 28 21
Redeemed......................... (74,575) (5,115) (8,196)
--------- -------- --------
Change in T Shares
Transactions................... (69,666) 175 6,821
--------- -------- --------
A Shares:
Issued...........................
Reinvested.......................
Redeemed.........................
Change in A Shares
Transactions...................
C Shares(1):
Issued...........................
Reinvested.......................
Redeemed.........................
Change in C Shares
Transactions...................
Change in Share Transactions....... (82,164) (3,613) 3,529
========= ======== ========
</Table>
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I
Shares and C shares were no longer offered. (See Note 2.)
(b) Effective August 1, 2005, all T Shares of this fund were exchanged for I
Shares and T Shares were no longer offered. (See Note 2.)
(c) The I Share amounts have been restated to reflect a 4.974874:1 reverse stock
split on April 1, 2005.
(d) The I and T Shares amounts have been restated to reflect a 5:1 reverse stock
split on April 1, 2005.
(1) C Shares were offered beginning on April 16, 2003 for the U.S. Government
Securities Ultra-Short Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
198
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Virginia Intermediate Virginia Municipal
Municipal Bond Fund Bond Fund
----------------------------------- -----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income.............................. $ 5,998 $ 5,093 $ 6,533 $ 1,956 $ 1,554 $ 1,946
Net Realized Gain on Investments Sold.............. 280 1,570 1,253 250 354 1,373
Net Change in Unrealized Appreciation
(Depreciation) on Investments.................... (865) (547) (9,858) (435) 359 (4,048)
-------- -------- -------- ------- ------- -------
Change in Net Assets from Operations............... 5,413 6,116 (2,072) 1,771 2,267 (729)
-------- -------- -------- ------- ------- -------
Dividends and Distributions to Shareholders:
Net Investment Income:
I Shares......................................... (5,794) (4,860) (6,203) (1,814) (1,394) (1,596)
A Shares......................................... (205) (260) (324) (7) (3) --
C Shares......................................... -- (138) (172) (353)
Realized Capital Gains:
I Shares......................................... (1,141) (1,533) (1,617) (508) (725) (996)
A Shares......................................... (38) (80) (78) (1) (2) --
C Shares......................................... -- (49) (113) (278)
-------- -------- -------- ------- ------- -------
Total Dividends and Distributions.................. (7,178) (6,733) (8,222) (2,517) (2,409) (3,223)
-------- -------- -------- ------- ------- -------
Change in Net Assets from Capital Transactions..... (7,105)(a) (7,405) (14,498) 2,106(a) 1,539 (7,763)
-------- -------- -------- ------- ------- -------
Change in Net Assets............................... (8,870) (8,022) (24,792) 1,360 1,397 (11,715)
-------- -------- -------- ------- ------- -------
Net Assets:
Beginning of Period................................ 184,102 192,124 216,916 54,740 53,343 65,058
-------- -------- -------- ------- ------- -------
End of Period...................................... $175,232 $184,102 $197,124 $56,100 $54,740 $53,343
======== ======== ======== ======= ======= =======
Undistributed (Distribution in Excess of) Net
Investment Income, End of Period................... $ (18) $ (8) $ 19 $ (17) $ (14) $ 1
======== ======== ======== ======= ======= =======
</Table>
(a) Includes redemption fees collected of $1.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
199
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Virginia Intermediate Virginia Municipal
Municipal Bond Fund Bond Fund
---------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Capital Transactions:
I Shares:
Proceeds from Shares Issued.......................... $ 21,239 $ 15,236 $ 19,400 $ 14,884 $ 9,839 $ 8,850
Dividends Reinvested................................. 882 1,109 1,285 343 361 477
Cost of Shares Redeemed.............................. (27,623) (20,317) (35,871) (11,006) (5,501) (10,867)
-------- -------- -------- -------- ------- --------
Change in Net Assets from I Shares Transactions...... $ (5,502) $ (3,972) $(15,186) $ 4,221 $ 4,699 $ (1,540)
-------- -------- -------- -------- ------- --------
A Shares(1):
Proceeds from Shares Issued.......................... $ 658 $ 1,326 $ 5,471 $ 324 $ 198 $ 128
Dividends Reinvested................................. 173 271 308 4 4 --
Cost of Shares Redeemed.............................. (2,443) (5,030) (5,091) (442) (150) --
-------- -------- -------- -------- ------- --------
Change in Net Assets from A Shares Transactions...... $ (1,612) $ (3,433) $ 688 $ (114) $ 52 $ 128
-------- -------- -------- -------- ------- --------
C Shares(2):
Proceeds from Shares Issued.......................... $ 9 $ 397 $ 236 $ 2,118
Dividends Reinvested................................. -- 148 203 458
Cost of Shares Redeemed.............................. -- (2,546) (3,651) (8,927)
-------- -------- ------- --------
Change in Net Assets from C Shares Transactions...... $ 9 $ (2,001) $(3,212) $ (6,351)
-------- -------- ------- --------
Change in Net Assets from Capital Transactions......... $ (7,105) $ (7,405) $(14,498) $ 2,106 $ 1,539 $ (7,763)
======== ======== ======== ======== ======= ========
</Table>
(1) A shares were offered beginning on May 11, 2004 for the Virginia Municipal
Bond Fund.
(2) C shares were offered beginning on September 1, 2005 for the Virginia
Intermediate Municipal Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
200
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Virginia Intermediate Virginia Municipal
Municipal Bond Fund Bond Fund
---------------------------------- ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Share Transactions:
I Shares:
Issued............................................... 2,091 1,487 1,860 1,431 941 821
Reinvested........................................... 88 108 123 33 34 45
Redeemed............................................. (2,720) (1,980) (3,434) (1,059) (527) (1,017)
-------- -------- -------- -------- ------- --------
Change in I Shares Transactions...................... (541) (385) (1,451) 405 448 (151)
-------- -------- -------- -------- ------- --------
A Shares(1):
Issued............................................... 64 130 518 32 19 12
Reinvested........................................... 17 26 30 -- -- --
Redeemed............................................. (240) (491) (489) (43) (14) --
-------- -------- -------- -------- ------- --------
Change in A Shares Transactions...................... (159) (335) 59 (11) 5 12
-------- -------- -------- -------- ------- --------
C Shares(2):
Issued............................................... 1 38 24 194
Reinvested........................................... -- 14 19 43
Redeemed............................................. -- (244) (347) (828)
-------- -------- ------- --------
Change in C Shares Transactions...................... 1 (192) (304) (591)
-------- -------- ------- --------
Change in Share Transactions........................... (699) (720) (1,392) 202 149 (730)
======== ======== ======== ======== ======= ========
</Table>
(1) A Shares were offered beginning on May 11, 2004 for the Virginia Municipal
Bond Fund.
(2) C Shares were offered beginning on September 1, 2005 for the Virginia
Intermediate Municipal Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
201
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Prime Quality Tax-Exempt
Money Market Fund Money Market Fund
------------------------------------ ------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
---------- ---------- ---------- ---------- ---------- ----------
Operations:
Net Investment Income.... $ 186,682 $ 54,437 $ 26,541 $ 37,253 $ 11,375 $ 5,965
Net Realized Gain (Loss)
on Investments Sold.... 114 2 655 103 83 353
Net Increase from
Payments by Affiliates
and Net Gains (Losses)
Realized on the
Disposal of Investments
in Violation of
Restrictions........... 18 -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Change in Net Assets from
Operations............. 186,814 54,439 27,196 37,356 11,458 6,318
---------- ---------- ---------- ---------- ---------- ----------
Dividends and Distributions
to Shareholders:
Net Investment Income:
I Shares............... (98,687) (35,893) (20,077) (24,325) (8,935) (5,054)
A Shares............... (87,817) (18,507) (6,411) (12,929) (2,440) (911)
C Shares............... (178) (124) (53)
Realized Capital Gains:
I Shares............... -- -- (79) (47) (321) (110)
A Shares............... -- -- (38) (27) (110) (26)
C Shares............... -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total Dividends and
Distributions.......... (186,682) (54,524) (26,658) (37,328) (11,806) (6,101)
---------- ---------- ---------- ---------- ---------- ----------
Capital Transactions:
Change in Net Assets from
Capital Transactions... 1,683,808 (46,079) (870,301) 505,248 85,862 (74,992)
---------- ---------- ---------- ---------- ---------- ----------
Change in Net Assets..... 1,683,940 (46,164) (869,763) 505,276 85,514 (74,775)
---------- ---------- ---------- ---------- ---------- ----------
Net Assets:
Beginning of Period...... 5,308,493 5,354,657 6,224,420 1,338,605 1,253,091 1,327,866
---------- ---------- ---------- ---------- ---------- ----------
End of Period............ $6,992,433 $5,308,493 $5,354,657 $1,843,881 $1,338,605 $1,253,091
========== ========== ========== ========== ========== ==========
Undistributed (Distribution
in Excess of) Net
Investment Income, End of
Period................... $ (74) $ (74) $ (65) $ (1) $ -- $ --
========== ========== ========== ========== ========== ==========
<Caption>
U.S. Government Securities
Money Market Fund
----------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
--------- --------- ----------
Operations:
Net Investment Income.... $ 21,609 $ 8,511 $ 3,705
Net Realized Gain (Loss)
on Investments Sold.... -- -- 27
Net Increase from
Payments by Affiliates
and Net Gains (Losses)
Realized on the
Disposal of Investments
in Violation of
Restrictions........... -- -- --
-------- --------- ----------
Change in Net Assets from
Operations............. 21,609 8,511 3,732
-------- --------- ----------
Dividends and Distributions
to Shareholders:
Net Investment Income:
I Shares............... (14,580) (6,507) (3,043)
A Shares............... (7,029) (2,015) (662)
C Shares...............
Realized Capital Gains:
I Shares............... -- -- --
A Shares............... -- -- --
C Shares...............
-------- --------- ----------
Total Dividends and
Distributions.......... (21,609) (8,522) (3,705)
-------- --------- ----------
Capital Transactions:
Change in Net Assets from
Capital Transactions... (79,753) (102,119) (393,409)
-------- --------- ----------
Change in Net Assets..... (79,753) (102,130) (393,382)
-------- --------- ----------
Net Assets:
Beginning of Period...... 747,294 849,424 1,242,806
-------- --------- ----------
End of Period............ $667,541 $ 747,294 $ 849,424
======== ========= ==========
Undistributed (Distribution
in Excess of) Net
Investment Income, End of
Period................... $ -- $ -- $ 11
======== ========= ==========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
202
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Prime Quality Tax-Exempt
Money Market Fund Money Market Fund
--------------------------------------- ---------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
----------- ----------- ----------- ----------- ----------- -----------
Capital Transactions
I Shares
Proceeds from Shares Issued......... $ 4,293,785 $ 3,189,305 $ 3,517,343 $ 1,815,318 $ 1,211,836 $ 1,424,246
Dividends Reinvested................ 10,886 3,021 1,743 62 -- --
Cost of Shares Redeemed............. (4,501,652) (3,496,078) (4,326,125) (1,578,954) (1,253,857) (1,534,286)
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from I Shares
Transactions...................... $ (196,981) $ (303,752) $ (807,039) $ 236,426 $ (42,021) $ (110,040)
----------- ----------- ----------- ----------- ----------- -----------
A Shares
Proceeds from Shares Issued......... $ 3,180,851 $ 1,229,000 $ 1,045,548 $ 1,385,281 $ 496,256 $ 361,662
Dividends Reinvested................ 91,013 15,823 6,441 13,368 2,233 937
Cost of Shares Redeemed............. (1,384,974) (971,800) (1,126,059) (1,129,827) (370,606) (327,551)
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from A Shares
Transactions...................... $ 1,886,890 $ 273,023 $ (74,070) $ 268,822 $ 127,883 $ 35,048
----------- ----------- ----------- ----------- ----------- -----------
C Shares
Proceeds from Shares Issued......... $ 900 $ 7,507 $ 56,986
Dividends Reinvested................ 164 92 43
Cost of Shares Redeemed............. (7,165) (22,949) (46,221)
----------- ----------- -----------
Change in Net Assets from C Shares
Transactions...................... $ (6,101) $ (15,350) $ 10,808
----------- ----------- -----------
Change in Net Assets from Capital
Transactions......................... $ 1,683,808 $ (46,079) $ (870,301) $ 505,248 $ 85,862 $ (74,992)
=========== =========== =========== =========== =========== ===========
Share Transactions:
I Shares
Issued.............................. 4,293,785 3,189,305 3,517,343 1,815,318 1,211,837 1,424,246
Reinvested.......................... 10,886 3,021 1,743 62 -- --
Redeemed............................ (4,501,652) (3,496,078) (4,326,125) (1,578,954) (1,253,857) (1,534,286)
----------- ----------- ----------- ----------- ----------- -----------
Change in I Shares Transactions..... (196,981) (303,752) (807,039) 236,426 (42,020) (110,040)
----------- ----------- ----------- ----------- ----------- -----------
A Shares
Issued.............................. 3,180,851 1,229,000 1,045,548 1,385,281 496,256 361,662
Reinvested.......................... 91,013 15,823 6,441 13,368 2,233 937
Redeemed............................ (1,384,974) (971,800) (1,126,059) (1,129,827) (370,606) (327,551)
----------- ----------- ----------- ----------- ----------- -----------
Change in A Shares Transactions..... 1,886,890 273,023 (74,070) 268,822 127,883 35,048
----------- ----------- ----------- ----------- ----------- -----------
C Shares
Issued.............................. 900 7,507 56,986
Reinvested.......................... 164 92 43
Redeemed............................ (7,165) (22,949) (46,221)
----------- ----------- -----------
Change in C Shares Transactions..... (6,101) (15,350) 10,808
----------- ----------- -----------
Change in Share Transactions.......... 1,683,808 (46,079) (870,301) 505,248 85,863 (74,992)
=========== =========== =========== =========== =========== ===========
<Caption>
U.S. Government Securities
Money Market Fund
---------------------------------------
04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04
----------- ----------- -----------
Capital Transactions
I Shares
Proceeds from Shares Issued......... $ 1,423,967 $ 1,049,985 $ 1,110,958
Dividends Reinvested................ 1,077 578 406
Cost of Shares Redeemed............. (1,528,403) (1,148,626) (1,488,621)
----------- ----------- -----------
Change in Net Assets from I Shares
Transactions...................... $ (103,359) $ (98,063) $ (377,257)
----------- ----------- -----------
A Shares
Proceeds from Shares Issued......... $ 428,415 $ 277,785 $ 352,303
Dividends Reinvested................ 7,367 1,737 659
Cost of Shares Redeemed............. (412,176) (283,578) (369,114)
----------- ----------- -----------
Change in Net Assets from A Shares
Transactions...................... $ 23,606 $ (4,056) $ (16,152)
----------- ----------- -----------
C Shares
Proceeds from Shares Issued.........
Dividends Reinvested................
Cost of Shares Redeemed.............
Change in Net Assets from C Shares
Transactions......................
Change in Net Assets from Capital
Transactions......................... $ (79,753) $ (102,119) $ (393,409)
=========== =========== ===========
Share Transactions:
I Shares
Issued.............................. 1,423,967 1,049,985 1,110,958
Reinvested.......................... 1,077 578 406
Redeemed............................ (1,528,403) (1,148,626) (1,488,621)
----------- ----------- -----------
Change in I Shares Transactions..... (103,359) (98,063) (377,257)
----------- ----------- -----------
A Shares
Issued.............................. 428,415 277,784 352,303
Reinvested.......................... 7,367 1,737 659
Redeemed............................ (412,176) (283,578) (369,114)
----------- ----------- -----------
Change in A Shares Transactions..... 23,606 (4,057) (16,152)
----------- ----------- -----------
C Shares
Issued..............................
Reinvested..........................
Redeemed............................
Change in C Shares Transactions.....
Change in Share Transactions.......... (79,753) (102,120) (393,409)
=========== =========== ===========
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
203
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
U.S. Treasury Virginia Tax-Free
Money Market Fund Money Market Fund
------------------------------------ ----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 3/31/2006 03/31/05 05/31/04
---------- ---------- ---------- --------- --------- ----------
Operations:
Net Investment Income.............................. $ 43,859 $ 13,185 $ 3,587 $ 10,915 $ 2,749 $ 1,436
Net Realized Gain (Loss) on Investments Sold....... (14) (198) 628 107 81 87
---------- ---------- ---------- -------- -------- ----------
Change in Net Assets from Operations............... 43,845 12,987 4,215 11,022 2,830 1,523
---------- ---------- ---------- -------- -------- ----------
Dividends and Distributions to Shareholders:
Net Investment Income:
I Shares......................................... (43,695) (13,515) (3,589) (4,669) (1,651) (1,059)
A Shares......................................... (164) (3) (1) (6,247) (1,097) (377)
Realized Capital Gains:
I Shares......................................... -- -- (590) (39) (76) (80)
A Shares......................................... -- -- -- (63) (66) (44)
---------- ---------- ---------- -------- -------- ----------
Total Dividends and Distributions.................. (43,859) (13,518) (4,180) (11,018) (2,890) (1,560)
---------- ---------- ---------- -------- -------- ----------
Capital Transactions:
Change in Net Assets from Capital Transactions..... 254,466 174,651 153,152 155,310 82,519 (23,691)
---------- ---------- ---------- -------- -------- ----------
Change in Net Assets............................... 254,452 174,120 153,187 155,314 82,459 (23,728)
---------- ---------- ---------- -------- -------- ----------
Net Assets:
Beginning of Period................................ 1,408,086 1,233,966 1,080,779 374,757 292,298 316,026
---------- ---------- ---------- -------- -------- ----------
End of Period...................................... $1,662,538 $1,408,086 $1,233,966 $530,071 $374,757 $ 292,298
========== ========== ========== ======== ======== ==========
Undistributed (Distribution in Excess of) Net
Investment Income, End of Period................... $ 62 $ 62 $ (21) $ 5 $ 6 $ --
========== ========== ========== ======== ======== ==========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
204
STATEMENTS OF CHANGES IN NET ASSETS (continued)
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
U.S. Treasury Virginia Tax-Free
Money Market Fund Money Market Fund
--------------------------------------- -----------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
----------- ----------- ----------- --------- --------- -----------
Capital Transactions
I Shares
Proceeds from Shares Issued................... $ 2,817,452 $ 1,291,895 $ 1,849,253 $ 370,968 $ 220,098 $ 263,166
Dividends Reinvested.......................... 320 100 53 677 200 129
Cost of Shares Redeemed....................... (2,575,370) (1,117,246) (1,696,555) (322,706) (216,847) (309,014)
----------- ----------- ----------- --------- --------- -----------
Change in Net Assets from I Shares
Transactions................................ $ 242,402 $ 174,749 $ 152,751 $ 48,939 $ 3,451 $ (45,719)
----------- ----------- ----------- --------- --------- -----------
A Shares
Proceeds from Shares Issued................... $ 95,793 $ 5 $ 400 $ 379,425 $ 206,304 $ 133,175
Dividends Reinvested.......................... 165 3 1 6,510 1,004 421
Cost of Shares Redeemed....................... (83,894) (106) -- (279,564) (128,240) (111,568)
----------- ----------- ----------- --------- --------- -----------
Change in Net Assets from A Shares
Transactions................................ $ 12,064 $ (98) $ 401 $ 106,371 $ 79,068 $ 22,028
----------- ----------- ----------- --------- --------- -----------
Change in Net Assets from Capital
Transactions.................................. $ 254,466 $ 174,651 $ 153,152 $ 155,310 $ 82,519 $ (23,691)
=========== =========== =========== ========= ========= ===========
Share Transactions:
I Shares
Issued........................................ 2,817,452 1,291,895 1,849,253 370,968 220,098 263,166
Reinvested.................................... 320 100 53 677 200 129
Redeemed...................................... (2,575,370) (1,117,246) (1,696,555) (322,706) (216,847) (309,014)
----------- ----------- ----------- --------- --------- -----------
Change in I Shares Transactions............... 242,402 174,749 152,751 48,939 3,451 (45,719)
----------- ----------- ----------- --------- --------- -----------
A Shares
Issued........................................ 95,793 5 400 379,425 206,304 133,175
Reinvested.................................... 165 3 1 6,510 1,004 421
Redeemed...................................... (83,894) (106) -- (279,564) (128,240) (111,568)
----------- ----------- ----------- --------- --------- -----------
Change in A Shares Transactions............... 12,064 (98) 401 106,371 79,068 22,028
----------- ----------- ----------- --------- --------- -----------
Change in Share Transactions.................... 254,466 174,651 153,152 155,310 82,519 (23,691)
=========== =========== =========== ========= ========= ===========
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
205
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
CORE BOND FUND
I Shares
Year Ended March 31, 2006 $10.12 $ 0.41 $(0.24) $ 0.17 $(0.42) $(0.01) $(0.43)
Period Ended March 31, 2005 10.30 0.15 (0.14) 0.01 (0.14) (0.05) (0.19)
Year Ended October 31, 2004++ 10.31 0.31 0.23 0.54 (0.32) (0.23) (0.55)
Year Ended October 31, 2003 10.00 0.30 0.35 0.65 (0.34) -- (0.34)
Year Ended October 31, 2002 10.34 0.42 (0.29) 0.13 (0.42) (0.05) (0.47)
Year Ended October 31, 2001 9.66 0.59 0.70 1.29 (0.61) -- (0.61)
A Shares
Year Ended March 31, 2006 10.41 0.38 (0.24) 0.14 (0.39) (0.01) (0.40)
Period Ended March 31, 2005 10.60 0.12(a) (0.13)(a) (0.01) (0.13) (0.05) (0.18)
Year Ended October 31, 2004++ 10.49 0.18 0.35 0.53 (0.19) (0.23) (0.42)
Year Ended October 31, 2003 10.08 0.29 0.34 0.63 (0.22) -- (0.22)
Period Ended October 31,
2002(b) 10.00 0.27 0.09 0.36 (0.28) -- (0.28)
C Shares
Year Ended March 31, 2006 10.12 0.32 (0.24) 0.08 (0.33) (0.01) (0.34)
Period Ended March 31, 2005 10.30 0.11 (0.13) (0.02) (0.11) (0.05) (0.16)
Period Ended October 31,
2004++(c) 10.25 0.01 0.06 0.07 (0.02) -- (0.02)
FLORIDA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 10.90 0.34 (0.03) 0.31 (0.34) (0.05) (0.39)
Period Ended March 31, 2005+ 10.93 0.26 0.10 0.36 (0.26) (0.13) (0.39)
Year Ended May 31, 2004 11.69 0.32(a) (0.56)(a) (0.24) (0.32) (0.20) (0.52)
Year Ended May 31, 2003 10.95 0.40 0.79 1.19 (0.40) (0.05) (0.45)
Year Ended May 31, 2002 10.79 0.40 0.22 0.62 (0.40) (0.06) (0.46)
Year Ended May 31, 2001 10.06 0.44 0.73 1.17 (0.44) -- (0.44)
A Shares
Year Ended March 31, 2006 10.91 0.33 (0.03) 0.30 (0.33) (0.05) (0.38)
Period Ended March 31, 2005+ 10.93 0.25 0.11 0.36 (0.25) (0.13) (0.38)
Year Ended May 31, 2004 11.69 0.30(a) (0.56)(a) (0.26) (0.30) (0.20) (0.50)
Year Ended May 31, 2003 10.95 0.38 0.79 1.17 (0.38) (0.05) (0.43)
Year Ended May 31, 2002 10.79 0.38 0.22 0.60 (0.38) (0.06) (0.44)
Year Ended May 31, 2001 10.07 0.42 0.72 1.14 (0.42) -- (0.42)
C Shares
Year Ended March 31, 2006 10.93 0.24 (0.03) 0.21 (0.24) (0.05) (0.29)
Period Ended March 31, 2005+ 10.96 0.19 0.10 0.29 (0.19) (0.13) (0.32)
Year Ended May 31, 2004 11.71 0.24(a) (0.55)(a) (0.31) (0.24) (0.20) (0.44)
Year Ended May 31, 2003 10.97 0.32 0.79 1.11 (0.32) (0.05) (0.37)
Year Ended May 31, 2002 10.81 0.32 0.22 0.54 (0.32) (0.06) (0.38)
Year Ended May 31, 2001 10.09 0.37 0.72 1.09 (0.37) -- (0.37)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset Net Assets, to Income to Waivers,
Value, End of Average Average Reimbursements Portfolio
End of Total Period Net Net and Expense Turnover
Period Return(2) (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ----------- --------- ---------- --------------- ---------
CORE BOND FUND
I Shares
Year Ended March 31, 2006 $ 9.86 1.68% $497,730 0.29% 4.01% 0.29% 236%
Period Ended March 31, 2005 10.12 0.09 176,537 0.37 3.12 0.37 150
Year Ended October 31, 2004++ 10.30 5.49 56,019 0.45 3.03 0.59 330
Year Ended October 31, 2003 10.31 6.58 33,662 0.45 3.10 0.51 463
Year Ended October 31, 2002 10.00 1.38 80,727 0.45 4.08 0.70 502
Year Ended October 31, 2001 10.34 13.82 52,034 0.45 5.85 0.70 492
A Shares
Year Ended March 31, 2006 10.15 1.38 493 0.56 3.67 0.56 236
Period Ended March 31, 2005 10.41 (0.11) 267 0.62 2.78 0.62 150
Year Ended October 31, 2004++ 10.60 5.22 417 0.70 2.80 0.83 330
Year Ended October 31, 2003 10.49 6.24 303 0.68 2.66 0.68 463
Period Ended October 31,
2002(b) 10.08 3.69 166 0.80 3.30 1.11 502
C Shares
Year Ended March 31, 2006 9.86 0.76 28 1.24 3.10 1.27 236
Period Ended March 31, 2005 10.12 (0.17) 1 1.01 2.50 1.37 150
Period Ended October 31,
2004++(c) 10.30 0.65 1 1.10 2.71 1.41 330
FLORIDA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 10.82 2.90 165,341 0.63 3.13 0.65 90
Period Ended March 31, 2005+ 10.90 3.31 157,500 0.67 2.84 0.71 66
Year Ended May 31, 2004 10.93 (2.07) 165,065 0.71 2.82 0.75 56
Year Ended May 31, 2003 11.69 11.13 147,423 0.71 3.54 0.75 62
Year Ended May 31, 2002 10.95 5.88 120,885 0.71 3.65 0.76 91
Year Ended May 31, 2001 10.79 11.84 107,867 0.71 4.19 0.76 59
A Shares
Year Ended March 31, 2006 10.83 2.73 5,077 0.80 2.98 0.81 90
Period Ended March 31, 2005+ 10.91 3.24 6,129 0.86 2.65 0.94 66
Year Ended May 31, 2004 10.93 (2.28) 5,906 0.92 2.62 1.13 56
Year Ended May 31, 2003 11.69 10.89 8,191 0.92 3.29 1.13 62
Year Ended May 31, 2002 10.95 5.66 2,935 0.92 3.44 1.37 91
Year Ended May 31, 2001 10.79 11.50 2,747 0.91 4.00 1.38 59
C Shares
Year Ended March 31, 2006 10.85 1.95 8,783 1.56 2.22 1.66 90
Period Ended March 31, 2005+ 10.93 2.66 12,347 1.42 2.09 1.73 66
Year Ended May 31, 2004 10.96 (2.68) 19,952 1.42 2.14 1.81 56
Year Ended May 31, 2003 11.71 10.32 40,241 1.42 2.81 1.80 62
Year Ended May 31, 2002 10.97 5.15 21,897 1.42 2.93 1.84 91
Year Ended May 31, 2001 10.81 10.95 12,806 1.41 3.49 1.89 59
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
206
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
GEORGIA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 $10.21 $ 0.36(a) $(0.04)(a) $ 0.32 $(0.36) $(0.01) $(0.37)
Period Ended March 31, 2005+ 10.24 0.28 0.20 0.48 (0.27) (0.24) (0.51)
Year Ended May 31, 2004 10.89 0.34(a) (0.58)(a) (0.24) (0.34) (0.07) (0.41)
Year Ended May 31, 2003 10.29 0.38 0.60 0.98 (0.38) -- (0.38)
Year Ended May 31, 2002 10.10 0.39 0.19 0.58 (0.39) -- (0.39)
