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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05551
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AmSouth Funds
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(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
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Date of fiscal year end: 7/31/05
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Date of reporting period: 7/31/05
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Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 ("Act") (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
Item 1. Reports to Stockholders.
Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1
under the Act (17 CFR 270.30e-1).
ANNUAL REPORT
JULY 31, 2005
[GRAPHIC] AMSOUTH FUNDS(R)
www.amsouthfunds.com
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
TABLE OF CONTENTS
Glossary of Terms ........................................................ 1
Management Discussion of Performance
Message from the Investment Advisor ................................. 2
Fund Summary
Value Fund .......................................................... 4
Select Equity Fund .................................................. 6
Enhanced Market Fund ................................................ 8
Large Cap Fund ...................................................... 10
Capital Growth Fund ................................................. 12
Mid Cap Fund ........................................................ 14
Small Cap Fund ...................................................... 16
International Equity Fund ........................................... 18
Balanced Fund ....................................................... 20
Strategic Portfolios ................................................ 22
Government Income Fund .............................................. 28
Limited Term Bond Fund .............................................. 30
High Quality Bond Fund .............................................. 32
High Quality Municipal Bond Fund .................................... 34
Florida Tax-Exempt Fund ............................................. 36
Tennessee Tax-Exempt Fund ........................................... 38
Money Market Funds .................................................. 40
Schedule of Portfolio Investments
Value Fund .......................................................... 41
Select Equity Fund .................................................. 42
Enhanced Market Fund ................................................ 42
Large Cap Fund ...................................................... 46
Capital Growth Fund ................................................. 47
Mid Cap Fund ........................................................ 48
Small Cap Fund ...................................................... 52
International Equity Fund ........................................... 53
Balanced Fund ....................................................... 59
Strategic Portfolios: Aggressive Growth Portfolio ................... 61
Strategic Portfolios: Growth Portfolio .............................. 61
Strategic Portfolios: Growth and Income Portfolio ................... 62
Strategic Portfolios: Moderate Growth and Income Portfolio .......... 62
Government Income Fund .............................................. 63
Limited Term Bond Fund .............................................. 63
High Quality Bond Fund .............................................. 65
High Quality Municipal Bond Fund .................................... 66
Florida Tax-Exempt Fund ............................................. 70
Tennessee Tax-Exempt Fund ........................................... 72
Prime Money Market Fund ............................................. 73
Treasury Reserve Money Market Fund .................................. 74
Tax-Exempt Money Market Fund ........................................ 74
Institutional Prime Obligations Money Market Fund ................... 77
Statements of Assets and Liabilities ..................................... 82
Statements of Operations ................................................. 86
Statements of Changes in Net Assets ...................................... 90
Notes to Financial Statements ............................................ 94
Financial Highlights ..................................................... 110
Report of Independent Registered Public Accounting Firm .................. 128
(This Page Intentionally Left Blank)
GLOSSARY OF TERMS
Lipper Multi-Cap Core Funds Average is comprised of mutual funds that, by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap funds will generally have between 25%
to 75% of their assets invested in companies with market capitalizations (on a
three-year weighted basis) above 300% of the dollarweighted median market
capitalization of the S&P Mid-Cap 400 Index. Multi-Cap Core funds have wide
latitude in the companies in which they invest. These funds will normally have
an average price-to-earnings ratio, price-to-book ratio, and three-year earnings
growth figure, compared to the U.S. diversified multi-cap equity funds universe
average.
Lipper Multi-Cap Growth Funds Average is comprised of mutual funds that invest
in a variety of market capitalization ranges, without concentrating 75% of their
equity assets in any one market capitalization range over an extended period of
time. Multi-cap funds will generally have between 25% to 75% of their assets
invested in companies with market capitalizations (on a three-year weighted
basis) above 300% of the dollar-weighted median market capitalization of the S&P
MidCap 400 Index. Multi-cap Growth funds normally invest in companies with
long-term earnings expected to grow significantly faster than the earnings of
the stocks represented in a major unmanaged stock index. These funds will
normally have an above average P/E and P/B ratio and three-year earnings growth
figure, compared to that of the U.S. diversified multi-cap equity funds universe
average.
Lipper Large 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) greater than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Large-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 500 Index.
Lipper Flexible Portfolio Funds Average is comprised of mutual funds that
allocate their investments across various asset classes, including domestic
common stocks, bonds, and money market instruments with a focus on total return.
1
MESSAGE FROM THE INVESTMENT ADVISOR
We are pleased to present this report for the 12-month period between August 1,
2004 and July 31, 2005. The period was characterized by solid and sustained
economic expansion, despite the negative impact of high energy prices. The
healthy economy helped corporations generate strong profit growth, fueling a
rally in the equity markets. The bond markets experienced a flattening of the
yield curve, as yields rose on short-term fixed income securities but fell on
long-term bonds.
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The AmSouth Funds recently underwent two notable personnel changes. First, Brian
Sullivan was appointed Chairman of the funds' investment advisor, AmSouth Asset
Management, Inc., replacing Joseph Keating, who stepped down in order to explore
other outside career opportunities. Brian Sullivan brings to his new position a
deep understanding of investment management learned during 18 years of
experience running both equity and fixed income portfolios. Second, the AmSouth
Funds Board of Trustees also welcomed a new Chairman, Jim Woodward, who replaced
Dave Huber in that capacity.
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The economy grows despite headwinds
The economy appeared shaky at the beginning of the fiscal year. High and rising
prices on commodities, particularly crude oil, siphoned off the purchasing power
of consumers and businesses and threatened to boost inflation. The Federal
Reserve Board (the "Fed") began raising short-term interest rates just prior to
this period, in an attempt to combat higher inflation by removing excess
monetary stimulus. The increases in the federal funds rate also weighed on
prospects for economic growth.
Growth remained solid, however, as low mortgage rates buoyed the resilient
housing sector and allowed consumers to free up cash by refinancing home loans.
Business spending strengthened, as corporations began to deploy the large amount
of cash on their balance sheets in order to improve productivity and take
advantage of bonus depreciation allowances that expired at the end of 2004.
The economy gained momentum during the fourth calendar quarter of 2004. Oil
prices declined, while a weaker dollar made U.S. exporters' products more
competitive on the world market and increased the value of multinational firms'
foreign profits. Meanwhile, employment gains strengthened, supporting consumer
demand.
Those trends appeared to set the economy on track for healthy, selfsustaining
growth entering 2005. A number of factors soon threatened its equilibrium,
however. Oil prices began a renewed surge, again weighing on consumers' and
businesses' spending power. The weaker dollar, while beneficial for exporters,
also raised the possibility that higher yields on Treasury securities might be
necessary to induce foreign investors to continue funding wide budget and trade
deficits. Such a development might have acted as a brake on economic growth by
increasing borrowing costs. Meanwhile, the Fed continued its policy of gradually
raising short-term interest rates in order to forestall an uptick in inflation.
Business spending slowed but remained solid in early 2005, as corporations
continued to make investments that could improve productivity. Employment growth
also slowed, reducing consumer purchasing power. Furthermore, the housing sector
appeared to have peaked, as mortgage rates rose. In all, the economy grew at an
annualized rate of 3.1% during the first quarter of 2005--healthy, but slower
than in any calendar quarter since the first three months of 2004.
Inflation appeared to pick up in late winter, as the Fed noted that rising oil
prices had begun to lead to higher consumer prices. That comment generated a
great deal of inflation-related concern in the media, but we believe that the
Fed was simply attempting to "talk up" longterm bond yields that it viewed as
unhealthily low. The fundamentals that would have suggested problematic
increases in inflation, such as high capacity utilization and strong
year-over-year consumer price increases, remained indicative of an inflation
rate that was increasing at a modest, controllable pace.
The final months of the period showed renewed strength in the economy. Bond
yields fell to low levels, stimulating growth by reducing borrowing costs. That
trend contributed to lower mortgage rates, leading to resurgent housing
activity. Business spending also strengthened considerably. Consumer spending
slowed but was supported by a pickup in durable goods orders, which in part
represented consumers' response to major discounts by auto manufacturers. Those
largely positive trends more than offset the effects of rising oil prices and
continued tightening by the Fed. The economy during the second calendar quarter
generated annualized growth of 3.4%.
Stocks post solid gains
The stock market began the fiscal year mired in a slump that stemmed from
investor concerns about terrorism, oil prices, economic growth prospects and
political uncertainty during the close presidential campaign. Stocks began to
rebound in mid-August, however. Strong profit reports and attractive valuations
enticed investors to buy, outweighing negative factors such as high-profile
problems with certain pharmaceutical companies' products.
Many investors stayed on the sidelines during early fall, however, waiting until
the resolution of the presidential election cleared the political outlook. The
quick outcome to the election improved investors' visibility on the future
direction of taxes and regulations, and encouraged them that business spending
would pick up. Oil price declines added fuel to the fire, and a powerful stock
market surge ensued during the fourth quarter of 2004.
The stock market cooled off in early 2005. The market contained pent-up selling
pressure following the fourth-quarter rally, and renewed strength in oil prices
provided the impetus for investors to take profits. Stocks became very volatile
in late winter and early spring, as investors tried to weigh positive influences
such as healthy profit reports and increased dividend payouts and
merger-and-acquisition activity with negative factors such as rising oil prices
and the possibility of higher inflation and interest rates.
Meanwhile, conflicting economic data made it difficult to discern the direction
of the economy. Growth appeared to soften during March, causing stocks to sell
off significantly. The S&P 500 lost 7.2% between March 7 and April 20, pushing
valuations to their most attractive levels since the previous August.
Stocks began to recover in May, and posted strong returns for the remainder of
the 12-month period. Moderating economic growth and signs of tame inflation
encouraged investors that the Fed would not pursue an overly aggressive
tightening policy--the historical cause of
2
most bear markets. Meanwhile, corporations continued their run of strong profit
growth. Rising oil prices and concerns about isolationist trade policies caused
a hiccup in late June, but investors shook them off as corporate profits
continually exceeded expectations. Stocks resumed their gains during July,
despite major terrorist attacks in London and Egypt.
We stated early in the period that investors needed to climb a wall of worry
about terrorism, oil prices and other factors for stocks to post gains. It
appears that by the end of the period they had done so.
A flatter yield curve
The Fed raised short-term interest rates eight times during the period, for a
total increase of two percentage points. Short-term bond yields moved in line
with those increases, with the yield on the threemonth Treasury note rising by
an equivalent amount. Intermediateterm bond yields rose more modestly, with the
yield on the five-year Treasury note climbing 0.43 percentage points.
Meanwhile, yields on long-term bonds declined, an unexpected development that
Federal Reserve Chairman Alan Greenspan in February called a "conundrum". We
attribute the decline in longterm yields to the Fed's effectiveness at managing
inflation, as well as nearly insatiable global demand for risk-free income.
Purchases of Treasury bonds by central banks in China and elsewhere, a strategy
intended to prop up exports from those countries by artificially weakening their
currencies against the dollar, also contributed to lower long-term bond yields.
China changed its currency-fixing policy late in the period, making it likely to
purchase somewhat fewer Treasury bonds going forward. That development
contributed to an uptick in yields during July.
Corporate bonds outperformed Treasuries during the period. Lowquality bonds led
the corporate fixed-income markets during much of the fiscal year, as a solid
economy strengthened cash flow at weak firms and made them less likely to
default on their loans. Investors also prized the higher yields available on
low-quality debt, especially given the low income offered by government bonds
and other lowrisk securities. That trend shifted in early spring, after profit
warnings from major automakers caused a sell-off of high-yield bonds. Subsequent
reports that large hedge funds had lost substantial sums on automakers' bonds
raised fears of a contagion, and investors fled to higher quality securities.
Looking ahead
We believe the largest threat to the economy and stock market is overly
aggressive tightening by the Fed. Assuming the Fed does not raise interest rates
too far, the next phase of the economic expansion should begin to unfold next
year. Low bond yields currently are acting as a tail wind for the economy,
stimulating growth despite persistently high energy prices and rising short-term
interest rates. The key to longevity for an economic cycle is steady, consistent
growth that does not produce any major imbalances, and monetary policy that does
not allow a buildup of inflationary pressures.
We are optimistic on the outlook for common stocks. On a simple valuation basis
common stocks look attractive relative to fixedincome securities. The S&P 500 as
of August 1, 2005 traded at less than 17 times our conservative estimate for
2005 operating earnings. Corporate profits are at record highs, the quality of
earnings is better than ever, corporate balance sheets are in excellent shape
and companies are cash rich, giving them wide latitude to increase dividends,
buy back stock, buy other companies, increase capital spending or pay down debt.
Furthermore, the economic recovery appears solid and self-sustaining, and
inflationary pressures are modest. The Fed does not have any reason to risk
triggering an economic recession, given the low level of domestic inflation and
the lackluster global economic backdrop.
Last year, the resolution of the presidential election sparked the rally in
stock prices; this year we feel the impetus will come from the Fed. A pause in
the increases on short-term interest rates would provide visibility for economic
growth and corporate earnings over the coming year, and investors would likely
respond positively.
Changes at the AmSouth Funds
This summer, AmSouth Asset Management, Inc. signed an agreement to sell its
mutual fund management business to Pioneer Investment Management, Inc. and
recommended to the Board of Trustees that the AmSouth Mutual Funds be
reorganized with and into funds in the Pioneer Investment Management family. We
believe the reorganization will be beneficial to shareholders in the AmSouth
Funds, given Pioneer Investments' record of fund performance, competitive fund
expenses and customer service, as well as the depth of investment options
Pioneer Investments makes available to shareholders. For more information about
what the merger means for you and your investments, please refer to the AmSouth
Funds proxy statement dated August 22, 2005.
Thank you for selecting the AmSouth Funds. We appreciate the faith you have
entrusted in us, and wish you well in the years ahead.
Sincerely,
/s/ Brian B. Sullivan
Brian B. Sullivan, CFA
Investments in the Funds are neither guaranteed by, nor obligations of, AmSouth
Bank or any other bank and are not insured by the FDIC or any other government
agency. Investment in mutual funds involves risk, including the possible loss of
principal. This material must be preceded or accompanied by a current
prospectus.
3
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AMSOUTH VALUE FUND
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PORTFOLIO MANAGER
Brian B. Sullivan, CFA
Director, Value Equity Strategies
AmSouth Bank
AmSouth Asset Managment, Inc.
Brian B. Sullivan, CFA, has been the portfolio manager for the Value Fund since
June 2004. Mr. Sullivan has more than 18 years of investment management
experience and holds an MBA in finance and a bachelor's degree in economics.
INVESTMENT CONCERNS
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.
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PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Value Fund uses a `value investing' approach. Rather than pursue
hot stocks that are in high demand, we search for solid companies with good
fundamentals that are available at attractive prices. By adhering to this
investment approach through entire market cycles, we seek to achieve above
average long-term results with less volatility than the overall market."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended?
A. The Fund gained 18.81% (Class A Shares at NAV). That compared to a 16.90%
return for its benchmark, the Standard & Poor's Barra Value Index.
Q. What factors affected the Fund's performance?
A. Stocks generally performed well, helping this Fund generate strong returns.
The stock market staged a strong rally during the fourth quarter of 2004. Stocks
slumped during early 2005, but surged again during late spring and early summer.
Value stocks performed particularly well, benefiting this Fund and its
benchmark.
Individual security selection was the greatest contributor to the Fund's strong
performance relative to the benchmark. Stock selection in the consumer
discretionary sector was especially beneficial. The Fund's allocation to
consumer discretionary stocks gained 32.04% during the 12-month period,
substantially higher than the 11.96% return of the consumer discretionary stocks
represented in the index. Security selection in financial services, industrials
and health care also boosted relative returns.+
The Fund's sector weightings generally dragged on performance versus the
benchmark. A significantly underweight position in utilities stocks was
particularly costly, because utilities stocks proved to be the market's
second-best performing sector. A slightly smaller-than-benchmark stake in energy
stocks also dampened relative returns, as energy led the market during the
period.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
4
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AMSOUTH VALUE FUND
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[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Value Fund (Class A Shares)*
7/31/1995 9453
9667
'95 9988
10686
11045
11099
'96 11560
12147
13860
15324
'97 15293
17320
17290
15462
'98 17987
18080
19923
17716
'99 18682
18428
17435
19045
'00 19630
19751
21600
18975
'01 20432
21662
17388
12797
'02 14442
13397
15855
15876
'03 18064
18790
18613
18865
'04 20798
20603
20975
7/31/2005 21723
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- --------------------------------------------------------------
Class A Shares* 12/1/88 12.38% 2.99% 8.07%
- --------------------------------------------------------------
Class B Shares** 9/3/97(1) 13.03% 3.06% 8.04%
- --------------------------------------------------------------
Class I Shares 9/2/97(1) 18.94% 4.29% 8.81%
- --------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 versus a similar investment in the Fund's benchmark.
The performance of the AmSouth Value Fund is measured against the S&P 500/BARRA
Value Index, an unmanaged market capitalization weighted index comprised of a
subset of the S&P 500 with low price-to-book ratios relative to the S&P 500 as a
whole. The Index is not available for investment and does not reflect fees,
brokerage commissions or other expenses of investing. During the period shown,
the Advisor waived and/or reimbursed fees for various expenses. Had these
waivers and/or reimbursements not been in effect, performance quoted would have
been lower.
(1) Performance for the Class B and Class I Shares, which were first offered on
9/3/97 and 9/2/97, respectively, are based on the historical performance of
the Class A Shares (without sales charge) prior to that date. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
5
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AMSOUTH SELECT EQUITY FUND
================================================================================
PORTFOLIO MANAGERS
OakBrook Investments, LLC (sub-advisor)
Neil Wright, President and Chief Investment Officer
Janna Sampson, Director of Portfolio Management
Peter Jankovskis, Director of Research
As portfolio managers for the AmSouth Select Equity Fund, Neil Wright, Janna
Sampson and Peter Jankovskis are three veteran investment professionals who have
more than 50 years of combined experience. Neil and Peter hold PhDs in
economics, and Janna holds an MA in economics. They have worked together for the
past 11 years. They also serve as the portfolio managers for the AmSouth
Enhanced Market Fund and the AmSouth Mid Cap Fund.
INVESTMENT CONCERNS
A concentrated portfolio may add a measure of volatility to performance, as
major fluctuations in any one holding will likely affect the fund more than a
fund with a greater diversification.
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.
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PORTFOLIO MANAGERS' PERSPECTIVE
"Our goal in managing the AmSouth Select Equity Fund is to outperform the S&P
500 Stock Index over a complete market cycle while experiencing less volatility
than the broad stock market. We look for 20 to 25 leading companies that have a
dominant market position, or a well-known brand name, yet whose stock price is
undervalued. To make this `growth at a reasonable price' strategy work, we use
economic theory to determine whether a company is likely to recover its dominant
position after a dip. We believe our patient, long-term approach offers
excellent defensive protection, which can reduce losses when the market is
weak."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 7.84% (Class A Shares at NAV), compared
to a 14.04% total return for its benchmark, the S&P 500 Stock Index.
Q. What factors affected the Fund's performance?
A. The stock market as a whole posted strong gains during the 12-month period.
The type of large-cap stocks in which this Fund invests generated only modest
returns, however. This Fund's subadvisor, Oakbrook Investments, seeks shares of
industry- leading firms with stable and predictable earnings growth. The
managers positioned the portfolio to capitalize on a recovering economy, while
avoiding shares that would likely be sensitive to rising interest rates.
Shares of large firms with stable earnings growth were out of favor during this
period. Investors prized stocks of smaller, faster-growing companies, as well as
stocks in highly cyclical sectors such as energy and basic materials. Those
types of stocks typically do not exhibit the earnings predictability this Fund
demands, so the Fund did not benefit from their superior performance. The
market's bias against stable growers accounted for the majority of the Fund's
underperformance relative to the benchmark. Weak returns at individual companies
in the media, pharmaceutical and retail industries also dragged on relative
returns.+
Individual stock performance provided the largest boost to the Fund's returns
versus the benchmark. For example, certain of the Fund's holdings in the
technology and retail sectors benefited from the improving economy and
outperformed the index.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The AmSouth Select Equity Fund is subadvised by OakBrook Investments, LLC, which
is paid a fee for its services.
6
================================================================================
AMSOUTH SELECT EQUITY FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Select Equity Fund (Class A Shares)*
9/1/1998 9452
9928
'98 11400
10994
11973
10409
'99 10246
9346
9461
9840
'00 11543
10826
11439
11274
'01 12403
12790
11808
10746
'02 11272
10644
12362
12684
'03 14206
14848
14860
14297
'04 15616
15368
14544
7/31/2005 15226
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 9/1/98 1.88% 9.72% 6.27%
- ---------------------------------------------------------------
Class B Shares** 9/2/98(1) 2.03% 9.92% 6.37%
- ---------------------------------------------------------------
Class I Shares 12/3/98(1) 8.02% 11.15% 7.32%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 9/1/98
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Select Equity Fund is measured against the S&P
500 Stock Index, a widely recognized unmanaged index of 500 common stocks. The
Index is not available for investment and does not reflect fees, brokerage
commissions or other expenses of investing. During the period shown, the
Advisors waived and/or reimbursed fees for various expenses. Had these waivers
and/or reimbursements not been in effect, performance quoted would have been
lower.
(1) Performance for the Class B and Class I Shares, which commenced operations
on 9/2/98 and 12/3/98, respectively, are based on the historical
performance of the Class A Shares (without sales charge) prior to that
date. The historical performance for the Class B Shares has been restated
to reflect the Class B 12b-1 fees and the contingent deferred sales charge.
7
================================================================================
AMSOUTH ENHANCED MARKET FUND
================================================================================
PORTFOLIO MANAGERS
OakBrook Investments, LLC (sub-advisor):
Neil Wright, President and Chief Investment Officer
Janna Sampson, Director of Portfolio Management
Peter Jankovskis, Director of Research
Neil Wright, Janna Sampson and Peter Jankovskis are three veteran investment
professionals who have more than 50 years of combined experience. Neil and Peter
have PhDs in economics, and Janna holds an MA in economics. They have worked
together for the past 11 years. In addition to the Enhanced Market Fund, they
also serve as portfolio managers of the AmSouth Select Equity Fund and the
AmSouth Mid Cap Fund.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
"Our stock selection strategy for the AmSouth Enhanced Market Fund is fairly
conservative, with Fund returns having a very close correlation to those of the
S&P 500 Stock Index. We try to be 100% invested and do not try to time the
market. Through the use of a sophisticated computer model, we attempt to
identify and invest in 350 to 400 stocks within the S&P 500 that are starting to
experience a widening range of investor expectations. We look to overweight
those stocks that we believe may outperform the overall market."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 15.53% (Class A Shares at NAV). The
Fund's benchmark, the S&P 500 Stock Index, returned 14.04%.
Q. What factors affected the Fund's performance during the period?
A. Stocks generally posted strong gains. The market rallied during the fourth
calendar quarter of 2004, then slumped as investors weighed reports on the
economy and oil prices. The market picked up again late in the fiscal year,
boosting the Fund's absolute returns.
This Fund's sub-advisor, Oakbrook Investments, employs a modified indexing
strategy. The managers emphasize or de-emphasize the stocks in the S&P 500 index
based on a quantitative model that monitors investor expectations for each
stock.
That approach boosted the Fund's returns against the benchmark during the
12-month period. Emphasizing particular stocks in the consumer discretionary,
health care and industrials sectors had the largest positive influence on
relative gains. A modestly overweight stake in the energy sector also boosted
performance against the benchmark, as energy stocks benefited from high and
rising oil prices throughout much of the period. Meanwhile, individual stock
selection in the consumer staples sector weighed on relative returns.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The AmSouth Enhanced Market Fund is subadvised by Oakbrook Investments, LLC,
which is paid a fee for its services.
8
================================================================================
AMSOUTH ENHANCED MARKET FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Enhanced Market Fund (Class A Shares)*
9/1/1998 9452
10048
'98 12130
12746
13624
12840
'99 14684
15070
14635
14546
'00 13474
11799
12504
10578
'01 11779
11848
10174
8328
'02 9014
8673
10007
10251
'03 11521
11685
11856
11675
'04 12679
12565
12758
7/31/2005 13264
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 9/1/98 9.20% -2.84% 4.17%
- ---------------------------------------------------------------
Class B Shares** 9/2/98(1) 9.79% -2.83% 4.23%
- ---------------------------------------------------------------
Class I Shares 12/11/98(1) 15.74% -1.60% 5.18%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 9/1/98
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Enhanced Market Fund is measured against the S&P
500 Stock Index, a widely recognized unmanaged index of 500 common stocks. The
Index is not available for investment and does not reflect fees, brokerage
commissions or other expenses of investing. During the period shown, the Advisor
waived and/or reimbursed fees for various expenses. Had these waivers and/or
reimbursements not been in effect, performance quoted would have been lower.
(1) Performance for the Class B and Class I Shares, which commenced operations
on 9/2/98 and 12/11/98, respectively, are based on the historical
performance of the Class A Shares (without sales charge) prior to that
date. The historical performance for the Class B Shares has been restated
to reflect the Class B 12b-1 fees and the contingent deferred sales charge.
9
================================================================================
AMSOUTH LARGE CAP FUND
================================================================================
PORTFOLIO MANAGER
Ronald E. Lindquist
Co-Director, Growth Equity Strategy
AmSouth Bank
AmSouth Asset Management, Inc.
Ron Lindquist has more than 35 years of focused investment management
experience. He has served as portfolio manager of AmSouth's Large Cap Fund since
its inception and also serves as co-director of growth equity strategies for
AmSouth Asset Management, Inc. A founding member of the Financial Analysts
Society of South Florida, Mr. Lindquist holds a master's degree in management
science from Florida International University and a bachelor's degree in finance
from Florida State University.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Large Cap Fund is managed in a traditional large-cap growth style.
Our goal is to outperform the S&P 500 Stock Index over multiple market cycles.
We look for industry leaders that have shown the potential to generate
relatively predictable, above-average 3- to 5-year earnings streams. We
typically purchase stocks of large, high-quality companies with superior
earnings per share growth rates and correspondingly appropriate price/earnings
ratios1. We consider sales when a stock's relative price/earnings ratio is well
in excess of historical, similar-market norms or when a significant and ongoing
earnings stream deterioration is forecast."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 11.82% (Class A Shares at NAV). That
compared to a 14.04% total return for the Fund's benchmark, the S&P 500 Stock
Index.
Q. What factors affected the Fund's performance during the period?
A. Equities in general generated healthy gains during the 12- month period, a
trend that boosted the returns of this Fund and its benchmarks. Small stocks and
value stocks led the market, an environment that did not favor very large-cap,
growth-oriented portfolio.
Energy stocks produced the strongest gains of any sector represented in the S&P
500. This narrowly focused growth Fund invests in shares of the types of
companies that historically have provided the greatest earnings per share gains
over multiple market cycles, and energy stocks do not fit that profile. We
therefore did not hold any exposure in the energy sector. That omission weighed
on the Fund's returns against the benchmarks. Likewise, the Fund does not invest
in utilities stocks, because they do not possess the growth characteristics we
seek. Utilities also generated strong gains, so our avoidance of that sector
dragged on relative returns.+
The Fund's continued emphasis on "blue-chip" shares of the market's largest
companies also reduced relative returns. For example, the S&P 500 holds nearly
15% of its market value in stocks with market caps of less than $10 billion,
while this Fund holds less than 9% of assets in stocks of that size. Smaller
stocks significantly outperformed larger shares, so this Fund's mega-cap focus
weighed on returns against the S&P 500 and its other style benchmarks.+
The Fund's relative returns got a big boost from its security selection among
health care stocks, and also from an overweight allocation to that sector. The
health-care stocks in the portfolio gained an average of 18%, while the S&P
500's health-care sector gained approximately 11%. The Fund's selection
advantage was magnified by our 26% allocation to health-care stocks, which was
roughly double the benchmark's weighting in the sector.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
10
================================================================================
AMSOUTH LARGE CAP FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Large Cap Fund (Class A Shares)*
7/31/1995 9448
9761
'95 10423
10816
11203
11616
'96 12260
12596
14875
15956
'97 16665
18779
19570
18406
'98 22977
23616
24712
23751
'99 27307
27575
28540
27592
'00 26702
23313
24089
21145
'01 23687
23850
20097
16507
'02 18175
17486
20217
20762
'03 22826
22927
23142
21953
'04 24025
23269
23582
7/31/2005 24689
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- ----------------------------------------------------------
Class A Shares* 8/3/92 5.65% -3.19% 9.46%
- ----------------------------------------------------------
Class B Shares** 12/15/98(1) 6.00% -3.12% 9.14%
- ----------------------------------------------------------
Class I Shares 12/14/98(1) 11.95% -1.94% 10.17%
- ----------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Large Cap Fund is measured against the S&P 500
Stock Index, a widely recognized unmanaged index of 500 common stocks. The Index
is not available for investment and does not reflect fees, brokerage commissions
or other expenses of investing. During the period shown, the Advisor waived
and/or reimbursed fees for various expenses. Had these waivers and/or
reimbursements not been in effect, performance quoted would have been lower.
The quoted returns reflect the performance from 7/31/95 to 12/13/98 of the DG
Equity Fund and from 12/14/98 to 3/12/00 of the ISG Large Cap Equity Fund, which
were open-end investment companies that were predecessor funds to the AmSouth
Large Cap Fund. The predecessor funds were managed using substantially the same
investment objective, policies and methodologies as the Fund.
(1) Performance for the Class B and Class I Shares, which commenced operations
on 12/15/98 and 12/14/98, respectively, are based on the historical
performance of the Class A Shares, including the performance of the
predecessor funds, (without sales charge) prior to that date. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
11
================================================================================
AMSOUTH CAPITAL GROWTH FUND
================================================================================
PORTFOLIO MANAGER
John Mark McKenzie
Co-Director, Growth Equity Strategy
AmSouth Asset Management, Inc.
John Mark McKenzie has been an investment manager since 1981. His experience
includes both equity portfolio and fixed income portfolio management. He has
managed a number of AmSouth Mutual Funds and was named portfolio manager of the
AmSouth Capital Growth Fund in 2004. In addition, he serves as Co- Director of
Growth Equity Strategy for AmSouth Asset Management, Inc. Mr. McKenzie holds a
bachelor's degree in banking and finance from the University of Mississippi, and
earned his law degree from the University of Mississippi School of Law. He is a
member of the Mississippi Society of Financial Analysts and the Mississippi
State Bar Association.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"As a growth-oriented fund, the Capital Growth Fund focuses on industry leaders
with high earnings per share. We generally look for annual earnings growth of
15% or higher. After identifying strong themes, such as technology or health
care, we select companies that have financial strength, good return on equity,
reasonable debt-to-equity ratios and strong revenue growth. We apply sell
discipline through price targets and downside alerts."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 12.42% (Class A Shares at NAV). That
compared to a 11.16% total return for the Fund's benchmark, the S&P 500/BARRA
Growth Index.
Q. What factors affected the Fund's performance?
A. Stocks posted solid returns for the fiscal year. Shares of the large,
growth-oriented stocks in which this Fund invests generally trailed smaller,
value stocks, but the Fund nevertheless produced healthy gains.
The Fund's returns were superior to those of its benchmark during the period,
largely because of strong stock selection in the health care and consumer
discretionary sectors. Relative returns in health care benefited from strong
results by stocks in the biotechnology and HMO industries. The Fund's retail
holdings also performed well, helping the consumer discretionary allocation
outperform the benchmark's stake in that sector. Furthermore, a significantly
overweight position in consumer discretionary stocks increased the effect of
positive security selection on the Fund's relative returns. Stock selection in
the technology sector also boosted performance against the benchmark.+
We held a significantly underweight position in energy stocks throughout most of
the period, because energy stocks typically do not offer the consistently high
earnings growth rates that we seek. The degree to which the Fund was
under-weight in energy increased substantially in December, when the benchmark
was modified to hold a dramatically larger percentage of its overall
capitalization in that sector. Energy was the market's bestperforming economic
sector, so the Fund's underweight stake weighed on relative returns.+
The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
12
================================================================================
AMSOUTH CAPITAL GROWTH FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Capital Growth Fund (Class A Shares)*
7/31/1995 9447
9712
'95 10243
11062
11549
11659
'96 12522
12398
14552
15808
'97 16378
18591
18706
17636
'98 21627
22755
23486
22271
'99 26354
27913
27509
28776
'00 26173
20640
22192
17475
'01 20481
20520
17336
14490
'02 15326
15067
16878
17535
'03 19366
19266
19465
18490
'04 20102
19403
19742
7/31/2005 20741
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- ------------------------------------------------------------
Class A Shares* 4/1/96(1) 6.23% -6.52% 7.57%
- ------------------------------------------------------------
Class B Shares** 2/5/98(2) 6.57% -6.47% 7.24%
- ------------------------------------------------------------
Class I Shares 10/3/97(2) 12.63% -5.29% 8.25%
- ------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
Performance of the AmSouth Capital Growth Fund is measured against the S&P
500/Barra Growth Index, a widely recognized unmanaged index of the stocks in the
S&P 500 having high book-to price ratios. Neither Index is available for
investment and the performance of each index does not reflect fees, brokerage
commissions or other expenses of investing. During the period shown, the Advisor
waived and/or reimbursed fees for various expenses. Had these waivers and/ or
reimbursements not been in effect, performance quoted would have been lower.
The quoted returns reflect the performance from 4/1/96 to 3/12/00 of the ISG
Capital Growth Fund, an open-end investment company that was the predecessor
fund to the AmSouth Capital Growth Fund.
(1) The ISG Capital Growth Fund commenced operations on 4/1/96, through a
transfer of assets from certain collective trust fund ("commingled")
accounts managed by First American National Bank, using substantially the
same investment objective, policies and methodologies as the Fund. The
quoted performance of the Fund includes performance of the predecessor fund
and commingled accounts for periods dating back to 7/31/95, and prior to
the Fund's commencement of operations, restated to reflect the expenses
associated with the Fund. The predecessor fund and commingled 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 commingled accounts had been registered,
their performance may have been adversely affected.
(2) Performance for the Class B and Class I Shares, which were first offered on
2/5/98 and 10/3/97, respectively, are based on the historical performance
of the Class A Shares, including the performance of the predecessor fund
and commingled accounts, (without sales charge) prior to that date. The
predecessor fund and commingled accounts were managed using substantially
the same investment objective, policies and methodologies as the Fund. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
13
================================================================================
AMSOUTH MID CAP FUND
================================================================================
PORTFOLIO MANAGERS
OakBrook Investments, LLC (sub-advisor):
Neil Wright, President and Chief Investment Officer
Janna Sampson, Director of Portfolio Management
Peter Jankovskis, Director of Research
As portfolio managers for the AmSouth Mid Cap Fund, Neil Wright, Janna Sampson
and Peter Jankovskis are three veteran investment professionals who have more
than 50 years of combined experience. Neil and Peter have PhDs in economics, and
Janna holds an MA in economics. They have worked together for the past 11 years.
The team also manages the AmSouth Select Equity Fund and the AmSouth Enhanced
Market Fund.
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.
Mid-capitalization stocks typically carry additional risk, since smaller
companies generally have higher risk of failure and, historically, their stocks
have experienced a greater degree of volatility.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
"Our stock selection strategy for the AmSouth Mid Cap Fund is fairly
conservative, with Fund returns having a very close correlation to those of the
S&P Mid Cap 400 Stock Index. We try to be 100% invested and do not try to time
the market. Through the use of a sophisticated computer model, we attempt to
identify and invest in 320 to 380 stocks within the S&P Mid Cap 400 that are
starting to experience a widening range of investor expectations. We look to
overweight those stocks that we believe may outperform the overall market."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 26.60% (Class A Shares at NAV). That
compared to a 25.89% total return for the Fund's benchmark, the S&P MidCap 400
Index.
Q. What factors affected the Fund's performance during the period?
A. Mid-cap stocks surged during much of this 12-month period, helping this Fund
and its benchmark generate strong gains.
This Fund's sub-advisor, Oakbrook Investments, uses an enhanced-indexing
investment strategy. The managers invest in the stocks in the S&P 400, and over-
or under-weight them based on a quantitative model that monitors investor
expectations surrounding each stock. Oakbrook emphasizes the stocks which
investors expect to generate superior performance, and deemphasizes stocks
expected to lag.
That process boosted the Fund's relative returns during this period. In
particular, the enhanced indexing model increased the weighting of particular
stocks in the information technology and consumer discretionary sectors. Those
stocks out-gained the index, lifting relative returns. The Fund's returns versus
the benchmark also benefited from a modestly overweight position in energy
stocks, which led the market during much of the period on the strength of
historically high oil prices. The Fund's individual energy selections did not
keep pace with the energy stocks in the benchmark, however, dragging on relative
performance.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The AmSouth Mid Cap Fund is subadvised by OakBrook Investments, LLC, which is
paid a fee for its services.
14
================================================================================
AMSOUTH MID CAP FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Mid Cap Fund (Class A Shares)*
5/4/1999 9452
10331
10851
'99 16380
18507
16115
16928
'00 13932
11399
12231
9565
'01 10718
10558
9783
8157
'02 8603
8163
9556
10143
'03 11552
12087
12196
11949
'04 13380
13313
13947
7/31/2005 14708
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 5/4/99 19.67% 0.77% -2.48%
- ---------------------------------------------------------------
Class B Shares** 5/4/99 20.70% 0.69% -2.56%
- ---------------------------------------------------------------
Class I Shares 5/4/99 26.80% 1.99% -1.28%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 5/4/99
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Mid Cap Fund is measured against the S&P MidCap
400 Index, a widely recognized unmanaged index of 400 domestic stocks. The Index
is not available for investment and does not reflect fees, brokerage commissions
or other expenses of investing. During the period shown, the Advisor waived
and/or reimbursed fees for various expenses. Had these waivers and/or
reimbursements not been in effect, performance quoted would have been lower.
The total returns reflect the performance from 5/4/99 to 3/12/00 of the ISG
Mid-Cap Fund, an open-end investment company that was the predecessor fund to
the AmSouth Mid Cap Fund. The predecessor fund was managed using substantially
the same investment objective, policies and methodologies as the Fund.
15
================================================================================
AMSOUTH SMALL CAP FUND
================================================================================
PORTFOLIO MANAGER
Sawgrass Asset Management, LLC (sub-advisor):
Dean McQuiddy, CFA
Principal and Director of Equity Investments
Dean McQuiddy serves as portfolio manager for the AmSouth Small Cap Fund. He has
nearly 20 years of experience in investment management and holds a BS in
finance. He created and managed the small-cap growth product at Barnett Capital
Advisors for 11 years.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"For the AmSouth Small Cap Fund, we use a disciplined investment process to
identify 60 to 80 fundamentally attractive small companies that share certain
attributes: above-market sales and earnings growth, increasing estimates of
future earnings and reasonable valuations. We aim to buy these companies in the
early stages of their growth--before their stocks get overvalued in the
marketplace."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 21.01% (Class A Shares at NAV). That
compared to a 22.58% total return for the Fund's benchmark, the Russell 2000(R)
Growth Index.
Q. What factors affected the Fund's performance?
A. Small-cap stocks generated powerful returns, helping the Fund and its
benchmark produce strong gains. Small growth stocks modestly lagged small value
stocks. That trend reversed itself during the final three months of the period,
however, when small growth stocks assumed leadership.
Stock selection in the consumer staples and consumer discretionary sectors
lifted the Fund's performance against the benchmark. Shares of certain apparel
and specialty retailers, as well as casino and hotel stocks, particularly
boosted relative gains. Stock selection among health-care services, facilities,
supplies and equipment stocks also helped the Fund's health-care allocation
outgain the benchmark's holdings in that sector.
The Fund's subadvisor, Sawgrass Asset Management, held an overweight position in
industrials stocks, so strong performance by that sector enhanced the Fund's
returns against the index. Moreover, the Fund's industrials holdings
outperformed the benchmark's allocation to that sector, largely due to strong
returns by particular defense and aerospace stocks. The Fund held a
substantially overweight position in energy, which proved to be the market's
best-performing sector for this 12-month period. The Fund's holdings in the
sector modestly lagged the benchmark's energy allocation, but the large
over-weight more than compensated for the slightly negative selection effect.
Stock selection within the information technology sector dragged on relative
returns. Shares of particular technology services and Internet companies caused
the Fund's technology stake to lag the benchmark's position in that sector.
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management, LLC,
which is paid a fee for its services.
16
================================================================================
AMSOUTH SMALL CAP FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Small Cap Fund (Class A Shares)*
3/3/1998 9764
9764
9328
7479
'98 8901
7186
8001
8105
'99 10323
12523
12561
12911
'00 12251
10390
10947
8739
'01 8844
9117
8297
7077
'02 6478
6131
7246
7856
'03 8707
8823
9086
8781
'04 9917
9769
9948
7/31/2005 10358
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 3/2/98 14.40% -3.78% 0.48%
- ---------------------------------------------------------------
Class B Shares** 3/2/98 14.87% -3.80% 0.44%
- ---------------------------------------------------------------
Class I Shares 3/2/98 21.21% -2.55% 1.40%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 3/2/98
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Small Cap Fund is measured against the Russell
2000(R) Growth Index, a widely recognized unmanaged index of common stocks of
small to mid-sized companies. The Index is not available for investment and does
not reflect fees, brokerage commissions or other expenses of investing. During
the period shown, the Advisor waived and/or reimbursed fees for various
expenses. Had these waivers and/or reimbursements not been in effect,
performance quoted would have been lower.
17
================================================================================
AMSOUTH INTERNATIONAL EQUITY FUND
================================================================================
PORTFOLIO MANAGERS
Dimensional Fund Advisors Inc. (sub-advisor)
Dimensional Fund Advisors Inc. employs a team approach in subadvising the
International Equity Fund. The Investment Committee sets policy and procedures,
and portfolio managers make daily decisions regarding the Fund. Karen Umland, VP
and portfolio manager, heads the international group. Portfolio managers on the
international team are located in Los Angeles, London and Sydney.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
"The AmSouth International Equity Fund is designed to provide diversified
exposure to the international large cap value asset class. The portfolio invest
in large cap stocks with high book values relative to price (value stocks). The
"value" parameter is determined on a country by country basis. Currently, the
Fund systematically invest in a broadly diversified portfolio of large "value"
stocks in 21 developed-market countries."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 24.44% (Class A Shares at NAV). That
compared to a 21.56% total return for the Fund's benchmark, the Morgan Stanley
Capital International EAFE(R) (Europe, Australasia and Far East) Index.
Q. What factors affected the Fund's performance?
A. The developed foreign stock markets in which the AmSouth International Equity
Fund invests surged during this period, helping the Fund and its benchmark
generate strong gains.
The Fund's sub-advisor, Dimensional Fund Advisors, employs a strict value
methodology to construct a portfolio that is broadly diversified across
geographical regions. The managers rank the stocks in each of the 21 developed
markets represented in the index, primarily using book value-to-market
capitalization ratio, and invest in approximately the top 30% by number of
stocks in each country. The managers do not attempt to add value by over- or
under-weighting particular markets or regions.+
Dimensional Fund Advisors' strategy helped the Fund produce returns superior to
those of the benchmark. Value stocks outperformed growth shares during the
12-month period, so the Fund's bias toward value stocks boosted relative
returns. The managers' emphasis on value also typically leads this Fund to hold
larger stakes in small- and mid-cap stocks than the EAFE Index. Smaller stocks
significantly out-gained larger stocks during the fiscal year, and that trend
also lifted returns against the benchmark.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The AmSouth International Equity Fund is subadvised by Dimensional Fund
Advisors, Inc. which is paid a fee for its services.
18
================================================================================
AMSOUTH INTERNATIONAL EQUITY FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth International Equity Fund (Class A Shares)*
8/18/1997 9452
9773
'97 9168
10493
10474
8449
'98 10037
10028
10654
11147
'99 12724
12389
12197
11279
'00 11262
9843
9813
8156
'01 8523
8752
8484
6767
'02 7249
6693
8242
9324
'03 11067
11788
11938
11848
'04 13927
13927
13684
7/31/2005 14270
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ----------------------------------------------------------------
Class A Shares* 8/15/97 17.56% 2.60% 4.57%
- ----------------------------------------------------------------
Class B Shares** 2/2/99(1) 18.52% 2.73% 2.04%
- ----------------------------------------------------------------
Class I Shares 12/14/98(1) 24.63% 3.99% 5.46%
- ----------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 8/15/97
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth International Equity Fund is measured against the
Morgan Stanley Capital International, Europe, Australasia and Far East (MSCI
EAFE(R)) Index, a widely-recognized unmanaged index of foreign securities
representing major non-U.S. stock markets. The Index is not available for
investment and does not reflect fees, brokerage commissions or other expenses of
investing. During the period shown, the Advisor waived and/or reimbursed fees
for various expenses. Had these waivers and/or reimbursements not been in
effect, performance quoted would have been lower.
The quoted returns reflect the performance from 8/15/97 to 12/13/98 of the DG
International Equity Fund and from 12/14/98 to 3/12/00 of the ISG International
Equity Fund, which were open-end investment companies that were the predecessor
funds to the AmSouth International Equity Fund. The predecessor funds were
managed using substantially the same investment objective, policies and
methodology as the Fund.
(1) Performance for the Class B and Class I Shares, which were first offered on
2/2/99 and 12/14/98, respectively, are based on the historical performance
of the Class A Shares, including the performance of the predecessor funds,
(without sales charge) prior to that date. The historical performance for
the Class B Shares has been restated to reflect the Class B 12b-1 fees and
the contingent deferred sales charge.
19
================================================================================
AMSOUTH BALANCED FUND
================================================================================
PORTFOLIO MANAGERS
Brian B. Sullivan, CFA
Director, Value Equity Strategies
John P. Boston, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Investment Management, Inc.
Brian B. Sullivan, CFA, has been the portfolio manager for the Value Fund since
June 2004. Mr. Sullivan has more than 18 years of investment management
experience and holds an MBA in finance and a bachelor's degree in economics.
John Boston also manages the AmSouth Limited Term Bond Fund, the AmSouth Bond
Fund and co-manages the AmSouth Government Income Fund. He has 14 years of
experience as a fixed income manager. He holds a bachelor's degree in finance
and political science and is a Chartered Financial Analyst.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
"The AmSouth Balanced Fund is a diversified fund that offers investors a simple
and easy way to balance their investments between stocks and bonds. Within the
equity component, our diversified equity strategy invests in a broad array of
high quality stocks to provide long term growth. The fixed income component
contains a mix of investment grade bonds to generate income. We assess market
opportunities between the two asset classes and allocate assets in the Fund to
potentially achieve high risk-adjusted returns."
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 10.33% (Class A Shares at NAV). The
Fund's benchmarks, the S&P 500 Stock Index and the Lehman Brothers
Government/Credit Bond Index, returned 14.04% and 4.94%, respectively.
The Fund held an average of approximately 60% of its assets in stocks, with
roughly 40% of its assets in bonds. Stocks significantly outperformed bonds
during the period, so the Fund's emphasis on stocks helped boost returns.
Q. What factors affected the Fund's performance?
A. The broad stock market generated healthy gains for the fiscal year, helping
the Balanced Fund's equity allocation post strong returns. Meanwhile, the bond
market saw a flattening yield curve: Yields on long-term bonds declined
modestly, causing their prices to rise, while yields on short-term bonds
increased and depressed prices on those securities. This Fund's fixed-income
allocation invests primarily in intermediate-term bonds, so the flattening of
the yield curve did not have a large impact on the Fund's absolute returns.
The Fund held approximately 60% of its assets in equities throughout the period.
That position was significantly overweight compared to the Fund's neutral 50%
allocation. Stocks significantly outperformed bonds, so the relatively large
stock position lifted returns against a hypothetical benchmark comprised of
equal weightings in the S&P 500 and the Lehman Government/Credit Bond Index.
Selection among individual stocks also helped the Fund outperform its neutral
benchmark. That positive selection effect was most notable in the health care
sector: The health care stocks held by the Fund gained a weighted average of
26.46%, while the health care stocks in the S&P 500 gained a weighted average of
11.29%. Stock selection among consumer discretionary, financial services and
industrials stocks also boosted relative gains. Meanwhile, stock selection in
the energy, telecommunications services and basic materials sectors weighed on
relative returns.
The Fund's fixed-income allocation held an overweight stake in corporate bonds
throughout the period. Corporate issues outperformed government bonds, so the
relatively large corporate position lifted returns against the fixed-income
benchmark. The Fund's emphasis on very high-quality debt dragged on relative
returns, however, because lower-quality bonds outperformed for the period as a
whole.
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
20
================================================================================
AMSOUTH BALANCED FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Balanced Fund (Class A Shares)*
7/31/1995 9452
9660
'95 10028
10326
10517
10605
'96 11002
11189
12220
13131
'97 13295
14334
14423
13922
'98 15040
14953
15777
14949
'99 15240
15429
15120
16052
'00 16792
16805
17398
16901
'01 17565
17619
16729
15595
'02 16361
15898
17586
17668
'03 18928
19483
19268
19299
'04 20367
20062
20418
7/31/2005 20943
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- -----------------------------------------------------------
Class A Shares* 12/19/91 4.30% 5.20% 7.67%
- -----------------------------------------------------------
Class B Shares** 9/2/97(1) 4.40% 5.29% 7.42%
- -----------------------------------------------------------
Class I Shares 9/2/97(1) 10.40% 6.58% 8.44%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmarks.
The performance of the AmSouth Balanced Fund is measured against the S&P 500
Stock Index and the Lehman Government/Credit Bond Index. The S&P 500 Index is a
widely recognized unmanaged index of 500 common stocks. The Lehman
Government/Credit Bond Index is an unmanaged index representative of U.S.
government, U.S. Treasury and agency securities, and corporate bonds. Neither
Index is available for investment and the performance of each index does not
reflect fees, brokerage commissions or other expenses of investing. During the
period shown, the Advisor waived and/or reimbursed fees for various expenses.
Had these waivers and/or reimbursements not been in effect, performance quoted
would have been lower.
(1) Performance for the Class B and Class I Shares, which were first offered on
9/2/97, are based on the historical performance of the Class A Shares
(without sales charge) prior to that date. The historical performance for
the Class B Shares has been restated to reflect the Class B 12b-1 fees and
the contingent deferred sales charge.
21
================================================================================
AMSOUTH STRATEGIC PORTFOLIOS
================================================================================
Aggressive Growth
Growth
Growth and Income
Moderate Growth and Income
The AmSouth Strategic Portfolios are managed by a team of AmSouth investment
managers, including both equity and fixed income specialists. The team has more
than 40 years of combined investment management experience.
INVESTMENT CONCERNS
The Funds invest in underlying funds, so the investment performance is directly
related to the performance of those underlying funds. Before investing in the
Fund, investors should assess the risks associated with and types of investments
made by each of the underlying funds in which the Funds invests.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
The Portfolios seek to provide investors with the potential to achieve a variety
of long- and short-term goals, commensurate with investors' specific time
horizons and tolerance for risk. Each of the four Strategic Portfolios invests
in a combination of underlying mutual funds from the AmSouth fund family. Based
on each Portfolio's asset-allocation target, the managers periodically rebalance
stock, bond and moneymarket holdings--based on analysis of economic and market
trends.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Funds perform during the period?
A. During the 12-month period between August 1, 2004 and July 31, 2005, the
Funds' total returns, benchmark returns and other comparative returns were as
follows:
AmSouth Aggressive Growth Portfolio
(Class A Shares at NAV): 16.32%
S&P 500 Stock Index: 14.04%
Lipper Multi-Cap Core Funds Average(1): 16.39%
AmSouth Growth Portfolio
(Class A Shares at NAV): 12.90%
S&P 500 Stock Index: 14.04%
Lipper Multi-Cap Growth Funds Average(1): 19.14%
AmSouth Growth and Income Portfolio
(Class A Shares at NAV): 10.77%
S&P 500 Stock Index: 14.04%
Merrill Lynch Government/Corporate Master Index: 4.99%
Lipper Large-Cap Value Funds Average(1): 14.87%
AmSouth Moderate Growth and Income Portfolio
(Class A Shares at NAV): 9.51%
S&P 500 Stock Index: 14.04%
Merrill Lynch Government/Corporate Master Index: 4.99%
Lipper Flexible Portfolio Funds Average(1): 12.69%
Q. What factors affected the Portfolios' performance?
A. Stocks posted strong returns during the 12-month period, due to two powerful
rallies: one during the fourth quarter of 2004, and the other during late spring
and early summer of 2005. Meanwhile, bonds generated tepid returns. The
Portfolios with the largest equity allocations therefore outperformed the more
conservative Portfolios.
Each of the Portfolios held its maximum exposure to stock funds throughout the
period, and that emphasis on equities helped the Strategic Portfolios outperform
their composite benchmarks. The Aggressive Growth Portfolio held an equity
allocation of 99%, significantly higher than its neutral position of 85%
equities. The Growth (75%), Growth & Income (60%) and Moderate Growth & Income
(50%) Portfolios each held stock-fund allocations 10 percentage points higher
than their neutral allocations.+
The Portfolios' relative gains also benefited from the diversification of their
equity fund holdings, which included funds that invest in small- and
medium-sized stocks as well as international shares. Small and mid caps
significantly outperformed large-cap shares during the 12-month period, while
foreign stocks generally outperformed the domestic market.+
Fixed-income allocations dragged slightly on the relative performance of the
Growth, Growth & Income and Moderate Growth & Income Portfolios. Bonds produced
sluggish performance during the 12 months through July, 2005, and the bond funds
in which the Portfolios invested modestly lagged their benchmarks.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
(1) See Glossary of Terms for additional information.
22
================================================================================
AMSOUTH AGGRESSIVE GROWTH PORTFOLIO
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Aggressive Growth Portfolio (Class A Shares)*
1/13/1999 9452
9395
9773
9528
'99 11051
11389
11235
11443
'00 11217
10238
10842
9333
'01 10156
10410
8987
7264
'02 7889
7565
8745
9092
'03 10122
10364
10445
10190
'04 11249
11083
11164
7/31/2005 11651
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 1/13/99 9.96% -0.09% 2.36%
- ---------------------------------------------------------------
Class B Shares** 1/27/99 10.53% -0.03% 2.43%
- ---------------------------------------------------------------
Class I Shares 1/28/99 16.33% 1.10% 3.22%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 1/13/99
to 7/31/05 in the Class A Shares class versus a similar investment in the Fund's
benchmark.
The Portfolio's performance is compared to the S&P 500 Stock Index, a widely
recognized unmanaged index of 500 common stocks. The Index is not available for
investment and does not reflect fees, brokerage commissions or other expenses of
investing. During the period shown, the Advisor waived and/or reimbursed fees
for various expenses. Had these waivers and/or reimbursements not been in
effect, performance quoted would have been lower.
The quoted returns reflect the performance from 1/13/99 to 3/12/00 of the ISG
Aggressive Growth Portfolio, which was an open-end investment company and the
predecessor fund to the AmSouth Aggressive Growth Portfolio. The predecessor
fund was managed using substantially the same investment objectives, policies
and methodologies as the Fund.
23
================================================================================
AMSOUTH GROWTH PORTFOLIO
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Growth Portfolio (Class A Shares)*
2/11/1999 9448
9239
9605
9355
'99 10284
10495
10375
10542
'00 10345
9724
10076
9164
'01 9748
9906
9027
7878
'02 8420
8197
9150
9425
'03 10256
10483
10500
10353
'04 11171
11034
11159
7/31/2005 11509
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 2/11/99 6.72% 1.21% 2.20%
- ---------------------------------------------------------------
Class B Shares** 2/15/99 7.15% 1.22% 2.52%
- ---------------------------------------------------------------
Class I Shares 2/1/99 13.00% 2.39% 3.09%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 2/11/99
to 7/31/05 in the Class A Shares class versus a similar investment in the Fund's
benchmark.
The Portfolio's performance is compared to the S&P 500 Stock Index, a widely
recognized unmanaged index of 500 common stocks. The Index is not available for
investment and does not reflect fees, brokerage commissions or other expenses of
investing. During the period shown, the Advisor waived and/or reimbursed fees
for various expenses. Had these waivers and/or reimbursements not been in
effect, performance quoted would have been lower.
The quoted returns reflect the performance from 2/11/99 to 3/12/00 of the ISG
Growth Portfolio, which was an open-end investment company and the predecessor
fund to the AmSouth Growth Portfolio. The predecessor fund was managed using
substantially the same investment objectives, policies and methodologies as the
Fund.
24
================================================================================
AMSOUTH GROWTH AND INCOME PORTFOLIO
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Growth and Income Portfolio (Class A Shares)*
3/8/1999 9448
9392
9508
9304
'99 9940
10109
10212
10343
'00 10359
9980
10260
9655
'01 10122
10261
9607
8759
'02 9258
9085
9950
10171
'03 10866
11094
11058
10973
'04 11670
11535
11690
7/31/2005 11968
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 3/8/99 4.70% 2.28% 2.85%
- ---------------------------------------------------------------
Class B Shares** 1/27/99 4.92% 2.35% 3.18%
- ---------------------------------------------------------------
Class I Shares 2/8/99 10.77% 3.51% 4.25%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compares hypothetical $10,000 investment from 3/8/99
to 7/31/05 in the Class A Shares versus a similar investment in the Fund's
benchmarks.
The Portfolio's performance is compared to the S&P 500 Stock Index and the
Merrill Lynch Government/Corporate Master Index. The S&P 500 Stock Index, a
widely recognized unmanaged index of 500 common stocks. The Merrill Lynch
Government/Corporate Master Index is an unmanaged broad-based index
representative of the total return of government and corporate bonds. Neither
Index is available for investment and the performance of each index does not
reflect fees, brokerage commissions or other expenses of investing. During the
period shown, the Advisor waived and/or reimbursed fees for various expenses.
Had these waivers and/or reimbursements not been in effect, performance quoted
would have been lower.
The quoted returns reflect the performance from 1/27/99 to 3/12/00 of the ISG
Growth & Income Portfolio, which was an open-end investment company and the
predecessor fund to the AmSouth Growth and Income Portfolio. The predecessor
fund was managed using substantially the same investment objectives, policies
and methodologies as the Fund.
25
================================================================================
AMSOUTH MODERATE GROWTH AND INCOME PORTFOLIO
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Moderate Growth and Income Portfolio (Class A Shares)*
2/9/1999 9454
9513
9525
9399
'99 9772
9932
10031
10235
'00 10343
10145
10420
10039
'01 10471
10585
9987
9308
'02 9820
9683
10452
10632
'03 11207
11413
11340
11322
'04 11931
11799
11980
7/31/2005 12200
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 Since
July 31, 2005 Date Year Year Inception
- ---------------------------------------------------------------
Class A Shares* 2/9/99 3.51% 2.86% 3.12%
- ---------------------------------------------------------------
Class B Shares** 1/28/99 3.74% 2.92% 3.05%
- ---------------------------------------------------------------
Class I Shares 2/10/99 9.49% 4.09% 4.12%
- ---------------------------------------------------------------
================================================================================
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 2/9/99
to 7/31/05 in the Class A Shares versus a similar investment in the Fund's
benchmarks.
The Portfolio's performance is compared to the S&P 500 Stock Index and the
Merrill Lynch Government/Corporate Master Index. The S&P 500 Stock Index, a
widely recognized unmanaged index of 500 common stocks. The Merrill Lynch
Government/Corporate Master Index is an unmanaged broad-based index
representative of the total return of government and corporate bonds. Neither
Index is available for investment and the performance of each Index does not
reflect fees, brokerage commissions or other expenses of investing. During the
period shown, the Advisor waived and/or reimbursed fees for various expenses.
Had these waivers and/or reimbursements not been in effect, performance quoted
would have been lower.
The quoted returns reflect the performance from 1/28/99 to 3/12/00 of the ISG
Moderate Growth & Income Portfolio, which was an open-end investment company and
the predecessor fund to the AmSouth Moderate Growth and Income Portfolio. The
predecessor fund was managed using substantially the same investment objectives,
policies and methodologies as the Fund.
26
(This Page Intentionally Left Blank)
27
================================================================================
AMSOUTH GOVERNMENT INCOME FUND
================================================================================
PORTFOLIO MANAGERS
John P. Boston, CFA
Senior Vice President
Michael T. Lytle, CFA
Investment Officer
AmSouth Bank
AmSouth Asset Management, Inc.
John Boston also manages the AmSouth Limited Term Bond Fund, the AmSouth Bond
Fund and co-manages the AmSouth Balanced Fund. He has 14 years of experience as
a fixed income manager. He holds a bachelor's degree in finance and political
science and is a Chartered Financial Analyst.
Michael Lytle is a fixed income portfolio manager for AmSouth Asset Management,
Inc., specializing in taxable fixed income securities. He joined AmSouth's asset
management group in 1999 and was named co-manager of the AmSouth Government
Income Fund in 2004. Mr. Lytle earned his bachelor's degree from Berry College
and is a Chartered Financial Analyst. He currently serves as membership chairman
of the Alabama Society of Financial Analysts.