Year Ended May 31, 2001 9.50 0.40 0.60 1.00 (0.40) -- (0.40)
A Shares
Year Ended March 31, 2006 10.22 0.35(a) (0.03)(a) 0.32 (0.35) (0.01) (0.36)
Period Ended March 31, 2005+ 10.25 0.27 0.20 0.47 (0.26) (0.24) (0.50)
Year Ended May 31, 2004 10.90 0.32(a) (0.58)(a) (0.26) (0.32) (0.07) (0.39)
Year Ended May 31, 2003 10.31 0.35 0.59 0.94 (0.35) -- (0.35)
Year Ended May 31, 2002 10.12 0.37 0.19 0.56 (0.37) -- (0.37)
Year Ended May 31, 2001 9.51 0.38 0.61 0.99 (0.38) -- (0.38)
C Shares
Year Ended March 31, 2006 10.22 0.27(a) (0.04)(a) 0.23 (0.27) (0.01) (0.28)
Period Ended March 31, 2005+ 10.25 0.22 0.20 0.42 (0.21) (0.24) (0.45)
Year Ended May 31, 2004 10.90 0.27(a) (0.58)(a) (0.31) (0.27) (0.07) (0.34)
Year Ended May 31, 2003 10.30 0.30 0.60 0.90 (0.30) -- (0.30)
Year Ended May 31, 2002 10.11 0.32 0.19 0.51 (0.32) -- (0.32)
Year Ended May 31, 2001 9.51 0.33 0.60 0.93 (0.33) -- (0.33)
HIGH INCOME FUND
I Shares
Year Ended March 31, 2006 7.38 0.55 (0.03) 0.52 (0.55) (0.38) (0.93)
Period Ended March 31, 2005+ 7.38 0.46 0.21 0.67 (0.46) (0.21) (0.67)
Year Ended May 31, 2004 7.16 0.62(a) 0.22(a) 0.84 (0.62) -- (0.62)
Year Ended May 31, 2003 7.25 0.61 (0.09) 0.52 (0.61) -- (0.61)
Period Ended May 31, 2002(d) 7.37 0.39 (0.12) 0.27 (0.39) -- (0.39)
A Shares
Year Ended March 31, 2006 7.39 0.53 (0.03) 0.50 (0.53) (0.38) (0.91)
Period Ended March 31, 2005+ 7.38 0.44 0.22 0.66 (0.44) (0.21) (0.65)
Period Ended May 31, 2004(e) 7.39 0.35(a) (0.01)(a) 0.34 (0.35) -- (0.35)
C Shares
Year Ended March 31, 2006 7.38 0.49 (0.03) 0.46 (0.49) (0.38) (0.87)
Period Ended March 31, 2005+ 7.38 0.42 0.21 0.63 (0.42) (0.21) (0.63)
Year Ended May 31, 2004 7.16 0.57(a) 0.22(a) 0.79 (0.57) -- (0.57)
Year Ended May 31, 2003 7.25 0.57 (0.09) 0.48 (0.57) -- (0.57)
Year Ended May 31, 2002 7.69 0.55 (0.44) 0.11 (0.55) -- (0.55)
Year Ended May 31, 2001 7.88 0.55 (0.19) 0.36 (0.55) -- (0.55)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
GEORGIA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 $10.16 3.19% $115,929 0.64% 3.53% 0.66% 43%
Period Ended March 31, 2005+ 10.21 4.73 96,503 0.67 3.31 0.71 52
Year Ended May 31, 2004 10.24 (2.18) 98,113 0.71 3.26 0.76 100
Year Ended May 31, 2003 10.89 9.64 98,866 0.71 3.55 0.76 17
Year Ended May 31, 2002 10.29 5.81 91,356 0.71 3.79 0.76 23
Year Ended May 31, 2001 10.10 10.67 85,880 0.71 4.03 0.77 21
A Shares
Year Ended March 31, 2006 10.18 3.12 3,711 0.79 3.38 0.81 43
Period Ended March 31, 2005+ 10.22 4.57 2,660 0.86 3.12 0.99 52
Year Ended May 31, 2004 10.25 (2.39) 2,735 0.92 3.06 1.36 100
Year Ended May 31, 2003 10.90 9.29 2,630 0.92 3.34 1.41 17
Year Ended May 31, 2002 10.31 5.58 2,844 0.92 3.58 1.36 23
Year Ended May 31, 2001 10.12 10.56 2,901 0.91 3.83 1.42 21
C Shares
Year Ended March 31, 2006 10.17 2.25 9,567 1.57 2.61 1.67 43
Period Ended March 31, 2005+ 10.22 4.09 10,664 1.42 2.56 1.73 52
Year Ended May 31, 2004 10.25 (2.87) 13,351 1.42 2.55 1.84 100
Year Ended May 31, 2003 10.90 8.86 16,591 1.42 2.84 1.84 17
Year Ended May 31, 2002 10.30 5.07 14,269 1.42 3.08 1.84 23
Year Ended May 31, 2001 10.11 9.92 14,079 1.41 3.33 1.89 21
HIGH INCOME FUND
I Shares
Year Ended March 31, 2006 6.97 7.53 36,764 0.72 7.64 0.82 208
Period Ended March 31, 2005+ 7.38 9.31 51,318 0.73 7.47 0.87 191
Year Ended May 31, 2004 7.38 11.94 71,314 0.76 8.27 0.91 49
Year Ended May 31, 2003 7.16 8.19 100,852 0.78 8.95 0.93 20
Period Ended May 31, 2002(d) 7.25 3.70 28,767 0.82 8.27 0.97 59
A Shares
Year Ended March 31, 2006 6.98 7.20 403 1.03 7.36 1.13 208
Period Ended March 31, 2005+ 7.39 9.17 739 1.03 7.34 1.39 191
Period Ended May 31, 2004(e) 7.38 4.61 1,508 1.10 7.80 1.88 49
C Shares
Year Ended March 31, 2006 6.97 6.57 36,062 1.62 6.78 1.83 208
Period Ended March 31, 2005+ 7.38 8.69 52,847 1.40 6.78 1.88 191
Year Ended May 31, 2004 7.38 11.23 75,693 1.40 7.62 1.98 49
Year Ended May 31, 2003 7.16 7.52 64,418 1.40 8.43 2.00 20
Year Ended May 31, 2002 7.25 1.46 46,864 1.40 7.35 2.02 59
Year Ended May 31, 2001 7.69 4.74 19,875 1.40 6.88 2.13 10
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
207
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
HIGH QUALITY BOND FUND
I Shares
Year Ended March 31, 2006 $ 9.85 $ 0.37 $(0.22) $ 0.15 $(0.35) $ -- $(0.35)
Period Ended March 31, 2005+ 9.84 0.21 0.02 0.23 (0.21) (0.01) (0.22)
Period Ended May 31, 2004(e) 10.00 0.12(a) (0.16)(a) (0.04) (0.12) -- (0.12)
INTERMEDIATE BOND FUND
I Shares
Year Ended March 31, 2006 10.08 0.38 (0.21) 0.17 (0.39) (0.01) (0.40)
Period Ended March 31, 2005 10.37 0.14 (0.21) (0.07) (0.14) (0.08) (0.22)
Year Ended October 31, 2004++ 10.23 0.34 0.14 0.48 (0.34) -- (0.34)
Year Ended October 31, 2003 10.12 0.37 0.15 0.52 (0.41) -- (0.41)
Year Ended October 31, 2002 10.63 0.47 (0.23) 0.24 (0.50) (0.25) (0.75)
Year Ended October 31, 2001 9.96 0.57 0.68 1.25 (0.58) -- (0.58)
A Shares
Year Ended March 31, 2006 10.08 0.39 (0.25) 0.14 (0.36) (0.01) (0.37)
Period Ended March 31, 2005 10.36 0.13 (0.21) (0.08) (0.12) (0.08) (0.20)
Period Ended October 31,
2004++(c) 10.32 0.02 0.04 0.06 (0.02) -- (0.02)
C Shares
Year Ended March 31, 2006 10.08 0.28 (0.21) 0.07 (0.29) (0.01) (0.30)
Period Ended March 31, 2005 10.36 0.11 (0.21) (0.10) (0.10) (0.08) (0.18)
Period Ended October 31,
2004++(c) 10.32 0.01 0.04 0.05 (0.01) -- (0.01)
INVESTMENT GRADE BOND FUND
I Shares
Year Ended March 31, 2006 10.51 0.42 (0.11) 0.31 (0.42) -- (0.42)
Period Ended March 31, 2005+ 10.31 0.29 0.19 0.48 (0.28) -- (0.28)
Year Ended May 31, 2004 10.94 0.35(a) (0.60)(a) (0.25) (0.38) -- (0.38)
Year Ended May 31, 2003 10.24 0.40 0.76 1.16 (0.46) -- (0.46)
Year Ended May 31, 2002 10.23 0.51 0.01 0.52 (0.51) -- (0.51)
Year Ended May 31, 2001 9.58 0.61 0.65 1.26 (0.61) -- (0.61)
A Shares
Year Ended March 31, 2006 10.50 0.38 (0.10) 0.28 (0.38) -- (0.38)
Period Ended March 31, 2005+ 10.31 0.26 0.18 0.44 (0.25) -- (0.25)
Year Ended May 31, 2004 10.94 0.31(a) (0.60)(a) (0.29) (0.34) -- (0.34)
Year Ended May 31, 2003 10.24 0.38 0.74 1.12 (0.42) -- (0.42)
Year Ended May 31, 2002 10.23 0.48 0.01 0.49 (0.48) -- (0.48)
Year Ended May 31, 2001 9.58 0.57 0.65 1.22 (0.57) -- (0.57)
C Shares
Year Ended March 31, 2006 10.51 0.31 (0.11) 0.20 (0.31) -- (0.31)
Period Ended March 31, 2005+ 10.31 0.21 0.19 0.40 (0.20) -- (0.20)
Year Ended May 31, 2004 10.95 0.25(a) (0.60)(a) (0.35) (0.29) -- (0.29)
Year Ended May 31, 2003 10.25 0.31 0.76 1.07 (0.37) -- (0.37)
Year Ended May 31, 2002 10.24 0.42 0.01 0.43 (0.42) -- (0.42)
Year Ended May 31, 2001 9.59 0.53 0.65 1.18 (0.53) -- (0.53)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
HIGH QUALITY BOND FUND
I Shares
Year Ended March 31, 2006 $ 9.65 1.52% $ 48,908 0.40% 3.69% 0.47% 91%
Period Ended March 31, 2005+ 9.85 2.30 38,535 0.66 2.51 0.90 290
Period Ended May 31, 2004(e) 9.84 (0.37) 25,506 0.65 2.09 0.92 31
INTERMEDIATE BOND FUND
I Shares
Year Ended March 31, 2006 9.85 1.76 78,187 0.31 3.88 0.31 154
Period Ended March 31, 2005 10.08 (0.75) 47,981 0.29 3.25 0.29 94
Year Ended October 31, 2004++ 10.37 4.73 35,848 0.45 3.25 0.59 130
Year Ended October 31, 2003 10.23 5.16 28,689 0.45 3.42 0.56 277
Year Ended October 31, 2002 10.12 2.47 40,284 0.45 4.63 0.73 237
Year Ended October 31, 2001 10.63 12.87 26,192 0.45 5.50 0.76 431
A Shares
Year Ended March 31, 2006 9.85 1.39 4 0.56 3.83 0.57 154
Period Ended March 31, 2005 10.08 (0.82) 1 0.63 2.84 0.63 94
Period Ended October 31,
2004++(c) 10.36 0.53 1 0.71 2.58 0.71 130
C Shares
Year Ended March 31, 2006 9.85 0.74 68 1.24 2.86 1.25 154
Period Ended March 31, 2005 10.08 (0.96) 1 0.91 2.47 1.36 94
Period Ended October 31,
2004++(c) 10.36 0.51 1 1.00 2.22 1.41 130
INVESTMENT GRADE BOND FUND
I Shares
Year Ended March 31, 2006 10.40 2.94 480,024 0.65 3.91 0.65 171
Period Ended March 31, 2005+ 10.51 4.71 602,995 0.78 3.31 0.80 268
Year Ended May 31, 2004 10.31 (2.31) 578,345 0.82 3.29 0.84 119
Year Ended May 31, 2003 10.94 11.61 821,342 0.81 3.92 0.83 137
Year Ended May 31, 2002 10.24 5.18 886,471 0.81 4.81 0.83 123
Year Ended May 31, 2001 10.23 13.55 860,073 0.81 6.17 0.84 131
A Shares
Year Ended March 31, 2006 10.40 2.69 20,210 1.00 3.57 1.00 171
Period Ended March 31, 2005+ 10.50 4.24 23,687 1.21 2.90 1.26 268
Year Ended May 31, 2004 10.31 (2.70) 31,263 1.22 2.90 1.38 119
Year Ended May 31, 2003 10.94 11.16 34,874 1.22 3.45 1.38 137
Year Ended May 31, 2002 10.24 4.81 20,825 1.22 4.40 1.40 123
Year Ended May 31, 2001 10.23 13.09 21,244 1.21 5.77 1.42 131
C Shares
Year Ended March 31, 2006 10.40 1.94 13,580 1.63 2.93 1.66 171
Period Ended March 31, 2005+ 10.51 3.90 17,923 1.71 2.39 1.84 268
Year Ended May 31, 2004 10.31 (3.27) 24,327 1.71 2.40 2.00 119
Year Ended May 31, 2003 10.95 10.61 37,810 1.71 3.01 1.97 137
Year Ended May 31, 2002 10.25 4.27 36,200 1.71 3.90 1.96 123
Year Ended May 31, 2001 10.24 12.54 25,791 1.70 5.24 1.99 131
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
208
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
INVESTMENT GRADE TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 $11.45 $ 0.33 $ 0.01 $ 0.34 $(0.33) $(0.08) $(0.41)
Period Ended March 31, 2005+ 11.44 0.23 0.20 0.43 (0.24) (0.18) (0.42)
Year Ended May 31, 2004 12.01 0.27(a) (0.32)(a) (0.05) (0.27) (0.25) (0.52)
Year Ended May 31, 2003 11.57 0.30 0.90 1.20 (0.30) (0.46) (0.76)
Year Ended May 31, 2002 11.38 0.34 0.46 0.80 (0.34) (0.27) (0.61)
Year Ended May 31, 2001 10.67 0.44 0.71 1.15 (0.44) -- (0.44)
A Shares
Year Ended March 31, 2006 11.46 0.29 0.01 0.30 (0.29) (0.08) (0.37)
Period Ended March 31, 2005+ 11.46 0.19 0.19 0.38 (0.20) (0.18) (0.38)
Year Ended May 31, 2004 12.03 0.23(a) (0.33)(a) (0.10) (0.22) (0.25) (0.47)
Year Ended May 31, 2003 11.58 0.25 0.91 1.16 (0.25) (0.46) (0.71)
Year Ended May 31, 2002 11.39 0.29 0.46 0.75 (0.29) (0.27) (0.56)
Year Ended May 31, 2001 10.68 0.40 0.71 1.11 (0.40) -- (0.40)
C Shares
Year Ended March 31, 2006 11.44 0.21 0.01 0.22 (0.21) (0.08) (0.29)
Period Ended March 31, 2005+ 11.44 0.14 0.19 0.33 (0.15) (0.18) (0.33)
Year Ended May 31, 2004 12.01 0.17(a) (0.32)(a) (0.15) (0.17) (0.25) (0.42)
Year Ended May 31, 2003 11.57 0.20 0.90 1.10 (0.20) (0.46) (0.66)
Year Ended May 31, 2002 11.38 0.24 0.46 0.70 (0.24) (0.27) (0.51)
Year Ended May 31, 2001 10.67 0.34 0.71 1.05 (0.34) -- (0.34)
LIMITED DURATION FUND
I Shares
Year Ended March 31, 2006 9.98 0.35 0.02 0.37 (0.36) -- (0.36)
Period Ended March 31, 2005 9.98 0.08 -- 0.08 (0.08) --* (0.08)
Year Ended October 31, 2004++ 9.98 0.11 -- 0.11 (0.11) -- (0.11)
Year Ended October 31, 2003 10.00 0.11 (0.02) 0.09 (0.11) -- (0.11)
Period Ended October 31,
2002(f) 10.00 --* -- --* --* -- --*
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
I Shares
Year Ended March 31, 2006 10.09 0.35 (0.15) 0.20 (0.41) -- (0.41)
Period Ended March 31, 2005+ 10.18 0.31 (0.08) 0.23 (0.32) -- (0.32)
Year Ended May 31, 2004 10.59 0.24(a) (0.36)(a) (0.12) (0.29) -- (0.29)
Year Ended May 31, 2003 10.31 0.29(a) 0.42(a) 0.71 (0.42) (0.01) (0.43)
Year Ended May 31, 2002 10.01 0.43 0.32 0.75 (0.43) (0.02) (0.45)
Year Ended May 31, 2001 9.62 0.55 0.39 0.94 (0.55) -- (0.55)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
INVESTMENT GRADE TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 $11.38 2.92 % $300,986 0.64% 2.84% 0.64% 237%
Period Ended March 31, 2005+ 11.45 3.74 259,542 0.77 2.36 0.80 178
Year Ended May 31, 2004 11.44 (0.45) 205,266 0.81 2.33 0.84 242
Year Ended May 31, 2003 12.01 10.80 185,485 0.81 2.57 0.84 329
Year Ended May 31, 2002 11.57 7.15 149,200 0.81 2.93 0.84 311
Year Ended May 31, 2001 11.38 10.93 134,139 0.81 3.93 0.85 285
A Shares
Year Ended March 31, 2006 11.39 2.57 16,182 0.99 2.49 0.99 237
Period Ended March 31, 2005+ 11.46 3.28 17,430 1.20 1.93 1.26 178
Year Ended May 31, 2004 11.46 (0.85) 19,086 1.22 1.92 1.36 242
Year Ended May 31, 2003 12.03 10.42 21,756 1.22 2.16 1.36 329
Year Ended May 31, 2002 11.58 6.71 20,436 1.22 2.51 1.36 311
Year Ended May 31, 2001 11.39 10.48 18,601 1.21 3.54 1.37 285
C Shares
Year Ended March 31, 2006 11.37 1.92 10,284 1.65 1.85 1.67 237
Period Ended March 31, 2005+ 11.44 2.86 15,612 1.70 1.43 1.82 178
Year Ended May 31, 2004 11.44 (1.33) 22,969 1.70 1.45 1.92 242
Year Ended May 31, 2003 12.01 9.82 32,684 1.70 1.68 1.91 329
Year Ended May 31, 2002 11.57 6.21 24,587 1.70 2.03 1.92 311
Year Ended May 31, 2001 11.38 9.97 20,010 1.69 3.04 1.96 285
LIMITED DURATION FUND
I Shares
Year Ended March 31, 2006 9.99 3.73 58,887 0.15 3.39 0.15 94
Period Ended March 31, 2005 9.98 0.84 83,315 0.16 2.12 0.16 12
Year Ended October 31, 2004++ 9.98 1.09 129,259 0.20 1.04 0.26 101
Year Ended October 31, 2003 9.98 0.92 146,513 0.20 1.10 0.26 244
Period Ended October 31,
2002(f) 10.00 --(g) 12,298 --(g) --(g) --(g) --(g)
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
I Shares
Year Ended March 31, 2006 9.88 2.04 369,991 0.61 3.41 0.63 81
Period Ended March 31, 2005+ 10.09 2.26 407,543 0.66 3.60 0.71 41
Year Ended May 31, 2004 10.18 (1.10) 435,446 0.70 2.32 0.75 146
Year Ended May 31, 2003 10.59 6.99 320,718 0.70 2.79 0.75 117
Year Ended May 31, 2002 10.31 7.53 164,624 0.70 3.72 0.75 410
Year Ended May 31, 2001 10.01 10.02 107,674 0.70 5.62 0.76 532
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
209
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
A Shares
Year Ended March 31, 2006 $10.07 $ 0.30 $(0.11) $ 0.19 $(0.39) $ -- $(0.39)
Period Ended March 31, 2005+ 10.16 0.29 (0.08) 0.21 (0.30) -- (0.30)
Year Ended May 31, 2004 10.57 0.21(a) (0.35)(a) (0.14) (0.27) -- (0.27)
Year Ended May 31, 2003 10.29 0.24(a) 0.44(a) 0.68 (0.39) (0.01) (0.40)
Year Ended May 31, 2002 10.00 0.40 0.31 0.71 (0.40) (0.02) (0.42)
Year Ended May 31, 2001 9.60 0.53 0.40 0.93 (0.53) -- (0.53)
C Shares
Year Ended March 31, 2006 10.10 0.23 (0.12) 0.11 (0.32) -- (0.32)
Period Ended March 31, 2005+ 10.18 0.25 (0.07) 0.18 (0.26) -- (0.26)
Year Ended May 31, 2004 10.59 0.17(a) (0.35)(a) (0.18) (0.23) -- (0.23)
Year Ended May 31, 2003 10.31 0.21(a) 0.43(a) 0.64 (0.35) (0.01) (0.36)
Year Ended May 31, 2002 10.02 0.37 0.31 0.68 (0.37) (0.02) (0.39)
Year Ended May 31, 2001 9.62 0.50 0.40 0.90 (0.50) -- (0.50)
MARYLAND MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 10.27 0.38 (0.04) 0.34 (0.38) (0.09) (0.47)
Period Ended March 31, 2005+ 10.27 0.30 0.10 0.40 (0.31) (0.09) (0.40)
Year Ended May 31, 2004 10.94 0.36(a) (0.47)(a) (0.11) (0.36) (0.20) (0.56)
Year Ended May 31, 2003 10.32 0.37 0.63 1.00 (0.37) (0.01) (0.38)
Year Ended May 31, 2002 10.12 0.38 0.20 0.58 (0.38) -- (0.38)
Year Ended May 31, 2001 9.46 0.42 0.66 1.08 (0.42) -- (0.42)
A Shares
Year Ended March 31, 2006(h) 10.32 0.30 (0.07) 0.23 (0.31) (0.09) (0.40)
C Shares
Year Ended March 31, 2006 10.29 0.28 (0.04) 0.24 (0.28) (0.09) (0.37)
Period Ended March 31, 2005+ 10.29 0.21 0.10 0.31 (0.22) (0.09) (0.31)
Year Ended May 31, 2004 10.96 0.26(a) (0.47)(a) (0.21) (0.26) (0.20) (0.46)
Year Ended May 31, 2003 10.34 0.27 0.63 0.90 (0.27) (0.01) (0.28)
Year Ended May 31, 2002 10.14 0.29 0.20 0.49 (0.29) -- (0.29)
Year Ended May 31, 2001 9.48 0.33 0.66 0.99 (0.33) -- (0.33)
NORTH CAROLINA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 9.87 0.31 0.03 0.34 (0.31) -- (0.31)
Period Ended March 31, 2005+ 9.76 0.25 0.14 0.39 (0.25) (0.03) (0.28)
Period Ended May 31, 2004(i) 10.00 0.09 (0.24) (0.15) (0.09) -- (0.09)
A Shares
Year Ended March 31, 2006 9.87 0.37 0.01 0.38 (0.37) -- (0.37)
Period Ended March 31, 2005+(j) 9.97 0.01 (0.10) (0.09) (0.01) -- (0.01)
C Shares
Year Ended March 31, 2006 9.87 0.30 0.02 0.32 (0.30) -- (0.30)
Period Ended March 31, 2005+(j) 9.97 0.01 (0.10) (0.09) (0.01) -- (0.01)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
A Shares
Year Ended March 31, 2006 $ 9.87 1.93% $ 4,398 0.83% 3.21% 0.85% 81%
Period Ended March 31, 2005+ 10.07 2.07 5,854 0.90 3.47 1.00 41
Year Ended May 31, 2004 10.16 (1.36) 9,495 0.96 2.06 1.17 146
Year Ended May 31, 2003 10.57 6.72 13,668 0.96 2.33 1.20 117
Year Ended May 31, 2002 10.29 7.16 1,578 0.96 3.50 2.06 410
Year Ended May 31, 2001 10.00 9.84 849 0.95 5.39 2.28 532
C Shares
Year Ended March 31, 2006 9.89 1.14 20,112 1.50 2.54 1.65 81
Period Ended March 31, 2005+ 10.10 1.81 34,924 1.31 3.04 1.74 41
Year Ended May 31, 2004 10.18 (1.71) 70,000 1.31 1.68 1.82 146
Year Ended May 31, 2003 10.59 6.33 166,211 1.31 1.97 1.80 117
Year Ended May 31, 2002 10.31 6.83 15,930 1.31 2.88 1.98 410
Year Ended May 31, 2001 10.02 9.50 3,452 1.30 4.99 2.60 532
MARYLAND MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 10.14 3.34 32,699 0.66 3.68 0.68 55
Period Ended March 31, 2005+ 10.27 3.87 31,046 0.64 3.49 0.72 30
Year Ended May 31, 2004 10.27 (1.06) 29,735 0.72 3.39 0.80 15
Year Ended May 31, 2003 10.94 9.85 30,501 0.70 3.47 0.78 31
Year Ended May 31, 2002 10.32 5.80 33,668 0.71 3.69 0.78 45
Year Ended May 31, 2001 10.12 11.59 26,526 0.72 4.16 0.82 42
A Shares
Year Ended March 31, 2006(h) 10.15 2.25 502 0.77 3.54 0.78 55
C Shares
Year Ended March 31, 2006 10.16 2.30 9,333 1.67 2.69 1.70 55
Period Ended March 31, 2005+ 10.29 3.03 13,197 1.63 2.50 1.74 30
Year Ended May 31, 2004 10.29 (1.97) 18,897 1.64 2.46 1.82 15
Year Ended May 31, 2003 10.96 8.81 29,556 1.64 2.52 1.81 31
Year Ended May 31, 2002 10.34 4.84 23,215 1.64 2.75 1.83 45
Year Ended May 31, 2001 10.14 10.59 12,090 1.63 3.24 1.97 42
NORTH CAROLINA TAX-EXEMPT BOND FUND
I Shares
Year Ended March 31, 2006 9.90 3.51 41,276 0.68 3.14 0.70 85
Period Ended March 31, 2005+ 9.87 3.97 40,798 0.75 2.78 0.82 32
Period Ended May 31, 2004(i) 9.76 (1.52) 32,757 0.75 2.45 2.30 20
A Shares
Year Ended March 31, 2006 9.88 3.85 110 0.66 2.47 0.67 85
Period Ended March 31, 2005+(j) 9.87 (0.89) -- -- 3.84 -- 32
C Shares
Year Ended March 31, 2006 9.89 3.23 2 1.58 2.18 1.58 85
Period Ended March 31, 2005+(j) 9.87 (0.90) -- -- 3.70 -- 32
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
210
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
SEIX FLOATING RATE HIGH INCOME FUND
I Shares
Period Ended March 31, 2006 $10.00 $ 0.04 $(0.04) $ -- $(0.04) $ -- $(0.04)
SEIX HIGH YIELD FUND
I Shares
Year Ended March 31, 2006 10.94 0.68 (0.10) 0.58 (0.68) (0.15) (0.83)
Period Ended March 31, 2005 11.42 0.29 (0.35) (0.06) (0.29) (0.13) (0.42)
Year Ended October 31, 2004++ 11.09 0.72 0.35 1.07 (0.72) (0.02) (0.74)
Year Ended October 31, 2003 10.17 0.68 0.92 1.60 (0.68) -- (0.68)
Year Ended October 31, 2002 10.40 0.63 (0.20) 0.43 (0.63) (0.03) (0.66)
Period Ended October 31,
2001(k) 10.00 0.64 0.36 1.00 (0.60) -- (0.60)
A Shares
Year Ended March 31, 2006 10.70 0.65 (0.10) 0.55 (0.65) (0.15) (0.80)
Period Ended March 31, 2005 11.18 0.28 (0.35) (0.07) (0.28) (0.13) (0.41)
Year Ended October 31, 2004++ 10.75 0.56 0.45 1.01 (0.56) (0.02) (0.58)
Year Ended October 31, 2003 9.78 0.68 0.82 1.50 (0.53) -- (0.53)
Period Ended October 31,
2002(l) 10.00 0.54 (0.22) 0.32 (0.51) (0.03) (0.54)
C Shares
Year Ended March 31, 2006 10.93 0.58 (0.10) 0.48 (0.58) (0.15) (0.73)
Period Ended March 31, 2005 11.42 0.26 (0.36) (0.10) (0.26) (0.13) (0.39)
Period Ended October 31,
2004++(c) 11.32 0.04 0.10 0.14 (0.04) -- (0.04)
SHORT-TERM BOND FUND
I Shares
Year Ended March 31, 2006 9.73 0.32 (0.01) 0.31 (0.33) -- (0.33)
Period Ended March 31, 2005+ 9.84 0.20 (0.11) 0.09 (0.20) -- (0.20)
Year Ended May 31, 2004 10.04 0.24(a) (0.19)(a) 0.05 (0.25) -- (0.25)
Year Ended May 31, 2003 10.01 0.33 0.03 0.36 (0.33) -- (0.33)
Year Ended May 31, 2002 10.04 0.46 (0.03) 0.43 (0.46) -- (0.46)
Year Ended May 31, 2001 9.65 0.56 0.39 0.95 (0.56) -- (0.56)
A Shares
Year Ended March 31, 2006 9.75 0.30 (0.01) 0.29 (0.31) -- (0.31)
Period Ended March 31, 2005+ 9.87 0.19 (0.12) 0.07 (0.19) -- (0.19)
Year Ended May 31, 2004 10.07 0.22(a) (0.20)(a) 0.02 (0.22) -- (0.22)
Year Ended May 31, 2003 10.04 0.31 0.03 0.34 (0.31) -- (0.31)
Year Ended May 31, 2002 10.06 0.44 (0.02) 0.42 (0.44) -- (0.44)
Year Ended May 31, 2001 9.67 0.54 0.39 0.93 (0.54) -- (0.54)
C Shares
Year Ended March 31, 2006 9.75 0.24 (0.01) 0.23 (0.25) -- (0.25)
Period Ended March 31, 2005+ 9.86 0.16 (0.11) 0.05 (0.16) -- (0.16)
Year Ended May 31, 2004 10.06 0.19(a) (0.20)(a) (0.01) (0.19) -- (0.19)
Year Ended May 31, 2003 10.03 0.28 0.03 0.31 (0.28) -- (0.28)
Year Ended May 31, 2002 10.06 0.40 (0.03) 0.37 (0.40) -- (0.40)
Year Ended May 31, 2001 9.67 0.52 0.39 0.91 (0.52) -- (0.52)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate(+)
--------- --------- ------------ --------- ---------- --------------- ---------
SEIX FLOATING RATE HIGH INCOME FUND
I Shares
Period Ended March 31, 2006 $ 9.96 0.02% $106,405 0.56% 5.24% 0.80% 9%
SEIX HIGH YIELD FUND
I Shares
Year Ended March 31, 2006 10.69 5.37 1,217,679 0.49 6.20 0.50 95
Period Ended March 31, 2005 10.94 (0.53) 1,391,879 0.51 6.22 0.57 42
Year Ended October 31, 2004++ 11.42 9.97 1,689,327 0.55 6.48 0.64 73
Year Ended October 31, 2003 11.09 16.10 1,057,993 0.55 6.67 0.67 108
Year Ended October 31, 2002 10.17 4.21 82,017 0.55 6.80 1.07 97
Period Ended October 31,
2001(k) 10.40 10.14 4,641 0.55 7.33 3.98 466
A Shares
Year Ended March 31, 2006 10.45 5.22 36,291 0.73 5.94 0.73 95
Period Ended March 31, 2005 10.70 (0.64) 9,706 0.78 6.12 0.85 42
Year Ended October 31, 2004++ 11.18 9.73 15,975 0.80 6.22 0.88 73
Year Ended October 31, 2003 10.75 15.72 14,992 0.90 6.45 0.93 108
Period Ended October 31,
2002(l) 9.78 3.29 9,877 0.89 6.53 1.20 97
C Shares
Year Ended March 31, 2006 10.68 4.45 5,814 1.39 5.25 1.48 95
Period Ended March 31, 2005 10.93 (0.89) 3,260 1.14 5.46 1.54 42
Period Ended October 31,
2004++(c) 11.42 1.20 1 1.18 6.29 1.41 73
SHORT-TERM BOND FUND
I Shares
Year Ended March 31, 2006 9.71 3.24 281,282 0.55 3.32 0.57 94
Period Ended March 31, 2005+ 9.73 0.96 288,502 0.66 2.48 0.71 64
Year Ended May 31, 2004 9.84 0.45 282,188 0.70 2.42 0.75 66
Year Ended May 31, 2003 10.04 3.70 302,708 0.70 3.34 0.75 89
Year Ended May 31, 2002 10.01 4.29 305,884 0.70 4.48 0.75 142
Year Ended May 31, 2001 10.04 10.13 215,458 0.70 5.71 0.76 87
A Shares
Year Ended March 31, 2006 9.73 3.01 5,062 0.77 3.09 0.79 94
Period Ended March 31, 2005+ 9.75 0.67 5,783 0.89 2.26 1.00 64
Year Ended May 31, 2004 9.87 0.24 5,880 0.91 2.21 1.21 66
Year Ended May 31, 2003 10.07 3.47 5,685 0.91 3.09 1.28 89
Year Ended May 31, 2002 10.04 4.19 5,767 0.91 4.28 1.26 142
Year Ended May 31, 2001 10.06 9.90 4,176 0.90 5.47 1.71 87
C Shares
Year Ended March 31, 2006 9.73 2.34 9,559 1.42 2.44 1.59 94
Period Ended March 31, 2005+ 9.75 0.46 15,114 1.26 1.88 1.74 64
Year Ended May 31, 2004 9.86 (0.11) 23,528 1.26 1.87 1.87 66
Year Ended May 31, 2003 10.06 3.11 32,608 1.26 2.74 1.85 89
Year Ended May 31, 2002 10.03 3.75 26,392 1.26 3.89 1.87 142
Year Ended May 31, 2001 10.06 9.60 10,682 1.25 5.09 2.17 87
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
211
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and
Unrealized Dividends Distributions
Net Asset Gains from from Total
Value, Net (Losses) on Net Realized Dividends
Beginning Investment Investments Total From Investment Capital and
of Period(1) Income and Options Operations Income Gains Distributions
------------ ---------- ----------- ---------- ---------- ------------- -------------
SHORT-TERM U.S. TREASURY SECURITIES FUND
I Shares
Year Ended March 31, 2006 $ 9.91 $ 0.28 $(0.11) $ 0.17 $(0.28) $ -- $(0.28)
Period Ended March 31, 2005+ 10.11 0.14 (0.11) 0.03 (0.14) (0.09) (0.23)
Year Ended May 31, 2004 10.36 0.14(a) (0.13)(a) 0.01 (0.14) (0.12) (0.26)
Year Ended May 31, 2003 10.20 0.22 0.22 0.44 (0.22) (0.06) (0.28)
Year Ended May 31, 2002 10.13 0.37 0.10 0.47 (0.37) (0.03) (0.40)
Year Ended May 31, 2001 9.85 0.49 0.28 0.77 (0.49) -- (0.49)
A Shares
Year Ended March 31, 2006 9.90 0.26 (0.11) 0.15 (0.26) -- (0.26)
Period Ended March 31, 2005+ 10.10 0.13 (0.11) 0.02 (0.13) (0.09) (0.22)
Year Ended May 31, 2004 10.35 0.12(a) (0.13)(a) (0.01) (0.12) (0.12) (0.24)
Year Ended May 31, 2003 10.19 0.20 0.22 0.42 (0.20) (0.06) (0.26)
Year Ended May 31, 2002 10.13 0.35 0.09 0.44 (0.35) (0.03) (0.38)
Year Ended May 31, 2001 9.85 0.48 0.28 0.76 (0.48) -- (0.48)
C Shares
Year Ended March 31, 2006 9.89 0.20 (0.11) 0.09 (0.20) -- (0.20)
Period Ended March 31, 2005+ 10.09 0.10 (0.11) (0.01) (0.10) (0.09) (0.19)
Year Ended May 31, 2004 10.34 0.10(a) (0.13)(a) (0.03) (0.10) (0.12) (0.22)
Year Ended May 31, 2003 10.18 0.17 0.22 0.39 (0.17) (0.06) (0.23)
Year Ended May 31, 2002 10.11 0.33 0.10 0.43 (0.33) (0.03) (0.36)
Year Ended May 31, 2001 9.83 0.46 0.28 0.74 (0.46) -- (0.46)
STRATEGIC INCOME FUND
I Shares
Year Ended March 31, 2006 10.24 0.43(a) (0.41)(a) 0.02 (0.44) (0.18) (0.62)
Period Ended March 31, 2005+ 9.81 0.39(a) 0.49(a) 0.88 (0.39) (0.06) (0.45)
Year Ended May 31, 2004 9.99 0.55(a) (0.14)(a) 0.41 (0.53) (0.06) (0.59)
Year Ended May 31, 2003 9.80 0.61 0.20 0.81 (0.62) -- (0.62)
Period Ended May 31, 2002(m) 10.00 0.27 (0.20) 0.07 (0.27) -- (0.27)
A Shares
Year Ended March 31, 2006 10.27 0.41(a) (0.41)(a) -- (0.41) (0.18) (0.59)
Period Ended March 31, 2005+ 9.82 0.39(a) 0.49(a) 0.88 (0.37) (0.06) (0.43)
Period Ended May 31, 2004(n) 9.93 0.33(a) (0.07)(a) 0.26 (0.31) (0.06) (0.37)
C Shares
Year Ended March 31, 2006 10.24 0.35(a) (0.41)(a) (0.06) (0.35) (0.18) (0.53)
Period Ended March 31, 2005+ 9.81 0.37(a) 0.46(a) 0.83 (0.34) (0.06) (0.40)
Year Ended May 31, 2004 9.99 0.50(a) (0.14)(a) 0.36 (0.48) (0.06) (0.54)
Year Ended May 31, 2003 9.80 0.57 0.19 0.76 (0.57) -- (0.57)
Period Ended May 31, 2002(m) 10.00 0.25 (0.20) 0.05 (0.25) -- (0.25)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
SHORT-TERM U.S. TREASURY SECURITIES FUND
I Shares
Year Ended March 31, 2006 $ 9.80 1.70% $ 54,991 0.58% 2.79% 0.63% 151%
Period Ended March 31, 2005+ 9.91 0.35 69,935 0.65 1.68 0.71 82
Year Ended May 31, 2004 10.11 0.11 92,371 0.70 1.36 0.76 131
Year Ended May 31, 2003 10.36 4.31 121,617 0.69 2.07 0.75 140
Year Ended May 31, 2002 10.20 4.69 107,169 0.70 3.57 0.76 117
Year Ended May 31, 2001 10.13 8.02 88,398 0.71 4.95 0.78 87
A Shares
Year Ended March 31, 2006 9.79 1.52 4,336 0.76 2.60 0.82 151
Period Ended March 31, 2005+ 9.90 0.21 6,349 0.84 1.47 0.95 82
Year Ended May 31, 2004 10.10 (0.06) 12,823 0.86 1.20 1.06 131
Year Ended May 31, 2003 10.35 4.13 15,558 0.86 1.76 1.07 140
Year Ended May 31, 2002 10.19 4.44 4,735 0.86 3.36 1.41 117
Year Ended May 31, 2001 10.13 7.87 2,179 0.85 4.81 1.56 87
C Shares
Year Ended March 31, 2006 9.78 0.88 19,958 1.39 1.99 1.65 151
Period Ended March 31, 2005+ 9.89 (0.03) 33,796 1.12 1.22 1.74 82
Year Ended May 31, 2004 10.09 (0.30) 62,232 1.11 0.97 1.82 131
Year Ended May 31, 2003 10.34 3.88 127,757 1.11 1.59 1.79 140
Year Ended May 31, 2002 10.18 4.29 70,720 1.11 3.09 1.81 117
Year Ended May 31, 2001 10.11 7.67 27,861 1.10 4.45 1.96 87
STRATEGIC INCOME FUND
I Shares
Year Ended March 31, 2006 9.64 0.19 243,102 0.76 4.35 0.79 317
Period Ended March 31, 2005+ 10.24 9.10 196,921 0.86 4.55 0.96 305
Year Ended May 31, 2004 9.81 4.15 98,570 0.90 5.53 1.00 95
Year Ended May 31, 2003 9.99 8.73 61,906 0.91 6.39 1.01 52
Period Ended May 31, 2002(m) 9.80 0.74 43,717 0.94 6.07 1.04 43
A Shares
Year Ended March 31, 2006 9.68 (0.01) 1,741 1.10 4.08 1.16 317
Period Ended March 31, 2005+ 10.27 9.04 3,795 1.15 4.59 1.37 305
Period Ended May 31, 2004(n) 9.82 2.59 4,181 1.15 5.15 1.60 95
C Shares
Year Ended March 31, 2006 9.65 (0.57) 46,703 1.63 3.53 1.83 317
Period Ended March 31, 2005+ 10.24 8.60 79,792 1.42 4.34 1.98 305
Year Ended May 31, 2004 9.81 3.59 117,216 1.43 4.98 2.03 95
Year Ended May 31, 2003 9.99 8.16 129,965 1.43 5.67 2.04 52
Period Ended May 31, 2002(m) 9.80 0.55 39,490 1.53 5.49 2.07 43
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
212
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
------------ ---------- ----------- ---------- ---------- ------------- -------------
TOTAL RETURN BOND FUND
I Shares
Year Ended March 31, 2006 $ 9.97 $ 0.38 $(0.25) $ 0.13 $(0.40) $ -- $(0.40)
Period Ended March 31, 2005+ 9.81 0.31 0.16 0.47 (0.31) -- (0.31)
Period Ended May 31, 2004(o) 10.00 0.19(a) (0.18)(a) 0.01 (0.20) -- (0.20)
U.S. GOVERNMENT SECURITIES FUND
I Shares
Year Ended March 31, 2006 10.42 0.37 (0.20) 0.17 (0.40) -- (0.40)
Period Ended March 31, 2005+ 10.35 0.29 0.09 0.38 (0.31) -- (0.31)
Year Ended May 31, 2004 10.93 0.31(a) (0.50)(a) (0.19) (0.35) (0.04) (0.39)
Year Ended May 31, 2003 10.47 0.44 0.51 0.95 (0.46) (0.03) (0.49)
Year Ended May 31, 2002 10.38 0.54 0.26 0.80 (0.54) (0.17) (0.71)
Year Ended May 31, 2001 9.86 0.58 0.52 1.10 (0.58) -- (0.58)
A Shares
Year Ended March 31, 2006 10.41 0.32 (0.17) 0.15 (0.37) -- (0.37)
Period Ended March 31, 2005+ 10.35 0.26 0.08 0.34 (0.28) -- (0.28)
Year Ended May 31, 2004 10.93 0.27(a) (0.50)(a) (0.23) (0.31) (0.04) (0.35)
Year Ended May 31, 2003 10.47 0.40 0.51 0.91 (0.42) (0.03) (0.45)
Year Ended May 31, 2002 10.38 0.50 0.26 0.76 (0.50) (0.17) (0.67)
Year Ended May 31, 2001 9.86 0.54 0.52 1.06 (0.54) -- (0.54)
C Shares
Year Ended March 31, 2006 10.41 0.27 (0.19) 0.08 (0.30) -- (0.30)
Period Ended March 31, 2005+ 10.35 0.21 0.08 0.29 (0.23) -- (0.23)
Year Ended May 31, 2004 10.93 0.22(a) (0.50)(a) (0.28) (0.26) (0.04) (0.30)
Year Ended May 31, 2003 10.48 0.34 0.50 0.84 (0.36) (0.03) (0.39)
Year Ended May 31, 2002 10.38 0.45 0.27 0.72 (0.45) (0.17) (0.62)
Year Ended May 31, 2001 9.86 0.49 0.52 1.01 (0.49) -- (0.49)
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND(1)
I Shares
Year Ended March 31, 2006 9.90 0.36 (0.06) 0.30 (0.35) -- (0.35)
Period Ended March 31, 2005+ 9.95 0.20 (0.05) 0.15 (0.20) -- (0.20)
Year Ended May 31, 2004 10.00 0.15(a) (0.05)(a) 0.10 (0.15) -- (0.15)
Year Ended May 31, 2003 9.95 0.20 0.06 0.26 (0.20) (0.01) (0.21)
Period Ended May 31, 2002(p) 9.95 0.05 -- 0.05 (0.05) -- (0.05)
ULTRA-SHORT BOND FUND(1)
I Shares
Year Ended March 31, 2006 10.00 0.36 (0.04) 0.32 (0.36) -- (0.36)
Period Ended March 31, 2005+ 10.05 0.15 (0.05) 0.10 (0.15) -- (0.15)
Year Ended May 31, 2004 10.10 0.15(a) (0.05)(a) 0.10 (0.15) -- (0.15)
Year Ended May 31, 2003 10.00 0.20 0.10 0.30 (0.20) --* (0.20)
Period Ended May 31, 2002(q) 10.00 0.05 -- 0.05 (0.05) -- (0.05)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
TOTAL RETURN BOND FUND
I Shares
Year Ended March 31, 2006 $ 9.70 1.31% $ 61,966 0.52% 3.88% 0.55% 231%
Period Ended March 31, 2005+ 9.97 4.86 57,761 0.58 3.42 0.74 308
Period Ended May 31, 2004(o) 9.81 0.03 15,553 0.56 3.05 0.90 121
U.S. GOVERNMENT SECURITIES FUND
I Shares
Year Ended March 31, 2006 10.19 1.66 316,475 0.65 3.63 0.65 118
Period Ended March 31, 2005+ 10.42 3.74 319,058 0.77 3.41 0.80 64
Year Ended May 31, 2004 10.35 (1.77) 298,997 0.81 2.95 0.84 240
Year Ended May 31, 2003 10.93 9.25 258,585 0.81 4.00 0.84 150
Year Ended May 31, 2002 10.47 7.90 168,609 0.82 5.09 0.85 262
Year Ended May 31, 2001 10.38 11.41 148,666 0.81 5.66 0.85 207
A Shares
Year Ended March 31, 2006 10.19 1.43 3,032 0.99 3.31 0.99 118
Period Ended March 31, 2005+ 10.41 3.32 3,080 1.17 3.17 1.28 64
Year Ended May 31, 2004 10.35 (2.17) 8,484 1.22 2.54 1.52 240
Year Ended May 31, 2003 10.93 8.79 9,333 1.22 3.59 1.45 150
Year Ended May 31, 2002 10.47 7.47 8,483 1.22 4.70 1.40 262
Year Ended May 31, 2001 10.38 10.95 6,617 1.21 5.21 1.83 207
C Shares
Year Ended March 31, 2006 10.19 0.76 7,909 1.66 2.60 1.68 118
Period Ended March 31, 2005+ 10.41 2.83 12,229 1.74 2.50 1.85 64
Year Ended May 31, 2004 10.35 (2.67) 18,993 1.73 2.04 1.97 240
Year Ended May 31, 2003 10.93 8.14 39,423 1.73 3.10 1.93 150
Year Ended May 31, 2002 10.48 7.06 31,922 1.73 4.17 1.93 262
Year Ended May 31, 2001 10.38 10.45 21,617 1.72 4.71 2.04 207
U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND(1)
I Shares
Year Ended March 31, 2006 9.85 3.12 42,616 0.29 3.41 0.47 126
Period Ended March 31, 2005+ 9.90 1.36 49,623 0.18 2.02 0.71 42
Year Ended May 31, 2004 9.95 1.01 77,360 0.24 1.25 0.77 109
Year Ended May 31, 2003 10.00 2.80 95,277 0.23 1.76 0.76 87
Period Ended May 31, 2002(p) 9.95 0.32 28,138 0.30 2.42 0.83 34
ULTRA-SHORT BOND FUND(1)
I Shares
Year Ended March 31, 2006 9.96 3.23 245,257 0.30 3.61 0.37 114
Period Ended March 31, 2005+ 10.00 1.22 74,259 0.31 1.89 0.81 44
Year Ended May 31, 2004 10.05 1.01 112,453 0.31 1.50 0.86 83
Year Ended May 31, 2003 10.10 3.16 146,590 0.31 1.84 0.86 56
Period Ended May 31, 2002(q) 10.00 0.30 33,730 0.36 2.44 0.91 30
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
213
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized
and Dividends Distributions
Net Asset Unrealized from from Total
Value, Net Gains Net Realized Dividends
Beginning Investment (Losses) on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 $10.11 $ 0.34 $(0.03) $ 0.31 $(0.34) $(0.07) $(0.41)
Period Ended March 31, 2005+ 10.15 0.28 0.05 0.33 (0.28) (0.09) (0.37)
Year Ended May 31, 2004 10.68 0.34(a) (0.44)(a) (0.10) (0.34) (0.09) (0.43)
Year Ended May 31, 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46)
Year Ended May 31, 2002 10.14 0.40 0.15 0.55 (0.40) -- (0.40)
Year Ended May 31, 2001 9.58 0.42 0.56 0.98 (0.42) -- (0.42)
A Shares
Year Ended March 31, 2006 10.11 0.33 (0.03) 0.30 (0.33) (0.07) (0.40)
Period Ended March 31, 2005+ 10.15 0.27 0.05 0.32 (0.27) (0.09) (0.36)
Year Ended May 31, 2004 10.68 0.33(a) (0.44)(a) (0.11) (0.33) (0.09) (0.42)
Year Ended May 31, 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46)
Year Ended May 31, 2002 10.14 0.39 0.16 0.55 (0.40) -- (0.40)
Year Ended May 31, 2001 9.59 0.42 0.55 0.97 (0.42) -- (0.42)
C Shares
Period Ended March 31, 2006(r) 10.27 0.14 (0.19) (0.05) (0.14) (0.07) (0.21)
VIRGINIA MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 10.35 0.37 (0.03) 0.34 (0.37) (0.10) (0.47)
Period Ended March 31, 2005+ 10.37 0.31 0.14 0.45 (0.31) (0.16) (0.47)
Year Ended May 31, 2004 11.07 0.37(a) (0.47)(a) (0.10) (0.37) (0.23) (0.60)
Year Ended May 31, 2003 10.48 0.39 0.62 1.01 (0.39) (0.03) (0.42)
Year Ended May 31, 2002 10.29 0.41 0.19 0.60 (0.41) -- (0.41)
Year Ended May 31, 2001 9.64 0.45 0.65 1.10 (0.45) -- (0.45)
A Shares
Year Ended March 31, 2006 10.34 0.35 (0.03) 0.32 (0.36) (0.10) (0.46)
Period Ended March 31, 2005+ 10.37 0.30 0.13 0.43 (0.30) (0.16) (0.46)
Period Ended May 31, 2004(s) 10.28 0.02(a) 0.09(a) 0.11 (0.02) -- (0.02)
C Shares
Year Ended March 31, 2006 10.40 0.27 (0.04) 0.23 (0.27) (0.10) (0.37)
Period Ended March 31, 2005+ 10.42 0.23 0.14 0.37 (0.23) (0.16) (0.39)
Year Ended May 31, 2004 11.13 0.27(a) (0.48)(a) (0.21) (0.27) (0.23) (0.50)
Year Ended May 31, 2003 10.53 0.29 0.63 0.92 (0.29) (0.03) (0.32)
Year Ended May 31, 2002 10.34 0.31 0.19 0.50 (0.31) -- (0.31)
Year Ended May 31, 2001 9.68 0.35 0.66 1.01 (0.35) -- (0.35)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements Portfolio
End of Total End of Net Net and Expense Turnover
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate
--------- --------- ------------ --------- ---------- --------------- ---------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 $10.01 3.05% $169,743 0.65% 3.33% 0.66% 54%
Period Ended March 31, 2005+ 10.11 3.21 176,959 0.71 3.23 0.71 46
Year Ended May 31, 2004 10.15 (1.00) 181,558 0.75 3.23 0.75 26
Year Ended May 31, 2003 10.68 8.43 206,432 0.75 3.45 0.75 30
Year Ended May 31, 2002 10.29 5.52 191,406 0.75 3.86 0.75 33
Year Ended May 31, 2001 10.14 10.39 194,849 0.73 4.23 0.75 32
A Shares
Year Ended March 31, 2006 10.01 2.92 5,480 0.79 3.22 0.82 54
Period Ended March 31, 2005+ 10.11 3.14 7,143 0.80 3.16 0.90 46
Year Ended May 31, 2004 10.15 (1.04) 10,566 0.79 3.19 1.04 26
Year Ended May 31, 2003 10.68 8.38 10,484 0.79 3.40 1.07 30
Year Ended May 31, 2002 10.29 5.47 7,257 0.79 3.82 1.11 33
Year Ended May 31, 2001 10.14 10.23 6,197 0.76 4.20 1.11 32
C Shares
Period Ended March 31, 2006(r) 10.01 (0.52) 9 1.62 2.35 1.62 54
VIRGINIA MUNICIPAL BOND FUND
I Shares
Year Ended March 31, 2006 10.22 3.36 51,548 0.68 3.56 0.70 69
Period Ended March 31, 2005+ 10.35 4.41 48,027 0.72 3.59 0.72 39
Year Ended May 31, 2004 10.37 (0.90) 43,491 0.77 3.47 0.77 33
Year Ended May 31, 2003 11.07 9.86 48,102 0.77 3.67 0.77 18
Year Ended May 31, 2002 10.48 5.90 56,586 0.77 3.90 0.77 38
Year Ended May 31, 2001 10.29 11.51 56,573 0.77 4.40 0.78 60
A Shares
Year Ended March 31, 2006 10.20 3.11 63 0.86 3.55 0.89 69
Period Ended March 31, 2005+ 10.34 4.19 179 0.88 3.50 2.84 39
Period Ended May 31, 2004(s) 10.37 1.07 129 0.93 3.95 71.10(4) 33
C Shares
Year Ended March 31, 2006 10.26 2.23 4,489 1.69 2.56 1.72 69
Period Ended March 31, 2005+ 10.40 3.54 6,534 1.70 2.59 1.75 39
Year Ended May 31, 2004 10.42 (1.90) 9,723 1.70 2.54 1.86 33
Year Ended May 31, 2003 11.13 8.89 16,956 1.70 2.71 1.85 18
Year Ended May 31, 2002 10.53 4.93 13,428 1.70 2.97 1.88 38
Year Ended May 31, 2001 10.34 10.58 7,983 1.69 3.47 2.00 60
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
214
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized Dividends Distributions
Net Asset and from from Total
Value, Net Unrealized Net Realized Dividends
Beginning Investment Gains on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
PRIME QUALITY MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 $0.03 $ -- $0.03 $(0.03) $ -- $(0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) -- (0.06)
A Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05)
C Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05)
TAX-EXEMPT MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03)
A Shares
Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements
End of Total End of Net Net and Expense
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3)
--------- --------- ------------ --------- ---------- ---------------
PRIME QUALITY MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 3.25% $2,976,881 0.58% 3.19% 0.61%
Period Ended March 31, 2005 1.00 1.13 3,173,794 0.60 1.34 0.71
Year Ended May 31, 2004 1.00 0.52 3,477,598 0.63 0.52 0.74
Year Ended May 31, 2003 1.00 1.17 4,284,266 0.63 1.14 0.74
Year Ended May 31, 2002 1.00 2.29 3,907,203 0.63 2.22 0.74
Year Ended May 31, 2001 1.00 5.75 3,728,371 0.63 5.57 0.75
A Shares
Year Ended March 31, 2006 1.00 3.08 4,011,561 0.74 3.16 0.76
Period Ended March 31, 2005 1.00 0.96 2,124,606 0.80 1.17 0.91
Year Ended May 31, 2004 1.00 0.34 1,851,615 0.81 0.34 0.95
Year Ended May 31, 2003 1.00 0.98 1,925,521 0.81 0.96 0.94
Year Ended May 31, 2002 1.00 2.11 1,887,033 0.81 2.09 0.94
Year Ended May 31, 2001 1.00 5.57 1,927,309 0.80 5.36 0.95
C Shares
Year Ended March 31, 2006 1.00 3.01 3,991 0.82 2.81 1.10
Period Ended March 31, 2005 1.00 0.94 10,093 0.83 0.99 1.48
Year Ended May 31, 2004 1.00 0.22 25,444 0.93 0.21 1.59
Year Ended May 31, 2003 1.00 0.54 14,633 1.25 0.53 1.62
Year Ended May 31, 2002 1.00 1.36 12,302 1.54 1.04 1.70
Year Ended May 31, 2001 1.00 4.75 4,051 1.53 4.54 1.92
TAX-EXEMPT MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 1.00 2.27 1,172,717 0.50 2.25 0.53
Period Ended March 31, 2005 1.00 0.90 936,272 0.51 1.04 0.61
Year Ended May 31, 2004 1.00 0.48 978,548 0.55 0.46 0.64
Year Ended May 31, 2003 1.00 0.81 1,088,415 0.54 0.79 0.64
Year Ended May 31, 2002 1.00 1.38 907,827 0.55 1.39 0.65
Year Ended May 31, 2001 1.00 3.47 1,080,362 0.54 3.40 0.65
A Shares
Year Ended March 31, 2006 1.00 2.12 671,164 0.65 2.10 0.68
Period Ended March 31, 2005 1.00 0.78 402,333 0.65 0.92 0.75
Year Ended May 31, 2004 1.00 0.35 274,543 0.67 0.34 0.80
Year Ended May 31, 2003 1.00 0.68 239,451 0.67 0.67 0.79
Year Ended May 31, 2002 1.00 1.26 218,048 0.67 1.25 0.80
Year Ended May 31, 2001 1.00 3.35 256,894 0.67 3.22 0.80
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
215
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized Dividends Distributions
Net Asset and from from Total
Value, Net Unrealized Net Realized Dividends
Beginning Investment Gains on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 $0.03 $ -- $0.03 $(0.03) $ -- $(0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* -- --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05)
A Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* -- --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05)
U.S. TREASURY MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05)
A Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Period Ended May 31, 2004(t) 1.00 -- -- -- --* --* --*
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements
End of Total End of Net Net and Expense
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3)
--------- --------- ------------ --------- ---------- ---------------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 3.07% $ 413,893 0.62% 2.99% 0.65%
Period Ended March 31, 2005 1.00 1.03 517,253 0.62 1.24 0.71
Year Ended May 31, 2004 1.00 0.43 615,324 0.66 0.43 0.75
Year Ended May 31, 2003 1.00 1.01 992,560 0.65 1.00 0.74
Year Ended May 31, 2002 1.00 2.25 997,759 0.66 2.17 0.75
Year Ended May 31, 2001 1.00 5.56 805,285 0.65 5.29 0.75
A Shares
Year Ended March 31, 2006 1.00 2.91 253,648 0.77 2.91 0.80
Period Ended March 31, 2005 1.00 0.89 230,041 0.78 1.06 0.88
Year Ended May 31, 2004 1.00 0.28 234,100 0.80 0.28 0.92
Year Ended May 31, 2003 1.00 0.86 250,246 0.80 0.86 0.92
Year Ended May 31, 2002 1.00 2.11 210,004 0.80 2.02 0.92
Year Ended May 31, 2001 1.00 5.41 158,087 0.79 5.14 0.93
U.S. TREASURY MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 1.00 2.99 1,650,172 0.60 2.98 0.63
Period Ended March 31, 2005 1.00 0.99 1,407,783 0.62 1.19 0.71
Year Ended May 31, 2004 1.00 0.37 1,233,565 0.66 0.32 0.75
Year Ended May 31, 2003 1.00 0.88 1,080,779 0.65 0.81 0.74
Year Ended May 31, 2002 1.00 1.96 871,946 0.65 1.90 0.74
Year Ended May 31, 2001 1.00 5.36 733,768 0.66 5.23 0.76
A Shares
Year Ended March 31, 2006 1.00 2.84 12,366 0.75 3.12 0.76
Period Ended March 31, 2005 1.00 0.88 303 0.75 0.97 1.48
Period Ended May 31, 2004(t) 1.00 0.15 401 0.75 0.21 3.17(4)
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
216
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized Dividends Distributions
Net Asset and from from Total
Value, Net Unrealized Net Realized Dividends
Beginning Investment Gains on Total From Investment Capital and
of Period Income Investments Operations Income Gains Distributions
--------- ---------- ----------- ---------- ---------- ------------- -------------
VIRGINIA TAX-FREE MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 $0.02 $ -- $0.02 $(0.02) $ --* $(0.02)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03)
A Shares
Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02)
Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2004 1.00 -- -- -- --* --* --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03)
<Caption>
Ratio of
Expenses to
Ratio of Ratio of Average
Net Net Net Assets
Net Expenses Investment (Excluding
Asset to Income to Waivers,
Value, Net Assets, Average Average Reimbursements
End of Total End of Net Net and Expense
Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3)
--------- --------- ------------ --------- ---------- ---------------
VIRGINIA TAX-FREE MONEY MARKET FUND
I Shares
Year Ended March 31, 2006 $1.00 2.33% $ 226,319 0.46% 2.28% 0.46%
Period Ended March 31, 2005 1.00 0.94 177,377 0.46 1.07 0.46
Year Ended May 31, 2004 1.00 0.56 173,959 0.50 0.51 0.50
Year Ended May 31, 2003 1.00 0.85 219,701 0.49 0.84 0.49
Year Ended May 31, 2002 1.00 1.44 240,681 0.50 1.45 0.50
Year Ended May 31, 2001 1.00 3.51 226,188 0.50 3.45 0.50
A Shares
Year Ended March 31, 2006 1.00 2.16 303,752 0.62 2.12 0.68
Period Ended March 31, 2005 1.00 0.77 197,380 0.66 0.92 0.86
Year Ended May 31, 2004 1.00 0.38 118,339 0.67 0.34 0.90
Year Ended May 31, 2003 1.00 0.67 96,325 0.67 0.66 0.90
Year Ended May 31, 2002 1.00 1.27 99,141 0.67 1.22 0.90
Year Ended May 31, 2001 1.00 3.35 93,004 0.66 3.28 0.91
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
217
NOTES TO FINANCIAL HIGHLIGHTS
* Amount less than $0.005.
(+) Not annualized for periods less than one year.
(1) Financial Highlights per share amounts for the U.S. Government Securities
Ultra-Short Bond Fund and the Ultra-Short Bond Fund have been restated for a
4.974874:1 reverse stock split and 5:1 reverse stock split, respectively,
which occurred on April 1, 2005, for the periods ended March 31, 2005, May
31, 2004, May 31, 2003 and May 31, 2002. (See Note 1.)
(2) Total return excludes sales charge. Not annualized for periods less than one
year.
(3) Annualized for periods less than one year.
(4) Ratio reflects the impact of the initial low level of average net assets
associated with commencement of operations.
(a) Per share data was calculated using the average shares method.
(b) Commenced operations on January 25, 2002.
(c) Commenced operations on October 11, 2004.
(d) Commenced operations on October 3, 2001.
(e) Commenced operations on October 27, 2003.
(f) Commenced operations on October 25, 2002.
(g) Amounts are not meaningful due to the short period of operations.
(h) Commenced operations on April 13, 2005.
(i) Commenced operations on January 8, 2004.
(j) Commenced operations on March 21, 2005.
(k) Commenced operations on December 29, 2000.
(l) Commenced operations on December 21, 2001.
(m) Commenced operations on November 30, 2001.
(n) Commenced operations on October 8, 2003.
(o) Commenced operations on October 15, 2003.
(p) Commenced operations on April 11, 2002.
(q) Commenced operations on April 15, 2002.
(r) Commenced operations on September 1, 2005.
(s) Commenced operations on May 11, 2004.
(t) Commenced operations on November 12, 2003.
+ Effective June 1, 2004, the Funds adopted a change in the amortization and
accretion methodology on fixed income securities. The cumulative effect of
this change in methodology was immaterial to all Funds except for the Funds
noted below:
<Table>
<Caption>
Change to Ratio of Net
Change to Net Investment Income to Average
Change to Net Realized and Net Assets
Investment Unrealized Gains ------------------------------
Income Per Share (Losses) Per Share I Shares A Shares C Shares
---------------- ------------------ -------- -------- --------
Georgia Tax-Exempt Bond Fund $ 0.01 $(0.01) 0.16% 0.14% 0.14%
High Quality Bond Fund 0.01 (0.01) 0.11%
Investment Grade Bond Fund 0.01 (0.01) 0.18% 0.14% 0.14%
Investment Grade Tax-Exempt Bond Fund (0.01) 0.01 (0.08)% (0.07)% (0.06)%
Limited-Term Federal Mortgage Securities Fund 0.04 (0.04) 0.47% 0.42% 0.36%
Maryland Municipal Bond Fund (0.01) 0.01 (0.07)% (0.06)%
North Carolina Tax-Exempt Bond Fund (0.02) 0.02 (0.20)% -- --
Short-Term Bond Fund 0.01 (0.01) 0.08% 0.07% 0.06%
Strategic Income Fund 0.01 (0.01) 0.22% 0.14% 0.13%
Total Return Bond Fund 0.01 (0.01) 0.20%
U.S. Government Securities Fund 0.02 (0.02) 0.23% 0.11% 0.17%
U.S. Government Securities Ultra-Short Bond Fund(1) 0.05 (0.05) 0.24%
</Table>
++ Effective November 1, 2003, these Funds adopted a change in the amortization
and accretion methodology on fixed income securities. The cumulative effect
of this change in methodology was immaterial to all Funds except for the
Fund noted below:
<Table>
<Caption>
Change to Ratio of Net
Change to Net Investment Income to Average
Change to Net Realized and Net Assets
Investment Unrealized Gains ------------------------------
Income Per Share (Losses) Per Share I Shares A Shares C Shares
---------------- ------------------ -------- -------- --------
Seix High Yield Fund $ 0.01 $(0.01) 0.06% 0.05% 0.84%
</Table>
218
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FUNDS March 31, 2006
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 53 funds as of March 31, 2006. The Trust
is authorized to issue an unlimited number of shares without par value. The
financial statements presented herein are those of the Core Bond Fund (formerly
the Classic Institutional Core Bond Fund), Florida Tax-Exempt Bond Fund, Georgia
Tax-Exempt Bond Fund, High Income Fund, High Quality Bond Fund (formerly Classic
Institutional High Quality Bond Fund), Intermediate Bond Fund (formerly Classic
Institutional Intermediate Bond Fund), Investment Grade Bond Fund, Investment
Grade Tax-Exempt Bond Fund, Limited Duration Fund (formerly Classic
Institutional Limited Duration Fund), Limited-Term Federal Mortgage Securities
Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund, Seix
Floating Rate High Income Fund, Seix High Yield Fund (formerly Seix
Institutional High Yield Fund), Short-Term Bond Fund, Short-Term U.S. Treasury
Securities Fund, Strategic Income Fund, Total Return Bond Fund (formerly Classic
Institutional Total Return Bond Fund), U.S. Government Securities Fund, U.S.
Government Securities Ultra-Short Bond Fund (formerly Classic Institutional U.S.
Government Securities Super Short Income Plus Fund), Ultra-Short Bond Fund
(formerly Classic Institutional Super Short Income Plus Fund), Virginia
Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund, Prime Quality
Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities
Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money
Market Fund (each a "Fund" and collectively the "Funds"). The financial
statements of the remaining funds are presented separately. The High Quality
Bond Fund, Limited Duration Fund, Seix Floating Rate High Income Fund, Total
Return Bond Fund, U.S. Government Securities Ultra-Short Bond Fund and
Ultra-Short Bond Fund may offer I Shares only (formerly T Shares or
Institutional Shares). The Tax-Exempt Money Market Fund, U.S. Government
Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia
Tax-Free Money Market Fund offer I Shares and A Shares. The remaining Funds
offer I Shares, A Shares and C Shares. The Funds' prospectus provides a
description of each Funds' investment objectives, policies and strategies.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. Each class of shares has identical rights
and privileges except with respect to the fees paid under the Distribution Plan
and Distribution and Services Plan, voting rights on matters affecting a single
class of shares and sales charges. The A Shares of the Funds (except
Limited-Term Federal Mortgage Securities Fund, Short-Term Bond Fund, Short-Term
U.S. Treasury Securities Fund, Prime Quality Money Market Fund, Tax-Exempt Money
Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money
Market Fund and Virginia Tax-Free Money Market Fund) have a maximum sales charge
on purchases of 4.75% as a percentage of original purchase price. Limited-Term
Federal Mortgage Securities Fund, Short-Term Bond Fund and Short-Term U.S.
Treasury Securities Fund A Shares have a maximum sales charge on purchases of
2.50% as a percentage of original purchase price. Certain purchases of A Shares
will not be subject to a front-end sales charge but will be subject to a
contingent deferred sales charge of 1.00% if redeemed within one year of
purchase. The C Shares have a maximum contingent deferred sales charge of 1.00%
(2.00% if purchased prior to August 1, 2005) as a percentage of either the
original purchase price or the next calculated price after the Funds receive the
redemption request, whichever is less, if redeemed within one year of purchase.
On April 1, 2005, the U.S. Government Securities Ultra-Short Bond Fund and the
Ultra-Short Bond Fund declared a 4.974874:1 and a 5:1 reverse stock split,
respectively. The financial statements prepared as of March 31, 2005 should have
reflected the retroactive impact of these reverse stock splits for the periods
ended March 31, 2005, May 31, 2004, May 31, 2003 and May 31, 2002. The March 31,
2005 financial statements have been restated to properly reflect the effects of
the reverse stock splits on a retroactive basis.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with its vendors and others that provide for general
indemnifications. The Trust's
219
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
maximum exposure under these arrangements is unknown as this would involve
future claims that may be made against the Trust. However, based on experience,
the Trust expects that risk of loss to be remote.
2. Reorganizations
Short-Term Bond Fund -- The Trust entered into an agreement and plan of
reorganization on behalf of the Classic Institutional Short-Term Bond Fund and
the Short-Term Bond Fund, that provides for the acquisition by the Short-Term
Bond Fund of all of the assets, subject to stated liabilities, of the Classic
Institutional Short-Term Bond Fund, in exchange for I Shares of the Short-Term
Bond Fund, the distribution of such shares to the shareholders of the Classic
Institutional Short-Term Bond Fund and the dissolution of the Classic
Institutional Short-Term Bond Fund. The reorganization, which qualified as a
tax-free exchange for Federal income tax purposes, was approved by the Board of
Trustees on August 19, 2005 and completed on October 31, 2005. The following is
a summary of shares outstanding, net assets and net asset value per share issued
immediately before and after the reorganization:
<Table>
<Caption>
Before Reorganization After Reorganization
------------------------------------ --------------------
Classic Institutional
Short-Term Short-Term Short-Term
Bond Fund Bond Fund Bond Fund
--------------------- ------------ --------------------
Shares...................................................... 1,257,053 28,079,490 29,360,595
Net Assets.................................................. $12,373,897 $271,213,160 $283,587,057
Net Asset Value:
I Shares.................................................. $ 9.84 $ 9.66 $ 9.66
Net unrealized depreciation............................... $ (193,861) $ (3,317,776) $ (3,511,637)
</Table>
EXCHANGE OF T SHARES TO I SHARES:
On August 1, 2005, net assets of the T Shares of the following Funds were
exchanged in a tax-free conversion for I Shares and T Shares were no longer
offered. The following is a summary of the shares and net assets converted:
<Table>
<Caption>
Net Assets
Shares Converted Converted($)
---------------- ------------
Core Bond Fund.............................................. 14,597,989 148,243,208
High Quality Bond Fund...................................... 1,953,022 19,264,652
Intermediate Bond Fund...................................... 926,342 9,345,826
Limited Duration Fund....................................... 5,127 51,151
Seix High Yield Fund........................................ 408,502 4,530,941
Total Return Bond Fund...................................... 608,146 6,078,728
Ultra-Short Bond Fund....................................... 16,263,821 162,609,401
</Table>
EXCHANGE OF C SHARES TO I SHARES:
On August 1, 2005, net assets of the C Shares of the following Funds were
exchanged in a tax-free conversion for I Shares and C Shares were no longer
offered. The following is a summary of the shares and net assets converted:
<Table>
<Caption>
Net Assets
Shares Converted Converted($)
---------------- ------------
Limited Duration Fund....................................... 6,526 65,126
U.S. Government Securities Ultra-Short Bond Fund............ 1,544,489 15,279,016
</Table>
The Trust entered into an agreement and plan of reorganization with the CCMI
Funds pursuant to which all of the assets, subject to stated liabilities, of
each portfolio of the CCMI Funds were transferred to a
220
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
corresponding series of the Trust in exchange for a corresponding Class of
shares of that series. The reorganization, which qualified as a tax-free
exchange for Federal income tax purposes, was effective on March 21, 2005,
following approval by shareholders of the CCMI Funds at a special shareholder
meeting on March 18, 2005. The following is a summary of shares outstanding, net
assets and net asset value per share issued, immediately before and after the
reorganization.