INVESTMENT CONCERNS
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the Fund's shares.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higherquality bonds generally offer less risk than longer-term bonds and a lower
rate of return.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' PERSPECTIVE
"The AmSouth Government Income Fund is more suitable for investors who seek
income but also demand the safety of U.S. government securities. Although we
attempt to consistently generate a high level of income, investors should be
aware that yields and principal values vary and that the Fund is not guaranteed
by the U.S. government."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 2.70% (Class A Shares at NAV). That
compared to a 4.67% total return for the Fund's benchmark, the Lehman Brothers
Mortgage Index.
Q. What factors affected the Fund's performance during the period?
A. Yields on short- and intermediate-term bonds rose gradually throughout the
period, while long-term bond yields declined slightly. This Fund invests
primarily in intermediate-term bonds, so did not benefit from the decline in
long-term bond yields. Mortgage-backed securities, which comprise the bulk of
this Fund's holdings, outperformed other government bonds in that environment.
The Fund during the first five months of the period held half of its assets in
mortgage-backed securities, with 40% in government agency issues and the
remaining 10% in Treasuries. Mortgage-backed securities outperformed other
government bond sectors, so the Fund's positioning dragged on returns against
the all-mortgage benchmark. We increased the Fund's mortgage position early in
2005, to nearly 100% of assets. That shift benefited the Fund's relative returns
during the second half of the period, as mortgage-backed securities continued
their superior performance.+
The Fund held an average duration slightly shorter than that of the benchmark
throughout the period, in anticipation of rising interest rates. That strategy
had no significant effect on relative performance.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
28
================================================================================
AMSOUTH GOVERNMENT INCOME FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Government Income Fund (Class A Shares)*
7/31/1995 9598
9764
'95 10113
10006
10031
10238
'96 10524
10486
10854
11192
'97 11508
11691
11893
12274
'98 12330
12339
12291
12374
'99 12408
12683
12832
13170
'00 13732
14067
14110
14739
'01 14695
14666
15156
15833
'02 15974
16087
16261
16217
'03 16208
16486
16195
16522
'04 16595
16489
16805
7/31/2005 16735
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- -----------------------------------------------------------
Class A Shares* 10/1/93 -1.40% 4.44% 5.28%
- -----------------------------------------------------------
Class B Shares** 3/13/00(1) -2.84% 4.72% 4.82%
- -----------------------------------------------------------
Class I Shares 9/2/97(1) 2.93% 5.45% 5.84%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Government Income Fund is measured against the
Lehman Brothers Mortgage Index, an unmanaged index generally representative of
the mortgage bond market as a whole. The Index is not available for investment
and does not reflect fees, brokerage commissions or other expenses of investing.
During the period shown, the Advisor waived and/or reimbursed fees for various
expenses. Had these waivers and/or reimbursements not been in effect,
performance quoted would have been lower.
(1) Performance for the Class B and Class I Shares, were first offered on
3/13/00 and 9/2/97, respectively, are based on the historical performance
of the Class A Shares (without sales charge) prior to that date. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
29
================================================================================
AMSOUTH LIMITED TERM BOND FUND
================================================================================
PORTFOLIO MANAGER
John P. Boston, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
John Boston also manages the AmSouth Bond Fund and co-manages both the AmSouth
Government Income Fund and the AmSouth Balanced Fund. He has 14 years of
experience as a fixed income manager. He holds a bachelor's degree in finance
and political science and is a Chartered Financial Analyst.
INVESTMENT CONCERNS
Short- or intermediate-term investment grade bonds offer less risk and generally
a lower rate of return than longer-term higher yielding bonds.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higherquality bonds generally offer less risk than longer-term bonds and a lower
rate of return.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Limited Term Bond Fund was designed to fill the gap between money
market funds and long-term bond funds. For investors looking for a diversified
bond fund, this Fund represents the first step out on the `risk/return' spectrum
from the money market arena."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 0.93% (Class A Shares at NAV). That
compared to a 1.76% total return for the Fund's benchmark, the Merrill Lynch
1-5-Year Government/Corporate Bond Index.
Q. What factors affected the Fund's performance?
A. Yields on short-term bonds rose substantially, in response to the Federal
Reserve's policy of boosting short-term interest rates. Yields increased most on
the shortest securities: Yields on threemonth Treasury notes rose two percentage
points, while yields on three-year notes rose 1.06 percentage points and yields
on five-year notes rose 0.43 percentage points. Prices move inversely to yields,
so higher yields led to lower prices on the short-term bonds in which this Fund
invests.
The Fund's returns relative to its benchmark benefited from an overweight stake
in corporate bonds, which significantly outperformed government issues. The Fund
held between 50% and 60% of assets in corporate bonds during the fiscal year,
compared to a roughly 25% stake in the benchmark. That said, the Fund's emphasis
on very high quality corporate bonds weighed on relative performance, because
low-quality bonds produced superior returns for the 12-month period.+
We held the Fund's average duration shorter than that of the benchmark
throughout the period, at approximately two years versus roughly 2.4 years for
the index. We established that short duration to protect shareholders' capital
against rising interest rates. Yields rose most on the short end of the yield
curve, however, so the Fund's short average duration dragged on relative
performance.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
30
================================================================================
AMSOUTH LIMITED TERM BOND FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Limited Term Bond Fund (Class A Shares)*
7/31/1995 9802
9924
'95 10189
10159
10225
10372
'96 10565
10561
10818
11082
'97 11284
11436
11628
12057
'98 12089
12123
12113
12234
'99 12253
12419
12615
12895
'00 13261
13649
13767
14263
'01 14312
14314
14707
15126
'02 15241
15402
15539
15570
'03 15575
15727
15514
15679
'04 15668
15610
15762
7/31/2005 15704
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Since 1 5 10
July 31, 2005 Inception Year Year Year
- -----------------------------------------------------------
Class A Shares* 2/1/89 -1.15% 3.93% 4.62%
- -----------------------------------------------------------
Class B Shares** 1/21/99(1) -4.79% 3.23% 3.95%
- -----------------------------------------------------------
Class I Shares 9/2/97(1) 0.98% 4.52% 4.94%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Limited Term Bond Fund is measured against the
Merrill Lynch 1-5-Year Government/Corporate Bond Index, a widely recognized
unmanaged index generally representative of the total return of short-term
government and corporate bonds. The Index is not available for investment and
does not reflect fees, brokerage commissions or other expenses of investing.
During the period shown, the Advisor waived and/or reimbursed fees for various
expenses. Had these waivers and/or reimbursements not been in effect,
performance quoted would have been lower.
(1) Performance for the Class B and Class I Shares, were first offered on
1/21/99 and 9/2/97, respectively, are based on the historical performance
of the Class A Shares (without sales charge) prior to that date. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
31
================================================================================
AMSOUTH HIGH QUALITY BOND FUND
================================================================================
PORTFOLIO MANAGER
John P. Boston, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
John Boston also manages the AmSouth Limited Term Bond Fund and co-manages both
the AmSouth Government Income Fund and the AmSouth Balanced Fund. He has 14
years of investment experience as a fixed income manager. He holds a bachelor's
degree in finance and political science and is a Chartered Financial Analyst.
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,
higherquality bonds generally offer less risk than longer-term bonds and a lower
rate of return.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth High Quality Bond Fund seeks to take advantage of changes in
interest rates to pursue strong returns. We buy longer bonds when interest rates
are high and expected to fall, and shorter bonds when interest rates are low and
expected to rise. The change in the average maturity or duration is one of the
most powerful determinants of return. Through the active use of high-quality
investments, we strive to obtain excellent returns."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 3.82% (Class A Shares at NAV). That
compared to a 4.94% total return for the Fund's benchmark, the Lehman Brothers
Government/Credit Bond Index.
Q. What factors affected the Fund's performance?
A. The period was characterized by a flattening yield curve: Yields on
short-term bonds rose significantly in response to interest-rate increases by
the Federal Reserve, while yields on long-term bonds declined slightly. This
Fund invests primarily in intermediate-term bonds, so the flattening yield curve
did not have a large effect on returns. The Fund maintained an emphasis on very
high quality securities throughout the period, in keeping with its mandate. That
focus dampened performance against the benchmark during the first six months of
the fiscal year, as lower-quality bonds led the market. The trend reversed
during the second half of the period: High-quality bonds assumed market
leadership, and the Fund's emphasis on quality helped it outperform the index.
For the period as a whole, however, the portfolio's high quality dragged on
relative returns.
The Fund held an overweight position in corporate securities throughout the
period, with 52% of assets in corporate bonds as of August 1, 2004 and 45% in
corporate bonds as of July 31, 2005. That relatively large position boosted
gains against the benchmark, as corporate bonds outperformed government issues.+
We lengthened the portfolio's average duration early in the period, in order to
seize higher yields for shareholders. Yields on those longer-term bonds
subsequently declined, boosting their prices and benefiting the Fund relative to
the benchmark. We shortened the Fund's duration later in the period to a
position slightly shorter than that of the index, reflecting our expectation for
upward pressure on yields going forward.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
32
================================================================================
AMSOUTH HIGH QUALITY BOND FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth High Quality Bond Fund (Class A Shares)*
7/31/1995 9601
9796
'95 10219
9992
9999
10154
'96 10480
10325
10713
11107
'97 11441
11613
11880
12530
'98 12504
12356
12216
12273
'99 12184
12564
12725
13071
'00 13653
14025
14001
14705
'01 14664
14585
15212
16089
'02 16227
16415
16767
16692
'03 16655
17044
16600
17062
'04 17096
17003
17577
7/31/2005 17354
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Since 1 5 10
July 31, 2005 Inception Year Year Year
- -----------------------------------------------------------
Class A Shares* 12/1/88 -0.40% 5.37% 5.67%
- -----------------------------------------------------------
Class B Shares** 9/16/97(1) -1.99% 5.13% 5.28%
- -----------------------------------------------------------
Class I Shares 9/2/97(1) 3.97% 6.41% 6.22%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth High Quality Bond Fund is measured against the
Lehman Government/Credit Bond Index, a widely recognized unmanaged broad-based
index representative of the total return of long-term government and corporate
bonds. The Index is not available for investment and does not reflect fees,
brokerage commissions or other expenses of investing. During the period shown,
the Advisor waived and/or reimbursed fees for various expenses. Had these
waivers and/or reimbursements not been in effect, performance quoted would have
been lower.
(1) Performance for the Class B and Class I Shares, were first offered on
9/16/97 and 9/2/97, respectively, are based on the historical performance of the
Class A Shares (without sales charge) prior to that date. The historical
performance for the Class B Shares has been restated to reflect the Class B
12b-1 fees and the contingent deferred sales charge.
33
================================================================================
AMSOUTH HIGH QUALITY MUNICIPAL BOND FUND
================================================================================
PORTFOLIO MANAGER
Dorothy E. Thomas, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
Dorothy Thomas has more than 20 years of experience as an investment portfolio
manager. She holds an MBA and a BA in economics and serves as manager of
tax-exempt fixed income investments for AmSouth. She is also the portfolio
manager for the AmSouth Florida Tax-Exempt Fund and the AmSouth Tennessee
Tax-Exempt Fund.
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.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"With the AmSouth High Quality Municipal Bond Fund, we concentrate on
high-quality municipal bonds--those in the top three rating classes, or of
comparable quality. As with other AmSouth bond funds, we strive to achieve
strong returns by taking advantage of anticipated changes in interest rates."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 1.90% (Class A Shares at NAV) during the
period. In comparison, the Fund's benchmark the Merrill Lynch 1-12-Year
Municipal Bond Index returned 4.16%.
Q. What factors affected the Fund during the period?
A. Yields on short- and intermediate-term municipal bonds rose substantially
during the 12-month period, with the largest increases on the shortest-term
bonds. Bond yields and prices move in opposite directions, so higher yields led
to lower prices. Meanwhile, long-term municipal bond yields declined. This Fund
invests primarily in intermediate-term municipal bonds, so their rising yields
hurt the Fund's performance.+
This Fund was underexposed to longer-term securities relative to its benchmark.
Long-term issues provided the municipal bond market's best returns, so the
Fund's relatively small position in that portion of the yield curve weighed on
returns against the index. This Fund's focus on high-quality municipal
securities also hurt relative performance, as lower-quality bonds generally
posted solid gains.
We maintained a short average duration early in the 12-month period, in order to
protect against rising interest rates. That positioning dragged on relative
returns, however, as yields rose most on the shortest-term securities. We began
to lengthen the Fund's duration in November, in order to seize additional yield,
and continued lengthening through the first calendar quarter of 2005. That
strategy helped returns somewhat, but the Fund remained underexposed to the
long-term securities that generated the municipal bond market's strongest
returns.
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
34
================================================================================
AMSOUTH HIGH QUALITY MUNICIPAL BOND FUND
================================================================================
[THIS FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth High Quality Municipal Bond Fund (Class A Shares)*
7/31/1995 9604
9677
'95 9875
9844
9875
10031
'96 10219
10156
10417
10643
'97 10850
10918
11050
11381
'98 11438
11482
11228
11298
'99 11247
11436
11574
11820
'00 12239
12528
12585
12895
'01 12790
12850
13323
13828
'02 13893
14001
14258
14296
'03 14326
14451
14175
14492
'04 14547
14342
14695
7/31/2005 14559
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Since 1 5 10
July 31, 2005 Inception Year Year Year
- -----------------------------------------------------------
Class A Shares* 7/1/97(1) -2.20% 3.56% 3.83%
- -----------------------------------------------------------
Class B Shares** 2/3/99(2) -3.75% 3.29% 3.38%
- -----------------------------------------------------------
Class I Shares 9/2/97(2) 2.05% 4.56% 4.37%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above represents a comparison of a hypothetical $10,000
investment from 7/31/95 to 7/31/05 in the indicated share class versus a similar
investment in the Fund's benchmark.
The performance of the AmSouth High Quality Municipal Bond Fund is measured
against the Merrill Lynch 1-12-Year Municipal Bond Index, a widely recognized
unmanaged index generally representative of municipal bonds with intermediate
maturities of no less than one year and no more than twelve years. The Index is
not available for investment and does not reflect fees, brokerage commissions or
other expenses of investing. During the period shown, the Advisor waived and/or
reimbursed fees for various expenses. Had these waivers and/or reimbursements
not been in effect, performance quoted would have been lower.
(1) The Fund commenced operations on 7/1/97, through a transfer of assets from
certain collective trust fund ("commingled") accounts advised by AmSouth
Bank using substantially the same investment objective, policies and
methodologies as the Fund. The quoted performance of the Fund includes
performance of the predecessor fund and the commingled accounts for periods
dating back to 7/31/95 and prior to the Fund's commencement of operations,
restated to reflect the expenses associated with the Fund. The commingled
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 commingled accounts had been
registered, their performance may have been adversely affected.
(2) Performance for the Class B and Class I Shares, which were first offered on
2/3/99 and 9/2/97, respectively, are based on the historical performance of
the Class A Shares, including the performance of the commingled accounts,
(without sales charge) prior to that date. The commingled accounts were
managed using substantially the same investment objective, policies and
methodologies as the Fund. The historical performance for the Class B
Shares has been restated to reflect the Class B 12b-1 fees and the
contingent deferred sales charge.
35
================================================================================
AMSOUTH FLORIDA TAX-EXEMPT FUND
================================================================================
PORTFOLIO MANAGER
Dorothy E. Thomas, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
Dorothy Thomas has more than 20 years of experience as an investment portfolio
manager. She holds an MBA and a BA in economics and serves as manager of
tax-exempt fixed income investments for AmSouth. She also is the portfolio
manager for the AmSouth Municipal Bond Fund and the AmSouth Tennessee Tax-
Exempt Fund.
INVESTMENT CONCERNS
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.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Florida Tax-Exempt Fund has a portfolio of highquality issues in a
fast-growing state with a strong economic base. Interest on the bonds is exempt
from both Federal income tax and the Florida intangibles tax. This portfolio is
managed to potentially benefit from anticipated interest rate moves."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 2.11% (Class A Shares at NAV). That
compared to a 4.16% return for the Fund's benchmark, the Merrill Lynch 1-12-Year
Municipal Bond Index.
Q. What factors affected the Fund's performance?
A. The municipal bond markets in Florida performed much like those of other
states during this fiscal year. Yields rose dramatically on the shortest-term
municipal bonds, while yields on intermediate-term bonds rose more modestly.
Yields move inversely from prices, so higher yields on short- and intermediate-
term bonds caused their prices to fall. Yields declined on long-term municipal
bonds, causing their prices to rise.
This Fund's emphasis on the intermediate portion of the yield curve dragged on
returns against the benchmark, because it led us to hold a relatively small
stake in the long-term municipal bonds that generated the market's strongest
returns. The Fund's focus on high-quality bonds also weighed on relative
returns, as bonds with lower credit ratings generally outperformed bonds with
higher ratings during this 12-month period.+
The Fund early in the fiscal year held a shorter average duration than that of
the benchmark. That positioning was designed to protect shareholders' capital in
the event of rising interest rates. But that strategy dragged on returns against
the index, because yields rose most on the shortest end of the yield curve. We
increased the Fund's average duration later in the period in order to capture
higher yields. We did not significantly increase the fund's stake in long-term
municipal bonds, however, and therefore did not participate in those bonds'
gains.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
36
================================================================================
AMSOUTH FLORIDA TAX-EXEMPT FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Florida Tax-Exempt Fund (Class A Shares)*
7/31/1995 9600
9677
'95 9903
9871
9911
10069
'96 10260
10245
10483
10720
'97 10931
11021
11153
11461
'98 11525
11557
11344
11370
'99 11372
11575
11714
11935
'00 12323
12570
12619
12916
'01 12873
12925
13379
13900
'02 13958
14048
14314
14342
'03 14382
14493
14186
14537
'04 14581
14384
14751
7/31/2005 14606
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Inception 1 5 10
July 31, 2005 Date Year Year Year
- -----------------------------------------------------------
Class A Shares* 9/30/94 -1.95% 3.42% 3.86%
- -----------------------------------------------------------
Class B Shares** 3/16/99(1) -3.63% 3.50% 3.40%
- -----------------------------------------------------------
Class I Shares 9/2/97(1) 2.18% 4.42% 4.40%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Florida Tax-Exempt Fund is measured against the
Merrill Lynch 1-12-Year Municipal Bond Index, a widely recognized unmanaged
index generally representative of municipal bonds with intermediate maturities
of no less than one year and no more than twelve years. The Index is not
available for investment and does not reflect fees, brokerage commissions or
other expenses of investing. During the period shown, the Advisor waived and/or
reimbursed fees for various expenses. Had these waivers and/or reimbursements
not been in effect, performance quoted would have been lower.
(1) Performance for the Class B and Class I Shares, which were first offered on
3/16/99 and 9/2/97, respectively, are based on the historical performance
of the Class A Shares (without sales charge) prior to that date. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
37
================================================================================
AMSOUTH TENNESSEE TAX-EXEMPT FUND
================================================================================
PORTFOLIO MANAGER
Dorothy E. Thomas, CFA
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
Dorothy Thomas has more than 20 years of experience as an investment portfolio
manager. She holds an MBA and a BA in economics and serves as manager of
tax-exempt fixed income investments for AmSouth. She also is the portfolio
manager for the AmSouth Municipal Bond and the AmSouth Florida Tax-Exempt Fund
INVESTMENT CONCERNS
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.
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.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Tennessee Tax-Exempt Fund generates income that is exempt from both
Federal and the state of Tennessee income tax. The Fund only invests in
securities in the top three rating classes, or of comparable quality. As with
the other AmSouth bond funds, we strive to enhance long-term performance by
capitalizing on expected changes in interest rates."
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2005?
A. The Fund delivered a total return of 1.57% (Class A Shares at NAV). The
Fund's benchmark, the Merrill Lynch 1-12-Year Municipal Bond Index, returned
4.16%.
Q. What factors affected the Fund's performance during the period?
A. Tennessee municipal bonds performed similarly to municipal bonds in other
states during this period. Yields rose on shortand intermediate-term securities,
with the largest yield increases on the shortest-term bonds. Those higher yields
caused prices on short- and intermediate-term bonds to decline. Yields fell on
long-term Tennessee municipal bonds, causing their prices to rise.
This Fund emphasizes intermediate-term municipal bonds. That approach led us to
hold an underweight stake in longterm bonds relative to the benchmark. Long-term
bonds led the municipal markets by a wide margin, so their under-representation
in this portfolio weighed on relative returns. The Fund's focus on high-quality
bonds also dragged on returns against the index, because lower-quality bonds
generally provided superior returns during this 12-month period.+
We began the period holding a shorter average duration than that of the
benchmark, in order to protect against rising interest rates. Yields rose most
on the shortest end of the yield curve, so that strategy caused the Fund's
returns to lag the index. We increased the Fund's average duration as the period
progressed, in order to seize higher yields. We did not significantly increase
the Fund's stake in long-term bonds, which tend to be more volatile than
shorter-term issues, so did not benefit from the strong performance of those
issues.+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. Total
return figures include change in share price, reinvestment of dividends and
capital gains and does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
38
================================================================================
AMSOUTH TENNESSEE TAX-EXEMPT FUND
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
AmSouth Tennessee Tax-Exempt Fund (Class A Shares)*
7/31/1995 9759
10102
'95 9900
9895
10021
10242
'96 10149
10403
10689
10972
'97 11014
11100
11426
11439
'98 11460
11188
11183
11088
'99 11273
11409
11613
12047
'00 12262
12275
12573
12457
'01 12490
12979
13484
13507
'02 13576
13821
13835
13860
'03 13970
13706
13997
14029
'04 13856
14135
14030
7/31/2005 14500
The chart reflects the performance of the Class A Shares. The performance of the
Class B Shares and the Class I Shares will be greater or less than the line
shown in the above chart based on the differences in the sales charges and the
expenses paid by Shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
================================================================================
Average Annual Total Return
================================================================================
As of Since 1 5 10
July 31, 2005 Inception Year Year Year
- -----------------------------------------------------------
Class A Shares* 3/28/94 -2.51% 3.12% 3.44%
- -----------------------------------------------------------
Class B Shares** 2/24/98(1) -3.98% 2.83% 3.07%
- -----------------------------------------------------------
Class I Shares 10/3/97(1) 1.72% 4.11% 4.00%
- -----------------------------------------------------------
================================================================================
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
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 does not reflect the deduction of taxes that a shareholder
would pay on distributions and redemptions. 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, call 1-800-451-8382.
The chart and table above compare a hypothetical $10,000 investment from 7/31/95
to 7/31/05 in the indicated share class versus a similar investment in the
Fund's benchmark.
The performance of the AmSouth Tennessee Tax-Exempt Fund is measured against the
Merrill Lynch 1-12-Year Municipal Bond Index, a widely recognized unmanaged
index generally representative of municipal bonds with intermediate maturities
of no less than one year and no more than twelve years. The Index is not
available for investment and does not reflect fees, brokerage commission or
other expenses of investing. During the period shown, the Advisor waived and/or
reimbursed fees for various expenses. Had these waivers and/or reimbursements
not been in effect, performance quoted would have been lower.
The quoted returns reflect the performance from 3/28/94 to 3/12/00 of the ISG
Tennessee Tax-Exempt Fund, an open-end investment company that was the
predecessor fund to the AmSouth Tennessee Tax-Exempt Fund.
(1) Performance for the Class B and Class I Shares, which were first offered on
2/24/98 and 10/3/97, respectively, are based on the historical performance
of the Class A Shares, including the performance of the predecessor fund
and commingled accounts, (without sales charge) prior to that date. The
predecessor fund and commingled accounts were managed using substantially
the same investment objective, policies and methodologies as the Fund. The
historical performance for the Class B Shares has been restated to reflect
the Class B 12b-1 fees and the contingent deferred sales charge.
39
================================================================================
AMSOUTH MONEY MARKET FUNDS
================================================================================
PORTFOLIO MANAGERS
Christine Taylor
Investment Officer
Kristie K. Jones
Investment Officer
AmSouth Bank
AmSouth Asset Management, Inc.
Ms. Taylor manages the AmSouth Money Market mutual funds. She joined the AmSouth
Asset Management Division in 2002 after completing AmSouth Bank's Management
Associate Program. Prior to moving to the Fixed Income team, she was a portfolio
manager with the equity team at AmSouth. She earned a B.S. in Finance from the
University of South Alabama. Christine currently holds a Series 7, 63, and 65
license and is a Level II candidate for the Chartered Financial Analyst
designation.
Mrs. Jones is a junior portfolio manager. She earned her B.S. in Finance with a
concentration in Real Estate from the University of Alabama. She holds her
Series 7 and Series 66 licenses. Mrs. Jones is currently a candidate for Level
II of the Chartered Financial Analyst exam.
INVESTMENT CONCERNS
Investments in the Prime, the Treasury Reserve, the Tax- Exempt, and the
Institutional Prime Obligations Money Market Funds are neither insured or
guaranteed by the FDIC or any other government agency. Although the Funds seek
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Funds.
The AmSouth Tax Exempt Money Market Fund's income may be subject to certain
state and local taxes and, depending on one's tax status, the federal
alternative minimum tax.
- --------------------------------------------------------------------------------
Q&A
Q. What factors affected the Funds' performance during the 12-month period ended
July 31, 2005?
o As of July 31, 2005, the Prime Obligations Fund's average maturity was 28
days, compared with 59 days on January 31, 2004 and 62 days on July 31, 2003.+
o As of July 31, 2005, the Tax-Exempt Fund's average maturity was 19 days,
compared with 35 days on January 31, 2004 and 36 days on July 31, 2003.+
o As of July 31, 2005, the Treasury Reserve Fund's average maturity was 22 days,
compared with 45 days on January 31, 2004 and 55 days on July 31, 2003.+
o As of July 31, 2005, the Institutional Prime Obligations Fund's average
maturity was 29 days, compared with 64 days on January 31, 2004 and 56 days on
July 31, 2003.+
A. The Federal Reserve Board raised its target short-term interest rate eight
times, for a total increase of two percentage points. The federal funds rate
ended this period at 3.25%. Those increases pushed up yields on short-term debt.
Rising shortterm yields allowed the Funds to capture additional income for
shareholders as the period progressed.
The Funds' investments had average maturities shorter than those of their
benchmarks throughout the period. That strategy provided the flexibility to
invest in higher-yielding securities as rates rose, while protecting
shareholders' capital. The Funds' relatively short average maturities boosted
performance against their benchmarks.+
The Prime Obligations, U.S. Treasury Reserve and Institutional Prime Obligations
Funds focus on high-quality fixed- and variable- rate securities, while the
Tax-Exempt Fund focuses on highquality variable-rate securities. The Funds found
opportunities in commercial paper, agency discount notes, overnight repurchase
agreements (which adjust their yields on a day-to-day basis and therefore
reflected changes in Federal Reserve policy), daily floating-rate securities
(which also re-set their yields on a daily basis) and weekly floating-rate
securities (which adjust their rates on a weekly basis).+
+ The Fund's portfolio is current to July 31, 2005 and subject to change.
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, call 1-800-451-8382.
40
---------------------------------------------------
VALUE FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
---------- --------
COMMON STOCKS (98.3%)
ACE Ltd. ..................................... 264,400 $ 12,217
Affiliated Computer Services, Inc.,
Class A (a) ................................ 65,000 3,248
AFLAC, Inc. .................................. 78,000 3,518
Alcoa, Inc. .................................. 333,000 9,341
American Electric Power Co., Inc. ............ 115,000 4,451
American International Group, Inc. ........... 168,000 10,114
Bank of America Corp. ........................ 280,000 12,207
BellSouth Corp. .............................. 148,000 4,085
Caremark Rx, Inc. (a) ........................ 182,000 8,114
Caterpillar, Inc. ............................ 230,000 12,400
ChevronTexaco Corp. .......................... 202,000 11,718
Chubb Corp. .................................. 56,000 4,974
CIT Group, Inc. .............................. 128,200 5,659
Citigroup, Inc. .............................. 325,000 14,137
ConocoPhillips ............................... 177,600 11,116
Constellation Energy Group ................... 59,200 3,564
Costco Wholesale Corp. ....................... 161,800 7,438
Deere & Co. .................................. 74,815 5,501
Dominion Resources, Inc. # ................... 84,000 6,204
Dow Chemical Co. ............................. 249,000 11,940
Eastman Chemical Co. ......................... 206,000 11,410
Eli Lilly & Co. .............................. 88,800 5,001
EMC Corp. (a) ................................ 334,000 4,572
Entergy Corp. ................................ 14,800 1,154
Exxon Mobil Corp. ............................ 78,900 4,635
Fifth Third Bancorp .......................... 58,000 2,500
Freddie Mac .................................. 152,000 9,619
Genuine Parts Co. ............................ 113,000 5,174
Golden West Financial Corp. .................. 80,000 5,210
Goldman Sachs Group, Inc. .................... 73,000 7,846
Halliburton Co. # ............................ 167,700 9,400
Health Management Associates, Inc.,
Class A # .................................. 394,600 9,392
Hewlett-Packard Co. .......................... 350,000 8,617
Home Depot, Inc. ............................. 191,000 8,311
Honeywell International, Inc. ................ 97,000 3,810
IBM Corp. .................................... 30,000 2,504
Ingersoll-Rand Co., Class A .................. 113,000 8,833
J.P. Morgan Chase & Co. ...................... 276,200 9,706
Johnson & Johnson ............................ 64,000 4,093
Kohl's Corp. (a) ............................. 88,400 4,981
Lincoln National Corp. ....................... 230,100 11,114
Lockheed Martin Corp. ........................ 48,000 2,995
Merrill Lynch & Co., Inc. .................... 131,000 7,700
MetLife, Inc. # .............................. 61,000 2,998
Molson Coors Brewing Co., Class B # .......... 120,000 7,524
Nokia Corp. -- ADR # ......................... 526,000 8,390
Office Depot, Inc. (a) ....................... 246,000 6,981
Pfizer, Inc. ................................. 302,000 8,003
Pier 1 Imports, Inc. ......................... 296,000 4,209
Prudential Financial, Inc. ................... 96,000 6,422
Raytheon Co. ................................. 156,000 6,135
SBC Communications, Inc. ..................... 441,900 10,804
Sprint Corp. # ............................... 99,000 2,663
St. Paul Travelers Cos., Inc. # .............. 270,000 11,885
Continued
Shares Value
---------- --------
COMMON STOCKS, continued
Staples, Inc. ................................ 230,000 $ 5,237
SunTrust Banks, Inc. ......................... 35,400 2,574
Time Warner, Inc. (a) ........................ 138,100 2,350
Tyco International, Ltd. # ................... 370,000 11,274
U.S. Bancorp ................................. 327,000 9,830
United Technologies Corp. .................... 47,000 2,383
Verizon Communications, Inc. ................. 217,000 7,428
Viacom, Inc., Class B ........................ 315,700 10,574
Wachovia Corp. ............................... 168,000 8,464
Washington Mutual, Inc. ...................... 244,000 10,365
WellPoint, Inc. (a) .......................... 59,200 4,188
Wells Fargo & Co. ............................ 103,600 6,355
XL Capital, Ltd. ............................. 179,000 12,855
--------
TOTAL COMMON STOCKS .......................... 480,414
--------
INVESTMENT COMPANIES (0.9%)
AIM Liquid Assets Money Market Fund .......... 4,466,288 4,466
--------
TOTAL INVESTMENT COMPANIES ................... 4,466
--------
AFFILIATED SECURITIES (+)
AmSouth Prime Money Market Fund .............. 15,026 15
--------
TOTAL AFFILIATED SECURITIES .................. 15
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (3.6%)
BNY Institutional Cash Reserve Fund .......... 17,348,652 17,349
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ......................... 17,349
--------
TOTAL INVESTMENTS
(Cost $415,292)^ -- 102.8% ................. 502,244
Liabilities in excess of other assets --
(2.8)% ..................................... (14,913)
--------
NET ASSETS -- 100.0% ......................... $487,331
========
See notes to schedule of portfolio investments.
41
- ---------------------------------------------------
SELECT EQUITY FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- --------
COMMON STOCKS (97.4%)
American Power Conversion Corp. .................. 238,600 $ 6,707
Automatic Data Processing, Inc. .................. 198,000 8,793
Briggs & Stratton Corp. .......................... 73,100 2,732
Gannett Co., Inc. ................................ 82,300 6,005
General Mills, Inc. .............................. 114,100 5,408
H.J. Heinz Co. ................................... 161,000 5,922
Harley-Davidson, Inc. ............................ 121,100 6,441
Home Depot, Inc. ................................. 212,100 9,227
International Flavors & Fragrances, Inc. ......... 132,800 5,036
J.M. Smucker Co. ................................. 75,178 3,576
Kimberly-Clark Corp. ............................. 89,600 5,713
McDonald's Corp. ................................. 294,100 9,167
Microsoft Corp. .................................. 218,900 5,606
Pfizer, Inc. ..................................... 103,820 2,751
Pitney Bowes, Inc. ............................... 197,800 8,818
Snap-on, Inc. .................................... 62,900 2,307
SYSCO Corp. ...................................... 169,600 6,116
Tribune Co. ...................................... 120,100 4,384
Wal-Mart Stores, Inc. ............................ 67,500 3,331
Walt Disney Co. .................................. 216,600 5,554
Waste Management, Inc. ........................... 267,460 7,521
--------
TOTAL COMMON STOCKS .............................. 121,115
--------
AFFILIATED SECURITIES (2.1%)
AmSouth Prime Money Market Fund .................. 2,548,669 2,549
AmSouth Treasury Reserve Money
Market Fund .................................... 1,808 2
--------
TOTAL AFFILIATED SECURITIES ...................... 2,551
--------
TOTAL INVESTMENTS
(Cost $110,940)^ -- 99.5% ...................... 123,666
Other assets in excess of liabilities --
0.5% ........................................... 637
--------
NET ASSETS -- 100.0% ............................. $124,303
========
(Amounts in thousands, except number of contracts)
- -------------------------------------------------------------------------------------
Notional Unrealized
Number Value at Appreciation
of Expiration 7/31/05 (Depreciation)
Contracts Description Date (USD) (USD)
- ----------- ------------------------- ------------ ---------- ---------------
Long Futures Outstanding
-------------------------
September,
9 S&P 500 Future .......... 2005 $2,474 $58
See notes to schedule of portfolio investments.
---------------------------------------------------
ENHANCED MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------ --------
COMMON STOCKS (99.2%)
3M Co. ............................................ 17,000 $ 1,275
Abbott Laboratories ............................... 13,300 620
ACE Ltd. .......................................... 7,500 347
ADC Telecommunications, Inc. (a) .................. 4,028 105
Adobe Systems, Inc. ............................... 8,400 249
Advanced Micro Devices, Inc. (a) .................. 13,600 273
AES Corp. (a) ..................................... 11,300 181
Aetna, Inc. ....................................... 10,000 774
Affiliated Computer Services, Inc.,
Class A (a) ..................................... 2,200 110
AFLAC, Inc. ....................................... 17,400 785
Agilent Technologies, Inc. (a) .................... 15,000 394
Air Products & Chemicals, Inc. .................... 7,900 472
Alberto-Culver Co. ................................ 2,650 120
Alcoa, Inc. ....................................... 15,100 424
Allegheny Energy, Inc. (a) # ...................... 2,800 80
Allegheny Technologies, Inc. ...................... 3,100 90
Allergan, Inc. .................................... 2,300 206
Allstate Corp.(The) ............................... 400 25
ALLTEL Corp. ...................................... 5,700 379
Altria Group, Inc. ................................ 35,500 2,377
Ambac Financial Group, Inc. ....................... 200 14
Amerada Hess Corp. ................................ 2,400 283
Ameren Corp. ...................................... 3,300 184
American Electric Power Co., Inc. ................. 6,620 256
American Express Co. .............................. 22,200 1,221
American International Group, Inc. ................ 55,816 3,360
American Standard Cos., Inc. ...................... 3,200 142
AmerisourceBergen Corp. ........................... 1,800 129
Amgen, Inc. (a) ................................... 10,548 841
Anadarko Petroleum Corp. .......................... 8,200 724
Analog Devices, Inc. .............................. 9,300 365
Anheuser-Busch Cos., Inc. ......................... 13,500 599
Aon Corp. ......................................... 700 18
Apache Corp. ...................................... 11,302 773
Apartment Investment & Management Co.,
Class A ......................................... 1,500 66
Apple Computer, Inc. (a) .......................... 24,100 1,028
Applera Corp. -- Applied Biosystems Group ......... 6,800 142
Applied Materials, Inc. ........................... 28,200 521
Applied Micro Circuits Corp. (a) .................. 5,400 16
Archer-Daniels-Midland Co. ........................ 21,611 496
Archstone-Smith Trust ............................. 3,300 140
Ashland, Inc. ..................................... 2,300 141
AT&T Corp. ........................................ 13,800 273
Autodesk, Inc. .................................... 6,700 229
Avaya, Inc. (a) # ................................. 16,379 169
Avery Dennison Corp. .............................. 1,800 102
Avon Products, Inc. ............................... 8,200 268
Ball Corp. ........................................ 3,900 148
Bank of America Corp. ............................. 54,976 2,397
Bank of New York Co., Inc. (The) .................. 27,000 831
Bausch & Lomb, Inc. ............................... 1,800 152
Baxter International, Inc. ........................ 20,800 817
Bear Stearns Cos., Inc. (The) ..................... 2,000 204
Becton, Dickinson & Co. ........................... 8,800 487
Continued
42
---------------------------------------------------
ENHANCED MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Bed Bath & Beyond, Inc. (a) ........................ 5,200 $ 239
BellSouth Corp. .................................... 31,400 867
Bemis Co., Inc. .................................... 1,900 51
Big Lots, Inc. (a) ................................. 2,000 26
Biogen Idec, Inc. (a) .............................. 11,800 464
Biomet, Inc. ....................................... 4,400 168
BJ Services Co. .................................... 5,400 329
Black & Decker Corp. ............................... 2,400 217
BMC Software, Inc. (a) ............................. 3,900 74
Boeing Co. ......................................... 20,400 1,347
Boston Scientific Corp. (a) ........................ 25,700 744
Bristol-Myers Squibb Co. ........................... 7,600 190
Broadcom Corp., Class A (a) ........................ 8,100 346
Brown-Forman Corp., Class B ........................ 1,500 88
Brunswick Corp. .................................... 3,300 154
Burlington Northern Santa Fe Corp. ................. 13,100 711
Burlington Resources, Inc. ......................... 13,400 859
C.R. Bard, Inc. .................................... 2,600 174
Calpine Corp. (a) # ................................ 6,700 22
Capital One Financial Corp. ........................ 4,200 347
Caremark Rx, Inc. (a) .............................. 7,900 352
Caterpillar, Inc. .................................. 19,400 1,046
Cendant Corp. ...................................... 30,900 660
CenterPoint Energy, Inc. # ......................... 4,900 67
Chemtura Corp. ..................................... 2,000 31
Chevron Corp. ...................................... 36,038 2,091
CIENA Corp. (a) .................................... 10,000 22
CIGNA Corp. ........................................ 4,500 480
Cinergy Corp. ...................................... 3,300 146
Circuit City Stores, Inc. .......................... 6,600 120
Cisco Systems, Inc. (a) ............................ 124,300 2,380
CIT Group, Inc. .................................... 3,700 163
Citigroup, Inc. .................................... 91,666 3,987
Citrix Systems, Inc. (a) ........................... 5,400 129
Clorox Co. ......................................... 3,600 201
CMS Energy Corp. (a) # ............................. 3,400 54
Coach, Inc. (a) .................................... 9,400 330
Coca-Cola Co. ...................................... 38,800 1,698
Coca-Cola Enterprises, Inc. ........................ 6,000 141
Colgate-Palmolive Co. .............................. 14,600 773
Comcast Corp., Class A (a) ......................... 16,712 514
Comerica, Inc. ..................................... 4,700 287
Compass Bancshares, Inc. ........................... 2,200 106
Computer Sciences Corp. (a) ........................ 5,300 243
Compuware Corp. (a) ................................ 13,500 114
ConocoPhillips ..................................... 30,228 1,892
Consolidated Edison, Inc. .......................... 4,100 197
Constellation Energy Group ......................... 3,000 181
Convergys Corp. (a) ................................ 4,900 71
Cooper Industries Ltd., Class A .................... 3,200 207
Cooper Tire & Rubber Co. ........................... 1,100 22
Corning, Inc. (a) .................................. 41,900 798
CSX Corp. .......................................... 6,200 282
CVS Corp. .......................................... 13,800 428
Darden Restaurants, Inc. ........................... 4,950 172
Deere & Co. ........................................ 8,600 632
Continued
Shares Value
------- --------
COMMON STOCKS, continued
Dell, Inc. (a) ..................................... 25,000 $ 1,012
Delta Air Lines, Inc. (a) # ........................ 2,100 6
Devon Energy Corp. ................................. 8,100 454
Dollar General Corp. ............................... 5,300 108
Dominion Resources, Inc. ........................... 5,904 436
Dover Corp. ........................................ 6,000 248
Dow Chemical Co. (The) ............................. 30,600 1,466
DTE Energy Co. ..................................... 2,800 132
Duke Energy Corp. # ................................ 15,900 469
Dynergy, Inc., Class A (a) ......................... 5,900 33
E*TRADE Financial Corp. (a) ........................ 12,800 199
E.I. Du Pont de Nemours & Co. ...................... 25,378 1,082
Eastman Chemical Co. ............................... 2,700 150
Eastman Kodak Co. .................................. 5,000 134
Eaton Corp. ........................................ 4,500 294
eBay, Inc. (a) ..................................... 21,000 877
Edison International ............................... 5,500 225
El Paso Energy Corp. # ............................. 11,053 133
Eli Lilly & Co. .................................... 7,900 445
EMC Corp. (a) ...................................... 61,600 843
Emerson Electric Co. ............................... 11,600 763
Engelhard Corp. .................................... 4,100 118
Entergy Corp. ...................................... 3,600 281
EOG Resources, Inc. ................................ 8,300 507
Equifax, Inc. ...................................... 2,200 80
Equity Office Properties Trust ..................... 6,900 245
Equity Residential Property ........................ 4,800 194
Exelon Corp. ....................................... 11,350 606
Express Scripts, Inc., (a) ......................... 2,600 136
Exxon Mobil Corp. .................................. 115,564 6,789
Fannie Mae ......................................... 16,600 927
Federated Department Stores, Inc. .................. 2,900 220
FedEx Corp. ........................................ 10,400 875
First Data Corp. ................................... 22,900 942
FirstEnergy Corp. .................................. 5,497 274
Fisher Scientific International, Inc. (a) .......... 200 13
Forest Laboratories, Inc. (a) ...................... 11,700 467
Fortune Brands, Inc. ............................... 5,000 473
FPL Group, Inc. # .................................. 6,700 289
Freddie Mac ........................................ 17,600 1,114
Freescale Semiconductor, Inc., Class B (a) ......... 6,697 172
Gap, Inc. (The) .................................... 12,900 272
General Dynamics Corp. ............................. 6,000 691
General Electric Co. ............................... 182,000 6,279
Georgia-Pacific Corp. .............................. 8,800 301
Gillette Co. ....................................... 17,100 918
Goldman Sachs Group, Inc. .......................... 1,200 129
Goodrich Corp. ..................................... 4,200 186
Guidant Corp. ...................................... 5,500 378
H.J. Heinz Co. ..................................... 12,200 449
Halliburton Co. .................................... 8,700 488
Harrah's Entertainment, Inc. ....................... 3,100 244
Hasbro, Inc. ....................................... 5,800 127
Hercules, Inc. (a) ................................. 1,800 25
Hewlett-Packard Co. ................................ 61,411 1,512
Hilton Hotels Corp. ................................ 13,300 329
Continued
43
- ---------------------------------------------------
ENHANCED MARKET FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Home Depot, Inc. (The) ........................... 36,800 $ 1,601
Honeywell International, Inc. .................... 22,300 876
Hospira, Inc. (a) ................................ 2,680 103
Humana, Inc. (a) ................................. 5,600 223
Huntington Bancshares, Inc. ...................... 3,900 97
IBM Corp. ........................................ 32,800 2,738
IMS Health, Inc. ................................. 6,000 163
Ingersoll-Rand Co. Ltd., Class A ................. 5,800 453
Intel Corp. ...................................... 110,300 2,995
International Game Technology .................... 5,800 159
International Paper Co. .......................... 17,000 537
ITT Industries, Inc. ............................. 2,600 277
J.C. Penney Co., Inc. ............................ 6,700 376
JDS Uniphase Corp. (a) ........................... 49,700 75
Jefferson-Pilot Corp. ............................ 2,400 120
Johnson & Johnson ................................ 51,000 3,262
Johnson Controls, Inc. ........................... 5,300 304
Jones Apparel Group, Inc. ........................ 2,000 61
JPMorgan Chase & Co. ............................. 63,624 2,236
KB Home .......................................... 2,900 238
Kerr-McGee Corp. ................................. 3,991 320
KeySpan Corp. .................................... 3,000 122
Kimberly-Clark Corp. ............................. 12,700 810
Kinder Morgan, Inc. .............................. 2,000 178
King Pharmaceuticals, Inc. (a) ................... 8,366 93
KLA-Tencor Corp. ................................. 3,500 181
Kohl's Corp. (a) ................................. 11,300 637
L-3 Communications Holdings, Inc. ................ 2,000 156
Laboratory Corp. of America Holdings (a) ......... 4,200 213
Lexmark International, Inc., Class A (a) ......... 4,300 270
Lincoln National Corp. ........................... 6,100 295
Liz Claiborne, Inc. .............................. 3,800 158
Lockheed Martin Corp. ............................ 11,400 711
Loews Corp. ...................................... 2,800 234
Louisiana-Pacific Corp. .......................... 3,900 105
Lowe's Cos., Inc. ................................ 1,700 113
LSI Logic Corp. (a) .............................. 13,300 130
Lucent Technologies, Inc. (a) .................... 76,800 225
M & T Bank Corp. ................................. 1,700 184
Manor Care, Inc. ................................. 3,000 114
Marathon Oil Corp. ............................... 12,543 732
Marsh & McLennan Cos., Inc. ...................... 9,100 264
Masco Corp. ...................................... 14,900 505
Mattel, Inc. ..................................... 7,000 131
Maxim Integrated Products, Inc. .................. 5,600 234
May Department Stores Co. ........................ 5,000 205
Maytag Corp. ..................................... 1,400 24
MBNA Corp. ....................................... 27,050 681
McCormick & Co., Inc., Non-voting shares ......... 2,400 83
McDonald's Corp. ................................. 31,800 991
McGraw-Hill Cos., Inc. (The) ..................... 12,700 584
McKesson Corp. ................................... 10,200 459
MeadWestvaco Corp. ............................... 6,400 187
Medco Health Solutions, Inc. (a) ................. 4,574 222
Medtronic, Inc. .................................. 26,100 1,408
Mellon Financial Corp. ........................... 7,400 225
Continued
Shares Value
------- --------
COMMON STOCKS, continued
Merck & Co., Inc. ................................ 50,100 $ 1,556
Meredith Corp. ................................... 900 45
Merrill Lynch & Co., Inc. ........................ 27,400 1,611
MetLife, Inc. # .................................. 25,200 1,238
Microsoft Corp. .................................. 183,700 4,706
Millipore Corp. (a) .............................. 1,700 104
Molson Coors Brewing Co., Class B ................ 2,200 138
Monsanto Co. ..................................... 6,331 427
Morgan Stanley ................................... 20,900 1,109
Motorola, Inc. ................................... 57,300 1,214
Mylan Laboratories, Inc. ......................... 4,600 80
Nabors Industries Ltd. (a) ....................... 4,800 314
National Semiconductor Corp. ..................... 6,100 151
National-Oilwell Varco, Inc. (a) ................. 5,900 309
Navistar International Corp. (a) ................. 2,300 79
NCR Corp. (a) .................................... 5,800 201
Newmont Mining Corp. # ........................... 10,500 394
News Corp., Class A .............................. 49,800 816
Nextel Communications, Inc., Class A (a) ......... 19,400 675
Nicor, Inc. ...................................... 700 29
Nike, Inc., Class B .............................. 4,000 335
NiSource, Inc. ................................... 4,400 107
Noble Corp. ...................................... 2,300 155
Nordstrom, Inc. .................................. 8,400 311
Norfolk Southern Corp. ........................... 13,900 517
North Fork Bancorp, Inc. ......................... 16,350 448
Northern Trust Corp. ............................. 900 46
Northrop Grumman Corp. ........................... 11,300 627
Novell, Inc. (a) ................................. 13,100 80
Novellus Systems, Inc. (a) ....................... 4,800 138
Nucor Corp. ...................................... 2,700 150
NVIDIA Corp. (a) ................................. 5,800 157
Occidental Petroleum Corp. ....................... 11,500 946
Office Depot, Inc. (a) ........................... 10,400 295
Omnicom Group, Inc. .............................. 3,200 272
Oracle Corp. (a) ................................. 98,400 1,336
Pactiv Corp. (a) ................................. 5,200 115
Parametric Technology Corp. (a) .................. 4,200 29
Parker Hannifin Corp. ............................ 4,200 276
Peoples Energy Corp. ............................. 600 26
Pepsi Bottling Group, Inc. ....................... 3,500 102
PepsiCo, Inc. .................................... 28,690 1,564
PerkinElmer, Inc. ................................ 4,500 94
Pfizer, Inc. ..................................... 140,773 3,729
PG&E Corp. # ..................................... 6,200 233
Phelps Dodge Corp. ............................... 3,300 351
Pinnacle West Capital Corp. ...................... 1,500 69
Pitney Bowes, Inc. ............................... 5,200 232
Plum Creek Timber Co., Inc. ...................... 3,100 117
PNC Financial Services Group ..................... 4,900 269
PPG Industries, Inc. ............................. 4,400 286
PPL Corp. ........................................ 3,350 206
Praxair, Inc. .................................... 5,600 277
Principal Financial Group, Inc. .................. 5,000 220
Procter & Gamble Co. (The) ....................... 42,500 2,364
Progress Energy, Inc. ............................ 4,137 185
Continued
44
---------------------------------------------------
ENHANCED MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------ --------
COMMON STOCKS, continued
ProLogis ....................................... 3,200 $ 146
Providian Financial Corp. (a) .................. 5,000 95
Prudential Financial, Inc. ..................... 14,700 983
Public Service Enterprise Group, Inc. .......... 4,100 264
Pulte Homes, Inc. .............................. 3,700 346
QLogic Corp. (a) ............................... 3,200 99
QUALCOMM, Inc. ................................. 36,700 1,449
R.R. Donnelley & Sons Co. ...................... 5,100 184
RadioShack Corp. ............................... 5,500 129
Raytheon Co. ................................... 15,700 617
Reebok International Ltd. ...................... 2,100 89
Rockwell Automation, Inc. ...................... 4,900 252
Rohm & Haas Co. ................................ 3,400 157
Rowan Cos., Inc. ............................... 3,700 126
Ryder System, Inc. ............................. 1,100 43
Safeway, Inc. .................................. 2,700 66
Sanmina-SCI Corp. (a) .......................... 18,000 86
Sara Lee Corp. ................................. 13,700 273
SBC Communications, Inc. ....................... 57,080 1,396
Schering-Plough Corp. .......................... 25,600 533
Schlumberger Ltd. .............................. 18,100 1,516
Scientific-Atlanta, Inc. ....................... 5,200 200
Seagate Technology, Inc., Escrow Shares ## ..... 2,400 --
Sealed Air Corp. (a) ........................... 1,500 80
Sears Holdings Corp. (a) ....................... 1,701 262
Sempra Energy .................................. 4,100 174
Sherwin-Williams Co. ........................... 3,300 157
Siebel Systems, Inc. ........................... 17,700 149
Simon Property Group, Inc. ..................... 3,800 303
Snap-on, Inc. .................................. 1,000 37
Solectron Corp. (a) ............................ 33,500 129
Southern Co. ................................... 12,700 443
Southwest Airlines Co. ......................... 20,800 295
Sovereign Bancorp, Inc. ........................ 1,000 24
Sprint Corp. ................................... 25,200 678
St. Jude Medical, Inc. (a) ..................... 12,500 593
Stanley Works .................................. 2,600 127
Starwood Hotels & Resorts Worldwide, Inc. ...... 3,600 228
Sun Microsystems, Inc. (a) ..................... 58,400 224
SunGard Data Systems, Inc. (a) ................. 5,000 179
Sunoco, Inc. ................................... 2,100 264
SunTrust Banks, Inc. ........................... 5,900 429
SUPERVALU, Inc. ................................ 4,700 166
Symantec Corp. (a) ............................. 20,394 448
Synovus Financial Corp. ........................ 1,300 38
T. Rowe Price Group, Inc. ...................... 200 13
Target Corp. ................................... 26,500 1,557
TECO Energy, Inc. .............................. 3,000 57
Tektronix, Inc. ................................ 3,200 80
Tellabs, Inc. (a) # ............................ 16,100 156
Temple-Inland, Inc. ............................ 4,300 171
Continued
Shares Value
--------- --------
COMMON STOCKS, continued
Teradyne, Inc. (a) ............................. 6,700 $ 104
Texas Instruments, Inc. ........................ 32,600 1,035
Textron, Inc. .................................. 3,500 260
Thermo Electron Corp. (a) ...................... 4,700 140
Tiffany & Co. .................................. 2,400 82
Time Warner, Inc. .............................. 96,700 1,645
Torchmark Corp. ................................ 1,900 99
TXU Corp. ...................................... 4,100 355
Tyco International Ltd. ........................ 34,769 1,059
U.S. Bancorp ................................... 44,107 1,326
Union Pacific Corp. ............................ 9,000 633
Unisys Corp. (a) ............................... 11,600 75
United Parcel Service, Inc., Class B ........... 9,600 701
United States Steel Corp. # .................... 3,900 166
United Technologies Corp. ...................... 24,800 1,257
UnitedHealth Group, Inc. ....................... 21,700 1,135
Unocal Corp. ................................... 4,700 305
UST, Inc. ...................................... 4,000 184
V.F. Corp. ..................................... 1,700 100
Valero Energy Corp. ............................ 4,500 373
Verizon Communications, Inc. ................... 47,506 1,626
Viacom, Inc., Class B .......................... 36,284 1,215
Visteon Corp. .................................. 2,091 19
W. W. Grainger, Inc. ........................... 3,000 187
Wachovia Corp. ................................. 13,973 704
Wal-Mart Stores, Inc. .......................... 57,400 2,831
Walgreen Co. ................................... 2,800 134
Walt Disney Co. (The) .......................... 9,900 254
Washington Mutual, Inc. ........................ 15,000 637
Waters Corp. (a) ............................... 4,000 181
Watson Pharmaceuticals, Inc. (a) ............... 3,800 127
WellPoint, Inc. (a) ............................ 19,500 1,379
Wells Fargo & Co. .............................. 28,900 1,773
Wendy's International, Inc. .................... 3,100 160
Williams Cos., Inc. ............................ 9,600 204
Wyeth .......................................... 29,600 1,354
Xcel Energy, Inc. # ............................ 6,685 130
XL Capital Ltd., Class A ....................... 4,800 345
XTO Energy, Inc. ............................... 9,533 335
Yahoo!, Inc. (a) ............................... 4,400 147
Zimmer Holdings, Inc. (a) ...................... 4,110 339
--------
TOTAL COMMON STOCKS ............................ 194,378
--------
AFFILIATED SECURITIES (0.7%)
AmSouth Prime Money Market Fund ................ 1,275,693 1,276
AmSouth Treasury Reserve Money
Market Fund .................................. 7,646 8
--------
TOTAL AFFILIATED SECURITIES .................... 1,284
--------
WARRANTS (+)
Progress Energy, Inc., CVO (a) ................. 500 --**
--------
TOTAL WARRANTS ................................. --**
--------
Continued
45
- ---------------------------------------------------
ENHANCED MARKET FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- --------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (0.9%)
BNY Institutional Cash Reserve Fund ......... 1,694,943 $ 1,695
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................ 1,695
--------
TOTAL INVESTMENTS
(Cost $174,209)^ -- 100.8% ................ 197,357
Liabilities in excess of other assets --
(0.8)% .................................... (1,528)
--------
NET ASSETS -- 100.0% ........................ $195,828
========
Futures Contracts
(Amounts in thousands, except number of contracts)
- --------------------------------------------------------------------------------------
Notional Unrealized
Number Value at Appreciation
of Expiration 7/31/05 (Depreciation)
Contracts Description Date (USD) (USD)
- ----------- -------------------------- ------------ ---------- ---------------
Long Futures Outstanding
--------------------------
5 S&P 500 Futures .......... September, $1,546 $50
2005
See notes to schedule of portfolio investments.
---------------------------------------------------
LARGE CAP FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS (98.5%)
Abbott Laboratories ........................ 126,400 $ 5,894
Adobe Systems, Inc. ........................ 88,500 2,623
AFLAC, Inc. ................................ 68,000 3,066
Allergan, Inc. ............................. 38,900 3,476
American Express Co. ....................... 48,600 2,673
American International Group, Inc. ......... 47,600 2,866
Amgen, Inc. (a) ............................ 106,900 8,526
Apollo Group, Inc., Class A (a) # .......... 47,600 3,577
Applied Materials, Inc. .................... 398,600 7,358
Automatic Data Processing, Inc. ............ 134,100 5,955
Avery Dennison Corp. ....................... 29,200 1,655
Bed Bath & Beyond, Inc. (a) ................ 82,600 3,791
Boeing Co. ................................. 75,800 5,004
Cardinal Health, Inc. ...................... 43,700 2,604
Cintas Corp. ............................... 63,200 2,802
Cisco Systems, Inc. (a) .................... 330,500 6,329
Citigroup, Inc. ............................ 48,600 2,114
Coca-Cola Co. .............................. 121,500 5,317
Cognos, Inc. (a) ........................... 56,400 2,206
Dell, Inc. (a) ............................. 141,000 5,706
Dollar General Corp. ....................... 179,800 3,654
Dover Corp. ................................ 114,300 4,716
eBay, Inc. (a) ............................. 75,800 3,167
Electronic Arts, Inc. (a) .................. 65,100 3,750
Eli Lilly & Co. ............................ 87,500 4,928
EMC Corp. (a) .............................. 427,700 5,855
First Data Corp. ........................... 68,000 2,798
Gap, Inc. .................................. 155,500 3,283
Genentech, Inc. (a) ........................ 66,100 5,905
General Dynamics Corp. ..................... 27,200 3,133
General Electric Co. ....................... 223,600 7,715
Gillette Co. ............................... 77,800 4,176
Harley-Davidson, Inc. ...................... 53,500 2,846
Hewlett-Packard Co. ........................ 291,600 7,179
Home Depot, Inc. ........................... 175,000 7,613
Honeywell International, Inc. .............. 27,200 1,068
IBM Corp. .................................. 116,600 9,732
Illinois Tool Works, Inc. .................. 36,900 3,160
Intel Corp. ................................ 238,200 6,465
Johnson & Johnson .......................... 122,500 7,835
Linear Technology Corp. .................... 141,000 5,479
Lowe's Cos., Inc. .......................... 53,500 3,543
McDonald's Corp. ........................... 97,200 3,030
McGraw Hill Cos., Inc. ..................... 53,500 2,462
MedImmune, Inc. (a) ........................ 128,600 3,654
Medtronic, Inc. ............................ 150,700 8,129
Merck & Co., Inc. .......................... 145,800 4,529
Microsoft Corp. ............................ 320,800 8,216
Motorola, Inc. ............................. 87,500 1,853
Network Appliance, Inc. (a) # .............. 170,100 4,339
Nokia Oyj -- ADR # ......................... 181,000 2,887
Oracle Corp. (a) ........................... 476,400 6,470
Patterson Cos., Inc. (a) ................... 45,700 2,038
Paychex, Inc. .............................. 124,400 4,343
PepsiCo, Inc. .............................. 97,200 5,300
Pfizer, Inc. ............................... 272,200 7,213
Continued
46
- ---------------------------------------------------
LARGE CAP FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- ---------
COMMON STOCKS, continued
Procter & Gamble Co. ........................ 29,200 $ 1,624
QUALCOMM, Inc. .............................. 87,500 3,455
Schering-Plough Corp. ....................... 272,200 5,667
Staples, Inc. ............................... 128,600 2,928
Starbucks Corp. (a) ......................... 63,200 3,321
Stryker Corp. ............................... 63,200 3,418
Sysco Corp. ................................. 175,000 6,310
Target Corp. ................................ 48,600 2,855
Teva Pharmaceutical Industries
Ltd. -- ADR ............................... 102,100 3,206
TJX Cos., Inc. .............................. 252,700 5,941
United Technologies Corp. ................... 63,200 3,204
UnitedHealth Group, Inc. .................... 87,500 4,576
Wal-Mart Stores, Inc. ....................... 97,200 4,797
Walgreen Co. ................................ 102,100 4,887
Walt Disney Co. ............................. 170,100 4,361
Wyeth ....................................... 145,800 6,670
Xilinx, Inc. ................................ 106,900 3,032
--------
TOTAL COMMON STOCKS ......................... 326,257
--------
INVESTMENT COMPANIES (1.6%)
AIM Liquid Assets Money Market Fund ......... 5,181,443 5,181
--------
TOTAL INVESTMENT COMPANIES .................. 5,181
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (0.8%)
BNY Institutional Cash Reserve Fund ......... 2,728,518 2,729
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................ 2,729
--------
TOTAL INVESTMENTS
(Cost $245,772)^ -- 100.9% ................ 334,167
Liabilities in excess of other assets --
(0.9)% .................................... (2,928)
--------
NET ASSETS -- 100.0% ........................ $331,239
========
See notes to schedule of portfolio investments.
---------------------------------------------------
CAPITAL GROWTH FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- -----------
COMMON STOCKS (97.9%)
3M Co. ......................................... 60,700 $ 4,553
Abbott Laboratories ............................ 81,000 3,777
American Express Co. ........................... 92,000 5,060
American International Group, Inc. ............. 39,400 2,372
Amgen, Inc. (a) ................................ 90,000 7,178
Apollo Group, Inc., Class A (a) # .............. 48,000 3,607
Applied Materials, Inc. ........................ 220,000 4,061
Barr Pharmaceuticals, Inc. (a) # ............... 67,500 3,201
Bed Bath & Beyond, Inc. (a) .................... 36,000 1,652
Best Buy Co., Inc. # ........................... 60,000 4,596
Chico's FAS, Inc. (a) # ........................ 73,000 2,928
Cintas Corp. # ................................. 38,000 1,685
Cisco Systems, Inc. (a) ........................ 385,000 7,373
Citigroup, Inc. ................................ 54,000 2,349
Dell, Inc. (a) ................................. 181,000 7,325
eBay, Inc. (a) # ............................... 83,400 3,484
Electronic Arts, Inc. (a) ...................... 30,000 1,728
Eli Lilly & Co. ................................ 58,000 3,267
EMC Corp. (a) .................................. 110,000 1,506
First Data Corp. ............................... 75,000 3,086
Genentech, Inc. (a) ............................ 34,000 3,037
General Electric Co. ........................... 265,000 9,142
Goldman Sachs Group, Inc. ...................... 22,600 2,429
Guidant Corp. .................................. 17,200 1,183
Harley-Davidson, Inc. .......................... 30,000 1,596
Home Depot, Inc. ............................... 90,000 3,916
IBM Corp. ...................................... 71,000 5,926
Illinois Tool Works, Inc. ...................... 42,000 3,597
Intel Corp. .................................... 315,000 8,548
Johnson & Johnson .............................. 148,000 9,465
Linear Technology Corp. ........................ 67,000 2,604
Lowe's Cos., Inc. .............................. 81,000 5,365
Medtronic, Inc. ................................ 100,000 5,394
Mercury Interactive Corp. (a) # ................ 30,000 1,181
Microsoft Corp. ................................ 342,000 8,758
Network Appliance, Inc. (a) # .................. 40,000 1,020
Nike, Inc., Class B ............................ 14,000 1,173
Oracle Corp. (a) ............................... 300,000 4,074
Paychex, Inc. .................................. 80,000 2,793
PepsiCo, Inc. .................................. 108,000 5,889
Pfizer, Inc. ................................... 109,000 2,889
Procter & Gamble Co. ........................... 98,000 5,452
QUALCOMM, Inc. ................................. 134,000 5,292
Schlumberger Ltd. .............................. 45,000 3,768
Staples, Inc. .................................. 118,500 2,698
Starbucks Corp. (a) ............................ 65,000 3,416
Stryker Corp. # ................................ 112,000 6,058
Sysco Corp. .................................... 78,000 2,813
T. Rowe Price Group, Inc. ...................... 26,000 1,725
Target Corp. ................................... 76,000 4,465
Texas Instruments, Inc. ........................ 103,000 3,271
United Parcel Service, Inc., Class B # ......... 69,200 5,050
United Technologies Corp. ...................... 108,000 5,475
UnitedHealth Group, Inc. ....................... 93,000 4,864
Wal-Mart Stores, Inc. .......................... 132,000 6,514
Walgreen Co. ................................... 108,000 5,169
Continued
47
- ---------------------------------------------------
CAPITAL GROWTH FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
---------- --------
COMMON STOCKS, continued
Walt Disney Co. ............................. 91,000 $ 2,333
Williams-Sonoma, Inc. (a) ................... 100,000 4,416
Wyeth ....................................... 75,000 3,431
Yahoo!, Inc. (a) ............................ 90,000 3,002
--------
TOTAL COMMON STOCKS ......................... 243,979
--------
INVESTMENT COMPANIES (2.1%)
AIM Liquid Assets Money Market Fund ......... 5,185,256 5,185
--------
TOTAL INVESTMENT COMPANIES .................. 5,185
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (7.7%)
BNY Institutional Cash Reserve Fund ......... 19,086,619 19,087
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................ 19,087
--------
TOTAL INVESTMENTS
(Cost $223,358)^ -- 107.7%................. 268,251
Liabilities in excess of other assets --
(7.7)% .................................... (19,177)
--------
NET ASSETS -- 100.0% ........................ $249,074
========
See notes to schedule of portfolio investments.
---------------------------------------------------
MID CAP FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- -----------
COMMON STOCKS (96.3%)
3Com Corp. (a) ............................ 84,400 $ 307
99 Cents Only Stores (a) .................. 13,100 161
A.G. Edwards, Inc. ........................ 16,800 744
Abercrombie & Fitch Co., Class A .......... 27,500 1,982
Activision, Inc. (a) ...................... 77,500 1,576
Acxiom Corp. .............................. 18,700 377
Adesa, Inc. ............................... 19,600 474
ADTRAN, Inc. .............................. 15,100 404
Advance Auto Parts, Inc. (a) .............. 24,800 1,710
Advanced Medical Optics, Inc. (a) ......... 14,261 593
Advent Software, Inc. (a) # ............... 5,800 139
Aeropostale, Inc. (a) ..................... 12,200 364
AGCO Corp. (a) ............................ 19,700 408
AGL Resources, Inc. ....................... 17,000 654
Airgas, Inc. .............................. 15,400 454
AirTran Holdings, Inc. (a) # .............. 18,600 213
Alaska Air Group, Inc. (a) # .............. 5,400 189
Albemarle Corp. ........................... 9,900 377
Alexander & Baldwin, Inc. ................. 9,700 519
Alliance Data Systems Corp. (a) ........... 29,300 1,247
Alliant Energy Corp. # .................... 25,600 745
Alliant Techsystems, Inc. (a) # ........... 100 7
Allmerica Financial Corp. (a) ............. 11,900 464
AMB Property Corp. ........................ 18,500 851
American Eagle Outfitters, Inc. ........... 49,300 1,624
American Financial Group, Inc. ............ 13,000 440
American Greetings Corp., Class A ......... 15,300 389
AmeriCredit Corp. (a) # ................... 8,900 238
AmerUs Group Co. # ........................ 8,500 438
Ametek, Inc. .............................. 25,900 1,067
Amphenol Corp., Class A ................... 33,100 1,474
Ann Taylor Stores Corp. (a) ............... 15,700 405
Anteon International Corp. (a) ............ 7,100 333
Applebee's International, Inc. ............ 18,000 477
Apria Healthcare Group, Inc. (a) .......... 10,900 368
Aqua America, Inc. ........................ 21,050 675
Aquila, Inc. (a) .......................... 53,200 198
Arch Coal, Inc. ........................... 2,900 165
Arrow Electronics, Inc. (a) ............... 25,800 775
ArvinMeritor, Inc. ........................ 15,600 297
Associated Banc-Corp. ..................... 10,450 356
Astoria Financial Corp. ................... 1,000 28
Atmel Corp. (a) ........................... 99,500 233
Avnet, Inc. (a) ........................... 52,800 1,382
Avocent Corp. (a) ......................... 22,100 770
Bandag, Inc. # ............................ 3,400 157
Bank of Hawaii Corp. ...................... 20,200 1,037
Banta Corp. ............................... 5,400 258
Barnes & Noble, Inc. (a) .................. 27,700 1,136
Barr Laboratories, Inc. (a) ............... 32,375 1,535
Beckman Coulter, Inc. ..................... 13,700 744
Belo Corp., Class A ....................... 5,400 129
BJ's Wholesale Club, Inc. (a) ............. 30,000 957
Black Hills Corp. # ....................... 7,100 283
Blyth, Inc. ............................... 7,600 212
Bob Evans Farms, Inc. # ................... 7,700 195
Continued
48
---------------------------------------------------
MID CAP FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------ --------
COMMON STOCKS, continued
Borders Group, Inc. ............................. 15,600 $ 387
BorgWarner, Inc. ................................ 1,500 87
Boyd Gaming Corp. ............................... 14,600 766
Brink's Co. ..................................... 25,200 911
Brinker International, Inc. (a) ................. 33,700 1,378
Brown & Brown, Inc. ............................. 500 22
C.H. Robinson Worldwide, Inc. # ................. 8,500 532
Cabot Corp. ..................................... 27,900 965
Cabot Microelectronics Corp. (a) # .............. 5,400 162
Cadence Design System, Inc. (a) ................. 19,500 314
Callaway Golf Co. ............................... 15,000 225
Career Education Corp. (a) ...................... 6,700 260
Carlisle Cos., Inc. ............................. 6,900 454
CarMax, Inc. (a) # .............................. 2,800 82
Catalina Marketing Corp. # ...................... 10,900 261
CDW Corp. ....................................... 5,400 335
Ceridian Corp. (a) .............................. 63,500 1,329
Certegy, Inc. ................................... 27,100 938
Charles River Laboratories International,
Inc. (a) # .................................... 27,000 1,315
CheckFree Corp. (a) # ........................... 1,700 58
Cheesecake Factory, Inc. (a) # .................. 800 29
Chemtura Corp. .................................. 25,000 394
Chico's FAS, Inc. (a) # ......................... 22,700 910
ChoicePoint, Inc. (a) ........................... 34,700 1,513
Church & Dwight, Inc. ........................... 1,800 68
Cincinnati Bell, Inc. (a) ....................... 53,500 243
City National Corp. ............................. 18,000 1,315
Claire's Stores, Inc. ........................... 43,900 1,115
CNF, Inc. ....................................... 23,100 1,192
Cognizant Technology Solutions Corp.,
Class A (a) ................................... 29,700 1,458
Colonial BancGroup, Inc. ........................ 34,000 791
Commerce Bancorp, Inc. .......................... 15,700 533
CommScope, Inc. (a) # ........................... 10,800 182
Community Health Systems, Inc. (a) .............. 29,700 1,147
Cooper Cameron Corp. (a) ........................ 21,400 1,519
Copart, Inc. (a) ................................ 17,900 438
Corinthian Colleges, Inc. (a) ................... 20,200 277
Corporate Executive Board Co. ................... 1,500 121
Covance, Inc. (a) ............................... 26,600 1,318
Coventry Health Care, Inc. (a) .................. 31,800 2,250
Crane Co. ....................................... 11,900 371
Credence Systems Corp. (a) # .................... 20,800 227
CSG Systems International, Inc. (a) ............. 11,300 211
Cullen/Frost Bankers, Inc. ...................... 19,900 997
Cypress Semiconductor Corp. (a) # ............... 28,300 406
Cytec Industries, Inc. .......................... 19,100 867
Dean Foods Co. (a) .............................. 47,400 1,692
Deluxe Corp. .................................... 10,900 436
Denbury Resources, Inc. (a) ..................... 12,700 594
DENTSPLY International, Inc. .................... 5,600 312
Developers Diversified Realty Corp. ............. 23,900 1,163
DeVry, Inc. (a) # ............................... 14,300 284
Diebold, Inc. # ................................. 15,900 790
Dollar Tree Stores, Inc. (a) .................... 1,700 42
Continued
Shares Value
------ --------
COMMON STOCKS, continued
Donaldson Co., Inc. ............................. 3,300 $ 108
DPL, Inc. # ..................................... 27,600 762
DST Systems, Inc. (a) # ......................... 4,100 208
Dun & Bradstreet Corp. (a) ...................... 24,400 1,545
Duquesne Light Holdings, Inc. # ................. 16,700 324
Dycom Industries, Inc. (a) # .................... 10,600 259
Eaton Vance Corp. ............................... 28,900 710
Education Management Corp. (a) .................. 30,200 1,049
Edwards Lifesciences Corp. (a) # ................ 200 9
Emmis Communications Corp., Class A (a).......... 7,340 151
Energizer Holdings, Inc. (a) .................... 25,200 1,610
Energy East Corp. ............................... 32,600 909
ENSCO International, Inc. ....................... 49,300 1,991
Entercom Communications Corp. (a) ............... 9,300 295
Equitable Resources, Inc. ....................... 13,500 959
Everest Re Group, Ltd. .......................... 18,800 1,831
Expeditors International of Washington, Inc...... 11,800 650
F5 Networks, Inc. (a) ........................... 8,100 342
Fairchild Semiconductor Corp., Class A (a)....... 52,500 885
Fastenal Co. .................................... 5,400 354
Federal Signal Corp. # .......................... 10,500 184
Ferro Corp. ..................................... 9,100 205
Fidelity National Financial, Inc. ............... 53,985 2,127
First American Corp. ............................ 33,200 1,459
Flowserve Corp. (a) ............................. 12,000 406
FMC Corp. (a) ................................... 8,200 496
FMC Technologies, Inc. (a) ...................... 30,400 1,102
Foot Locker, Inc. ............................... 57,600 1,440
Forest Oil Corp. (a) ............................ 12,400 555
Furniture Brands International, Inc. ............ 11,800 226
Gartner, Inc., Class A (a) # .................... 18,100 188
GATX Corp. ...................................... 10,700 404
Gen-Probe, Inc. (a) ............................. 10,800 476
Gentex Corp. # .................................. 3,500 62
Glatfelter ...................................... 8,100 103
Graco, Inc. ..................................... 28,050 1,072
Granite Construction, Inc. ...................... 8,300 284
Grant Prideco, Inc. (a) ......................... 27,300 876
Great Plains Energy, Inc. # ..................... 16,200 526
Greater Bay Bancorp # ........................... 11,200 294
GTECH Holdings Corp. ............................ 25,200 755
Hanover Compressor Co. (a) # .................... 17,000 247
Harman International Industries, Inc. ........... 20,900 1,796
Harris Corp. .................................... 47,500 1,761
Harsco Corp. .................................... 18,400 1,109
Harte-Hanks, Inc. ............................... 15,700 427
Hawaiian Electric Industries, Inc. .............. 17,500 471
HCC Insurance Holdings, Inc. .................... 22,500 624
Health Net, Inc. (a) ............................ 9,200 357
Helmerich & Payne, Inc. ......................... 11,000 628
Henry Schein, Inc. (a) .......................... 4,600 199
Herman Miller, Inc. ............................. 15,500 495
Hibernia Corp., Class A ......................... 34,200 1,157
Highwoods Properties, Inc. ...................... 11,700 370
Hillenbrand Industries, Inc. .................... 12,800 658
HNI Corp. ....................................... 11,500 669
Continued
49
- ---------------------------------------------------
MID CAP FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------ --------
COMMON STOCKS, continued
Horace Mann Educators Corp. ...................... 9,300 $ 186
Hormel Foods Corp. ............................... 23,000 681
Hospitality Properties Trust ..................... 14,800 657
Hovnanian Enterprises, Inc., Class A (a) ......... 10,700 756
Hubbell, Inc., Class B ........................... 4,500 204
IDACORP, Inc. .................................... 9,100 286
Imation Corp. # .................................. 7,700 334
INAMED Corp. (a) ................................. 8,000 579
Independence Community Bank Corp. ................ 600 22
Integrated Circuit Systems, Inc. (a) ............. 15,800 346
Integrated Device Technology, Inc. (a) ........... 23,400 271
International Rectifier Corp. (a) # .............. 14,100 663
International Speedway Corp., Class A ............ 9,800 570
Intersil Corp., Class A .......................... 6,900 134
Investors Financial Services Corp. ............... 500 17
Invitrogen Corp. (a) # ........................... 3,800 326
ITT Educational Services, Inc. (a) ............... 10,200 523
IVAX Corp. (a) # ................................. 50,825 1,295
J.B. Hunt Transport Services, Inc. ............... 3,600 71
J.M. Smucker Co. ................................. 4,100 195
Jack Henry & Associates, Inc. .................... 18,000 347
Jacobs Engineering Group, Inc. (a) ............... 1,700 100
Keane, Inc. (a) .................................. 12,300 154
Kelly Services, Inc., Class A .................... 5,900 179
KEMET Corp. (a) # ................................ 18,900 158
Kennametal, Inc. ................................. 8,300 394
Korn/Ferry International (a) ..................... 7,700 153
Krispy Kreme Doughnuts, Inc. (a) ................. 13,700 99
LaBranche & Co., Inc. (a) # ...................... 12,100 92
Lam Research Corp. (a) # ......................... 11,000 313
Lancaster Colony Corp. ........................... 6,800 301
Lattice Semiconductor Corp. (a) .................. 25,000 129
Laureate Education, Inc. (a) # ................... 200 9
Lee Enterprises, Inc. ............................ 9,800 420
Legg Mason, Inc. ................................. 31,100 3,176
Lennar Corp. ..................................... 41,000 2,759
Leucadia National Corp. # ........................ 5,350 212
Liberty Property Trust ........................... 19,000 853
LifePoint Hospitals, Inc. (a) # .................. 11,300 528
Lincare Holdings, Inc. (a) # ..................... 8,300 335
Longview Fibre Co. ............................... 11,100 248
LTX Corp. (a) # .................................. 12,300 81
Lubrizol Corp. ................................... 29,000 1,276
Lyondell Chemical Co. # .......................... 71,600 2,001
Macerich Co. ..................................... 8,900 625
Mack-Cali Realty Corp. ........................... 12,500 599
Macromedia, Inc. (a) ............................. 16,200 650
Macrovision Corp. (a) # .......................... 10,800 236
Manpower, Inc. ................................... 34,300 1,640
Martek Biosciences Corp. (a) ..................... 6,900 301
Martin Marietta Materials, Inc. .................. 16,700 1,214
McAfee, Inc. (a) ................................. 57,200 1,796
McDATA Corp., Class A (a) # ...................... 34,600 167
MDU Resources Group, Inc. ........................ 26,300 807
Media General, Inc., Class A ..................... 5,200 356
Mentor Graphics Corp. (a) # ...................... 16,600 155
Continued
Shares Value
------ --------
COMMON STOCKS, continued
Mercantile Bankshares Corp. ...................... 6,100 $ 339
Michaels Stores, Inc. ............................ 43,800 1,797
Micrel, Inc. (a) ................................. 16,900 204
Microchip Technology, Inc. ....................... 26,275 816
Millenium Pharmaceuticals, Inc. (a) .............. 3,700 38
Minerals Technologies, Inc. ...................... 4,500 280
Modine Manufacturing Co. ......................... 6,900 249
Mohawk Industries, Inc. (a) ...................... 6,200 544
MoneyGram International, Inc. .................... 19,300 406
MPS Group, Inc. (a) .............................. 22,900 272
Murphy Oil Corp. ................................. 49,600 2,631
National Fuel Gas Co. ............................ 16,900 514
New Plan Excel Realty Trust ...................... 22,900 627
New York Community Bancorp, Inc. ................. 20,966 385
Newfield Exploration Co. (a) ..................... 42,300 1,797
Newport Corp. (a) ................................ 9,500 130
Nieman Marcus Group, Inc. ........................ 10,700 1,054
Noble Energy, Inc. ............................... 19,100 1,576
Nordson Corp. .................................... 7,100 237
Northeast Utilities .............................. 27,900 602
NSTAR ............................................ 23,200 704
O'Reilly Automotive, Inc. (a) .................... 3,100 100
OGE Energy Corp. ................................. 19,800 602
Ohio Casualty Corp. .............................. 13,400 342
Old Republic International Corp. ................. 63,050 1,656
Olin Corp. ....................................... 15,200 279
Omnicare, Inc. ................................... 23,100 1,065
ONEOK, Inc. ...................................... 22,400 783
Outback Steakhouse, Inc. ......................... 1,600 75
Overseas Shipholding Group, Inc. ................. 15,400 956
Pacific Sunwear of California, Inc. (a) .......... 16,500 402
PacifiCare Health Systems, Inc. (a) .............. 27,700 2,112
Par Pharmaceutical Cos., Inc. (a) # .............. 7,400 173
Patterson Cos., Inc. (a) ......................... 17,200 767
Patterson-UTI Energy, Inc. ....................... 37,200 1,221
Payless ShoeSource, Inc. (a) # ................... 14,800 287
Peabody Energy Corp. ............................. 37,100 2,438
Pentair, Inc. .................................... 22,500 904
Pepco Holdings, Inc. ............................. 41,400 988
PepsiAmericas, Inc. .............................. 22,900 590
Perrigo Co. ...................................... 19,600 272
PETsMART, Inc. ................................... 11,900 354
Pier 1 Imports, Inc. ............................. 19,200 273
Pioneer Natural Resources Co. .................... 45,700 1,980
Plains Exploration & Production Co. (a) .......... 16,800 648
Plantronics, Inc. ................................ 20,600 704
Plexus Corp. (a) # ............................... 9,600 139
PMI Group, Inc. .................................. 20,500 839
PNM Resources, Inc. .............................. 15,100 444
Pogo Producing Co. ............................... 21,900 1,205
Polycom, Inc. (a) ................................ 43,000 713
Potlatch Corp. ................................... 6,400 370
Powerwave Technologies, Inc. (a) # ............... 22,700 260
Precision Castparts Corp. ........................ 21,900 1,970
Pride International, Inc. (a) .................... 56,400 1,468
Proliance International, Inc. (a) ................ 1,626 10
Continued
50
---------------------------------------------------
MID CAP FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------ --------
COMMON STOCKS, continued
Protective Life Corp. ............................ 25,600 $ 1,115
Protein Design Labs, Inc. (a) .................... 23,300 531
Puget Energy, Inc. ............................... 21,700 507
Quanta Services, Inc. (a) # ...................... 21,200 223
Questar Corp. # .................................. 18,700 1,311
Radian Group, Inc. ............................... 31,500 1,625
Raymond James Financial, Inc. .................... 14,650 437
Rayonier, Inc. # ................................. 11,199 639
Reader's Digest Assoc., Class A .................. 21,700 352
Regency Centers Corp. # .......................... 13,900 858
Regis Corp. ...................................... 9,900 413
Renal Care Group, Inc. (a) ....................... 15,100 709
Rent-A-Center, Inc. (a) .......................... 30,800 650
Republic Services, Inc. .......................... 44,700 1,620
Reynolds & Reynolds Co., Class A ................. 12,900 361
RF Micro Devices, Inc. (a) ....................... 41,600 253
Rollins, Inc. .................................... 10,800 226
Ross Stores, Inc. # .............................. 11,800 313
RPM International, Inc. .......................... 25,800 484
RSA Security, Inc. (a) # ......................... 15,100 196
Ruby Tuesday, Inc. ............................... 14,300 358
Ruddick Corp. .................................... 9,900 273
Ryland Group, Inc. ............................... 10,300 832
Saks, Inc. (a) ................................... 61,400 1,303
SanDisk Corp. (a) # .............................. 62,900 2,126
SCANA Corp. # .................................... 24,900 1,047
Scholastic Corp. (a) ............................. 7,900 292
SEI Investments Co. .............................. 18,200 704
Semtech Corp. (a) ................................ 16,500 303
Sensient Technologies Corp. ...................... 10,200 194
Sepracor, Inc. (a) # ............................. 13,400 701
Sequa Corp., Class A (a) ......................... 2,000 147
Sierra Pacific Resources (a) # ................... 25,600 332
Silicon Laboratories, Inc. (a) ................... 10,100 296
Smith International, Inc. ........................ 32,700 2,222
Smithfield Foods, Inc. (a) ....................... 43,200 1,128
Sonoco Products Co. .............................. 300 8
Sotheby's Holdings, Inc., Class A (a) ............ 10,300 155
SPX Corp. # ...................................... 3,500 171
StanCorp Financial Group, Inc. ................... 11,900 1,027
Steel Dynamics, Inc. ............................. 9,100 293
Steris Corp.(a) .................................. 15,000 408
Storage Technology Corp. (a) ..................... 39,600 1,455
SVB Financial Group (a) # ........................ 7,800 400
Swift Transportation Co., Inc. (a) ............... 13,800 303
Sybase, Inc. (a) ................................. 19,800 421
Synopsys, Inc. (a) ............................... 63,100 1,168
TCF Financial Corp. .............................. 27,600 758
Tech Data Corp. (a) .............................. 12,600 489
Techne Corp. (a) ................................. 8,500 417
Tecumseh Products Co., Class A ................... 4,000 120
Teleflex, Inc. ................................... 1,200 80
Telephone Data Systems, Inc. ..................... 10,500 418
Texas Regional Bancshares, Inc., Class A ......... 9,200 273
Thomas & Betts Corp. (a) ......................... 13,300 449
Tidewater, Inc. .................................. 26,700 1,078
Continued
Shares Value
--------- --------
COMMON STOCKS, continued
Timberland Co., Class A (a) ...................... 24,600 $ 821
Titan Corp. (a) .................................. 18,400 425
Toll Brothers, Inc. (a) .......................... 15,600 865
Tootsie Roll Industries, Inc. .................... 9,100 285
Transaction Systems Architects, Inc.,
Class A (a) .................................... 8,100 217
TreeHouse Foods, Inc. (a) ........................ 9,480 290
Triad Hospitals, Inc. (a) ........................ 17,500 869
Trinity Industries, Inc. # ....................... 9,400 348
TriQuint Semiconductor, Inc. (a) ................. 27,300 103
Tupperware Corp. # ............................... 12,400 264
Tyson Foods, Inc., Class A ....................... 34,000 634
United Dominion Realty Trust, Inc. ............... 30,200 769
United Rentals, Inc. (a) # ....................... 15,500 288
Unitrin, Inc. .................................... 800 43
Universal Corp. .................................. 5,600 267
Universal Health Services, Inc. # ................ 22,200 1,155
Urban Outfitters, Inc. (a) ....................... 4,300 261
UTStarcom, Inc. (a) .............................. 22,900 202
Valassis Communications, Inc. (a) ................ 11,300 447
Valspar Corp. .................................... 2,200 108
Varian Medical Systems, Inc. (a) ................. 44,400 1,743
Varian, Inc. (a) ................................. 7,600 285
VCA Antech, Inc. (a) # ........................... 16,500 392
Vectren Corp. .................................... 16,500 478
Vertex Pharmaceuticals, Inc. (a) # ............... 20,400 325
Vishay Intertechnology, Inc. (a) ................. 39,500 554
W.R. Berkley Corp. ............................... 42,175 1,579
Washington Post Co., Class B ..................... 1,500 1,333
Webster Financial Corp. .......................... 21,100 1,017
Weinharten Realty Investors ...................... 18,600 731
Werner Enterprises, Inc. ......................... 13,800 262
Westamerica Bankcorp. ............................ 7,400 405
Westar Energy, Inc. .............................. 18,700 455
Western Digital Corp. (a) ........................ 9,100 136
Western Gas Resources, Inc. ...................... 14,000 561
Westwood One, Inc. (a) ........................... 18,700 381
WGL Holdings, Inc. ............................... 10,600 365
Whole Foods Market, Inc. ......................... 9,400 1,283
Williams-Sonoma, Inc. (a) ........................ 10,700 473
Wilmington Trust Corp. ........................... 27,000 1,013
Wind River Systems, Inc. (a) ..................... 17,200 294
Wisconsin Energy Corp. ........................... 25,600 1,028
Worthington Industries, Inc. ..................... 17,300 306
WPS Resources Corp. # ............................ 8,100 468
Yellow Roadway Corp. (a) # ....................... 12,600 667
York International Corp. ......................... 9,000 385
Zebra Technologies Corp., Class A (a) ............ 2,650 103
--------
TOTAL COMMON STOCKS .............................. 243,104
--------
AFFILIATED SECURITIES (3.5%)
AmSouth Prime Money Market Fund .................. 8,826,717 8,827
AmSouth Treasury Reserve Money
Market Fund .................................... 4,122 4
--------
TOTAL AFFILIATED SECURITIES ...................... 8,831
--------
Continued
51
- ---------------------------------------------------
MID CAP FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
---------- --------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (6.1%)
BNY Institutional Cash Reserve Fund ......... 15,350,540 $ 15,350
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................ 15,350
--------
TOTAL INVESTMENTS
(Cost $224,681)^ -- 105.91% ............... 267,285
Liabilities in excess of other assets --
(5.9)% .................................... (14,909)
--------
NET ASSETS -- 100.0% ........................ $252,376
========
Futures Contracts
(Amounts in thousands, except number of contracts)
- -----------------------------------------------------------------------------
Notional Unrealized
Number Value at Appreciation
of Expiration 7/31/05 (Depreciation)
Contracts Description Date (USD) (USD)
- ----------- ----------------- ------------ ---------- ---------------
Long Futures Outstanding
------------------------
S&P MidCap 400 September,
25 Future .......... 2005 $9,033 $348
See notes to schedule of portfolio investments.
---------------------------------------------------
SMALL CAP FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- -----------
COMMON STOCKS (98.7%)
Alamosa Holdings, Inc. (a) # ........................ 228,900 $ 3,676
Allscripts Healthcare Solutions, Inc. (a) # ......... 215,400 3,655
American Medical Systems Holdings,
Inc. (a) # ........................................ 147,600 3,432
Ameristar Casinos, Inc. ............................. 99,200 2,910
ANSYS, Inc. (a) ..................................... 147,000 5,345
Applied Industrial Technology, Inc. ................. 84,500 3,019
Armor Holdings, Inc. (a) # .......................... 104,100 4,256
Aviall, Inc. (a) # .................................. 219,500 7,430
Black Hills Corp. ................................... 36,100 1,440
CACI International, Inc., Class A (a) ............... 63,600 4,184
Cal Dive International, Inc. (a) .................... 116,100 6,876
Centene Corp. (a) ................................... 40,600 1,190
Chattem, Inc. (a) # ................................. 87,100 3,968
Choice Hotels International, Inc. ................... 58,100 3,853
Coherent, Inc. (a) .................................. 134,500 4,578
CONMED Corp. (a) .................................... 61,500 1,852
CRA International, Inc. (a) ......................... 52,200 2,777
DJ Orthopedics, Inc. (a) ............................ 153,500 3,765
DRS Technologies, Inc. .............................. 116,900 6,079
Energen Corp. ....................................... 54,400 1,909
Energy Partners, Ltd. (a) # ......................... 112,600 2,980
Esterline Technologies Corp. (a) .................... 127,600 5,454
Euronet Worldwide, Inc. (a) # ....................... 155,800 4,583
Genesis HealthCare Corp. (a) # ...................... 101,600 4,569
Gold Kist, Inc. (a) ................................. 125,700 2,564
Haemonetics Corp. (a) ............................... 74,000 3,125
HealthExtras, Inc. (a) .............................. 189,100 3,761
Hibbett Sporting Goods, Inc. (a) .................... 104,400 4,179
Hologic, Inc. (a) ................................... 141,200 6,437
Hornbeck Offshore Services, Inc. (a) ................ 101,200 3,026
j2 Global Communications, Inc. (a) # ................ 122,900 4,930
Jupiter Media Corp. (a) ............................. 165,400 3,621
Kindred Healthcare, Inc. (a) # ...................... 59,400 2,182
Labor Ready, Inc. (a) ............................... 187,500 4,446
LCA-Vision, Inc. # .................................. 158,600 7,265
LifePoint Hospitals, Inc. (a) # ..................... 116,381 5,442
Matria Healthcare, Inc. (a) # ....................... 69,700 2,463
Metris Companies, Inc. (a) .......................... 297,000 4,410
Moog, Inc., Class A (a) ............................. 83,500 2,636
National Financial Partners Corp. ................... 72,100 3,263
NETGEAR, Inc. (a) # ................................. 298,500 6,182
Ohio Casualty Corp. ................................. 172,100 4,397
Option Care, Inc. # ................................. 117,450 1,647
Overseas Shipholding Group, Inc. .................... 13,700 850
Philadelphia Consolidated Holding Corp. (a) ......... 66,100 5,488
Phillips-Van Heusen Corp. ........................... 44,600 1,512
Premiere Global Services, Inc. (a) .................. 289,900 2,963
ProAssurance Corp. (a) .............................. 124,100 5,331
Progress Software Corp. (a) ......................... 101,300 3,149
Psychiatric Solutions, Inc. (a) # ................... 80,700 3,888
Remington Oil & Gas Corp. (a) ....................... 99,900 3,937
Safety Insurance Group, Inc. ........................ 75,800 2,743
Scholastic Corp. (a) ................................ 41,700 1,542
Selective Insurance Group, Inc. ..................... 122,000 6,074
Continued
52
- ---------------------------------------------------
SMALL CAP FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
---------- --------
COMMON STOCKS, continued
Shaw Group, Inc. (a) ........................ 219,400 $ 4,195
Sierra Health Services, Inc. (a) # .......... 65,900 4,444
SS&C Technologies, Inc. ..................... 133,600 4,866
Stein Mart, Inc. ............................ 171,100 3,882
Superior Energy Services, Inc. (a) .......... 173,500 3,702
Techne Corp. (a) ............................ 63,600 3,121
Teledyne Technologies, Inc. (a) ............. 202,500 7,684
The Men's Wearhouse, Inc. (a) # ............. 161,550 5,809
The Pantry, Inc. (a) # ...................... 156,300 6,662
Todco (a) ................................... 133,700 4,106
United Surgical Partners International,
Inc. (a) .................................. 30,300 1,091
Vail Resorts, Inc. (a) ...................... 94,300 2,679
Varian Semiconductor Equipment
Associates, Inc. (a) ...................... 65,300 2,711
Websense, Inc. (a) .......................... 77,400 3,858
Witness Systems, Inc. (a) # ................. 182,700 3,563
--------
TOTAL COMMON STOCKS ......................... 269,606
--------
AFFILIATED SECURITIES (1.2%)
AmSouth Prime Money Market Fund ............. 3,382,934 3,383
--------
TOTAL AFFILIATED SECURITIES ................. 3,383
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (16.0%)
BNY Institutional Cash Reserve Fund ......... 43,604,259 43,604
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................ 43,604
--------
TOTAL INVESTMENTS
(Cost $269,962)^ -- 115.9% ................ 316,593
Liabilities in excess of Other assets --
(15.9)% ................................... (43,403)
--------
NET ASSETS -- 100.0% ........................ $273,190
========
See notes to schedule of portfolio investments.
---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS (99.9%)
Australia (4.7%)
Amcor Ltd. .......................................... 62,042 $ 328
AMP Ltd. ............................................ 497,366 2,543
Ansell Ltd. ......................................... 42,951 332
APN News & Media, Ltd. .............................. 8,265 33
AXA Asia Pacific Holdings, Ltd. ..................... 452,900 1,532
BlueScope Steel, Ltd. ............................... 210,920 1,490
Boral Ltd. .......................................... 184,183 934
Brambles Industries, Ltd. # ......................... 14,503 91
Challenger Financial Services Grp, LTD. (a) ......... 14,739 37
Coca-Cola Amatil Ltd. ............................... 33,329 197
Commonwealth Bank of Australia ...................... 22,928 676
CSR Ltd. ............................................ 240,599 475
Futuris Corporation, Ltd. ........................... 20,000 32
Insurance Australia Group, Ltd. ..................... 377,957 1,741
Lend Lease Corp., Ltd. .............................. 98,363 971
Lion Nathan, Ltd. ................................... 142,100 793
Mayne Group, Ltd. ................................... 13,674 50
Mirvac Group ........................................ 167,714 483
National Australia Bank, Ltd. ....................... 38,339 906
OneSteel Ltd. ....................................... 136,740 281
Origin Energy, Ltd. ................................. 174,099 961
PaperlinX Ltd. ...................................... 124,518 330
Publishing & Broadcasting, Ltd. ..................... 50,461 587
Qantas Airways, Ltd. # .............................. 472,793 1,185
QBE Insurance Group, Ltd. ........................... 171,596 2,187
Rinker Group, Ltd. .................................. 240,599 2,746
Santos Ltd. ......................................... 155,030 1,261
Seven Network, Ltd. ................................. 32,539 187
--------
23,369
--------
Austria (0.5%)
Bank Austria Creditanstalt .......................... 4,361 463
Boehler-Uddeholm AG ................................. 957 145
OMV AG .............................................. 5,958 277
Voestalpine AG # .................................... 13,266 982
Wienerberger AG ..................................... 7,637 354
--------
2,221
--------
Belgium (2.3%)
Ackermans & van Haaren NV ........................... 803 35
Banque Nationale de Belgique ........................ 102 429
Bekaert NV .......................................... 5,300 416
Cofinimmo ........................................... 212 33
Cumerio ............................................. 3,045 51
Cumerio -- Strip Vvpr (a) ........................... 145 --**
Delhaize Group ...................................... 35,743 2,197
Dexia ............................................... 13,573 306
Fortis .............................................. 28,950 845
InBev NV ............................................ 68,447 2,543
KBC GROEP NV ........................................ 38,475 3,064
S.A. D' Ieteren NV .................................. 132 29
Tessenderlo Chemie NV ............................... 6,968 241
Umicore ............................................. 11,132 984
Umicore Strip (a) ................................... 145 --**
--------
11,173
--------
Continued
53
- ---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Denmark (1.4%)
Carlsberg A/S, B Shares ........................ 7,737 $ 414
Codan A/S ...................................... 7,490 389
Danisco A/S .................................... 8,830 583
Danske Bank A/S ................................ 74,400 2,319
Jyske Bank A/S (a) ............................. 11,120 522
Rockwool International A/S, B Shares ........... 2,200 162
Sydbank A/S (a) ................................ 7,800 188
TDC A/S ........................................ 45,860 2,060
Vestas Wind Systems A/S (a) .................... 8,000 147
--------
6,784
--------
Finland (2.2%)
Fortum Oyj ..................................... 261,437 4,777
Kemira GrowHow Oyj ............................. 11,007 96
Kemira Oyj ..................................... 38,200 506
Kesko Oyj, B Shares ............................ 43,100 1,172
M-real Oyj, Class B ............................ 130,880 732
Metso Oyj # .................................... 24,388 587
OKO Bank, A Shares ............................. 3,200 54
Outokumpu Oyj .................................. 62,850 865
Rautaruukki OY ................................. 5,400 93
Stora Enso Oyj, R Shares ....................... 59,900 793
UPM-Kymmene Oyj ................................ 51,400 995
Wartsila Oyj, B Shares ......................... 3,900 120
--------
10,790
--------
France (11.8%)
Air France-KLM # ............................... 39,577 648
Alstom (a) ..................................... 141,022 144
Assurances Generales de France # ............... 27,516 2,313
Axa # .......................................... 252,023 6,880
BNP Paribas SA # ............................... 149,468 10,784
Bongrain SA .................................... 1,900 115
Business Objects SA (a) # ...................... 8,941 296
Cap Gemini SA (a) .............................. 19,882 667
Casino Guichard-Perrachon SA ................... 797 56
Ciments Francais SA # .......................... 4,284 431
Club Mediterranee SA (a) ....................... 2,497 119
CNP Assurances ................................. 5,204 349
Compagnie de Saint-Gobain ...................... 53,825 3,229
Compagnie Gernerale des Etablissements ......... 18,496 1,139
Michelin, B Shares .............................
Credit Agricole SA # ........................... 43,900 1,201
Eiffage SA ..................................... 4,800 441
Esso S.A.F. .................................... 1,000 194
Euler & Hermes SA .............................. 4,260 351
Eurazeo ........................................ 3,102 301
Faurecia # ..................................... 3,872 277
Financiere Marc de Lacharriere ................. 1,986 111
Havas SA # ..................................... 37,200 199
Imerys SA # .................................... 6,400 471
Lafarge SA ..................................... 20,934 1,980
Lagardere S.C.A. ............................... 15,000 1,082
Nexans SA ...................................... 2,982 133
Pinault-Printemps Redoute SA # ................. 16,946 1,709
PSA Peugeot Citroen ............................ 32,238 2,070
Continued
Shares Value
------- --------
COMMON STOCKS, continued
France, continued
Remy Cointreau SA .............................. 7,035 $ 310
Renault SA ..................................... 39,377 3,604
Schneider Electric SA .......................... 29,712 2,330
SCOR ........................................... 105,685 221
Societe BIC SA ................................. 7,062 397
Societe Generale ............................... 14,186 1,548
Sodexho Alliance SA ............................ 17,516 624
Suez SA ........................................ 118,275 3,247
Technip SA ..................................... 12,248 655
Thomson ........................................ 36,199 818
Unibail ........................................ 4,164 576
Valeo SA ....................................... 9,596 406
Vallourec SA ................................... 1,200 436
Vivendi Universal SA ........................... 145,652 4,627
Wendel Investissement .......................... 6,000 522
--------
58,011
--------
Germany (8.4%)
Aareal Bank AG (a) ............................. 3,957 139
Allianz AG ..................................... 2,993 380
AMG Generali Holding AG ........................ 10,429 884
Bayer AG ....................................... 81,798 2,918
Bayerische Hypo-und Vereinsbank AG (a) ......... 96,485 2,526
Bayerische Motoren Werke AG .................... 16,305 763
Bilfinger Berger AG ............................ 4,109 212
Commerzbank AG ................................. 85,783 1,914
DaimlerChrysler AG ............................. 175,245 8,487
Deutsche Bank AG ............................... 67,307 5,818
Deutsche Lufthansa AG .......................... 37,015 463
E.On AG ........................................ 39,934 3,690
Fraport AG ..................................... 10,784 489
Fresenius Medical Care AG # .................... 1,176 102
HeidelbergCement AG ............................ 15,666 1,131
Heidelberger Druckmaschinen AG # ............... 2,477 83
Hochtief AG .................................... 7,839 298
Hypo Real Estate Holding AG .................... 11,475 467
Infineon Technologies AG (a) ................... 89,983 884
Lanxess AG (a) # ............................... 8,179 237
Linde AG ....................................... 11,568 814
MAN AG ......................................... 12,850 598
MG Technologies AG (a) ......................... 27,906 379
Muenchener Rueckversicherungs-
Gesellschaft AG .............................. 22,136 2,569
Salzgitter AG .................................. 6,052 192
Suedzucker AG # ................................ 3,767 79
ThyssenKrupp AG ................................ 84,927 1,594
TUI AG # ....................................... 24,187 631
Volkswagen AG .................................. 46,527 2,517
--------
41,258
--------
Greece (0.5%)
Agricultural Bank of Greece (a) ................ 30,900 145
Bank of Greece ................................. 4,013 455
Emporiki Bannk of Greece SA (a) ................ 26,088 834
Hellenic Petroleum S.A. ........................ 37,800 428
Continued
54
---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Greece, continued
Hellenic Telecommunications
Organization SA (a) .................................. 20,900 $ 425
Intracom SA ............................................ 27,100 142
--------
2,429
--------
Hong Kong (3.5%)
Cheung Kong Holdings, Ltd. ............................. 277,000 2,978
China Unicom, Ltd. ..................................... 578,000 517
Citic Pacific, Ltd. .................................... 37,000 108
Hang Lung Group, Ltd. .................................. 194,000 386
Henderson Land Development Co., Ltd. ................... 265,000 1,336
Hongkong and Shanghai Hotels, Ltd. ..................... 67,500 79
Hopewell Holdings, Ltd. ................................ 84,000 217
Hutchison Whampoa, Ltd. # .............................. 392,000 3,817
Hysan Development Co., Ltd. ............................ 181,485 427
Kerry Properties, Ltd. # ............................... 176,182 455
MTR Corp., Ltd. ........................................ 251,471 520
New Asia Realty & Trust Co., Ltd. ...................... 45,000 33
New World Development Co., Ltd. ........................ 513,928 684
Shagri-La Asia, Ltd. # ................................. 398,108 702
Shanghai Industrial Holdings, Ltd. ..................... 13,000 27
Sino Land Co., Ltd. # .................................. 703,962 829
Sun Hung Kai Properties, Ltd. .......................... 84,000 864
Swire Pacific, Ltd., A Shares .......................... 144,000 1,374
Wharf Ltd. # ........................................... 335,000 1,255
Wheelock & Co., Ltd. ................................... 358,000 628
--------
17,236
--------
Ireland (1.5%)
Allied Irish Banks PLC ................................. 29,670 647
Bank of Ireland ........................................ 31,218 519
CRH PLC ................................................ 176,727 5,046
Irish Life & Permanent PLC ............................. 76,984 1,391
--------
7,603
--------
Italy (3.2%)
Alitalia S.p.A. (a) # .................................. 495,790 145
Banca Antonveneta S.p.A. ............................... 3,170 97
Banca Intesa S.p.A. .................................... 672,950 3,267
Banca Monte dei Paschi di Siena S.p.A. # ............... 313,406 1,187
Banca Nazionale del Lavoro S.p.A. (a) # ................ 457,031 1,478
Banca Popolare de Lodi S.c.r.l. ........................ 43,973 443
Banca Popolare di Milano S.c.r.l. ...................... 80,000 788
Benetton Group S.p.A. # ................................ 23,239 230
Beni Stabili S.p.A. .................................... 355,000 394
Buzzi Unicem S.p.A. .................................... 20,000 297
Caltagirone Editore S.p.A. ............................. 13,962 126
Capitalia S.p.A. # ..................................... 355,000 2,062
Edison S.p.A. (a) ...................................... 356,434 797
ERG S.p.A. ............................................. 6,174 131
Fiat S.p.A. (a) # ...................................... 102,453 867
Fondiaria-SAI S.p.A. ................................... 16,477 467
Ifil S.p.A. ............................................ 104,000 467
Italcementi S.p.A. ..................................... 37,000 599
Italmobiliare S.p.A. ................................... 2,839 196
Pirelli & C. S.p.A. .................................... 533,332 563
Continued
Shares Value
------- --------
COMMON STOCKS, continued
Italy, continued
SanPaolo IMI S.p.A. .................................... 48,159 $ 696
Societa' Cattolica di Assicurazioni S.c.r.l. # ......... 9,900 460
Tiscali S.p.A. (a) # ................................... 58,272 178
--------
15,935
--------
Japan (16.9%)
77th Bank, Ltd. ........................................ 57,000 336
Acom Co., Ltd. ......................................... 7,040 439
Aichi Steel Corp. # .................................... 29,000 161
Aioi Insurance Co., Ltd. ............................... 110,000 521
Aisin Seiki Co., Ltd. .................................. 42,200 986
Akita Bank, Ltd. ....................................... 29,000 124
Amada Co., Ltd. ........................................ 59,000 420
Aoyama Trading Co., Ltd. ............................... 9,800 248
Asahi Breweries, Ltd. .................................. 15,400 173
Asahi National Broadcasting Co., Ltd. .................. 146 307
Asatsu-dk, Inc. ........................................ 6,800 191
Autobacs Seven Co., Ltd. # ............................. 4,900 167
Awa Bank, Ltd. ......................................... 31,000 179
Bank of Fukuoka, Ltd. # ................................ 92,000 528
Bank of Kyoto, Ltd. # .................................. 49,000 403
Bank of Nagoya, Ltd. ................................... 26,000 150
Chiba Bank, Ltd. ....................................... 123,000 792
Chudenko Corp. ......................................... 8,500 127
Chugoku Bank, Ltd. ..................................... 35,000 399
Citizen Watch Co., Ltd. # .............................. 41,000 362
Coca-Cola West Japan Co., Ltd. ......................... 15,300 329
COMSYS Holdings Corp. .................................. 21,000 199
Cosmo Oil Co., Ltd. .................................... 83,000 368
Dai Nippon Printing Co., Ltd. .......................... 63,000 985
Daicel Chemical Industries, Ltd. ....................... 48,000 268
Daihatsu Motor Co., Ltd. ............................... 63,000 539
Dainippon Ink & Chemicals, Inc. ........................ 51,000 155
Dainippon Pharmaceutical Co., Ltd. ..................... 24,000 253
Daishi Bank, Ltd. ...................................... 50,000 215
Daiwa House Industry Co., Ltd. ......................... 80,000 895
Denso Corp. ............................................ 114,300 2,758
Ebara Corp. ............................................ 40,000 160
Ezaki Glico Co., Ltd. .................................. 19,000 154
Fuji Electric Co., Ltd. ................................ 111,000 405
Fuji Fire & Marine Insurance Co., Ltd. ................. 71,000 212
Fuji Heavy Industries, Ltd. # .......................... 116,000 497
Fuji Oil Co., Ltd. ..................................... 8,200 81
Fuji Photo Film Co., Ltd. .............................. 69,000 2,143
Fujikura Ltd. .......................................... 57,000 285
Fukui Bank, Ltd. ....................................... 36,000 138
Fukuyama Transporting Co., Ltd. ........................ 36,000 138
Furukawa Electric Co., Ltd. (a) ........................ 47,000 206
Futaba Industrial Co., Ltd. ............................ 10,000 195
Glory Ltd. # ........................................... 11,000 175
Gunma Bank, Ltd. ....................................... 74,000 442
Gunze Ltd. ............................................. 31,000 148
Hachijuni Bank, Ltd. ................................... 79,000 509
Hanshin Electric Railway Co., Ltd. ..................... 50,000 198
Heiwa Corp. ............................................ 10,400 147
Continued
55
- ---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Japan, continued
Higo Bank, Ltd. .............................. 37,000 $ 250
Hitachi Cable, Ltd. .......................... 55,000 226
Hitachi Ltd. ................................. 501,000 3,042
Hitachi Maxell, Ltd. ......................... 13,000 154
Hitachi Metals, Ltd. ......................... 15,000 111
Hitachi Software Engineering Co., Ltd. ....... 1,900 31
Hokkoku Bank, Ltd. ........................... 52,000 228
Hokuetsu Paper Mills, Ltd. ................... 23,000 124
House Foods Corp. ............................ 16,500 242
Hyakugo Bank, Ltd. ........................... 33,000 195
Hyakujushi Bank, Ltd. ........................ 47,000 253
Ishikawajima-Harima Heavy Industries
Co., Ltd. (a) .............................. 189,000 287
Itoham Foods, Inc. ........................... 31,000 131
Iyo Bank, Ltd. ............................... 47,000 388
Joyo Bank, Ltd. .............................. 126,000 611
JS Group Corp. ............................... 27,000 439
Juroku Bank, Ltd. ............................ 54,000 307
Kagoshima Bank, Ltd. ......................... 30,000 213
Kamigumi Co., Ltd. ........................... 40,000 304
Kandenko Co., Ltd ............................ 30,000 190
Kansai Paint Co., Ltd. ....................... 14,000 93
Katokichi Co., Ltd. .......................... 23,700 161
Kawasaki Heavy Industries, Ltd. .............. 203,000 403
Kikkoman Corp. ............................... 29,000 262
Kinden Corp. ................................. 35,000 257
Kirin Brewery Co., Ltd. ...................... 143,000 1,335
Kissei Pharmaceutical Co., Ltd. # ............ 9,000 170
Kobe Steel, Ltd. ............................. 216,000 443
Koito Manufacturing Co., Ltd. ................ 8,000 89
Kokuyo Co., Ltd. ............................. 18,700 250
Komatsu Ltd. ................................. 70,000 657
Komori Corp. ................................. 11,000 171
Kuraray Co., Ltd. ............................ 55,000 492
Kureha Chemical Industry Co., Ltd. ........... 28,000 119
Kyocera Corp. ................................ 3,900 275
Kyorin Pharmaceutical Co., Ltd. .............. 12,000 153
Makita Corp. ................................. 11,000 231
Marubeni Corp. ............................... 123,000 455
Marui Co., Ltd. .............................. 56,000 819
Maruichi Steel Tube, Ltd. # .................. 13,000 286
Matsushita Electric Industrial Co., Ltd. ..... 365,000 5,914
Matsushita Electric Works, Ltd. .............. 36,000 302
Meiji Seika Kaisha, Ltd. ..................... 57,000 288
Michinoku Bank, Ltd. ......................... 20,000 94
Millea Holdings, Inc. ........................ 207 2,707
Mitsubishi Gas Chemical Co., Inc. ............ 72,000 378
Mitsubishi Heavy Industries, Ltd. ............ 502,000 1,259
Mitsubishi Logistics Corp. ................... 25,000 257
Mitsubishi Materials Corp. # ................. 165,000 408
Mitsubishi Securities Co., Ltd. # ............ 47,000 398
Mitsubishi Tokyo Financial Group, Inc. ....... 297 2,476
Mitsui Engineering & Shipbuilding
Co., Ltd. .................................. 123,000 253
Mitsui Sumitomo Insurance Co., Ltd. .......... 193,000 1,712
Continued
Shares Value
------- --------
COMMON STOCKS, continued
Japan, continued
Mitsumi Electric Co., Ltd. # ................. 10,600 $ 107
Musashino Bank, Ltd. ......................... 4,700 203
Nagase & Co., Ltd. ........................... 20,000 202
Nanto Bank, Ltd. ............................. 36,000 185
NGK Insulators, Ltd. ......................... 23,000 232
NGK Spark Plug Co., Ltd. ..................... 33,000 438
Nichicon Corp. ............................... 10,700 140
Nichirei Corp. ............................... 46,000 183
Nihon Unisys, Ltd. ........................... 16,000 159
Nikko Cordial Corp. .......................... 152,000 649
Nippon Kayaku Co., Ltd. ...................... 26,000 175
Nippon Meat Packers, Inc. .................... 33,000 376
Nippon Oil Corp. ............................. 221,000 1,508
Nippon Paint Co., Ltd. ....................... 38,000 138
Nippon Sheet Glass Co., Ltd. ................. 66,000 272
Nippon Shinpan Co., Ltd. ..................... 44,000 272
Nippon Shokubai Co., Ltd. .................... 25,000 204
Nippon Television Network Corp. .............. 1,360 185
Nishimatsu Construction Co., Ltd. ............ 36,000 129
Nissay Dowa General Insurance Co., Ltd. ...... 61,000 303
Nisshin Seifun Group, Inc. ................... 35,000 368
Nisshin Steel Co., Ltd. ...................... 145,000 357
Nisshinbo Industries, Inc. ................... 28,000 229
NSK Ltd. ..................................... 80,000 421
Obayashi Corp. ............................... 105,000 587
Okumura Corp. ................................ 33,000 182
Onward Kashiyama Co., Ltd. ................... 25,000 338
PanaHome Corp. # ............................. 24,000 126
Promise Co., Ltd. ............................ 19,500 1,184
Q.P. Corp. ................................... 23,100 190
Rengo Co., Ltd. .............................. 35,000 182
Resona Holdings, Inc. (a) .................... 822,000 1,441
San-in Godo Bank, Ltd. ....................... 23,000 213
Sanwa Shutter Corp. .......................... 18,000 104
Sanyo Electric Co., Ltd. # ................... 148,000 364
Sanyo Shinpan Finance Co., Ltd. .............. 5,000 351
Sapporo Hokuyo Holdings, Inc. ................ 48 362
Sapporo Holdings, Ltd. # ..................... 22,000 97
Seino Transportation Co., Ltd. ............... 26,000 231
Sekisui Chemical Co., Ltd. ................... 78,000 503
Sekisui House, Ltd. # ........................ 103,000 1,037
Shiga Bank, Ltd. ............................. 39,000 225
Shimachu Co., Ltd. ........................... 6,700 165
Shinko Securities Co., Ltd. .................. 107,000 326
Shizuoka Bank, Ltd. .......................... 109,000 917
Shohkoh Fund & Co., Ltd. ..................... 1,690 381
Sompo Japan Insurance, Inc. .................. 35,000 332
Sumitomo Bakelite Co., Ltd. .................. 24,000 148
Sumitomo Corp. ............................... 107,000 900
Sumitomo Electric Industries, Ltd. ........... 109,000 1,220
Sumitomo Forestry Co., Ltd. .................. 23,000 212
Sumitomo Metal Mining Co., Ltd. .............. 47,000 323
Sumitomo Osaka Cement Co., Ltd. .............. 62,000 162
Sumitomo Realty & Development Co., Ltd........ 24,000 264
Sumitomo Rubber Industries, Ltd. ............. 17,000 171
Continued
56
---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Japan, continued
Sumitomo Trust & Banking Co., Ltd. .............. 121,000 $ 744
Suzuken Co., Ltd. ............................... 6,000 155
Taiheiyo Cement Corp. ........................... 138,000 399
Taiyo Yuden Co., Ltd. ........................... 16,000 180
Takara Standard Co., Ltd. ....................... 22,000 139
Takashimaya Co., Ltd. # ......................... 44,000 426
Takefuji Corp. .................................. 17,570 1,134
TDK Corp. ....................................... 2,600 178
Teijin Ltd. ..................................... 135,000 615
Teikoku Oil Co., Ltd. ........................... 44,000 332
Toda Corp. ...................................... 47,000 205
Toho Bank, Ltd. ................................. 33,000 134
Tokuyama Corp. .................................. 19,000 152
Tokyo Broadcasting System, Inc. ................. 26,000 445
Tokyo Steel Manufacturing Co., Ltd. # ........... 12,000 151
Tokyo Style Co., Ltd. ........................... 13,000 133
Tokyo Tatemono Co., Ltd. ........................ 12,000 79
Toppan Printing Co., Ltd. ....................... 102,000 994
Toray Industries, Inc. .......................... 116,000 541
Toshiba TEC Corp. ............................... 42,000 182
Toyo Ink Manufacturing Co., Ltd. ................ 40,000 161
Toyo Seikan Kaisha, Ltd. ........................ 31,000 477
Toyota Auto Body Co., Ltd. ...................... 12,800 230
Toyota Industries Corp. ......................... 45,700 1,302
UNY Co., Ltd. ................................... 27,000 286
Wacoal Corp. # .................................. 19,000 235
Yamaguchi Bank, Ltd. ............................ 29,000 312
Yamaha Corp. .................................... 16,300 263
Yamanashi Chuo Bank, Ltd. ....................... 28,000 161
Yamazaki Baking Co., Ltd. ....................... 29,000 239
Yokohama Rubber Co., Ltd. ....................... 45,000 199
--------
83,359
--------
Netherlands (6.4%)
ABN Amro Holding NV # ........................... 102,573 2,553
Aegon NV ........................................ 270,719 3,873
AM NV ........................................... 13,643 163
Buhrmann NV ..................................... 21,050 238
DSM NV .......................................... 19,352 1,471
European Aeronautic Defence and
Space Co. ..................................... 43,010 1,441
Hagemeyer NV (a) # .............................. 75,855 190
Hunter Douglas NV (a) ........................... 9,233 467
IHC Caland NV ................................... 4,437 324
ING Groep N.V. # ................................ 318,134 9,617
Koninklijke (Royal) P&O Nedlloyd NV ............. 2,900 199
Koninklijke Ahold NV (a) ........................ 178,587 1,568
Koninklijke KPN NV .............................. 41,205 358
Koninklijke Numico NV (a) ....................... 18,747 791
Koninklijke Philips Electronics NV .............. 225,115 6,104
Koninklijke Vopak NV ............................ 9,588 257
Nutreco Holding NV .............................. 5,436 236
NV Holdingsmaatschappij De Telegraaf ............ 3,200 70
Oce NV .......................................... 13,438 197
Vedior NV ....................................... 13,287 200
Continued
Shares Value
------- --------
COMMON STOCKS, continued
Netherlands, continued
Versatel Telecom International NV (a) # ......... 74,287 $ 197
VNU NV .......................................... 42,399 1,215
--------
31,729
--------
New Zealand (0.2%)
Auckland International Airport, Ltd. ............ 271,480 432
Carter Holt Harvey, Ltd. ........................ 237,750 397
Fletcher Building, Ltd. ......................... 35,323 175
--------
1,004
--------
Norway (1.2%)
Aker Kvaerner ASA (a) ........................... 7,361 358
Aker Yards AS # ................................. 4,538 182
DnB Holding ASA ................................. 71,000 741
Fred Olsen Energy ASA* (a) ...................... 1,000 28
Norsk Hydro ASA ................................. 30,280 2,863
Norske Skogindustrier ASA ....................... 47,500 833
Storebrand ASA .................................. 74,200 735
--------
5,740
--------
Portugal (0.3%)
Banco BPI SA .................................... 14,440 58
Banco Comercial Portugues, S.A.