<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:
I 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 A Shares merged into the
Investment Grade Bond Fund I Shares.
<Table>
<Caption>
Before Reorganization After Reorganization
-------------------------------- --------------------
CCMI Tax-Exempt North Carolina North Carolina
North Carolina Tax-Exempt Tax Exempt
Bond Fund Bond Fund Bond Fund(a)
--------------- -------------- --------------------
Shares...................................................... 4,130,609 -- 4,130,609
Net Assets.................................................. $41,187,382 $ -- $41,187,382
Net Asset Value:
I Shares(b)............................................... $ -- $ 9.97
A Shares.................................................. $ 9.97
Net unrealized depreciation............................... $ (23,376) $ -- $ (23,376)
</Table>
- ---------------
(a) The North Carolina Tax-Exempt Bond Fund retained the financial history of
the CCMI Tax-Exempt North Carolina Bond Fund.
(b) I Shares were issued in exchange for A Shares in conjunction with the
reorganization.
The Trust entered into an agreement and plan of reorganization with the Seix
Funds, Inc. (the "Seix Funds") pursuant to which all of the assets, subject to
stated liabilities, of each portfolio of the Seix Funds were transferred to a
corresponding series of the Trust in exchange for a corresponding Class of
shares of that series. The reorganization, which qualified as a tax-free
exchange for Federal income tax purposes, was completed on October 11, 2004,
following approval by shareholders of the Seix Funds at a special shareholder
meeting on September 23, 2004. The following is a summary of shares outstanding,
net assets and net asset value per share issued immediately before and after the
reorganization:
<Table>
<Caption>
Before Reorganization After Reorganization
----------------------- --------------------
Seix Core Core Bond Core Bond
Bond Fund Fund Fund(b)
----------- --------- --------------------
Shares...................................................... 5,493,647 -- 5,493,647
Net Assets.................................................. $56,294,611 $ -- $56,294,611
Net Asset Value:
I Shares.................................................. $ 10.25 $ -- $ 10.25
A Shares.................................................. $ -- $ 10.55
P Shares(a)............................................... $ 10.55
</Table>
- ---------------
(a) A Shares were issued in exchange for P Shares in conjunction with the
reorganization.
(b) The Core Bond Fund retained the financial history of the Seix Core Bond
Fund.
221
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Before Reorganization After Reorganization
--------------------------- --------------------
Seix
Intermediate Intermediate Intermediate
Bond Fund Bond Fund Bond Fund(a)
------------ ------------ --------------------
Shares...................................................... 3,422,155 -- 3,422,155
Net Assets.................................................. $35,313,376 $ -- $35,313,376
Net Asset Value:
I Shares.................................................. $ 10.32 $ -- $ 10.32
</Table>
- ---------------
(a) The intermediate Bond Fund retained the financial history of the Seix
Intermediate Bond Fund.
<Table>
<Caption>
After
Before Reorganization Reorganization
--------------------------- --------------
Seix High Seix High Seix High
Yield Fund Yield Fund Yield Fund(b)
-------------- ---------- --------------
Shares...................................................... 142,460,313 -- 142,460,313
Net Assets.................................................. $1,612,034,091 $ -- $1,612,034,091
Net Asset Value:
I Shares.................................................. $ 11.32 $ -- $ 11.32
A Shares.................................................. $ -- $ 11.08
P Shares(a)............................................... $ 11.08
</Table>
- ---------------
(a) A Shares were issued in exchange for P Shares in conjunction with the
reorganization.
(b) The Seix High Yield Fund retained the financial history of the predecessor
Seix High Yield Fund.
<Table>
<Caption>
Before Reorganization After Reorganization
----------------------- --------------------
Seix Limited Limited
Duration Duration Limited Duration
Fund Fund Fund (a)
------------ -------- --------------------
Shares...................................................... 13,000,589 -- 13,000,589
Net Assets.................................................. $129,705,443 $ -- $129,705,443
Net Asset Value:
I Shares.................................................. $ 9.98 $ -- $ 9.98
</Table>
- ---------------
(a) The Limited Duration Fund retained the financial history of the Seix Limited
Duration Fund.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available
(except for securities traded on NASDAQ), including securities traded over
the counter, are valued at the last quoted sale price on the primary
exchange or market (foreign or domestic) on which they are traded on
valuation date (or at approximately 4:00 p.m. Eastern Time if a security's
primary exchange is normally open at that time), or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be
used. If available, debt securities are priced based upon valuations
provided by independent, third-party pricing agents. Such values generally
reflect the last reported sale price if the security is actively traded.
The third-party pricing agents may also value debt securities at an
222
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
evaluated bid price by employing methodologies that utilize actual market
transactions, broker-supplied valuations, or other methodologies designed
to identify the market value for such securities. Debt obligations with
remaining maturities of sixty days or less may be valued at their amortized
cost, which approximates market value. The prices for foreign securities
are reported in local currency and converted to U.S. dollars at the
exchange rate of such currencies against the U.S. dollar, as of the close
of regular trading on the New York Stock Exchange (usually 4:00 p.m.
Eastern Time), as provided by an independent pricing service approved by
the Funds' Board of Trustees (the "Board"). If a security price cannot be
obtained from an independent, third-party pricing agent, the Funds'
accounting agent will seek to obtain a bid price from at least one
independent broker.
The Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S.
Government Securities Money Market Fund, U.S. Treasury Money Market Fund
and Virginia Tax-Free Money Market Fund (the "Money Market Funds") state
investment securities at amortized cost, which approximates market value.
Under the amortized cost method, premium or discount, if any, is amortized
or accreted, respectively, on a constant basis to the maturity of the
security.
Securities for which market prices are not "readily available" are valued
in accordance with Fair Value Procedures established by the Board. The
Funds' Fair Value Procedures are performed and monitored by a Valuation
Committee (the "Committee") designated by the Board. Some of the more
common reasons which may necessitate that a security be valued using Fair
Value Procedures include, but are not limited to: the security's trading
has been halted or suspended; the security has been de-listed from a
national exchange; the security's primary trading market is temporarily
closed at a time when under normal conditions it would be open; or the
security's primary pricing source is not able or willing to provide a
price. When a security is valued in accordance with the Fair Value
Procedures, the Committee determines the value after taking into
consideration relevant information reasonably available to the Committee.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular
security's last trade and the time at which a Fund calculates its net asset
value. The closing prices of such securities may no longer reflect their
market value at the time the Fund calculates net asset value if an event
that could materially affect the value of those securities (a "Significant
Event") has occurred between the time of the security's last close and the
time that the Fund calculates net asset value. A Significant Event may
relate to a single issuer or to an entire market sector. If the adviser of
a Fund becomes aware of a Significant Event that has occurred with respect
to a security or group of securities after the closing of the exchange or
market on which the security or securities principally trade, but before
the time at which the Fund calculates net asset value, it shall immediately
notify the Funds' accounting agent and may preauthorize the Funds'
accounting agent to utilize a pricing service authorized by the Board (a
"Fair Value Pricing Service") that has been designed to determine a fair
value. On a day when a Fair Value Pricing Service is so utilized pursuant
to a preauthorization, the Committee need not meet. If the adviser does not
pre-authorize the Fund's accounting agent to utilize a Fair Value Pricing
Service, the adviser will request that a Committee Meeting be called. In
addition, the Funds' accounting agent monitors price movements among
certain selected indices, securities and/or groups of securities that may
be an indicator that the closing prices received earlier in the day from
foreign exchanges or markets may not reflect market value at the time the
Fund calculates net asset value. If price movements in a monitored index or
security exceed levels established by the Funds ("Trigger Points"), the
Funds may use a systematic valuation model provided by an independent third
party to fair value their international securities.
Security Transactions and Investment Income -- During the period, security
transactions are accounted for no later than one business day following the
trade date. For financial reporting purposes, however, security
transactions are accounted for on trade date on the last business day of
the reporting period. Securities sold are determined on a specific
identification basis. Interest income is recognized on an accrual basis and
includes amortization or accretion of premium or discount. Costs used in
determining net realized
223
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
gains and losses on the sales of investment securities are those of the
specific securities sold, adjusted for the accretion or amortization of
purchase discounts or premiums during the respective holding period.
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the repurchase agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Options -- Each Fund may purchase and write put and call options on
securities or securities indices (traded on U.S. exchanges or
over-the-counter markets) and enter into related closing transactions. A
Fund must cover all options it writes. For example, when a Fund writes an
option on a security, index or foreign currency, it will segregate or
earmark liquid assets with the respective Fund's custodian in an amount at
least equal to the market value of the option and will maintain such
coverage while the option is open. The market value of an option generally
reflects the market price of an underlying security. Other principal
factors affecting market value include supply and demand, interest rates,
the pricing volatility of the underlying security and the time remaining
until the expiration date. A Fund purchasing put and call options pays a
premium therefor. If price movements in the underlying securities are such
that exercise of the options would not be profitable for the Fund, loss of
the premium paid may be offset by an increase in the value of the Fund's
securities or by a decrease in the cost of acquisition of securities by the
Fund. When a Fund writes an option, if the underlying securities do not
increase or decrease to a price level that would make the exercise of the
option profitable to the holder thereof, the option generally will expire
without being exercised and the Fund will realize as profit the premium
received for such option. When a call option written by a Fund is
exercised, the Fund will be required to sell the underlying securities to
the option holder at the strike price, and will not participate in any
increase in the price of such securities above the strike price. When a put
option written by the Fund is exercised, the Fund will be required to
purchase the underlying securities at a price in excess of the market value
of such securities. The Short-Term U.S. Treasury Securities Fund had the
following transactions in written covered call options during the year
ended March 31, 2006:
<Table>
<Caption>
Number of
Contracts Premiums($)
---------- -----------
Balance at April 1, 2005.................................... 5,000,000 14,453
Options closed.............................................. (5,000,000) (14,453)
---------- -------
Balance at March 31, 2006................................... -- --
========== =======
</Table>
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of a Fund's net asset value if
the Fund makes such investments while remaining substantially fully
invested.
TBA Purchase Commitments -- The Funds may enter into "TBA" (To Be
Announced) purchase commitments to purchase securities for a fixed price at
a future date beyond customary settlement time. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date. Unsettled TBA purchase commitments are valued at the current market
value of the underlying securities, generally according to the procedures
described under "Security Valuation."
224
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Foreign Currency Translation -- The books and records of the Strategic
Income Fund and Total Return Bond Fund are maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars on the following
basis: (i) market value of investment securities, other assets and
liabilities at the current rate of exchange; and (ii) purchases and sales
of investment securities, income and expenses at the relevant rates of
exchange prevailing on the respective dates of such transactions.
The Strategic Income Fund and Total Return Bond Fund do not isolate the
portion of operations resulting from changes in foreign exchange rates on
investments from fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments and foreign currencies.
Certain prior year amounts in the Strategic Income Fund have been
reclassified to conform to the current year presentation.
Forward Foreign Currency Contracts -- The Strategic Income Fund may enter
into forward foreign currency contracts as hedges against either specific
transactions, fund positions or anticipated fund positions. All commitments
are "marked-to-market" daily at the applicable foreign exchange rate, and
any resulting unrealized gains or losses are recorded currently. The Fund
realizes gains and losses at the time forward contracts are extinguished.
Unrealized gains or losses on outstanding positions in forward foreign
currency contracts held at the close of the year are recognized as ordinary
income or loss for Federal income tax purposes. As of March 31, 2006, the
Strategic Income Fund had open forward foreign currency contracts which are
shown on the Fund's Schedule of Portfolio Investments.
Mortgage Dollar Rolls -- The Funds may enter into mortgage dollar rolls
(principally using TBA's) in which a Fund sells mortgage securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar securities at an agreed-upon price on a fixed future
date. The Funds account for such dollar rolls under the purchases and sales
method and receive compensation as consideration for entering into the
commitment to repurchase. The Funds must maintain liquid securities having
a value not less than the repurchase price (including accrued interest) for
such dollar rolls. The market value of the securities that the Funds are
required to purchase may decline below the agreed upon repurchase price of
those securities.
The counterparty receives all principal and interest payments, including
pre-payments, made in respect of a security subject to such a contract
while it is with the holder. Mortgage dollar rolls may be renewed with a
new purchase and repurchase price and a cash settlement made on settlement
date without physical delivery of the securities subject to the contract.
The Funds engage in dollar rolls for the purpose of enhancing its yield,
principally by earning a negotiated fee. As of March 31, 2006, there were
no open mortgage dollar rolls.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to deposit an amount equal to 110% of the overdraft
in a compensating balance account with its custodian, SunTrust Bank, a
wholly owned subsidiary of SunTrust Banks, Inc., on the following business
day. If a Fund has a positive cash balance in excess of $100,000 it is
allowed to overdraw an amount equal to 90% of the balance from SunTrust
Bank on the following business day. All such deposits to, and overdrafts
from, the compensating balance account are non-interest bearing and are for
a duration of one business day. This does not apply to the Strategic Income
Fund.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
if any, are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes within a Fund on
the basis of the relative daily net assets.
225
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income for each of the Funds are declared daily and paid
monthly. Any net realized capital gains on sales of securities are
distributed to shareholders at least annually. However, to the extent that
net realized capital gains can be offset by capital loss carryovers, such
gains will not be distributed.
Redemption Fees -- For Funds other than the Money Market Funds, a
redemption fee of 2% of the value of the shares sold will be imposed on
shares redeemed within seven days or less after the date of purchase unless
the redemption is excluded under the Funds' Redemption Fee Policy. For the
year ended March 31, 2006, the Funds collected redemption fees which are
disclosed on the Statements of Changes in Net Assets. Redemption Fees are
recorded as an addition to paid-in capital.
4. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly-owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under revised terms of the agreements dated August 1, 2005, the Funds are
charged the following annual fees, which are computed daily and paid
monthly based upon average daily net assets. Breakpoints are used in
computing the advisory fee. The maximum annual advisory fee is charged on
average daily net assets of each Fund (except the Money Market Funds) up to
$500 million, a discount of 5% applies on the next $500 million, a discount
of 10% applies on amounts over $1 billion. The maximum annual advisory fee
will be charged on average daily net assets of the Money Market Funds up to
$1 billion, a discount of 5% applies on the next $1.5 billion, a discount
of 10% applies on the next $2.5 billion and a discount of 20% applies on
amounts over $5 billion. Fee rates for the period August 1, 2005 through
March 31, 2006 were as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
--------------- ------------
Core Bond Fund.............................................. 0.25 0.25
Florida Tax-Exempt Bond Fund................................ 0.55 0.55
Georgia Tax-Exempt Bond Fund................................ 0.55 0.55
High Income Fund............................................ 0.60 0.58
High Quality Bond Fund...................................... 0.40 0.40
Intermediate Bond Fund...................................... 0.25 0.25
Investment Grade Bond Fund.................................. 0.50 0.50
Investment Grade Tax-Exempt Bond Fund....................... 0.50 0.50
Limited Duration Fund....................................... 0.10 0.10
Limited-Term Federal Mortgage Securities Fund............... 0.50 0.50
Maryland Municipal Bond Fund................................ 0.55 0.55
North Carolina Tax-Exempt Bond Fund......................... 0.55 0.55
Seix Floating Rate High Income Fund......................... 0.45 0.23
Seix High Yield Fund........................................ 0.43 0.43
Short-Term Bond Fund........................................ 0.40 0.40
Short-Term U.S. Treasury Securities Fund.................... 0.40 0.38
Strategic Income Fund....................................... 0.60 0.60
Total Return Bond Fund...................................... 0.35 0.35
U.S. Government Securities Fund............................. 0.50 0.50
U.S. Government Securities Ultra-Short Bond Fund............ 0.20 0.18
Ultra-Short Bond Fund....................................... 0.22 0.22
</Table>
226
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
--------------- ------------
Virginia Intermediate Municipal Bond Fund................... 0.55 0.55
Virginia Municipal Bond Fund................................ 0.55 0.55
Prime Quality Money Market Fund............................. 0.51 0.50
Tax-Exempt Money Market Fund................................ 0.44 0.44
U.S. Government Securities Money Market Fund................ 0.55 0.55
U.S. Treasury Money Market Fund............................. 0.54 0.54
Virginia Tax-Free Money Market Fund......................... 0.40 0.40
</Table>
Prior to August 1, 2005, the Funds that were in operation during the period
paid the following annual fees which were computed daily and paid monthly
based upon average daily net assets. Fee rates for the period April 1, 2005
through July 31, 2005 were as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee(%) Fees Paid(%)
--------------- ------------
Core Bond Fund.............................................. 0.25 0.25
Florida Tax-Exempt Bond Fund................................ 0.65 0.61
Georgia Tax-Exempt Bond Fund................................ 0.65 0.60
High Income Fund............................................ 0.80 0.62
High Quality Bond Fund...................................... 0.50 0.43
Intermediate Bond Fund...................................... 0.25 0.25
Investment Grade Bond Fund.................................. 0.74 0.74
Investment Grade Tax-Exempt Bond Fund....................... 0.74 0.74
Limited Duration Fund....................................... 0.10 0.10
Limited-Term Federal Mortgage Securities Fund............... 0.65 0.62
Maryland Municipal Bond Fund................................ 0.65 0.59
North Carolina Tax-Exempt Bond Fund......................... 0.65 0.60
Seix High Yield Fund........................................ 0.50 0.48
Short-Term Bond Fund........................................ 0.65 0.60
Short-Term U.S. Treasury Securities Fund.................... 0.65 0.58
Strategic Income Fund....................................... 0.85 0.76
Total Return Bond Fund...................................... 0.45 0.44
U.S. Government Securities Fund............................. 0.74 0.74
U.S. Government Securities Ultra-Short Bond Fund............ 0.40 0.09
Ultra-Short Bond Fund....................................... 0.50 0.23
Virginia Intermediate Municipal Bond Fund................... 0.65 0.63
Virginia Municipal Bond Fund................................ 0.65 0.63
Prime Quality Money Market Fund............................. 0.65 0.56
Tax-Exempt Money Market Fund................................ 0.55 0.46
U.S. Government Securities Money Market Fund................ 0.65 0.57
U.S. Treasury Money Market Fund............................. 0.65 0.58
Virginia Tax-Free Money Market Fund......................... 0.40 0.40
</Table>
The Investment Adviser has contractually agreed, effective August 1, 2005
until at least August 1, 2007 (effective February 1, 2006 until at least
February 1, 2007 for the Seix Floating Rate High Income Fund), to
227
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
waive fees and/or reimburse each Fund to the extent necessary to maintain
each Fund's Total Operating Expenses, expressed as a percentage of average
daily net assets, as noted below:
<Table>
<Caption>
Total Operating
Expenses(%)
---------------
North Carolina Tax-Exempt Bond Fund......................... I Shares 0.71
North Carolina Tax-Exempt Bond Fund......................... A Shares 0.86
North Carolina Tax-Exempt Bond Fund......................... C Shares 1.71
Seix Floating Rate High Income Fund......................... I Shares 0.55
</Table>
Also effective August 1, 2005, the Investment Adviser may retain the
difference between the Total Operating Expense and the actual total expense
ratio to recapture any of its prior waivers or reimbursements until August
1, 2008. Such repayments shall be made monthly, but only to the extent that
such repayments would not cause the annualized total expense ratio to
exceed the Total Operating Expense in place at that time. As of March 31,
2006, there were no fee repayments available to be made to the Investment
Adviser.
During the year ended March 31, 2006, the Investment Adviser also
voluntarily waived fees in the Funds in order to maintain a more
competitive expense ratio for shareholders. These voluntary waivers will
not be recouped by the Investment Adviser in subsequent years.
Administration, Fund Accounting and Transfer Agent Agreement -- The Trust
and STI Classic Variable Trust are parties to a Master Services Agreement
with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the
Administrator provides administrative, fund accounting, transfer agent and
shareholder services for an annual fee (expressed as a percentage of the
combined average daily net assets of the Trust and STI Classic Variable
Trust) of: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and
0.0175% on amounts over $30 billion plus an additional class fee of $2,593
per class annually, applicable to each additional class of shares over 145
total classes of shares.
The Master Services Agreement provides for the Administrator to pay certain
insurance premiums for the Trust and STI Classic Variable Trust, including
$300,000 toward the premium for Directors and Officers Liability/Errors and
Omissions insurance coverage, and $25,000 toward the premium for Fidelity
Bond coverage. The Administrator has agreed, under the terms of the Master
Services Agreement, to pay certain legal expenses for the benefit of the
Trust and the Classic Variable Trust relating to administrative service
matters. The Master Services Agreement further provides for the
Administrator to waive a portion of its fees for the benefit of
shareholders. Such payments and fee waivers are expected to total
approximately $400,000 to $650,000 annually, and will not be recouped by
the Administrator in subsequent years.
Transfer Agency Agreement -- Prior to December 12, 2005, SunTrust
Investment Services ("STIS"), a wholly-owned subsidiary of SunTrust Banks,
Inc., provided certain transfer agency account activity processing and
servicing to the Trust. STIS received transfer agency service fees based
upon a monthly per account charge for the total shareholder accounts at the
Trust's transfer agent. These fees are included in the Transfer Agent Fees
on the Statements of Operations.
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Services
Agreement. The Distributor will receive no fees for its distribution
services under the agreement for the I Shares of any Fund. With respect to
the A Shares and C Shares, the Distributor receives amounts, pursuant to a
Distribution Plan and (in the case of C Shares) a Distribution and Service
Plan, based upon average daily net assets of each respective class, which
are computed daily
228
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
and paid monthly. These fees, expressed as a percentage of average daily
net assets, for the period August 1, 2005 through March 31, 2006 are as
follows:
<Table>
<Caption>
Board Approved Board Approved
and Charged and Charged
A Share C Share
Distribution Distribution
Fee(%) and Service Fee(%)
-------------- ------------------
Core Bond Fund.............................................. 0.25 1.00
Florida Tax-Exempt Bond Fund................................ 0.15 1.00
Georgia Tax-Exempt Bond Fund................................ 0.15 1.00
High Income Fund............................................ 0.30 1.00
Intermediate Bond Fund...................................... 0.25 1.00
Investment Grade Bond Fund.................................. 0.30 1.00
Investment Grade Tax-Exempt Bond Fund....................... 0.30 1.00
Limited-Term Federal Mortgage Securities Fund............... 0.20 1.00
Maryland Municipal Bond Fund................................ 0.15 1.00
North Carolina Tax-Exempt Bond Fund......................... 0.15 1.00
Seix High Yield Fund........................................ 0.25 1.00
Short-Term Bond Fund........................................ 0.20 1.00
Short-Term U.S. Treasury Securities Fund.................... 0.18 1.00
Strategic Income Fund....................................... 0.30 1.00
U.S. Government Securities Fund............................. 0.30 1.00
Virginia Intermediate Municipal Bond Fund................... 0.15 1.00
Virginia Municipal Bond Fund................................ 0.15 1.00
Prime Quality Money Market Fund............................. 0.15 0.25
Tax-Exempt Money Market Fund................................ 0.15 N/A
U.S. Government Securities Money Market Fund................ 0.15 N/A
U.S. Treasury Money Market Fund............................. 0.15 N/A
Virginia Tax-Free Money Market Fund......................... 0.15 N/A
</Table>
Prior to August 1, 2005, with respect to the A Shares and C Shares, the
Distributor received amounts, pursuant to a Distribution Plan and (in the
case of C Shares) a Distribution and Service Plan, based upon average daily
net assets of each respective class which were computed daily and paid
monthly. These fees, expressed as a percentage of average daily net assets,
for the Funds that were in operation during the period April 1, 2005
through July 31, 2005 were as follows:
<Table>
<Caption>
Maximum Maximum
A Share C Share
Distribution Net Annual Distribution Net Annual
Fee(%) Fees Paid(%) and Service Fee(%) Fees Paid(%)
------------ ------------ ------------------ ------------
Core Bond Fund........................................ 0.25 0.25 1.00 0.63
Florida Tax-Exempt Bond Fund.......................... 0.18 0.18 1.00 0.76
Georgia Tax-Exempt Bond Fund.......................... 0.18 0.18 1.00 0.76
High Income Fund...................................... 0.30 0.30 1.00 0.70
Intermediate Bond Fund................................ 0.25 0.25 1.00 0.73
Investment Grade Bond Fund............................ 0.43 0.43 1.00 0.94
Investment Grade Tax-Exempt Bond Fund................. 0.43 0.43 1.00 0.94
Limited Duration Fund................................. N/A N/A 0.25 0.25
Limited-Term Federal Mortgage Securities Fund......... 0.23 0.23 1.00 0.66
</Table>
229
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Maximum Maximum
A Share C Share
Distribution Net Annual Distribution Net Annual
Fee(%) Fees Paid(%) and Service Fee(%) Fees Paid(%)
------------ ------------ ------------------ ------------
Maryland Municipal Bond Fund.......................... 0.15 0.15 1.00 1.00
North Carolina Tax-Exempt Bond Fund................... 0.15 -- 1.00 --
Seix High Yield Fund.................................. 0.25 0.25 1.00 0.65
Short-Term Bond Fund.................................. 0.23 0.23 1.00 0.61
Short-Term U.S. Treasury Securities Fund.............. 0.18 0.18 1.00 0.47
Strategic Income Fund................................. 0.35 0.30 1.00 0.58
U.S. Government Securities Fund....................... 0.38 0.38 1.00 0.97
U.S. Government Securities Ultra-Short Bond Fund...... N/A N/A 0.40 0.30
Virginia Intermediate Municipal Bond Fund............. 0.15 0.09 N/A N/A
Virginia Municipal Bond Fund.......................... 0.15 0.15 1.00 1.00
Prime Quality Money Market Fund....................... 0.20 0.20 0.75 0.20
Tax-Exempt Money Market Fund.......................... 0.15 0.15 N/A N/A
U.S. Government Securities Money Market Fund.......... 0.17 0.17 N/A N/A
U.S. Treasury Money Market Fund....................... 0.15 0.14 N/A N/A
Virginia Tax-Free Money Market Fund................... 0.40 0.20 N/A N/A
</Table>
Shareholder Servicing Agreement -- Prior to August 1, 2005, the Funds were
subject to a Shareholder Services Plan whereby each Fund paid SunTrust Bank
a monthly shareholder services fee based upon the respective average daily
net assets of each class which was computed daily and paid monthly. This
fee could be used by SunTrust Bank to provide compensation to service
providers that agreed to provide shareholder support services for their
customers who own shares of the Fund. SunTrust Bank voluntarily agreed to
waive all or a portion of its fees. The Shareholder Services Plan
terminated on August 1, 2005. The fees for the applicable Funds for the
period April 1, 2005 through July 31, 2005 were as follows:
<Table>
<Caption>
Maximum Maximum
Annual Annual
Shareholder Net Annual Shareholder Net Annual
Service Fee(%) Fees Paid(%) Service Fee(%) Fees Paid(%)
(Institutional Shares) (Institutional Shares) (T Shares) (T Shares)
---------------------- ---------------------- -------------- ------------
Core Bond Fund............................ 0.25 -- 0.25 0.08
High Quality Bond Fund.................... 0.25 0.20 0.40 0.38
Intermediate Bond Fund.................... 0.25 -- 0.20 0.20
Limited Duration Fund..................... 0.25 -- 0.10 0.10
Seix High Yield Fund...................... 0.25 -- 0.15 0.15
Total Return Bond Fund.................... 0.20 0.16 0.35 0.33
U.S. Government Securities Ultra-Short
Bond Fund............................... 0.25 -- N/A N/A
Ultra-Short Bond Fund..................... 0.25 0.06 0.25 0.25
</Table>
Custodian Agreements -- SunTrust Bank acts as Custodian for the Funds
except for the Strategic Income Fund, which has appointed Brown Brothers
Harriman & Co. as Custodian. The funds pay custody fees on the basis of net
assets and transaction costs.
Other -- Certain officers of the Trust are also officers of the Investment
Adviser, the Administrator and/or the Distributor. Such officers receive no
fees from the Trust for serving as officers of the Trust. Each of the
230
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
trustees receives an annual retainer fee and an additional fee for each
meeting attended. Trustees receive additional fee for attendance at
committee meetings. The current fees are as follows:
<Table>
<Caption>
Chairman($) Trustee($)
----------- ----------
Annual Retainer............................................. 50,000 40,000
Regular Meeting Fee......................................... 7,500 6,000
Special Meeting Fee......................................... 3,750 3,000
Committee Meeting Fee....................................... 4,500 2,500
</Table>
Trustees are also reimbursed for certain expenses incurred. The Investment
Adviser provides services to the Trust and the STI Classic Variable Trust
to ensure compliance with applicable laws and regulations. In addition, the
Investment Adviser has designated a dedicated compliance staff and an
employee to serve as Chief Compliance Officer. The Investment Adviser
received a fee totaling $120,000 for these services during the year ended
March 31, 2006. The Investment Adviser has expanded the scope of its
compliance services to the Trust and the STI Classic Variable Trust and,
effective April 1, 2006, will receive annual fees totaling $475,000 for the
fiscal year ending March 31, 2007. In addition, the Administrator provides
an employee and staff to assist the Chief Compliance Officer for the Trust,
including providing certain related services, and receives an annual fee of
$150,000 for providing these services. The fees above are allocated across
the assets of the Trust and the STI Classic Variable Trust. For the year
ended March 31, 2006, the total amount paid by the Trust related to
trustees and compliance services was $961,554.
During the period, the Investment Adviser reimbursed the Prime Quality
Money Market Fund $17,920 for losses incurred in the disposal of
investments in violation of the Fund's investment restrictions. This
reimbursement did not have an affect on the Fund's total returns during the
period.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital markets, Inc., which is a direct non-bank
subsidiary of SunTrust Banks, Inc., to act as an agent in placing
repurchase agreements for the Trust. For the year ended March 31, 2006, the
following Funds paid SunTrust Robinson Humphrey, through a reduction in the
yield earned by the Funds on those repurchase agreements, the following
amounts (in thousands):
<Table>
<Caption>
Fees($)
-------
Core Bond Fund.............................................. 12
Florida Tax-Exempt Bond Fund................................ --
High Income Fund............................................ 3
High Quality Bond Fund...................................... --
Intermediate Bond Fund...................................... 1
Investment Grade Bond Fund.................................. 7
Investment Grade Tax-Exempt Bond Fund....................... 3
Limited Duration Fund....................................... 2
Limited-Term Federal Mortgage Securities Fund............... 7
Seix High Yield Fund........................................ 21
Total Return Bond Fund...................................... 2
U.S. Government Securities Fund............................. 10
U.S. Government Securities Ultra-Short Bond Fund............ 3
Ultra-Short Bond Fund....................................... 4
Prime Quality Money Market Fund............................. 62
U.S. Government Securities Money Market Fund................ 114
U.S. Treasury Money Market Fund............................. 598
</Table>
Amounts designated as "--" round to less than $1,000.