(BCP) R Shares ................................ 95,606 245
Banco Espirito Santo SA ......................... 3,990 61
Portugal Telecom, SGPS SA # ..................... 110,300 1,048
--------
1,412
--------
Singapore (0.8%)
DBS Group Holdings, Ltd. # ...................... 102,000 983
Fraser & Neave, Ltd. ............................ 22,600 222
Oversea-Chinese Banking Corp., Ltd. ............. 92,400 715
SembCorp Industries, Ltd. ....................... 47,940 79
Singapore Airlines, Ltd. ........................ 119,000 849
Singapore Land, Ltd. ............................ 20,000 70
United Overseas Bank, Ltd. ...................... 94,000 853
United Overseas Land, Ltd. ...................... 42,400 60
--------
3,831
--------
Spain (4.7%)
Acciona SA ...................................... 3,705 381
Acerinox SA ..................................... 28,744 408
Banco Bilbao Vizcaya Argentaria SA .............. 99,000 1,666
Banco de Andalucia SA ........................... 900 77
Banco de Sabadell SA ............................ 18,580 474
Banco Pastor SA ................................. 2,940 124
Banco Santander Central Hispano SA # ............ 721,018 8,907
Cementos Portland SA ............................ 3,328 274
Corporacion Mapfre SA ........................... 21,977 367
Ebro Puleva SA # ................................ 15,256 266
Endesa SA # ..................................... 160,543 3,590
Gas Natural SGD, S.A. ........................... 5,739 171
Iberia Lineas Aereas de Espana SA ............... 116,152 357
Inmobiliaria Colonial SA ........................ 4,000 216
Inmobiliaria Urbis SA ........................... 13,781 272
Red Electrica de Espana ......................... 6,000 161
Repsol YPF SA # ................................. 171,003 4,776
Continued
57
- ---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- --------
COMMON STOCKS, continued
Spain, continued
Sociedad General de Aguas de
Barcelona SA .................................. 18,371 $ 410
Sol Melia SA .................................... 21,812 310
Vallehermoso SA ................................. 7,293 168
--------
23,375
--------
Sweden (3.1%)
Electrolux AB, B Shares ......................... 15,000 337
Fabege AB ....................................... 10,185 221
Gambro AB, A Shares ............................. 32,500 473
Gambro AB, B Shares ............................. 10,500 152
Holmen AB, B Shares # ........................... 9,900 276
Kinnevik Investment AB .......................... 24,150 222
NCC AB, B Shares ................................ 4,000 68
Nordea AB ....................................... 518,300 4,965
Skandia Forsakrings AB .......................... 108,400 614
Skandinaviska Enskilda Banken AB ................ 76,700 1,361
Skanska AB, B Shares ............................ 4,900 63
SSAB Svenskt Stal AB, A Shares .................. 9,400 238
SSAB, B Shares .................................. 4,000 96
Svenska Cellulosa AB, Class B ................... 26,100 883
TELE2 AB, B Shares .............................. 46,800 507
TeliaSonera AB .................................. 511,500 2,530
Trelleborg AB, B Shares ......................... 12,200 202
Volvo AB, A Shares .............................. 16,900 687
Volvo AB, A Shares .............................. 35,900 1,502
Wihlborgs Fastigheter AB (a) .................... 2,000 56
--------
15,453
--------
Switzerland (6.4%)
Baloise Holding, Class R ........................ 30,600 1,596
Bank Sarasin & Cie AG, B Shares ................. 90 164
Banque Cantonale Vaudoise ....................... 2,200 543
Berner Kantonalbank ............................. 2,119 324
Ciba Specialty Chemicals AG ..................... 18,300 1,094
Clariant AG (a) ................................. 47,100 653
Converium Holding AG (a) ........................ 7,200 65
Credit Suisse Group ............................. 114,862 4,801
Dottikon ES Holding AG (a) ...................... 57 11
Ems-Chemie Holding AG ........................... 1,150 101
Georg Fischer AG (a) ............................ 1,910 631
Givaudan SA ..................................... 200 120
Helvetia Patria Holding ......................... 2,786 496
Holcim Ltd. ..................................... 65,100 4,024
Julius Baer Holding, Ltd., B Shares (a) ......... 1,100 70
Luzerner Kantonalbank ........................... 2,393 449
PSP Swiss Property AG (a) ....................... 16,800 743
Rieter Holding AG ............................... 1,590 480
SIG Holding AG .................................. 3,000 696
Sika AG (a) ..................................... 380 251
St. Galler Kantonalbank ......................... 2,215 577
Swiss Life Holding (a) .......................... 12,920 1,820
Swiss Re ........................................ 27,936 1,777
Syngenta AG ..................................... 40,600 4,244
Unaxis Holding AG (a) ........................... 7,000 1,001
Valiant Holding (a) ............................. 4,300 370
Continued
Shares Value
--------- --------
COMMON STOCKS, continued
Switzerland, continued
Valora Holding AG ............................... 2,230 $ 467
Vontobel Holding AG ............................. 14,200 328
Zurich Financial Services AG .................... 20,500 3,637
--------
31,533
--------
United Kingdom (19.9%)
Amvescap PLC .................................... 128,900 928
Anglo American PLC .............................. 171,906 4,347
Arriva PLC ...................................... 48,410 479
Associated British Foods PLC .................... 166,073 2,502
Associated British Ports Holdings PLC ........... 71,400 587
Aviva PLC ....................................... 564,393 6,477
BAA PLC ......................................... 264,218 2,800
BAE Systems PLC ................................. 731,996 3,958
Barratt Developments PLC ........................ 57,000 723
BBA Group PLC ................................... 116,000 621
Bellway PLC ..................................... 12,000 181
Berkeley Group PLC (a) .......................... 35,610 560
Bovis Homes Group PLC ........................... 19,000 219
Bradford & Bingley PLC .......................... 74,000 437
Brambles Industries PLC ......................... 142,000 779
Britannic Group PLC ............................. 31,800 349
British Airways PLC (a) ......................... 298,000 1,453
British Land Co. PLC ............................ 136,012 2,006
Brixton PLC ..................................... 55,200 343
Cable & Wireless PLC ............................ 676,845 1,894
COLT Telecom Group PLC (a) ...................... 416,000 447
Corus Group PLC (a) ............................. 1,223,858 1,012
De Vere Group PLC ............................... 17,131 172
DS Smith PLC .................................... 78,167 219
easyJet PLC (a) ................................. 108,000 455
FKI PLC ......................................... 122,150 225
Friends Provident PLC ........................... 418,000 1,336
George Wimpey PLC ............................... 95,673 716
Great Portland Estates PLC ...................... 34,119 214
Greene King PLC ................................. 16,000 378
Hammerson PLC ................................... 76,100 1,147
Hanson PLC ...................................... 179,000 1,798
Henderson Group PLC (a) ......................... 195,500 225
Hilton Group PLC ................................ 460,446 2,345
Inchcape PLC .................................... 11,000 390
InterContinental Hotels Group PLC ............... 116,801 1,486
International Power PLC ......................... 410,172 1,527
ITV PLC ......................................... 625,987 1,319
J Sainsbury PLC ................................. 489,837 2,405
Kingfisher PLC .................................. 123,621 559
Land Securities Group PLC ....................... 19,091 467
Liberty International PLC ....................... 75,374 1,278
London Merchant Securities PLC .................. 51,163 203
Mersey Docks & Harbour Co. ...................... 16,401 279
Millennium & Copthorne Hotels PLC ............... 78,527 500
Mitchells & Butlers PLC ......................... 125,921 788
O2 PLC (a) ...................................... 2,392,000 5,857
Pearson PLC ..................................... 174,000 2,082
Continued
58
- ---------------------------------------------------
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
---------- ----------
COMMON STOCKS, continued
United Kingdom, continued
Peninsular & Oriental Steam Navigation Co. 162,000 $ 895
Persimmon PLC ................................ 54,001 759
Pilkington PLC ............................... 330,594 714
Premier Oil PLC (a) .......................... 17,081 217
Quintain Estates & Development PLC ........... 22,000 216
Rolls-Royce Group plc (a) .................... 466,575 2,741
Royal & Sun Alliance Insurance Group PLC 604,850 960
Schroders PLC ................................ 49,000 730
Scottish & Newcastle PLC ..................... 155,500 1,250
Scottish Power PLC ........................... 351,325 3,106
Shire Pharmaceuticals Group PLC .............. 100,389 1,156
Slough Estates PLC ........................... 114,800 1,077
Somerfield PLC ............................... 105,223 369
Stagecoach Group PLC ......................... 288,166 576
Stanley Leisure PLC .......................... 26,625 253
Tate & Lyle PLC .............................. 101,294 824
Taylor Woodrow PLC ........................... 138,496 825
Thus Group PLC (a) ........................... 236,007 70
Trinity Mirror PLC ........................... 80,510 865
Vodafone Group PLC ........................... 6,573,300 16,938
Westbury PLC ................................. 20,310 161
WH Smith Group PLC ........................... 8,967 59
WH Smith PLC, C Shares ....................... 62,000 60
Whitbread PLC ................................ 69,428 1,202
Wilson Bowden PLC ............................ 18,000 363
Wolverhampton & Dudley Breweries PLC ......... 15,306 307
Woolworths Group PLC ......................... 247,175 159
---------
98,324
---------
TOTAL COMMON STOCKS .......................... 492,569
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (9.6%)
BNY Institutional Cash Reserve Fund .......... 47,195,257 47,195
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ......................... 47,195
---------
TOTAL INVESTMENTS
(Cost $389,997)^ -- 109.5% ................. 539,764
Liabilities in excess of other assets --
(9.5)% ..................................... (46,404)
---------
NET ASSETS -- 100.0% ......................... $ 493,360
=========
See notes to schedule of portfolio investments.
---------------------------------------------------
BALANCED FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
---------- -------
COMMON STOCKS (60.4%)
3M Co. ...................................... 28,000 $ 2,100
Allergan, Inc. .............................. 26,000 2,324
American International Group, Inc. .......... 37,000 2,227
Amgen, Inc. (b) # ........................... 27,000 2,153
BP PLC -- ADR ............................... 34,000 2,240
Caremark Rx, Inc. (b) ....................... 50,000 2,229
ChevronTexaco Corp. ......................... 41,000 2,378
Cisco Systems, Inc. (b) ..................... 116,000 2,221
Constellation Energy Group .................. 38,000 2,288
Dell, Inc. (b) .............................. 55,000 2,226
Dow Chemical Co. ............................ 47,000 2,254
eBay, Inc. (b) .............................. 53,000 2,214
Eli Lilly & Co. ............................. 38,000 2,140
EMC Corp. (b) ............................... 151,000 2,067
Emerson Electric Co. ........................ 33,000 2,171
First Data Corp. ............................ 53,000 2,180
General Dynamics Corp. ...................... 21,000 2,419
General Electric Co. ........................ 62,000 2,139
Genuine Parts Co. ........................... 49,000 2,244
Golden West Financial Corp. ................. 34,000 2,214
Goldman Sachs Group, Inc. (The) ............. 22,000 2,365
Harley-Davidson, Inc. ....................... 45,500 2,420
Health Management Associates, Inc.,
Class A ................................... 87,000 2,071
Hewlett-Packard Co. ......................... 99,678 2,455
Ingersoll-Rand Co., Class A ................. 28,000 2,189
J.P. Morgan Chase & Co. ..................... 57,000 2,003
Johnson & Johnson ........................... 31,000 1,983
Kohl's Corp. (b) ............................ 37,000 2,085
Linear Technology Corp. ..................... 60,000 2,332
Lowe's Cos., Inc. ........................... 37,000 2,450
Medtronic, Inc. ............................. 41,000 2,212
Merrill Lynch & Co., Inc. ................... 39,000 2,292
MGIC Investment Corp. ....................... 36,000 2,469
Microsoft Corp. ............................. 85,000 2,177
Molson Coors Brewing Co., Class B # ......... 37,000 2,320
Paychex, Inc. ............................... 68,000 2,374
PepsiCo, Inc. ............................... 39,000 2,127
Procter & Gamble Co. ........................ 42,000 2,336
QUALCOMM, Inc. .............................. 60,000 2,369
SBC Communications, Inc. .................... 90,060 2,202
St. Paul Travelers Cos., Inc. ............... 59,000 2,597
Staples, Inc. ............................... 105,000 2,391
Starbucks Corp. (b) ......................... 40,000 2,102
Stryker Corp. ............................... 44,000 2,379
Sysco Corp. ................................. 59,000 2,128
Verizon Communications, Inc. ................ 60,000 2,054
Wachovia Corp. .............................. 43,000 2,166
Walgreen Co. ................................ 49,500 2,369
Washington Mutual, Inc. ..................... 52,000 2,209
XL Capital Ltd., Class A .................... 30,000 2,155
-------
TOTAL COMMON STOCKS ......................... 112,209
-------
Continued
59
- ---------------------------------------------------
BALANCED FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- --------
CORPORATE BONDS (15.7%)
Alabama Power Co., 3.50%, 11/15/07 ............... $ 500 $ 490
Alcoa, Inc., 7.38%, 8/1/10 ....................... 900 1,006
AOL Time Warner, Inc., 6.88%, 5/1/12 ............. 500 556
Berkshire Hathaway, Inc.,
3.38%, 10/15/08 ................................ 1,000 962
Black & Decker Corp., 4.75%, 11/1/14 ............. 500 484
Bottling Group LLC, 2.45%, 10/16/06 # ............ 1,000 978
Branch Banking & Trust, 4.88%, 1/15/13 ........... 500 502
Caterpillar Financial Services Corp.,
2.50%, 10/3/06, MTN ............................ 1,000 979
Comcast Cable Communication, Inc.,
6.75%, 1/30/11 ................................. 500 544
Conoco, Inc., 6.35%, 4/15/09 ..................... 1,500 1,595
DaimlerChrysler NA Holding Corp.,
6.50%, 11/15/13 # .............................. 1,000 1,078
Devon Financial Corp., ULC,
6.88%, 9/30/11 ................................. 500 552
Diageo Capital PLC, 3.50%, 11/19/07 .............. 1,000 980
Duke Energy Corp., 6.25%, 1/15/12 ................ 500 536
General Dynamics Corp., 4.50%, 8/15/10 ........... 500 499
General Electric Co., 5.00%, 2/1/13 .............. 1,500 1,518
Honeywell, Inc., 7.00%, 3/15/07 .................. 320 333
Hormel Foods Corp., 6.63%, 6/1/11 ................ 450 494
IBM Corp., 7.50%, 6/15/13 ........................ 1,000 1,169
International Paper Co., 5.30%, 4/1/15 ........... 500 493
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08 .................................. 1,000 968
McDonald's Corp., 5.75%, 3/1/12 .................. 700 738
Northern Trust Co., 7.10%, 8/1/09 ................ 1,000 1,086
Protective Life Secured Trust,
4.00%, 10/7/09, MTN ............................ 500 489
Prudential Funding LLC,
6.60%, 5/15/08, (c) ............................ 2,000 2,114
Southwest Airlines CO., 5.25%, 10/1/14 ........... 1,000 986
St. Paul Cos., Inc., 5.75%, 3/15/07 .............. 750 761
SunTrust Banks, Inc., 7.38%, 7/1/06 .............. 1,000 1,023
Target Corp., 5.88%, 3/1/12 ...................... 500 533
Unilever Capital Corp., 6.88%, 11/1/05 ........... 2,000 2,016
Unilever Capital Corp., 7.13%, 11/1/10 ........... 300 333
Union Pacific Corp., 5.75%, 10/15/07 ............. 400 410
Unitedhealth Group, Inc., 5.00%, 8/15/14 ......... 500 505
Wachovia Corp., 6.63%, 11/15/06 # ................ 1,475 1,515
--------
TOTAL CORPORATE BONDS ............................ 29,225
--------
U.S. TREASURY BONDS (7.0%)
7.50%, 11/15/16 # ................................ 1,300 1,658
7.25%, 8/15/22 # ................................. 1,000 1,318
6.25%, 8/15/23 # ................................. 7,425 8,953
5.50%, 8/15/28 # ................................. 1,000 1,136
--------
TOTAL U.S. TREASURY BONDS ........................ 13,065
--------
Continued
Shares or
Principal
Amount Value
----------- --------
U.S. GOVERNMENT AGENCIES (8.3%)
5.83%, 2/9/06 .................................... $ 2,000 $ 2,020
6.21%, 11/7/07 ................................... 2,300 2,398
4.38%, 3/17/10 ................................... 1,000 997
6.25%, 3/5/12, Callable 3/5/07 @ 100 ............. 1,500 1,545
4.63%, 10/15/14 # ................................ 1,500 1,506
5.50%, 11/1/16 - 11/1/17 ......................... 2,884 2,943
6.50%, 11/20/28 - 10/15/33 ....................... 3,145 3,285
6.00%, 6/15/33 ................................... 696 716
--------
TOTAL U.S. GOVERNMENT
AGENCIES ....................................... 15,410
--------
U.S. TREASURY NOTES (6.0%)
3.00%, 2/15/09 # ................................. 1,500 1,446
4.00%, 6/15/09 # ................................. 1,000 996
3.63%, 6/15/10 # ................................. 2,750 2,689
4.25%, 11/15/13 # ................................ 6,000 5,999
--------
TOTAL U.S. TREASURY NOTES 11,130
--------
AFFILIATED SECURITIES (0.0%) +
AmSouth Prime Money Market Fund .................. 81,037 81
--------
TOTAL AFFILIATED SECURITIES ...................... 81
--------
MUNICIPAL BONDS (1.0%)
Chicago Public Building, 7.00%, 1/1/06 ........... 1,800 1,823
--------
TOTAL MUNICIPAL BONDS ............................ 1,823
--------
INVESTMENT COMPANIES (0.8%)
AIM Liquid Assets Money Market Fund .............. 1,514,833 1,515
--------
TOTAL INVESTMENT COMPANIES ....................... 1,515
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (14.9%)
BNY Institutional Cash Reserve Fund .............. 27,498,093 27,498
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ............................. 27,498
--------
TOTAL INVESTMENTS
(Cost $197,975)^ -- 114.1% ..................... 211,956
Liabilities in excess of other assets --
(14.1)% ........................................ (26,777)
--------
NET ASSETS -- 100.0% ............................. $185,179
========
See notes to schedule of portfolio investments.
60
- ---------------------------------------------------
STRATEGIC PORTFOLIOS:
AGGRESSIVE GROWTH PORTFOLIO
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- -------
AFFILIATED SECURITIES (100.1%)
Investment Companies (100.1%)
AmSouth Capital Growth Fund, I Shares ......... 754,128 $ 7,850
AmSouth Enhanced Market Fund,
I Shares .................................... 888,897 10,835
AmSouth International Equity Fund,
I Shares .................................... 395,050 5,610
AmSouth Large Cap Fund, I Shares .............. 268,763 5,128
AmSouth Limited Term Bond Fund,
I Shares .................................... 46 --**
AmSouth Mid Cap Fund, I Shares ................ 375,908 5,842
AmSouth Prime Money Market Fund,
I Shares .................................... 494,994 495
AmSouth Select Equity Fund, I Shares .......... 342,268 4,915
AmSouth Small Cap Fund, I Shares (a) .......... 558,162 5,582
AmSouth Value Fund, I Shares .................. 477,366 8,340
-------
TOTAL AFFILIATED SECURITIES ................... 54,597
-------
TOTAL INVESTMENTS
(Cost $44,800)^ -- 100.1% ................... 54,597
Liabilities in excess of other assets --
(0.1)% ...................................... (140)
-------
NET ASSETS -- 100.0% .......................... $54,457
=======
See notes to schedule of portfolio investments.
---------------------------------------------------
STRATEGIC PORTFOLIOS:
GROWTH PORTFOLIO
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
------- -------
AFFILIATED SECURITIES (100.6%)
Investment Companies (100.6%)
AmSouth Capital Growth Fund, I Shares ......... 737,266 $ 7,675
AmSouth Enhanced Market Fund,
I Shares .................................... 899,200 10,961
AmSouth Government Income Fund,
I Shares .................................... 265,629 2,566
AmSouth High Quality Bond Fund,
I Shares .................................... 788,967 8,694
AmSouth International Equity Fund,
I Shares .................................... 407,615 5,788
AmSouth Large Cap Fund, I Shares .............. 268,827 5,129
AmSouth Limited Term Bond Fund,
I Shares .................................... 487,383 4,991
AmSouth Mid Cap Fund, I Shares ................ 381,382 5,927
AmSouth Prime Money Market Fund,
I Shares .................................... 638,789 639
AmSouth Select Equity Fund, I Shares .......... 353,389 5,075
AmSouth Small Cap Fund, I Shares (a) .......... 551,419 5,514
AmSouth Value Fund, I Shares .................. 486,716 8,503
-------
TOTAL AFFILIATED SECURITIES ................... 71,462
-------
TOTAL INVESTMENTS
(Cost $63,260)^ -- 100.6% ................... 71,462
Liabilities in excess of other assets --
(0.6)% ...................................... (432)
-------
NET ASSETS -- 100.0% .......................... $71,030
=======
See notes to schedule of portfolio investments.
61
- ---------------------------------------------------
STRATEGIC PORTFOLIOS:
GROWTH AND INCOME PORTFOLIO
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- ---------
AFFILIATED SECURITIES (100.0%)
Investment Companies (100.0%)
AmSouth Capital Growth Fund, I Shares ......... 928,317 $ 9,664
AmSouth Enhanced Market Fund,
I Shares .................................... 1,164,727 14,198
AmSouth Government Income Fund,
I Shares .................................... 944,460 9,123
AmSouth High Quality Bond Fund,
I Shares .................................... 1,760,312 19,399
AmSouth International Equity Fund,
I Shares .................................... 505,306 7,175
AmSouth Large Cap Fund, I Shares .............. 344,368 6,571
AmSouth Limited Term Bond Fund,
I Shares .................................... 1,253,124 12,832
AmSouth Mid Cap Fund, I Shares ................ 497,192 7,726
AmSouth Prime Money Market Fund,
I Shares .................................... 998,224 998
AmSouth Select Equity Fund, I Shares .......... 456,027 6,549
AmSouth Small Cap Fund, I Shares (a) .......... 701,854 7,019
AmSouth Value Fund, I Shares .................. 635,667 11,105
--------
TOTAL AFFILIATED SECURITIES ................... 112,359
--------
TOTAL INVESTMENTS
(Cost $99,497)^ -- 100.0% ................... 112,359
Liabilities in excess of other assets --
0.0% ........................................ (30)
--------
NET ASSETS -- 100.0% .......................... $112,329
========
See notes to schedule of portfolio investments.
---------------------------------------------------
STRATEGIC PORTFOLIOS: MODERATE
GROWTH AND INCOME PORTFOLIO
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares Value
--------- --------
AFFILIATED SECURITIES (100.1%)
Investment Companies (100.1%)
AmSouth Capital Growth Fund, I Shares ......... 383,425 $ 3,991
AmSouth Enhanced Market Fund,
I Shares .................................... 401,465 4,894
AmSouth Government Income Fund,
I Shares .................................... 518,100 5,005
AmSouth High Quality Bond Fund,
I Shares .................................... 1,038,219 11,440
AmSouth International Equity Fund,
I Shares .................................... 172,628 2,451
AmSouth Large Cap Fund, I Shares .............. 138,821 2,649
AmSouth Limited Term Bond Fund,
I Shares .................................... 732,403 7,500
AmSouth Mid Cap Fund, I Shares ................ 194,522 3,023
AmSouth Prime Money Market Fund,
I Shares .................................... 473,786 474
AmSouth Select Equity Fund, I Shares .......... 175,249 2,517
AmSouth Small Cap Fund, I Shares (a) .......... 267,904 2,679
AmSouth Value Fund, I Shares .................. 226,548 3,958
-------
TOTAL AFFILIATED SECURITIES ................... 50,581
-------
TOTAL INVESTMENTS
(Cost $47,404)^ -- 100.1% ................... 50,581
Other assets in excess of liabilities --
(0.1)% ...................................... (24)
-------
NET ASSETS -- 100.0% .......................... $50,605
=======
See notes to schedule of portfolio investments.
62
- ---------------------------------------------------
GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
U.S. GOVERNMENT AGENCIES (95.6%)
5.50%, 8/1/08 - 1/1/35 ................. $28,151,360 $ 28,329
4.00%, 2/1/10 .......................... 1,745,894 1,713
7.00%, 8/15/11 - 6/1/31 ................ 2,034,447 2,146
6.50%, 1/15/15 - 2/1/34 ................ 13,682,478 14,190
7.50%, 4/1/15 - 8/20/30 ................ 2,054,546 2,196
8.00%, 7/1/15 - 6/20/30 ................ 976,647 1,050
6.00%, 5/1/16 - 1/1/35 ................. 34,600,921 35,446
9.50%, 5/15/18 - 8/15/21 ............... 85,921 96
5.00%, 8/1/18 - 2/1/35 ................. 67,152,791 66,842
9.00%, 8/15/18 - 9/15/22 ............... 67,299 75
8.50%, 11/15/20 - 2/15/23 .............. 18,274 20
6.75%, 4/15/26 ......................... 500,627 526
--------
TOTAL U.S. GOVERNMENT
AGENCIES ............................. 152,629
--------
INVESTMENT COMPANIES (2.2%)
AIM Treasury Money Market Fund ......... 3,520,722 3,521
--------
TOTAL INVESTMENT COMPANIES ............. 3,521
--------
AFFILIATED SECURITIES (1.8%)
AmSouth Treasury Reserve Money
Market Fund .......................... 2,833,682 2,834
--------
TOTAL AFFILIATED SECURITIES ............ 2,834
TOTAL INVESTMENT
(Cost $160,069)^ -- 102.1% ........... 158,984
Other assets in excess of liabilities --
(2.1)% ............................... 573
--------
NET ASSETS -- 100.0% ................... $159,558
========
See notes to schedule of portfolio investments.
---------------------------------------------------
LIMITED TERM BOND FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
CORPORATE BONDS (58.6%)
Alabama Power Co., 2.65%, 2/15/06 ............. $ 500 $ 496
Alabama Power Co., 2.80%, 12/1/06 ............. 1,000 981
Asif Global Finance, 3.47%,
12/11/06 (b) (c) ............................ 3,000 2,997
Bank of New York Co., Inc., 3.90%,
9/1/07 ...................................... 1,000 987
Becton, Dickinson and Co., 7.15%,
10/1/09 ..................................... 1,000 1,096
Berkshire Hathaway, Inc.,
3.38%, 10/15/08 (b) ......................... 3,000 2,887
Boeing Capital Corp., 5.65%, 5/15/06 .......... 403,000 408
Bottling Group, LLC, 2.45%, 10/16/06 .......... 1,000 978
Caterpillar Financial Services Corp.,
2.50%, 10/3/06, MTN ......................... 2,000 1,958
Caterpillar Financial Services Corp.,
3.10%, 5/15/07, MTN ......................... 500 489
Chase Manhattan Corp., 7.13%, 2/1/07 .......... 2,500 2,600
Coca-Cola Enterprises, Inc., 2.50%,
9/15/06 ..................................... 1,000 977
Coca-Cola Enterprises, Inc., 5.25%,
5/15/07 ..................................... 1,000 1,015
Colgate-Palmolive Co., 5.34%, 3/27/06 ......... 2,000 2,018
Consolidated Edison, Inc., 3.63%,
8/1/08 # .................................... 500 487
DaimlerChrysler NA Holding,
7.20%, 9/1/09 ............................... 2,000 2,151
Diageo Capital PLC, 3.50%, 11/19/07 ........... 1,000 980
Diageo Finance BV, 3.00%, 12/15/06 ............ 1,000 978
Donaldson Lufkin Jenrette, Inc.,
6.90%, 10/1/07, MTN ......................... 1,500 1,568
Eli Lilly & Co., 5.50%, 7/15/06 ............... 2,000 2,023
Fifth Third Bank, 2.70%, 1/30/07 .............. 2,000 1,947
FleetBoston Financial Corp.,
4.88%, 12/1/06 .............................. 2,000 2,014
General Electric Capital Corp.,
3.75%, 12/15/09 ............................. 4,000 3,869
Gillette Co., 2.50%, 6/1/08 ................... 2,000 1,904
GlaxoSmithKline Capital PLC, 2.38%,
4/16/07 ..................................... 1,100 1,066
Goldman Sachs Group, Inc., 3.69%,
1/9/07, MTN (c) ............................. 3,000 3,003
GTE California, Inc., 7.65%, 3/15/07 .......... 2,000 2,093
Hartford Life Global Fund, 3.58%,
9/15/09 (c) ................................. 2,000 1,999
IBM Corp., 3.80%, 2/1/08 ...................... 1,000 986
Keycorp, 2.75%, 2/27/07, MTN .................. 2,000 1,945
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08 ............................... 2,000 1,937
McDonald's Corp., 3.88%, 8/15/07,
MTN ......................................... 3,000 2,967
Merrill Lynch & Co., 4.13%, 9/10/09 ........... 2,000 1,964
National City Bank of Indiana, 2.38%,
8/15/06 ..................................... 2,000 1,959
Continued
63
- ---------------------------------------------------
LIMITED TERM BOND FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
CORPORATE BONDS, continued
Nationwide Life Global Fund, 2.75%,
5/15/07 (b) .................................... $ 2,000 $ 1,938
New York Times Co., 4.63%,
6/25/07, MTN ................................... 2,000 2,005
Pacific Life Global Funding, 3.75%,
1/15/09 (b) .................................... 1,000 974
Premium Asset Trust, 3.81%, 10/8/09 (c) 2,000 2,000
Procter & Gamble Co., 3.50%, 12/15/08 ............ 1,000 973
Protective Life Secured Trusts, 4.00%,
10/7/09, MTN ................................... 2,000 1,955
R.R. Donnelley & Sons Co., 5.00%,
11/15/06 ....................................... 1,000 1,004
Sears Credit Account Master Trust,
6.75%, 9/16/09 ................................. 5,000 5,019
SLM Corp., 4.79%, 2/1/10 (c) ..................... 2,000 1,935
Smith Enron, 5.97%, 12/15/06 ..................... 314 315
St. Paul Cos., Inc., 5.75%, 3/15/07 .............. 2,500 2,537
SunTrust Banks, Inc., 6.90%, 7/1/07 .............. 510 532
SunTrust Banks, Inc., 6.25%, 6/1/08 .............. 1,000 1,045
Sysco Corp., 7.25%, 4/15/07 ...................... 1,115 1,164
Target Corp., 3.38%, 3/1/08 ...................... 800 781
Toyota Motor Credit Corp., 5.65%,
1/15/07 ........................................ 3,000 3,051
U.S. Bancorp, 2.75%, 3/30/06 ..................... 2,000 1,983
United Technologies Corp., 4.88%,
11/1/06 ........................................ 2,000 2,016
UnitedHealth Group, Inc., 5.20%, 1/17/07 ......... 1,000 1,010
UnitedHealth Group, Inc., 3.38%, 8/15/07 ......... 1,035 1,013
Univision Communications, Inc., 2.88%,
10/15/06 ....................................... 1,500 1,467
USAA Capital Corp., 4.00%, 12/10/07,
MTN (b) ........................................ 2,200 2,179
Vulcan Materials Co., 6.40%, 2/1/06 .............. 2,500 2,522
Wells Fargo & Co., 3.50%, 9/15/06 (c) ............ 1,000 1,001
--------
TOTAL CORPORATE BONDS ............................ 98,146
--------
U.S. TREASURY OBLIGATIONS (19.6%)
2.00%, 5/15/06 # ................................. 8,500 8,380
2.25%, 2/15/07 # ................................. 25,000 24,365
--------
TOTAL U.S. TREASURY
OBLIGATIONS .................................... 32,745
--------
U.S. GOVERNMENT AGENCIES (19.5%)
Fannie Mae (2.9%)
3.41%, 8/30/07, Callable 9/1/05 # ................ 5,000 4,911
--------
Federal Farm Credit Bank (4.1%)
2.38%, 12/23/05, Callable 8/16/05 ................ 5,000 4,969
2.70%, 11/24/06 .................................. 2,000 1,962
--------
6,931
--------
Continued
Shares
or
Principal
Amount Value
----------- --------
U.S. GOVERNMENT AGENCIES, continued
Federal Home Loan Bank (8.3%)
3.31%, 9/16/05, (c) .............................. $ 2,000 $ 2,000
2.25%, 10/18/05 .................................. 2,000 1,994
2.38%, 8/15/06 ................................... 10,000 9,823
--------
13,817
--------
Freddie Mac (3.6%)
3.75%, 8/3/07, Callable 8/3/05 ................... 6,000 5,944
--------
Government National Mortgage Assoc. (0.6%)
8.00%, 12/15/07 - 4/15/10 ........................ 573 613
7.50%, 4/15/09 - 8/15/11 ......................... 226 241
8.50%, 9/15/09 - 12/15/09 ........................ 83 89
--------
943
--------
TOTAL U.S. GOVERNMENT
AGENCIES ....................................... 32,546
--------
INVESTMENT COMPANIES (0.6%)
Goldman Sachs Financial Square
Prime Obligations .............................. 1,007,419 1,007
--------
TOTAL INVESTMENT COMPANIES 1,007
--------
AFFILIATED SECURITIES (0.7%)
AmSouth Prime Money Market Fund .................. 1,166,367 1,166
AmSouth Treasury Reserve Money
Market Fund .................................... 737 1
--------
TOTAL AFFILIATED SECURITIES ...................... 1,167
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (11.6%)
BNY Institutional Cash Reserve Fund .............. 17,935,657 17,936
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ............................. 17,936
--------
TOTAL INVESTMENTS
(Cost $185,953)^ -- 110.6% ..................... 182,540
Liabilities in excess of other assets --
(10.6)% ........................................ (15,943)
--------
NET ASSETS -- 100.0% ............................. $166,597
========
See notes to schedule of portfolio investments.
64
---------------------------------------------------
HIGH QUALITY BOND FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
------------ --------
CORPORATE BONDS (43.2%)
Alabama Power Co., 7.13%, 10/1/07 ........... $ 1,700 $ 1,793
Alcoa, Inc., 7.38%, 8/1/10 .................. 4,000 4,475
Asif Global Financing, 3.85%,
11/26/07, (b) ............................. 5,000 4,908
Baltimore Gas & Electric, 7.50%, 1/15/07..... 3,100 3,232
Bank of New York Co., Inc. Series G,
4.95%, 3/15/15, MTN ....................... 2,000 2,002
Bank One, Texas NA, 6.25%, 2/15/08 .......... 1,000 1,043
Bear Stearns Cos., Inc., 4.00%, 1/31/08 ..... 2,800 2,768
Berkshire Hathaway, Inc., 3.38%,
10/15/08, (b) ............................. 3,000 2,887
Black & Decker Corp., 4.75%, 11/1/14 ........ 4,500 4,353
Bottling Group, LLC, 2.45%, 10/16/06 # ...... 5,500 5,381
Branch Banking & Trust, 4.88%, 1/15/13 ...... 4,500 4,517
British Columbia, 4.63%, 10/3/06 ............ 3,000 3,018
Caterpillar Financial Services Corp.,
2.50%, 10/3/06, MTN ....................... 2,100 2,056
Caterpillar Financial Services Corp.,
3.10%, 5/15/07, MTN # ..................... 2,300 2,249
Caterpillar, Inc., 6.55%, 5/1/11 # .......... 1,000 1,089
Chubb Corp., 6.00%, 11/15/11 ................ 1,000 1,062
Clorox Co., 6.13%, 2/1/11 ................... 500 535
Colgate-Palmolive Co., 5.34%, 3/27/06 ....... 4,400 4,439
Comcast Cable Communication Inc Nt
6.75%, 1/30/11 ............................ 5,000 5,437
Conoco, Inc., 6.35%, 4/15/09 ................ 1,000 1,064
DaimlerChrysler NA Holding Corp.,
6.50%, 11/15/13 # ......................... 6,000 6,468
Devon Financing Corp., ULC, 6.88%,
9/30/11 ................................... 5,000 5,520
Duke Energy Corp., 6.25%, 1/15/12 ........... 5,000 5,365
Fifth Third Bank, 2.70%, 1/30/07 ............ 1,000 974
First Data Corp., 4.70%, 11/1/06 ............ 7,000 7,036
FleetBoston Financial Corp., 4.88%,
12/1/06 ................................... 2,100 2,114
Ford Motor Credit Co., 6.25%, 12/8/05 # ..... 3,485 3,502
General Electric Co., 5.00%, 2/1/13 ......... 12,000 12,142
Georgia Power Co., 4.00%, 1/15/11 ........... 3,000 2,882
GlaxoSmithKline Capital PLC, 2.38%,
4/16/07 ................................... 1,000 969
GTE California, Inc., 7.65%, 3/15/07 ........ 1,000 1,046
GTE California, Inc., 6.70%, 9/1/09 ......... 1,500 1,586
Honeywell, Inc., 7.00%, 3/15/07 ............. 2,000 2,082
Hormel Foods Corp., 6.63%, 6/1/11 ........... 7,000 7,692
Household Finance Corp., 6.50%,
1/24/06 # ................................. 5,000 5,059
IBM Corp., 5.38%, 2/1/09 .................... 5,000 5,145
International Paper Co., 5.30%, 4/1/15 ...... 5,000 4,925
John Deere Capital Corp, 7.00%, 3/15/12 ..... 6,000 6,750
John Hancock Financial Services, Inc.,
5.63%, 12/1/08 ............................ 5,000 5,159
Kimberly-Clark Corp., 7.10%, 8/1/07 ......... 1,700 1,787
Continued
Shares
or
Principal
Amount Value
------------ --------
CORPORATE BONDS, continued
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08 ............................. $ 6,000 $ 5,811
May Department Stores Co., 7.90%,
10/15/07 .................................. 1,000 1,059
McDonald's Corp., 5.38%, 4/30/07, MTN........ 2,000 2,033
McDonald's Corp., 5.35%, 9/15/08 ............ 5,500 5,658
McDonald's Corp., 6.00%, 4/15/11, MTN........ 700 745
McDonnell Douglas Corp., 6.88%, 11/1/06...... 2,145 2,209
Mellon Funding Corp., 6.40%, 5/14/11 ........ 2,000 2,167
MetLife, Inc., 6.13%, 12/1/11 ............... 1,000 1,068
NationsBank Corp., 7.75%, 8/15/15 ........... 1,100 1,330
New York Times Co., 4.63%,
6/25/07, MTN .............................. 2,800 2,808
Nike, Inc., 5.50%, 8/15/06 .................. 3,500 3,552
Northern Trust Co., 7.10%, 8/1/09 ........... 6,000 6,518
Pharmacia Corp., 5.75%, 12/1/05 ............. 2,600 2,617
Phillips Petroleum Co., 6.38%, 3/30/09 ...... 2,000 2,126
Protective Life Secured Trusts, 4.00%,
10/7/09, MTN .............................. 3,500 3,421
Prudential Funding LLC, 6.60%,
5/15/08, (b) .............................. 6,000 6,338
Sara Lee Corp., 6.15%, 6/19/08, MTN ......... 5,625 5,817
Sears Credit Account Master Trust,
6.75%, 9/16/09 ............................ 5,000 5,019
Smith Enron, 5.97%, 12/15/06 ................ 486 487
St. Paul Cos., Inc., 5.75%, 3/15/07 ......... 9,125 9,261
State Street Corp., 7.65%, 6/15/10 .......... 5,000 5,685
SunTrust Bank, Inc., 6.38%, 4/1/11 .......... 500 540
SunTrust Banks, Inc., 7.38%, 7/1/06 ......... 3,159 3,231
Target Corp., 5.88%, 3/1/12 ................. 3,500 3,730
Texaco Capital, 7.09%, 2/1/07 ............... 4,000 4,147
Time Warner, Inc., 6.88%, 5/1/12 ............ 5,900 6,571
Unilever Capital Corp., 7.13%, 11/1/10 ...... 5,000 5,552
UnitedHealth Group, Inc., 5.00%, 8/15/14..... 5,000 5,047
US Bank NA, 3.75%, 2/6/09 ................... 2,000 1,942
Vulcan Materials Co., 6.00%, 4/1/09 ......... 2,000 2,100
Wachovia Corp., 6.61%, 10/1/25 .............. 1,875 2,144
Wal-Mart Stores, Inc., 5.45%, 8/1/06 # ...... 4,500 4,549
Wisconsin Electric Power, 6.63%,
11/15/06 .................................. 3,500 3,595
--------
TOTAL CORPORATE BONDS ....................... 265,388
--------
U.S. TREASURY OBLIGATIONS (33.0%)
3.00%, 2/15/09 ++ # ......................... 10,000 9,639
4.25%, 11/15/13 # ........................... 43,200 43,195
7.50%, 11/15/16 # ........................... 19,000 24,226
6.25%, 8/15/23 # ............................ 43,900 52,934
5.50%, 8/15/28 # ............................ 29,000 32,958
3.12%, 10/6/05 .............................. 4,300 4,275
3.63%, 6/15/10 .............................. 36,000 35,207
--------
TOTAL U.S. TREASURY
OBLIGATIONS ............................... 202,434
--------
Continued
65
- ---------------------------------------------------
HIGH QUALITY BOND FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
U.S. GOVERNMENT AGENCIES (20.7%)
3.39%, 10/3/05, (c) ............................ $ 4,000 $ 3,999
2.38%, 8/15/06 ................................. 5,000 4,911
3.27%, 1/3/07, (c) ............................. 2,000 2,000
2.63%, 1/19/07 ................................. 10,000 9,783
7.13%, 3/15/07 ................................. 5,000 5,230
3.75%, 8/3/07, Callable 8/3/05 @ 100 ........... 21,000 20,804
3.52%, 1/28/08 ................................. 5,000 4,913
3.75%, 9/15/08, Callable 9/15/05 @ 100 ......... 21,000 20,627
8.00%, 5/15/10 ................................. 57 61
6.50%, 8/15/11 - 12/15/32 ...................... 14,464 15,117
7.50%, 8/15/11 ................................. 86 91
7.00%, 9/15/11 - 5/15/32 ....................... 2,631 2,776
4.88%, 11/15/11 ................................ 7,000 7,119
6.25%, 3/5/12, Callable 3/5/07 @ 100 # ......... 10,000 10,302
4.50%, 1/15/15 # ............................... 6,000 5,971
5.50%, 12/1/17 ................................. 9,735 9,934
6.00%, 7/1/33 .................................. 3,230 3,301
--------
TOTAL U.S. GOVERNMENT
AGENCIES ..................................... 126,939
--------
INVESTMENT COMPANIES (0.8%)
Goldman Sachs Financial Square
Prime Obligations Fund ....................... 4,749,094 4,749
--------
TOTAL INVESTMENT COMPANIES ..................... 4,749
--------
AFFILITED SECURITIES (0.7%)
AmSouth Prime Money Market Fund ................ 4,034,539 4,034
AmSouth Treasury Reserve Money
Market Fund .................................. 9,585 10
--------
TOTAL AFFILIATED SECURITIES .................... 4,044
--------
MUNICIPAL BONDS (0.2%)
Atlanta Downtown Development Lease
Revenue Bond, 6.88%, 2/1/21 .................. 800 949
--------
TOTAL MUNICIPAL BONDS .......................... 949
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (22.5%)
BNY Institutional Cash Reserve Fund ............ 137,871,705 137,872
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................... 137,872
--------
TOTAL INVESTMENTS
(Cost $727,064)^ -- 121.1% ................... 742,375
Liabilities in excess of other assets --
(21.1)% ...................................... (129,313)
--------
NET ASSETS -- 100.0% ........................... $613,062
========
See notes to schedule of portfolio investments.
---------------------------------------------------
HIGH QUALITY
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- --------
MUNICIPAL BONDS (96.2%)
Alabama (32.0%)
Alabama 21st Century Authority Tobacco
Settlement Revenue, 5.13%, 12/1/05 ......... $ 1,000 $ 1,009
Alabama 21st Century Authority Tobacco
Settlement Revenue, 5.25%, 12/1/06 ......... 1,000 1,036
Alabama State Agriculture & Mechanical
University, Revenue, 4.55%, 11/1/09,
Callable 5/1/08 @ 102, MBIA ................ 2,245 2,362
Alabama State Agriculture & Mechanical
University, Revenue, 4.65%, 11/1/10,
Callable 5/1/08 @ 102, MBIA ................ 2,355 2,488
Alabama State Public School &
College Authority, 5.13%, 11/1/14,
Callable 11/1/08 @ 101.5, FSA .............. 8,000 8,516
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.25%, 8/15/08, Callable 8/15/06 @ 100,
AMBAC ...................................... 1,095 1,121
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.38%, 8/15/10, Callable 8/15/06 @ 100,
AMBAC ...................................... 860 881
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.40%, 8/15/11, Callable 8/15/06 @ 100,
AMBAC ...................................... 1,840 1,886
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.50%, 8/15/16, Callable 8/15/06 @ 100,
AMBAC ...................................... 3,890 3,990
Alabama State, Series E, GO, 4.00%,
9/1/08 ..................................... 2,855 2,930
Athens, Warrants, GO, 1.85%, 2/1/06,
MBIA ....................................... 680 676
Athens, Warrants, GO, 2.35%, 2/1/07,
MBIA ....................................... 690 681
Auburn University, University Revenues,
General Fee, 5.00%, 6/1/13,
Callable 6/1/12 @ 100, AMBAC ............... 4,800 5,194
Auburn University, University Revenues,
General Fee, Series A, 5.50%, 6/1/12,
Callable 6/1/11 @ 100, MBIA ................ 2,125 2,342
Birmingham, Capital Improvements,
Series A, GO, 4.75%, 10/1/10,
Callable 4/1/08 @ 102 ...................... 1,340 1,410
Birmingham, Capital Improvements,
Series A, GO, 4.85%, 10/1/11,
Callable 4/1/08 @ 102 ...................... 1,430 1,504
Birmingham, Capital Improvements,
Series B, GO, 4.80%, 10/1/08,
Callable 4/1/07 @ 102 ...................... 1,040 1,087
Birmingham, Industrial Water Board,
Industrial Water Supply, 6.20%, 7/1/08,
Prerefunded 1/1/07 @ 100 ................... 1,440 1,494
Continued
66
---------------------------------------------------
HIGH QUALITY
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- --------
MUNICIPAL BONDS, continued
Alabama, continued
Birmingham, Special Care Facilities
Funding Authority, Series D, 4.95%,
11/1/14, Prerefunded 11/1/07 @ 100 ........... $ 2,235 $ 2,297
Clark & Mobile County, Gas District,
5.60%, 12/1/17, Callable 12/1/06 @ 102,
MBIA ......................................... 1,045 1,100
Decatur, Warrants, Series A, GO,
2.25%, 12/1/05 ............................... 435 434
Decatur, Warrants, Series A, GO,
2.40%, 12/1/06 ............................... 205 203
Decatur, Warrants, Series A, GO,
2.50%, 12/1/07 ............................... 210 206
Decatur, Warrants, Series B, GO,
2.25%, 12/1/05 ............................... 215 215
Decatur, Warrants, Series B, GO,
2.40%, 12/1/06 ............................... 100 99
Decatur, Warrants, Series B, GO,
2.50%, 12/1/07 ............................... 140 137
Decatur, Warrants, Series C, GO,
2.50%, 8/1/05 ................................ 245 245
Decatur, Warrants, Series C, GO,
2.88%, 8/1/06 ................................ 200 200
Decatur, Warrants, Series C, GO,
2.88%, 8/1/07 ................................ 220 220
Decatur, Warrants, Series D, GO,
2.50%, 8/1/05 ................................ 580 580
Decatur, Warrants, Series D, GO,
2.88%, 8/1/07 ................................ 610 609
Dothan, GO, 5.05%, 9/1/09, FSA ................. 905 970
Dothan, GO, 5.10%, 9/1/10,
Callable 9/1/09 @ 101, FSA ................... 1,515 1,631
Florence Water, Series B, 4.70%, 12/1/13,
Callable 12/1/08 @ 102, FSA .................. 1,025 1,076
Florence, Warrants, GO, 4.00%, 9/1/13,
FSA .......................................... 1,340 1,372
Florence, Warrants, GO, 4.00%, 9/1/14,
Callable 3/1/14 @ 100, FSA ................... 1,245 1,269
Florence, Warrants, Series A, GO,
4.35%, 12/1/07, FSA .......................... 390 402
Florence, Warrants, Series A, GO,
2.40%, 9/1/08, MBIA .......................... 1,370 1,331
Florence, Warrants, Series A, GO,
4.40%, 12/1/08, FSA .......................... 405 421
Florence, Warrants, Series A, GO,
4.50%, 12/1/09, FSA .......................... 425 447
Florence, Warrants, Series A, GO,
4.60%, 12/1/10, ..............................
Callable 12/1/08 @ 102 FSA ..................... 445 473
Florence, Warrants, Series B, GO,
4.35%, 12/1/07, FSA .......................... 790 813
Florence, Warrants, Series B, GO,
4.40%, 12/1/08, FSA .......................... 825 858
Continued
Principal
Amount Value
---------- --------
MUNICIPAL BONDS, continued
Alabama, continued
Florence, Warrants, Series B, GO, 4.50%,
12/1/09, Callable 12/1/08 @ 102, FSA ......... $ 865 $ 909
Florence, Warrants, Series B, GO, 4.60%,
12/1/10, Callable 12/1/08 @ 102, FSA ......... 900 956
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/10, FSA ........... 1,085 1,117
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/11, FSA ........... 1,000 1,027
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/12, FSA ........... 1,010 1,035
Huntsville, Series A, GO, 4.75%, 11/1/18,
Callable 11/1/08 @ 101 ....................... 1,445 1,514
Huntsville Electric, 4.60%, 12/1/09,
Callable 12/1/07 @ 102 ....................... 550 576
Huntsville Electric, 4.70%, 12/1/10,
Callable 12/1/07 @ 102 ....................... 660 692
Huntsville Electric, 4.80%, 12/1/11,
Callable 12/1/07 @ 102 ....................... 680 714
Huntsville, Water Treatment Systems,
Series A, GO, 5.13%, 5/1/20,
Callable 5/1/12 @ 102, OID ................... 1,895 2,068
Jefferson County, Warrants, GO,
5.10%, 2/15/10, FSA .......................... 1,000 1,076
Madison Water & Wastewater Board,
Water & Sewer Revenue, 4.60%,
12/1/11, AMBAC ............................... 725 769
Mobile County, Warrants, GO, 5.25%,
8/1/12, FSA .................................. 6,165 6,801
Mobile County, Warrants, GO, 5.25%,
8/1/13, FSA .................................. 3,440 3,816
Mobile, Warrants, GO, 4.85%, 2/15/09 ........... 1,230 1,244
Montgomery Downtown Redevelopment
Authority, Lease Revenue, 5.00%,
10/1/08, MBIA ................................ 1,895 2,001
Montgomery, Warrants, GO, 5.00%,
5/1/11, AMBAC ................................ 1,530 1,653
Montgomery, Warrants, GO, 5.25%,
5/1/12, AMBAC ................................ 2,545 2,799
Montgomery, Waterworks & Sanitation
Sewer Board, Water & Sewer
Systems Revenue, 5.25%, 9/1/18,
Callable 9/1/11 @ 101, AMBAC ................. 4,125 4,496
Shelby County Board of Education
Warrants, Capital Outlay, 4.80%, 2/1/10,
Callable 2/1/09 @ 101, AMBAC ................. 1,005 1,064
University of Alabama General Fee,
4.60%, 6/1/09, Unrefunded Portion,
OID, MBIA .................................... 890 929
University of Alabama General Fee,
4.60%, 6/1/09, Prerefunded 6/1/07 @
102, OID, MBIA ............................... 310 326
Continued
67
- ---------------------------------------------------
HIGH QUALITY
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- --------
MUNICIPAL BONDS, continued
Alabama, continued
University of Alabama General Fee,
4.70%, 6/1/10, Prerefunded 6/1/07 @ 102,
OID, MBIA .................................. $ 340 $ 358
University of Alabama General Fee,
4.70%, 6/1/10, Unrefunded Portion,
OID, MBIA .................................. 960 1,002
University of Alabama General Fee,
4.75%, 6/1/11, Unrefunded Portion,
OID, MBIA .................................. 1,105 1,151
University of Alabama General Fee,
4.75%, 6/1/11, Prerefunded 6/1/07 @ 102,
OID, MBIA .................................. 395 416
University of South Alabama, University
Revenues, Tuition, 4.70%, 11/15/08,
Callable 5/15/06 @ 102, OID, AMBAC ......... 2,185 2,256
--------
100,980
--------
Arizona (3.3%)
Arizona School Facilities, Board Revenue,
State School Improvement, 5.50%, 7/1/10..... 3,000 3,304
Phoenix Arizona Civic Improvement
Corporation, Wastewater System
Revenue, 5.25%, 7/1/14, MBIA ............... 6,305 7,046
--------
10,350
--------
California (2.0%)
Franklin-McKinley School District, GO,
6.00%, 7/1/16, FSA ......................... 1,000 1,193
San Mateo County Transit District,
Sales Tax Revenue Series A, 5.25%,
6/1/16, Callable 6/1/09 @ 101, FSA ......... 4,765 5,122
--------
6,315
--------
Colorado (2.1%)
Central Platte Valley Metropolitan
District, 5.20%, 12/1/17, Prerefunded
12/1/09 @ 101, OID, ACA .................... 5,940 6,468
--------
Connecticut (1.9%)
Connecticut State, Special Tax Obligation
Revenue, 5.25%, 7/1/17, AMBAC .............. 5,385 6,100
--------
Florida (8.6%)
Collier County, GO, 5.00%, 1/1/13,
AMBAC ...................................... 3,805 4,165
Dade County, Series DD, GO, 7.70%,
10/1/08, AMBAC ............................. 1,760 2,006
Dade County, Series DD, GO, 7.70%,
10/1/12, AMBAC ............................. 1,000 1,280
Jacksonville, Water & Sewer District,
Revenue, 5.00%, Prerefunded 9/30/08 @
101, OID, MBIA ............................. 9,550 9,960
Key West Utilities Board, Electric
Revenue, 6.00%, 10/1/13, AMBAC ............. 2,450 2,855
Continued
Principal
Amount Value
------------ --------
MUNICIPAL BONDS, continued
Florida, continued
Seminole County, Water and
Sewer Revenue, 5.00%, 10/1/16,
Callable 10/1/15 @ 100 ..................... $ 3,880 $ 4,252
Seminole County, Water and Sewer
Revenue, 6.00%, 10/1/19, OID,
ETM, MBIA .................................. 2,060 2,450
--------
26,968
--------
Georgia (2.0%)
Georgia State, Series B, GO, Public
Improvements, 5.75%, 8/1/17 ................ 3,500 4,145
Gwinnett County, Water and
Sewer Revenue, 4.00%, 8/1/17,
Callable 8/1/15 @ 100 ...................... 2,000 2,018
--------
6,163
--------
Hawaii (0.8%)
Hawaii State Highway Revenue, Series A,
5.00%, 7/1/18, Callable 7/1/15 @ 100,
FSA ........................................ 2,280 2,473
--------
Illinois (2.3%)
Chicago, Series A, GO, Refunding Bonds,
5.00%, 1/1/15, FSA ......................... 5,000 5,450
Will County Forest Preservation District,
Series B, 0.00%, 12/1/18, OID, FGIC ........ 3,000 1,660
--------
7,110
--------
Kentucky (0.7%)
Carrollton & Henderson Public Energy
Authority, Gas Revenue, Series A,
5.00%, 1/1/09, FSA ......................... 2,000 2,099
--------
Louisiana (2.0%)
Louisiana Local Government
Environmental Facilities, Community
Development Authority Revenue, Capital
Projects & Equipment Acquisition,
5.25%, 12/1/18, AMBAC ...................... 1,085 1,205
Louisiana State, Series A, GO, 4.50%,
10/15/20, Callable 10/15/14 @ 100,
AMBAC ...................................... 5,000 5,129
--------
6,334
--------
Maryland (2.2%)
Prince Georges County, Series C, GO,
5.00%, 12/1/15, Callable 12/1/14 @ 100 ..... 2,045 2,234
Prince Georges County, Series E, GO,
5.00%, 12/1/15, Callable 12/1/14 @ 100 ..... 4,175 4,562
--------
6,796
--------
Massachusetts (3.1%)
Massachusetts Bay Transportation
Authority, Sales Tax Revenue, Series C,
5.50%, 7/1/17 .............................. 8,520 9,817
--------
Continued
68
---------------------------------------------------
HIGH QUALITY
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- --------
MUNICIPAL BONDS, continued
Minnesota (0.7%)
Centennial Independent School District
No. 12, Series A GO, 5.60%, 2/1/07,
MBIA ........................................ $ 2,175 $ 2,264
--------
Missouri (0.7%)
Fort Zumalt School District, GO, 5.00%,
3/1/16, Callable 3/1/15 @ 100 ............... 1,955 2,135
--------
New Jersey (3.6%)
New Jersey State Highway Authority,
Garden State Parkway General Revenue,
5.50%, 1/1/13, ETM, FGIC .................... 10,000 11,281
--------
Ohio (3.3%)
Ohio State Higher Education, Series A,
GO, 5.20%, 2/1/10 ........................... 9,700 10,489
--------
Oklahoma (0.6%)
Moore, GO, 5.75%, 4/1/12, MBIA ................ 1,530 1,734
--------
Oregon (2.5%)
Salem, GO, 4.45%, 12/1/10,
Callable 6/1/09 @ 100, OID, FSA ............. 2,365 2,452
Washington County Criminal Justice
Facilities, GO, 5.00%, 12/1/09,
Callable 12/1/07 @ 100 ...................... 5,285 5,511
--------
7,963
--------
Pennsylvania (3.6%)
Pennsylvania State, GO, 5.38%, 7/1/17 ......... 10,000 11,333
--------
Tennessee (2.0%)
Metropolitan Government, Nashville &
Davidson County, Davidson County,
Industrial Development Multi-Family
Housing, Arbor, Series B, 7.50%,
11/15/10, Prerefunded 5/15/10 @ 100 ......... 2,050 2,420
Metropolitan Government, Nashville &
Davidson County, Industrial
Development Board, Revenue, Multi-
Family Housing, Arbor, Series C, 7.50%,
11/15/12, Prerefunded 5/15/12 @100 .......... 1,000 1,244
Shelby County, Series A, GO,
Refunding Bonds, 4.75%, 4/1/19,
Callable 4/1/15 @ 100, AMBAC ................ 2,405 2,544
--------
6,208
--------
Texas (8.7%)
Austin Texas, GO, 5.00%, 9/1/16,
Callable 3/1/15 @ 100, MBIA ................. 2,000 2,176
Dallas County, Series A, GO,
5.25%, 8/15/09 .............................. 3,000 3,161
Harris County, Housing Financial Corp.,
Multi-Family Housing Revenue,
Breton Mill Partners, 7.00%, 3/1/07,
Prerefunded 2/15/07 @ 100 ................... 1,000 1,063
Continued
Principal
Amount Value
---------- --------
MUNICIPAL BONDS, continued
Texas, continued
Katy Independent School District,
Series A, GO, 4.50%, 2/15/20, Callable
2/15/08 @ 100, OID, PSF-GTD ................. $ 3,600 $ 3,634
Lubbock Health Facilities Development
Corp., Hospital Revenue, Methodist
Hospital, Series B, 6.75%, 12/1/10,
ETM, AMBAC .................................. 1,000 1,168
Mesquite Independent School District,
Series A, GO, 4.70%, 8/15/08, Callable
8/15/07 @ 100, OID, PSF-GTD ................. 4,000 4,127
Richardson Independent School District
Series C, 4.75%,, 2/15/22, Callable
2/15/08 @ 100, OID, PSF-GTD ................. 1,000 1,018
San Antonio, Series A, GO, 4.75% 2/1/19,
Prerefunded 2/1/09 @ 100, OID ............... 10 11
San Antonio, Series A, GO, 4.75%,
2/1/19, Unrefunded Portion,
Callable 2/1/09 @ 100, OID .................. 1,580 1,629
Texas State, Public Finance Authority,
Series A, GO, 5.25%, 10/1/08 ................ 7,965 8,471
Whitehouse Independent School
District, GO, 4.80%, 2/15/12, Callable
2/15/08 @ 100, OID, PSF-GTD ................. 1,000 1,035
--------
27,493
--------
Washington (6.7%)
King & Snohomish County School District,
School District No. 417 - Northshore,
GO, 5.00%, 6/1/16, Callable 6/1/15 @
100, FSA, SBG ............................... 3,000 3,272
King County Public Hospital District
No. 002, GO, 5.25%, 12/1/13,
Callable 12/1/08 @ 101, MBIA ................ 1,095 1,165
King County School District No. 406,
South Central, GO, 5.00%, 12/1/17,
Callable 12/1/14 @ 100, FSA SBG ............. 3,000 3,224
Snohomish County, GO, 3.13%,
12/1/11, OID ................................ 1,225 1,177
Washington State, GO, 5.75%, 9/1/08, OID 6,500 6,988
Washington State, Series 2-A, GO, 5.00%,
7/1/10, FSA ................................. 5,000 5,373
--------
21,199
--------
Wisconsin (0.8%)
Wisconsin State Health & Educational
Facilities Authority, Revenue,
Wheaton Franciscan Services, Inc.,
6.10%, 8/15/09, OID, MBIA ................... 2,420 2,668
--------
TOTAL MUNICIPAL BONDS ......................... 302,740
--------
Continued
69
- ---------------------------------------------------
HIGH QUALITY
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- --------
INVESTMENT COMPANIES (0.8%)
Goldman Sachs Tax-Free Money
Market Fund ............................... $2,427,986 $ 2,428
--------
TOTAL INVESTMENT COMPANIES .................. 2,428
--------
AFFILIATED SECURITIES (0.1%)
AmSouth Tax-Exempt Money
Market Fund ............................... 192,030 192
--------
TOTAL AFFILIATED SECURITIES ................. 192
--------
TOTAL INVESTMENTS
(Cost $296,420)^ -- 97.1% ................. 305,360
Other assets in excess of liabilities -- 2.9% 8,937
--------
NET ASSETS -- 100.0% ........................ $314,297
========
See notes to schedule of portfolio investments.
---------------------------------------------------
FLORIDA TAX-EXEMPT FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
------------- ----------
MUNICIPAL BONDS (94.8%)
Florida (94.8%)
Altamonte Springs, Health Facilities
Authority, Hospital Revenue, Series 1,
5.60%, 10/1/10, ETM1 ............................. $ 545 $ 593
Boca Raton, GO, 3.38%, 7/1/15,
Callable 7/1/14 @ 100, OID ....................... 1,085 1,045
Boynton Beach, Community Redevelopment
Agency, Tax Increment Revenue, 5.00%,
10/1/17, Callable 10/1/14 @ 100, MBIA ............ 1,165 1,264
Broward County Gas Tax Revenue, 5.25%,
9/1/09 ........................................... 500 538
Clearwater Utility Revenue, 6.10%,
12/1/07, ETM ..................................... 700 750
Collier County, Gas Tax Revenue, 5.25%,
6/1/14, Callable 6/1/13 @ 100, AMBAC1 ............ 1,200 1,326
Collier County, GO, 5.00%, 1/1/13, AMBAC 1,000 1,094
Dade County School Board, Certificates
of Participation, Series C, 5.25%,
8/1/06, FSA ...................................... 750 768
Escambia County Utility Authority, Utility
System Revenue, 5.00%, 1/1/08, FGIC .............. 1,000 1,045
Florida Housing Finance Agency,
Homeowner Mortgages, Series 1A, 5.65%,
1/1/09, Callable 1/1/06 @ 102, FHA ............... 330 338
Florida State Board of Education, Lottery
Revenue, Series B, 5.25%, 7/1/09,
Callable 7/1/08 @ 101, FGIC ...................... 1,000 1,069
Florida State Board of Education, Lottery
Revenue, Series C, 5.00%, 1/1/14,
Callable 1/1/13 @101, MBIA ....................... 1,000 1,092
Florida State Board of Education, Series A,
GO, 5.00%, 1/1/15, Callable 1/1/08 @ 101 ......... 1,000 1,057
Florida State Department of Environmental
Protection and Preservation, Revenue,
Florida Forever, Series B, 5.00%,
7/1/10, MBIA ..................................... 2,000 2,152
Florida State Division of Bond Finance,
Department of General Services Revenues,
Preservation 2000, Series A,
5.00%, 7/1/12, Callable 7/1/07 @ 101,
OID, AMBAC ....................................... 2,000 2,087
Florida Water PCR, 5.50%, 1/15/14,
Callable 7/15/11 @ 100 ........................... 1,000 1,096
Hillsborough County School District, Sales
Tax Revenue, 5.00%, 10/1/15, AMBAC ............... 1,250 1,372
Hollywood Florida, 5.00%, 6/1/11, FGIC ............. 1,045 1,132
Jacksonville Florida Water & Sewer Systems
Revenue, Series B, 5.25%, 10/1/09 ................ 75 81
Jacksonville Florida Water & Sewer Systems
Revenue, Series B, 5.25%, 10/1/09 ................ 925 999
Jacksonville, Sales Tax Revenue, 5.00%,
10/1/09, AMBAC ................................... 1,000 1,070
Key West Utilities Board, Electric Revenue,
6.00%, 10/1/13, AMBAC ............................ 1,500 1,748
Continued
70
---------------------------------------------------
FLORIDA TAX-EXEMPT FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
---------- -------
MUNICIPAL BONDS, continued
Florida, continued
Lee County Florida Tourist Development
Tax Revenue, 5.25%, 10/1/16, MBIA ................... $ 665 $ 749
Lee County Transportation Facilities,
Revenue, Series A, 5.50%, 10/1/11,
AMBAC ............................................... 1,500 1,668
Manatee County School Board, Certificates
of Participation, 5.75%, 7/1/09,
Prerefunded 7/1/06 @ 102, OID, MBIA ................. 500 523
Marco Island Utilities System Revenue,
5.25%, 10/1/14, Callable 10/1/13 @ 100,
MBIA ................................................ 600 665
Miami-Dade County Educational Facilities
Authority Revenue, Series A, 5.75%,
4/1/13, Callable 4/1/10 @ 101, AMBAC ................ 1,060 1,177
Okeechobee Utility Authority, Utility
System Revenue, 5.25%, 10/1/14,
Callable 10/1/09 @ 101, FSA ......................... 1,675 1,803
Orange County, Health Facilities
Authority Revenue, 5.00%, 1/1/16,
Callable 1/1/15 @ 100 ............................... 1,025 1,121
Orange County, Sales Tax Revenue, 4.80%,
1/1/17, Callable 1/1/07 @ 101, OID, FGIC 1,000 1,021
Palm Beach County, Criminal Justice
Facilities Revenue, 5.00%, 6/1/12 ................... 1,095 1,193
Palm Beach County, Public Improvement
Revenue, 2.80%, 8/1/11, OID ......................... 1,225 1,165
Palm Beach County, Public Improvement
Revenue, 5.00%, 8/1/13 .............................. 260 284
Palm Beach County, Public Improvement
Revenue, 5.00%, 8/1/16,
Callable 08/01/14 @ 100 ............................. 1,000 1,087
Polk County, School District Sales Tax
Revenue, 5.25%, 10/1/14, FSA ........................ 1,000 1,120
Seminole County, Water Utility
System Revenue, 5.00%, 10/1/16,
Callable 10/1/15 @ 100 .............................. 1,000 1,096
South Florida, Water Management District,
Special Obligation, Land Acquisition,
5.25%, 10/1/13, AMBAC ............................... 1,000 1,113
ST. Lucia County Florida, 5.00%, 10/1/16,
AMBAC ............................................... 1,000 1,096
St. Petersburg Excise Tax Revenue, 5.15%,
10/1/12, FGIC ....................................... 760 836
Tallahasee Capital Bonds, 5.00%,
10/1/14, FSA ........................................ 500 551
Tampa Bay Occupational License Tax,
Series A, 5.38%, 10/1/14,
Callable 10/1/12 @100, FGIC ......................... 1,000 1,105
Tampa Bay Water Utility System Revenue,
5.00%, 10/1/11, FGIC ................................ 1,000 1,079
Tampa Bay Water Utility System Revenue,
6.00%, 10/1/13, FSA ................................. 1,000 1,165
Continued
Principal
Amount Value
---------- -------
MUNICIPAL BONDS, continued
Florida, continued
Tampa-Hillsborough County, Expressway,
5.00%, 7/1/10, Callable 7/1/07 @ 101,
AMBAC ............................................... $ 1,000 $ 1,045
Volusia County Sales Tax Revenue, 5.00%,
10/1/13, Callable 10/1/08 @ 101, MBIA ............... 1,000 1,059
-------
TOTAL MUNICIPAL BONDS ................................. 47,437
-------
AFFILIATED SECURITIES (0.9%)
AmSouth Tax-Exempt Fund ............................... 454,368 454
-------
TOTAL AFFILIATED SECURITIES ........................... 454
-------
INVESTMENT COMPANIES (3.5%)
Dreyfus Florida Money Market Fund ..................... 1,728,991 1,729
-------
TOTAL INVESTMENT COMPANIES ............................ 1,729
-------
TOTAL INVESTMENTS
(Cost $48,798)^ -- 99.2%............................. 49,620
Other assets in excess of liabilities -- 0.8% ......... 411
-------
NET ASSETS -- 100.0% .................................. $50,031
=======
See notes to schedule of portfolio investments.
71
- ---------------------------------------------------
TENNESSEE TAX-EXEMPT FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
---------- -------
MUNICIPAL BONDS (96.7%)
Tennessee (96.7%)
Anderson County, GO, 5.00%, 4/1/09, FSA ............... $ 1,055 $ 1,123
Chattanooga, GO, 5.00%, 9/1/13,
Prerefunded 9/1/06 @101, OID, FGIC .................. 100 103
Chattanooga, Series A, GO, 5.00%, 11/1/06 ............. 1,000 1,026
Clarksville, Water Sewer & Gas Revenue,
5.15%, 2/1/14, FSA .................................. 1,570 1,738
Dickson County, Public Improvements &
Schools, GO, 5.25%, 4/1/16, Callable
4/1/10 @ 100, OID, FSA .............................. 1,000 1,087
Franklin Special School District, GO,
5.00%, 6/1/10 ....................................... 1,020 1,097
Hamilton County, GO, 5.00%, 11/1/11,
Callable 11/1/08 @ 101 .............................. 1,000 1,059
Harpeth VY Utilities Distribution Davidson
& Williamson Counties, Series A, 5.00%,
9/1/15, MBIA ........................................ 1,000 1,104
Johnson City, GO, 4.70%, 6/1/12,
OID, FGIC ........................................... 1,000 1,073
Knox County Health Educational & Housing
Facility Board, Hospital Facilities
Revenue, Fort Sanders Alliance, 7.25%,
1/1/08, MBIA ........................................ 750 820
Knox County, GO, 3.40%, 5/1/13 ........................ 750 736
Knoxville, Water Revenue, 5.00%, 3/1/13,
Callable 3/1/10 @ 100, MBIA ......................... 1,000 1,066
Marion County, GO, 5.00%, 4/1/11,
AMBAC ............................................... 1,000 1,083
Memphis, GO, 6.00%, 11/1/06 ........................... 1,000 1,038
Memphis, GO, 5.00%, 10/1/16, MBIA ..................... 1,000 1,105
Metropolitan Government, Nashville &
Davidson County, Electric Revenue,
Series B, 5.50%, 5/15/12 ............................ 1,000 1,116
Metropolitan Government, Nashville &
Davidson County, Electric Revenue,
Series B, 5.50%, 5/15/14 ............................ 1,000 1,132
Metropolitan Government, Nashville &
Davidson County, GO 6.00%, 12/1/09 .................. 1,500 1,667
Metropolitan Government, Nashville &
Davidson County, Health & Education
Facilities Board Revenue, The Vanderbilt
University, Series A, 6.00%, 7/1/07 ................. 500 528
Metropolitan Nashville Airport Authority,
Airport Revenue Improvement, Series A,
6.63%, 7/1/07, FGIC ................................. 500 531
Oak Ridge, GO, 5.00%, 4/1/13, Callable
4/1/11 @ 100, AMBAC ................................. 1,000 1,077
Putnam County Schools, GO, 5.50%, 4/1/19,
OID, Prerefunded 4/1/10 @ 100, FGIC ................. 1,000 1,097
Continued
Shares
or
Principal
Amount Value
---------- -------
MUNICIPAL BONDS, continued
Tennessee, continued
Shelby County Health Educational &
Housing Facility Board, Hospital Revenue,
Methodist Health Systems, Inc., 6.25%,
8/1/07, MBIA ........................................ $ 2,500 $ 2,656
Shelby County, Series A, GO, 4.75%, 4/1/19,
Callable 4/1/15 @ 100, AMBAC ........................ 1,000 1,058
Shelby County, Series B, GO, 5.25%,
12/1/10, Callable 12/1/06 @ 101, OID ................ 1,000 1,039
Sullivan County Schools, GO, 5.00%,
5/1/16, Callable 5/1/15@102, AMBAC .................. 500 551
Tennessee Housing Development Agency,
Housing Revenue, Series A, 4.90%,
7/1/16, Callable 7/1/13@100 ......................... 1,000 1,032
Tennessee State, GO, 5.00%, 5/1/09,
Callable 5/1/07 @ 101.5, OID ........................ 500 526
Tennessee State, Series A, GO,
5.25%, 5/1/16 ....................................... 1,000 1,115
West Wilson Utility District, Water Revenue,
5.00%, 6/1/18, Callable 6/1/15 @ 100,
MBIA ................................................ 1,000 1,091
Williamson County, GO, 6.00%, 3/1/08, OID 500 537
Williamson County, GO, 5.00%, 3/1/11 .................. 1,000 1,083
Williamson County, GO, 5.10%, 3/1/14,
Prerefunded 3/1/10 @ 100, OID ....................... 550 593
-------
TOTAL MUNICIPAL BONDS ................................. 33,687
-------
INVESTMENT COMPANIES (0.4%)
AIM Tax-Free Money Market Fund ........................ 147,054 147
-------
TOTAL INVESTMENT COMPANIES ............................ 147
-------
AFFILIATED SECUIRITIES (1.6%)
AmSouth Tax-Exempt Fund ............................... 555,978 556
-------
TOTAL AFFILIATED SECURITIES ........................... 556
-------
TOTAL INVESTMENTS
(Cost $33,533)^ -- 98.7% ............................ 34,390
Other assets in excess of liabilities -- 1.3% ......... 457
-------
NET ASSETS -- 100.0% .................................. $34,847
=======
See notes to schedule of portfolio investments.
72
---------------------------------------------------
PRIME MONEY MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
COMMERCIAL PAPER -- DOMESTIC (55.2%)
Abbey National PLC, 3.48%, 10/11/05 ............ $ 12,000 $ 11,918
ABN AMRO Financial Services,
3.55%, 10/19/05 .............................. 11,500 11,411
AIG Funding, Inc., 3.38%, 8/29/05 .............. 11,500 11,470
America Honda Finance Corp.,
3.28%, 8/16/05 ............................... 12,500 12,483
American Express Credit Corp.,
3.14%, 8/3/05 ................................ 12,500 12,498
American General Finance Corp.,
3.17%, 8/1/05 ................................ 12,500 12,499
Bank of America Corp., 3.47%, 10/6/05 .......... 14,500 14,409
Barclays PLC, 3.39%, 9/21/05 ................... 12,000 11,943
Bear Stearns Cos., Inc., 3.27%, 9/6/05 ......... 12,750 12,709
CIT Group, Inc., 3.53%, 10/21/05 ............... 12,000 11,906
Citicorp, 3.44%, 9/19/05 ....................... 11,750 11,695
Credit Suisse First Boston LLC,
3.30%, 9/9/05 ................................ 14,000 13,950
Deutsche Bank AG, 3.41%, 9/26/05 ............... 12,000 11,937
General Electric Capital Corp.,
3.55%, 10/17/05 .............................. 17,500 17,368
GlaxoSmithKline Pharmaceuticals Ltd.,
3.34%, 9/15/05 ............................... 15,000 14,938
HSBC Finance Corp., 3.33%, 9/12/05 ............. 12,000 11,954
ING Funding Corp., 3.49%, 9/26/05 .............. 11,750 11,687
International Lease Finance Corp.,
3.61%, 10/24/05 .............................. 11,500 11,404
Nationwide Life Insurance Co.,
3.15%, 8/1/05 ................................ 6,000 6,000
Procter & Gamble Co., 3.33%, 8/23/05 ........... 16,406 16,374
Royal Bank of Scotland Group PLC,
3.25%, 8/30/05 ............................... 12,500 12,469
Societe Generale North America, Inc.
3.32%, 9/12/05 ............................... 12,500 12,452
Toyota Motor Credit Corp.,
3.46%, 10/4/05 ............................... 17,000 16,896
UBS Financial Services, Inc.,
3.44%, 10/3/05 ............................... 11,500 11,431
Wal-Mart Stores, Inc., 3.42%, 8/31/05 .......... 17,000 16,952
--------
TOTAL COMMERCIAL PAPER --
DOMESTIC ..................................... 320,753
--------
U.S. GOVERNMENT AGENCIES (17.5%)
Fannie Mae (7.2%)
3.04%, 8/5/05 # ................................ 10,900 10,896
3.13%, 8/10/05 ................................. 12,500 12,490
3.23%, 9/7/05 .................................. 19,000 18,938
Federal Home Loan Bank (2.2%)
3.16%, 8/19/05 # ............................... 12,500 12,480
Freddie Mac (8.0%)
3.46%, 9/27/05 ................................. 18,000 17,905
3.64%, 10/25/05 ................................ 17,750 17,604
3.60%, 11/1/05 # ............................... 11,500 11,399
--------
TOTAL U.S. GOVERNMENT
AGENCIES ..................................... 101,712
--------
Continued
Shares
or
Principal
Amount Value
----------- --------
REPURCHASE AGREEMENTS (27.5%)
Goldman Sachs Group, Inc, 3.30%,
8/1/05, dated 7/29/05, with maturity
value of $79,628 (Fully Collateralized
by U.S. Treasury Note Securities with
MV of $81,996,967) ........................... $ 79,606 $ 79,606
Wachovia Securities LLC, 3.31%, 8/1/5,
dated 7/29/05, with maturity value
of $79,628 (Fully Collateralized by
Federal Government Pooled Securities
with MV of $81,198,213) ...................... 79,606 79,606
--------
TOTAL REPURCHASE AGREEMENTS 159,212
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (6.0%)
BNY Institutional Cash Reserve Fund ............ 34,529,210 34,529
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING ........................... 34,529
--------
TOTAL INVESTMENTS
(Cost $616,206)^^ -- 106.2% .................. 616,206
Liabilities in excess of other
assets -- (6.2)% ............................. (36,201)
--------
NET ASSETS -- 100.0% ........................... $580,005
========
See notes to schedule of portfolio investments.
73
- ---------------------------------------------------
TREASURY RESERVE
MONEY MARKET FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Principal
Amount Value
----------- --------
U.S. TREASURY BILLS* (26.9%)
2.95%, 8/4/05 # ....................... $ 6,000 $ 5,998
2.89%, 8/11/05 # ...................... 6,000 5,995
2.90%, 8/18/05 # ...................... 6,000 5,992
2.98%, 9/1/05 # ....................... 6,000 5,985
2.92%, 9/8/05 # ....................... 6,000 5,982
3.01%, 10/6/05 # ...................... 5,000 4,973
3.18%, 11/3/05 # ...................... 5,000 4,959
3.33% 12/1/05 # ....................... 5,000 4,944
--------
TOTAL U.S. TREASURY BILLS ............. 44,828
--------
REPURCHASE AGREEMENTS (73.4%)
Deutsche Bank, 3.24%, 8/1/05,
dated 7/29/05 with maturity value
of $39,253 (Fully Collateralized by
U.S. Treasury Note Securities with
MV of $40,028,223) .................. 39,242 39,242
Morgan Stanley, 3.24%, 8/1/05,
dated 7/29/05 with maturity value
of $41,611 (Fully Collateralized by
U.S. Treasury Note Securities with
MV of $42,432,564) .................. 41,600 41,600
Wachovia, Bank 3.24%, 8/1/05,
dated 7/29/05 with maturity value
of $41,611 (Fully Collateralized by
U.S. Treasury Note Securities with
MV of $42,432,564) .................. 41,600 41,600
--------
TOTAL REPURCHASE
AGREEMENTS .......................... 122,442
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (26.1%)
Morgan Stanley & Co. Inc., 3.30%,
8/1/05, dated 7/29/05 with a maturity
value of $43,530 .................... 38,541,000 38,541
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING .................. 38,541
--------
TOTAL INVESTMENTS
(Cost $205,811)^^ -- 126.4% ......... 205,811
Liabilities in excess of other
assets -- (26.4)% ................... (39,004)
--------
NET ASSETS -- 100.0% .................. $166,807
========
See notes to schedule of portfolio investments.
---------------------------------------------------
TAX-EXEMPT
MONEY MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
------------- -----------
DEMAND NOTES (93.5%)
Alabama (7.9%)
Alabama Housing Finance Authority,
Multi-Family Housing Revenue, Rime
Village Huntsville Project, Series B,
2.27%, 6/15/26, FNMA .......................... $ 1,500 $ 1,500
Columbia Industrial Development Board,
PCR, Alabama Power Co. Project,
Series D, 2.40%, 10/1/22 ...................... 2,000 2,000
Daphne-Villa Mercy Special Care Facilities
Financing Authority, Revenue, Mercy
Medical Project, 2.33%, 12/1/30, LOC:
Southtrust Bank NA ............................ 1,400 1,400
Mobile Industrial Development Board,
PCR, Alabama Power Co. Project,
Series B, 2.42%, 8/1/17 ....................... 2,000 2,000
Port City Medical Clinic Board, Revenue,
Infirmary Health, Series B, 2.35%,
2/1/25, AMBAC, SPA: The Bank of
Nova Scotia and KBC Bank NV ................... 2,000 2,000
Special Care Facilities Financing Authority,
Montgomery Hospital Revenue, 2.24%,
4/1/15, FGIC, SPA:SPI ......................... 1,300 1,300
University of Alabama, Revenue University
Hospital Project, .............................
Series B, 2.28%, 9/1/31 ......................... 1,000 1,000
--------
11,200
--------
Alaska (4.3%)
State Housing Finance Corp., 2.35%,
12/1/24, FSA, SPA: Dexia Credit Local ......... 3,000 3,000
Valdez, Exxon Mobile, MarineTerminal
Revenue, 2.19%, 12/1/29 ....................... 3,000 3,000
--------
6,000
--------
Arizona (2.4%)
Phoenix Industrial Development Authority,
Multi-Family Housing Revenue,
Del Mar Terrace, Series A, 2.35%,
10/1/29, FHLMC ................................ 3,450 3,450
--------
California (3.7%)
Dept. of Water Resources Supply, Revenue,
Series C-5, 2.28%, 5/1/22 ..................... 2,325 2,325
State Economic Recovery, Revenue,
Series C-5, 2.21%, 7/1/23, SPA:
Bank of America NA ............................ 2,900 2,900
--------
5,225
--------
Colorado (1.1%)
Colorado Health Facilities Authority,
Revenue, North Colorado Medical
Center, 2.25%, 5/15/20, MBIA, SPA:
Dexia Bank .................................... 1,500 1,500
--------
Continued
74
---------------------------------------------------
TAX-EXEMPT
MONEY MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
---------- --------
DEMAND NOTES, continued
Connecticut (4.3%)
Connecticut State Health & Educational
Facilities Authority, Revenue, Yale
University, Series T-1, 2.24%, 7/1/29 ......... $ 5,000 $ 5,000
Connecticut State Health & Educational
Facilities Authority, Revenue, Yale
University, Series V-1, 2.35%, 7/1/36 ......... 1,000 1,000
--------
6,000
--------
District of Columbia (2.1%)
District of Columbia Institute for
International Economics, Revenue,
2.35%, 6/1/25 ................................. 1,800 1,800
District Of Columbia, Multimodal,
Series B, 2.37%, 6/1/30 ....................... 1,200 1,200
--------
3,000
--------
Florida (7.8%)
Broward County Educational Facilities
Authority, Nova Southeastern University,
Revenue, 2.33%, 4/1/24, LOC:
Bank of America NA ............................ 3,200 3,200
Hillsborough County Industrial
Development Authority, Goodwill
Industries, Suncoast Project, 2.35%,
11/1/21, LOC: SunTrust Bank ................... 3,000 3,000
Orange County Housing Finance Authority,
Multi-Family Housing Revenue, Post
Lake Apartments Project, 2.35%, 6/1/25,
FNMA .......................................... 1,915 1,915
Sarasota County Public Hospital Board,
Revenue, Sarasota Memorial Hospital,
Series A, 2.40%, 7/1/37, AMBAC ................ 2,925 2,925
--------
11,040
--------
Georgia (12.8%)
Appling County, Development Authority,
PCR, Georgia Power Co., 2.33%, 9/1/29 ......... 1,900 1,900
Burke County Development Authority,
PCR, Oglethorpe Power Corp., Series A,
2.33%, 1/1/20, AMBAC, SPA: Morgan
Guaranty Trust ................................ 1,400 1,400
Burke County Development Authority,
PCR, Oglethorpe Power Corporation
Project, Series C, 2.33%, 1/1/18, MBIA,
SPA: JP Morgan Chase Bank ..................... 4,500 4,500
Cobb County Housing Authority, Multi-
Family Housing Revenue, Post Mill
Project, 2.35%, 6/1/25, FNMA .................. 1,000 1,000
Fulton County Development Authority,
Revenue, Lovett School Project, 2.35%,
7/1/26, LOC: SunTrust Bank .................... 2,200 2,200
Continued
Shares
or
Principal
Amount Value
------------------ -------------
DEMAND NOTES, continued
Georgia, continued
Macon-Bibb County Georgia Hospital
Authority, Revenue Anticipation
Certificates, 2.33%, 5/1/30, LOC:
SunTrust Bank ................................. $ 975 $ 975
Monroe County Development Authority,
PCR, Oglethorpe Power Corp., Series B,
2.33%, 1/1/20, AMBAC, SPA: Morgan
Guaranty Trust ................................ 1,000 1,000
Municipal Electric Authority, Revenue,
Project One, Sub-Series D, 2.28%,
1/1/20, MBIA, LOC:Bayerische
Landesbank, US Bank Trust NA,
Westdeutsche Landesbank, Landesbank
Hessen-Thueringen ............................. 5,000 5,001
--------
17,976
--------
Illinois (6.0%)
Chicago O'Hare International Airport,
Revenue, 2.28%, 1/1/15 ........................ 1,260 1,260
Elmhurst, Revenue, Joint Common
Accredation, 2.35%, 7/1/18, LOC: Dexia
Credit Local de France ........................ 4,065 4,065
Illinois Developmental Finance Authority,
Revenue, Provena Health, Series C,
2.33%, 5/1/28, MBIA, SPA:
Bank One NA ................................... 3,100 3,100
--------
8,425
--------
Indiana (3.4%)
Indiana Health Facility Financing
Authority, Revenue, Series I,
2.35%, 3/1/33 ................................. 2,800 2,800
Purdue University, Student Fee Revenue,
Series T, 2.40%, 7/1/27, SPA:
Bank One NA ................................... 2,000 2,000
--------
4,800
--------
Maryland (0.1%)
Washington Suburban Sanitation District,
Bond Anticipation Notes, Series A,
2.37%, 6/1/23, SPA: Landesbank
Hessen-Thueringen ............................. 200 200
--------
Massachusetts (2.1%)
State Water Resource Authority, GO,
Series C, 2.35%, 8/1/20, LOC:
Landesbank Hessen-Thueringen .................. 2,900 2,900
--------
Michigan (1.5%)
Huron County Economic Development,
Huron Memorial Hospital Project,
Corporate Limited Obligation Revenue,
2.35%, 10/1/28, LOC: Fifth Third Bank ......... 2,150 2,150
--------
Continued
75
- ---------------------------------------------------
TAX-EXEMPT
MONEY MARKET FUND
Schedule of Portfolio Investments
- ---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
---------- --------
DEMAND NOTES, continued
Missouri (2.6%)
State Health & Educational Facilities
Authority, Dialysis Clinic, Inc. Project,
Revenue, 2.35%, 11/1/20 ............................. $ 3,600 $ 3,600
--------
Nevada (0.7%)
Clark County Improvement District, Local
Improvements, Special Improvement
128-A, 2.30%, 2/1/21, LOC: Bayerische
Hypo-Und Vereinsbank ................................ 1,000 1,000
--------
New York (7.5%)
New York, GO, Series F-3, 2.27%, 2/15/13,
LOC: Morgan Guaranty Trust .......................... 5,000 5,000
New York, GO, Sub-Series A-7, 2.21%,
11/1/24, AMBAC, SPA: Bank of
Nova Scotia ......................................... 1,400 1,400
New York, GO, Sub-Series B-2, 2.23%,
8/15/20, LOC: Morgan Guaranty Trust ................. 2,160 2,160
New York, GO, Sub-Series E2, 2.23%,
8/1/20, LOC: JP Morgan Chase Bank ................... 2,000 2,000
--------
10,560
--------
North Carolina (2.2%)
Medical Care Community Hospital,
Duke Uuniversity Hospital, Revenue,
Series B, 2.32%, 6/1/15, LOC:
Wachovia Bank N.A. .................................. 2,000 2,000
North Carolina State University,
Centennial Campus, Revenue, Series A,
2.30%, 12/15/19 ..................................... 1,150 1,150
--------
3,150
--------
South Dakota (2.1%)
Housing Development Authority, Home
Ownership Mortgages, Series C-2,
2.25%, 5/1/32, SPA-Landesbank
Hessen-Thueringen ................................... 3,000 3,000
--------
Tennessee (10.1%)
Blount County Health Educational &
Housing Facilities Board, Revenue,
Presbyterian Homes Tennessee Project,
2.35%, 1/1/19, LOC: SunTrust Bank ................... 1,100 1,100
Chattanooga Health Educational & Housing
Facility Board, Baylor School Project,
Revenue, 2.35%, 1/1/23, LOC: SunTrust
Bank ................................................ 2,500 2,500
Clarksville Public Building Authority,
Revenue, 2.35%, 7/1/16, LOC: SunTrust
Bank ................................................ 2,700 2,700
Dickson County, Tennessee Industrial
Development Board, Revenue,
Renaissance Learning Center, 2.35%,
11/1/12, LOC: SunTrust Bank Nashville ............... 1,500 1,500
Jackson Energy Authority Water Service
Revenue, 2.34%, 12/1/23, LOC: FSA ................... 2,345 2,345
Continued
Shares
or
Principal
Amount Value
---------- --------
DEMAND NOTES, continued
Tennessee, continued
Metropolitan Government, Nashville &
Davidson County, Industrial
Development Board, Revenue, Country
Music Hall of Fame, 2.35%, 6/1/22,
LOC: Bank of America NA ............................. $ 2,685 $ 2,685
Sevier County, Tennessee Public Building
Authority, Local Government Series
III-A-1, Revenue, 2.35%, 6/1/07,
AMBAC, SPA: Landesbank
Hessen-Thueringen ................................... 1,350 1,350
--------
14,180
--------
Texas (1.4%)
Coastal Bend Health Facility Development
Corp., Incarnate Word Health Services,
Series B, 2.33%, 8/15/28 ............................ 2,000 2,000
--------
Virginia (1.4%)
Clarke County Industrial Development
Authority, Hospital Facilities, Revenue,
2.37%, 1/1/30, FSA, SPA: The Chase
Manhattan Bank ...................................... 1,960 1,960
--------
Washington (3.0%)
Washington State, GO, Series VR 96B,
2.25%, 6/1/20, SPA: Landesbank
Hessen-Thueringen ................................... 4,200 4,200
--------
Wyoming (3.0%)
Community Development Authority,
Single Family Mortgage, Series A,
2.30%, 12/1/32 ...................................... 3,000 3,000
Lincoln County PCR, Project D,
2.19%, 11/1/14 ...................................... 1,300 1,300
--------
4,300
--------
TOTAL DEMAND NOTES .................................... 131,816
--------
MUNICIPAL BONDS (2.1%)
Texas (2.1%)
State Tax & Revenue Anticipation Notes,
3.00%, 8/31/05 ...................................... 3,000 3,003
--------
TOTAL MUNICIPAL BONDS ................................. 3,003
--------
INVESTMENT COMPANIES (4.3%)
AIM Tax-Free Money Market Fund ........................ 638,050 638
Goldman Sachs Tax-Free Money
Market Fund ......................................... 5,492,220 5,492
--------
TOTAL INVESTMENT COMPANIES ............................ 6,130
--------
TOTAL INVESTMENTS
(Cost $140,949)^^ -- 99.9% .......................... 140,949
Other assets in excess of liabilities -- 0.1% ......... 95
--------
NET ASSETS -- 100.0% .................................. $141,044
========
See notes to schedule of portfolio investments.
76
---------------------------------------------------
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Schedule of Portfolio Investments
---------------------------------------------------
July 31, 2005
(amounts in thousands, except shares)
Shares
or
Principal
Amount Value
----------- --------
COMMERCIAL PAPER -- DOMESTIC (51.7%)
Abbey National PLC, 3.48%, 10/11/05 ............... $ 8,500 $ 8,443
ABN AMRO Financial Services,
3.55%, 10/19/05 ................................. 8,500 8,434
AIG Funding, Inc., 3.37%, 8/29/05 ................. 9,000 8,976
America Honda Finance Corp.,
3.28%, 8/16/05 .................................. 7,500 7,490
American Express Credit Corp.,
3.15%, 8/4/05 ................................... 7,500 7,498
American General Finance Corp.,
3.18%, 8/2/05 ................................... 7,500 7,499
Bank of America Corp., 3.47%, 10/6/05 ............. 10,500 10,434
Barclays PLC, 3.39%, 9/21/05 ...................... 7,500 7,464
Bear Stearns Cos., Inc., 3.27%, 9/6/05 ............ 7,750 7,725
CIT Group, Inc., 3.53%, 10/21/05 .................. 8,500 8,434
Citicorp, 3.44%, 9/19/05 .......................... 8,750 8,709
Credit Suisse First Boston LLC,
3.30%, 9/9/05 ................................... 8,500 8,470
Deutsche Bank AG, 3.41%, 9/26/05 .................. 7,500 7,461
General Electric Capital Corp.,
3.55%, 10/17/05 ................................. 13,000 12,902
GlaxoSmithKline Pharmaceuticals, Ltd.,
3.34%, 9/15/05 .................................. 11,000 10,954
HSBC Finance Corp., 3.33%, 9/12/05 ................ 7,500 7,471
ING Funding Corp., 3.49%, 9/26/05 ................. 8,750 8,703
International Lease Finance Corp.,
3.25%, 8/18/05 .................................. 7,550 7,538
Nationwide Life insurance Co.,
3.15%, 8/1/05 ................................... 11,000 11,000
Procter & Gamble Co., 3.33%, 8/23/05 .............. 10,000 9,981
Royal Bank of Scotland Group PLC,
3.25%, 8/30/05 .................................. 7,500 7,481
Societe Generale North America,
Inc., 3.32% ..................................... 7,500 7,471
Toyota Motor Credit Corp., 3.46%, 10/4/05 ......... 11,000 10,933
UBS Financial Services, Inc.,
3.44%, 10/3/05 .................................. 7,500 7,455
Wal-Mart Stores, Inc., 3.42%, 8/31/05 ............. 13,000 12,963
--------
TOTAL COMMERCIAL PAPER --
DOMESTIC ........................................ 221,889
--------
U.S. GOVERNMENT AGENCIES (16.8%)
Fannie Mae (6.5%)
3.05%, 8/3/05 ..................................... 9,000 8,998
3.13%, 8/10/05 .................................... 7,500 7,494
3.23%, 9/7/05 ..................................... 11,500 11,463
Federal Home Loan Bank (1.7%)
3.16%, 8/19/05 # .................................. 7,500 7,488
Freddie Mac (8.6%)
3.44%, 10/11/05 # ................................. 13,000 12,912
3.64%, 10/25/05 ................................... 13,250 13,141
3.60%, 11/1/05 # .................................. 11,000 10,904
--------
TOTAL U.S. GOVERMENT AGENCIES ..................... 72,400
--------
Continued
Shares
or
Principal
Amount Value
--------------- -----------
REPURCHASE AGREEMENTS (31.8%)
Goldman Sachs Group, Inc., 3.30%,
8/1/05, dated 7/29/05, with maturity
value of $68,417 (Fully Collateralized
by U.S. Treasury Note Securities with
MV of $70,450,375) .............................. $ 68,398 $ 68,398
Wachovia Securities LLC, 3.31%,
8/1/05, dated, 7/29/05, with maturity
value of $68,417 (Fully Collateralized
by Federal Government Pooled Securities
with MV of $69,765,891) ......................... 68,398 68,398
--------
TOTAL REPURCHASE AGREEMENTS ....................... 136,796
--------
SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING (6.7%)
BNY Institutional Cash Reserve Fund ............... 28,707,972 28,708
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING .............................. 28,708
--------
TOTAL INVESTMENTS
(Cost $459,793)^^ -- 107.0%...................... 459,793
Liabilities in excess of other
assets -- (7.0)% ................................ (29,917)
--------
NET ASSETS -- 100.0% .............................. $429,876
========
See notes to schedule of portfolio investments.
77
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Schedules of Portfolio Investments
July 31, 2005
- ---------------------------------------------------
- --------------
(a) Represents non-income producing security.
(b) Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under The Security Act of 1933, as amended.
These securities have been deemed liquid under guidelines established
by the Board of Trustees.
(c) Variable Rate Security. Rate presented represents rate in effect at
July 31, 2005. Put and demand features exist allowing the fund to
require the repurchase of the instrument within variable time periods
including daily, weekly, monthly and semi-annually.
^ Represents cost for financial reporting purposes and differs from
cost basis for federal income tax purposes by the amount of the
losses recognized for financial reporting purposes in excess of
federal income tax reporting.
^^ Cost and value for federal income tax and financial reporting
purposes are the same.
* Rates disclosed represent yield effective at purchase.
** Due to rounding, figure is below thousand-dollar threshold.
+ Amount is less than 0.1%.
++ A portion of this security is used as collateral for securities on
loan.
# A portion or all of this security is out on loan as of July 31, 2005.
## Fair valued security. (See Note 2)
ACA -- ACA Certificate of Bond Insurance
ADR -- American Depositary Receipt
AMBAC -- Insured by AMBAC Indemnity Corp.
BNY -- Bank of New York
ETM -- Escrowed to Maturity
FGIC -- Insured by Financial Guaranty Insurance Corp.
FHA -- Insured by Federal Housing Administration
FHLMC -- Federal Home Loan Mortgage Corp. Enhancement
FNMA -- Insured by Federal National Mortgage Assoc.
FSA -- Insured by Financial Security Assurance, Inc.
GO -- General Obligation
LLC -- Limited Liability Company
LOC -- Letter of Credit
MV -- Market Value
MBIA -- Insured by Municipal Bond Insurance Assoc.
MTN -- Medium Term Note
NA -- National Association
OID -- Original Issue Discount
PCR -- Pollution Control Revenue
PLC -- Public Limited Company
PSF-GTD -- Permanent School Fund Guaranty
PUFG -- Permanent University Fund Guaranty
SBG -- School Board Guaranty
SCSDE -- South Carolina School District Enhancement
SPA -- Standby Purchase Agreement
SPI -- Securities Purchase, Inc.
ULC -- Unlimited Liability Company
78
---------------------------------------------------
AMSOUTH FUNDS
Notes to Schedules of Portfolio Investments
July 31, 2005
---------------------------------------------------
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation/
Appreciation Depreciation Depreciation
-------------- -------------- --------------
Value Fund ....................................................... $ 93,099 $ (6,146) $ 86,953
Select Equity Fund ............................................... 16,059 (3,275) 12,784
Enhanced Market Fund ............................................. 27,450 (4,252) 23,198
Large Cap Fund ................................................... 110,058 (21,662) 88,396
Capital Growth Fund .............................................. 49,636 (4,743) 44,893
Mid Cap Fund ..................................................... 46,614 (3,662) 42,952
Small Cap Fund ................................................... 48,030 (1,401) 46,629
International Equity Fund ........................................ 155,414 (5,645) 149,769
Balanced Fund .................................................... 15,910 (1,929) 13,981
Strategic Portfolios: Aggressive Growth Portfolio ................ 9,805 (8) 9,797
Strategic Portfolios: Growth Portfolio ........................... 8,590 (388) 8,202
Strategic Portfolios: Growth & Income Portfolio .................. 14,268 (1,406) 12,862
Strategic Portfolios: Moderate Growth & Income Portfolio ......... 3,840 (663) 3,177
Government Income Fund ........................................... 596 (1,681) (1,085)
Limited Term Bond Fund ........................................... 313 (2,720) (2,407)
High Quality Bond Fund ........................................... 18,858 (3,545) 15,313
High Quality Municipal Bond Fund ................................. 9,849 (908) 8,941
Florida Tax-Exempt Fund .......................................... 1,084 (261) 823
Tennessee Tax-Exempt Fund ........................................ 920 (63) 857
The investment concentrations for the Equity Funds as a percentage of net
assets, by industry, as of July 31, 2005, were as follows:
Select Enhanced Large Capital
Value Equity Market Cap Growth Mid Cap Small Cap
Fund Fund Fund Fund Fund Fund Fund
--------- -------- ---------- --------- --------- --------- -----------
Affiliated Securities ......... + 2.1% 0.7% -- -- 3.5% 1.2%
Cash Equivalents .............. 3.4% -- 0.9% 0.8% 7.7% 6.1% 16.0%
Consumer Discretionary ........ 9.5% 34.6% 9.5% 15.9% 16.9% 16.5% 15.8%
Consumer Staples .............. 3.0% 24.2% 8.8% 9.8% 10.4% 3.0% 3.7%
Energy ........................ 7.3% -- 10.7% -- 1.5% 9.9% 10.0%
Financials .................... 37.2% -- 17.1% 3.2% 5.6% 16.4% 18.8%
Health Care ................... 7.7% 2.2% 12.9% 26.6% 21.6% 10.4% 23.1%
Industrials ................... 10.5% 27.8% 13.8% 10.9% 13.3% 14.7% 15.4%
Information Technology ........ 5.4% 4.5% 15.7% 32.1% 26.5% 12.9% 10.1%
Investment Companies .......... 0.9% -- -- 1.6% 2.1% -- --
Materials ..................... 6.5% 4.1% 4.0% -- -- 5.5% --
Municipal Bonds ............... -- -- -- -- -- -- --
Sovereign ..................... -- -- -- -- 2.1% -- --
Telecommunication Services .... 4.9% -- 3.1% -- -- 0.3% --
Utilities ..................... 3.0% -- 3.6% -- -- 6.9% 1.8%
Strategic
Strategic Strategic Portfolios:
Portfolios: Strategic Portfolios: Moderate
International Aggressive Portfolios: Growth & Growth &
Equity Balanced Growth Growth Income Income
Fund Fund Portfolio Portfolio Portfolio Portfolio
--------------- ---------- ------------- ------------- ------------- ------------
Affiliated Securities ......... -- + -- -- -- --
Cash Equivalents .............. 9.6% 14.9% -- -- -- --
Consumer Discretionary ........ 18.4% 8.6% -- -- -- --
Consumer Staples .............. 3.5% 8.9% -- -- -- --
Energy ........................ 3.1% 3.4% -- -- -- --
Financials .................... 39.4% 18.7% -- -- -- --
Health Care ................... 0.5% 9.7% -- -- -- --
Industrials ................... 12.5% 7.7% -- -- -- --
Information Technology ........ 0.9% 11.7% -- -- -- --
Investment Companies .......... -- 0.8% 100.1% 100.6% 100.0% 100.1%
Materials ..................... 9.9% 2.0% -- -- -- --
Municipal Bonds ............... -- 1.0% -- -- -- --
Sovereign ..................... -- 21.3% -- -- -- --
Telecommunication Services .... 7.1% 3.6% -- -- -- --
Utilities ..................... 4.6% 1.8% -- -- -- --
- ---------
+ Amount is less than 0.1%.
The investment concentrations for the Strategic Portfolios as a percentage of
net assets, by industry, as of July 31, 2005, were as follows:
Strategic Strategic
Portfolios: Strategic Strategic Portfolios:
Aggressive Portfolios: Portfolios: Moderate
Growth Growth Growth & Income Growth & Income
Portfolio Portfolio Portfolio Portfolio
------------- ------------- ----------------- ----------------
Bond Funds ................. + 22.9% 36.8% 47.4%
Equity Funds ............... 99.2% 76.8% 62.3% 51.8%
Money Market Funds ......... 0.9% 0.9% 0.9% 0.9%
- ---------
+ Amount is less than 0.1%.
See notes to financial statements.
79
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Schedules of Portfolio Investments
July 31, 2005
- ---------------------------------------------------
The investment concentrations for the Bond and Money Market Funds as a
percentage of net assets, by industry, as of July 31, 2005, were as follows:
Institutional
Government Limited High Quality Prime Prime Obligations
Income Term Bond Bond Money Market Money Market
Fund Fund Fund Fund Fund
------------ ----------- -------------- -------------- ------------------
Aerospace/Defense ........................... -- 1.4% 0.4% -- --
Affiliated Securities ....................... 1.8% 0.7% 0.7% -- --
Aluminum .................................... -- -- 0.7% -- --
Automotive .................................. -- -- -- 5.1% 4.3%
Automotive -- Finance ....................... -- 3.1% 1.6% -- --
Banking ..................................... -- 9.5% 5.2% 2.5% 2.4%
Beverages ................................... -- 2.9% 0.9% -- --
Broadcasting / Cable ........................ -- 0.9% -- -- --
Brokerage Services .......................... -- 5.1% 1.4% 8.6% 7.9%
Building Products ........................... -- -- 0.3% -- --
Cash Equivalents ............................ 2.5% 11.6% 22.5% 33.5% 38.5%
Computers & Peripherals ..................... -- 0.6% 0.8% -- --
Consumer Discretionary ...................... -- -- 2.0% -- --
Consumer Goods .............................. -- -- 1.5% 2.8% 2.3%
Consumer Products ........................... -- -- 0.1% -- --
Cosmetics / Personal Care ................... -- 2.9% 1.0% -- --
Data Processing / Management ................ -- 1.1% -- --
Electric .................................... -- -- -- 3.0% 3.0%
Electric -- Integrated ...................... -- -- 1.6% -- --
Electrical & Electronic ..................... -- -- 2.0% -- --
Electronic Components / Instruments ......... -- -- 0.3% -- --
Financial Services .......................... -- 6.0% 2.9% 10.4% 9.0%
Food Products & Services .................... -- 0.7% 0.9% -- --
Foreign Banking ............................. -- -- -- 14.3% 12.7%
Foreign Government .......................... -- -- 0.5% -- --
Health Care ................................. -- -- 0.8% -- --
Hospital & Medical Service Plans ............ -- 1.2% -- -- --
Industrial Goods & Services ................. -- -- 0.8% -- --
Insurance ................................... -- 9.0% 4.8% 3.0% 4.6%
Investment Companies ........................ 2.2% 0.6% 0.8% -- --
Machinery -- Construction & Mining .......... -- 1.5% 0.9% -- --
Machinery -- Farm ........................... -- -- 1.1% -- --
Manufacturing ............................... -- -- -- -- --
Materials ................................... -- 1.5% -- -- --
Meat Packing Plants ......................... -- -- 1.3% -- --
Mortgage Banks .............................. -- -- -- -- --
Municipal Bonds ............................. -- -- 0.2% -- --
Newspapers .................................. -- 1.2% 0.5% -- --
Oil & Gas Production & Services ............. -- -- 1.2% -- --
Pharmaceuticals ............................. -- 2.5% 0.6% 2.6% 2.5%
Power Driven Hand Tools ..................... -- -- 0.7% -- --
Printing .................................... -- 0.6% -- -- --
Restaurants ................................. -- 1.8% 1.4% -- --
Retail ...................................... -- 3.5% 2.3% 2.9% 3.0%
Sovereign ................................... 95.6% 39.1% 53.7% 17.5% 16.8%
Utilities -- Electric & Gas ................. -- 1.4% 1.2% -- --
Utilities -- Telecommunications ............. -- 1.3% 0.4% -- --
- ---------
+ Amount is less than 0.1%.
See notes to financial statements.
80
---------------------------------------------------
AMSOUTH FUNDS
Notes to Schedules of Portfolio Investments
July 31, 2005
---------------------------------------------------
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of July 31, 2005, were as follows:
High Quality
Municipal Florida Tennessee Tax-Exempt
Bond Tax-Exempt Tax-Exempt Money Market
Fund Fund Fund Fund
------------- ------------ ------------ -------------
Administration of General Economic Programs ........... -- 2.2% -- 4.2%
Affiliated Securities ................................. 0.1% 0.9% 1.6% --
Airports .............................................. -- -- 1.5% 0.9%
Air, Water, & Solid Waste ............................. 9.9% 4.4% 14.3% 8.1%
Colleges & Universities ............................... 12.0% 2.4% 1.5% 7.2%
Education -- Elementary & Secondary ................... 2.1% -- -- --
Educational Services .................................. 5.7% 14.0% -- 4.0%
Environmental Quality ................................. 2.9% -- -- 4.0%
Facilities Support Services ........................... -- -- -- 2.9%
Finance & Taxation .................................... 6.9% 11.2% -- 5.0%
General Obligation .................................... 41.1% 6.5% 59.9% 10.6%
Health Services ....................................... 1.9% -- 10.0% 10.4%
Highway & Street Construction ......................... 4.4% -- -- --
Hospital and Medical Services ......................... -- -- -- 3.8%
Hospitals ............................................. 1.1% 3.4% -- 7.7%
Housing ............................................... -- -- -- --
Industrial Revenue .................................... -- -- -- 3.5%
Investment Companies .................................. 0.8% 3.5% 0.4% 4.3%
Justice & Public Order ................................ -- 2.4% -- --
Local & Suburban Transportation ....................... -- 3.3% -- --
Mulit-Family Housing .................................. 2.1% -- -- 7.7%
Regulation & Administration of Transportation ......... 3.1% 4.7% -- --
Regulation & Administration of Utilities .............. 3.0% 16.3% 6.5% 3.5%
Single-Family Housing ................................. -- 0.7% 3.0% 5.8%
Urban & Community Development ......................... -- 14.4% -- 3.0%
Utilities ............................................. -- -- -- --
Water and Sewer ....................................... -- 8.9% -- 3.3%
- ---------
+ Amount is less than 0.1%.
The investment concentrations for the AmSouth Treasury Reserve Money Market
Fund as a percentage of net assets, by maturity schedule, as of July 31, 2005,
were as follows:
Days Percent
- ---- -------
1 - 2 ............. 73.1%
3 - 14 ............ 7.2%
15 - 29 ........... 3.6%
30 - 59 ........... 7.2%
60 - 89 ........... 3.0%
90 - 179 .......... 5.9%
See notes to financial statements.
81
- ---------------------------------------------------
AMSOUTH FUNDS July 31, 2005
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
- ---------------------------------------------------
Select Enhanced Large
Value Equity Market Cap
Fund Fund Fund Fund
-------- --------- -------- ---------
Assets:
Investments:
Investments, at cost ....................................................... $397,943 $ 110,940 $172,514 $ 243,043
Net unrealized appreciation/(depreciation) ................................. 86,952 12,726 23,148 88,395
-------- --------- -------- ---------
Investments, at value ...................................................... 484,895 123,666 195,662 331,438
Foreign currency, at value * ................................................ -- -- -- --
Cash ........................................................................ -- 126 78*** --
Collateral for securities loaned ............................................ 17,349 -- 1,695 2,729
Interest and dividends receivable ........................................... 948 45 225 127
Receivable from capital shares issued ....................................... 162 20 114 151
Receivable from investments sold ............................................ 7,384 689 -- --
Receivable from foreign tax withholding reclaims ............................ -- -- -- --
Appreciation/depreciation on futures ........................................ -- -- 15 --
Prepaid expenses and other assets ........................................... 17 8 8 17
-------- --------- -------- ---------
Total Assets .............................................................. 510,755 124,554 197,797 334,462
Liabilities:
Payable to custodian ........................................................ -- -- -- --
Payable for investments purchased ........................................... 4,165 -- -- --
Payable for securities loaned ............................................... 17,349 -- 1,695 2,729
Payable for capital shares redeemed ......................................... 1,633 161 174 304
Payable for margin variations on futures .................................... -- 20 13 --
Accrued expenses and other payables:
Investment advisory fees ................................................... 43 11 8 27
Administration fees ........................................................ 62 13 18 33
Shareholder servicing and distribution fees ................................ 78 26 28 59
Custodian fees ............................................................. 2 1 1 1
Other ...................................................................... 92 19 32 70
-------- --------- -------- ---------
Total Liabilities ......................................................... 23,424 251 1,969 3,223
-------- --------- -------- ---------
Net Assets .................................................................. $487,331 $ 124,303 $195,828 $ 331,239
======== ========= ======== =========
Composition of Net Assets:
Capital ..................................................................... $400,330 $ 107,387 $166,361 $ 209,899
Accumulated net investment income/(loss) .................................... 206 -- 59 --
Accumulated net realized gains/(losses) from investments, foreign currency
and futures transactions ................................................... (157) 4,131 6,208 32,945
Unrealized appreciation/(depreciation) from investments, futures, and
translation of assets and liabilities denominated in foreign currencies .... 86,952 12,785 23,200 88,395
-------- --------- -------- ---------
Net Assets .................................................................. $487,331 $ 124,303 $195,828 $ 331,239
======== ========= ======== =========
Class A Shares:
Net Assets .................................................................. $129,960 $ 20,115 $ 27,997 $ 112,198
Shares Outstanding .......................................................... 7,427 1,408 2,300 5,918
Net Asset Value and Redemption Price per share .............................. $ 17.50 $ 14.28 $ 12.17 $ 18.96
======== ========= ======== =========
Maximum Sales Load .......................................................... 5.50% 5.50% 5.50% 5.50%
======== ========= ======== =========
Maximum Offering Price per share (Net Assets Value/(100% -- maximum
sales charge)) ............................................................. $ 18.52 $ 15.11 $ 12.88 $ 20.06
======== ========= ======== =========
Class B Shares:
Net Assets .................................................................. $ 26,569 $ 17,158 $ 10,397 $ 22,192
Shares Outstanding .......................................................... 1,551 1,242 876 1,239
Net Asset Value and Offering Price per share** .............................. $ 17.13 $ 13.82 $ 11.88 $ 17.90
======== ========= ======== =========
Class I Shares:
Net Assets .................................................................. $330,802 $ 87,030 $157,434 $ 196,849
Shares Outstanding .......................................................... 18,937 6,063 12,912 10,318
Net Asset Value, Offering Price, and Redemption Price per share ............. $ 17.47 $ 14.36 $ 12.19 $ 19.08
======== ========= ======== =========
* Cost of foreign currency for the International Equity Fund is $342.
** Redemption Price per share varies by length of time shares are held.
*** Deposits for financial futures.
**** Represents investments in affiliates.
See notes to financial statements.
82
--------------------------------------------------
July 31, 2005 AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
--------------------------------------------------
Capital Small
Growth Mid Cap Cap International Balanced
Fund Fund Fund Equity Fund Fund
- ------------- --------------- ------------ --------------- ------------
$ 204,271 $209,331 $ 226,358 $342,799 $170,477
44,893 42,604 46,631 149,770 13,981
----------- -------- --------- -------- --------
249,164 251,935 272,989 492,569 184,458
-- -- -- 343 --
-- 337*** -- 17 --
19,087 15,350 43,604 47,195 27,498
119 142 13 459 1,202
66 240 118 226 111
-- 13 534 36 481
-- -- -- 174 --
-- -- -- -- --
18 28 9 11 8
----------- -------- --------- -------- --------
268,454 268,045 317,267 541,030 213,758
-- -- -- -- --
-- -- 177 48 --
19,087 15,350 43,604 47,195 27,498
170 192 178 212 956
-- 19 -- -- --
22 17 24 44 16
27 20 24 40 18
30 30 26 46 48
1 1 1 14 1
43 40 43 71 42
----------- -------- --------- -------- --------
19,380 15,669 44,077 47,670 28,579
----------- -------- --------- -------- --------
$ 249,074 $252,376 $ 273,190 $493,360 $185,179
=========== ======== ========= ======== ========
$ 312,069 $208,195 $ 255,627 $343,224 $148,486
-- 5 -- 4,741 (198)
(107,888) 1,224 (29,068) (4,375) 22,910
44,893 42,952 46,631 149,770 13,981
----------- -------- --------- -------- --------
$ 249,074 $252,376 $ 273,190 $493,360 $185,179
=========== ======== ========= ======== ========
$ 23,141 $ 23,920 $ 9,517 $ 24,193 $107,147
2,229 1,547 967 1,709 8,214
$ 10.38 $ 15.47 $ 9.85 $ 14.13 $ 13.05
=========== ======== ========= ======== ========
5.50% 5.50% 5.50% 5.50% 5.50%
=========== ======== ========= ======== ========
$ 10.98 $ 16.37 $ 10.42 $ 14.95 $ 13.81
=========== ======== ========= ======== ========
$ 6,699 $ 8,552 $ 2,589 $ 3,242 $ 25,270
695 579 279 235 1,944
$ 9.65 $ 14.77 $ 9.29 $ 13.78 $ 13.00
=========== ======== ========= ======== ========
$ 219,234 $219,904 $ 261,084 $465,924 $ 52,762
21,064 14,148 26,122 32,801 4,044
$ 10.41 $ 15.54 $ 10.00 $ 14.20 $ 13.05
=========== ======== ========= ======== ========
Strategic
Strategic Strategic Portfolios:
Portfolios: Strategic Portfolios: Moderate
Aggressive Portfolios: Growth & Growth &
Growth Growth Income Income
Portfolio Portfolio Portfolio Portfolio
- ------------------ ------------------ ------------------- ------------------
$ 44,800 $ 63,260 $ 99,497 $ 47,404
9,797 8,202 12,862 3,177
----------- ----------- ------------ -----------
54,597**** 71,462**** 112,359**** 50,581****
-- -- -- --
-- -- -- --
-- -- -- --
1 1 2 1
18 74 97 93
-- -- -- --
-- -- -- --
-- -- -- --
11 2 -- 1
----------- ----------- ------------ -----------
54,627 71,539 112,458 50,676
-- -- -- --
-- -- -- --
-- -- -- --
129 462 59 33
-- -- -- --
1 1 1 1
6 7 15 6
16 28 25 15
-- -- -- --
18 11 29 16
----------- ----------- ------------ -----------
170 509 129 71
----------- ----------- ------------ -----------
$ 54,457 $ 71,030 $ 112,329 $ 50,605
=========== =========== ============ ===========
$ 50,769 $ 65,704 $ 106,387 $ 47,074
-- 56 145 79
(6,109) (2,932) (7,065) 275
9,797 8,202 12,862 3,177
----------- ----------- ------------ -----------
$ 54,457 $ 71,030 $ 112,329 $ 50,605
=========== =========== ============ ===========
$ 23,168 $ 31,323 $ 51,709 $ 22,164
2,305 3,119 4,996 2,171
$ 10.05 $ 10.05 $ 10.35 $ 10.21
=========== =========== ============ ===========
5.50% 5.50% 5.50% 5.50%
=========== =========== ============ ===========
$ 10.63 $ 10.63 $ 10.95 $ 10.80
=========== =========== ============ ===========
$ 16,146 $ 31,615 $ 20,028 $ 14,313
1,680 3,190 1,943 1,410
$ 9.61 $ 9.91 $ 10.31 $ 10.15
=========== =========== ============ ===========
$ 15,143 $ 8,092 $ 40,591 $ 14,128
1,506 802 3,908 1,381
$ 10.05 $ 10.09 $ 10.39 $ 10.24
=========== =========== ============ ===========
See notes to financial statements.
83
- ---------------------------------------------------
AMSOUTH FUNDS July 31, 2005
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
- ---------------------------------------------------
High
Limited High Quality
Government Term Quality Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- -------- -------- ---------
Assets:
Investments:
Investments, at cost ....................................... $160,069 $168,017 $589,192 $ 296,420
Net unrealized appreciation ................................ (1,085) (2,406) 15,311 8,940
Repurchase agreements, at cost ............................. -- -- -- --
-------- -------- -------- ---------
Investments, at value ...................................... 158,984 165,611 604,503 305,360
Cash ........................................................ -- -- -- --
Collateral for securities loaned ............................ -- 17,936 137,872 --
Interest and dividends receivable ........................... 708 1,788 8,891 3,858
Receivable from capital shares issued ....................... 11 8 465 30
Receivable from investments sold ............................ -- -- -- 5,525
Prepaid expenses and other assets ........................... 13 7 8 6
-------- -------- -------- ---------
Total Assets .............................................. 159,716 185,350 751,739 314,779
Liabilities:
Dividends payable ........................................... -- -- -- --
Payable to custodian ........................................ -- -- -- --
Payable for investments purchased ........................... -- -- -- --
Payable for securities loaned ............................... -- 17,936 137,872 --
Payable for capital shares redeemed ......................... 76 726 529 351
Accrued expenses and other payables:
Investment advisory fees ................................... 9 9 34 14
Administration fees ........................................ 21 21 54 31
Shareholder servicing and distribution fees ................ 21 28 64 32
Custodian fees ............................................. 1 1 3 1
Other ...................................................... 30 32 121 53
-------- -------- -------- ---------
Total Liabilities ......................................... 158 18,753 138,677 482
-------- -------- -------- ---------
Net Assets .................................................. $159,558 $166,597 $613,062 $ 314,297
======== ======== ======== =========
Composition of Net Assets:
Capital ..................................................... $159,221 $172,334 $595,756 $ 300,742
Accumulated net investment income (loss) .................... (54) (560) (1,467) 897
Accumulated net realized gains/(losses) from
investments, foreign currency and futures transactions ..... 1,476 (2,771) 3,462 3,718
Unrealized appreciation from investments .................... (1,085) (2,406) 15,311 8,940
-------- -------- -------- ---------
Net Assets .................................................. $159,558 $166,597 $613,062 $ 314,297
======== ======== ======== =========
Class A Shares (a):
Net Assets .................................................. $ 17,549 $ 17,833 $ 50,219 $ 15,770
Shares Outstanding .......................................... 1,818 1,742 4,558 1,562
Net Asset Value and Redemption Price per share .............. $ 9.65 $ 10.24 $ 11.02 $ 10.09
======== ======== ======== =========
Maximum Sales Load .......................................... 4.00% 4.00% 4.00% 4.00%
======== ======== ======== =========
Maximum Offering Price per share (Net Assets
Value/(100% -- maximum sales charge)) ...................... $ 10.05 $ 10.67 $ 11.48 $ 10.51
======== ======== ======== =========
Class B Shares (b):
Net Assets .................................................. $ 6,165 $ 14,233 $ 6,298 $ 3,728
Shares Outstanding .......................................... 639 1,392 573 370
Net Asset Value and Offering Price per share* ............... $ 9.65 $ 10.22 $ 10.98 $ 10.07
======== ======== ======== =========
Class I Shares (c):
Net Assets .................................................. $135,844 $134,531 $556,545 $ 294,799
Shares Outstanding .......................................... 14,065 13,137 50,514 29,192
Net Asset Value, Offering Price, and Redemption
Price per share ............................................ $ 9.66 $ 10.24 $ 11.02 $ 10.10
======== ======== ======== =========
* Redemption price per share varies by length of time shares are held.