231
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
5. Investment Transactions
The cost of purchases and the proceeds from sales and maturities of securities,
excluding short-term investments and U.S. Government securities, for the year
ended March 31, 2006, were as follows (in thousands):
<Table>
<Caption>
Sales and
Purchases($) Maturities($)
------------ -------------
Core Bond Fund.............................................. 90,291 54,585
Florida Tax-Exempt Bond Fund................................ 174,069 154,152
Georgia Tax-Exempt Bond Fund................................ 70,104 49,233
High Income Fund............................................ 166,260 194,909
High Quality Bond Fund...................................... 3,691 4,746
Intermediate Bond Fund...................................... 14,950 9,366
Investment Grade Bond Fund.................................. 124,451 144,014
Investment Grade Tax-Exempt Bond Fund....................... 750,599 736,052
Limited Duration Fund....................................... 21,685 30,500
Maryland Municipal Bond Fund................................ 22,709 25,009
North Carolina Tax-Exempt Bond Fund......................... 34,169 33,351
Seix Floating Rate High Income Fund......................... 115,303 9,146
Seix High Yield Fund........................................ 928,442 1,076,001
Short-Term Bond Fund........................................ 122,970 135,224
Strategic Income Fund....................................... 457,973 414,789
Total Return Bond Fund...................................... 21,765 21,369
U.S. Government Securities Ultra-Short Bond Fund............ 22,398 22,384
Ultra-Short Bond Fund....................................... 178,526 173,731
Virginia Intermediate Municipal Bond Fund................... 94,398 99,893
Virginia Municipal Bond Fund................................ 39,084 38,073
</Table>
The cost of purchases and proceeds from sales and maturities of long-term
U.S. Government securities for the year ended March 31, 2006, were as
follows (in thousands):
<Table>
<Caption>
Sales and
Purchases($) Maturities($)
------------ -------------
Core Bond Fund.............................................. 969,214 804,899
High Quality Bond Fund...................................... 45,195 56,598
Intermediate Bond Fund...................................... 109,122 91,540
Investment Grade Bond Fund.................................. 817,333 913,098
Limited Duration Fund....................................... 494 8,607
Limited-Term Federal Mortgage Securities Fund............... 293,271 381,423
Seix High Yield Fund........................................ 250,210 206,394
Short-Term Bond Fund........................................ 156,116 133,732
Short-Term U.S. Treasury Securities Fund.................... 137,575 155,481
Strategic Income Fund....................................... 506,535 504,172
Total Return Bond Fund...................................... 117,495 114,465
U.S. Government Securities Fund............................. 346,251 347,586
U.S. Government Securities Ultra-Short Bond Fund............ 31,153 42,278
Ultra-Short Bond Fund....................................... 94,743 60,317
</Table>
232
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
6. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with each applicable country's tax rules and rates.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature (i.e. foreign currency transactions or paydown reclasses),
such amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification.
At March 31, 2006, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes. These differences were
generally due to losses on wash sales, which cannot be used for Federal income
tax purposes in the current year and have been deferred for use in future years.
The Federal tax cost and aggregate gross unrealized appreciation and
depreciation for securities held by the Funds at March 31, 2006 are presented on
each Fund's Schedule of Portfolio Investments.
The tax character of distributions paid to shareholders during the year ended
March 31, 2006 was as follows:
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
Core Bond Fund.................... 15,441 89 15,530 -- 15,530
Florida Tax-Exempt Bond Fund...... 21 850 871 5,574 6,445
Georgia Tax-Exempt Bond Fund...... -- 127 127 3,970 4,097
High Income Fund.................. 8,484 1,954 10,438 -- 10,438
High Quality Bond Fund............ 1,937 -- 1,937 -- 1,937
Intermediate Bond Fund............ 2,522 101 2,623 -- 2,623
Investment Grade Bond Fund........ 22,428 -- 22,428 -- 22,428
Investment Grade Tax-Exempt Bond
Fund............................ 205 2,161 2,366 8,459 10,825
Limited Duration Fund............. 2,224 1 2,225 -- 2,225
Limited-Term Federal Mortgage
Securities Fund................. 15,899 -- 15,899 -- 15,899
Maryland Municipal Bond Fund...... 18 348 366 1,460 1,826
North Carolina Tax-Exempt Bond
Fund............................ 4 -- 4 1,205 1,209
Seix Floating Rate High Income
Fund............................ 5 -- 5 -- 5
Seix High Yield Fund.............. 89,393 8,360 97,753 -- 97,753
Short-Term Bond Fund.............. 9,805 -- 9,805 -- 9,805
Short-Term U.S. Treasury
Securities Fund................. 2,357 -- 2,357 -- 2,357
Strategic Income Fund............. 15,838 2,250 18,088 -- 18,088
Total Return Bond Fund............ 2,555 -- 2,555 -- 2,555
U.S. Government Securities Fund... 13,540 -- 13,540 -- 13,540
U.S. Government Securities
Ultra-Short Bond Fund........... 2,019 -- 2,019 -- 2,019
Ultra-Short Bond Fund............. 7,484 -- 7,484 -- 7,484
</Table>
233
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
Virginia Intermediate Municipal
Bond Fund....................... -- 1,180 1,180 5,997 7,177
Virginia Municipal Bond Fund...... 44 514 558 1,950 2,508
Prime Quality Money Market Fund... 171,636 -- 171,636 -- 171,636
Tax-Exempt Money Market Fund...... -- 75 75 34,712 34,787
U.S. Government Securities Money
Market Fund..................... 20,612 -- 20,612 -- 20,612
U.S. Treasury Money Market Fund... 40,814 -- 40,814 -- 40,814
Virginia Tax-Free Money Market
Fund............................ 79 24 103 10,216 10,319
</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 $0.
The tax character of distributions paid to shareholders during the period ended
March 31, 2005 was as follows:
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
Core Bond Fund.................... 1,857 267 2,124 -- 2,124
Florida Tax-Exempt Bond Fund...... 183 1,935 2,118 4,221 6,339
Georgia Tax-Exempt Bond Fund...... -- 2,446 2,446 2,857 5,303
High Income Fund.................. 7,686 3,222 10,908 -- 10,908
High Quality Bond Fund............ 2,841 -- 2,841 -- 2,841
Intermediate Bond Fund............ 556 328 884 -- 884
Investment Grade Bond Fund........ 16,165 -- 16,165 -- 16,165
Investment Grade Tax-Exempt Bond
Fund............................ 2,491 1,716 4,207 5,012 9,219
Limited Duration Fund............. 821 3 824 -- 824
Limited-Term Federal Mortgage
Securities Fund................. 15,039 -- 15,039 -- 15,039
Maryland Municipal Bond Fund...... -- 385 385 1,244 1,629
North Carolina Tax-Exempt Bond
Fund............................ 144 -- 144 953 1,097
Seix High Yield Fund.............. 49,190 7,880 57,070 -- 57,070
Short-Term Bond Fund.............. 6,112 -- 6,112 -- 6,112
Short-Term U.S. Treasury
Securities Fund................. 2,056 897 2,953 -- 2,953
Strategic Income Fund............. 8,663 1,163 9,826 -- 9,826
Total Return Bond Fund............ 1,724 -- 1,724 -- 1,724
U.S. Government Securities Fund... 9,498 -- 9,498 -- 9,498
U.S. Government Securities
Ultra-Short Bond Fund........... 1,660 -- 1,660 -- 1,660
Ultra-Short Bond Fund............. 3,559 -- 3,559 -- 3,559
Virginia Intermediate Municipal
Bond Fund....................... -- 1,613 1,613 5,139 6,752
Virginia Municipal Bond Fund...... -- 840 840 1,558 2,398
Prime Quality Money Market Fund... 47,933 -- 47,933 -- 47,933
Tax-Exempt Money Market Fund...... 221 210 431 10,358 10,789
</Table>
234
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
U.S. Government Securities Money
Market Fund..................... 7,574 -- 7,574 -- 7,574
U.S. Treasury Money Market Fund... 11,628 -- 11,628 -- 11,628
Virginia Tax-Free Money Market
Fund............................ 77 69 146 2,457 2,603
</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 $0.
The tax character of distributions paid to shareholders during the fiscal years
ended as noted, were as follows (in thousands):
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
Core Bond Fund(a)................. 2,217 141 2,358 -- 2,358
Florida Tax-Exempt Bond Fund(b)... 973 2,705 3,678 5,436 9,114
Georgia Tax-Exempt Bond Fund(b)... 2 827 829 3,770 4,599
High Income Fund(b)............... 14,342 -- 14,342 -- 14,342
High Quality Bond Fund(b)......... 1,056 -- 1,056 -- 1,056
Intermediate Bond Fund(a)......... 973 -- 973 -- 973
Investment Grade Bond Fund(b)..... 26,425 -- 26,425 -- 26,425
Investment Grade Tax-Exempt Bond
Fund(b)......................... 3,652 1,555 5,207 5,330 10,537
Limited Duration Fund(a).......... 1,544 -- 1,544 -- 1,544
Limited-Term Federal Mortgage
Securities Fund(b).............. 15,208 -- 15,208 -- 15,208
Maryland Municipal Bond Fund(b)... 66 940 1,006 1,615 2,621
North Carolina Tax-Exempt Bond
Fund(b)......................... 251 -- 251 -- 251
Seix High Yield Fund(a)........... 89,336 164 89,500 -- 89,500
Short-Term Bond Fund(b)........... 8,004 -- 8,004 -- 8,004
Short-Term U.S. Treasury
Securities Fund(b).............. 3,462 1,663 5,125 -- 5,125
Strategic Income Fund(b).......... 11,744 558 12,302 -- 12,302
Total Return Bond Fund(b)......... 607 -- 607 -- 607
U.S. Government Securities
Fund(b)......................... 10,576 598 11,174 -- 11,174
U.S. Government Securities
Ultra-Short Bond Fund(b)........ 1,906 -- 1,906 -- 1,906
Ultra-Short Bond Fund(b).......... 3,817 -- 3,817 -- 3,817
Virginia Intermediate Municipal
Bond Fund(b).................... -- 1,695 1,695 6,527 8,222
Virginia Municipal Bond Fund(b)... 42 1,236 1,278 1,945 3,223
Prime Quality Money Market
Fund(b)......................... 26,658 -- 26,658 -- 26,658
Tax-Exempt Money Market Fund(b)... 54 81 135 5,966 6,101
U.S. Government Securities Money
Market Fund(b).................. 3,705 -- 3,705 -- 3,705
</Table>
235
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Distributions paid from
---------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)*
- ---- -------------- ---------------- ---------------- ---------------- -------------------
U.S. Treasury Money Market
Fund(b)......................... 4,174 6 4,180 -- 4,180
Virginia Tax-Free Money Market
Fund(b)......................... 28 96 124 1,436 1,560
</Table>
- ---------------
(a) For the fiscal year ended October 31, 2004.
(b) For the fiscal year ended May 31, 2004.
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid. Amounts
designated as "--" are either $0 or have been rounded to $0.
As of March 31, 2006 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Undistributed Undistributed Undistributed Accumulated
Tax Exempt Ordinary Long Term Accumulated Distributions Capital and
Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ------------- ---------------- ----------- ------------- -----------------
Core Bond Fund............... -- 1,971 -- 1,971 (1,932) (4,259)
Florida Tax-Exempt Bond
Fund........................ 481 -- 130 611 (492) --
Georgia Tax-Exempt Bond
Fund........................ 537 -- 110 647 (399) --
High Income Fund............. -- 464 -- 464 (430) (1,839)
High Quality Bond Fund....... -- 250 -- 250 (184) (1,386)
Intermediate Bond Fund....... -- 327 -- 327 (301) (596)
Investment Grade Bond Fund... -- 2,238 -- 2,238 (2,037) (7,224)
Investment Grade Tax-Exempt
Bond Fund................... 699 483 -- 1,182 (861) --
Limited Duration Fund........ -- 189 9 198 (188) (5)
Limited-Term Federal Mortgage
Securities Fund............. -- 1,546 -- 1,546 (1,420) (15,189)
Maryland Municipal Bond
Fund........................ 84 36 65 185 (128) --
North Carolina Tax-Exempt
Bond Fund................... 52 -- -- 52 (116) (173)
Seix Floating Rate High
Income Fund................. -- 456 -- 456 (434) (23)
Seix High Yield Fund......... -- 6,757 -- 6,757 (6,701) (10,101)
Short-Term Bond Fund......... -- 1,054 -- 1,054 (984) (9,991)
Short-Term U.S. Treasury
Securities Fund............. -- 208 -- 208 (208) (1,628)
Strategic Income Fund........ -- 1,551 -- 1,551 (1,065) (9,618)
Total Return Bond Fund....... -- 243 -- 243 (245) (1,362)
U.S. Government Securities
Fund........................ -- 1,614 -- 1,614 (1,282) (5,881)
U.S. Government Ultra-Short
Bond Fund................... -- 172 -- 172 (153) (1,245)
Ultra-Short Bond Fund........ -- 1,161 -- 1,161 (893) (1,904)
Virginia Intermediate
Municipal Bond Fund......... 477 -- -- 477 (512) (123)
Virginia Municipal Bond
Fund........................ 145 -- -- 145 (170) (28)
Prime Quality Money Market
Fund........................ -- 23,693 88 23,781 (23,767) --
Tax-Exempt Money Market
Fund........................ 4,115 24 5 4,144 (4,115) --
<Caption>
Unrealized
Appreciation Total Accumulated
(Depreciation)($)*** Earnings (Deficit)($)
-------------------- ---------------------
Core Bond Fund............... (9,756) (13,976)
Florida Tax-Exempt Bond
Fund........................ 526 645
Georgia Tax-Exempt Bond
Fund........................ 2,473 2,721
High Income Fund............. 872 (933)
High Quality Bond Fund....... (1,090) (2,410)
Intermediate Bond Fund....... (1,565) (2,135)
Investment Grade Bond Fund... (11,230) (18,253)
Investment Grade Tax-Exempt
Bond Fund................... (210) 111
Limited Duration Fund........ (13) (8)
Limited-Term Federal Mortgage
Securities Fund............. (6,296) (21,359)
Maryland Municipal Bond
Fund........................ 549 606
North Carolina Tax-Exempt
Bond Fund................... (65) (302)
Seix Floating Rate High
Income Fund................. (329) (330)
Seix High Yield Fund......... (9,748) (19,793)
Short-Term Bond Fund......... (4,413) (14,334)
Short-Term U.S. Treasury
Securities Fund............. (1,218) (2,846)
Strategic Income Fund........ (1,658) (10,790)
Total Return Bond Fund....... (1,346) (2,710)
U.S. Government Securities
Fund........................ (6,692) (12,241)
U.S. Government Ultra-Short
Bond Fund................... (233) (1,459)
Ultra-Short Bond Fund........ (1,050) (2,686)
Virginia Intermediate
Municipal Bond Fund......... 1,554 1,396
Virginia Municipal Bond
Fund........................ 931 878
Prime Quality Money Market
Fund........................ -- 14
Tax-Exempt Money Market
Fund........................ -- 29
</Table>
236
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Undistributed Undistributed Undistributed Accumulated
Tax Exempt Ordinary Long Term Accumulated Distributions Capital and
Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ------------- ---------------- ----------- ------------- -----------------
U.S. Government Securities
Money Market Fund........... -- 2,249 -- 2,249 (2,249) --
U.S. Treasury Money Market
Fund........................ -- 5,298 -- 5,298 (5,237) (209)
Virginia Tax-Free Money
Market Fund................. 1,120 4 -- 1,124 (1,115) --
<Caption>
Unrealized
Appreciation Total Accumulated
(Depreciation)($)*** Earnings (Deficit)($)
-------------------- ---------------------
U.S. Government Securities
Money Market Fund........... -- --
U.S. Treasury Money Market
Fund........................ (2) (150)
Virginia Tax-Free Money
Market Fund................. -- 9
</Table>
- ---------------
** As of the latest tax year end of March 31, 2006, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations (in thousands). To the extent
that these carryovers are used to offset future gains, it is probable that
the gains so offset will not be distributed to shareholders.
<Table>
<Caption>
Expires
-----------------------------------------------
2009($) 2011($) 2012($) 2013($) 2014($)
------- ------- ------- ------- -------
High Quality Bond Fund...................................... -- -- -- 951 --
Intermediate Bond Fund...................................... -- -- -- -- 86
Investment Grade Bond Fund.................................. 7,224 -- -- -- --
Limited-Term Federal Mortgage Securities Fund............... -- -- 5,162 3,272 5,209
North Carolina Tax-Exempt Bond Fund......................... -- -- -- -- 170
Seix High Yield Fund........................................ -- -- -- -- 5,154
Short-Term Bond Fund........................................ 352 9,216 22 354 47
Short-Term U.S. Treasury Securities Fund.................... -- -- -- 246 907
Total Return Bond Fund...................................... -- -- 161 573 --
U.S. Government Securities Fund............................. -- -- 2,698 508 251
U.S. Government Ultra-Short Bond Fund....................... -- -- 518 393 272
Ultra-Short Bond Fund....................................... -- -- 588 548 573
U.S. Treasury Money Market Fund............................. -- -- -- 165 42
</Table>
As of March 31, 2006, the Short-Term Bond Fund has additional capital loss
carryforwards, subject to any applicable limitations on availability, to offset
future gains, if any, as the successor of a merger with the Classic
Institutional Short-Term Bond Fund. These amounts are $22 and $353 expiring in
2012 and 2013, respectively, in thousands.
During the year ended March 31, 2006, the Core Bond Fund, Florida Tax-Exempt
Bond Fund, High Quality Bond Fund, Intermediate Bond Fund, Investment Grade Bond
Fund, Limited Duration Fund, Limited-Term Federal Mortgage Securities Fund,
North Carolina Tax-Exempt Fund, Seix Floating Rate High Income Fund, Seix High
Yield Fund, Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund,
Total Return Bond Fund, U.S. Government Securities Fund, U.S. Government
Securities Ultra-Short Bond Fund, Ultra-Short Bond Fund, Prime Quality Money
Market Fund and U.S. Treasury Money Market Fund utilized $269, $1, $19, $86,
$6,129, $8, $5,209, $170, $19, $5,154, $47, $907, $57, $251, $272, $573, $17 and
$42 in capital loss carryforwards, respectively, in thousands.
Net Capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year.
The Core Bond Fund, High Income Fund, High Quality Bond Fund, Intermediate Bond
Fund, Limited Duration Fund, Limited-Term Federal Mortgage Securities Fund,
North Carolina Tax-Exempt Fund, Seix Floating Rate High Income Fund, Seix High
Yield Fund, Short-Term U.S. Treasury Securities Fund, Strategic Income Fund,
Total Return Bond Fund, U.S. Government Securities Fund, U.S. Government
Securities Ultra-Short Bond Fund, Ultra-Short Bond Fund, Virginia Intermediate
Municipal Bond Fund, Virginia Municipal Bond Fund and U.S. Treasury Money Market
Fund have incurred and will elect to defer $4,259, $1,839, $435, $510, $5,
$1,546, $3, $23, $4,947, $475, $9,618, $628, $2,424, $62, $195, $123, $28 and
$2, respectively, in thousands, in capital losses.
*** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral of losses on wash
sales, the difference between book and tax amortization methods for premium
and market discount, the realization for tax purposes of unrealized
gains/losses on investments in passive foreign investment companies, and the
return of capital adjustments from real estate investment trusts.
Amounts designated as "--" are either $0 or have been rounded to $0.
7. Risks
The prices of the Funds' fixed income securities respond to economic
developments, particularly interest rate changes, as well as to perceptions
about the creditworthiness of individual issuers, including governments.
Generally, the Funds' fixed income securities will decrease in value if interest
rates rise and vice versa, and the volatility of lower-rated securities is even
greater than that of higher-rated securities. Also, longer-term securities are
generally more volatile, so the average maturity or duration of these securities
affects risk.
237
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
The High Income, Seix High Yield and Strategic Income Funds invest in high yield
corporate, government, and other debt instruments of U.S. and non-U.S. issuers.
High yield securities involve greater risk of default or downgrade and are more
volatile than investment grade securities.
The Strategic Income Fund and Total Return Bond Fund invest in securities of
foreign issuers in various countries. Investments in securities of foreign
issuers carry certain risks not ordinarily associated with investments in
securities of U.S. issuers. These risks include future political and economic
developments, and the possible imposition of exchange controls or other foreign
governmental laws and restrictions. In addition, with respect to certain
countries, there is a possibility of expropriation of assets, confiscatory
taxation, political or social instability or diplomatic developments, which
could adversely affect investments in those countries. Emerging market countries
are countries that the World Bank or the United Nations considers to be emerging
or developing. Emerging markets may be more likely to experience political
turmoil or rapid changes in market or economic conditions than more developed
countries. In addition, the financial stability of issuers, including
governments, in emerging market countries may be more precarious than in other
countries. As a result, there will tend to be a decreased risk of price
volatility associated with the Fund's investments in emerging market countries,
which may be magnified by currency fluctuations relative to the U.S. dollar.
The Florida Tax-Exempt Bond, Georgia Tax-Exempt Bond, Maryland Municipal Bond,
North Carolina Tax-Exempt Bond, Virginia Intermediate Municipal Bond, Virginia
Municipal Bond and Virginia Tax-Free Money Market Funds' concentrations of
investments in securities of issuers located in a specific region subjects each
Fund to the economic and government policies of that region.
The Core Bond, High Quality Bond, Intermediate Bond, Investment Grade Bond,
Limited Duration, Limited-Term Federal Mortgage Securities, Short-Term Bond,
Total Return Bond, U.S. Government Securities, U.S. Government Securities
Ultra-Short Bond and Ultra-Short Bond Funds invest in securities whose value is
derived from an underlying pool of mortgages or consumer loans. Prepayment of
these loans shortens the stated maturity of these respective obligations and may
result in a loss of premium, if any has been paid. Estimates of such prepayments
are used to calculate expected maturity dates and a Fund's average duration.
The Money Market Funds invest primarily in money market instruments maturing in
397 days or less whose ratings are within one of the two highest ratings
categories assigned by a nationally recognized statistical rating organization,
or, if not rated, are believed to be of comparable quality. The ability of the
issuers of the securities held by the Funds to meet their obligations may be
affected by economic developments in a specific industry, state or region.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
The Funds hold certain securities the issuer of which operates under a
congressional charter. These securities (Federal Home Loan Mortgage Corporation,
Federal Home Loan Bank and Federal National Mortgage Association) are neither
issued nor guaranteed by the U.S. Government. If needed, access to additional
funding from the U.S. Treasury (beyond the issuer's line of credit), would
require congressional action.
8. Securities Lending
The Funds (other than the Money Market Funds) may lend portfolio securities to
brokers, dealers and other financial organizations that meet capital and other
credit requirements or other criteria established by the Trust's Board. These
loans may not exceed either (i) 50% of the sum of the market value of all
securities of the Fund and the market value of the loan collateral or (ii)
33.33% of the total market value of all securities of the Fund. No Fund will
lend portfolio securities to its investment adviser or its affiliates unless it
has applied for and received specific authority to do so from the Securities and
Exchange Commission. Loans of portfolio
238
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
securities will be fully collateralized by cash, letters of credit or U.S.
government securities. The value of the collateral is at least 102% of the
market value of the securities loaned, and is maintained in an amount equal to
at least 100% thereafter. However, due to market fluctuations during the day,
the value of securities loaned on a particular day may, during the course of the
day, exceed the value of collateral. On each business day, the amount of
collateral is adjusted based on the prior day's market fluctuations and the
current day's lending activity. Income from lending activity is determined by
the amount of interest earned on collateral, less any amounts payable to the
borrowers of the securities and the lending agent. Lending securities involves
certain risks, including the risk that the Fund may be delayed or prevented from
recovering the collateral if the borrower fails to return the securities.
A fee will be obtained from the borrower if letters of credit or U.S. government
securities are used as collateral. Cash collateral received in connection with
securities lending is invested in the CSFB Enhanced Liquidity Portfolio (the
"Portfolio"). This investment may consist of money market mutual funds
registered under the Investment Company Act of 1940 and money market instruments
including commercial paper, repurchase agreements, U.S. Treasury Bills and U.S.
Agency Obligations. At March 31, 2006, the Portfolio was invested in
certificates of deposit, repurchase agreements, asset backed securities and
corporate bonds (with interest rates ranging from 4.58% to 5.09% and maturity
dates ranging from 04/03/06 to 04/17/17).
The Funds paid fees security lending fees during the year ended March 31, 2006,
which have been netted against the Securities Lending Income on the Statements
of Operations. These fees are presented below (in thousands):
<Table>
<Caption>
Fees($)
-------
High Income Fund............................................ 13
Investment Grade Bond Fund.................................. 235
Limited-Term Federal Mortgage Securities Fund............... 6
Seix High Yield Fund........................................ 82
Short-Term Bond Fund........................................ 31
Strategic Income Fund....................................... 132
U.S. Government Securities Fund............................. 91
U.S. Government Securities Ultra-Short Bond Fund............ --
Ultra-Short Bond Fund....................................... 2
</Table>
- ---------------
Amounts designated as "--" round to less than $1,000.
9. Other Federal Tax Information (Unaudited)
For corporate shareholders, no portion of the total ordinary income
distributions paid by the Funds during the year ended March 31, 2006 qualified
for the corporate dividends received deduction. Therefore, none of the Funds
paid qualified dividend income for the year ended March 31, 2006.
10. Subsequent Event
On May 8, 2006, the Seix Floating Rate High Income Fund began offering A Shares.
239
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Core Bond Fund (formerly "Classic
Institutional Core Bond Fund"), Florida Tax-Exempt Bond Fund, Georgia Tax-Exempt
Bond Fund, High Income Fund, High Quality Bond Fund (formerly "Classic
Institutional High Quality Bond Fund"), Intermediate Bond Fund (formerly
"Classic Institutional Intermediate Bond Fund"), Investment Grade Bond Fund,
Investment Grade Tax-Exempt Bond Fund, Limited Duration Fund (formerly "Classic
Institutional Limited Duration Fund"), Limited-Term Federal Mortgage Securities
Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund, Seix
Floating Rate High Income Fund, Seix High Yield Fund (formerly "Seix
Institutional High Yield Fund"), Short-Term Bond Fund, Short-Term U.S. Treasury
Securities Fund, Strategic Income Fund, Total Return Bond Fund (formerly
"Classic Institutional Total Return Bond Fund"), U.S. Government Securities
Fund, U.S. Government Securities Ultra-Short Bond Fund (formerly "Classic
Institutional U.S. Government Securities Super Short Income Plus Fund"),
Ultra-Short Bond Fund (formerly "Classic Institutional Super Short Income Plus
Fund"), Virginia Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund,
Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government
Securities Money Market Fund, U.S. Treasury Money Market Fund, and Virginia
Tax-Free Money Market Fund (twenty-eight of the fifty-three funds constituting
STI Classic Funds, hereafter referred to as the "Funds") at March 31, 2006, the
results of each of their operations, the changes in each of their net assets and
the financial highlights for each of the periods indicated, except as discussed
below where funds were audited by other independent accountants, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2006 by
correspondence with the custodians and brokers, provide a reasonable basis for
our opinion. The statement of changes in net assets and the financial highlights
for the period ended May 31, 2004 of the North Carolina Tax-Exempt Bond Fund
were audited by other independent accountants whose report dated July 19, 2004
expressed an unqualified opinion on those financial statements. The financial
highlights for each of the three years (or periods) ended October 31, 2003 of
the Core Bond Fund, Intermediate Bond Fund, Limited Duration Fund and Seix High
Yield Fund were audited by other independent accountants whose report dated
December 19, 2003 expressed an unqualified opinion on those financial
statements. The financial highlights for the year ended May 31, 2001 for all
other funds were audited by other independent accountants who have ceased
operations. Those independent accountants expressed an unqualified opinion on
those financial statements in their report dated July 18, 2001.
As discussed in Note 1, U.S. Government Securities Ultra-Short Bond Fund and
Ultra-Short Bond Fund have restated their previously issued March 31, 2005
financial statements for the periods ended March 31, 2005, May 31, 2004, May 31,
2003 and May 31, 2002.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2006
240
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
Information pertaining to the trustees and officers of the Trust is set forth
below. Trustees who are not deemed to be "interested persons" of the Trust as
defined in the 1940 Act are referred to as "Independent Trustees." Trustees who
are deemed to be "interested persons" of the Trust are referred to as
"Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed
to be "interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
TERM OF THE STI OTHER
POSITION(S) OFFICE AND PRINCIPAL FUND COMPLEX DIRECTORSHIPS
NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN BY HELD BY
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS TRUSTEE TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES*:
Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60 Genuine Parts Company;
3435 Stelzer Road since November Company Piedmont Medical Center;
Columbus, OH 43219 2001 SunTrust Bank
DOB 01/18/36
- ------------------------------------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60 Crawford & Co.
3435 Stelzer Road since November Companies; Partner, King and
Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977
DOB 06/03/42 to 2000)
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60 Genuine Parts Company;
3435 Stelzer Road since May 2000 Company Oxford Industries, Inc.
Columbus, OH 43219
DOB 11/25/47
- ------------------------------------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite; Retired 60 SEI Family of Funds
3435 Stelzer Road since May 1992
Columbus, OH 43219
DOB 12/03/32
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60 ServiceMaster Company; Total
3435 Stelzer Road since November (1997-2004), J. Mack Robinson System Services, Inc.;
Columbus, OH 43219 2004 College of Business, Georgia Transamerica Investors, Inc.
DOB 07/21/49 State University. (13 Mutual Funds)
- ------------------------------------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power 60 WellPoint, Inc.; UniSource
3435 Stelzer Road since November Company and SVP, Southern Energy Corp.; HomeBanc Corp.
Columbus, OH 43219 2004 Company (1998-2001)
DOB 11/12/40
- ------------------------------------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite; Vice President and Controller, 60 None
3435 Stelzer Road since May 2005 The Coca-Cola Company
Columbus, OH 43219
DOB 04/10/58
- ------------------------------------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60 Cox Communications; Humana,
3435 Stelzer Road since May 2000 Communications, Inc. Inc.
Columbus, OH 43219 (1985-2005)
DOB 07/04/42
- ------------------------------------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60 None
3435 Stelzer Road since November Accenture (consulting)
Columbus, OH 43219 2004
DOB 07/13/35
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an Interested Trustee because of his directorships
with affiliates of the Investment Adviser. Mr. Ridley may be deemed an
Interested Trustee because of a material business relationship with the parent
of the Investment Adviser.
241
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) (continued)
<Table>
<Caption>
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS:
R. Jeffrey Young President One-year; since July Senior Vice President, Relationship Management, BISYS
3435 Stelzer Road 2004 Fund Services (since 2002); Vice President, Client
Columbus, OH 43219 Services, BISYS Fund Services; (1997-2002)
DOB 08/22/64
- --------------------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice One-year; since Chief Compliance Officer and Managing Director, Trusco
50 Hurt Plaza President, September 2004; since Capital Management, Inc. (since 2003); President,
Atlanta, GA 30303 Assistant November 2003; since Investment Industry Consultants, LLC (2000-2003)
DOB 10/02/52 Secretary; Chief August 2004
Compliance Officer (respectively)
- --------------------------------------------------------------------------------------------------------------------------------
Joel B. Engle Treasurer, Chief One-year; since May Director, Fund Administration, BISYS Fund Services
3435 Stelzer Road Financial Officer 2006* (since 2006); Self-employed, retail business owner
Columbus, OH 43219 (2003-2006); Vice President, Financial Services, BISYS
DOB 10/31/65 Fund Services (1998- 2003)
- --------------------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary and One-year; since Senior Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Chief Legal February 2005 (since 2004); Director and Counsel, Investors Bank &
Columbus, OH 43219 Officer Trust Company (1999-2004)
DOB 07/08/46
- --------------------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant One-year; since July Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary 2004 (since 2002); Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002)
DOB 04/07/67
- --------------------------------------------------------------------------------------------------------------------------------
Jennifer English Assistant One-year; since Assistant Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Secretary November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005);
Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments
DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management
Company, LLP (1998-2001)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Elected at the Board of Trustee meeting May 9, 2006.
The Trust's Statement of Additional Information includes additional information
about the Trust's trustees and officers. To request your free copy of the
Statement of Additional Information, call toll free 1-888-STI-FUND.