(a) Represents Class 2 Shares for the Institutional Prime Obligations Money
Market Fund.
(b) Represents Class 3 Shares for the Institutional Prime Obligations Money
Market Fund.
(c) Represents Class 1 Shares for the Institutional Prime Obligations Money
Market Fund.
See notes to financial statements.
84
---------------------------------------------------
July 31, 2005 AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
---------------------------------------------------
Institutional
Treasury Prime
Prime Reserve Tax-Exempt Obligations
Florida Tennessee Money Money Money Money
Tax-Exempt Tax-Exempt Market Market Market Market
Fund Fund Fund Fund Fund Fund
- ----------- ----------- -------- --------- ---------- --------------
$ 48,798 $ 33,533 $422,465 $ 44,828 $140,949 $ 294,289
822 857 -- -- -- --
-- -- 159,212 122,442 -- 136,796
--------- -------- -------- --------- -------- ---------
49,620 34,390 581,677 167,270 140,949 431,085
-- -- -- -- -- --
-- -- 34,529 38,541 -- 28,708
541 472 45 41 357 38
-- -- -- -- -- --
-- -- -- -- -- --
1 5 5 -- 3 4
--------- -------- -------- --------- -------- ---------
50,162 34,867 616,256 205,852 141,309 459,835
-- -- 1,275 371 191 1,064
-- -- -- -- -- --
-- -- -- -- -- --
-- -- 34,529 38,541 -- 28,708
107 -- -- -- -- --
2 2 175 52 31 26
7 7 46 16 6 29
7 5 104 18 12 49
-- -- 3 1 1 2
8 6 119 46 24 81
--------- -------- -------- --------- -------- ---------
131 20 36,251 39,045 265 29,959
--------- -------- -------- --------- -------- ---------
$ 50,031 $ 34,847 $580,005 $ 166,807 $141,044 $ 429,876
========= ======== ======== ========= ======== =========
$ 48,671 $ 33,891 $580,008 $ 166,805 $141,350 $ 429,876
56 7 -- -- -- --
482 92 (3) 2 (306) --
822 857 -- -- -- --
--------- -------- -------- --------- -------- ---------
$ 50,031 $ 34,847 $580,005 $ 166,807 $141,044 $ 429,876
========= ======== ======== ========= ======== =========
$ 4,073 $ 5,072 $409,511 $ 70,793 $ 34,067 $ 153,432
389 504 409,453 70,752 34,124 153,417
$ 10.48 $ 10.07 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========= ======== =========
4.00% 4.00%
========= ========
$ 10.92 $ 10.49
========= ========
$ 2,295 $ 1,948 $ 3,088 -- -- $ 45,871
220 193 3,087 -- -- 45,866
$ 10.45 $ 10.08 $ 1.00 -- -- $ 1.00
========= ======== ======== ========= ======== =========
$ 43,663 $ 27,827 $167,406 $ 96,014 $106,977 $ 230,573
4,164 2,766 167,355 95,953 107,208 230,546
$ 10.49 $ 10.06 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========= ======== =========
See notes to financial statements.
85
- ----------------------------------------------
AMSOUTH FUNDS For the year ended July 31, 2005
Statements of Operations
(amounts in thousands)
- ----------------------------------------------
Select Enhanced Large
Value Equity Market Cap
Fund Fund Fund Fund
-------- ------ -------- --------
Investment Income:
Dividends .................................................................. $ 10,956 $2,428 $ 3,877 $ 5,152
Dividends from affiliates .................................................. 43 32 34 --
Interest ................................................................... 2 -- 2 --
Securities lending ......................................................... 16 -- 4 10
--------- ------ ------- -------
Total Investment Income ................................................... 11,017 2,460 3,917 5,162
--------- ------ ------- -------
Expenses:
Investment advisory ........................................................ 4,041 1,043 722 2,807
Administration ............................................................. 844 217 314 588
Distribution -- Class B Shares ............................................. 212 122 80 176
Shareholder servicing -- Class A Shares .................................... 323 48 67 267
Shareholder servicing -- Class B Shares .................................... 71 41 27 59
Shareholder servicing -- Class I Shares .................................... 522 142 227 331
Accounting ................................................................. 103 27 39 72
Custodian .................................................................. 89 23 32 62
Transfer agent ............................................................. 157 53 64 154
Registration and filing .................................................... 9 7 6 23
Legal fees ................................................................. 159 38 57 112
Trustee fees ............................................................... 27 7 11 19
Chief Compliance Officer fees .............................................. 12 3 4 8
Other ...................................................................... 122 35 46 99
--------- ------ ------- -------
Total expenses before fee reductions ...................................... 6,691 1,806 1,696 4,777
Expenses reduced by:
Investment Advisor ....................................................... (15) (8) (9) (175)
Administrator*** ......................................................... (29) (21) (31) (62)
Custodian ................................................................ (52) (13) (19) (37)
Transfer Agent ........................................................... (6) (16) (14) (6)
Distributor .............................................................. (174) (47) (76) (110)
Fund Accountant .......................................................... (76) (20) (28) (53)
---------- ------- ------- -------
Net Expenses .............................................................. 6,339 1,681 1,519 4,334
---------- ------- ------- -------
Net Investment Income (Loss) ................................................ 4,678 779 2,398 828
---------- ------- ------- -------
Realized/Unrealized Gains/(Losses) from Investments .........................
Net realized gains/(losses) from investment transactions, foreign currency
and futures** .............................................................. 114,427 4,660 13,475 43,802
Realized gain distributions from underlying funds ........................... -- -- -- --
Change in unrealized appreciation/depreciation from investments, futures, and
translation of assets and liabilities denominated in foreign currencies .... (31,138) 4,444 11,802 (5,234)
---------- ------- ------- -------
Net Realized/Unrealized Losses from Investments ............................. 83,289 9,104 25,277 38,568
---------- ------- ------- -------
Change in Net Assets Resulting from Operations .............................. $ 87,967 $9,883 $27,675 $39,396
========== ======= ======= =======
* Dividends for the International Equity Fund are net of foreign withholding
taxes of $1,276.
** Represents realized gains/(losses) from investment transactions with
affiliates for the Strategic Portfolios.
*** Includes reimbursements from BISYS.
See notes to financial statements.
86
---------------------------------------------
For the year ended July 31, 2005 AMSOUTH FUNDS
Statements of Operations
(amounts in thousands)
---------------------------------------------
Strategic
Strategic Strategic Portfolios:
Portfolios: Strategic Portfolios: Moderate
Capital International Aggressive Portfolios: Growth & Growth &
Growth Mid Cap Small Cap Equity Balanced Growth Growth Income Income
Fund Fund Fund Fund Fund Portfolio Portfolio Portfolio Portfolio
------- ----------- --------- ------------- ----------- ----------- ----------- ----------- -----------
$ 3,711 $ 2,823 $ 517 $ 11,461* $ 2,162 $ -- $ -- $ -- $ --
-- 82 120 -- 28 387 945 2,255 1,170
-- 3 34 13 3,461 -- -- 1 --
13 15 57 477 29 -- -- -- --
------- ------- -------- --------- --------- ------ ------ ------- ------
3,724 2,923 728 11,951 5,680 387 945 2,256 1,170
------- ------- -------- --------- --------- ------ ------ ------- ------
2,056 1,980 2,460 4,553 1,455 101 123 223 100
429 350 410 747 303 84 101 185 83
54 59 20 21 191 99 185 127 94
67 51 23 52 253 54 68 128 55
18 20 7 7 64 33 62 42 31
335 277 354 644 83 24 14 65 23
51 45 51 159 41 10 13 23 10
45 35 42 223 31 9 10 19 9
78 73 77 108 114 86 63 82 73
6 18 2 18 9 8 16 7 7
81 63 75 135 56 15 18 34 15
14 11 13 24 10 3 3 6 3
6 5 6 11 4 1 1 3 1
56 54 61 98 53 17 20 30 14
------- ------- -------- --------- --------- ------ ------ ------- ------
3,296 3,041 3,601 6,800 2,667 544 697 974 518
-- (701) (277) (885) (9) (51) (61) (111) (50)
(44) (31) (38) (68) (30) (33) (40) (6) (33)
(27) (21) (25) -- (19) (5) (6) (11) (5)
(15) (16) (18) (16) (8) (22) (21) (13) (22)
(112) (92) (118) (215) (28) (43) (57) (90) (42)
(39) (32) (37) (68) (27) (8) (9) (17) (8)
------- ------- -------- --------- ---------- ------ ------ ------- -------
3,059 2,148 3,088 5,548 2,546 382 503 726 358
------- ------- -------- --------- ---------- ------ ------ ------- ------
665 775 (2,360) 6,403 3,134 5 442 1,530 812
------- ------- -------- --------- ---------- ------ ------ ------- ------
6,876 18,301 23,367 26,346 29,924 2,460 1,324 2,736 1,726
-- -- -- -- -- 484 444 683 253
22,817 32,266 26,546 63,582 (15,504) 4,615 4,979 6,277 1,656
------- ------- -------- --------- ---------- ------ ------ ------- ------
29,693 50,567 49,913 89,928 14,420 7,559 6,747 9,696 3,635
------- ------- -------- --------- ---------- ------ ------ ------- ------
$30,358 $51,342 $ 47,553 $ 96,331 $ 17,554 $7,564 $7,189 $11,226 $4,447
======= ======= ======== ========= ========== ====== ====== ======= ======
See notes to financial statements.
87
- -----------------------------------------
AMSOUTH FUNDS For the year ended July 31, 2005
Statements of Operations
(amounts in thousands)
- -----------------------------------------
Limited High High Quality
Government Term Quality Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- ------- ------- ------------
Investment Income:
Dividends ......................................................... $ 69 $ 27 $ 139 $ 94
Dividends from affiliates ......................................... -- -- -- --
Interest .......................................................... 8,563 7,384 29,165 14,227
Securities lending ................................................ 27 81 203 --
------- ------- ------- -------
Total Investment Income .......................................... 8,659 7,492 29,507 14,321
------- ------- ------- -------
Expenses:
Investment advisory ............................................... 1,059 1,211 3,458 1,903
Administration .................................................... 321 368 1,048 577
Distribution -- Class B Shares (b) ................................ 50 128 50 29
Shareholder servicing -- Class A Shares (a) ....................... 45 62 124 43
Shareholder servicing -- Class B Shares (b) ....................... 17 43 17 10
Shareholder servicing -- Class I Shares (c) ....................... 247 262 858 485
Accounting ........................................................ 47 48 133 82
Custodian ......................................................... 35 40 109 61
Transfer agent .................................................... 58 65 197 74
Registration and filing ........................................... 10 5 2 4
Legal Fees ........................................................ 62 70 196 108
Trustee Fees ...................................................... 10 11 33 18
CCO Fees .......................................................... 4 5 15 8
Other ............................................................. 50 51 152 77
------- ------- ------- -------
Total expenses before fee reductions ............................. 2,015 2,369 6,392 3,479
Expenses reduced by:
Investment Advisor .............................................. (119) (131) (329) (529)
Administrator ................................................... (37) (42) (106) (60)
Custodian ....................................................... (21) (24) (65) (36)
Transfer Agent .................................................. (16) (14) (12) (17)
Distributor ..................................................... (82) (87) (286) (162)
Fund Accountant ................................................. (28) (33) (94) (52)
------- ------- ------- -------
Net Expenses ..................................................... 1,712 2,038 5,500 2,623
------- ------- ------- -------
Net Investment Income .............................................. 6,947 5,454 24,007 11,698
------- ------- ------- -------
Realized/Unrealized Gains/(Losses) from Investments
Net realized gains from investment transactions .................... 5,781 135 6,430 4,417
Change in unrealized appreciation/depreciation from investments .... (6,890) (3,600) (5,871) (8,999)
------- ------- ------- -------
Net Realized/Unrealized Gains from Investments ..................... (1,109) (3,465) 559 (4,582)
------- ------- ------- -------
Change in Net Assets Resulting from Operations ..................... $ 5,838 $ 1,989 $24,566 $ 7,116
======= ======= ======= =======
(a) Represents Class 2 Shares for the Institutional Prime Obligations Money
Market Fund.
(b) Represents Class 3 Shares for the Institutional Prime Obligations Money
Market Fund.
(c) Represents Class 1 Shares for the Institutional Prime Obligations Money
Market Fund.
See notes to financial statements.
88
---------------------------------------------
For the year ended July 31, 2005 AMSOUTH FUNDS
Statements of Operations
(amounts in thousands)
---------------------------------------------
Institutional
Treasury Prime
Prime Reserve Tax-Exempt Obligations
Florida Tennessee Money Money Money Money
Tax-Exempt Tax-Exempt Market Market Market Market
Fund Fund Fund Fund Fund Fund
- ------------ ------------ ---------- ---------- ---------- -------------
$ 29 $ 21 $ -- $ -- $ -- $ --
-- -- -- -- -- --
2,265 1,457 14,213 4,140 2,602 9,102
-- -- 2 71 122 2
-------- ------- ------- ------ ------ ------
2,294 1,478 14,215 4,211 2,724 9,104
-------- ------- ------- ------ ------ ------
322 210 2,371 739 594 743
98 64 989 310 249 371
21 17 23 -- ------ 236
18 14 1,030 178 81 307
7 6 8 -- ------ --
72 45 267 170 174 --
16 10 121 37 33 74
10 7 103 33 26 61
32 29 153 69 29 64
2 7 19 9 9 2
18 12 197 56 46 106
3 2 33 8 8 20
1 1 14 4 3 9
15 10 169 35 36 85
-------- ------- ------- ------ ------ ------
635 434 5,497 1,648 1,288 2,078
(95) (24) (296) (92) (223) (483)
(39) (7) (397) (125) (21) (3)
(6) (4) (61) (21) (15) (36)
(22) (24) (10) (10) (5) --
(24) (15) (107) (128) (107) --
(9) (6) (90) (28) (22) (56)
---------- -------- ------- ------ ------ ------
440 354 4,536 1,244 895 1,500
--------- ------- ------- ------ ------ ------
1,854 1,124 9,679 2,967 1,829 7,604
--------- ------- ------- ------ ------ ------
664 125 -- -- (7) --
(1,360) (600) -- -- -- --
--------- ------- ------- ------ ------ ------
(696) (475) -- -- (7) --
--------- ------- ------- ------ ------ ------
$ 1,158 $ 649 $ 9,679 $2,967 $1,822 $7,604
========= ======= ======= ====== ====== ======
See notes to financial statements.
89
- ---------------------------------------------------
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
- ---------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
2005 2004 2005 2004
--------------- ------------ ------------ ------------
Value Fund Select Equity Fund
---------------------------- -------------------------
Net Assets, Beginning of Period ............................... $ 513,889 $ 532,221 $ 119,968 $ 59,412
---------- --------- --------- --------
Operations:
Net investment income (loss) ................................. 4,678 4,675 779 339
Net realized gains (losses) from investment transactions ..... 114,427 41,594# 4,660 2,506
Change in unrealized appreciation/depreciation from
investments ................................................. (31,138) 29,509 4,444 4,784
---------- --------- --------- --------
Change in net assets resulting from operations ................ 87,967 75,778 9,883 7,629
---------- --------- --------- --------
Dividends to:
Class A Shareholders:
From net investment income ................................... (1,149) (951) (125) (50)
From net realized gains from investment transactions ......... -- -- (17) (76)
Class B Shareholders:
From net investment income ................................... (72) (84) (59) (17)
From net realized gains from investment transactions ......... -- -- (14) (77)
Class I Shareholders:
From net investment income ................................... (3,560) (3,633) (676) (322)
From net realized gains from investment transactions ......... -- -- (88) (459)
---------- --------- --------- --------
Change in net assets from dividends to shareholders ........... (4,781) (4,668) (979) (1,001)
---------- --------- --------- --------
Change in net assets from capital share transactions .......... (109,971) (89,442) (4,570) 53,928
---------- --------- --------- --------
Capital contributions+ ........................................ 227 -- 1 --
---------- --------- --------- --------
Proceeds from redemption fees collected ....................... -- -- -- --
---------- --------- --------- --------
Change in net assets .......................................... (26,558) (18,332) 4,335 60,556
---------- --------- --------- --------
Net Assets, End of Period ..................................... $ 487,331 $ 513,889 $ 124,303 $119,968
========== ========= ========= ========
Accumulated Net Investment Income/(Loss) ...................... $ 206 $ 310 $ -- $ --
========== ========= ========= ========
International Equity Fund Balanced Fund
---------------------------- -------------------------
Net Assets, Beginning of Period ............................... $ 388,719 $ 260,257 $ 174,204 $161,459
------------ --------- ---------- --------
Operations:
Net investment income (loss) ................................. 6,403 3,904 3,134 2,748
Net realized gains (losses) from investments, futures,
and foreign currency transactions* .......................... 26,346 8,248 29,924 2,534
Realized gain distributions from underlying funds ............ -- -- -- --
Change in unrealized appreciation/depreciation from
investments, futures, and translation of assets and
liabilities in foreign currencies ........................... 63,582 73,633 (15,504) 8,066
------------ --------- ---------- --------
Change in net assets resulting from operations ................ 96,331 85,785 17,554 13,348
------------ --------- ---------- --------
Dividends to:
Class A Shareholders:
From net investment income ................................... (157) (63) (2,032) (1,566)
From net realized gains from investment transactions ......... -- -- (263) --
From tax return of capital ...................................
Class B Shareholders:
From net investment income ................................... (8) -- (329) (251)
From net realized gains from investment transactions ......... -- -- (69) --
From tax return of capital ...................................
Class I Shareholders:
From net investment income ................................... (4,114) (3,090) (1,203) (1,216)
From net realized gains from investment transactions ......... -- -- (161) --
From tax return of capital ................................... -- -- -- --
-------------- --------- ---------- --------
Change in net assets from dividends to shareholders ........... (4,279) (3,153) (4,057) (3,033)
-------------- --------- ---------- --------
Change in net assets from capital transactions ................ 12,575 45,636 (2,563) 2,430
-------------- --------- ---------- --------
Capital contributions+ ........................................ 12 -- 40 --
-------------- --------- ---------- --------
Proceeds from redemption fees collected ....................... 2 194 1 --
-------------- --------- ---------- --------
Change in net assets .......................................... 104,641 128,462 10,975 12,745
-------------- --------- ---------- --------
Net Assets, End of Period ..................................... $ 493,360 $ 388,719 $ 185,179 $174,204
============== ========= ========== ========
Accumulated Net Investment Income/(Loss) ...................... $ 4,741 $ 3,099 $ (198) $ (49)
============== ========= ========== ========
Year Year
Ended Ended
July 31, July 31,
2005 2004
-------------- --------------
Enhanced Market Fund
-----------------------------
Net Assets, Beginning of Period ............................... $178,652 $129,130
-------- --------
Operations:
Net investment income (loss) ................................. 2,398 1,345
Net realized gains (losses) from investment transactions ..... 13,475 7,726
Change in unrealized appreciation/depreciation from
investments ................................................. 11,802 8,460
-------- --------
Change in net assets resulting from operations ................ 27,675 17,531
-------- --------
Dividends to:
Class A Shareholders:
From net investment income ................................... (321) (186)
From net realized gains from investment transactions ......... (960) --
Class B Shareholders:
From net investment income ................................... (73) (26)
From net realized gains from investment transactions ......... (393) --
Class I Shareholders:
From net investment income ................................... (1,991) (1,122)
From net realized gains from investment transactions ......... (5,361) --
-------- --------
Change in net assets from dividends to shareholders ........... (9,099) (1,334)
-------- --------
Change in net assets from capital share transactions .......... (1,411) 33,325
-------- --------
Capital contributions+ ........................................ 11 --
-------- --------
Proceeds from redemption fees collected ....................... -- --
-------- --------
Change in net assets .......................................... 17,176 49,522
-------- --------
Net Assets, End of Period ..................................... $195,828 $178,652
======== ========
Accumulated Net Investment Income/(Loss) ...................... $ 59 $ 47
======== ========
Strategic Portfolios:
Aggressive Growth
Portfolio
--------------------------
Net Assets, Beginning of Period ............................... $45,254 $27,727
------- -------
Operations:
Net investment income (loss) ................................. 5 (33)
Net realized gains (losses) from investments, futures,
and foreign currency transactions* .......................... 2,460 1,577
Realized gain distributions from underlying funds ............ 484 26
Change in unrealized appreciation/depreciation from
investments, futures, and translation of assets and
liabilities in foreign currencies ........................... 4,615 1,826
------- --------
Change in net assets resulting from operations ................ 7,564 3,396
------- --------
Dividends to:
Class A Shareholders:
From net investment income ................................... (26)
From net realized gains from investment transactions ......... -- --
From tax return of capital ................................... (18)
Class B Shareholders:
From net investment income ................................... (3) --
From net realized gains from investment transactions ......... -- --
From tax return of capital ................................... (4)
Class I Shareholders:
From net investment income ................................... (21)
From net realized gains from investment transactions ......... -- (18)
From tax return of capital ................................... -- --
------- -------
Change in net assets from dividends to shareholders ........... (50) (40)
------- -------
Change in net assets from capital transactions ................ 1,685 14,167
------- -------
Capital contributions+ ........................................ 3 --
------- -------
Proceeds from redemption fees collected ....................... 1 4
------- -------
Change in net assets .......................................... 9,203 17,527
------- -------
Net Assets, End of Period ..................................... $54,457 $45,254
======= =======
Accumulated Net Investment Income/(Loss) ...................... $ -- $ --
======= =======
* Represents realized gains/(losses) from investment transactions with
affiliates for the Strategic Portfolios.
# Includes reimbursement of $406 by advisor and administrator for losses
realized on the disposal of investments in violation of restrictions.
+ Represents amounts contributed to the Funds by AmSouth Bank. For more
information, see "Affiliated Party Transactions" in the Notes to Financial
Statements.
See notes to financial statements.
90
---------------------------------------------------
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
---------------------------------------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31,
2005 2004 2005 2004 2005 2004 2005 2004
- ------------ ------------ ------------ ------------ ------------ -------------- ------------ -----------
Large Cap Fund Capital Growth Fund Mid Cap Fund Small Cap Fund
- --------------------------- --------------------------- ----------------------------- --------------------------
$ 372,557 $ 506,066 $ 261,672 $ 257,284 $172,286 $133,108 $220,073 $182,657
--------- ---------- --------- --------- -------- -------- -------- --------
828 (251) 665 (679) 775 245 (2,360) (2,390)
43,802 77,919 6,876 25,035 18,301 26,138 23,367 33,469
(5,234) (43,628) 22,817 (8,058) 32,266 (4,252) 26,546 (8,325)
--------- ---------- --------- --------- -------- -------- -------- --------
39,396 34,040 30,358 16,298 51,342 22,131 47,553 22,754
--------- ---------- --------- --------- -------- -------- -------- --------
(330) -- (109) -- (71) (19) -- --
(2,743) (15) -- -- -- -- -- --
(66) -- (28) -- (14) (1) -- --
(681) -- -- -- -- -- -- --
(780) -- (957) -- (686) (224) -- --
(6,178) (118) -- -- -- -- -- --
--------- ---------- --------- --------- -------- -------- -------- --------
(10,778) (133) (1,094) -- (771) (244) -- --
--------- ---------- --------- --------- -------- -------- -------- --------
(70,422) (167,416) (42,061) (11,910) 29,482 17,268 5,504 14,607
--------- ---------- --------- --------- -------- -------- -------- --------
486 -- 198 -- 37 -- 59 --
--------- ---------- --------- --------- -------- -------- -------- --------
-- -- 1 -- -- 23 1 55
--------- ---------- --------- --------- -------- -------- -------- --------
(41,318) (133,509) (12,598) 4,388 80,090 39,178 53,117 37,416
--------- ---------- --------- --------- -------- -------- -------- --------
$ 331,239 $ 372,557 $ 249,074 $ 261,672 $252,376 $172,286 $273,190 $220,073
========= ========== ========= ========= ======== ======== ======== ========
$ -- $ -- $ -- $ -- $ 5 $ 1 $ -- $ --
========= ========== ========= ========= ======== ======== ======== ========
Strategic Portfolios: Strategic Portfolios:
Strategic Portfolios: Growth & Income Moderate Growth &
Growth Portfolio Portfolio Income Portfolio
- -------------------------- ------------------------- ---------------------------
$ 50,752 $ 26,102 $ 104,423 $ 84,244 $ 45,565 $31,300
- ---------- ---------- ---------- --------- ---------- ---------
442 251 1,530 1,246 812 605
1,324 1,197 2,736 4,435 1,726 1,158
444 44 683 150 253 68
4,979 1,075 6,277 1,145 1,656 106
- ---------- ---------- ---------- --------- ---------- ---------
7,189 2,567 11,226 6,976 4,447 1,937
- ---------- ---------- ---------- --------- ---------- ---------
(234) (120) (734) (476) (389) (209)
-- -- -- -- -- --
(115) (29) (145) (51) (141) (62)
-- -- -- -- -- --
(90) (72) (650) (694) (282) (309)
- ---------- ---------- ---------- --------- ---------- ---------
-- -- -- -- -- --
(439) (221) (1,529) (1,221) (812) (580)
- ---------- ---------- ---------- --------- ---------- ---------
13,524 22,303 (1,801) 14,422 1,402 12,907
- ---------- ---------- ---------- --------- ---------- ---------
2 -- 9 -- 2 --
- ---------- ---------- ---------- --------- ---------- ---------
2 1 1 2 1 1
- ---------- ---------- ---------- --------- ---------- ---------
20,278 24,650 7,906 20,179 5,040 14,265
- ---------- ---------- ---------- --------- ---------- ---------
$ 71,030 $ 50,752 $ 112,329 $ 104,423 $ 50,605 $45,565
========== ========== ========== ========= ========== =========
$ 56 $ 53 $ 145 $ 144 $ 79 $ 79
========== ========== ========== ========= ========== =========
See notes to financial statements.
91
- ---------------------------------------------------
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
- ---------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
2005 2004 2005 2004
------------ -------------- ------------ -----------
Government Income Fund Limited Term Bond Fund
--------------------------- ------------------------
Net Assets, Beginning of Period ....................................... $ 243,273 $284,396 $ 258,563 $242,588
--------- --------- --------- --------
Operations:
Net investment income ................................................ 6,947 9,381 5,454 6,526
Net realized gains from investment transactions ...................... 5,781 1,082 135 881
Change in unrealized appreciation/depreciation from investments ...... (6,890) 3,917 (3,600) (4,549)
--------- --------- --------- --------
Change in net assets resulting from operations ........................ 5,838 6,546 1,989 2,858
--------- --------- --------- --------
Dividends to:
Class A Shareholders:
From net investment income ........................................... (832) (770) (757) (960)
From net realized gains from investment transactions ................. (43) (21) -- --
Class B Shareholders:
From net investment income ........................................... (254) (289) (393) (480)
From net realized gains from investment transactions ................. (18) (11) -- --
Class I Shareholders:
From net investment income ........................................... (7,599) (10,008) (5,548) (6,563)
From net realized gains from investment transactions ................. (471) (281) -- --
--------- --------- --------- --------
Change in net assets from dividends to shareholders ................... (9,217) (11,380) (6,698) (8,003)
--------- --------- --------- --------
Change in net assets from capital share transactions .................. (80,498) (36,389) (87,308) 21,016
--------- --------- --------- --------
Capital contributions ................................................. 162 -- 45 --
--------- --------- --------- --------
Proceeds from redemption fees collected ............................... -- 100 6 104
--------- --------- --------- --------
Change in net assets .................................................. (83,715) (41,123) (91,966) 15,975
--------- --------- --------- --------
Net Assets, End of Period ............................................. $ 159,558 $243,273 $ 166,597 $258,563
========= ========= ========= ========
Accumulated Net Investment Income/(Loss) .............................. $ (54) $ (211) $ (560) $ (644)
========= ========= ========= ========
Prime Treasury Reserve
Money Market Fund Money Market Fund
---------------------- ---------------------
Net Assets, Beginning of Period ....................................... $ 604,145 $664,565 $ 207,111 $ 88,429
--------- -------- --------- --------
Operations:
Net investment income ................................................ 9,679 2,402 2,967 499
Net realized gains (losses) from investment transactions ............. -- -- -- 3
Change in unrealized appreciation/depreciation from investments ...... -- -- -- --
--------- -------- --------- --------
Change in net assets resulting from operations ........................ 9,679 2,402 2,967 502
--------- -------- --------- --------
Dividends to:
Class A Shareholders (a):
From net investment income ........................................... (6,516) (1,406) (1,156) (185)
Class B Shareholders (b):
From net investment income ........................................... (44) (5) -- --
Class I Shareholders (c):
From net investment income ........................................... (3,119) (991) (1,815) (314)
--------- -------- --------- --------
Change in net assets from dividends to shareholders ................... (9,679) (2,402) (2,971) (499)
--------- -------- --------- --------
Change in net assets from capital share transactions .................. (24,277) (60,420) (40,423) 118,679
--------- -------- --------- --------
Capital contributions ................................................. 137 -- 123 --
--------- -------- --------- --------
Change in net assets .................................................. (24,140) (60,420) (40,304) 118,682
--------- -------- --------- --------
Net Assets, End of Period ............................................. $ 580,005 $604,145 $ 166,807 $207,111
========= ======== ========= ========
Accumulated Net Investment Income/(Loss) .............................. $ -- $ -- $ -- $ 4
========= ======== ========= ========
(a) Represents Class 2 for Institutional Prime Obligations Money Market Fund.
(b) Represents Class 3 for Institutional Prime Obligations Money Market Fund.
(c) Represents Class 1 for Institutional Prime Obligations Money Market Fund.
+ Represents amounts contributed to the Funds by AmSouth Bank. For more
information, see "Affiliated Party Transactions" in the Notes to Financial
Statements.
See notes to financial statements.
92
---------------------------------------------------
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
---------------------------------------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31,
2005 2004 2005 2004 2005 2004 2005 2004
- --------------- ------------ ------------ -------------- ---------- ------------- ---------- ---------
High Quality High Quality Florida Tennessee
Bond Fund Municipal Bond Fund Tax-Exempt Fund Tax-Exempt Fund
- ------------------------------ ----------------------------- -------------------------- -----------------------
$623,540 $ 660,008 $ 358,775 $ 371,902 $ 55,771 $61,298 $ 41,698 $ 51,830
--------- --------- --------- ---------- -------- -------- -------- ---------
24,007 24,987 11,698 12,863 1,854 2,007 1,124 1,320
6,430 4,168 4,417 1,026 664 344 125 308
(5,871) (10,284) (8,999) (2,779) (1,360) (512) (600) (246)
--------- --------- --------- ---------- -------- -------- -------- ---------
24,566 18,871 7,116 11,110 1,158 1,839 649 (1,382)
--------- --------- --------- ---------- -------- -------- -------- ---------
(2,073) (1,933) (562) (542) (217) (145) (168) (205)
(59) (356) (50) (14) (44) (5) (27) (31)
(230) (297) (102) (116) (66) (92) (51) (60)
(8) (68) (10) (4) (15) (5) (12) (14)
(24,712) (25,832) (11,092) (12,316) (1,571) (1,791) (925) (1,110)
(697) (4,584) (844) (307) (247) (73) (145) (178)
---------- --------- --------- ----------- -------- --------- -------- ---------
(27,779) (33,070) (12,660) (13,299) (2,160) (2,111) (1,328) (1,598)
---------- --------- --------- ----------- -------- --------- -------- ---------
(7,585) (22,322) (38,979) (10,938) (4,745) (5,255) 6,187 (9,916)
---------- --------- --------- ----------- -------- --------- -------- ---------
314 -- 42 -- 7 -- 8 --
---------- --------- --------- ----------- -------- --------- -------- ---------
6 53 3 -- -- -- 7 --
---------- --------- --------- ----------- -------- --------- -------- ---------
(10,478) (36,468) (44,478) (13,127) (5,740) (5,527) (6,851) (10,132)
---------- --------- --------- ----------- -------- --------- -------- ---------
$613,062 $ 623,540 $ 314,297 $ 358,775 $ 50,031 $55,771 $ 34,847 $ 41,698
========== ========= ========= =========== ======== ========= ======== =========
$ (1,467) $ (1,200) $ 897 $ 977 $ 56 $ 68 $ 7 $ 27
========== ========= ========= =========== ======== ========= ======== =========
Institutional
Tax-Exempt Prime Obligations
Money Market Fund Money Market Fund
- ---------------------------- -------------------------
$159,922 $ 163,163 $ 318,336 $ 467,070
-------- --------- --------- ---------
1,829 527 7,604 2,804
-- -- -- --
(7) -- -- --
-------- --------- --------- ---------
1,822 527 7,604 2,804
-------- --------- --------- ---------
(409) (110) (2,444) (837)
-- -- (769) (234)
(1,420) (417) (4,422) (1,733)
-------- --------- --------- ---------
(1,829) (527) (7,635) (2,804)
-------- --------- --------- ---------
(18,891) (3,241) 111,519 (142,734)
-------- --------- --------- ---------
20 -- 52 --
-------- --------- --------- ---------
(18,878) (3,241) 111,540 (142,734)
-------- --------- --------- ---------
$141,044 $ 159,922 $ 429,876 $ 318,336
======== ========= ========= =========
$ -- $ -- $ -- $ 31
======== ========= ========= =========
See notes to financial statements.
93
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
July 31, 2005
- ---------------------------------------------------
1. Organization:
AmSouth Funds (the "Trust") was organized on October 1, 1987, and is
registered under the Investment Company Act of 1940, as amended ("the 1940
Act"), as an open-end investment company established as a Massachusetts
business trust.
The Trust is authorized to issue an unlimited number of shares without par
value. The Trust currently offers shares of the AmSouth Value Fund, the AmSouth
Select Equity Fund, the AmSouth Enhanced Market Fund, the AmSouth Large Cap
Fund, the AmSouth Capital Growth Fund, the AmSouth Mid Cap Fund, the AmSouth
Small Cap Fund, the AmSouth International Equity Fund, the AmSouth Balanced
Fund, the AmSouth Strategic Portfolios: Aggressive Growth Portfolio, the
AmSouth Strategic Portfolios: Growth Portfolio, the AmSouth Strategic
Portfolios: Growth and Income Portfolio, the AmSouth Strategic Portfolios:
Moderate Growth and Income Portfolio, the AmSouth Government Income Fund, the
AmSouth Limited Term Bond Fund, the AmSouth High Quality Bond Fund, the AmSouth
High Quality Municipal Bond Fund, the AmSouth Florida Tax-Exempt Fund, the
AmSouth Tennessee Tax-Exempt Fund, (collectively, "the variable net asset
funds"), the AmSouth Prime Money Market Fund, the AmSouth Treasury Reserve
Money Market Fund, the AmSouth Tax-Exempt Money Market Fund and the AmSouth
Institutional Prime Obligations Money Market Fund (collectively, "the money
market funds") (collectively, "the Funds" and individually "a Fund").
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with their vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. These policies are
in conformity with U.S. generally accepted accounting principles ("GAAP"). The
preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses for the period.
Actual results could differ from those estimates.
Securities Valuation:
Investments of the money market funds are valued at amortized cost. Under
the amortized cost method, discount or premium is amortized on a constant basis
to the maturity of the security.
Bond and other fixed income securities (other than short-term obligations
but including listed issues) are valued on the basis of valuations furnished by
a pricing service, the use of which has been approved by the Trustees. In
making such valuations, the pricing service utilizes both dealer-supplied
valuations and the use of electronic and matrix techniques which take into
account appropriate factors such as institutional-sized trading in similar
groups of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics other than market data and without exclusive reliance
upon quoted prices or exchanges of over-the-counter prices, since such
valuations are believed to reflect more accurately the fair value of such
securities. All debt portfolio securities with a remaining maturity of 60 days
or less are valued at amortized cost, which approximates market value.
Portfolio securities listed or traded on domestic securities exchanges or
the NASDAQ/NMS, including American Depositary Receipts ("ADR's"), are valued at
the closing price on the exchange or system where the security is principally
traded or at the Nasdaq Official Closing Price, if applicable. Investments for
which market quotations are not readily available are valued at fair value
using guidelines adopted by the Trustees.
Most foreign markets close before the close of trading on the New York
Stock Exchange ("NYSE"). If the International Equity Fund determines that
developments between the close of a foreign market and the close of the NYSE
will, in its judgment, materially affect the value of some or all of its
portfolio securities, which in turn will affect the Fund's share price, the
Fund will
Continued
94
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
2. Significant Accounting Policies (continued)
adjust the previous closing prices to reflect the fair value of the securities
as of the close of the NYSE, as determined in good faith by the Pricing
Committee established by the Fund's Trustees.
A Fund may also fair value securities in other situations, such as when a
particular foreign market is closed but the Fund is open. In deciding whether
to make fair value adjustments, the Pricing Committee established by the Fund's
Trustee reviews a variety of factors, including developments in foreign
markets, the performance of U.S. securities markets, and the performance of
instruments trading in U.S. markets that represent foreign securities and
baskets of foreign securities. The Fund uses outside pricing services to
provide it with closing market prices and information used for adjusting those
prices.
Investments in investment companies are valued at their net asset values
as reported by such companies.
The differences between cost and market values of investments are
reflected as unrealized appreciation or depreciation.
Investments in restricted securities are valued by the Trustees, or by
procedures approved by the Trustees, by considering pertinent factors,
including the results of operations and the sales price of recent private
placements in its common stock. It is possible that the estimated value may
differ significantly from the amount that might ultimately be realized in the
near term.
Securities Transactions and Related Income:
Changes in holdings of portfolio securities shall be reflected no later
than in the calculation on the first business day following the trade date.
However, for financial reporting purposes, portfolio security transactions are
reported on trade date. Net realized gains or losses from sales of securities
are determined on the specific identification cost method. Interest income and
expenses are recognized on the accrual basis. Dividends are recorded on the
ex-dividend date. Interest income includes premium amortization and discount
accretion for financial reporting.
Financial Futures Contracts:
The Enhanced Market, Select Equity, Large Cap, Capital Growth, Mid Cap,
International Equity, Limited Term Bond, High Quality Bond, and Tennessee
Tax-Exempt Funds may invest in financial futures contracts for the purpose of
hedging its existing portfolio securities, or securities that it intends to
purchase, against fluctuations in fair value caused by changes in prevailing
market interest rates. Upon entering into a financial futures contract, a Fund
is required to pledge to the broker an amount of cash and/or other assets equal
to a certain percentage of the contract amount (initial margin deposit).
Subsequent payments, known as "variation margin," are made or received by a
Fund each day, depending on the daily fluctuations in the fair value of the
underlying security. A Fund recognizes a gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates, and
the underlying hedged assets.
Repurchase Agreements:
The Funds may invest in repurchase agreements with institutions that are
deemed by AmSouth Asset Management Inc. ("AAMI"), (the "Advisor"), to be of
good standing and creditworthy under guidelines established by the Trustees.
Each repurchase agreement is valued at cost. The Fund requires that collateral
received in a repurchase agreement transaction be transferred to a custodian in
a manner sufficient to enable the Fund to obtain collateral in the event of a
counterparty default. If the counterparty defaults and the fair value of the
collateral declines, realization of the collateral by the Funds may be delayed
or limited. The Funds, along with other affiliates of the Fund, may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements which are fully
collateralized by U.S. Treasury or U.S. government agency obligations, with
counterparties approved by the Trustees, consistent with the Fund's investment
policy. As of July 31, 2005, all repurchase agreements were fully
collateralized by U.S. Treasury or U.S. Government Agency obligations.
Continued
95
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- ---------------------------------------------------
2. Significant Accounting Policies (continued)
Foreign Currency Translation:
The market value of investment securities, other assets and liabilities of
the International Equity Fund denominated in a foreign currency are translated
into U.S. dollars at the current exchange rate. Purchases and sales of
securities, income receipts and expense payments are translated into U.S.
dollars at the exchange rate on the dates of the transactions.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gains or losses
from investments.
Reported net realized foreign exchange gains or losses arise from sales
and maturities of fund securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and liabilities
recorded and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in
the value of assets and liabilities, including investments in securities,
resulting from changes in currency exchange rates.
Risks Associated with Foreign Securities and Currencies:
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers. Such
risks include future political and economic developments and the possible
imposition of exchange controls or other foreign governmental laws and
restrictions. In addition, with respect to certain countries, there is the
possibility of expropriation of assets, confiscatory taxation, political or
social instability or diplomatic developments which could adversely affect
investments in those countries.
Certain countries may also impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on
investments in issuers or industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available to
the International Equity Fund or result in a lack of liquidity and high price
volatility with respect to securities of issuers from developing countries.
Forwards may involve market or credit risk in excess of the amounts
reflected on the Fund's statement of assets and liabilities. The gain or loss
from the difference between the cost of original contracts and the amount
realized upon the closing of such contracts is included in net realized
gains/losses from investment and foreign currency transactions. Fluctuations in
the value of forwards held are recorded for financial reporting purposes as
unrealized gains and losses by the Fund.
Securities Lending:
To generate additional income, the Funds may lend up to 33 1/3% of total
assets pursuant to agreements requiring that the loan be continuously secured
by cash, U.S. government or U.S. government agency securities, shares of an
investment trust or mutual fund, or any combination of cash and such securities
as collateral equal at all times to at least 100% of the prior day's market
value plus accrued interest on the securities lent. The Funds continue to earn
interest and dividends on securities lent while simultaneously seeking to earn
interest on the investment of collateral.
When cash is received as collateral for securities loaned, the Funds may
invest such cash in short-term U.S. government securities, repurchase
agreements, or other short-term corporate securities. The cash or subsequent
short-term investments are recorded as assets of the Funds, offset by a
corresponding liability to repay the cash at the termination of the loan. Fixed
income securities received as collateral are not recorded as an asset or
liability of the Fund because the Fund does not have effective control of such
securities.
There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by the
Advisor to be of good standing and creditworthy under guidelines established by
the Trustees and when, in the judgment of the Advisor, the consideration which
Continued
96
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
2. Significant Accounting Policies (continued)
can be earned currently from such securities loans justifies the attendant
risks. Loans are subject to termination by the Funds or the borrower at any
time, and are, therefore, not considered to be illiquid investments. The Bank
of New York serves as the Securities Lending Agent. For providing this service,
the Securities Lending Agent retains 25% of the Securities Lending income. The
fee is shown as net of the securities lending income on the Statements of
Operations. As of July 31, 2005, the following Funds had securities on loan
(amounts in thousands):
Market
Market Value of
Value of Loaned
Collateral Securities
------------ -----------
Value Fund ................................................ $ 17,349 $ 17,008
Enhanced Market Fund ...................................... 1,695 1,652
Large Cap Fund ............................................ 2,729 2,609
Capital Growth Fund ....................................... 19,087 18,414
Mid Cap Fund .............................................. 15,350 14,826
Small Cap Fund ............................................ 43,604 42,057
International Equity Fund ................................. 47,195 45,068
Balanced Fund ............................................. 27,713 26,922
Government Income Fund .................................... 3,940 3,833
Limited Term Bond Fund .................................... 19,363 45,985
High Quality Bond Fund .................................... 137,872 134,358
Prime Money Market Fund ................................... 34,529 34,382
Treasury Reserve Money Market Fund ........................ 43,518 43,265
Institutional Prime Obligations Money Market Fund ......... 28,708 28,374
Dividends to Shareholders:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are declared
and paid monthly for the variable net asset value funds, except for the
International Equity Fund, which dividends are declared and paid annually.
Distributable net realized gains, if any, are declared and distributed at least
annually.
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 differences are primarily due to
differing treatment for mortgage-backed securities, amortization and/or
accretion of securities, foreign currency transactions, expiring capital loss
carryforwards and deferrals of certain losses. These "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. To the extent they exceed net
investment income and net realized gains for tax purposes, they are reported as
distributions of capital.
The funds may utilize equalization accounting for tax purposes and
designate earnings and profits distributed to shareholders on redemption of
shares, as part of the dividend paid deduction for income tax purposes.
Federal Income Taxes:
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, including Subchapter
M, of the Internal Revenue Code ("the Code"), and to make distributions of net
investment income and net realized capital gains sufficient to relieve it from
all, or substantially all, federal income taxes.
Continued
97
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- ---------------------------------------------------
2. Significant Accounting Policies (continued)
In-Kind Redemptions:
In certain circumstances, the Funds may distribute portfolio securities
rather than cash as payment for redemption of fund shares (in-kind redemption).
For financial reporting purposes, the Funds recognize a gain on the in-kind
redemptions to the extent the value of the distributed securities on the date
of redemption exceeds the cost of those securities; the Funds recognize a loss
if the cost exceeds value. Gains and losses realized on in-kind redemptions are
not recognized for tax purposes and are reclassified from undistributed
realized gain (loss) to paid-in-capital. During the year ended July 31, 2005,
the Value Fund realized $1,362,348 of net gain on $6,702,674 of in-kind
redemptions, the Large Cap Fund realized $1,994,668 of net gain on $6,674,983
of in-kind redemptions and the Government Income Fund realized $863,174 of net
gain on $33,383,261 of in-kind redemptions.
Other:
Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses for the Trust are prorated to
all the Funds on the basis of relative net assets. Fees paid under a Fund's
shareholder servicing or distribution plans are borne by the specific class of
shares to which they apply. Income, expenses, and realized and unrealized gains
or losses on investments are allocated to each class of shares based on its
relative net assets, except that each class separately bears expenses related
specifically to that class, such as distribution fees.
Redemption Fee:
The variable net asset funds may impose a redemption fee. This fee can be
assessed on redemptions and exchanges of fund shares within 7 days from the
date the funds shares were purchased, except, Small Cap Fund and International
Equity Fund for which a fee can be assessed on redemptions and exchanges of
fund shares within 30 days from the date the fund shares were purchased.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities and
U.S. Government securities) for the year ended July 31, 2005 were as follows
(amounts in thousands):
Purchases Sales
----------- -----------
Value Fund .......................................................... $298,306 $403,723
Select Equity Fund .................................................. 17,943 24,804
Enhanced Market Fund ................................................ 173,847 180,305
Large Cap Fund ...................................................... 43,090 119,522
Capital Growth Fund ................................................. 30,353 69,448
Mid Cap Fund ........................................................ 223,442 200,027
Small Cap Fund ...................................................... 420,553 416,805
International Equity Fund ........................................... 67,086 52,563
Balanced Fund ....................................................... 109,325 118,385
Strategic Portfolios: Aggressive Growth Portfolio ................... 10,382 7,960
Strategic Portfolios: Growth Portfolio .............................. 23,279 8,945
Strategic Portfolios: Growth and Income Portfolio ................... 20,015 21,066
Strategic Portfolios: Moderate Growth and Income Portfolio .......... 16,028 14,422
Government Income Fund .............................................. 108,096 163,991
Limited Term Bond Fund .............................................. 44,485 92,401
High Quality Bond Fund .............................................. 85,213 155,081
High Quality Municipal Bond Fund .................................... 83,724 134,898
Florida Tax-Exempt Fund ............................................. 13,535 20,853
Tennessee Tax-Exempt Fund ........................................... 8,451 13,403
Continued
98
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
4. Affiliated Party Transactions:
AAMI serves as Investment Advisor for the Trust. Under the terms of the
investment advisory agreement, AAMI, a separate, wholly owned subsidiary of
AmSouth Bank ("AmSouth"), is entitled to receive fees based on a percentage of
the average daily net assets of each of the Funds as follows:
Annual Fee as a Annual Fee as a
Percentage of Average Percentage of Average
Daily Net Assets Daily Net Assets
for the period for the period
7/31/04 to 12/1/04 12/1/04 to 7/31/05
----------------------- ----------------------
Value Fund ......................................................... 0.80% 0.80%
Select Equity Fund ................................................. 0.80% 0.80%
Enhanced Market Fund ............................................... 0.45% 0.35%
Large Cap Fund ..................................................... 0.80% 0.80%
Capital Growth Fund ................................................ 0.80% 0.80%
Mid Cap Fund ....................................................... 1.00% 0.90%
Small Cap Fund ..................................................... 1.20% 0.90%
International Equity Fund .......................................... 1.25% 0.90%
Balanced Fund ...................................................... 0.80% 0.80%
Strategic Portfolios: Aggressive Growth Portfolio .................. 0.20% 0.20%
Strategic Portfolios: Growth Portfolio ............................. 0.20% 0.20%
Strategic Portfolios: Growth and Income Portfolio .................. 0.20% 0.20%
Strategic Portfolios: Moderate Growth and Income Portfolio ......... 0.20% 0.20%
Government Income Fund ............................................. 0.65% 0.50%
Limited Term Bond Fund ............................................. 0.65% 0.50%
High Quality Bond Fund ............................................. 0.65% 0.50%
High Quality Municipal Bond Fund ................................... 0.65% 0.50%
Florida Tax-Exempt Fund ............................................ 0.65% 0.50%
Tennessee Tax-Exempt Fund .......................................... 0.65% 0.50%
Prime Money Market Fund ............................................ 0.40% 0.40%
Treasury Reserve Money Market Fund ................................. 0.40% 0.40%
Tax-Exempt Money Market Fund ....................................... 0.40% 0.40%
Institutional Prime Obligations Money Market Fund .................. 0.20% 0.20%
A discussion regarding the basis for the Board of Trustees approving any
Investment Advisory Agreement of the fund is available in the Fund's
semi-annual or annual report to shareholders as applicable.
Effective October 5, 2004, the Advisor provides an employee to serve as
Chief Compliance Officer for the Funds, for which the Funds incur an additional
expense.
AmSouth serves as Custodian for the Trust, with the exception of the
International Equity Fund. Pursuant to the custodian agreement with the Trust,
AmSouth receives compensation from each Fund for such services in an amount
equal to an asset-based fee plus fixed fees charged for certain portfolio
transactions and out-of-pocket expenses. The Bank of New York serves as
custodian for the International Equity Fund.
In July 2005, AmSouth Bank voluntarily contributed $1,997,555 to the
AmSouth Funds in connection with its review of the relationships and
arrangements among the AmSouth Funds' administrator and distributor, ASO
Services Company, Inc. and BISYS Fund Services, respectively, AmSouth Bank, AAMI
and the AmSouth Funds.
Administrator
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services
("BISYS"), an Ohio Limited Partnership, BISYS Fund Services Ohio, Inc. ("BISYS
Ohio"), and BISYS Fund Services, Inc. ("BISYS Inc.") are subsidiaries of the
BISYS Group, Inc.
ASO Services Company ("ASO"), a wholly owned subsidiary of the BISYS
Group, Inc., serves the Funds as Administrator ("Administrator"). Under the
terms of the administration agreement, prior to December 1, 2004, the
Administrator received a fee
Continued
99
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- ---------------------------------------------------
4. Affiliated Party Transactions (continued)
computed based on an annual percentage of 0.20% of the average daily net assets
of each of the Funds except the Institutional Prime Obligations Money Market
Fund, which was 0.10%. At December 1, 2004, the Administrator received a fee
computed based on an annual percentage of 0.15% of the average daily net assets
of each of the Funds except the Institutional Prime Obligations Money Market
Fund, which is 0.10%. AmSouth and BISYS Ohio, with whom certain officers and
trustees of the Trust are affiliated, serve as the Funds' sub-administrators.
Such officers and trustees are paid no fees directly by the Funds for serving
as officers and trustees of the Trust. Pursuant to its current agreement with
the Administrator, AmSouth has assumed certain administration duties, for which
AmSouth receives a fee, paid by the Administrator, based on a percentage of
each Fund's daily average net assets. ASO also serves the Funds as Fund
Accountant for which ASO receives a fee based on a percentage of each Fund's
average daily net assets. BISYS Ohio and the Advisor may, from time to time,
directly or through an affiliate, use their fee revenue, past profits, or other
revenue sources, without limitation, to pay promotional, administrative,
shareholder support, and other expenses to third parties, including
broker-dealers, in connection with the offer, sale and administration of shares
of the Funds.
In December 2004, BISYS Ohio reimbursed $440,576 to the Funds. Additional
audit work required to file the financial statements resulted in a
reimbursement of $46,500. The remaining reimbursement of $394,076 was due to a
correction of the voluntary fee waivers.
Pursuant to its agreement with the Administrator, BISYS Ohio, as
sub-administrator, is entitled to compensation as mutually agreed upon from
time to time by it and the Administrator. BISYS serves as the Funds'
Distributor and is entitled to receive commissions on sales of shares of the
variable net asset funds. For the year ended July 31, 2005, BISYS received
$3,001,710 from commissions earned on sales of shares of the Funds' variable
net asset funds. BISYS reallowed $3,293 to affiliated broker dealers of the
Fund's shares. BISYS receives no fees from the Funds for providing distribution
services to the Funds.
BISYS Ohio, serves the Funds as Transfer Agent. Under the terms of the
transfer agent agreement, BISYS Ohio, receives a fee based on a percentage of
each Fund's average daily net assets, plus out of pocket charges.
Class A and Class I of the Trust are subject to a Shareholder Servicing
Plan (the "Servicing Plan") permitting payment of compensation to financial
institutions that agree to provide certain administrative support services for
their customers or account holders. Each Fund has entered into a specific
arrangement with BISYS for the provision of such services and reimburses BISYS
for its cost of providing these services, subject to a maximum rate of 0.25% of
the Class A Shares and 0.15% of the Class I Shares of the average daily net
assets of each of the Funds.
Class B Shares, Class 2 Shares and Class 3 Shares of the Trust are subject
to a Distribution and Shareholder Servicing Plan (the "Distribution Plan")
permitting payment of compensation to a participating organization as payment
for its services or expenses in connection with distribution assistance of the
Funds' Class B Shares, Class 2 Shares and Class 3 Shares to the participating
organizations customers. Each Fund has entered into a specific arrangement with
BISYS for the provision of such services and pays BISYS for its cost of
providing such services, subject to a maximum rate of 1.00% of the average
daily net assets of the Class B Shares of each of the Funds, which includes a
Shareholder Servicing Fee of 0.75% of the average daily net assets of the Class
B Shares of each Fund. Class 2 Shares and Class 3 Shares are subject to a
maximum rate of 0.25% and 0.50% of daily average net assets, respectively, for
such services.
During the year, there were no commissions paid to affiliated brokers for
security transactions.
AAMI, AmSouth, ASO, BISYS, and BISYS Ohio have voluntarily agreed to waive
a portion of their fees. These expense waivers are voluntary and may be
discontinued at any time.
The officers of the Trust receive no compensation directly from the Trust
for performing the duties of their offices. ASO receives fees from the Trust
for acting as Administrator and BISYS Fund Services, Inc. receives fees from
the Trust for acting as Transfer Agent and fund accountant.
Continued
100
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
4. Affiliated Party Transactions (continued)
The Independent Trustees are compensated directly from the Trust a
quarterly meeting fee of $3,500 and a quarterly retainer fee of $3,750. The
Independent Trustees receive compensation for special meetings of $1,000.
5. Concentration of Credit Risk
The High Quality Municipal Bond Fund invests a large portion of its assets
in tax-exempt debt obligations issued by the State of Alabama, its
municipalities, counties, and other taxing districts. The issuers' abilities to
meet their obligations may be affected by Alabama's economic, regional, and
political developments.
The Florida Tax-Exempt Fund invests substantially all of its assets in a
non-diversified portfolio of tax-exempt debt obligations primarily consisting
of securities issued by the State of Florida, its municipalities, counties and
other taxing districts. The issuers' abilities to meet their obligations may be
affected by Florida's economic, regional, and political developments.
The Tennessee Tax-Exempt Fund invests substantially all of its assets in a
non-diversified portfolio of tax-exempt debt obligations primarily consisting
of securities issued by the State of Tennessee, its municipalities, counties
and other taxing districts. The issuers' abilities to meet their obligations
may be affected by Tennessee's economic, regional, and political developments.
The Strategic Portfolios invests their assets in the Prime Money Market
Fund, High Quality Bond Fund, Limited Term Bond Fund, Value Fund, Government
Income Fund, Small Cap Fund, Mid Cap Fund, International Equity Fund, Capital
Growth Fund and the Large Cap Equity Fund. By investing primarily in shares of
these Funds, shareholders of the Strategic Portfolios indirectly pay a portion
of the operating expenses, management expenses and brokerage costs of the
underlying Funds, as well as their own operating expenses. Thus shareholders of
the Strategic Portfolios may indirectly pay a slightly higher total operating
expenses and other costs than they would pay by directly owning shares of the
fore mentioned Funds. Total fees and expenses to be borne by investors in the
Funds will depend on the portion of the Funds' assets invested in the Funds. A
change in the asset allocation of the Strategic Portfolio could increase or
reduce the fees and expenses actually borne to investors in that Fund. The
performance of the Strategic Portfolios depends on the performance of the
underlying Funds in which they invest.
6. Capital Share Transactions:
The Trust has issued three classes of Fund shares: Class A Shares, Class I
Shares, and Class B Shares in the Prime Money Market Fund and the variable net
asset funds. The Trust has issued three classes of fund shares in the
Institutional Prime Obligations Money Market Fund: Class 1, Class 2 and Class
3. The Trust has issued two classes of Fund shares: Class A Shares and Class I
Shares in the other money market funds. Each class of shares in a Fund has
identical rights and privileges except with respect to fees paid under
shareholder servicing or distribution plans, expenses allocable exclusively to
each class of shares, voting rights on matters affecting a single class of
shares, and the exchange privilege of each class of shares.
Continued
101
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Capital Share Transactions (continued)
Transactions in capital shares for the Funds were as follows (amounts in
thousands):
CAPITAL TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------
Class A Shares:
--------------------------------------------------------------------
Proceeds Cost of Total
from shares Capital Dividends shares Class A
issued Contributions reinvested redeemed Shares
------------- --------------- ------------ ------------ ------------
Value Fund
Year Ended July 31, 2005 ......... $29,709 61 1,071 (43,540) (12,699)
Year Ended July 31, 2004 ......... $20,214 -- 883 (27,203) (6,106)
Select Equity Fund
Year Ended July 31, 2005 ......... $ 9,134 -- 127 (6,060) 3,201
Year Ended July 31, 2004 ......... $10,389 -- 113 (2,671) 7,831
Enhanced Market Fund
Year Ended July 31, 2005 ......... $ 6,520 1 1,217 (7,037) 701
Year Ended July 31, 2004 ......... $ 8,421 -- 175 (7,935) 661
Large Cap Fund
Year Ended July 31, 2005 ......... $34,696 164 2,844 (33,727) 3,977
Year Ended July 31, 2004 ......... $29,837 -- 14 (25,341) 4,510
Capital Growth Fund
Year Ended July 31, 2005 ......... $ 6,203 18 94 (12,323) (6,008)
Year Ended July 31, 2004 ......... $ 8,936 -- -- (8,211) 725
Mid Cap Fund
Year Ended July 31, 2005 ......... $10,930 4 65 (7,568) 3,431
Year Ended July 31, 2004 ......... $ 8,312 -- 19 (3,401) 4,930
Small Cap Fund
Year Ended July 31, 2005 ......... $ 5,129 2 -- (5,236) (105)
Year Ended July 31, 2004 ......... $ 4,241 -- -- (2,995) 1,246
International Equity Fund
Year Ended July 31, 2005 ......... $15,969 1 144 (11,245) 4,869
Year Ended July 31, 2004 ......... $17,312 -- 60 (7,958) 9,414
Balanced Fund
Year Ended July 31, 2005 ......... $36,609 23 2,206 (29,313) 9,525
Year Ended July 31, 2004 ......... $24,380 -- 1,502 (19,149) 6,733
Aggressive Growth Portfolio
Year Ended July 31, 2005 ......... $ 8,283 1 26 (6,781) 1,529
Year Ended July 31, 2004 ......... $11,247 -- 18 (5,635) 5,630
Growth Portfolio
Year Ended July 31, 2005 ......... $11,903 1 230 (6,978) 5,156
Year Ended July 31, 2004 ......... $15,856 -- 118 (4,928) 11,046
Growth & Income Portfolio
Year Ended July 31, 2005 ......... $16,622 4 729 (13,886) 3,469
Year Ended July 31, 2004 ......... $25,497 -- 474 (12,745) 13,226
Moderate Growth &
Income Portfolio
Year Ended July 31, 2005 ......... $14,290 1 374 (10,746) 3,919
Year Ended July 31, 2004 ......... $ 9,637 -- 200 (4,624) 5,213
CAPITAL TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------------------
Class I
Class B Shares Shares
----------------------------------------------------------------- -------------
Proceeds Cost of Total Proceeds
from shares Capital Dividends shares Class B from shares
issued Contributions reinvested redeemed Shares issued
------------- --------------- ------------ ---------- ----------- -------------
Value Fund
Year Ended July 31, 2005 ......... 814 12 65 (7,493) (6,602) 34,483
Year Ended July 31, 2004 ......... 1,365 -- 76 (5,404) (3,963) 44,063
Select Equity Fund
Year Ended July 31, 2005 ......... 5,348 -- 66 (2,655) 2,759 18,504
Year Ended July 31, 2004 ......... 5,979 -- 82 (1,204) 4,857 58,750
Enhanced Market Fund
Year Ended July 31, 2005 ......... 790 1 429 (2,653) (1,433) 28,105
Year Ended July 31, 2004 ......... 2,203 -- 24 (2,109) 118 61,507
Large Cap Fund
Year Ended July 31, 2005 ......... 1,428 33 682 (6,325) (4,182) 36,235
Year Ended July 31, 2004 ......... 4,125 -- -- (4,140) (15) 47,648
Capital Growth Fund
Year Ended July 31, 2005 ......... 195 6 25 (2,100) (1,874) 26,980
Year Ended July 31, 2004 ......... 790 -- -- (2,043) (1,253) 60,638
Mid Cap Fund
Year Ended July 31, 2005 ......... 770 1 12 (1,390) (607) 51,722
Year Ended July 31, 2004 ......... 1,036 -- 1 (1,284) (247) 84,163
Small Cap Fund
Year Ended July 31, 2005 ......... 193 1 -- (647) (453) 40,880
Year Ended July 31, 2004 ......... 886 -- -- (532) 354 54,797
International Equity Fund
Year Ended July 31, 2005 ......... 902 -- 7 (343) 566 47,434
Year Ended July 31, 2004 ......... 1,266 -- -- (244) 1,022 69,560
Balanced Fund
Year Ended July 31, 2005 ......... 3,300 6 352 (5,022) (1,364) 10,384
Year Ended July 31, 2004 ......... 7,302 -- 226 (4,128) 3,400 10,088
Aggressive Growth Portfolio
Year Ended July 31, 2005 ......... 6,150 1 3 (1,943) 4,211 2,685
Year Ended July 31, 2004 ......... 8,623 -- 4 (763) 7,864 3,507
Growth Portfolio
Year Ended July 31, 2005 ......... 15,016 1 112 (3,479) 11,650 2,835
Year Ended July 31, 2004 ......... 13,564 -- 28 (1,125) 12,467 4,040
Growth & Income Portfolio
Year Ended July 31, 2005 ......... 7,814 2 139 (2,497) 5,458 4,553
Year Ended July 31, 2004 ......... 10,279 -- 49 (1,245) 9,083 6,559
Moderate Growth &
Income Portfolio
Year Ended July 31, 2005 ......... 4,776 1 129 (1,758) 3,148 1,326
Year Ended July 31, 2004 ......... 8,489 -- 59 (1,143) 7,405 2,953
CAPITAL TRANSACTIONS (amounts in thousands):
-------------------------------------------------------------------------------
Class I Shares
-------------------------------------------------------
Cost of Total Total net increase
Capital Dividends shares Class I (decrease) from
Contributions reinvested redeemed Shares capital transactions
--------------- ------------ ------------- ------------ ---------------------
Value Fund
Year Ended July 31, 2005 ......... 154 1,098 (126,178) (90,443) $(109,744)
Year Ended July 31, 2004 ......... -- 1,076 (124,512) (79,373) $ (89,442)
Select Equity Fund
Year Ended July 31, 2005 ......... 1 350 (29,384) (10,529) $ (4,569)
Year Ended July 31, 2004 ......... -- 382 (17,892) 41,240 $ 53,928
Enhanced Market Fund
Year Ended July 31, 2005 ......... 9 3,845 (32,627) (668) $ (1,400)
Year Ended July 31, 2004 ......... -- 381 (29,342) 32,546 $ 33,325
Large Cap Fund
Year Ended July 31, 2005 ......... 289 3,920 (110,175) (69,731) $ (69,936)
Year Ended July 31, 2004 ......... -- 65 (219,624) (171,911) $(167,416)
Capital Growth Fund
Year Ended July 31, 2005 ......... 174 228 (61,362) (33,980) $ (41,862)
Year Ended July 31, 2004 ......... -- -- (72,020) (11,382) $ (11,910)
Mid Cap Fund
Year Ended July 31, 2005 ......... 32 188 (25,247) 26,695 $ 29,519
Year Ended July 31, 2004 ......... -- 77 (71,632) 12,608 $ 17,291
Small Cap Fund
Year Ended July 31, 2005 ......... 56 -- (34,814) 6,122 $ 5,564
Year Ended July 31, 2004 ......... -- -- (41,735) 13,062 $ 14,662
International Equity Fund
Year Ended July 31, 2005 ......... 11 1,849 (42,140) 7,154 $ 12,589
Year Ended July 31, 2004 ......... -- 1,368 (35,534) 35,394 $ 45,830
Balanced Fund
Year Ended July 31, 2005 ......... 11 1,221 (22,299) (10,683) $ (2,522)
Year Ended July 31, 2004 ......... -- 1,097 (18,888) (7,703) $ 2,430
Aggressive Growth Portfolio
Year Ended July 31, 2005 ......... 1 20 (6,757) (4,051) $ 1,689
Year Ended July 31, 2004 ......... -- 17 (2,847) 677 $ 14,171
Growth Portfolio
Year Ended July 31, 2005 ......... -- 90 (6,203) (3,278) $ 13,528
Year Ended July 31, 2004 ......... -- 72 (5,321) (1,209) $ 22,304
Growth & Income Portfolio
Year Ended July 31, 2005 ......... 3 629 (15,903) (10,718) $ (1,791)
Year Ended July 31, 2004 ......... -- 675 (15,119) (7,885) $ 14,424
Moderate Growth &
Income Portfolio
Year Ended July 31, 2005 ......... -- 282 (7,270) (5,662) $ 1,405
Year Ended July 31, 2004 ......... -- 309 (2,972) 290 $ 12,908
Continued
102
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Capital Share Transactions (continued)
SHARE TRANSACTIONS (amounts in thousands):
---------------------------------------------------------------------------------------
Class A Shares:* Class B Shares:**
-------------------------------------------- ------------------------------------------
Total Total
Class A Class B
Issued Reinvested Redeemed Shares Issued Reinvested Redeemed Shares
-------- ------------ ---------- ----------- -------- ------------ ---------- ---------
Value Fund
Year Ended July 31, 2005 ............. 1,806 65 (2,643) (772) 49 4 (468) (415)
Year Ended July 31, 2004 ............. 1,394 62 (1,884) (428) 97 6 (380) (277)
Select Equity Fund
Year Ended July 31, 2005 ............. 648 9 (428) 229 393 5 (195) 203
Year Ended July 31, 2004 ............. 774 9 (196) 587 457 6 (92) 371
Enhanced Market Fund
Year Ended July 31, 2005 ............. 567 105 (607) 65 70 38 (235) (127)
Year Ended July 31, 2004 ............. 773 16 (726) 63 208 2 (195) 15
Large Cap Fund
Year Ended July 31, 2005 ............. 1,930 156 (1,870) 216 84 39 (372) (249)
Year Ended July 31, 2004 ............. 1,679 1 (1,424) 256 243 -- (243) --
Capital Growth Fund
Year Ended July 31, 2005 ............. 641 10 (1,246) (595) 22 3 (231) (206)
Year Ended July 31, 2004 ............. 952 -- (862) 90 89 -- (227) (138)
Mid Cap Fund
Year Ended July 31, 2005 ............. 802 5 (539) 268 58 1 (106) (47)
Year Ended July 31, 2004 ............. 690 2 (285) 407 89 -- (111) (22)
Small Cap Fund
Year Ended July 31, 2005 ............. 571 -- (579) (8) 23 -- (76) (53)
Year Ended July 31, 2004 ............. 521 -- (367) 154 114 -- (69) 45
International Equity Fund
Year Ended July 31, 2005 ............. 1,197 11 (877) 331 69 1 (27) 43
Year Ended July 31, 2004 ............. 1,630 6 (800) 836 120 -- (23) 97
Balanced Fund
Year Ended July 31, 2005 ............. 2,901 175 (2,328) 748 265 28 (401) (108)
Year Ended July 31, 2004 ............. 2,021 125 (1,597) 549 611 19 (342) 288
Aggressive Growth Portfolio
Year Ended July 31, 2005 ............. 886 3 (716) 173 685 -- (214) 471
Year Ended July 31, 2004 ............. 1,309 2 (641) 670 1,030 -- (90) 940
Growth Portfolio
Year Ended July 31, 2005 ............. 1,250 24 (731) 543 1,597 12 (370) 1,239
Year Ended July 31, 2004 ............. 1,794 13 (568) 1,239 1,525 3 (127) 1,401
Growth & Income Portfolio
Year Ended July 31, 2005 ............. 1,679 73 (1,381) 371 791 14 (251) 554
Year Ended July 31, 2004 ............. 2,686 50 (1,349) 1,387 1,082 5 (131) 956
Moderate Growth & Income Portfolio
Year Ended July 31, 2005 ............. 1,453 38 (1,074) 417 487 13 (179) 321
Year Ended July 31, 2004 ............. 1,011 21 (493) 539 891 6 (120) 777
SHARE TRANSACTIONS (amounts in thousands):
------------------------------------------------------------------
Class I Shares:***
----------------------------------------------
Total Total net increase
Class I (decrease) from
Issued Reinvested Redeemed Shares share transactions
-------- ------------ ------------ ----------- -------------------
Value Fund
Year Ended July 31, 2005 ............. 2,110 67 (7,733) (5,556) (6,743)
Year Ended July 31, 2004 ............. 3,084 76 (8,635) (5,475) (6,180)
Select Equity Fund
Year Ended July 31, 2005 ............. 1,320 25 (2,055) (710) (278)
Year Ended July 31, 2004 ............. 4,360 29 (1,357) 3,032 3,990
Enhanced Market Fund
Year Ended July 31, 2005 ............. 2,439 330 (2,809) (40) (102)
Year Ended July 31, 2004 ............. 5,717 35 (2,736) 3,016 3,094
Large Cap Fund
Year Ended July 31, 2005 ............. 2,015 213 (6,067) (3,839) (3,872)
Year Ended July 31, 2004 ............. 2,683 4 (12,537) (9,850) (9,594)
Capital Growth Fund
Year Ended July 31, 2005 ............. 2,794 23 (6,286) (3,469) (4,270)
Year Ended July 31, 2004 ............. 6,444 -- (7,622) (1,178) (1,226)
Mid Cap Fund
Year Ended July 31, 2005 ............. 3,815 14 (1,812) 2,017 2,238
Year Ended July 31, 2004 ............. 7,006 6 (6,134) 878 1,263
Small Cap Fund
Year Ended July 31, 2005 ............. 4,530 -- (3,795) 735 674
Year Ended July 31, 2004 ............. 6,656 -- (5,168) 1,488 1,687
International Equity Fund
Year Ended July 31, 2005 ............. 3,589 137 (3,156) 570 944
Year Ended July 31, 2004 ............. 6,298 127 (3,381) 3,044 3,977
Balanced Fund
Year Ended July 31, 2005 ............. 828 97 (1,761) (836) (196)
Year Ended July 31, 2004 ............. 836 92 (1,566) (638) 199
Aggressive Growth Portfolio
Year Ended July 31, 2005 ............. 285 2 (718) (431) 213
Year Ended July 31, 2004 ............. 410 2 (339) 73 1,683
Growth Portfolio
Year Ended July 31, 2005 ............. 290 9 (640) (341) 1,441
Year Ended July 31, 2004 ............. 455 8 (610) (147) 2,493
Growth & Income Portfolio
Year Ended July 31, 2005 ............. 452 63 (1,590) (1,075) (150)
Year Ended July 31, 2004 ............. 701 71 (1,586) (814) 1,529
Moderate Growth & Income Portfolio
Year Ended July 31, 2005 ............. 135 28 (742) (579) 159
Year Ended July 31, 2004 ............. 309 32 (312) 29 1,345
Continued
103
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Capital Share Transactions (continued)
CAPITAL TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------------
Class A Shares:
--------------------------------------------------------------------------
Proceeds Cost of Total
from shares Capital Dividends shares Class A
issued Contributions reinvested redeemed Shares
---------------- --------------- ------------ ------------- -----------
Government Income Fund
Year Ended July 31, 2005 ......... $ 8,447 18 797 (8,270) 992
Year Ended July 31, 2004 ......... $ 5,663 -- 721 (9,813) (3,429)
Limited Term Bond Fund
Year Ended July 31, 2005 ......... $ 8,489 5 613 (19,691) (10,584)
Year Ended July 31, 2004 ......... $ 10,698 -- 759 (20,123) (8,666)
High Quality Bond Fund
Year Ended July 31, 2005 ......... $ 25,502 26 1,889 (19,874) 7,543
Year Ended July 31, 2004 ......... $ 20,113 -- 1,959 (28,575) (6,503)
High Quality Municipal
Bond Fund
Year Ended July 31, 2005 ......... $ 6,298 2 414 (6,681) 33
Year Ended July 31, 2004 ......... $ 2,737 -- 393 (3,379) (249)
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ......... $ 7,221 1 231 (8,116) (663)
Year Ended July 31, 2004 ......... $ 2,983 -- 89 (5,119) (2,047)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ......... $ 286 1 59 (2,135) (1,789)
Year Ended July 31, 2004 ......... $ 982 -- 82 (3,409) (2,345)
Prime Money Market Fund+ ..........
Year Ended July 31, 2005 ......... $424,611 95 5,718 (456,977) (26,553)
Year Ended July 31, 2004 ......... 509,997 -- 1,318 (514,313) (2,998)
Treasury Reserve Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... 163,300 51 331 (165,816) (2,134)
Year Ended July 31, 2004 ......... 211,979(a) -- 35 (185,836) 26,178
Tax-Exempt Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... 76,047 5 336 (74,152) 2,236
Year Ended July 31, 2004 ......... 72,294 -- 103 (74,312) (1,915)
Institutional Prime Obligations
Money Market Fund+ ...............
Year Ended July 31, 2005 ......... 779,909 16 -- (716,097) 63,828
Year Ended July 31, 2004 ......... 999,579 -- -- (1,103,434) (103,855)
CAPITAL TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------------------------
Class B Shares: Class I Shares:
-------------------------------------------------------------------- ----------------
Proceeds Cost of Total Proceeds
from shares Capital Dividends shares Class B from shares
issued Contributions reinvested redeemed Shares issued
------------- --------------- ------------ ------------- ----------- ----------------
Government Income Fund
Year Ended July 31, 2005 ......... 686 6 207 (2,156) (1,257) 22,788
Year Ended July 31, 2004 ......... 720 -- 235 (3,469) (2,514) 48,149
Limited Term Bond Fund
Year Ended July 31, 2005 ......... 609 4 286 (5,941) (5,042) 37,543
Year Ended July 31, 2004 ......... 3,529 -- 346 (7,024) (3,149) 116,705
High Quality Bond Fund
Year Ended July 31, 2005 ......... 691 3 170 (1,884) (1,020) 142,179
Year Ended July 31, 2004 ......... 710 -- 279 (3,617) (2,628) 110,317
High Quality Municipal
Bond Fund
Year Ended July 31, 2005 ......... 261 1 60 (686) (364) 25,212
Year Ended July 31, 2004 ......... 594 -- 62 (965) (309) 41,254
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ......... 145 -- 45 (842) (652) 8,299
Year Ended July 31, 2004 ......... 505 -- 60 (1,366) (801) 10,158
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ......... 219 1 42 (745) (483) 3,567
Year Ended July 31, 2004 ......... 189 -- 50 (689) (450) 3,366
Prime Money Market Fund+ ..........
Year Ended July 31, 2005 ......... 1,499 1 28 (1,615) (87) 1,040,549
Year Ended July 31, 2004 ......... 1,926 -- 4 (2,322) (392) 1,237,080
Treasury Reserve Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... -- -- -- -- -- 240,386
Year Ended July 31, 2004 ......... -- -- -- -- -- 366,375(b)
Tax-Exempt Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... -- -- -- -- -- 213,426
Year Ended July 31, 2004 ......... -- -- -- -- -- 187,036
Institutional Prime Obligations
Money Market Fund+ ...............
Year Ended July 31, 2005 ......... 338,064 5 -- (344,372) (6,303) 689,760
Year Ended July 31, 2004 ......... 412,435 -- -- (452,075) (39,640) 625,457
CAPITAL TRANSACTIONS (amounts in thousands):
-------------------------------------------------------------------------------
Class I Shares:
---------------------------------------------------------
Cost of Total Total net increase
Capital Dividends shares Class I (decrease) from
Contributions reinvested redeemed Shares capital transactions
--------------- ------------ --------------- ------------ ---------------------
Government Income Fund
Year Ended July 31, 2005 ......... 138 3,901 (106,898) (80,071) $ (80,336)
Year Ended July 31, 2004 ......... -- 5,080 (83,575) (30,346) $ (36,289)
Limited Term Bond Fund
Year Ended July 31, 2005 ......... 36 1,865 (111,075) (71,631) $ (87,257)
Year Ended July 31, 2004 ......... -- 2,029 (85,799) 32,935 $ 21,120
High Quality Bond Fund
Year Ended July 31, 2005 ......... 285 6,806 (163,058) (13,788) $ (7,265)
Year Ended July 31, 2004 ......... -- 9,136 (132,591) (13,138) $ (22,269)
High Quality Municipal
Bond Fund
Year Ended July 31, 2005 ......... 39 1,101 (64,955) (38,603) $ (38,934)
Year Ended July 31, 2004 ......... -- 804 (52,438) (10,380) $ (10,938)
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ......... 6 64 (11,792) (3,423) $ (4,738)
Year Ended July 31, 2004 ......... -- 38 (12,603) (2,407) $ (5,255)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ......... 6 114 (7,587) (3,900) $ (6,172)
Year Ended July 31, 2004 ......... -- 155 (10,642) (7,121) $ (9,916)
Prime Money Market Fund+ ..........
Year Ended July 31, 2005 ......... 41 453 (1,038,543) 2,500 (24,140)
Year Ended July 31, 2004 ......... -- 237 (1,294,347) (57,030) (60,420)
Treasury Reserve Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... 72 256 (278,880) (38,166) (40,300)
Year Ended July 31, 2004 ......... -- 76 (273,950) 92,501 118,677
Tax-Exempt Money
Market Fund+ .....................
Year Ended July 31, 2005 ......... 15 29 (234,577) (21,107) (18,871)
Year Ended July 31, 2004 ......... -- 17 (188,379) (1,326) (3,241)
Institutional Prime Obligations
Money Market Fund+ ...............
Year Ended July 31, 2005 ......... 31 756 (636,501) 54,046 111,571
Year Ended July 31, 2004 ......... -- 251 (624,947) 761 (142,734)
Continued
105
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Capital Share Transactions (continued)
SHARE TRANSACTIONS (amounts in thousands):
-------------------------------------------------------------
Class A Shares:*
-------------------------------------------------------------
Total
Class A
Issued Reinvested Redeemed Shares
---------------- ------------ --------------- ---------------
Government Income Fund
Year Ended July 31, 2005 ........... 863 81 (845) 99
Year Ended July 31, 2004 ........... 564 72 (980) (344)
Limited Term Bond Fund
Year Ended July 31, 2005 ........... 815 59 (1,899) (1,025)
Year Ended July 31, 2004 ........... 1,007 72 (1,898) (819)
High Quality Bond Fund
Year Ended July 31, 2005 ........... 2,287 170 (1,785) 672
Year Ended July 31, 2004 ........... 1,776 174 (2,528) (578)
High Quality Municipal Bond Fund
Year Ended July 31, 2005 ........... 613 40 (654) (1)
Year Ended July 31, 2004 ........... 263 38 (325) (24)
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ........... 677 22 (773) (74)
Year Ended July 31, 2004 ........... 278 8 (473) (187)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ........... 28 6 (208) (174)
Year Ended July 31, 2004 ........... 95 8 (328) (225)
Prime Money Market Fund+
Year Ended July 31, 2005 ........... 424,611 5,718 (456,977) (26,648)
Year Ended July 31, 2004 ........... 509,997 1,318 (514,313) (2,998)
Treasury Reserve Money Market Fund+
Year Ended July 31, 2005 ........... 163,300 331 (165,818) (2,187)
Year Ended July 31, 2004 ........... 211,979(a) 35 (185,836) 26,178
Tax-Exempt Money Market Fund+
Year Ended July 31, 2005 ........... 76,047 336 (74,152) 2,231
Year Ended July 31, 2004 ........... 72,294 103 (74,312) (1,915)
Institutional Prime Obligations Money
Market Fund+
Year Ended July 31, 2005 ........... 779,909 -- (716,097) 63,812
Year Ended July 31, 2004 ........... 999,579 -- (1,103,434) (103,855)
SHARE TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------------------
Class B Shares:** Class I Shares:***
------------------------------------------------- -----------------------------
Total
Class B
Issued Reinvested Redeemed Shares Issued Reinvested
---------- ------------ ------------- ----------- ---------------- ------------
Government Income Fund
Year Ended July 31, 2005 ........... 70 21 (219) (128) 2,326 397
Year Ended July 31, 2004 ........... 72 23 (346) (251) 4,804 508
Limited Term Bond Fund
Year Ended July 31, 2005 ........... 58 28 (574) (488) 3,609 180
Year Ended July 31, 2004 ........... 332 33 (664) (299) 10,951 192
High Quality Bond Fund
Year Ended July 31, 2005 ........... 62 15 (170) (93) 12,806 612
Year Ended July 31, 2004 ........... 63 25 (322) (234) 9,765 810
High Quality Municipal Bond Fund
Year Ended July 31, 2005 ........... 25 6 (67) (36) 2,456 107
Year Ended July 31, 2004 ........... 57 6 (93) (30) 3,947 77
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ........... 14 4 (80) (62) 776 6
Year Ended July 31, 2004 ........... 47 6 (128) (75) 935 3
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ........... 21 4 (73) (48) 350 11
Year Ended July 31, 2004 ........... 18 5 (66) (43) 323 15
Prime Money Market Fund+
Year Ended July 31, 2005 ........... 1,500 28 (1,616) (88) 1,040,549 453
Year Ended July 31, 2004 ........... 1,926 4 (2,322) (392) 1,237,080 237
Treasury Reserve Money Market Fund+
Year Ended July 31, 2005 ........... -- -- -- -- 240,386 256
Year Ended July 31, 2004 ........... -- -- -- -- 366,375(b) 76
Tax-Exempt Money Market Fund+
Year Ended July 31, 2005 ........... -- -- -- -- 213,426 29
Year Ended July 31, 2004 ........... -- -- -- -- 187,036 17
Institutional Prime Obligations Money
Market Fund+
Year Ended July 31, 2005 ........... 338,063 -- (344,372) (6,309) 689,760 756
Year Ended July 31, 2004 ........... 412,435 -- (452,075) (39,640) 625,457 251
SHARE TRANSACTIONS (amounts in thousands):
-----------------------------------------------
Class I Shares:*** Class I Shares:***
--------------------------- ----------------------
Total Total net increase
Class I (decrease) from
Redeemed Shares share transactions
--------------- ----------- ----------------------
Government Income Fund
Year Ended July 31, 2005 ........... (10,851) (8,128) (8,157)
Year Ended July 31, 2004 ........... (8,341) (3,029) (3,624)
Limited Term Bond Fund
Year Ended July 31, 2005 ........... (10,714) (6,925) (8,438)
Year Ended July 31, 2004 ........... (8,076) 3,067 1,949
High Quality Bond Fund
Year Ended July 31, 2005 ........... (14,641) (1,223) (644)
Year Ended July 31, 2004 ........... (11,710) (1,135) (1,947)
High Quality Municipal Bond Fund
Year Ended July 31, 2005 ........... (6,347) (3,784) (3,821)
Year Ended July 31, 2004 ........... (5,033) (1,099) (1,063)
Florida Tax-Exempt Fund
Year Ended July 31, 2005 ........... (1,109) (327) (463)
Year Ended July 31, 2004 ........... (1,165) (227) (489)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2005 ........... (745) (384) (606)
Year Ended July 31, 2004 ........... (1,022) (684) (952)
Prime Money Market Fund+
Year Ended July 31, 2005 ........... (1,038,543) 2,459 (24,277)
Year Ended July 31, 2004 ........... (1,294,347) (57,030) (60,420)
Treasury Reserve Money Market Fund+
Year Ended July 31, 2005 ........... (278,880) (38,238) (40,425)
Year Ended July 31, 2004 ........... (273,950) 92,501 118,679
Tax-Exempt Money Market Fund+
Year Ended July 31, 2005 ........... (234,577) (21,122) (18,891)
Year Ended July 31, 2004 ........... (188,379) (1,326) (3,241)
Institutional Prime Obligations Money
Market Fund+
Year Ended July 31, 2005 ........... (636,500) 54,016 111,519
Year Ended July 31, 2004 ........... (624,947) 761 (142,734)
- ---------
+ Capital Transactions are processed at par value of $1.00 per share.
* Represents Class 2 Shares for Institutional Prime Obligations Money Market
Fund.
** Represents Class 3 Shares for Institutional Prime Obligations Money Market
Fund.
*** Represents Class 1 Shares for Institutional Prime Obligations Money Market
Fund.
(a) Shares Issued include 52,531 issued in connection with the AmSouth U.S.
Treasury Money Market Fund Merger.
(b) Shares Issued include 70,966 issued in connection with the AmSouth U.S.
Treasury Money Market Fund Merger.
Continued
105
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- ---------------------------------------------------
7. Federal Income Tax Information:
As of July 31, 2005 the following Funds have capital loss carryforwards,
which are available to offset future capital gains, if any on security
transactions to the extent provided for in the Code (amounts in thousands):
Amount Expires
---------- --------
Value Fund ................................................. $ 4,926 2010
22,032 2009
Capital Growth Fund ........................................ 13,579 2009
35,595 2010
55,985 2011
Small Cap Fund ............................................. 28,874 2011
International Equity Fund .................................. 2,096 2011
Strategic Portfolios: Aggressive Growth Portfolio .......... 1,121 2011
4,167 2012
Strategic Portfolios: Growth Portfolio ..................... 2,127 2011
330 2012
Strategic Portfolios: Growth & Income Portfolio ............ 5,835 2011
211 2012
Limited Term Bond Fund ..................................... 117 2006
338 2007
50 2008
518 2009
38 2010
896 2013
Prime Money Market Fund .................................... 2 2007
Tax-Exempt Money Market Fund ............................... 117 2006
92 2007
75 2009
15 2011
Treasury Reserve Money Market .............................. 3 2010
Federal Income Tax Information:
During the current fiscal year the following funds utilized prior years'
capital losses carried forward as follows:
Value Fund ................................................ $ 82,360
Mid Cap Fund .............................................. 17,006
Balanced .................................................. 1,675
Small Cap Cap Fund ........................................ 23,181
Government Income Fund .................................... 195
International Fund ........................................ 26,828
Strategic Portfolios: Moderate Growth & Income Portfolio 1,483
Strategic Portfolios: Growth & Income Portfolio ........... 680
Strategic Portfolios: Growth Portfolio .................... 372
Strategic Portfolios: Aggressive Growth Portfolio ......... 850
Continued
106
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
7. Federal Income Tax Information: (continued)
The tax character of distributions paid during the fiscal year ended July 31,
2005 was as follows (Total distributions paid differ from the Statement of
Changes in Net Assets because for tax purposes dividends are recognized when
actually paid.) (amounts in thousands):
Distributions paid from
----------------------------
Net Net
Investment Long Term
Income Capital Gains
------------ ---------------
Value Fund ............................................ $ 4,781 $ --
Select Equity Fund .................................... 860 119
Enhanced Market Fund .................................. 2,763 6,336
Large Cap ............................................. 1,119 9,659
Capital Growth ........................................ 1094 --
Mid Cap Equity ........................................ 770 --
International Equity Fund ............................. 4,279 --
Balanced Fund ......................................... 3,563 493
Strategic Portfolios: Aggressive Growth Portfolio ..... 50 --
Strategic Portfolios: Growth Portfolio ................ 439 --
Strategic Portfolios: Growth & Income Portfolio ....... 1,529 --
Strategic Portfolios: Moderate Growth And
Income Portfolio ..................................... 811 --
Limited Term Bond Fund ................................ 6,697 --
Government Income Fund ................................ 8,585 631
High Quality Bond Fund ................................ 27,015 764
High Quality Municipal Bond Fund ...................... 357 904
Florida Tax-Exempt Fund ............................... 1 307
Tennessee Tax-Exempt Fund ............................. -- 184
Prime Money Market Fund ............................... 8,665 --
Treasury Reserve Money Market Fund .................... 2,709 --
Tax-Exempt Money Market Fund .......................... -- --
Institutional Prime Obligations Money
Market Fund .......................................... 6,823 --
Total Tax Total
Taxable Exempt Tax Return Distributions
Distributions Distributions of Capital Paid
--------------- --------------- ------------ --------------
Value Fund ............................................ $ 4,781 $ -- $-- $ 4,781
Select Equity Fund .................................... 979 -- -- 979
Enhanced Market Fund .................................. 9,099 -- -- 9,099
Large Cap ............................................. 10,778 -- -- 10,778
Capital Growth ........................................ 1094 -- -- 1,094
Mid Cap Equity ........................................ 770 -- -- 770
International Equity Fund ............................. 4,279 -- -- 4,279
Balanced Fund ......................................... 4,056 -- 4,056
Strategic Portfolios: Aggressive Growth Portfolio ..... 50 -- -- 50
Strategic Portfolios: Growth Portfolio ................ 439 -- -- 439
Strategic Portfolios: Growth & Income Portfolio ....... 1,529 -- -- 1,529
Strategic Portfolios: Moderate Growth And
Income Portfolio ..................................... 811 -- -- 811
Limited Term Bond Fund ................................ 6,697 -- -- 6,697
Government Income Fund ................................ 9,216 -- -- 9,216
High Quality Bond Fund ................................ 27,779 -- -- 27,779
High Quality Municipal Bond Fund ...................... 1,261 11,400 -- 12,661
Florida Tax-Exempt Fund ............................... 308 1,853 2,161
Tennessee Tax-Exempt Fund ............................. 184 1,142 1,326
Prime Money Market Fund ............................... 8,665 -- -- 8,665
Treasury Reserve Money Market Fund .................... 2,709 -- -- 2,709
Tax-Exempt Money Market Fund .......................... -- 1,687 -- 1,687
Institutional Prime Obligations Money
Market Fund .......................................... 6,823 -- -- 6,823
The Funds listed below designate a portion of the amount paid to redeeming
shareholders, in the following amounts as a long-term capital gain
distributions for tax purposes.
High Quality Municipal Bond Fund ......... $ 720,990
Select Equity Fund ....................... 362,242
Enhanced Market Fund ..................... 48,797
High Quality Bond Fund ................... 35,623
Mid Cap Equity Fund ...................... 8,417
Large Cap Fund ........................... 8,335,970
Tennessee Tax-Exempt Fund ................ 34,943
Government Income Fund ................... 777,766
Balanced Fund ............................ 3,531,219
Florida Tax-Exempt Fund .................. 175,354
Continued
107
- ---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
- ---------------------------------------------------
7. Federal Income Tax Information: (continued)
The tax character of distributions paid during the fiscal year ended July 31,
2004 was as follows (Total distributions paid differ from the Statement of
Changes in Net Assets because for tax purposes dividends are recognized when
actually paid.) (amounts in thousands):
Distributions paid from
-----------------------------
Net Net
Investments Long Term
Income Capital Gains
------------- ---------------
Value Fund ..................................... $ 4,668 $ --
Select Equity Fund ............................. 475 525
Enhanced Market Fund ........................... 1,336 --
Large Cap ...................................... -- 650
Capital Growth ................................. -- --
Mid Cap Equity ................................. 244 --
Small Cap Fund ................................. -- --
International Equity Fund ...................... 3,153 --
Balanced Fund .................................. 3,033 --
Strategic Portfolios: Aggressive
Growth Portfolio .............................. -- --
Strategic Portfolios: Growth Portfolio ......... 221 --
Strategic Portfolios: Growth &
Income Portfolio .............................. 1,221 --
Strategic Portfolios: Moderate Growth &
Income Portfolio .............................. 580 --
Limited Term Bond Fund ......................... 8,002 --
Government Income Fund ......................... 11,067 313
Bond Fund ...................................... 28,061 5,604
Municipal Bond Fund ............................ -- 493
Florida Tax-Exempt Fund ........................ 26 83
Tennessee Tax-Exempt Fund ...................... -- 224
Prime Money Market Fund ........................ 2,402 --
Treasury Reserve Money Market Fund ............. 499 --
Tax-Exempt Money Market Fund ................... -- --
Institutional Prime Obligations Money
Market Fund ................................... 2,804 --
Total Tax Total
Taxable Exempt Tax Return Distribution
Distributions Distribution of Capital Paid
--------------- -------------- ------------ -------------
Value Fund ..................................... $ 4,668 $ -- $-- $ 4,668
Select Equity Fund ............................. 1,000 -- -- 1,000
Enhanced Market Fund ........................... 1,336 -- -- 1,336
Large Cap ...................................... 650 -- -- 650
Capital Growth ................................. -- -- -- --
Mid Cap Equity ................................. 244 -- -- 244
Small Cap Fund ................................. -- -- --
International Equity Fund ...................... 3,153 -- -- 3,153
Balanced Fund .................................. 3,033 -- 3,033
Strategic Portfolios: Aggressive
Growth Portfolio .............................. -- -- 40 40
Strategic Portfolios: Growth Portfolio ......... 221 -- -- 221
Strategic Portfolios: Growth &
Income Portfolio .............................. 1,221 -- -- 1,221
Strategic Portfolios: Moderate Growth &
Income Portfolio .............................. 580 -- -- 580
Limited Term Bond Fund ......................... 8,002 -- -- 8,002
Government Income Fund ......................... 11,380 -- -- 11,380
Bond Fund ...................................... 33,665 -- -- 33,665
Municipal Bond Fund ............................ 493 12,973 -- 13,466
Florida Tax-Exempt Fund ........................ 109 2,002 2,111
Tennessee Tax-Exempt Fund ...................... 224 1,374 1,598
Prime Money Market Fund ........................ 2,402 -- -- 2,402
Treasury Reserve Money Market Fund ............. 499 -- -- 499
Tax-Exempt Money Market Fund ................... -- 527 -- 527
Institutional Prime Obligations Money
Market Fund ................................... 2,804 -- -- 2,804
Continued
108
---------------------------------------------------
AMSOUTH FUNDS
Notes to Financial Statements
---------------------------------------------------
7. Federal Income Tax Information: (continued)
As of July 31, 2005 the components of accumulated earnings/(deficit) on a tax
basis was as follows (The differences between book-tax-basis and tax-basis
unrealized appreciation/(depreciation) is attributed primarily to tax deferral
of losses on wash sales and the difference between book and tax amortization
methods for premium and market discounts.) (amounts in thousands):
Undistributed
Undistributed Undistributed Long-Term
Tax-Exempt Ordinary Capital
Income Income Gains
--------------- --------------- ---------------
Value Fund ............................... $ -- $ 169 $ 2,547
Select Equity Fund ....................... -- -- 4,190
Enhanced Market Fund ..................... -- 3,668 6,216
Large Cap ................................ -- -- 33,002
Capital Growth ........................... -- -- --
Mid Cap Equity ........................... -- 5 3,283
Small Cap Fund ........................... -- -- --
International Equity Fund ................ -- 5,995 --
Balanced Fund ............................ -- 36 23,109
Strategic Portfolios:
Aggressive Growth Portfolio ............. -- -- --
Strategic Portfolios:
Growth Portfolio ........................ -- 56 --
Strategic Portfolios:
Growth & Income Portfolio ............... -- 142 --
Strategic Portfolios: Moderate Growth
and Income Portfolio .................... -- 79 525
Government Income Fund ................... -- -- 1,476
Limited Term Bond Fund ................... -- 51 --
High Quality Bond Fund ................... -- 271 3,467
High Quality Municipal Bond Fund ......... 527 -- 3,717
Florida Tax-Exempt Fund .................. 42 -- 481
Tennessee Tax-Exempt Fund ................ 11 -- 90
Prime Money Market Fund .................. -- 1,275 --
Treasury Reserve Money Market Fund -- 371 --
Tax-Exempt Money Market Fund ............. 191 -- --
Institutional Prime Obligations
Money Market Fund ....................... -- 1,064 --
Accumulated Total
Capital Unrealized Accumulated
Accumulated Distributions and Other Appreciation Earning/
Earnings Payable Losses Depreciation (Deficit)
------------- --------------- --------------- -------------- --------------
Value Fund ............................... $ 2,716 $ -- $ -- $ 84,284 $ 87,000
Select Equity Fund ....................... 4,190 -- -- 12,725 16,915
Enhanced Market Fund ..................... 9,884 -- -- 19,581 29,465
Large Cap ................................ 33,002 -- -- 88,338 121,340
Capital Growth ........................... -- -- (105,160) 42,165 (62,995)
Mid Cap Equity ........................... 3,288 -- -- 40,893 44,181
Small Cap Fund ........................... -- -- (28,874) 46,437 17,563
International Equity Fund ................ 5,995 -- (2,096) 146,233 150,132
Balanced Fund ............................ 23,145 -- -- 13,548 36,693
Strategic Portfolios:
Aggressive Growth Portfolio ............. -- -- (5,289) 8,993 3,704
Strategic Portfolios:
Growth Portfolio ........................ 56 -- (2,457) 7,826 5,425
Strategic Portfolios:
Growth & Income Portfolio ............... 142 -- (6,046) 11,844 5,940
Strategic Portfolios: Moderate Growth
and Income Portfolio .................... 604 -- -- 2,927 3,531
Government Income Fund ................... 1,476 -- -- (1,141) 335
Limited Term Bond Fund ................... 51 (2,754) (3,034) (5,737)
High Quality Bond Fund ................... 3,738 -- -- 13,565 17,303
High Quality Municipal Bond Fund ......... 4,244 -- -- 9,311 13,555
Florida Tax-Exempt Fund .................. 523 -- -- 837 1,360
Tennessee Tax-Exempt Fund ................ 101 -- -- 857 958
Prime Money Market Fund .................. 1,275 (1,275) (2) -- (2)
Treasury Reserve Money Market Fund 371 (371) (3) -- (3)
Tax-Exempt Money Market Fund ............. 191 (191) (306) -- (306)
Institutional Prime Obligations
Money Market Fund ....................... 1,064 (1,064) -- -- --
Under current tax law, capital losses realized after October 31, within the
Fund's fiscal year may be deferred and treated as occuring on the first day of
the following fiscal year. The following deferred losses will be treated as
arising on the first day of the fiscal year ended July 31, 2006 (amounts in
thousands):
Tax-Exempt Money Market ......... $ 7
Limited Term Bond ............... 797
8. Subsequent Events
On September 23, 2005, each series of the AmSouth Funds was reorganized
with and into an investment company or a series thereof managed by Pioneer
Investments, Inc.
Continued
109
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Realized
Net Asset Net and Unrealized
Value, Investment Gains (Losses) Total from
Beginning Income from Investments Investment
of Period (Loss) and Futures Activities
----------- ------------ ------------------ ------------
VALUE FUND
Year Ended July 31, 2005 .......... $14.86 0.14 2.63 2.77
Year Ended July 31, 2004 .......... $13.06 0.11 1.80 1.91
Year Ended July 31, 2003 .......... $12.76 0.14 0.81 0.95
Year Ended July 31, 2002 .......... $20.38 0.09 (6.01) (5.92)
Year Ended July 31, 2001+ ......... $19.54 0.11 3.64 3.75
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... $13.34 0.09 0.95 1.04
Year Ended July 31, 2004 .......... $11.89 0.06 1.55 1.61
Year Ended July 31, 2003 .......... $10.98 0.05 0.91 0.96
Year Ended July 31, 2002 .......... $11.23 0.02 (0.25) (0.23)
Year Ended July 31, 2001+ ......... $ 8.72 0.01 2.51 2.52
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... $11.04 0.14 1.55 1.69
Year Ended July 31, 2004 .......... $ 9.87 0.08 1.17 1.25
Year Ended July 31, 2003 .......... $ 9.16 0.08 0.70 0.78
Year Ended July 31, 2002 .......... $12.27 0.04 (2.96) (2.92)
Year Ended July 31, 2001+ ......... $14.64 0.03 (2.15) (2.12)
LARGE CAP FUND
Year Ended July 31, 2005 .......... $17.46 0.03 1.98 2.01
Year Ended July 31, 2004 .......... $16.34 (0.02) 1.14 1.12
Year Ended July 31, 2003 .......... $15.45 0.01 1.53 1.54
Year Ended July 31, 2002 .......... $21.22 (0.01) (4.57) (4.58)
Year Ended July 31, 2001+ ......... $28.14 (0.04) (2.82) (2.86)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contributions Fees of Period
------------ -------------- ----------- --------------- ------------ -----------
VALUE FUND
Year Ended July 31, 2005 .......... (0.14) -- (0.14) 0.01 -- $17.50
Year Ended July 31, 2004 .......... (0.11) -- (0.11) -- --# $14.86
Year Ended July 31, 2003 .......... (0.13) (0.52) (0.65) -- -- $13.06
Year Ended July 31, 2002 .......... (0.09) (1.61) (1.70) -- -- $12.76
Year Ended July 31, 2001+ ......... (0.14) (2.77) (2.91) -- -- $20.38
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... (0.09) (0.01) (0.10) --# -- $14.28
Year Ended July 31, 2004 .......... (0.06) (0.10) (0.16) -- --# $13.34
Year Ended July 31, 2003 .......... (0.05) -- (0.05) -- -- $11.89
Year Ended July 31, 2002 .......... (0.02) -- (0.02) -- -- $10.98
Year Ended July 31, 2001+ ......... (0.01) -- (0.01) -- -- $11.23
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... (0.14) (0.42) (0.56) --# -- $12.17
Year Ended July 31, 2004 .......... (0.08) -- (0.08) -- --# $11.04
Year Ended July 31, 2003 .......... (0.07) -- (0.07) -- -- $ 9.87
Year Ended July 31, 2002 .......... (0.03) (0.16) (0.19) -- -- $ 9.16
Year Ended July 31, 2001+ ......... (0.03) (0.22) (0.25) -- -- $12.27
LARGE CAP FUND
Year Ended July 31, 2005 .......... (0.06) (0.48) (0.54) 0.03 -- $18.96
Year Ended July 31, 2004 .......... -- -- -- -- --# $17.46
Year Ended July 31, 2003 .......... (0.02) (0.63) (0.65) -- -- $16.34
Year Ended July 31, 2002 .......... -- (1.19) (1.19) -- -- $15.45
Year Ended July 31, 2001+ ......... -- (4.06) (4.06) -- -- $21.22
Ratios (to average net assets)/Supplemental Data
--------------------------------------------------------------
Total Return Net Expenses (before Portfolio Net Assets,
(Excluding Investment Net Reductions/ Turnover End of Period
Sales Charge) Income Expenses Reimbursements) Rate* (000's)
------------------- ------------ ---------- ------------------ ----------- --------------
VALUE FUND
Year Ended July 31, 2005 .......... 18.81%### 0.87% 1.32% 1.35% 60% $129,960
Year Ended July 31, 2004 .......... 14.69%## 0.78% 1.34% 1.38% 44% $121,862
Year Ended July 31, 2003 .......... 8.02% 1.17% 1.36% 1.39% 117% $112,701
Year Ended July 31, 2002 .......... (31.21)% 0.49% 1.35% 1.36% 59% $ 97,393
Year Ended July 31, 2001+ ......... 21.10% 0.53% 1.34% 1.35% 43% $113,164
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... 7.84% 0.56% 1.31% 1.39% 14% $ 20,115
Year Ended July 31, 2004 .......... 13.54% 0.39% 1.29% 1.39% 18% $ 15,730
Year Ended July 31, 2003 .......... 8.77% 0.48% 1.34% 1.49% 8% $ 7,034
Year Ended July 31, 2002 .......... ( 2.01)% 0.28% 1.46% 1.71% 38% $ 4,511
Year Ended July 31, 2001+ ......... 28.96% 0.05% 1.71% 2.07% 19% $ 2,665
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... 15.53% 1.19% 0.88% 0.96% 93% $ 27,997
Year Ended July 31, 2004 .......... 12.73% 0.76% 0.95% 1.04% 64% $ 24,665
Year Ended July 31, 2003 .......... 8.54% 0.81% 1.00% 1.12% 27% $ 21,431
Year Ended July 31, 2002 .......... (24.10)% 0.41% 1.07% 1.19% 34% $ 17,473
Year Ended July 31, 2001+ ......... (14.60)% 0.26% 1.04% 1.14% 42% $ 24,666
LARGE CAP FUND
Year Ended July 31, 2005 .......... 11.82%^^^^ 0.15% 1.28% 1.37% 12% $112,198
Year Ended July 31, 2004 .......... 6.87% (0.12)% 1.26% 1.39% 8% $ 99,518
Year Ended July 31, 2003 .......... 10.45% 0.09% 1.26% 1.39% 7% $ 88,989
Year Ended July 31, 2002 .......... (22.75)% (0.05)% 1.26% 1.37% 11% $ 57,330
Year Ended July 31, 2001+ ......... (11.72)% (0.16)% 1.25% 1.36% 10% $ 66,813
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
### The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.05%.
^^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.15%.
## The total return shown includes the losses on the disposal of investments
that were reimbursed by the advisor and administrator, which otherwise
would have reduced the total return by 0.08%.
See notes to financial statements.
110
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
---------------------------------------------
Net Realized
and Unrealized
Gains (Losses)
Net Asset Net from Investments,
Value, Investment Futures, and Total from
Beginning Income Foreign Investment
of Period (Loss) Currencies Activities
----------- ------------ ------------------- ------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... $ 9.27 0.02 1.14 1.14
Year Ended July 31, 2004 .......... $ 8.75 (0.03) 0.55 0.52
Year Ended July 31, 2003 .......... $ 7.96 (0.03) 0.82 0.79
Year Ended July 31, 2002 .......... $10.86 (0.07) (2.83) (2.90)
Year Ended July 31, 2001+ ......... $14.97 (0.09) (2.86) (2.95)
MID CAP FUND
Year Ended July 31, 2005 .......... $12.26 0.03 3.22 3.25
Year Ended July 31, 2004 .......... $10.42 0.01 1.85 1.86
Year Ended July 31, 2003 .......... $ 9.39 0.01 1.03 1.04
Year Ended July 31, 2002 .......... $12.06 (0.16) (2.51) (2.67)
Year Ended July 31, 2001+ ......... $16.67 (0.17) (4.44) (4.61)
SMALL CAP FUND
Year Ended July 31, 2005 .......... $ 8.14 (0.11) 1.82 1.71
Year Ended July 31, 2004 .......... $ 7.22 (0.10) 1.02 0.92
Year Ended July 31, 2003 .......... $ 7.13 (0.07) 0.16 0.09
Year Ended July 31, 2002 .......... $10.12 (0.11) (2.88) (2.99)
Year Ended July 31, 2001+ ......... $12.52 (0.14) (1.05) (1.19)
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... $11.45 0.18 2.61 2.79
Year Ended July 31, 2004 .......... $ 8.69 0.07 2.78 2.85
Year Ended July 31, 2003 .......... $ 7.81 0.01 0.87 0.88
Year Ended July 31, 2002 .......... $ 9.49 0.02 (1.70) (1.68)
Year Ended July 31, 2001+ ......... $12.36 0.06 (2.54) (2.48)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contributions Fees of Period
------------ -------------- ----------- --------------- ------------ -----------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... (0.04) -- (0.04) 0.01 -- $10.38
Year Ended July 31, 2004 .......... -- -- -- -- --# $ 9.27
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 8.75
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.96
Year Ended July 31, 2001+ ......... -- (1.16) (1.16) -- -- $10.86
MID CAP FUND
Year Ended July 31, 2005 .......... (0.04) -- (0.04) --# -- $15.47
Year Ended July 31, 2004 .......... (0.02) -- (0.02) -- --# $12.26
Year Ended July 31, 2003 .......... (0.01) -- (0.01) -- -- $10.42
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 9.39
Year Ended July 31, 2001+ ......... -- -- -- -- -- $12.06
SMALL CAP FUND
Year Ended July 31, 2005 .......... -- -- -- --# -- $ 9.85
Year Ended July 31, 2004 .......... -- -- -- -- --# $ 8.14
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 7.22
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.13
Year Ended July 31, 2001+ ......... -- (1.21) (1.21) -- -- $10.12
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... (0.11) -- (0.11) --# -- $14.13
Year Ended July 31, 2004 .......... (0.09) -- (0.09) -- --# $11.45
Year Ended July 31, 2003 .......... (0.01) -- (0.01) -- 0.01 $ 8.69
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.81
Year Ended July 31, 2001+ ......... (0.03) (0.36) (0.39) -- -- $ 9.49
Ratios (to average net assets)/Supplemental Data
------------------------------------------------------------
Total Return Net Expenses (before Portfolio Net Assets,
(Excluding Investment Net Reductions/ Turnover End of Period
Sales Charge) Income Expenses Reimbursements) Rate* (000's)
----------------- ------------ ---------- ------------------ ----------- --------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... 12.42%^^^ 0.15% 1.30% 1.34% 12% $23,141
Year Ended July 31, 2004 .......... 5.94% (0.35)% 1.30% 1.38% 71% $26,181
Year Ended July 31, 2003 .......... 9.92% (0.47)% 1.31% 1.38% 151% $23,915
Year Ended July 31, 2002 .......... (26.70)% (0.76)% 1.31% 1.37% 115% $16,457
Year Ended July 31, 2001+ ......... (21.27)% (0.67)% 1.30% 1.36% 100% $19,574
MID CAP FUND
Year Ended July 31, 2005 .......... 26.60% 0.27% 1.11% 1.51% 96% $23,920
Year Ended July 31, 2004 .......... 17.84% 0.08% 1.10% 1.60% 105% $15,681
Year Ended July 31, 2003 .......... 11.08% 0.08% 1.15% 1.65% 59% $ 9,085
Year Ended July 31, 2002 .......... (22.14)% (1.31)% 1.66% 1.83% 221% $ 8,234
Year Ended July 31, 2001+ ......... (27.65)% (1.17)% 1.57% 1.65% 120% $12,546
SMALL CAP FUND
Year Ended July 31, 2005 .......... 21.01% (1.08)% 1.37% 1.52% 174% $ 9,517
Year Ended July 31, 2004 .......... 12.74% (1.29)% 1.58% 1.78% 171% $ 7,940
Year Ended July 31, 2003 .......... 1.26% (1.25)% 1.60% 1.78% 221% $ 5,929
Year Ended July 31, 2002 .......... (29.55)% (1.25)% 1.61% 1.77% 227% $ 5,114
Year Ended July 31, 2001+ ......... (10.33)% (1.22)% 1.61% 1.77% 220% $ 8,346
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... 24.44% 1.47% 1.37% 1.57% 12% $24,193
Year Ended July 31, 2004 .......... 32.90% 1.20% 1.34% 1.85% 7% $15,782
Year Ended July 31, 2003 .......... 11.35% 1.25% 1.36% 1.86% 18% $ 4,711
Year Ended July 31, 2002 .......... (17.70)% 0.35% 1.60% 1.89% 160% $ 3,932
Year Ended July 31, 2001+ ......... (20.62)% 0.52% 1.62% 1.89% 45% $ 2,685
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.08%.
See notes to financial statements.