242
ADDITIONAL INFORMATION (UNAUDITED)
EXPENSE EXAMPLES
As a Fund shareholder, you incur two types of costs: (1) transaction costs,
including sales charges (loads) on purchases and redemption fees; and (2)
ongoing costs, including management fees, 12b-1 distribution and/or service fees
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in a Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from October 1, 2005 through March 31,
2006.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06
------------- ------------- ----------------- -----------------
Core Bond Fund.................... I Shares $1,000.00 $ 999.00 $1.40 0.28%
A Shares 1,000.00 996.80 2.64 0.53
C Shares 1,000.00 993.00 6.36 1.28
Florida Tax-Exempt Bond Fund...... I Shares 1,000.00 1,004.30 3.05 0.61
A Shares 1,000.00 1,003.50 3.80 0.76
C Shares 1,000.00 999.30 8.03 1.61
Georgia Tax-Exempt Bond Fund...... I Shares 1,000.00 1,006.70 3.10 0.62
A Shares 1,000.00 1,007.00 3.85 0.77
C Shares 1,000.00 1,002.70 8.09 1.62
High Income Fund.................. I Shares 1,000.00 1,031.80 3.60 0.71
A Shares 1,000.00 1,030.20 5.11 1.01
C Shares 1,000.00 1,025.30 8.68 1.72
High Quality Bond Fund............ I Shares 1,000.00 999.40 1.64 0.33
Intermediate Bond Fund............ I Shares 1,000.00 1,001.30 1.45 0.29
A Shares 1,000.00 1,000.10 2.74 0.55
C Shares 1,000.00 996.20 6.37 1.28
Investment Grade Bond Fund........ I Shares 1,000.00 1,010.00 2.81 0.56
A Shares 1,000.00 1,009.50 4.31 0.86
C Shares 1,000.00 1,005.00 7.80 1.56
Investment Grade Tax-Exempt Bond
Fund............................ I Shares 1,000.00 1,006.90 2.80 0.56
A Shares 1,000.00 1,004.60 4.30 0.86
C Shares 1,000.00 1,001.10 7.83 1.57
Limited Duration Fund............. I Shares 1,000.00 1,020.30 0.20 0.04
Limited-Term Federal Mortgage
Securities Fund................. I Shares 1,000.00 1,006.40 2.90 0.58
A Shares 1,000.00 1,005.40 3.90 0.78
C Shares 1,000.00 1,001.40 7.88 1.58
Maryland Municipal Bond Fund...... I Shares 1,000.00 1,008.90 3.21 0.64
A Shares 1,000.00 1,008.10 3.96 0.79
C Shares 1,000.00 1,003.80 8.19 1.64
North Carolina Tax-Exempt Bond
Fund............................ I Shares 1,000.00 1,007.40 3.35 0.67
A Shares 1,000.00 1,009.10 4.26 0.85
C Shares 1,000.00 1,002.80 8.54 1.71
Seix Floating Rate High Income
Fund............................ I Shares(a) 1,000.00 1,000.20 0.45 0.09
</Table>
243
ADDITIONAL INFORMATION (UNAUDITED) (continued)
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06
------------- ------------- ----------------- -----------------
Seix High Yield Fund.............. I Shares $1,000.00 $1,019.40 $2.42 0.48%
A Shares 1,000.00 1,017.60 3.67 0.73
C Shares 1,000.00 1,013.50 7.43 1.48
Short-Term Bond Fund.............. I Shares 1,000.00 1,020.80 2.42 0.48
A Shares 1,000.00 1,018.70 3.42 0.68
C Shares 1,000.00 1,015.70 7.44 1.48
Short-Term U.S. Treasury
Securities Fund................. I Shares 1,000.00 1,008.40 2.55 0.51
A Shares 1,000.00 1,007.50 3.50 0.70
C Shares 1,000.00 1,002.40 7.59 1.52
Strategic Income Fund............. I Shares 1,000.00 999.10 3.59 0.72
A Shares 1,000.00 996.60 5.08 1.02
C Shares 1,000.00 994.20 8.55 1.72
Total Return Bond Fund............ I Shares 1,000.00 996.60 2.19 0.44
U.S. Government Securities Fund... I Shares 1,000.00 998.90 2.84 0.57
A Shares 1,000.00 998.40 4.33 0.87
C Shares 1,000.00 994.00 7.81 1.57
U.S. Government Securities
Ultra-Short Bond................ I Shares 1,000.00 1,015.70 1.56 0.31
Ultra-Short Bond Fund............. I Shares 1,000.00 1,017.20 1.46 0.29
Virginia Intermediate Municipal
Bond Fund....................... I Shares 1,000.00 1,006.70 3.10 0.62
A Shares 1,000.00 1,006.00 3.85 0.77
C Shares 1,000.00 1,001.70 8.08 1.62
Virginia Municipal Bond Fund...... I Shares 1,000.00 1,006.80 3.25 0.65
A Shares 1,000.00 1,005.10 4.15 0.83
C Shares 1,000.00 1,000.80 8.23 1.65
Prime Quality Money Market Fund... I Shares 1,000.00 1,018.80 2.77 0.55
A Shares 1,000.00 1,018.00 3.52 0.70
C Shares 1,000.00 1,017.50 4.02 0.80
Tax-Exempt Money Market Fund...... I Shares 1,000.00 1,012.60 2.46 0.49
A Shares 1,000.00 1,011.90 3.21 0.64
U.S. Government Securities Money
Market Fund..................... I Shares 1,000.00 1,017.80 3.07 0.61
A Shares 1,000.00 1,017.10 3.82 0.76
U.S. Treasury Money Market Fund... I Shares 1,000.00 1,017.50 2.97 0.59
A Shares 1,000.00 1,016.70 3.72 0.74
Virginia Tax-Free Money Market
Fund............................ I Shares 1,000.00 1,012.90 2.26 0.45
A Shares 1,000.00 1,012.10 3.01 0.60
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
(a) Information shown reflects values for the period from March 2, 2006
(commencement of operations to March 31, 2006) and has been calculated using
expense ratios and rates of return for the same period.
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on a Fund's actual expense ratio and an assumed rate
of return of 5% per year before expenses, which is not the Fund's actual return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other funds.
244
ADDITIONAL INFORMATION (UNAUDITED) (continued)
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. Therefore, the
table is useful in comparing ongoing costs only, and will not help you determine
the relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06
------------- ------------- ----------------- -----------------
Core Bond Fund.................... I Shares $1,000.00 $1,023.54 $1.41 0.28%
A Shares 1,000.00 1,022.29 2.67 0.53
C Shares 1,000.00 1,018.55 6.44 1.28
Florida Tax-Exempt Bond Fund...... I Shares 1,000.00 1,021.89 3.07 0.61
A Shares 1,000.00 1,021.14 3.83 0.76
C Shares 1,000.00 1,016.90 8.10 1.61
Georgia Tax-Exempt Bond Fund...... I Shares 1,000.00 1,021.84 3.13 0.62
A Shares 1,000.00 1,021.09 3.88 0.77
C Shares 1,000.00 1,016.85 8.15 1.62
High Income Fund.................. I Shares 1,000.00 1,021.39 3.58 0.71
A Shares 1,000.00 1,019.90 5.09 1.01
C Shares 1,000.00 1,016.36 8.65 1.72
High Quality Bond Fund............ I Shares 1,000.00 1,022.19 2.77 0.33
Intermediate Bond Fund............ I Shares 1,000.00 1,023.49 1.46 0.29
A Shares 1,000.00 1,022.19 2.77 0.55
C Shares 1,000.00 1,018.55 6.44 1.28
Investment Grade Bond Fund........ I Shares 1,000.00 1,022.14 2.82 0.56
A Shares 1,000.00 1,020.64 4.33 0.86
C Shares 1,000.00 1,017.15 7.85 1.56
Investment Grade Tax-Exempt Bond
Fund............................ I Shares 1,000.00 1,022.14 2.82 0.56
A Shares 1,000.00 1,020.64 4.33 0.86
C Shares 1,000.00 1,017.10 7.90 1.57
Limited Duration Fund............. I Shares 1,000.00 1,024.73 0.20 0.04
Limited-Term Federal Mortgage
Securities Fund................. I Shares 1,000.00 1,022.04 2.92 0.58
A Shares 1,000.00 1,021.04 3.93 0.78
C Shares 1,000.00 1,017.05 7.95 1.58
Maryland Municipal Bond Fund...... I Shares 1,000.00 1,021.74 3.23 0.64
A Shares 1,000.00 1,020.99 3.98 0.79
C Shares 1,000.00 1,016.75 8.25 1.64
North Carolina Tax-Exempt Bond
Fund............................ I Shares 1,000.00 1,021.59 3.38 0.67
A Shares 1,000.00 1,020.69 4.28 0.85
C Shares 1,000.00 1,016.40 8.60 1.71
Seix Floating Rate High Income
Fund............................ I Shares(a) 1,000.00 1,024.48 0.45 0.09
Seix High Yield Fund.............. I Shares 1,000.00 1,022.54 2.42 0.48
A Shares 1,000.00 1,021.29 3.68 0.73
C Shares 1,000.00 1,017.55 7.44 1.48
Short-Term Bond Fund.............. I Shares 1,000.00 1,022.54 2.42 0.48
A Shares 1,000.00 1,021.54 3.43 0.68
C Shares 1,000.00 1,017.55 7.44 1.48
Short-Term U.S. Treasury
Securities Fund................. I Shares 1,000.00 1,022.39 2.57 0.51
A Shares 1,000.00 1,021.44 3.53 0.70
C Shares 1,000.00 1,017.35 7.64 1.52
Strategic Income Fund............. I Shares 1,000.00 1,021.34 3.63 0.72
A Shares 1,000.00 1,019.85 5.14 1.02
C Shares 1,000.00 1,016.36 8.65 1.72
Total Return Bond Fund............ I Shares 1,000.00 1,022.74 2.22 0.44
U.S. Government Securities Fund... I Shares 1,000.00 1,022.09 2.87 0.57
A Shares 1,000.00 1,020.59 4.38 0.87
C Shares 1,000.00 1,017.10 7.90 1.57
U.S. Government Securities
Ultra-Short Bond................ I Shares 1,000.00 1,023.39 1.56 0.31
</Table>
245
ADDITIONAL INFORMATION (UNAUDITED) (continued)
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06
------------- ------------- ----------------- -----------------
Ultra-Short Bond Fund............. I Shares $1,000.00 $1,023.49 $1.46 0.29%
Virginia Intermediate Municipal
Bond Fund....................... I Shares 1,000.00 1,021.84 3.13 0.62
A Shares 1,000.00 1,021.09 3.88 0.77
C Shares 1,000.00 1,016.85 8.15 1.62
Virginia Municipal Bond Fund...... I Shares 1,000.00 1,021.69 3.28 0.65
A Shares 1,000.00 1,020.79 4.18 0.83
C Shares 1,000.00 1,016.70 8.30 1.65
Prime Quality Money Market Fund... I Shares 1,000.00 1,022.19 2.77 0.55
A Shares 1,000.00 1,021.44 3.53 0.70
C Shares 1,000.00 1,020.94 4.03 0.80
Tax-Exempt Money Market Fund...... I Shares 1,000.00 1,022.49 2.47 0.49
A Shares 1,000.00 1,021.74 3.23 0.64
U.S. Government Securities Money
Market Fund..................... I Shares 1,000.00 1,021.89 3.07 0.61
A Shares 1,000.00 1,021.14 3.83 0.76
U.S. Treasury Money Market Fund... I Shares 1,000.00 1,021.99 2.97 0.59
A Shares 1,000.00 1,021.24 3.73 0.74
Virginia Tax-Free Money Market
Fund............................ I Shares 1,000.00 1,022.69 2.27 0.45
A Shares 1,000.00 1,021.94 3.02 0.60
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
(a) Information shown reflects values for the period from March 2, 2006
(commencement of operations to March 31, 2006) and has been calculated using
expense ratios and rates of return for the same period.
PROXY VOTING
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-888-STI-FUND. The information also is
included in the Funds' Statement of Additional Information, which is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio
securities held during the most recent twelve months ended June 30 is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review or, for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
246
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(This page intentionally left blank)
INVESTMENT ADVISER:
Trusco Capital Management, Inc.
This information must be preceded or accompanied by a current prospectus for
each Fund described. An investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before investing or sending
money. This and other important information about STI Classic Funds can be found
in the Fund's prospectus. For additional information, please call
1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus
carefully before investing.
DISTRIBUTOR:
BISYS Fund Services Limited Partnership
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
STI CLASSIC FUNDS
STI-ABMM-0306
5/06
2006 ANNUAL REPORT
INSTITUTIONAL MONEY MARKET FUNDS
MARCH 31, 2006
STI CLASSIC FUNDS
TABLE OF CONTENTS
STI CLASSIC FUNDS March 31, 2006
Letter to Shareholders..................................................... 1
MANAGEMENT DISCUSSION AND ANALYSIS
Classic Institutional Cash Management Money Market Fund.................... 3
Classic Institutional Municipal Cash Reserve Money Market Fund............. 4
Classic Institutional U.S. Government Securities Money Market Fund......... 5
Classic Institutional U.S. Treasury Securities Money Market Fund........... 6
Schedules of Portfolio Investments......................................... 8
Statements of Assets and Liabilities....................................... 22
Statements of Operations................................................... 23
Statements of Changes in Net Assets........................................ 24
Financial Highlights....................................................... 26
Notes to Financial Statements.............................................. 28
Report of Independent Registered Public Accounting Firm.................... 34
Trustees and Officers of the STI Classic Funds............................. 35
Additional Information..................................................... 37
LETTER TO SHAREHOLDERS
March 31, 2006
Dear Valued STI Classic Funds Shareholder,
Another fiscal year has come to a successful close. The environment was
challenging, and the path over the past twelve months was uneven, but both the
economy and financial markets navigated the setbacks and emerged with positive
results. The STI Classic Funds performed very well during these often trying
times, with peer group outperformance by 27 stock and bond funds across a number
of diverse styles and asset classes. This outperformance helped achieve
competitive returns with well-diversified portfolios. We will highlight some key
developments in the economy and financial markets, but would first like to thank
you for your confidence and support in choosing the STI Classic Funds to help
grow your investments. We greatly value the opportunity to serve you and
continue to strive to meet your expectations every day.
The overall economic backdrop for the markets was positive despite natural,
economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew
3.5% for the year ended March 2006, paced by strong double-digit gains in
business capital spending. "Headline" inflation, as measured by the Consumer
Price Index, increased 3.4% during the same period, which was 1% higher than in
the previous fiscal year. Energy prices, as everyone is painfully aware, were
largely responsible for the acceleration. However, if energy and food are taken
out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting
monetary policy, the resulting core inflation rate was just 2.1%.
Unfortunately, the economy did not grow at an "average" pace for the entire
year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both
sociological and economic terms. Though the storms occurred in the third quarter
of 2005, the statistical impact of the devastation was concentrated in the
fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy
infrastructure from the storm helped drive prices sharply higher, draining
discretionary dollars from consumer wallets and business bottom lines. Energy
prices retreated somewhat during the fourth quarter, but then moved higher in
the first quarter. Fed policy was another headwind for the economy. The central
bank raised short-term interest rates fifteen consecutive times since June 2004,
culminating in the 4.75% fed funds rate on March 31, 2006. During most of this
time, the impact of the tightening was limited to short-term rates, but after
the yield curve flattened at the end of 2005 (short and long rate roughly
equal), long-term rates, such as home mortgage rates, also moved higher, making
borrowing more expensive.
The continued growth in the economy, combined with reasonable valuations, helped
equities move broadly higher during the fiscal year. The S&P 500 Index returned
11.72%, including dividends, during the twelve months ended March 31, 2006,
compared with 6.69% in the previous year. Energy stocks, boosted by the increase
in oil prices, out performed other major sectors in the index for the year. In
addition, above average gains were posted in the financial, telecom, and
technology sectors. Consumer stocks underperformed, reflecting the pressure on
consumers as discussed earlier. The mix of sector performance did not overly
benefit either the value or growth style for the year, except in small-caps,
where growth outperformed value by four percentage points. Small-cap and mid-cap
stocks performed very well over the past year, with a 25.85% gain in the Russell
2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International
stocks also performed very well, as evidenced by the 24.41% gain in the MSCI
EAFE
Index.
In the fixed-income markets, the yield on the 10-year Treasury note was
relatively "range-bound" for much of the year, but continued pressure from
short-term rate increases and higher energy prices, among other factors pushed
the yield to 4.85% by March. As a result, bond returns, as measured by the
Lehman Brothers Aggregate Bond Index, returned a positive, but below average,
2.26% for the year ended March 31. Higher quality bonds, such as Treasuries,
tended to lag the overall investment-grade index. The standout performer in the
fixed-income market was the High Yield sector, which returned 7.43% during the
year.
The STI Classic Funds performed very well during this period, as 27 funds across
a wide spectrum of investment styles, generated above-average returns. These
included large-cap growth and value, mid-cap, small-cap growth and value,
short-and intermediate-term bonds, high yield, and municipal bonds. Many of
these funds were highlighted for their strong performance in publications such
as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal
Finance. In addition to strong performance, we reduced the internal expense
ratios on many of the funds to expressly benefit you, our valued shareholder.
1
LETTER TO SHAREHOLDERS
Looking ahead, we expect continued economic growth, though the pace over the
next year will likely be below that of the past year. This may allow the Fed to
keep short-term rates steady for awhile as long as inflation remains contained.
It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With
growth likely to slow, interest rates relatively high as compared to the last
few years, and elevated energy prices still a threat, our strategy is to
emphasize quality company holdings that we believe are best able to weather a
more challenging environment.
We close this letter with a special thanks to you, and also to Douglas Phillips,
CFA, the founding president of Trusco Capital Management, who retired on
December 31, 2005. Under Doug's outstanding leadership, the STI Classic Funds
thrived even in the most challenging markets, to become one of the nation's
leading mutual fund families. Of particular importance, we are most grateful to
Doug Phillips for his strong sense of discipline, integrity, and commitment to
the highest levels of client service. He will be missed, but his legacy will
endure.
Sincerely,
/s/ David H. Edison
- -------------------------------------
David H. Eidson
Chairman and CEO
/s/ Robert J. Rhodes
- -------------------------------------
Robert J. Rhodes, CFA
Executive Vice President
(1) The Gross Domestic Product ("GDP") is the monetary value of all the
finished goods and services produced within a country's borders in a
specific time period, though GDP is usually calculated on an annual basis.
It includes all of private and public consumption, government outlays,
investments and exports less imports that occur within a defined territory.
2
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert S. Bowman, CFA
INVESTMENT CONCERNS
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
The Fund was positioned for a rising rate environment by overweighting floating
rate assets and maintaining shorter fixed maturities. During the period the
Federal Reserve has increased interest rates at each Federal Open Market
Committee ("FOMC") meeting benefiting the performance of the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve could raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR(1) curve later in the year.
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL
YIELDS (as of March 31, 2006) SHARES
- ----------------------------- -------------
7 Day Average Yield 4.50%
7 Day Effective Yield 4.60%
30 Day Yield 4.41%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 23.4%
3-14 Days 44.6%
15-29 Days 2.2%
30-89 Days 10.0%
90-365 Days 19.8%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
3
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert S. Bowman, CFA
INVESTMENT CONCERNS
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND seeks TO preserve THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2006?
The Fund was positioned for a rising rate environment by overweighting floating
rate assets and maintaining shorter fixed maturities. During the period the
Federal Reserve has increased interest rates at each Federal Open Market
Committee ("FOMC") meeting benefiting the performance of the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve could raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR(1) curve later in the year.
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL
YIELDS (as of March 31, 2006) SHARES
- ----------------------------- -------------
7 Day Average Yield 2.89%
7 Day Effective Yield 2.93%
30 Day Yield 2.86%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 15.8%
3-14 Days 80.2%
180-365 Days 4.0%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
4
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
PORTFOLIO MANAGER
- - Robert S. Bowman, CFA
INVESTMENT CONCERNS
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUND'S SHARES.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
The Fund was positioned for a rising rate environment by overweighting floating
rate assets and maintaining shorter fixed maturities. During the period the
Federal Reserve has increased interest rates at each Federal Open Market
Committee ("FOMC") meeting benefiting the performance of the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve could raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity could alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. We believe the portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
LIBOR(1) curve later in the year.
(1) LIBOR is an interest rate at which banks can borrow funds, in marketable
size, from other banks in the London interbank market. The LIBOR is fixed
on a daily basis by the British Bankers' Association. The LIBOR is derived
from a filtered average of the world's most creditworthy banks' interbank
deposit rates for larger loans with maturities between overnight and one
full year.
YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL
YIELDS (as of March 31, 2006) SHARES
- ----------------------------- -------------
7 Day Average Yield 4.37%
7 Day Effective Yield 4.46%
30 Day Yield 4.29%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 57.1%
3-14 Days 13.1%
15-29 Days 3.1%
30-59 Days 6.3%
60-89 Days 2.1%
90-179 Days 5.2%
180-365 Days 13.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
5
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
INVESTMENT CONCERNS
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
MANAGEMENT DISCUSSION & ANALYSIS
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2006?
The Fund was positioned for a rising rate environment by maintaining shorter
fixed maturities. For the period the Federal Reserve has increased interest
rates at each Federal Open Market Committee ("FOMC") meeting benefiting the
performance of the Fund.
HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
Our outlook is that the Federal Reserve could raise interest rates at the next
FOMC meeting to guard against a further rise in inflation. We expect a slowing
in economic growth led by housing for the second half of this year. This slowing
in economic activity may alleviate inflation concerns and allow the Federal
Reserve to finish raising rates. The portfolio has been structured to
potentially benefit from a near term rise in rates and then a flattening of the
yield curve later in the year.
YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL CORPORATE
YIELDS (as of March 31, 2006) SHARES TRUST SHARES
- ----------------------------- ------------- ------------
7 Day Average Yield 4.42% 4.17%
7 Day Effective Yield 4.52% 4.26%
30 Day Yield 4.30% 4.05%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2006)(2)
as a percentage of total investments
(PIE CHART)
1-2 Days 60.8%
3-14 Days 33.3%
30-89 Days 3.2%
90-365 Days 2.7%
(2) Portfolio composition is subject to change
6
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7
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
CERTIFICATES OF DEPOSIT (16.0%)
BANKS (13.6%)
Calyon NY, 4.795%,
02/02/07 (b) 50,000 50,000
Canadian Imperial Bank NY,
4.800%, 01/29/07 (b) 75,000 75,000
PNC Bank N.A., 4.790%,
01/24/07 35,000 35,001
Regions Bank, 3.690%,
05/25/06 35,000 35,000
Royal Bank of Scotland NY,
4.765%, 01/24/07 55,000 55,002
Toronto Dominion Bank (The),
3.805%, 06/30/06 30,000 30,000
Toronto Dominion Bank (The),
4.720%, 12/29/06 75,000 75,004
Wells Fargo Bank N.A.,
4.800%, 01/19/07 (b) 50,000 50,000
----------
405,007
----------
DIVERSIFIED FINANCIAL SERVICES (2.4%)
HBOS Treasury Services PLC,
3.675%, 06/02/06 35,000 35,001
HBOS Treasury Services PLC,
3.755%, 06/26/06 35,000 35,002
----------
70,003
----------
Total Certificates of Deposit
(Cost $475,010) 475,010
----------
COMMERCIAL PAPERS (18.8%)
BANKS (8.6%)
Australia & New Zealand
National Ltd., 3.607%,
04/27/06 (c) (d) 65,000 64,837
Australia & New Zealand
National Ltd., 4.368%,
09/28/06 (c) (d) 30,000 29,372
Credit Suisse First Boston
USA, Inc., 4.723%,
10/13/06 (c) (d) 50,000 48,765
DEPFA Bank PLC, 3.693%,
05/30/06 (c) (d) 30,000 29,825
Spintab AG, 4.930%,
06/29/06 (c) 50,000 49,398
UBS Finance Delaware LLC,
4.824%, 05/22/06 (c) 35,000 34,762
----------
256,959
----------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (8.5%)
Bear Stearns & Co., Inc.,
4.810%, 09/15/06 (b) (d) 50,000 50,000
Cheyne Finance LLC, 4.828%,
05/11/06 (c) (d) 25,000 24,867
Danske Corp., 4.736%,
12/29/06 (c) 50,000 48,292
New Center Asset Trust, Ser
A-1, 4.540%, 04/03/06 (c) 50,000 49,988
Surrey Funding Corp.,
4.931%, 06/30/06 (c) (d) 50,000 49,391
Whistlejacket Capital Ltd.,
4.815%, 04/05/06 (c) (d) 30,000 29,984
----------
252,522
----------
INSURANCE (1.7%)
Swiss RE Financial Products,
4.705%, 05/25/06 (c) (d) 50,000 49,652
----------
Total Commercial Papers (Cost
$559,133) 559,133
----------
CORPORATE BONDS (37.8%)
BANKS (5.0%)
Marshall & Ilsley Bank,
5.176%, 12/15/06 100,000 100,259
National City Bank, 4.795%,
01/22/07 (b) 50,000 50,000
----------
150,259
----------
DIVERSIFIED FINANCIAL SERVICES (28.9%)
Beta Finance, Inc., 4.820%,
07/25/06 (b) (d) 30,000 30,000
Beta Finance, Inc., 4.510%,
10/20/06 (d) 30,000 30,000
Beta Finance, Inc., 4.808%,
01/11/07 (b) (d) 30,000 29,998
BMW US Capital LLC, 4.149%,
06/07/06 (b) 50,000 50,031
CC USA, Inc., 4.850%,
03/20/07 (b) (d) 30,000 29,997
Cheyne Finance LLC, 4.817%,
03/26/07 (b) (d) 50,000 49,994
K2 (USA) LLC, 4.820%,
11/15/06 (b) (d) 50,000 49,997
K2 (USA) LLC, 4.810%,
01/11/07 (b) (d) 35,000 34,997
Liberty Light US Capital,
4.680%, 05/11/06 (b) (d) 50,000 49,999
Liberty Light US Capital,
4.820%, 01/12/07 (b) (d) 75,000 74,995
</Table>
See Notes to Financial Statements.
8
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Liquid Funding Ltd., 4.641%,
05/02/06 (b) (d) 50,000 50,000
Liquid Funding Ltd., 4.810%,
08/29/06 (b) (d) 50,000 50,000
Liquid Funding Ltd., 4.845%,
12/29/06 (b) (d) 35,000 34,996
Morgan Stanley, 4.721%,
04/04/07 (b) 25,000 25,000
Sigma Finance, Inc., 4.820%,
08/04/06 (b) (d) 25,000 25,000
Sigma Finance, Inc., 4.820%,
01/03/07 (b) (d) 35,000 35,000
Sigma Finance, Inc., 4.820%,
01/16/07 (b) (d) 50,000 50,000
Stanfield Victoria Funding
LLC, 4.815%, 12/15/06 (b)
(d) 50,000 49,991
Stanfield Victoria Funding
LLC, 4.830%, 01/08/07 (b)
(d) 35,000 34,997
Whistlejacket Capital Ltd.,
4.820%, 01/12/07 (b) (d) 50,000 49,994
Whistlejacket Capital Ltd.,
4.820%, 01/17/07 (b) (d) 25,000 24,997
----------
859,983
----------
INVESTMENT COMPANIES (3.9%)
Dorada Finance, Inc.,
4.820%, 07/25/06 (b) (d) 30,000 30,000
Dorada Finance, Inc.,
4.235%, 09/11/06 (d) 35,000 35,000
Dorada Finance, Inc.,
4.810%, 01/08/07 (b) (d) 50,000 49,996
----------
114,996
----------
Total Corporate Bonds (Cost
$1,125,238) 1,125,238
----------
DEMAND NOTES (1.0%)
DIVERSIFIED FINANCIAL SERVICES (1.0%)
Carmichael Properties LLC,
4.880%, 10/01/20 (b) 2,785 2,785
Gasmor Corp., 4.910%,
02/01/31 (b) 3,520 3,520
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
LP Pinewood SPV LLC, 4.830%,
02/01/18 (b) 14,900 14,900
Sprenger Enterprises, Inc.,
4.880%, 10/01/35 (b) 10,000 10,000
----------
Total Demand Notes (Cost
$31,205) 31,205
----------
MASTER NOTES (5.2%)
BANKS (5.2%)
Bank of America Corp.,
4.945%, 09/14/06 (b) 154,960 154,960
----------
Total Master Notes (Cost
$154,960) 154,960
----------
MUNICIPAL BONDS (16.8%)
ALABAMA (0.3%)
Alabaster, Ser A, GO,
4.830%, 04/01/14,
AMBAC (b) 9,355 9,355
----------
ALASKA (3.2%)
Alaska State Housing Finance
Corp., Ser C, RB, 4.780%,
12/01/32 (b) 73,900 73,900
Alaska State Housing Finance
Corp., Ser D, RB, 4.920%,
12/01/32 (b) 20,200 20,200
----------
94,100
----------
CALIFORNIA (1.7%)
California Housing Finance
Agency, Ser C, RB, 4.890%,
02/01/41, LOC: Landesbank
Hessen-Thueringen (b) 3,300 3,300
Oakland-Alameda County
Coliseum Authority, Ser D,
RB, 4.840%, 02/01/11 (b) 23,800 23,800
Santa Rosa Rancheria, Tachi
Yokut Tribe, RB, 4.850%,
09/01/19, LOC: Bank One
N.A. (b) 22,000 22,000
----------
49,100
----------
</Table>
See Notes to Financial Statements.
9
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
COLORADO (4.1%)
Colorado Housing & Finance
Authority, RB, 4.920%,
11/01/32, LOC: JP Morgan
Chase Bank (b) 31,255 31,255
Colorado Housing & Finance
Authority, RB, 4.920%,
11/01/33, LOC: JP Morgan
Chase Bank (b) 17,350 17,350
Colorado Housing & Finance
Authority, RB, 4.920%,
10/01/34, FHLB (b) 19,500 19,500
Colorado Housing & Finance
Authority, RB, 4.920%,
11/01/34, LOC: Dexia
Credit Local (b) 22,905 22,905
Colorado Housing & Finance
Authority, RB, 4.920%,
11/01/35, LOC: Lloyds TSB
Bank PLC (b) 6,475 6,475
Colorado Housing & Finance
Authority, RB, 4.920%,
05/01/41, LOC: Landesbank
Hessen-Thueringen (b) 21,200 21,200
----------
118,685
----------
FLORIDA (0.2%)
Florida Housing Finance
Corp., RB, 4.830%,
01/15/35, FNMA (b) 2,500 2,500
Florida Housing Finance
Corp., RB, 4.890%,
06/15/36, LOC: Bank of
America N.A. (b) 2,900 2,900
Orange County Housing
Finance Authority,
Multifamily, Ser D, RB,
4.870%, 07/15/34 (b) 1,900 1,900
----------
7,300
----------
ILLINOIS (1.8%)
Champaign, Ser B, GO,
4.880%, 01/01/24, LOC:
Bank One N.A. (b) 4,900 4,900
Illinois Student Assistance
Community, Student Loan,
Ser D, RB, 4.830%,
09/01/23, LOC: Bank of
America N.A. (b) 40,000 40,000
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
ILLINOIS--CONTINUED
Wheaton College, University
Improvements, Ser A, RB,
4.920%, 10/01/35, LOC: JP
Morgan Chase Bank (b) 10,000 10,000
----------
54,900
----------
MICHIGAN (1.5%)
Michigan State Housing
Development Authority,
Rental Housing, Ser C, RB,
4.820%, 10/01/20 (b) 45,035 45,035
----------
MISSISSIPPI (1.7%)
Mississippi Development Bank
Special Obligation, Mceda
Board Project, RB, 4.880%,
12/01/23, AMBAC (b) 3,820 3,820
Mississippi State, Nissan
Project, Ser A, GO,
4.880%, 11/01/28, LOC:
Bank of America N.A. (b) 47,700 47,700
----------
51,520
----------
NEW YORK (1.2%)
Babylon Industrial
Development Agency,
Topiderm, Inc. Project,
Ser B, RB, 4.860%,
03/01/24, LOC: Citibank
N.A. (b) 2,450 2,450
New York City Housing
Development Corp., Chelsea
Center, RB, 4.820%,
06/01/33, LOC: Bayerische
Landesbank (b) 27,500 27,500
New York State Housing
Finance Agency, Service
Contract, RB, 4.850%,
09/15/08, LOC: Dexia
Credit Local (b) 7,200 7,200
----------
37,150
----------
TEXAS (0.2%)
Texas State, Veteran Housing
Fund, Ser II-D, GO,
4.850%, 06/01/20, LOC:
Dexia Credit Local (b) 7,000 7,000
----------
</Table>
See Notes to Financial Statements.
10
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
VIRGINIA (0.9%)
Newport News Economic
Development Authority,
Ship Building Project, Ser
A, RB, 4.930%, 07/01/31,
LOC: First Union National
Bank (b) 21,305 21,305
Newport News Economic
Development Authority,
Ship Building Project, Ser
B, RB, 4.880%, 07/01/31,
LOC: First Union National
Bank (b) 4,280 4,280
----------
25,585
----------
Total Municipal Bonds (Cost
$499,730) 499,730
----------
REPURCHASE AGREEMENTS (3.8%)
ABN AMRO Bank N.V., 4.725%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$8,110,651 (collateralized
by U.S. Treasury
Obligations; DN, due
08/31/06; market value
$8,269,821) 8,108 8,108
Bear Stearns & Co., Inc.,
4.745%, dated 03/31/06, to
be repurchased on
04/03/06, repurchase price
$9,900,768 (collateralized
by U.S. Government
Agencies; 5.000%, due
06/15/31; market value
$10,095,181) 9,897 9,897
BNP Paribas, 4.655%, dated
03/31/06, to be
repurchased on 04/03/06,
repurchase price
$27,817,456
(collateralized by U.S.
Government Agencies;
4.600-5.020%, due 04/11/08
- 11/07/08; market value
$28,364,910) 27,807 27,807
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Lehman Brothers, Inc.,
4.755%, dated 03/31/06, to
be repurchased on
04/03/06, repurchase price
$8,526,776 (collateralized
by U.S. Government
Agencies; DN, due 01/01/24
- 02/01/36; market value
$8,694,873) 8,523 8,523
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to
be repurchased on
04/03/06, repurchase price
$11,103,825
(collateralized by U.S.
Government Agencies;
5.500%, due 02/01/35;
market value $11,322,720) 11,099 11,099
UBS Warburg LLC, 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$47,748,179
(collateralized by U.S.
Government Agencies;
DN-6.000%, due 08/15/29 -
04/25/34; market value
$48,685,287) 47,729 47,729
----------
Total Repurchase Agreements
(Cost $113,163) 113,163
----------
Total Investments (Cost
$2,958,439) (a) -- 99.4% 2,958,439
Other assets in excess of
liabilities -- 0.6% 17,082
----------
Net Assets -- 100.0% $2,975,521
==========
</Table>
- ---------------
(a) Aggregate cost for federal income tax and financial reporting purposes is
the same.
(b) Variable rate security. Rate presented represents rate in effect at March
31, 2006. Maturity date represents actual maturity date.
(c) Rate represents the effective yield at purchase.
(d) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
See Notes to Financial Statements.
11
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONCLUDED
<Table>
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
DN -- Discount Note
FHLB -- Security insured by Federal Home Loan Bank
FNMA -- Security insured by Fannie Mae
GO -- General Obligation
LLC -- Limited Liability Corporation
LOC -- Line of Credit
PLC -- Public Limited Company
RB -- Revenue Bond
Ser -- Series
</Table>
See Notes to Financial Statements.
12
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MUNICIPAL BONDS (98.1%)
ALABAMA (0.6%)
Alabama Special Care
Facilities, Financing
Authority Hospital Revenue,
Depreciable Assets, RB,
3.130%, 04/01/15, FGIC (b) 600 600
Daphne-Villa, Mercy Alabama
Special Care Facilities
Financing Authority, Mercy
Medical Project, RB, 3.190%,
12/01/30, LOC: Southtrust
Bank N.A. (b) 100 100
--------
700
--------
ARKANSAS (0.3%)
Arkansas State Development
Finance Authority, Solid
Waste Disposal, Waste
Management of Arkansas
Project, RB, AMT, 3.200%,
06/01/28, LOC: Fleet
National Bank (b) 350 350
--------
CALIFORNIA (12.7%)
California State, Ser MT-162,
GO, 3.100%, 08/01/17,
Callable 08/01/15 @ 100, FSA
(b) 2,000 2,000
California Statewide
Communities Development
Authority, Multifamily, RB,
AMT, 3.270%, 08/01/29, LOC:
Merrill Lynch Capital
Services (b) 2,000 2,000
Los Angeles Regional Airports
Improvement Corp., Terminal
Facility, Los Angeles
International Airport, RB,
AMT, 3.230%, 12/01/25, LOC:
Societe Generale (b) 7,000 7,000
Pajaro Valley Unified School
District, Ser PT-2779, GO,
3.210%, 08/01/22, Callable
08/01/15 @ 100, FSA (b) 5,000 5,000
--------
16,000
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
COLORADO (2.4%)
Dawson Ridge Metropolitan
District No 1, Ser PZ-88,
GO, 3.220%, 10/01/22, LOC:
Merrill Lynch Capital
Services (b) 3,000 3,000
--------
CONNECTICUT (0.8%)
Connecticut State, GO, 3.190%,
06/15/11, LOC: Merrill Lynch
Capital Services (b) 950 950
--------
FLORIDA (11.9%)
Collier County Housing Finance
Authority, Brittany
Apartments Project, Ser A,
RB, AMT, 3.200%, 07/15/34,
FNMA (b) 2,050 2,050
Florida Housing Finance
Agency, Ashley Lake II
Project, RB, AMT, 3.200%,
12/01/11, FHLMC (b) 250 250
Florida Housing Finance
Agency, Multifamily Housing,
RB, AMT, 3.200%, 12/01/25
(b) 355 355
Florida Housing Finance Corp.,
Multifamily Housing,
Northbridge Apartments, Ser
V-1, RB, AMT, 3.190%,
06/15/36, LOC: Bank of
America N.A. (b) 5,000 5,000
Florida Housing Finance Corp.,
Ser MT-169, RB, 3.250%,
10/01/32, FHLB 3,000 3,000
Lake County School Board, COP,
3.210%, 06/01/30, AMBAC (b) 2,000 2,000
Marion County Hospital
District, Health Systems
Improvement, Munroe Regional
Health, RB, 3.200%,
10/01/30, LOC: Amsouth Bank
of Florida (b) 980 980
</Table>
See Notes to Financial Statements.
13
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
FLORIDA--CONTINUED
Orange County Housing Finance
Authority, Multifamily
Housing, Cove at Lady Lake
Apartments, Ser A, RB, AMT,
3.210%, 05/15/38, LOC:
Amsouth Bank (b) (c) 450 450
Orange County Housing Finance
Authority, Multifamily
Housing, Northbridge Phase
II, Ser A, RB, AMT, 3.200%,
09/15/36, LOC: Southtrust
Bank N.A. (b) 900 900
--------
14,985
--------
GEORGIA (0.6%)
Newnan Development Authority,
Multifamily Housing, Club at
Newnan Crossing Project, RB,
AMT, 3.220%, 09/15/36, LOC:
Bank of America N.A. (b) 800 800
--------
ILLINOIS (5.7%)
Chicago O'Hare International
Airport, General Airport,
Second Lien, Ser B, RB,
3.130%, 01/01/15, LOC:
Societe Generale (b) 800 800
Chicago, Single Family
Mortgage, RB, AMT, 3.250%,
04/01/07, FNMA (b) 400 400
Illinois Development Finance
Authority, Lyric Opera
Chicago Project, RB, 3.220%,
12/01/28 (b) 1,000 1,000
Illinois Finance Authority,
Alexian Brothers Health, RB,
3.180%, 04/01/35, LOC: Bank
One N.A. (b) 200 200
Illinois Health Facilities
Authority, Decatur Memorial
Hospital Project, Ser A,
3.190%, 11/15/24, MBIA (b) 200 200
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
ILLINOIS--CONTINUED
Illinois Housing Development
Authority, Illinois Center
Apartments, RB, 3.130%,
01/01/08, FHLMC (b) 4,200 4,200
Jackson-Union Counties
Regional Port Facilities,
Enron Transportation
Services, RB, 3.200%,
04/01/24, LOC: First Union
National Bank (b) 225 225
Metropolitan Pier & Exposition
Authority, Dedicated State
Tax, RB, 3.250%, 12/15/21,
MBIA (b) 100 100
--------
7,125
--------
INDIANA (8.5%)
Evansville Vanderburgh Public
Leasing Corp, Ser PT-2694,
RB, 3.210%, 01/15/24,
Callable 07/15/15 @ 100,
AMBAC (b) 2,000 2,000
Merrillville Multi School
Building Corp, Ser PT-2842,
RB, 3.210%, 07/15/22,
Callable 07/15/15 @ 100,
FGIC (b) 3,500 3,500
Wayne Township, Marion County
School Building Corp., RB,
3.210%, 07/15/26, LOC:
Merrill Lynch Capital
Services (b) 2,200 2,200
West Clark 2000 School
Building Corp, Ser PT-2631,
RB, 3.210%, 01/15/23,
Callable 01/15/15 @ 100,
MBIA (b) 2,985 2,985
--------
10,685
--------
IOWA (1.8%)
Des Moines City, 3.150%,
04/05/06 2,300 2,300
--------
</Table>
See Notes to Financial Statements.
14
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
KENTUCKY (0.3%)
Kentucky Economic Development
Finance Authority, Hospital
Facilities, Health Alliance,
Ser C, RB, 3.190%, 01/01/22,
MBIA (b) 400 400
--------
MARYLAND (2.5%)
Montgomery County Housing
Opportunities Commission,
Multifamily Housing
Development, Ser C, RB,
3.140%, 07/01/37, LOC: DEPFA
Bank PLC (b) 1,000 1,000
Montgomery County Housing
Opportunities Commission,
RB, AMT, 3.190%, 06/01/30,
FNMA (b) 2,200 2,200
--------
3,200
--------
MASSACHUSETTS (4.6%)
Massachusetts State
Development Finance Agency,
Boston University, Ser R-2,
RB, 3.140%, 10/01/42 (b) 4,000 4,000
Massachusetts State
Development Finance Agency,
Multifamily, Ser PT-514, RB,
3.280%, 01/01/24, LOC:
Merrill Lynch Capital
Services (b) 1,800 1,800
--------
5,800
--------
MICHIGAN (4.0%)
Michigan State Housing
Development Authority,
Multifamily, RB, AMT,
3.210%, 06/01/18, LOC: Bank
of New York (b) 100 100
Michigan State Housing
Development Authority,
Rental Housing, Ser A, RB,
AMT, 3.190%, 10/01/39, FGIC
(b) 5,000 5,000
--------
5,100
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MISSISSIPPI (4.0%)
Mississippi Development Bank,
Special Obligation, Ser
PT-3303, RB, 3.210%,
12/01/27, Callable 12/01/15
@ 100, AMBAC (b) 5,000 5,000
--------
NEW JERSEY (3.0%)
Essex County Improvement
Authority, 3.200%, 10/01/20,
FGIC (b) 2,250 2,250
New Jersey Transportation
Trust Fund Authority, Ser
PT-3314, RB, 3.200%,
06/15/19, Callable 06/15/15
@ 100, FSA (b) 1,490 1,490
--------
3,740
--------
NEW YORK (18.6%)
Long Island Power Authority,
New York Electric System,
Ser PA-1150, RB, 3.200%,
09/01/33, LOC: Merrill Lynch
Capital Services (b) 5,000 5,000
New York City Housing
Development Corp.,
Multifamily, East 165th
Street Project, Ser A, RB,
AMT, 3.210%, 06/01/36, LOC:
Citibank N.A. (b) 3,800 3,800
New York City Housing
Development Corp.,
Multifamily, Manhattan Court
Development, Ser A, RB, AMT,
3.230%, 06/01/36, LOC:
Citibank N.A. (b) 100 100
New York City Housing
Development Corp.,
Multifamily, St Renaissance
Court, Ser A, RB, AMT,
3.190%, 06/01/37, FHLMC (b) 2,000 2,000
New York City Transitional
Finance Authority, NYC
Recovery, Ser 3, Subser 3C,
RB, 3.130%, 11/01/22, LOC:
Dexia Credit Local (b) 1,000 1,000
</Table>
See Notes to Financial Statements.
15
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
NEW YORK--CONTINUED
New York Housing Finance
Agency, Avalon Chrystie
Place I Housing, RB, AMT,
3.210%, 11/01/36, LOC: Fleet
National Bank (b) 300 300
New York State Dormitory
Authority, Ser PT-746, RB,
3.400%, 10/01/17, Callable
10/01/12 @ 100, MBIA (b) 3,500 3,500
New York, Ser PT-2878, GO,
3.200%, 04/01/25, Callable
04/01/15 @ 100, LOC: Merrill
Lynch Capital Services (b) 3,900 3,900
New York, Ser PT-3171, GO,
3.200%, 09/01/22, Callable
09/01/15 @ 100, XCLA (b) 3,980 3,980
--------
23,580
--------
NORTH CAROLINA (1.7%)
North Carolina Medical Care
Commission, NC Baptist
Hospital Project, Ser B, RB,
3.180%, 06/01/22, LOC:
Wachovia Bank of North
Carolina (b) 1,200 1,200
Raleigh, Downtown Improvement
Projects, Ser B, COP,
3.170%, 02/01/34, LOC: Depha
Bank PLC (b) 1,000 1,000
--------
2,200
--------
OHIO (2.8%)
Ohio State Environmental
Improvement, Newark Group
Industries, Inc. Project,
RB, AMT, 3.220%, 12/01/26,
LOC: JP Morgan Chase Bank
(b) 3,500 3,500
--------
OTHER (0.8%)
MuniMae Trust, RB, AMT,
3.260%, 12/17/06, FHLMC (b)
(c) 1,005 1,005
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
PUERTO RICO (0.8%)
Puerto Rico Commonwealth,
Highway & Transportation
Authority, RB, 3.160%,
01/01/08, MBIA (b) (c) 1,000 1,000
--------
TENNESSEE (0.2%)
Metropolitan Government
Nashville & Davidson County,
Industrial Development
Board, Multifamily Housing,
Chimneytop II Project, RB,
3.180%, 09/01/06, LOC: Bank
of America N.A. (b) 200 200
--------
TEXAS (0.7%)
Mesquite Industrial
Development Corp.,
Championship Rodeo, RB,
3.450%, 12/01/10, LOC: Bank
One Texas N.A. (b) 925 925
--------
UTAH (2.4%)
Utah Water Finance Agency, RB,
3.210%, 10/01/25, AMBAC (b) 3,000 3,000
--------
VIRGINIA (6.4%)
Loudoun County Industrial
Development Authority,
Howard Hughes Medical
Institute, Ser C, RB,
3.140%, 02/15/38 (b) 5,000 5,000
Norfolk Economic Development
Authority, Hospital
Facilities, Ser R-322, RB,
3.210%, 11/01/34, LOC:
Citigroup Global Markets (b) 3,000 3,000
--------
8,000
--------
Total Municipal Bonds (Cost
$123,545) 123,545
--------
</Table>
See Notes to Financial Statements.
16
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount($) Value($)
- -------------------------------------------------------
MONEY MARKETS (1.6%)
Fidelity Tax Free Fund 2,040,295 2,040
--------
Total Money Markets (Cost
$2,040) 2,040
--------
Total Investments (Cost
$125,585) (a) -- 99.7% 125,585
Other assets in excess of
liabilities -- 0.3% 397
--------
Net Assets -- 100.0% $125,982
========
</Table>
- ---------------
(a) Aggregate cost for federal income tax and financial reporting purposes is
the same.
(b) Variable rate security. Rate presented represents rate in effect at March
31, 2006. Maturity date represents actual maturity date.
(c) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
<Table>
AMBAC -- Security insured by the American Municipal
Bond Assurance Corporation
AMT -- Alternative Minimum Tax Paper
COP -- Certificates of Participation
FGIC -- Security insured by the Financial Guaranty
Insurance Company
FHLB -- Security insured by Federal Home Loan Bank
FHLMC -- Security insured by Freddie Mac
FNMA -- Security insured by Fannie Mae
FSA -- Security insured by Financial Security
Assurance
GO -- General Obligation
LOC -- Line of Credit
MBIA -- Security insured by the Municipal Bond
Insurance Association
PLC -- Public Limited Company
RB -- Revenue Bond
Ser -- Series
XLCA -- Security insured by XL Capital Assurance,
Inc.
</Table>
See Notes to Financial Statements.
17
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
<Table>
<Caption>
- -------------------------------------------------------
Principal
Amount($) Value($)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES (58.3%)
FANNIE MAE (16.6%)
3.587%, 04/28/06 (c) 20,000 19,948
4.780%, 05/09/06 (b) 25,000 25,000
4.665%, 05/22/06 (b) 20,000 20,000
3.835%, 05/26/06 (c) 15,000 14,914
4.760%, 07/17/06 (b) 25,000 24,999
4.210%, 09/01/06 (c) 10,000 9,828
4.728%, 12/01/06 (c) 10,000 9,697
4.646%, 12/29/06 (c) 35,000 33,819
--------
158,205
--------
FEDERAL FARM CREDIT BANK (11.0%)
3.460%, 05/15/06 (c) 10,000 9,958
4.760%, 12/28/06 (b) 20,000 20,001
4.750%, 01/22/07 (b) 74,800 74,799
--------
104,758
--------
FEDERAL HOME LOAN BANK (20.4%)
3.604%, 05/02/06 (c) 15,000 14,955
4.710%, 07/21/06 (b) 15,000 14,999
4.720%, 07/21/06 (b) 25,000 25,000
4.205%, 08/25/06 10,000 10,002
4.369%, 09/27/06 (c) 10,000 9,791
4.705%, 11/16/06 (b) 15,000 15,000
4.741%, 12/12/06 (c) 30,000 29,050
4.750%, 01/08/07 (b) 10,000 9,999
4.800%, 02/08/07 (b) 15,000 15,000
4.800%, 02/15/07 (b) 30,000 30,001
4.730%, 03/21/07 (b) 20,000 20,000
--------
193,797
--------
FREDDIE MAC (10.3%)
3.543%, 04/18/06 (c) 10,000 9,984
3.639%, 05/30/06 (c) 20,000 19,885
3.995%, 07/25/06 (c) 10,000 9,877
4.122%, 07/31/06 (c) 10,000 9,867
4.146%, 08/04/06 (c) 10,000 9,861
4.329%, 09/29/06 (c) 10,000 9,791
4.631%, 10/23/06 (c) 20,000 19,489
4.671%, 12/01/06 (c) 10,000 9,697
--------
98,451
--------
Total U.S. Government Agencies
(Cost $555,211) 555,211
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENTS (41.7%)
ABN AMRO Bank N.V., 4.725%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $98,271,225
(collateralized by U.S.
Treasury Obligations,
5.250%, due 02/15/29; total
market value $100,197,407) 98,233 98,233
BNP Paribas, 4.655%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $60,624,902
(collateralized by U.S.
Government Agencies, DN -
4.500%, due 04/17/07 -
01/22/16; total market value
$61,817,544) 60,601 60,601
Lehman Brothers, Inc., 4.755%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price $45,037,379
(collateralized by U.S.
Government Agencies, DN, due
12/01/34; total market value
$45,921,984) 45,020 45,020
Merrill Lynch & Co., Inc.,
4.725%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price $40,034,520
(collateralized by U.S.
Government Agencies, 5.500%,
due 02/01/35; total market
value $40,822,702) 40,019 40,019
Morgan Stanley, 4.705%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $41,178,599
(collateralized by U.S.
Government Agencies, 5.500%,
due 05/01/33 - 11/01/34;
total market value
$41,985,710) 41,162 41,162
</Table>
See Notes to Financial Statements.
18
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Principal
Amount($) Value($)
- -------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC, 4.755%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $111,761,727
(collateralized by U.S.
Government Agencies, DN -
5.500%, due 03/25/26 -
04/25/34; total market value
$113,953,218) 111,717 111,717
--------
Total Repurchase Agreements
(Cost $396,752) 396,752
--------
Total Investments (Cost
$951,963) (a) -- 100.0% 951,963
Liabilities in excess of other
assets -- (0.0)% (188)
--------
Net Assets -- 100.0% $951,775
========
</Table>
- ---------------
(a) Aggregate cost for federal income tax and financial reporting purposes is
the same.
(b) Variable rate security. Rate presented represents rate in effect at March
31, 2006. Maturity date represents actual maturity date.
(c) Rate represents the effective yield at purchase.
<Table>
DN -- Discount Note
LLC -- Limited Liability Corporation
</Table>
See Notes to Financial Statements.
19
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
U.S. TREASURY OBLIGATIONS (39.3%)
U.S. TREASURY BILLS (33.4%)
4.689%, 04/17/06 (b) 500,000 499,091
4.084%, 04/20/06 (b) 492,000 490,743
----------
989,834
----------
U.S. TREASURY NOTES (5.9%)
2.500%, 05/31/06 96,400 96,103
2.375%, 08/31/06 56,600 56,128
2.625%, 11/15/06 24,100 23,839
----------
176,070
----------
Total U.S. Treasury Obligations
(Cost $1,165,904) 1,165,904
----------
REPURCHASE AGREEMENTS (61.0%)
ABN AMRO Bank N.V., 4.435%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$319,749,904
(collateralized by U.S.
Treasury Obligations;
DN-8.875%, due 08/31/06 -
08/15/25; total market
value $326,024,578) 319,632 319,632
Bear Stearns & Co., Inc.,
4.405%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price
$52,762,474 (collateralized
by U.S. Treasury
Obligations;
1.875% - 8.750%, 07/15/15 -
08/15/20; total market
value $54,072,915) 52,743 52,743
BNP Paribas, 4.405%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $408,553,115
(collateralized by U.S.
Treasury Obligations;
DN-3.375%, 08/10/06 -
01/15/07; total market
value $416,572,215) 408,403 408,403
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Deutsche Bank AG, 4.455%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$27,347,161 (collateralized
by U.S. Treasury
Obligations; DN-8.750%,
04/20/06 - 05/15/20; total
market value $27,884,125) 27,337 27,337
Dresdner Bank AG, 4.455%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$104,088,840
(collateralized by U.S.
Treasury Obligations;
DN-8.750%, 04/06/06 -
02/15/36; total market
value $106,132,558) 104,050 104,050
Greenwich Capital Markets,
Inc., 4.435%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $264,636,642
(collateralized by U.S.
Treasury Obligations;
4.250% - 4.625%. 03/31/08 -
01/15/11; total market
value $269,832,937) 264,539 264,539
JPMorgan Chase & Co., 4.355%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$57,086,136 (collateralized
by U.S. Treasury
Obligations; 4.500%,
02/15/16; total market
value $58,209,725) 57,065 57,065
Lehman Brothers, Inc.,
4.455%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price
$33,546,640 (collateralized
by U.S. Treasury
Obligations; DN-6.250%,
11/15/23 - 05/15/30; total
market value $34,205,927) 33,534 33,534
</Table>
See Notes to Financial Statements.
20
SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares)
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount($) Value($)
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Merrill Lynch & Co., Inc.,
4.385%, dated 03/31/06, to
be repurchased on 04/03/06,
repurchase price
$52,489,283 (collateralized
by U.S. Treasury
Obligations; 9.125%,
05/15/18; total market
value $53,521,063) 52,470 52,470
Morgan Stanley, 4.445%, dated
03/31/06, to be repurchased
on 04/03/06, repurchase
price $98,550,993
(collateralized by U.S.
Treasury Obligations; DN,
02/15/23 - 05/15/23; total
market value $100,484,807) 98,515 98,515
UBS Warburg LLC, 4.455%,
dated 03/31/06, to be
repurchased on 04/03/06,
repurchase price
$394,923,051
(collateralized by U.S.
Treasury Obligations;
3.625%, 01/15/08; total
market value $402,675,809) 394,777 394,777
----------
Total Repurchase Agreements
(Cost $1,813,065) 1,813,065
----------
Total Investments (Cost
$2,978,969) (a) -- 100.3% 2,978,969
Liabilities in excess of other
assets -- (0.3)% (8,730)
----------
Net Assets -- 100.0% $2,970,239
==========
</Table>
- ---------------
(a) Aggregate cost for federal income tax purposes is $2,978,974 (amount in
thousands). Unrealized appreciation/(depreciation) on a tax basis is as
follows (amounts in thousands):
<Table>
Unrealized Appreciation....................... $--
Unrealized Depreciation....................... (5)
---
Unrealized Appreciation (Depreciation)........ $(5)
===
</Table>
(b) Rate represents the effective yield at purchase.
<Table>
DN -- Discount Note
LLC -- Limited Liability Corporation
</Table>
See Notes to Financial Statements.
21
STATEMENTS OF ASSETS AND LIABILITIES
STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Classic
Institutional Classic Classic Classic
Cash Institutional Institutional Institutional
Management Municipal Cash U.S. Government U.S. Treasury
Money Market Reserve Money Securities Money Securities Money
Fund Market Fund Market Fund Market Fund
------------- -------------- ---------------- ----------------
Assets:
Total Investments, at Cost............................ $2,958,439 $125,585 $951,963 $2,978,969
========== ======== ======== ==========
Total Investments, at Value........................... $2,845,276 $125,585 $555,211 $1,165,904
Repurchase Agreements, at Cost........................ 113,163 -- 396,752 1,813,065
---------- -------- -------- ----------
Total Investments..................................... 2,958,439 125,585 951,963 2,978,969
---------- -------- -------- ----------
Interest and Dividends Receivable..................... 24,227 789 3,298 9,392
Receivable for Capital Shares Issued.................. 6,051 -- 1,140 1,402
Receivable for Investment Securities Sold............. -- -- -- 498,916
Prepaid Expenses and Other Assets..................... 15 -- 5 15
---------- -------- -------- ----------
Total Assets.......................................... 2,988,732 126,374 956,406 3,488,694
---------- -------- -------- ----------
Liabilities:
Income Distributions Payable.......................... 11,577 366 3,165 10,197
Payable for Investment Securities Purchased........... 948 -- 1,224 507,176
Investment Advisory Fees Payable...................... 327 16 111 356
Administration Fees Payable........................... 68 -- 19 63
Compliance Services Fees Payable...................... 4 -- 1 4
Shareholder Service Fees.............................. -- -- -- 418
Custodian Fees Payable................................ 30 -- 9 26
Accrued Expenses...................................... 257 10 102 215
---------- -------- -------- ----------
Total Liabilities..................................... 13,211 392 4,631 518,455
---------- -------- -------- ----------
Total Net Assets...................................... $2,975,521 $125,982 $951,775 $2,970,239
========== ======== ======== ==========
Net Assets:
Capital............................................... $2,975,709 $125,982 $951,775 $2,970,442
Undistributed Net Investment Income................... 1 -- -- 75
Accumulated Net Realized Gains (Losses) on Investment
Transactions........................................ (189) -- -- (278)
---------- -------- -------- ----------
Total Net Assets...................................... $2,975,521 $125,982 $951,775 $2,970,239
========== ======== ======== ==========
NET ASSETS:
Institutional Shares.................................. $2,975,521 $125,982 $951,775 $ 901,777
Corporate Trust Shares................................ N/A N/A N/A $2,068,462
SHARES OUTSTANDING:
Institutional Shares.................................. 2,975,709 125,982 951,775 901,799
Corporate Trust Shares................................ N/A N/A N/A 2,068,643
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE:
Institutional Shares.................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
Corporate Trust Shares................................ N/A N/A N/A $ 1.00
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
22
STATEMENTS OF OPERATIONS
STI CLASSIC FUNDS For the Year ended March 31, 2006 (Amounts in thousands)
<Table>
<Caption>
Classic
Institutional Classic Classic Classic
Cash Institutional Institutional Institutional
Management Municipal Cash U.S. Government U.S. Treasury
Money Market Reserve Money Securities Money Securities Money
Fund Market Fund* Market Fund Market Fund
------------- -------------- ---------------- ----------------
Investment Income:
Interest Income....................................... $112,441 $1,575 $33,732 $98,724
Dividend Income....................................... -- 44 -- --
-------- ------ ------- -------
Total Investment Income............................... 112,441 1,619 33,732 98,724
-------- ------ ------- -------
Expenses:
Investment Advisory Fees.............................. 4,413 82 1,520 4,426
Administration and Fund Accounting Fees............... 786 14 241 721
Shareholder Service Fees -- Corporate Trust Shares.... -- -- -- 4,603
Compliance Services Fees.............................. 26 -- 8 24
Custodian Fees........................................ 62 -- 18 59
Professional Fees..................................... 128 3 41 125
Insurance Fees........................................ 12 -- 15 33
Registration Fees..................................... 51 1 40 96
Transfer Agent Fees................................... (81) 1 (10) (10)
Printing Fees......................................... 63 11 19 66
Trustees' Fees........................................ 47 1 14 45
Other Fees............................................ 86 12 27 43
-------- ------ ------- -------
Total Expenses........................................ 5,593 125 1,933 10,231
Less: Investment Advisory Fees Waived............... (626) (7) (3) (8)
Less: Administration Fees Waived.................... (15) (14) (3) (16)
-------- ------ ------- -------
Net Expenses.......................................... 4,952 104 1,927 10,207
-------- ------ ------- -------
Net Investment Income................................. 107,489 1,515 31,805 88,517
-------- ------ ------- -------
Net Realized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investments Sold.......... (163) -- -- (37)
-------- ------ ------- -------
Total Net Realized Gain (Loss) on Investments......... (163) -- -- (37)
-------- ------ ------- -------
Net Change in Net Assets from Operations.............. $107,326 $1,515 $31,805 $88,480
======== ====== ======= =======
</Table>
* Commencement of operations on August 2, 2005.
Amounts designated as "--" are $0 or have been rounded to $0.
See Notes to Financial Statements.
23
STATEMENTS OF CHANGES IN NET ASSETS
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Classic Institutional Classic Institutional
Cash Management Municipal Cash Reserve
Money Market Fund Money Market Fund
---------------------------------------- ----------------------
04/01/05- 06/01/04- 06/01/03- 08/02/05-*
03/31/06 03/31/05 05/31/04 03/31/06
------------ ----------- ----------- ----------------------
Operations:
Net Investment Income..................................... $ 107,489 $ 37,381 $ 23,681 $ 1,515
Net Realized Gain (Loss) on Investments Sold.............. (163) (23) 81 --
------------ ----------- ----------- ---------
Change in Net Assets from Operations...................... 107,326 37,358 23,762 1,515
------------ ----------- ----------- ---------
Dividends and Distributions to Shareholders:
Net Investment Income:
Institutional Shares.................................... (107,488) (37,463) (23,681) (1,515)
Net Realized Gains:
Institutional Shares.................................... -- -- (15) --
------------ ----------- ----------- ---------
Total Dividends and Distributions......................... (107,488) (37,463) (23,696) (1,515)
------------ ----------- ----------- ---------
Capital Transactions:
Institutional Shares
Proceeds from Shares Issued............................. 10,474,192 7,385,743 7,415,918 449,804
Reinvestment of Cash Distributions...................... 57,184 17,767 14,226 --
Cost of Shares Redeemed................................. (10,147,220) (7,180,727) (8,047,111) (323,822)
------------ ----------- ----------- ---------
Change in Net Assets From Institutional Shares............ 384,156 222,783 (616,967) 125,982
------------ ----------- ----------- ---------
Change in Net Assets from Capital Transactions............ 384,156 222,783 (616,967) 125,982
------------ ----------- ----------- ---------
Change in Net Assets........................................ 383,994 222,678 (616,901) 125,982
------------ ----------- ----------- ---------
Net Assets:
Beginning of Period..................................... 2,591,527 2,368,849 2,985,750 --
------------ ----------- ----------- ---------
End of Period........................................... $ 2,975,521 $ 2,591,527 $ 2,368,849 $ 125,982
============ =========== =========== =========
Undistributed Net Investment Income, End of Period.......... $ 1 $ -- $ 79 $ --
============ =========== =========== =========
Shares Transactions:
Institutional Shares
Issued.................................................. 10,474,192 7,385,743 266 449,804
Reinvested.............................................. 57,184 17,767 57 --
Redeemed................................................ (10,147,220) (7,180,727) (937) (323,822)
------------ ----------- ----------- ---------
Change in Institutional Share Transactions.................. 384,156 222,783 (614) 125,982
------------ ----------- ----------- ---------
Change in Share Transactions................................ 384,156 222,783 (614) 125,982
============ =========== =========== =========
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
24
STATEMENTS OF CHANGES IN NET ASSETS
STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
<Table>
<Caption>
Classic Institutional Classic Institutional
U.S. Government Securities U.S. Treasury Securities
Money Market Fund Money Market Fund
--------------------------------------- --------------------------------------
04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03-
03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04
----------- ----------- ----------- ----------- ----------- ----------
Operations:
Net Investment Income........................ $ 31,805 $ 12,158 $ 8,014 $ 88,517 $ 25,166 $ 11,209
Net Realized Gain (Loss) on Investments
Sold....................................... -- -- 3 (37) (241) 1,300
----------- ----------- ----------- ----------- ----------- ----------
Change in Net Assets from Operations......... 31,805 12,158 8,017 88,480 24,925 12,509
----------- ----------- ----------- ----------- ----------- ----------
Dividends and Distributions to Shareholders:
Net Investment Income:
Institutional Shares....................... (31,805) (12,161) (8,014) (26,758) (7,533) (3,696)
Corporate Trust Shares..................... -- -- -- (61,759) (18,295) (7,522)
Net Realized Gains:
Institutional Shares....................... -- -- -- -- -- (280)
Corporate Trust Shares..................... -- -- -- -- -- (903)
----------- ----------- ----------- ----------- ----------- ----------
Total Dividends and Distributions............ (31,805) (12,161) (8,014) (88,517) (25,828) (12,401)
----------- ----------- ----------- ----------- ----------- ----------
Capital Transactions:
Institutional Shares
Proceeds from Shares Issued................ 3,737,790 2,467,346 2,512,598 5,829,775 2,489,770 3,003,944
Reinvestment of Cash Distributions......... 12,924 4,387 2,820 10,384 3,113 2,922
Cost of Shares Redeemed.................... (3,693,592) (2,435,337) (2,697,227) (5,635,467) (2,216,507) (3,239,309)
----------- ----------- ----------- ----------- ----------- ----------
Change in Net Assets From Institutional
Shares..................................... 57,122 36,396 (181,809) 204,692 276,376 (232,443)
----------- ----------- ----------- ----------- ----------- ----------
Corporate Trust Shares
Proceeds from Shares Issued................ 4,198,189 3,119,275 3,290,925
Cost of Shares Redeemed.................... (3,955,073) (2,671,779) (3,211,341)
----------- ----------- ----------
Change in Net Assets From Corporate Trust
Shares..................................... 243,116 447,496 79,584
----------- ----------- ----------
Change in Net Assets from Capital
Transactions............................... 57,122 36,396 (181,809) 447,808 723,872 (152,859)
----------- ----------- ----------- ----------- ----------- ----------
Change in Net Assets........................... 57,122 36,393 (181,806) 447,771 722,969 (152,751)
----------- ----------- ----------- ----------- ----------- ----------
Net Assets:
Beginning of Period........................ 894,653 858,260 1,040,066 2,522,468 1,799,499 1,952,250
----------- ----------- ----------- ----------- ----------- ----------
End of Period.............................. $ 951,775 $ 894,653 $ 858,260 $ 2,970,239 $ 2,522,468 $1,799,499
=========== =========== =========== =========== =========== ==========
Undistributed Net Investment Income, End of
Period....................................... $ -- $ -- $ 3 $ 75 $ 75 $ (5)
=========== =========== =========== =========== =========== ==========
Shares Transactions:
Institutional Shares
Issued..................................... 3,737,790 2,467,346 258 5,829,775 2,489,770 3,003,944
Reinvested................................. 12,924 4,387 80 10,384 3,113 2,922
Redeemed................................... (3,693,592) (2,435,337) (608) (5,635,467) (2,216,507) (3,239,309)
----------- ----------- ----------- ----------- ----------- ----------
Change in Institutional Share Transactions..... 57,122 36,396 (270) 204,692 276,376 (232,443)
----------- ----------- ----------- ----------- ----------- ----------
Corporate Trust Shares
Issued..................................... 4,198,189 3,119,275 3,290,925
Redeemed................................... (3,955,073) (2,671,779) (3,211,341)
----------- ----------- ----------
Change in Corporate Trust Share Transactions... 243,116 447,496 79,584
----------- ----------- ----------
Change in Share Transactions................... 57,122 36,396 (270) 447,808 723,872 (152,859)
=========== =========== =========== =========== =========== ==========
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
See Notes to Financial Statements.
25
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net
Realized Distributions
Net Asset and Dividends from
Value, Net Unrealized from Net Realized
Beginning Investment Gains on Total From Investment Capital
of Period Income Investments Operations Income Gains
--------- ---------- ----------- ---------- ---------- -------------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY
MARKET FUND
Institutional Shares
Year Ended March 31, 2006 $1.00 $0.04 $ -- $0.04 $(0.04) $ --
Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2002 1.00 0.03 -- 0.03 (0.03) --
Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) --
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE
MONEY MARKET FUND
Institutional Shares
Period Ended March 31, 2006(a) 1.00 0.02 -- 0.02 (0.02) --
CLASSIC INSTITUTIONAL U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) --
Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2002 1.00 0.03 -- 0.03 (0.03) --
Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) --
CLASSIC INSTITUTIONAL U.S. TREASURY
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) --
Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) --
Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) --
Corporate Trust Shares
Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) --
Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) --
Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) --
<Caption>
Ratio of Ratio of
Net Net
Net Expenses Investment
Total Asset to Income to
Dividends Value, Net Assets, Average Average
and End of Total End of Net Net
Distributions Period Return+ Period (000) Assets++ Assets++
------------- ------ ------- ------------ -------- ----------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY
MARKET FUND
Institutional Shares
Year Ended March 31, 2006 $(0.04) $1.00 3.62% $2,975,521 0.17% 3.60%
Period Ended March 31, 2005** (0.01) 1.00 1.43 2,591,527 0.19 1.71
Year Ended May 31, 2004 (0.01) 1.00 0.86 2,368,849 0.25 0.86
Year Ended May 31, 2003 (0.01) 1.00 1.46 2,985,750 0.25 1.45
Year Ended May 31, 2002 (0.03) 1.00 2.68 3,409,606 0.25 2.61
Year Ended May 31, 2001 (0.06) 1.00 6.13 3,229,400 0.25 5.91
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE
MONEY MARKET FUND
Institutional Shares
Period Ended March 31, 2006(a) (0.02) 1.00 1.79 125,982 0.19 2.78
CLASSIC INSTITUTIONAL U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 (0.03) 1.00 3.51 951,775 0.21 3.48
Period Ended March 31, 2005** (0.01) 1.00 1.36 894,653 0.25 1.63
Year Ended May 31, 2004 (0.01) 1.00 0.82 858,260 0.27 0.82
Year Ended May 31, 2003 (0.01) 1.00 1.40 1,040,066 0.26 1.39
Year Ended May 31, 2002 (0.03) 1.00 2.61 1,025,714 0.27 2.49
Year Ended May 31, 2001 (0.06) 1.00 5.98 896,189 0.26 5.72
CLASSIC INSTITUTIONAL U.S. TREASURY
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 (0.03) 1.00 3.41 901,777 0.20 3.45
Period Ended March 31, 2005** (0.01) 1.00 1.31 697,095 0.25 1.62
Year Ended May 31, 2004 (0.01) 1.00 0.77 420,948 0.26 0.71
Year Ended May 31, 2003 (0.01) 1.00 1.30 653,340 0.26 1.23
Year Ended May 31, 2002 (0.02) 1.00 2.28 551,599 0.26 2.25
Year Ended May 31, 2001 (0.06) 1.00 5.74 580,227 0.27 5.44
Corporate Trust Shares
Year Ended March 31, 2006 (0.03) 1.00 3.17 2,068,462 0.44 3.14
Period Ended March 31, 2005** (0.01) 1.00 1.14 1,825,373 0.44 1.38
Year Ended May 31, 2004 (0.01) 1.00 0.57 1,378,551 0.46 0.51
Year Ended May 31, 2003 (0.01) 1.00 1.10 1,298,910 0.46 1.05
Year Ended May 31, 2002 (0.02) 1.00 2.08 1,805,066 0.46 2.11
Year Ended May 31, 2001 (0.05) 1.00 5.53 1,303,630 0.46 5.38
<Caption>
Ratio of Expenses
to Average
Net Assets
(Excluding Waivers,
Reimbursements
and Expense
Offset)++
-------------------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY
MARKET FUND
Institutional Shares
Year Ended March 31, 2006 0.19%
Period Ended March 31, 2005** 0.26
Year Ended May 31, 2004 0.29
Year Ended May 31, 2003 0.29
Year Ended May 31, 2002 0.29
Year Ended May 31, 2001 0.30
CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE
MONEY MARKET FUND
Institutional Shares
Period Ended March 31, 2006(a) 0.23
CLASSIC INSTITUTIONAL U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 0.21
Period Ended March 31, 2005** 0.26
Year Ended May 31, 2004 0.29
Year Ended May 31, 2003 0.29
Year Ended May 31, 2002 0.30
Year Ended May 31, 2001 0.29
CLASSIC INSTITUTIONAL U.S. TREASURY
SECURITIES MONEY MARKET FUND
Institutional Shares
Year Ended March 31, 2006 0.20
Period Ended March 31, 2005** 0.26
Year Ended May 31, 2004 0.29
Year Ended May 31, 2003 0.29
Year Ended May 31, 2002 0.30
Year Ended May 31, 2001 0.30
Corporate Trust Shares
Year Ended March 31, 2006 0.44
Period Ended March 31, 2005** 0.45
Year Ended May 31, 2004 0.49
Year Ended May 31, 2003 0.49
Year Ended May 31, 2002 0.50
Year Ended May 31, 2001 0.50
</Table>
See Notes to Financial Highlights and Notes to Financial Statements.
26
NOTES TO FINANCIAL HIGHLIGHTS
* Amount less than $0.005.
** Effective June 1, 2004, these Funds adopted a change in the amortization and
accretion methodology on fixed income securities. The cumulative effect of
this change in methodology was immaterial to all Funds.
+ Not annualized for periods less than one year.
++ Annualized for periods less than one year.
(a) Commenced operations on August 2, 2005.
27
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FUNDS March 31, 2006
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 53 funds as of March 31, 2006. The Trust
is authorized to issue an unlimited number of shares without par value. The
financial statements presented herein are those of the Classic Institutional
Cash Management Money Market Fund, the Classic Institutional Municipal Cash
Reserve Money Market Fund, the Classic Institutional U.S. Government Securities
Money Market Fund and the Classic Institutional U.S. Treasury Securities Money
Market Fund (each a "Fund" and collectively the "Funds"). The financial
statements of the remaining funds are presented separately. The Classic
Institutional Cash Management Money Market Fund, Classic Institutional Municipal
Cash Reserve Money Market Fund and Classic Institutional U.S. Government
Securities Money Market Fund may offer Institutional Shares only. The Classic
Institutional U.S. Treasury Securities Money Market Fund may offer Institutional
Shares and Corporate Trust Shares. The Funds' prospectus provides a description
of the Funds' investment objectives, policies and strategies.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. Each class of shares has identical rights
and privileges except with respect to the fees paid under the Shareholder
Services Plan and voting rights on matters affecting a single class of shares.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with its vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Investment securities are stated at amortized cost,
which approximates market value. Under the amortized cost method, premium
or discount, if any, is amortized or accreted, respectively, on a constant
basis to the maturity of the security. Securities listed on a securities
exchange, market or automated quotation system for which quotations are
readily available (except for securities traded on NASDAQ), including
securities traded over the counter, are valued at the last quoted sale
price on the primary exchange or market (foreign or domestic) on which they
are traded on valuation date (or at approximately 4:00 pm Eastern Time if a
security's primary exchange is normally open at that time), or, if there is
no such reported sale on the valuation date, at the most recent quoted bid
price. For securities traded on NASDAQ, the NASDAQ Official Closing Price
will be used.
Security Transactions and Investment Income -- Security transactions are
accounted for no later than one business day after trade date. However, for
financial reporting purposes, security transactions are reported on trade
date. Interest income is recognized on an accrual basis and includes
amortization or accretion of premiums or discounts. Costs used in
determining net realized gains and losses on the sales of investment
securities are those of the specific securities sold, adjusted for the
accretion or amortization of purchase discounts or premiums during the
respective holding period.
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price
28
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
("repurchase agreement"). A third party custodian bank takes possession of
the underlying securities ("collateral") of a repurchase agreement, the
value of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the repurchase agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations. The purchase of securities on a when-issued basis may
increase the volatility of a Fund's net asset value if the Fund makes such
investments while remaining substantially fully invested. A Fund records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to deposit an amount equal to 110% of the overdraft
in a compensating balance account with its custodian, SunTrust Bank, a
wholly owned subsidiary of SunTrust Banks, Inc., on the following business
day. If a Fund has a positive cash balance in excess of $100,000 it is
allowed to overdraw an amount equal to 90% of the balance from SunTrust
Bank on the following business day. All such deposits to, and overdrafts
from, the compensating balance account are non-interest bearing and are for
a duration of one business day.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
if any, are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes within a Fund on
the basis of the relative daily net assets.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income of each of the Funds are declared daily and paid monthly.
Any net realized capital gains on sales of securities are distributed to
shareholders at least annually. However, to the extent that net realized
capital gains can be offset by capital loss carryovers, such gains will not
be distributed.
3. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under revised terms of the agreements dated August 1, 2005, the Funds are
charged the following annual fees, which are computed daily and paid
monthly based upon average daily net assets. Breakpoints are used in
computing the advisory fee. The maximum annual advisory fee is charged on
average daily net assets of each Fund up to $1 billion, a discount of 5%
applies on the next $1.5 billion, a discount of 10% applies on the next
$2.5 billion and a discount of 20% applies on amounts over $5 billion. Fee
rates paid for the period August 1, 2005 through March 31, 2006 were as
follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee Fees Paid
(%) (%)
-------------- ----------
Classic Institutional Cash Management Money Market Fund..... 0.13 0.12
Classic Institutional Municipal Cash Reserve Money Market
Fund...................................................... 0.15 0.14
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 0.15 0.15
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 0.15 0.14
</Table>
29
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Prior to August 1, 2005, the Funds that were in operation during that
period paid the following annual fees which were computed daily and paid
monthly based upon average daily net assets. Fee rates for the period April
1, 2005 through July 31, 2005 were as follows:
<Table>
<Caption>
Maximum Annual Net Annual
Advisory Fee Fees Paid
(%) (%)
-------------- ----------
Classic Institutional Cash Management Money Market Fund..... 0.20 0.13
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 0.20 0.20
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 0.20 0.20
</Table>
The Investment Adviser has contractually agreed, effective August 1, 2005
until at least August 1, 2007, to waive fees and/or reimburse each Fund to
the extent necessary to maintain each Fund's Total Operating Expenses,
expressed as a percentage of average daily net assets, as noted below:
<Table>
<Caption>
Total Operating
Expense
(%)
---------------
Classic Institutional Cash Management Money Market Fund..... 0.17
Classic Institutional Municipal Cash Reserve Money Market
Fund...................................................... 0.20
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 0.20
Classic Institutional U.S. Treasury Securities Money Market
Fund, Institutional Shares................................ 0.20
Classic Institutional U.S. Treasury Securities Money Market
Fund, Corporate Trust Shares.............................. 0.45
</Table>
Also effective August 1, 2005, the Investment Adviser may retain the
difference between the Total Operating Expense and the actual total expense
ratio, to recapture any of its prior waivers or reimbursements, until
August 1, 2008. Such repayments shall be made monthly, but only to the
extent that such repayments would not cause the annualized total expense
ratio to exceed the Total Operating Expense in place at that time. As of
March 31, 2006, the Classic Institutional Municipal Cash Reserve Money
Market Fund had $7,286 available for repayment that may potentially be made
to the Investment Adviser.
During the period April 1, 2005 through July 31, 2005, the Investment
Adviser also voluntarily waived fees in the Funds in order to maintain a
more competitive expense ratio for shareholders. These voluntary waivers
will not be recouped by the Investment Adviser in subsequent years.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and STI Classic Variable Trust are parties to a Master Services Agreement
with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the
Administrator provides administrative, fund accounting, transfer agent and
shareholder services for an annual fee (expressed as a percentage of the
combined average daily net assets of the Trust and STI Classic Variable
Trust) of: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and
0.0175% on amounts over $30 billion plus an additional class fee of $2,593
per class annually, applicable to each additional class of shares over 145
total classes of shares.
The Master Services Agreement provides for the Administrator to pay certain
insurance premiums for the Trust and STI Classic Variable Trust, including
$300,000 toward the premium for Directors and Officers Liability/Errors and
Omissions insurance coverage, and $25,000 toward the premium for Fidelity
Bond coverage. The Administrator has agreed, under the terms of the Master
Services Agreement, to pay certain legal expenses for the benefit of the
Trust and the Classic Variable Trust relating to administrative service
matters. The Master Services Agreement further provides for the
Administrator to waive a portion of its fees for the benefit of
shareholders. Such payments and fee waivers are expected to total
approximately $400,000 to $650,000 annually, and will not be recovered by
the Administrator in subsequent years.
30
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Services
Agreement. The Distributor will receive no fees for its distribution
services under this agreement for the Institutional and Corporate Trust
Shares of any Fund.
Shareholder Servicing Agreement -- The Classic Institutional U.S. Treasury
Securities Money Market Fund has adopted a Shareholder Services Plan for
the Corporate Trust Shares. The Fund pays SunTrust Bank a monthly
shareholder services fee at an annual rate of up to 0.25% of the average
daily net assets of the Fund's Corporate Trust Shares, computed daily and
paid monthly, which may be used by SunTrust Bank to provide compensation to
service providers that have agreed to provide shareholder support services
for their customers who own Corporate Trust Shares of the Fund. The Fund
paid SunTrust Bank at an annual rate of 0.20% from April 1, 2005 to July
31, 2005, and 0.25% from August 1, 2005 to March 31, 2006.
Custodian Agreement -- SunTrust Bank acts as Custodian for the Funds. The
Funds pay custody fees on the basis of net assets and transaction costs.
Other -- Certain officers of the Trust are also officers of the Investment
Adviser, the Administrator and/or the Distributor. Such officers receive no
fees from the Trust for serving as officers of the Trust. Each of the
trustees receives an annual retainer fee and an additional fee for each
meeting attended. Trustees receive additional fee for attendance at
committee meetings. The current fees are as follows:
<Table>
<Caption>
Chairman($) Trustee($)
----------- ----------
Annual Retainer............................................. 50,000 40,000
Regular Meeting Fee......................................... 7,500 6,000
Special Meeting Fee......................................... 3,750 3,000
Committee Meeting Fee....................................... 4,500 2,500
</Table>
The Investment Adviser provides services to the Trust and the STI Classic
Variable Trust to ensure compliance with applicable laws and regulations.
In addition, the Investment Adviser has designated a dedicated compliance
staff and an employee to serve as Chief Compliance Officer. The Investment
Adviser received a fee totaling $120,000 for these services during the year
ended March 31, 2006. The Investment Adviser has expanded the scope of its
compliance services to the Trust and the STI Classic Variable Trust and,
effective April 1, 2006, will receive annual fees totaling $475,000 for the
fiscal year ending March 31, 2007. In addition, the Administrator provides
an employee and staff to assist the Chief Compliance Officer for the Trust,
including providing certain related services, and receives an annual fee of
$150,000 for providing these services. The fees above are allocated across
the assets of the Trust and the STI Classic Variable Trust. For the year
ended March 31, 2006, the total amount paid by the Trust related to
trustees and compliance services was $961,554.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital Markets, Inc., which is a direct non-bank
subsidiary of SunTrust Banks, Inc., to act as an agent in placing
repurchase agreements for the Trust. For the year ended March 31, 2006, the
following Funds paid SunTrust Robinson Humphrey, through a reduction in the
yield earned by the Funds on those repurchase agreements, the following
amounts (in thousands):
<Table>
<Caption>
Fees($)
-------
Classic Institutional Cash Management Money Market Fund..... 166
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 174
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 1,111
</Table>
4. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These
31
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2006
"book/tax" differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such amounts are
reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
At March 31, 2006, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes in the Classic Institutional
U.S. Treasury Securities Money Market Fund. These differences were generally due
to losses on wash sales, which cannot be used for Federal income tax purposes in
the current year and have been deferred for use in future years.
The tax character of distributions paid to shareholders during the year ended
March 31, 2006 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------------- Total
Net Investment Tax Exempt Distributions
Fund Income($) Income($) Paid($)*
- ---- -------------- ---------------- -------------
Classic Institutional Cash Management Money Market Fund..... 101,462 -- 101,462
Classic Institutional Municipal Cash Reserve Money Market
Fund...................................................... 18 1,131 1,149
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 30,411 -- 30,411
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 82,740 -- 82,740
</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 $0.
The tax character of distributions paid to shareholders during the period ended
March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------------- Total
Net Investment Net Long Term Distributions
Fund Income($) Capital Gains($) Paid($)*
- ---- -------------- ---------------- -------------
Classic Institutional 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. Amounts
designated as "--" are either $0 or have been rounded to $0.
The tax character of distributions paid to shareholders during the year ended
May 31, 2004 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------------- Total
Net Investment Net Long Term Distributions
Fund Income($) Capital Gains($) Paid($)*
- ---- -------------- ---------------- -------------
Classic Institutional Cash Management Money Market Fund..... 23,696 -- 23,696
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 8,014 -- 8,014
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 12,365 36 12,401
</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 $0.
As of March 31, 2006 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Undistributed Undistributed Undistributed Accumulated
Tax-Exempt Ordinary Long Term Accumulated Distributions Capital and
Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ------------- ---------------- ----------- ------------- -----------------
Classic Institutional
Cash Management
Money Market
Fund............... -- 11,578 -- 11,578 (11,577) (189)
Classic Institutional
Municipal Cash
Reserve Money
Market Fund........ 365 1 -- 366 (366) --
<Caption>
Total
Unrealized Accumulated
Appreciation Earnings
(Depreciation)($)*** (Deficit)($)
-------------------- ------------
Classic Institutional
Cash Management
Money Market
Fund............... -- (188)
Classic Institutional
Municipal Cash
Reserve Money
Market Fund........ -- --
</Table>
32
NOTES TO FINANCIAL STATEMENTS (concluded)
STI CLASSIC FUNDS March 31, 2006
<Table>
<Caption>
Undistributed Undistributed Undistributed Accumulated
Tax-Exempt Ordinary Long Term Accumulated Distributions Capital and
Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)**
------------- ------------- ---------------- ----------- ------------- -----------------
Classic Institutional
U.S. Government
Securities Money
Market Fund........ -- 3,165 -- 3,165 (3,165) --
Classic Institutional
U.S. Treasury
Securities Money
Market Fund........ -- 10,272 -- 10,272 (10,197) (273)
<Caption>
Total
Unrealized Accumulated
Appreciation Earnings
(Depreciation)($)*** (Deficit)($)
-------------------- ------------
Classic Institutional
U.S. Government
Securities Money
Market Fund........ -- --
Classic Institutional
U.S. Treasury
Securities Money
Market Fund........ (5) (203)
</Table>
- ---------------
** As of the latest tax year end of March 31, 2006, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations. To the extent that these
carryovers are used to offset future gains, it is probable that the gains so
offset will not be distributed to shareholders (in thousands):
<Table>
<Caption>
Expires
-----------------
2013($) 2014($)
------- -------
Classic Institutional Cash Management Money Market Fund..... -- 26
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 156 110
</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 Classic Institutional Cash Management Money Market Fund and the
Classic Institutional U.S. Treasury Securities Money Market Fund have
incurred and will elect to defer $163 and $7, respectively, in thousands, in
capital losses.
*** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral of losses on wash
sales, the difference between book and tax amortization methods for premium
and market discount.
5. Risks
The Funds invest primarily in money market instruments maturing in 397 days or
less whose ratings are within one of the two highest ratings categories assigned
by a nationally recognized statistical rating organization, or, if not rated,
are believed to be of comparable quality. The ability of the issuers of the
securities held by the Fund to meet their obligations may be affected by
economic developments in a specific industry, state or region.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
The Funds hold certain securities the issuer of which operates under a
congressional charter. These securities (Federal Home Loan Mortgage Corporation,
Federal Home Loan Bank and Federal National Mortgage Association) are neither
issued nor guaranteed by the U.S. Government. If needed, access to additional
funding from the U.S. Treasury (beyond the issuer's line of credit), would
require congressional action.
6. Other Federal Tax Information (Unaudited)
For corporate shareholders, no portion of the total ordinary income
distributions paid by the Funds during the year ended March 31, 2006 qualified
for the corporate dividends received deduction. Therefore, none of the Funds
paid qualified dividend income for the year ended March 31, 2006.
33
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Classic Institutional Cash
Management Money Market Fund, Classic Institutional Municipal Cash Reserve Money
Market Fund, Classic Institutional U.S. Government Securities Money Market Fund,
and Classic Institutional U.S. Treasury Securities Money Market Fund (four of
the fifty-three funds constituting STI Classic Funds, hereafter referred to as
the "Funds") at March 31, 2006, the results of each of their operations, changes
in each of their net assets and the financial highlights for each of the periods
indicated except as discussed below where funds were audited by other
independent accountants, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 2006 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion. The financial
highlights for the year ended May 31, 2001 of the Funds were audited by other
independent accountants who have ceased operations. Those independent
accountants expressed an unqualified opinion on those financial statements in
their report dated July 18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2006
34
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
Information pertaining to the trustees and officers of the Trust is set forth
below. Trustees who are not deemed to be "interested persons" of the Trust as
defined in the 1940 Act are referred to as "Independent Trustees." Trustees who
are deemed to be "interested persons" of the Trust are referred to as
"Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed
to be "interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS
IN THE
TERM OF STI FUND
POSITION(S) OFFICE AND PRINCIPAL COMPLEX
NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS BY TRUSTEE
- ------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:*
Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60
3435 Stelzer Road since November Company
Columbus, OH 43219 2001
DOB 01/18/36
- ------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60
3435 Stelzer Road since November Companies; Partner, King and
Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977 to
DOB 06/03/42 2000)
- ------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60
3435 Stelzer Road since May 2000 Company
Columbus, OH 43219
DOB 11/25/47
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite; Retired 60
3435 Stelzer Road since May 1992
Columbus, OH 43219
DOB 12/03/32
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60
3435 Stelzer Road since November (1997-2004), J. Mack Robinson
Columbus, OH 43219 2004 College of Business, Georgia State
DOB 07/21/49 University
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power Company 60
3435 Stelzer Road since November and SVP, Southern Company
Columbus, OH 43219 2004 (1998-2001)
DOB 11/12/40
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite; Vice President and Controller, The 60
3435 Stelzer Road since May 2005 Coca-Cola Company
Columbus, OH 43219
DOB 04/10/58
- ------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60
3435 Stelzer Road since May 2000 Communications, Inc. (1985-2005)
Columbus, OH 43219
DOB 07/04/42
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60
3435 Stelzer Road since November Accenture (consulting)
Columbus, OH 43219 2004
DOB 07/13/35
- ------------------------------------------------------------------------------------------------------
<Caption>
OTHER
NAME, ADDRESS, DIRECTORSHIPS
DATE OF BIRTH HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:*
Richard W. Courts, II Genuine Parts Company;
3435 Stelzer Road Piedmont Medical Center;
Columbus, OH 43219 SunTrust Bank
DOB 01/18/36
- ------------------------------------------------------------------------------------------------------
Clarence H. Ridley Crawford & Co.
3435 Stelzer Road
Columbus, OH 43219
DOB 06/03/42
- ------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
Thomas Gallagher Genuine Parts Company;
3435 Stelzer Road Oxford Industries, Inc.
Columbus, OH 43219
DOB 11/25/47
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch SEI Family of Funds
3435 Stelzer Road
Columbus, OH 43219
DOB 12/03/32
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris ServiceMaster Company; Total
3435 Stelzer Road System Services, Inc.;
Columbus, OH 43219 Transamerica Investors, Inc.
DOB 07/21/49 (13 Mutual Funds)
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe WellPoint, Inc.; UniSource
3435 Stelzer Road Energy Corp.; HomeBanc Corp.
Columbus, OH 43219
DOB 11/12/40
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel None
3435 Stelzer Road
Columbus, OH 43219
DOB 04/10/58
- ------------------------------------------------------------------------------------------------------
James O. Robbins Cox Communications; Humana,
3435 Stelzer Road Inc.
Columbus, OH 43219
DOB 07/04/42
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow None
3435 Stelzer Road
Columbus, OH 43219
DOB 07/13/35
- ------------------------------------------------------------------------------------------------------
</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.
35
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
<Table>
<Caption>
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS:
R. Jeffrey Young President One-year; Senior Vice President, Relationship Management, BISYS
3435 Stelzer Road since July 2004 Fund Services (since 2002); Vice President, Client
Columbus, OH 43219 Services, BISYS Fund Services (1997-2002)
DOB 08/22/64
- --------------------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice One-year; Chief Compliance Officer and Managing Director, Trusco
50 Hurt Plaza President, since September 2004; Capital Management, Inc. (since 2003); President,
Atlanta, GA 30303 Assistant since November 2003; Investment Industry Consultants, LLC (2000-2003)
DOB 10/02/52 Secretary; Chief since August 2004
Compliance Officer (respectively)
- --------------------------------------------------------------------------------------------------------------------------------
Joel B. Engle Treasurer, Chief One-year; Director, Fund Administration, BISYS Fund Services
3435 Stelzer Road Financial Officer since May 2006* (since 2006); Self-employed, retail business owner
Columbus, OH 43219 (2003-2006);
DOB 10/31/65 Vice President, Financial Services, BISYS Fund Services
(1998-2003)
- --------------------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary and One-year; Senior Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Chief Legal since February 2005 (since 2004); Director and Counsel, Investors Bank &
Columbus, OH 43219 Officer Trust Company (1999-2004)
DOB 07/08/46
- --------------------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant One-year; Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary Since July 2004 (since 2002); Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002)
DOB 04/07/67
- --------------------------------------------------------------------------------------------------------------------------------
Jennifer English Assistant One-year; Assistant Counsel, Legal Services, BISYS Fund Services
3435 Stelzer Road Secretary Since November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005);
Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments
DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management
Company, LLP (1998-2001)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Elected at the Board of Trustees meeting May 9, 2006.
The Trust's Statement of Additional Information includes additional information
about the Trust's trustees and officers. To request your free copy of the
Statement of Additional Information, call toll free 1-888-STI-FUND.
36
ADDITIONAL INFORMATION (UNAUDITED)
EXPENSE EXAMPLES
As a Fund shareholder, you incur two types of costs: (1) transaction costs; and
(2) ongoing costs, including management fees, distribution fees, and other Fund
expenses. These examples are intended to help you understand your ongoing costs
(in dollars) of investing in a Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from October 1, 2005 through March 31,
2006.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Classic Institutional Cash
Management Money Market Fund...... Institutional Shares $1,000.00 $1,020.49 $0.81 0.16%
Classic Institutional Municipal Cash
Reserve Money Market Fund......... Institutional Shares 1,000.00 1,014.06 0.95 0.19
Classic Institutional U.S.
Government Securities Money Market
Fund.............................. Institutional Shares 1,000.00 1,020.00 0.96 0.19
Classic Institutional U.S. Treasury
Securities Money Market Fund...... Institutional Shares 1,000.00 1,019.53 0.96 0.19
Corporate Trust 1,000.00 1,018.26 2.16 0.43
Shares
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on a Fund's actual expense ratio and an assumed rate
of return of 5% per year before expenses, which is not the Fund's actual return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. Therefore, the
table is useful in comparing ongoing costs only, and will not help you determine
the relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Classic Institutional Cash
Management Money Market Fund...... Institutional Shares $1,000.00 $1,024.13 $0.81 0.16%
Classic Institutional Municipal Cash
Reserve Money Market Fund......... Institutional Shares 1,000.00 1,023.98 0.96 0.19
</Table>
37
ADDITIONAL INFORMATION (UNAUDITED)
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06
------------- ------------- ---------------- ----------------
Classic Institutional U.S.
Government Securities Money Market
Fund.............................. Institutional Shares $1,000.00 $1,023.98 $0.96 0.19%
Classic Institutional U.S. Treasury
Securities Money Market Fund...... Institutional Shares 1,000.00 1,023.98 0.96 0.19
Corporate Trust 1,000.00 1,022.79 2.17 0.43
Shares
</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 fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
PROXY VOTING
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-888-STI-FUND. The information also is
included in the Funds' Statement of Additional Information, which is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio
securities held during the most recent twelve months ended June 30 is available
on the Funds' website at www.sticlassicfunds.com and on the Securities and
Exchange Commission's website at www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review or, for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
38
(This page intentionally left blank)
INVESTMENT ADVISER:
Trusco Capital Management, Inc.
This information must be preceded or accompanied by a current prospectus for
each Fund described. An investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before investing or sending
money. This and other important information about STI Classic Funds can be found
in the Fund's prospectus. For additional information, please call
1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus
carefully before investing.
DISTRIBUTOR:
BISYS Fund Services Limited Partnership
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
STI CLASSIC FUNDS
STI-AIMM-0306
5/06
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions. This code of
ethics is included as an Exhibit.
(b) During the period covered by the report, with respect to the registrant's
code of ethics that applies to its principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions; there have been no amendments to, nor any waivers
granted from, a provision that relates to any element of the code of ethics
definition enumerated in paragraph (b) of this Item 2.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
3(a)(1) The registrant's board of directors has determined that the registrant
has at least one audit committee financial expert serving on its audit
committee.
3(a)(2) The audit committee financial expert is Warren Y. Jobe, who is
"independent" for purposes of this Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Audit Fees: the aggregate fees billed for each of the last two fiscal years for
professional services rendered by PricewaterhouseCoopers LLP for the audit of
the Trust's annual financial statements or services that are normally provided
by the accountant in connection with statutory and regulatory filings or
engagements for those fiscal years were as follows:
CURRENT YEAR PREVIOUS YEAR
------------ -------------
(a) Audit Fees $775,780 $700,260
(b) Audit-Related Fees $109,170(1) $ 94,500(1)
(c) Tax Fees $ 0 $ 0
(d) All Other Fees $ 0 $ 0
(1) Services related to security count examinations under Rule 17f-2 of the
Investment Company Act.
e(1) Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust's
Audit Committee Charter provides that the principal responsibilities of the
Committee shall include approving audit and non-audit services an independent
accounting firm provides to the Trust (and certain Trust service providers) as
required by and in accordance with applicable law. The Committee is authorized
to develop policies and procedures, in accordance with applicable law, that
provide for the advance pre-approval of some or all audit and non-audit
services. The Committee is further authorized to delegate its responsibility to
pre-approve audit and non-audit services to one or more members of the
Committee, in accordance with applicable law.
e(2) None of the services summarized in (b)-(d), above, were approved by the
Audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g)
CURRENT YEAR PREVIOUS YEAR
- ------------ -------------
$3,100,592(1) $3,505,864(1)
(1) Non-audit services relate principally to certain technical accounting
advice on financial products of the Bank; Sarbanes-Oxley 404
implementation; review of certain registration statements and regulatory
filings; issuance of comfort letters; and, tax compliance services to other
entities controlled by SunTrust Banks, Inc.
(h) In regards to Item 4 (g), The audit committee has considered that the
provision of non-audit services that were rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of this
report, that these disclosure controls and procedures are adequately designed
and are operating effectively, except as discussed below, to ensure that
information required to be disclosed by the registrant on Form N-CSR is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.
In connection with its audit of the registrant's financial statements for the
period ended March 31, 2006, PricewaterhouseCoopers LLP has advised management
of the registrant that the registrant did not maintain effective controls over
the accuracy of certain financial highlight data in the registrant's annual
report. Specifically, the registrant did not maintain controls sufficient to
ensure that total return data, though properly calculated from the registrant's
accounting system, was accurately transferred to the financial statements.
PricewaterhouseCoopers LLP's internal control report, which discusses this
matter, is filed as an Exhibit to the registrant's most recent Form N-SAR.
(b) There were no significant changes in the registrants internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that have materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM
2 IS ATTACHED HERETO.
(a)(2) CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO.
(a)(3) NOT APPLICABLE.
(b) CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) STI Classic Funds
By (Signature and Title)* /s/ Joel B. Engle
------------------------------------------------------
Joel B. Engle Treasurer
Date June 8, 2006
--------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ R. Jeffrey Young
------------------------------------------------------
R. Jeffrey Young President
Date June 8, 2006
--------------------------------
By (Signature and Title)* /s/ Joel B. Engle
------------------------------------------------------
Joel B. Engle Treasurer
Date June 8, 2006
--------------------------------
* Print the name and title of each signing officer under his or her
signature.