111
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
--------------------------------------------- ---------------------------------------
Net Asset Net Net Realized Net Realized
Value, Investment and Unrealized Total from Net Gains from From Tax
Beginning Income Gains (Losses) Investment Investment Investment Return of
of Period (Loss) from Investments* Activities Income Transactions Capital
----------- ------------ ------------------- ------------ ------------ -------------- -----------
BALANCED FUND
Year Ended July 31, 2005 ... $12.10 0.22 1.01 1.23 (0.25) (0.03) --
Year Ended July 31, 2004 ... $11.37 0.20 0.75 0.95 (0.22) -- --
Year Ended July 31, 2003 ... $10.89 0.22 0.66 0.88 (0.26) (0.14) --
Year Ended July 31, 2002 ... $12.46 0.30 (1.20) (0.90) (0.31) (0.36) --
Year Ended July 31, 2001+ .. $12.48 0.36 1.28 1.64 (0.39) (1.27) --
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 ... $ 8.65 0.01 1.40 1.41 (0.01) -- --
Year Ended July 31, 2004 ... $ 7.73 -- 0.93 0.93 -- -- (0.01)
Year Ended July 31, 2003 ... $ 7.04 -- 0.69 0.69 -- -- --
Year Ended July 31, 2002 ... $ 9.91 (0.02) (2.21) (2.23) -- (0.64) --
Year Ended July 31, 2001+ .. $11.53 0.08 (0.39) (0.31) (0.15) (1.16) --
GROWTH PORTFOLIO
Year Ended July 31, 2005 ... $ 8.98 0.08 1.07 1.15 (0.08) -- --
Year Ended July 31, 2004 ... $ 8.21 0.07 0.76 0.83 (0.06) -- --
Year Ended July 31, 2003 ... $ 7.59 0.07 0.62 0.69 (0.07) -- --
Year Ended July 31, 2002 ... $ 9.38 0.08 (1.48) (1.40) (0.09) (0.30) --
Year Ended July 31, 2001+ .. $10.47 0.23 (0.42) (0.19) (0.23) (0.67) --
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 ... $ 9.48 0.14 0.87 1.01 (0.14) -- --
Year Ended July 31, 2004 ... $ 8.88 0.12 0.60 0.72 (0.12) -- --
Year Ended July 31, 2003 ... $ 8.33 0.12 0.56 0.68 (0.13) -- --
Year Ended July 31, 2002 ... $ 9.76 0.18 (1.14) (0.96) (0.19) (0.28) --
Year Ended July 31, 2001+ .. $10.54 0.24 (0.07) 0.17 (0.32) (0.63) --
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 ... $ 9.49 0.18 0.72 0.90 (0.18) -- --
Year Ended July 31, 2004 ... $ 9.04 0.16 0.45 0.61 (0.16) -- --
Year Ended July 31, 2003 ... $ 8.58 0.16 0.50 0.66 (0.17) (0.03) --
Year Ended July 31, 2002 ... $ 9.74 0.21 (0.94) (0.73) (0.23) (0.20) --
Year Ended July 31, 2001+ .. $10.06 0.32 0.15 0.47 (0.34) (0.45) --
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------
Net Asset
Value, Total Return Net
Total Capital Redemption End (Excluding Investment Net
Dividends Contribution Fees of Period Sales Charge) Income Expenses
----------- -------------- ------------ ----------- --------------- ------------ ----------
BALANCED FUND
Year Ended July 31, 2005 ... (0.28) --# -- $13.05 10.33% 1.77% 1.34%
Year Ended July 31, 2004 ... (0.22) -- --# $12.10 8.36% 1.64% 1.32%
Year Ended July 31, 2003 ... (0.40) -- -- $11.37 8.34% 2.03% 1.34%
Year Ended July 31, 2002 ... (0.67) -- -- $10.89 (7.55)% 2.57% 1.34%
Year Ended July 31, 2001+ .. (1.66) -- -- $12.46 13.93% 2.90% 1.31%
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 ... (0.01) -- -- $10.05 16.32% 0.18% 0.57%
Year Ended July 31, 2004 ... (0.01) -- --# $ 8.65 12.01% 0.02% 0.57%
Year Ended July 31, 2003 ... -- -- -- $ 7.73 9.81% (0.02)% 0.66%
Year Ended July 31, 2002 ... (0.64) -- -- $ 7.04 (23.76)% (0.31)% 0.71%
Year Ended July 31, 2001+ .. (1.31) -- -- $ 9.91 (3.42)% 0.78% 0.79%
GROWTH PORTFOLIO
Year Ended July 31, 2005 ... (0.08) -- --# $10.05 12.90% 1.01% 0.53%
Year Ended July 31, 2004 ... (0.06) -- --# $ 8.98 10.14% 0.84% 0.51%
Year Ended July 31, 2003 ... (0.07) -- -- $ 8.21 9.18% 0.94% 0.61%
Year Ended July 31, 2002 ... (0.39) -- -- $ 7.59 (15.49)% 0.96% 0.71%
Year Ended July 31, 2001+ .. (0.90) -- -- $ 9.38 (2.04)% 2.31% 0.78%
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 ... (0.14) -- -- $10.35 10.77% 1.46% 0.56%
Year Ended July 31, 2004 ... (0.12) -- --# $ 9.48 8.13% 1.27% 0.58%
Year Ended July 31, 2003 ... (0.13) -- -- $ 8.88 8.30% 1.51% 0.62%
Year Ended July 31, 2002 ... (0.47) -- -- $ 8.33 (10.17)% 2.04% 0.60%
Year Ended July 31, 2001+ .. (0.95) -- -- $ 9.76 1.61% 2.44% 0.63%
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 ... (0.18) -- -- $10.21 9.51% 1.79% 0.54%
Year Ended July 31, 2004 ... (0.16) -- --# $ 9.49 6.71% 1.68% 0.59%
Year Ended July 31, 2003 ... (0.20) -- -- $ 9.04 7.85% 1.87% 0.64%
Year Ended July 31, 2002 ... (0.43) -- -- $ 8.58 (7.80)% 2.48% 0.65%
Year Ended July 31, 2001+ .. (0.79) -- -- $ 9.74 4.91% 3.26% 0.77%
Expenses (before Portfolio Net Assets,
Reductions/ Turnover End of Period
Reimbursements) Rate** (000's)
------------------ ----------- --------------
BALANCED FUND
Year Ended July 31, 2005 ... 1.39% 70% $107,147
Year Ended July 31, 2004 ... 1.41% 19% $ 90,369
Year Ended July 31, 2003 ... 1.42% 86% $ 78,679
Year Ended July 31, 2002 ... 1.41% 34% $ 69,674
Year Ended July 31, 2001+ .. 1.38% 14% $ 54,978
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 ... 0.89% 16% $ 23,168
Year Ended July 31, 2004 ... 0.96% 31% $ 18,440
Year Ended July 31, 2003 ... 1.09% 100% $ 11,310
Year Ended July 31, 2002 ... 1.12% 50% $ 7,565
Year Ended July 31, 2001+ .. 1.20% 36% $ 1,393
GROWTH PORTFOLIO
Year Ended July 31, 2005 ... 0.83% 15% $ 31,323
Year Ended July 31, 2004 ... 0.90% 27% $ 23,117
Year Ended July 31, 2003 ... 1.06% 128% $ 10,978
Year Ended July 31, 2002 ... 1.14% 63% $ 4,448
Year Ended July 31, 2001+ .. 1.22% 38% $ 981
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 ... 0.79% 18% $ 51,709
Year Ended July 31, 2004 ... 0.83% 38% $ 43,856
Year Ended July 31, 2003 ... 0.86% 135% $ 28,745
Year Ended July 31, 2002 ... 0.82% 69% $ 14,312
Year Ended July 31, 2001+ .. 0.87% 51% $ 6,535
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 ... 0.86% 29% $ 22,164
Year Ended July 31, 2004 ... 0.98% 34% $ 16,640
Year Ended July 31, 2003 ... 1.07% 136% $ 10,988
Year Ended July 31, 2002 ... 1.07% 65% $ 6,236
Year Ended July 31, 2001+ .. 1.20% 62% $ 231
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Represents investments in affiliates for the Strategic Portfolios.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
112
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... $ 9.86 0.35 (0.09) 0.26
Year Ended July 31, 2004 .......... $10.05 0.34 (0.11) 0.23
Year Ended July 31, 2003 .......... $10.26 0.41 (0.05) 0.36
Year Ended July 31, 2002 .......... $10.10 0.48 0.20 0.68
Year Ended July 31, 2001 .......... $ 9.60 0.55 0.50 1.05
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... $10.46 0.20 (0.10) 0.10
Year Ended July 31, 2004 .......... $10.65 0.23 (0.11) 0.12
Year Ended July 31, 2003 .......... $10.70 0.36 0.01 0.37
Year Ended July 31, 2002 .......... $10.55 0.48 0.18 0.66
Year Ended July 31, 2001+ ......... $10.13 0.57 0.43 1.00
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... $11.08 0.41 (0.01) 0.40
Year Ended July 31, 2004 .......... $11.33 0.43 (0.11) 0.32
Year Ended July 31, 2003 .......... $11.43 0.46 0.11 0.57
Year Ended July 31, 2002 .......... $11.13 0.53 0.36 0.89
Year Ended July 31, 2001+ ......... $10.52 0.58 0.62 1.20
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... (0.45) (0.03) (0.48) 0.01 -- $ 9.65
Year Ended July 31, 2004 .......... (0.41) (0.01) (0.42) -- --# $ 9.86
Year Ended July 31, 2003 .......... (0.42) (0.15) (0.57) -- -- $10.05
Year Ended July 31, 2002 .......... (0.52) -- (0.52) -- -- $10.26
Year Ended July 31, 2001 .......... (0.55) -- (0.55) -- -- $10.10
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... (0.32) -- (0.32) --# -- $10.24
Year Ended July 31, 2004 .......... (0.31) -- (0.31) -- --# $10.46
Year Ended July 31, 2003 .......... (0.42) -- (0.42) -- -- $10.65
Year Ended July 31, 2002 .......... (0.51) -- (0.51) -- -- $10.70
Year Ended July 31, 2001+ ......... (0.58) -- (0.58) -- -- $10.55
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... (0.46) (0.01) (0.47) 0.01 --# $11.02
Year Ended July 31, 2004 .......... (0.48) (0.09) (0.57) -- --# $11.08
Year Ended July 31, 2003 .......... (0.52) (0.15) (0.67) -- -- $11.33
Year Ended July 31, 2002 .......... (0.56) (0.03) (0.59) -- -- $11.43
Year Ended July 31, 2001+ ......... (0.59) -- (0.59) -- -- $11.13
Ratios (to average net assets)/Supplemental Data
----------------------------------------------------------
Total Return Net Expenses (before Portfolio Net Assets,
(Excluding Investment Net Reductions/ Turnover End of Period
Sales Charge) Income Expenses Reimbursements) Rate* (000's)
--------------- ------------ ---------- ------------------ ----------- --------------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... 2.70%^^ 3.60% 1.01% 1.14% 79% $17,549
Year Ended July 31, 2004 .......... 2.36% 3.48% 1.00% 1.23% 39% $16,943
Year Ended July 31, 2003 .......... 3.47% 3.84% 1.01% 1.23% 43% $20,721
Year Ended July 31, 2002 .......... 6.96% 4.74% 1.00% 1.21% 18% $ 8,800
Year Ended July 31, 2001 .......... 11.25% 5.47% 0.99% 1.20% 25% $ 5,672
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... 0.93% 2.45% 1.00% 1.14% 23% $17,833
Year Ended July 31, 2004 .......... 1.17% 2.40% 0.98% 1.22% 34% $28,945
Year Ended July 31, 2003 .......... 3.52% 3.28% 0.98% 1.22% 32% $38,211
Year Ended July 31, 2002 .......... 6.44% 4.54% 1.00% 1.21% 29% $22,813
Year Ended July 31, 2001+ ......... 10.12% 5.43% 1.00% 1.22% 44% $ 9,918
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... 3.82%^ 3.70% 1.00% 1.10% 42% $50,219
Year Ended July 31, 2004 .......... 2.83% 3.76% 0.99% 1.22% 37% $43,044
Year Ended July 31, 2003 .......... 5.04% 3.97% 0.99% 1.22% 33% $50,591
Year Ended July 31, 2002 .......... 8.19% 4.69% 0.99% 1.20% 35% $35,869
Year Ended July 31, 2001+ ......... 11.63% 5.30% 0.99% 1.20% 24% $16,877
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.10%
^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.05%
See notes to financial statements
113
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... $10.26 0.34 (0.14) 0.20
Year Ended July 31, 2004 .......... $10.32 0.35 (0.05) 0.30
Year Ended July 31, 2003 .......... $10.38 0.35 (0.05) 0.30
Year Ended July 31, 2002 .......... $10.18 0.37 0.23 0.60
Year Ended July 31, 2001+ ......... $ 9.76 0.39 0.41 0.80
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $10.64 0.35 (0.13) 0.22
Year Ended July 31, 2004 .......... $10.70 0.35 (0.05) 0.30
Year Ended July 31, 2003 .......... $10.79 0.36 (0.08) 0.28
Year Ended July 31, 2002 .......... $10.51 0.39 0.27 0.66
Year Ended July 31, 2001+ ......... $10.16 0.40 0.35 0.75
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $10.26 0.30 (0.14) 0.16
Year Ended July 31, 2004 .......... $10.33 0.29 (0.01) 0.28
Year Ended July 31, 2003 .......... $10.37 0.29 (0.05) 0.24
Year Ended July 31, 2002 .......... $10.10 0.31 0.27 0.58
Year Ended July 31, 2001+ ......... $ 9.74 0.36 0.36 0.72
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... (0.34) (0.03) (0.37) --# -- $10.09
Year Ended July 31, 2004 .......... (0.35) (0.01) (0.36) -- --# $10.26
Year Ended July 31, 2003 .......... (0.33) (0.03) (0.36) -- -- $10.32
Year Ended July 31, 2002 .......... (0.39) (0.01) (0.40) -- -- $10.38
Year Ended July 31, 2001+ ......... (0.38) -- (0.38) -- -- $10.18
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.33) (0.05) (0.38) --# -- $10.48
Year Ended July 31, 2004 .......... (0.35) (0.01) (0.36) -- -- $10.64
Year Ended July 31, 2003 .......... (0.37) -- (0.37) -- -- $10.70
Year Ended July 31, 2002 .......... (0.38) -- (0.38) -- -- $10.79
Year Ended July 31, 2001+ ......... (0.40) -- (0.40) -- -- $10.51
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.30) (0.05) (0.35) --# -- $10.07
Year Ended July 31, 2004 .......... (0.30) (0.05) (0.35) -- -- $10.26
Year Ended July 31, 2003 .......... (0.28) -- (0.28) -- -- $10.33
Year Ended July 31, 2002 .......... (0.31) -- (0.31) -- -- $10.37
Year Ended July 31, 2001+ ......... (0.36) -- (0.36) -- -- $10.10
Ratios (to average net assets)/Supplemental Data
----------------------------------------------------------
Total Return Net Expenses (before Portfolio Net Assets,
(Excluding Investment Net Reductions/ Turnover End of Period
Sales Charge) Income Expenses Reimbursements) Rate* (000's)
--------------- ------------ ---------- ------------------ ----------- --------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... 1.90% 3.27% 0.89% 1.13% 28% $15,770
Year Ended July 31, 2004 .......... 2.93% 3.36% 0.88% 1.21% 5% $16,038
Year Ended July 31, 2003 .......... 2.96% 3.35% 0.89% 1.21% 7% $16,385
Year Ended July 31, 2002 .......... 6.05% 3.72% 0.89% 1.20% 10% $11,553
Year Ended July 31, 2001+ ......... 8.36% 3.88% 0.89% 1.20% 5% $ 8,022
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 2.11% 3.12% 0.83% 1.14% 30% $ 4,073
Year Ended July 31, 2004 .......... 2.89% 3.25% 0.83% 1.25% 11% $ 4,925
Year Ended July 31, 2003 .......... 2.58% 3.35% 0.84% 1.25% 6% $ 6,955
Year Ended July 31, 2002 .......... 6.38% 3.64% 0.87% 1.26% 13% $ 4,002
Year Ended July 31, 2001+ ......... 7.46% 3.79% 0.90% 1.29% 7% $ 3,267
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 1.57% 2.89% 1.00% 1.19% 23% $ 5,072
Year Ended July 31, 2004 .......... 2.69% 2.76% 1.00% 1.29% 0% $ 6,954
Year Ended July 31, 2003 .......... 2.29% 2.70% 1.07% 1.34% 21% $ 9,325
Year Ended July 31, 2002 .......... 5.87% 3.02% 1.08% 1.31% 60% $ 3,432
Year Ended July 31, 2001+ ......... 7.55% 3.63% 1.09% 1.33% 123% $ 3,764
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
114
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
A SHARES+
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Less
Net Asset Net Realized Dividends
Value, Net and Unrealized Total from from Net
Beginning Investment Gains (Losses) Investment Investment Capital
of Period Income from Investments Activities Income Contribution
----------- ------------ ------------------ ------------ ------------ --------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 0.016 -- 0.016 (0.016) --#
Year Ended July 31, 2004 ...... $1.000 0.003 -- 0.003 (0.003) --
Year Ended July 31, 2003 ...... $1.000 0.006 -- 0.006 (0.006) --
Year Ended July 31, 2002 ...... $1.000 0.015 -- 0.015 (0.015) --
Year Ended July 31, 2001 ...... $1.000 0.049 -- 0.049 (0.049) --
TREASURY RESERVE MONEY MARKET
FUND
Year Ended July 31, 2005 ...... $1.000 0.016 -- 0.016 (0.016) --#
Year Ended July 31, 2004 ...... $1.000 0.002 -- 0.002 (0.002) --
Year Ended July 31, 2003 ...... $1.000 0.006 -- 0.006 (0.006) --
Year Ended July 31, 2002 ...... $1.000 0.015 -- 0.015 (0.015) --
Year Ended July 31, 2001 ...... $1.000 0.048 -- 0.048 (0.048) --
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 0.012 (0.001) 0.011 (0.012) --#
Year Ended July 31, 2004 ...... $1.000 0.003 -- 0.003 (0.003) --
Year Ended July 31, 2003 ...... $1.000 0.005 -- 0.005 (0.005) --
Year Ended July 31, 2002 ...... $0.999 0.009 (0.001) 0.008 (0.009) --
Year Ended July 31, 2001 ...... $0.998 0.028 0.001 0.029 (0.028) --
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 0.019 -- 0.019 (0.019) --#
Year Ended July 31, 2004 ...... $1.000 0.006 -- 0.006 (0.006) --
Year Ended July 31, 2003 ...... $1.000 0.009 -- 0.009 (0.009) --
Year Ended July 31, 2002 ...... $1.000 0.018 -- 0.018 (0.018) --
Year Ended July 31, 2001 ...... $1.000 0.052 -- 0.052 (0.052) --
Ratios (to average net assets)/Supplemental Data
----------------------------------------------------------
Net Asset
Value, Total Return Net Expenses (before
Redemption End (Excluding Investment Net Reductions/
Fees of Period Sales Charge) Income Expenses Reimbursements)
------------ ----------- --------------- ------------ ---------- ------------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ...... -- $1.000 1.60% 1.58% 0.81% 0.95%
Year Ended July 31, 2004 ...... -- $1.000 0.31% 0.31% 0.79% 0.97%
Year Ended July 31, 2003 ...... -- $1.000 0.63% 0.64% 0.80% 0.97%
Year Ended July 31, 2002 ...... -- $1.000 1.53% 1.53% 0.79% 0.94%
Year Ended July 31, 2001 ...... -- $1.000 5.03% 4.96% 0.77% 0.94%
TREASURY RESERVE MONEY MARKET
FUND
Year Ended July 31, 2005 ...... -- $1.000 1.62% 1.62% 0.70% 0.69%
Year Ended July 31, 2004 ...... -- $1.000 0.25% 0.26% 0.77% 1.02%
Year Ended July 31, 2003 ...... -- $1.000 0.56% 0.60% 0.84% 1.01%
Year Ended July 31, 2002 ...... -- $1.000 1.53% 1.54% 0.79% 0.96%
Year Ended July 31, 2001 ...... -- $1.000 4.95% 4.90% 0.72% 0.95%
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ...... -- $1.000 1.25% 1.26% 0.60% 0.95%
Year Ended July 31, 2004 ...... -- $1.000 0.34% 0.34% 0.64% 0.96%
Year Ended July 31, 2003 ...... -- $1.000 0.48% 0.48% 0.79% 0.97%
Year Ended July 31, 2002 ...... -- $0.998 0.87% 0.87% 0.81% 0.96%
Year Ended July 31, 2001 ...... -- $0.999 2.83% 2.84% 0.80% 0.96%
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2005 ...... -- $1.000 1.92% 1.98% 0.51% 0.66%
Year Ended July 31, 2004 ...... -- $1.000 0.61% 0.60% 0.50% 0.66%
Year Ended July 31, 2003 ...... -- $1.000 0.93% 0.92% 0.51% 0.66%
Year Ended July 31, 2002 ...... -- $1.000 1.83% 1.91% 0.50% 0.64%
Year Ended July 31, 2001 ...... -- $1.000 5.31% 5.00% 0.50% 0.65%
Net Assets,
End of Period
(000's)
--------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ...... $409,511
Year Ended July 31, 2004 ...... $436,063
Year Ended July 31, 2003 ...... $439,061
Year Ended July 31, 2002 ...... $551,767
Year Ended July 31, 2001 ...... $564,977
TREASURY RESERVE MONEY MARKET
FUND
Year Ended July 31, 2005 ...... $ 70,793
Year Ended July 31, 2004 ...... $ 72,929
Year Ended July 31, 2003 ...... $ 46,753
Year Ended July 31, 2002 ...... $ 98,582
Year Ended July 31, 2001 ...... $ 99,777
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ...... $ 34,067
Year Ended July 31, 2004 ...... $ 31,833
Year Ended July 31, 2003 ...... $ 33,748
Year Ended July 31, 2002 ...... $ 31,408
Year Ended July 31, 2001 ...... $ 40,728
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2005 ...... $153,432
Year Ended July 31, 2004 ...... $ 89,613
Year Ended July 31, 2003 ...... $193,468
Year Ended July 31, 2002 ...... $207,511
Year Ended July 31, 2001 ...... $361,629
+ Represents Class 2 Shares for Institutional Prime Obligations Money Market
Fund.
# Less than one cent per share.
See notes to financial statements.
115
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Realized
Net Asset Net and Unrealized
Value, Investment Gains (Losses) Total from
Beginning Income from Investments Investment
of Period (Loss) and Futures Activities
----------- ------------ ------------------ ------------
VALUE FUND
Year Ended July 31, 2005 .......... $14.56 2.03 0.57 2.60
Year Ended July 31, 2004 .......... $12.83 -- 1.77 1.77
Year Ended July 31, 2003 .......... $12.57 0.05 0.79 0.84
Year Ended July 31, 2002 .......... $20.15 (0.02) (5.93) (5.95)
Year Ended July 31, 2001+ ......... $19.41 (0.03) 3.58 3.55
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... $12.97 (0.01) 0.92 0.91
Year Ended July 31, 2004 .......... $11.61 (0.03) 1.51 1.48
Year Ended July 31, 2003 .......... $10.77 (0.02) 0.88 0.86
Year Ended July 31, 2002 .......... $11.08 (0.03) (0.28) (0.31)
Year Ended July 31, 2001+ ......... $ 8.64 (0.08) 2.52 2.44
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... $10.80 0.02 1.56 1.58
Year Ended July 31, 2004 .......... $ 9.68 0.01 1.14 1.15
Year Ended July 31, 2003 .......... $ 8.99 0.01 0.69 0.70
Year Ended July 31, 2002 .......... $12.11 (0.05) (2.91) (2.96)
Year Ended July 31, 2001+ ......... $14.55 (0.06) (2.14) (2.20)
LARGE CAP FUND
Year Ended July 31, 2005 .......... $16.62 (0.24) 2.02 1.78
Year Ended July 31, 2004 .......... $15.68 (0.15) 1.09 0.94
Year Ended July 31, 2003 .......... $14.94 (0.09) 1.46 1.37
Year Ended July 31, 2002 .......... $20.70 (0.15) (4.42) (4.57)
Year Ended July 31, 2001+ ......... $27.74 (0.21) (2.77) (2.98)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
VALUE FUND
Year Ended July 31, 2005 .......... (0.04) -- (0.04) 0.01 -- $17.13
Year Ended July 31, 2004 .......... (0.04) -- (0.04) -- --# $14.56
Year Ended July 31, 2003 .......... (0.06) (0.52) (0.58) -- -- $12.83
Year Ended July 31, 2002 .......... (0.02) (1.61) (1.63) -- -- $12.57
Year Ended July 31, 2001+ ......... (0.04) (2.77) (2.81) -- -- $20.15
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... (0.05) (0.01) (0.06) --# -- $13.82
Year Ended July 31, 2004 .......... (0.02) (0.10) (0.12) -- --# $12.97
Year Ended July 31, 2003 .......... (0.02) -- (0.02) -- -- $11.61
Year Ended July 31, 2002 .......... -- -- -- -- -- $10.77
Year Ended July 31, 2001+ ......... -- -- -- -- -- $11.08
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... (0.08) (0.42) (0.50) --# -- $11.88
Year Ended July 31, 2004 .......... (0.03) -- (0.03) -- --# $10.80
Year Ended July 31, 2003 .......... (0.01) -- (0.01) -- -- $ 9.68
Year Ended July 31, 2002 .......... -- (0.16) (0.16) -- -- $ 8.99
Year Ended July 31, 2001+ ......... (0.02) (0.22) (0.24) -- -- $12.11
LARGE CAP FUND
Year Ended July 31, 2005 .......... (0.05) (0.48) (0.53) 0.03 -- $17.90
Year Ended July 31, 2004 .......... -- -- -- -- --# $16.62
Year Ended July 31, 2003 .......... -- (0.63) (0.63) -- -- $15.68
Year Ended July 31, 2002 .......... -- (1.19) (1.19) -- -- $14.94
Year Ended July 31, 2001+ ......... -- (4.06) (4.06) -- -- $20.70
Ratios (to average net assets)/Supplemental Data
--------------------------------------------------------------
Total Return
(Excluding Net Expenses (before Portfolio Net Assets,
Redemption Investment Net Reductions/ Turnover End of Period
Charge) Income Expenses Reimbursements) Rate* (000's)
------------------- ------------ ---------- ------------------ ----------- --------------
VALUE FUND
Year Ended July 31, 2005 .......... 17.95%### 0.11% 2.07% 2.12% 60% $26,569
Year Ended July 31, 2004 .......... 13.81%## 0.04% 2.09% 2.13% 44% $28,634
Year Ended July 31, 2003 .......... 7.17% 0.45% 2.11% 2.14% 117% $28,786
Year Ended July 31, 2002 .......... (31.68)% (0.27)% 2.10% 2.11% 59% $13,133
Year Ended July 31, 2001+ ......... 20.09% (0.16)% 2.09% 2.10% 43% $10,322
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... 7.03% (0.19)% 2.05% 2.15% 14% $17,158
Year Ended July 31, 2004 .......... 12.74% (0.35)% 2.04% 2.14% 18% $13,476
Year Ended July 31, 2003 .......... 7.98% (0.28)% 2.08% 2.24% 8% $ 7,758
Year Ended July 31, 2002 .......... (2.77)% (0.45)% 2.19% 2.44% 38% $ 4,800
Year Ended July 31, 2001+ ......... 28.24% (0.75)% 2.44% 2.80% 19% $ 1,586
ENHANCED MARKET FUND
Year Ended July 31, 2005 .......... 14.79% 0.44% 1.63% 1.75% 93% $10,397
Year Ended July 31, 2004 .......... 11.84% 0.02% 1.70% 1.79% 64% $10,839
Year Ended July 31, 2003 .......... 7.79% 0.06% 1.75% 1.87% 27% $ 9,566
Year Ended July 31, 2002 .......... (24.73)% (0.34)% 1.82% 1.94% 34% $ 8,644
Year Ended July 31, 2001+ ......... (15.28)% (0.48)% 1.80% 1.89% 42% $13,713
LARGE CAP FUND
Year Ended July 31, 2005 .......... 11.00%^^^^ (0.57)% 2.03% 2.12% 12% $22,192
Year Ended July 31, 2004 .......... 5.99% (0.87)% 2.01% 2.14% 8% $24,733
Year Ended July 31, 2003 .......... 9.63% (0.66)% 2.01% 2.14% 7% $23,334
Year Ended July 31, 2002 .......... (23.31)% (0.80)% 2.01% 2.12% 11% $21,739
Year Ended July 31, 2001+ ......... (12.40)% (0.91)% 2.00% 2.11% 10% $28,118
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
### The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.05%.
^^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.15%.
## The total return shown includes the losses on the disposal of investments
that were reimbursed by the advisor and administrator, which otherwise
would have reduced the total return by 0.08%.
See notes to financial statements.
116
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
---------------------------------------------
Net Realized
and Unrealized
Gains (Losses)
Net Asset Net from Investments,
Value, Investment Futures, and Total from
Beginning Income Foreign Investment
of Period (Loss) Currencies Activities
----------- ------------ ------------------- ------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... $ 8.67 (0.07) 1.07 1.00
Year Ended July 31, 2004 .......... $ 8.25 (0.11) 0.53 0.42
Year Ended July 31, 2003 .......... $ 7.56 (0.10) 0.79 0.69
Year Ended July 31, 2002 .......... $10.39 (0.27) (2.56) (2.83)
Year Ended July 31, 2001+ ......... $14.46 (0.17) (2.74) (2.91)
MID CAP FUND
Year Ended July 31, 2005 .......... $11.78 (0.10) 3.11 3.01
Year Ended July 31, 2004 .......... $10.07 (0.08) 1.79 1.71
Year Ended July 31, 2003 .......... $ 9.13 (0.07) 1.01 0.94
Year Ended July 31, 2002 .......... $11.83 (0.25) (2.45) (2.70)
Year Ended July 31, 2001+ ......... $16.52 (0.27) (4.42) (4.69)
SMALL CAP FUND
Year Ended July 31, 2005 .......... $ 7.75 (0.24) 1.78 1.54
Year Ended July 31, 2004 .......... $ 6.92 (0.15) 0.98 0.83
Year Ended July 31, 2003 .......... $ 6.89 (0.12) 0.15 0.03
Year Ended July 31, 2002 .......... $ 9.85 (0.17) (2.79) (2.96)
Year Ended July 31, 2001+ ......... $12.31 (0.22) (1.03) (1.25)
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... $11.19 0.07 2.56 2.63
Year Ended July 31, 2004 .......... $ 8.49 (0.03) 2.73 2.70
Year Ended July 31, 2003 .......... $ 7.64 -- 0.85 0.85
Year Ended July 31, 2002 .......... $ 9.35 (0.03) (1.68) (1.71)
Year Ended July 31, 2001+ ......... $12.25 (0.05) (2.49) (2.54)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contributions Fees of Period
------------ -------------- ----------- --------------- ------------ -----------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... (0.03) -- (0.03) 0.01 -- $ 9.65
Year Ended July 31, 2004 .......... -- -- -- -- --# $ 8.67
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 8.25
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.56
Year Ended July 31, 2001+ ......... -- (1.16) (1.16) -- -- $10.39
MID CAP FUND
Year Ended July 31, 2005 .......... (0.02) -- (0.02) --# -- $14.77
Year Ended July 31, 2004 .......... -- -- -- -- --# $11.78
Year Ended July 31, 2003 .......... -- -- -- -- -- $10.07
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 9.13
Year Ended July 31, 2001+ ......... -- -- -- -- -- $11.83
SMALL CAP FUND
Year Ended July 31, 2005 .......... -- -- -- --# -- $ 9.29
Year Ended July 31, 2004 .......... -- -- -- -- --# $ 7.75
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 6.92
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 6.89
Year Ended July 31, 2001+ ......... -- (1.21) (1.21) -- -- $ 9.85
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... (0.04) -- (0.04) --# -- $13.78
Year Ended July 31, 2004 .......... -- -- -- -- --# $11.19
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 8.49
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.64
Year Ended July 31, 2001+ ......... -- (0.36) (0.36) -- -- $ 9.35
Ratios (to average net assets)/Supplemental Data
------------------------------------------------------------
Total Return
(Excluding Net Expenses (before Portfolio Net Assets,
Redemption Investment Net Reductions/ Turnover End of Period
Charge) Income Expenses Reimbursements) Rate* (000's)
----------------- ------------ ---------- ------------------ ----------- --------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... 11.70%^^^ (0.59)% 2.05% 2.09% 12% $ 6,699
Year Ended July 31, 2004 .......... 5.09% (1.10)% 2.05% 2.13% 71% $ 7,818
Year Ended July 31, 2003 .......... 9.13% (1.21)% 2.06% 2.13% 151% $ 8,571
Year Ended July 31, 2002 .......... (27.24)% (3.86)% 2.04% 2.12% 115% $ 8,746
Year Ended July 31, 2001+ ......... (21.77)% (1.35)% 1.96% 2.11% 100% $ 8,967
MID CAP FUND
Year Ended July 31, 2005 .......... 25.61% (0.50)% 1.86% 2.23% 96% $ 8,552
Year Ended July 31, 2004 .......... 17.00% (0.67)% 1.85% 2.35% 105% $ 7,376
Year Ended July 31, 2003 .......... 10.30% (0.68)% 1.90% 2.40% 59% $ 6,525
Year Ended July 31, 2002 .......... (22.82)% (2.07)% 2.41% 2.58% 221% $ 7,066
Year Ended July 31, 2001+ ......... (28.29)% (1.91)% 2.32% 2.41% 120% $11,323
SMALL CAP FUND
Year Ended July 31, 2005 .......... 19.87% (1.84)% 2.14% 2.30% 174% $ 2,589
Year Ended July 31, 2004 .......... 11.99% (2.03)% 2.33% 2.52% 171% $ 2,575
Year Ended July 31, 2003 .......... 0.44% (2.01)% 2.35% 2.53% 221% $ 1,987
Year Ended July 31, 2002 .......... (30.05)% (2.01)% 2.36% 2.52% 227% $ 2,014
Year Ended July 31, 2001+ ......... (11.03)% (1.97)% 2.36% 2.52% 220% $ 2,975
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2005 .......... 23.52% 0.58% 2.11% 2.33% 12% $ 3,242
Year Ended July 31, 2004 .......... 31.80% 0.30% 2.09% 2.59% 7% $ 2,147
Year Ended July 31, 2003 .......... 11.13% 0.75% 2.11% 2.61% 18% $ 810
Year Ended July 31, 2002 .......... (18.29)% (0.39)% 2.36% 2.64% 160% $ 471
Year Ended July 31, 2001+ ......... (21.25)% (0.44)% 2.38% 2.65% 45% $ 516
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.08%.
See notes to financial statements.
117
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
---------------------------------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from
Beginning Income Gains (Losses) Investment
of Period (Loss) from Investments* Activities
----------- ------------ ------------------- ------------
BALANCED FUND
Year Ended July 31, 2005 .......... $12.07 0.13 0.99 1.12
Year Ended July 31, 2004 .......... $11.34 0.11 0.75 0.86
Year Ended July 31, 2003 .......... $10.86 0.14 0.66 0.80
Year Ended July 31, 2002 .......... $12.42 0.22 (1.19) (0.97)
Year Ended July 31, 2001+ ......... $12.45 0.28 1.26 1.54
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... $ 8.32 (0.03) 1.32 1.29
Year Ended July 31, 2004 .......... $ 7.49 (0.03) 0.87 0.84
Year Ended July 31, 2003 .......... $ 6.87 (0.03) 0.65 0.62
Year Ended July 31, 2002 .......... $ 9.77 (0.07) (2.19) (2.26)
Year Ended July 31, 2001+ ......... $11.42 0.06 (0.44) (0.38)
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... $ 8.88 0.05 1.03 1.08
Year Ended July 31, 2004 .......... $ 8.16 0.01 0.74 0.75
Year Ended July 31, 2003 .......... $ 7.55 0.01 0.62 0.63
Year Ended July 31, 2002 .......... $ 9.34 0.02 (1.48) (1.46)
Year Ended July 31, 2001+ ......... $10.44 0.15 (0.41) (0.26)
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... $ 9.46 0.08 0.85 0.93
Year Ended July 31, 2004 .......... $ 8.86 0.05 0.61 0.66
Year Ended July 31, 2003 .......... $ 8.32 0.06 0.56 0.62
Year Ended July 31, 2002 .......... $ 9.77 0.12 (1.16) (1.04)
Year Ended July 31, 2001+ ......... $10.53 0.24 (0.12) 0.12
MODERAGE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... $ 9.44 0.11 0.71 0.82
Year Ended July 31, 2004 .......... $ 9.01 0.08 0.45 0.53
Year Ended July 31, 2003 .......... $ 8.56 0.09 0.50 0.59
Year Ended July 31, 2002 .......... $ 9.71 0.17 (0.95) (0.78)
Year Ended July 31, 2001+ ......... $10.04 0.25 0.15 0.40
Ratios (to
average net
assets)/Suppl
lemental
Less Dividends from Data
--------------------------------------- -------------
Net Realized Net Asset Total Return
Net Gains from Value, (Excluding
Investment Investment Total Capital Redemption End Redemption
Income Transactions Dividends Contribution Fees of Period Charge)
------------ -------------- ----------- -------------- ------------ ----------- -------------
BALANCED FUND
Year Ended July 31, 2005 .......... (0.16) (0.03) (0.19) --# -- $13.00 9.40%
Year Ended July 31, 2004 .......... (0.13) -- (0.13) -- --# $12.07 7.59%
Year Ended July 31, 2003 .......... (0.18) (0.14) (0.32) -- -- $11.34 7.55%
Year Ended July 31, 2002 .......... (0.23) (0.36) (0.59) -- -- $10.86 (8.17)%
Year Ended July 31, 2001+ ......... (0.30) (1.27) (1.57) -- -- $12.42 13.03%
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... -- -- -- --# -- $ 9.61 15.53%
Year Ended July 31, 2004 .......... (0.01) -- (0.01) -- --# $ 8.32 11.16%
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 7.49 9.02%
Year Ended July 31, 2002 .......... -- (0.64) (0.64) -- -- $ 6.87 (24.43)%
Year Ended July 31, 2001+ ......... (0.11) (1.16) (1.27) -- -- $ 9.77 (4.06)%
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... (0.05) -- (0.05) --# -- $ 9.91 12.15%
Year Ended July 31, 2004 .......... (0.03) -- (0.03) -- --# $ 8.88 9.15%
Year Ended July 31, 2003 .......... (0.02) -- (0.02) -- -- $ 8.16 8.39%
Year Ended July 31, 2002 .......... (0.03) (0.30) (0.33) -- -- $ 7.55 (16.13)%
Year Ended July 31, 2001+ ......... (0.17) (0.67) (0.84) -- -- $ 9.34 (2.82)%
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... (0.09) -- (0.09) --# -- $10.30 9.81%
Year Ended July 31, 2004 .......... (0.06) -- (0.06) -- --# $ 9.46 7.49%
Year Ended July 31, 2003 .......... (0.08) -- (0.08) -- -- $ 8.86 7.45%
Year Ended July 31, 2002 .......... (0.13) (0.28) (0.41) -- -- $ 8.32 (10.98)%
Year Ended July 31, 2001+ ......... (0.25) (0.63) (0.88) -- -- $ 9.77 1.09%
MODERAGE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... (0.11) -- (0.11) --# -- $10.15 8.74%
Year Ended July 31, 2004 .......... (0.10) -- (0.10) -- --# $ 9.44 5.86%
Year Ended July 31, 2003 .......... (0.11) (0.03) (0.14) -- -- $ 9.01 7.02%
Year Ended July 31, 2002 .......... (0.17) (0.20) (0.37) -- -- $ 8.56 (8.38)%
Year Ended July 31, 2001+ ......... (0.28) (0.45) (0.73) -- -- $ 9.71 4.09%
Ratios (to average net assets)/Supplemental
Data
------------------------------------------
Net Expenses (before Portfolio Net Assets,
Investment Net Reductions/ Turnover End of Period
Income Expenses Reimbursements) Rate** (000's)
------------ ---------- ------------------ ----------- --------------
BALANCED FUND
Year Ended July 31, 2005 .......... 1.04% 2.09% 2.16% 70% $25,270
Year Ended July 31, 2004 .......... 0.89% 2.07% 2.16% 19% $24,755
Year Ended July 31, 2003 .......... 1.27% 2.09% 2.17% 86% $20,004
Year Ended July 31, 2002 .......... 1.81% 2.09% 2.16% 34% $16,742
Year Ended July 31, 2001+ ......... 2.20% 2.06% 2.12% 14% $ 9,004
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... (0.57)% 1.32% 1.67% 16% $16,146
Year Ended July 31, 2004 .......... (0.79)% 1.31% 1.70% 31% $10,062
Year Ended July 31, 2003 .......... (0.78)% 1.40% 1.83% 100% $ 2,014
Year Ended July 31, 2002 .......... (1.04)% 1.46% 1.87% 50% $ 761
Year Ended July 31, 2001+ ......... 0.58% 1.52% 1.93% 36% $ 386
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... 0.26% 1.28% 1.59% 15% $31,615
Year Ended July 31, 2004 .......... 0.08% 1.25% 1.64% 27% $17,334
Year Ended July 31, 2003 .......... 0.19% 1.36% 1.81% 128% $ 4,491
Year Ended July 31, 2002 .......... 0.22% 1.45% 1.89% 63% $ 1,886
Year Ended July 31, 2001+ ......... 1.53% 1.53% 1.97% 38% $ 1,710
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... 0.72% 1.31% 1.58% 18% $20,028
Year Ended July 31, 2004 .......... 0.52% 1.33% 1.58% 38% $13,141
Year Ended July 31, 2003 .......... 0.76% 1.37% 1.61% 135% $ 3,839
Year Ended July 31, 2002 .......... 1.31% 1.35% 1.58% 69% $ 1,607
Year Ended July 31, 2001+ ......... 2.40% 1.37% 1.60% 51% $ 1,656
MODERAGE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... 1.06% 1.29% 1.64% 29% $14,313
Year Ended July 31, 2004 .......... 0.95% 1.33% 1.72% 34% $10,280
Year Ended July 31, 2003 .......... 1.12% 1.40% 1.82% 136% $ 2,812
Year Ended July 31, 2002 .......... 1.74% 1.39% 1.81% 65% $ 970
Year Ended July 31, 2001+ ......... 2.59% 1.51% 1.92% 62% $ 1,231
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Represents investments in affiliates for the Strategic Portfolios.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
118
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... $ 9.85 0.28 (0.08) 0.20
Year Ended July 31, 2004 .......... $10.04 0.27 (0.11) 0.16
Year Ended July 31, 2003 .......... $10.26 0.33 (0.06) 0.27
Year Ended July 31, 2002 .......... $10.10 0.42 0.19 0.61
Year Ended July 31, 2001+ ......... $ 9.61 0.47 0.51 0.98
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... $10.45 0.15 (0.14) 0.01
Year Ended July 31, 2004 .......... $10.64 0.16 (0.12) 0.04
Year Ended July 31, 2003 .......... $10.69 0.28 0.01 0.29
Year Ended July 31, 2002 .......... $10.54 0.42 0.17 0.59
Year Ended July 31, 2001+ ......... $10.13 0.49 0.42 0.91
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... $11.05 0.32 (.01) 0.31
Year Ended July 31, 2004 .......... $11.30 0.33 (0.10) 0.23
Year Ended July 31, 2003 .......... $11.40 0.37 0.11 0.48
Year Ended July 31, 2002 .......... $11.10 0.43 0.37 0.80
Year Ended July 31, 2001+ ......... $10.50 0.50 0.61 1.11
Ratios (to
average net
assets)/Suppl
lemental
Less Dividends from Data
--------------------------------------- -------------
Net Realized Net Asset Total Return
Net Gains from Value, (Excluding
Investment Investment Total Capital Redemption End Redemption
Income Transactions Dividends Contribution Fees of Period Charge)
------------ -------------- ----------- -------------- ------------ ----------- -------------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... (0.38) (0.03) (0.41) 0.01 -- $ 9.65 2.06%^^
Year Ended July 31, 2004 .......... (0.34) (0.01) (0.35) -- --# $ 9.85 1.58%
Year Ended July 31, 2003 .......... (0.34) (0.15) (0.49) -- -- $10.04 2.61%
Year Ended July 31, 2002 .......... (0.45) -- (0.45) -- -- $10.26 6.18%
Year Ended July 31, 2001+ ......... (0.49) -- (0.49) -- -- $10.10 10.36%
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... (0.24) -- (0.24) --# -- $10.22 0.10%
Year Ended July 31, 2004 .......... (0.23) -- (0.23) -- --# $10.45 0.41%
Year Ended July 31, 2003 .......... (0.34) -- (0.34) -- -- $10.64 2.76%
Year Ended July 31, 2002 .......... (0.44) -- (0.44) -- -- $10.69 5.69%
Year Ended July 31, 2001+ ......... (0.50) -- (0.50) -- -- $10.54 9.20%
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... (0.38) (0.01) (0.39) 0.01 -- $10.98 2.98%^
Year Ended July 31, 2004 .......... (0.39) (0.09) (0.48) -- --# $11.05 2.07%
Year Ended July 31, 2003 .......... (0.43) (0.15) (0.58) -- -- $11.30 4.27%
Year Ended July 31, 2002 .......... (0.47) (0.03) (0.50) -- -- $11.40 7.43%
Year Ended July 31, 2001+ ......... (0.51) -- (0.51) -- -- $11.10 10.77%
Ratios (to average net assets)/Supplemental
Data
------------------------------------------
Net Expenses (before Portfolio Net Assets,
Investment Net Reductions/ Turnover End of Period
Income Expenses Reimbursements) Rate* (000's)
------------ ---------- ------------------ ----------- --------------
GOVERNMENT INCOME FUND
Year Ended July 31, 2005 .......... 2.83% 1.75% 1.84% 79% $ 6,165
Year Ended July 31, 2004 .......... 2.73% 1.75% 1.98% 39% $ 7,558
Year Ended July 31, 2003 .......... 3.08% 1.76% 1.98% 43% $10,228
Year Ended July 31, 2002 .......... 4.00% 1.75% 1.96% 18% $ 3,542
Year Ended July 31, 2001+ ......... 4.65% 1.74% 1.95% 25% $ 1,635
LIMITED TERM BOND FUND
Year Ended July 31, 2005 .......... 1.70% 1.75% 1.90% 23% $14,233
Year Ended July 31, 2004 .......... 1.65% 1.73% 1.97% 34% $19,641
Year Ended July 31, 2003 .......... 2.52% 1.73% 1.97% 32% $23,190
Year Ended July 31, 2002 .......... 3.78% 1.75% 1.96% 29% $10,307
Year Ended July 31, 2001+ ......... 4.66% 1.75% 1.97% 44% $ 2,614
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... 2.95% 1.75% 1.85% 42% $ 6,298
Year Ended July 31, 2004 .......... 3.00% 1.74% 1.98% 37% $ 7,356
Year Ended July 31, 2003 .......... 3.24% 1.74% 1.97% 33% $10,168
Year Ended July 31, 2002 .......... 3.90% 1.74% 1.95% 35% $ 9,796
Year Ended July 31, 2001+ ......... 4.55% 1.73% 1.95% 24% $ 7,342
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.10%
^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.05%
See notes to financial statements.
119
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... $10.24 0.26 (0.14) 0.12
Year Ended July 31, 2004 .......... $10.31 0.27 (0.06) 0.21
Year Ended July 31, 2003 .......... $10.36 0.27 (0.04) 0.23
Year Ended July 31, 2002 .......... $10.17 0.30 0.22 0.52
Year Ended July 31, 2001+ ......... $ 9.75 0.32 0.41 0.73
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $10.62 0.25 (0.12) 0.13
Year Ended July 31, 2004 .......... $10.68 0.27 (0.05) 0.22
Year Ended July 31, 2003 .......... $10.76 0.29 (0.08) 0.21
Year Ended July 31, 2002 .......... $10.49 0.29 0.28 0.57
Year Ended July 31, 2001+ ......... $10.15 0.32 0.34 0.66
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $10.26 0.22 (0.13) 0.09
Year Ended July 31, 2004 .......... $10.34 0.21 (0.02) 0.19
Year Ended July 31, 2003 .......... $10.38 0.20 (0.04) 0.16
Year Ended July 31, 2002 .......... $10.12 0.24 0.26 0.50
Year Ended July 31, 2001+ ......... $ 9.76 0.29 0.36 0.65
Ratios (to
average net
assets)/Suppl
lemental
Less Dividends from Data
--------------------------------------- -------------
Net Realized Net Asset Total Return
Net Gains from Value, (Excluding
Investment Investment Total Capital Redemption End Redemption
Income Transactions Dividends Contribution Fees of Period Charge)
------------ -------------- ----------- -------------- ------------ ----------- -------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... (0.26) (0.03) (0.29) --# -- $10.07 1.17%
Year Ended July 31, 2004 .......... (0.27) (0.01) (0.28) -- -- $10.24 2.06%
Year Ended July 31, 2003 .......... (0.25) (0.03) (0.28) -- -- $10.31 2.19%
Year Ended July 31, 2002 .......... (0.32) (0.01) (0.33) -- -- $10.36 5.20%
Year Ended July 31, 2001+ ......... (0.31) -- (0.31) -- -- $10.17 7.60%
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.25) (0.05) (0.30) --# -- $10.45 1.29%
Year Ended July 31, 2004 .......... (0.27) (0.01) (0.28) -- -- $10.62 2.12%
Year Ended July 31, 2003 .......... (0.29) -- (0.29) -- -- $10.68 1.91%
Year Ended July 31, 2002 .......... (0.30) -- (0.30) -- -- $10.76 5.56%
Year Ended July 31, 2001+ ......... (0.32) -- (0.32) -- -- $10.49 6.61%
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.23) (0.05) (0.28) 0.01 -- $10.08 0.93%
Year Ended July 31, 2004 .......... (0.22) (0.05) (0.27) -- -- $10.26 1.83%
Year Ended July 31, 2003 .......... (0.20) -- (0.20) -- -- $10.34 1.56%
Year Ended July 31, 2002 .......... (0.24) -- (0.24) -- -- $10.38 4.98%
Year Ended July 31, 2001+ ......... (0.29) -- (0.29) -- -- $10.12 6.75%
Ratios (to average net assets)/Supplemental
Data
------------------------------------------
Net Expenses (before Portfolio Net Assets,
Investment Net Reductions/ Turnover End of Period
Income Expenses Reimbursements) Rate* (000's)
------------ ---------- ------------------ ----------- --------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... 2.51% 1.64% 1.84% 28% $3,728
Year Ended July 31, 2004 .......... 2.61% 1.63% 1.96% 5% $4,157
Year Ended July 31, 2003 .......... 2.61% 1.64% 1.96% 7% $4,496
Year Ended July 31, 2002 .......... 2.95% 1.64% 1.95% 10% $3,844
Year Ended July 31, 2001+ ......... 3.12% 1.64% 1.95% 5% $1,777
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 2.34% 1.59% 1.86% 30% $2,295
Year Ended July 31, 2004 .......... 2.49% 1.58% 2.00% 11% $2,988
Year Ended July 31, 2003 .......... 2.61% 1.59% 2.00% 6% $3,807
Year Ended July 31, 2002 .......... 2.90% 1.62% 2.01% 13% $2,647
Year Ended July 31, 2001+ ......... 3.03% 1.64% 2.04% 7% $1,385
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 2.14% 1.74% 1.96% 23% $1,948
Year Ended July 31, 2004 .......... 2.01% 1.75% 2.04% 0% $2,473
Year Ended July 31, 2003 .......... 1.95% 1.82% 2.09% 21% $2,936
Year Ended July 31, 2002 .......... 2.29% 1.82% 2.07% 60% $1,839
Year Ended July 31, 2001+ ......... 2.85% 1.84% 2.08% 123% $1,432
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
120
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
B SHARES+
Selected data for a share outstanding throughout the period indicated.
Less
Net Asset Dividends
Value, Net from Net
Beginning Investment Investment Capital Redemption
of Period Income Income Contribution Fees
----------- ------------ ------------ -------------- ------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 0.014 (0.014) --# --
Year Ended July 31, 2004 ...... $1.000 0.002 (0.002) -- --
Year Ended July 31, 2003 ...... $1.000 0.003 (0.003) -- --
Year Ended July 31, 2002 ...... $1.000 0.008 (0.008) -- --
Year Ended July 31, 2001 ...... $1.000 0.042 (0.042) -- --
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 0.017 (0.017) --# --
Year Ended July 31, 2004 ...... $1.000 0.004 (0.004) -- --
Year Ended July 31, 2003 ...... $1.000 0.007 (0.007) -- --
Year Ended July 31, 2002 ...... $1.000 0.016 (0.016) -- --
Year Ended July 31, 2001 ...... $1.000 0.049 (0.049) -- --
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------------
Net Asset
Value, Net Expenses (before Net Assets,
End Investment Net Reductions/ End of Period
of Period Total Return Income Expenses Reimbursements) (000's)
----------- -------------- ------------ ---------- ------------------ --------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 1.45% 1.43% 0.97% 1.72% $ 3,088
Year Ended July 31, 2004 ...... $1.000 0.16% 0.16% 0.94% 1.72% $ 3,175
Year Ended July 31, 2003 ...... $1.000 0.26% 0.26% 1.18% 1.72% $ 3,567
Year Ended July 31, 2002 ...... $1.000 0.77% 0.71% 1.54% 1.69% $ 3,891
Year Ended July 31, 2001 ...... $1.000 4.25% 3.75% 1.52% 1.69% $ 1,908
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2005 ...... $1.000 1.67% 1.61% 0.76% 0.91% $ 45,871
Year Ended July 31, 2004 ...... $1.000 0.36% 0.35% 0.75% 0.91% $ 52,183
Year Ended July 31, 2003 ...... $1.000 0.68% 0.77% 0.76% 0.91% $ 91,824
Year Ended July 31, 2002 ...... $1.000 1.58% 1.50% 0.75% 0.89% $210,031
Year Ended July 31, 2001 ...... $1.000 5.04% 4.81% 0.75% 0.90% $169,676
+ Represents Class 3 Shares for Institutional Prime Obligations Money Market
Fund.
# Less than one cent per share.
See notes to financial statements.
121
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Total from
Beginning Investment from Investments Investment
of Period Income and Futures Activities
----------- ------------ ------------------ ------------
VALUE FUND
Year Ended July 31, 2005 .......... $ 14.84 (0.01) 2.80 2.79
Year Ended July 31, 2004 .......... $ 13.04 0.13 1.80 1.93
Year Ended July 31, 2003 .......... $ 12.74 0.16 0.81 0.97
Year Ended July 31, 2002 .......... $ 20.34 0.11 (5.99) (5.88)
Year Ended July 31, 2001+ ......... $ 19.53 0.15 3.59 3.74
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... $ 13.40 0.10 0.97 1.07
Year Ended July 31, 2004 .......... $ 11.93 0.07 1.57 1.64
Year Ended July 31, 2003 .......... $ 11.01 0.07 0.91 0.98
Year Ended July 31, 2002 .......... $ 11.25 0.04 (0.25) (0.21)
Year Ended July 31, 2001+ ......... $ 8.73 0.02 2.52 2.54
ENHANCED
MARKET FUND
Year Ended July 31, 2004 .......... $ 11.05 0.16 1.55 1.71
Year Ended July 31, 2004 .......... $ 9.88 0.10 1.17 1.27
Year Ended July 31, 2003 .......... $ 9.17 0.08 0.71 0.79
Year Ended July 31, 2002 .......... $ 12.28 0.06 (2.97) (2.91)
Year Ended July 31, 2001+ ......... $ 14.65 0.06 (2.17) (2.11)
LARGE CAP FUND
Year Ended July 31, 2005 .......... $ 17.54 0.09 1.95 2.04
Year Ended July 31, 2004 .......... $ 16.40 -- 1.14 1.14
Year Ended July 31, 2003 .......... $ 15.49 0.03 1.54 1.57
Year Ended July 31, 2002 .......... $ 21.25 0.02 (4.58) (4.56)
Year Ended July 31, 2001+ ......... $ 28.14 -- (2.83) (2.83)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
VALUE FUND
Year Ended July 31, 2005 .......... (0.17) -- (0.17) 0.01 -- $17.47
Year Ended July 31, 2004 .......... (0.13) -- (0.13) -- -- $14.84
Year Ended July 31, 2003 .......... (0.15) (0.52) (0.67) -- -- $13.04
Year Ended July 31, 2002 .......... (0.11) (1.61) (1.72) -- -- $12.74
Year Ended July 31, 2001+ ......... (0.16) (2.77) (2.93) -- -- $20.34
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... (0.10) (0.01) (0.11) --# -- $14.36
Year Ended July 31, 2004 .......... (0.07) (0.10) (0.17) -- -- $13.40
Year Ended July 31, 2003 .......... (0.06) -- (0.06) -- -- $11.93
Year Ended July 31, 2002 .......... (0.03) -- (0.03) -- -- $11.01
Year Ended July 31, 2001+ ......... (0.02) -- (0.02) -- -- $11.25
ENHANCED
MARKET FUND
Year Ended July 31, 2004 .......... (0.15) (0.42) (0.57) --# -- $12.19
Year Ended July 31, 2004 .......... (0.10) -- (0.10) -- -- $11.05
Year Ended July 31, 2003 .......... (0.08) -- (0.08) -- -- $ 9.88
Year Ended July 31, 2002 .......... (0.04) (0.16) (0.20) -- -- $ 9.17
Year Ended July 31, 2001+ ......... (0.04) (0.22) (0.26) -- -- $12.28
LARGE CAP FUND
Year Ended July 31, 2005 .......... (0.06) (0.48) (0.54) 0.03 -- $19.07
Year Ended July 31, 2004 .......... -- -- -- -- -- $17.54
Year Ended July 31, 2003 .......... (0.03) (0.63) (0.66) -- -- $16.40
Year Ended July 31, 2002 .......... (0.01) (1.19) (1.20) -- -- $15.49
Year Ended July 31, 2001+ ......... -- (4.06) (4.06) -- -- $21.25
Ratios (to average net assets)/Supplemental Data
--------------------------------------------------------------
Net Expenses (before Portfolio Net Assets,
Total Investment Net Reductions/ Turnover End of Period
Return Income Expenses Reimbursements) Rate* (000's)
------------------- ------------ ---------- ------------------ ----------- --------------
VALUE FUND
Year Ended July 31, 2005 .......... 18.94%### 1.01% 1.17% 1.25% 60% $330,802
Year Ended July 31, 2004 .......... 14.86%## 0.94% 1.19% 1.28% 44% $363,393
Year Ended July 31, 2003 .......... 8.21% 1.32% 1.20% 1.29% 117% $390,734
Year Ended July 31, 2002 .......... (31.09)% 0.64% 1.20% 1.26% 59% $420,054
Year Ended July 31, 2001+ ......... 21.10% 0.76% 1.19% 1.25% 43% $565,484
SELECT EQUITY FUND
Year Ended July 31, 2005 .......... 8.02% 0.74% 1.15% 1.25% 14% $ 87,030
Year Ended July 31, 2004 .......... 13.73% 0.51% 1.14% 1.29% 18% $ 90,762
Year Ended July 31, 2003 .......... 8.96% 0.57% 1.19% 1.39% 8% $ 44,620
Year Ended July 31, 2002 .......... (1.84)% 0.42% 1.33% 1.63% 38% $ 8,419
Year Ended July 31, 2001+ ......... 29.12% 0.19% 1.56% 1.97% 19% $ 7,043
ENHANCED
MARKET FUND
Year Ended July 31, 2004 .......... 15.74% 1.34% 0.73% 0.83% 93% $157,434
Year Ended July 31, 2004 .......... 12.85% 0.91% 0.80% 0.94% 64% $143,148
Year Ended July 31, 2003 .......... 8.71% 0.92% 0.83% 1.00% 27% $ 98,133
Year Ended July 31, 2002 .......... (24.00)% 0.53% 0.93% 1.10% 34% $ 6,793
Year Ended July 31, 2001+ ......... (14.53)% 0.43% 0.90% 1.04% 42% $ 15,469
LARGE CAP FUND
Year Ended July 31, 2005 .......... 11.95%^^^^ 0.36% 1.13% 1.27% 12% $196,849
Year Ended July 31, 2004 .......... 6.99% 0.03% 1.11% 1.29% 8% $248,306
Year Ended July 31, 2003 .......... 10.65% 0.25% 1.11% 1.29% 7% $393,743
Year Ended July 31, 2002 .......... (22.64)% 0.10% 1.11% 1.27% 11% $393,942
Year Ended July 31, 2001+ ......... (11.60)% (0.01)% 1.10% 1.26% 10% $521,412
+ Net investment income (loss) is based on average shares outstanding during
the period.
* Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
# Less than one cent per share.
### The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.05%.
^^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.15%.
## The total return shown includes the losses on the disposal of investments
that were reimbursed by the advisor and administrator, which otherwise
would have reduced the total return by 0.08%.
See notes to financial statements.
122
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
---------------------------------------------
Net Realized
and Unrealized
Gains (Losses)
Net Asset Net from Investments,
Value, Investment Futures and Total from
Beginning Income Foreign Investment
of Period (Loss) Currencies Activities
----------- ------------ ------------------- ------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... $ 9.28 0.03 1.13 1.16
Year Ended July 31, 2004 .......... $ 8.74 (0.02) 0.56 0.54
Year Ended July 31, 2003 .......... $ 7.94 (0.03) 0.83 0.80
Year Ended July 31, 2002 .......... $10.82 (0.04) (2.84) (2.88)
Year Ended July 31, 2001+ ......... $14.89 (0.06) (2.85) (2.91)
MID CAP FUND
Year Ended July 31, 2005 .......... $12.30 0.05 3.24 3.29
Year Ended July 31, 2004 .......... $10.44 0.03 1.85 1.88
Year Ended July 31, 2003 .......... $ 9.40 0.02 1.04 1.06
Year Ended July 31, 2002 .......... $12.06 (0.13) (2.53) (2.66)
Year Ended July 31, 2001+ ......... $16.70 (0.15) (4.49) (4.64)
SMALL CAP FUND
Year Ended July 31, 2005 .......... $ 8.25 (0.09) 1.84 1.75
Year Ended July 31, 2004 .......... $ 7.31 (0.09) 1.03 0.94
Year Ended July 31, 2003 .......... $ 7.21 (0.07) 0.17 0.10
Year Ended July 31, 2002 .......... $10.22 (0.08) (2.93) (3.01)
Year Ended July 31, 2001+ ......... $12.61 (0.12) (1.06) (1.18)
INTERNATIONAL
EQUITY FUND
Year Ended July 31, 2005 .......... $11.50 0.18 2.65 2.83
Year Ended July 31, 2004 .......... $ 8.73 0.11 2.76 2.87
Year Ended July 31, 2003 .......... $ 7.83 0.02 0.89 0.91
Year Ended July 31, 2002 .......... $ 9.50 0.04 (1.70) (1.66)
Year Ended July 31, 2001+ ......... $12.37 0.06 (2.53) (2.47)
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... (0.04) -- (0.04) 0.01 -- $10.41
Year Ended July 31, 2004 .......... -- -- -- -- -- $ 9.28
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 8.74
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.94
Year Ended July 31, 2001+ ......... -- (1.16) (1.16) -- -- $10.82
MID CAP FUND
Year Ended July 31, 2005 .......... (0.05) -- (0.05) --# -- $15.54
Year Ended July 31, 2004 .......... (0.02) -- (0.02) -- --# $12.30
Year Ended July 31, 2003 .......... (0.02) -- (0.02) -- -- $10.44
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 9.40
Year Ended July 31, 2001+ ......... -- -- -- -- -- $12.06
SMALL CAP FUND
Year Ended July 31, 2005 .......... -- -- -- --# -- $10.00
Year Ended July 31, 2004 .......... -- -- -- -- --# $ 8.25
Year Ended July 31, 2003 .......... -- -- -- -- -- $ 7.31
Year Ended July 31, 2002 .......... -- -- -- -- -- $ 7.21
Year Ended July 31, 2001+ ......... -- (1.21) (1.21) -- -- $10.22
INTERNATIONAL
EQUITY FUND
Year Ended July 31, 2005 .......... (0.13) -- (0.13) --# -- $14.20
Year Ended July 31, 2004 .......... (0.11) -- (0.11) -- 0.01 $11.50
Year Ended July 31, 2003 .......... (0.02) -- (0.02) -- 0.01 $ 8.73
Year Ended July 31, 2002 .......... (0.01) -- (0.01) -- -- $ 7.83
Year Ended July 31, 2001+ ......... (0.04) (0.36) (0.40) -- -- $ 9.50
Ratios (to average net assets)/Supplemental Data
------------------------------------------------------------
Net Expenses (before Portfolio Net Assets,
Total Investment Net Reductions/ Turnover End of Period
Return Income Expenses Reimbursements) Rate* (000's)
----------------- ------------ ---------- ------------------ ----------- --------------
CAPITAL GROWTH FUND
Year Ended July 31, 2005 .......... 12.63%^^^ 0.30% 1.15% 1.25% 12% $219,234
Year Ended July 31, 2004 .......... 6.18% (0.20)% 1.15% 1.28% 71% $227,673
Year Ended July 31, 2003 .......... 10.08% (0.31)% 1.16% 1.28% 151% $224,798
Year Ended July 31, 2002 .......... (26.62)% (0.48)% 1.15% 1.27% 115% $242,193
Year Ended July 31, 2001+ ......... (21.11)% (0.50)% 1.11% 1.26% 100% $299,177
MID CAP FUND
Year Ended July 31, 2005 .......... 26.80% 0.41% 0.96% 1.38% 96% $219,904
Year Ended July 31, 2004 .......... 18.05% 0.22% 0.95% 1.50% 105% $149,229
Year Ended July 31, 2003 .......... 11.26% 0.23% 0.99% 1.54% 59% $117,498
Year Ended July 31, 2002 .......... (22.06)% (1.16)% 1.51% 1.73% 221% $ 30,453
Year Ended July 31, 2001+ ......... (27.78)% (1.03)% 1.42% 1.55% 120% $ 41,611
SMALL CAP FUND
Year Ended July 31, 2005 .......... 21.21% (0.94)% 1.23% 1.43% 174% $261,084
Year Ended July 31, 2004 .......... 12.86% (1.13)% 1.43% 1.68% 171% $209,558
Year Ended July 31, 2003 .......... 1.39% (1.11)% 1.45% 1.68% 221% $174,741
Year Ended July 31, 2002 .......... (29.45)% (1.11)% 1.46% 1.67% 227% $139,099
Year Ended July 31, 2001+ ......... (10.16)% (1.07)% 1.46% 1.67% 220% $172,735
INTERNATIONAL
EQUITY FUND
Year Ended July 31, 2005 .......... 24.63% 1.42% 1.21% 1.44% 12% $465,924
Year Ended July 31, 2004 .......... 33.02% 1.13% 1.19% 1.74% 7% $370,794
Year Ended July 31, 2003 .......... 11.73% 1.52% 1.21% 1.76% 18% $254,736
Year Ended July 31, 2002 .......... (17.49)% 0.56% 1.45% 1.79% 160% $185,374
Year Ended July 31, 2001+ ......... (20.50)% 0.59% 1.47% 1.79% 45% $145,744
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by
0.08%.
See notes to financial statements.
123
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
---------------------------------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from
Beginning Income Gains (Losses) Investment
of Period (Loss) from Investments* Activities
----------- ------------ ------------------- ------------
BALANCED FUND
Year Ended July 31, 2005 .......... $ 12.11 0.24 1.00 1.24
Year Ended July 31, 2004 .......... $ 11.38 0.22 0.75 0.97
Year Ended July 31, 2003 .......... $ 10.90 0.23 0.66 0.89
Year Ended July 31, 2002 .......... $ 12.45 0.32 (1.18) (0.86)
Year Ended July 31, 2001+ ......... $ 12.47 0.40 1.26 1.66
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... $ 8.65 0.03 1.38 1.41
Year Ended July 31, 2004 .......... $ 7.73 0.01 0.92 0.93
Year Ended July 31, 2003 .......... $ 7.03 -- 0.70 0.70
Year Ended July 31, 2002 .......... $ 9.90 (0.02) (2.21) (2.23)
Year Ended July 31, 2001+ ......... $ 11.51 0.14 (0.44) (0.30)
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... $ 9.01 0.12 1.05 1.17
Year Ended July 31, 2004 .......... $ 8.24 0.07 0.76 0.83
Year Ended July 31, 2003 .......... $ 7.62 0.07 0.62 0.69
Year Ended July 31, 2002 .......... $ 9.42 0.09 (1.50) (1.41)
Year Ended July 31, 2001+ ......... $ 10.51 0.24 (0.42) (0.18)
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... $ 9.52 0.15 0.87 1.02
Year Ended July 31, 2004 .......... $ 8.91 0.13 0.60 0.73
Year Ended July 31, 2003 .......... $ 8.36 0.14 0.55 0.69
Year Ended July 31, 2002 .......... $ 9.80 0.20 (1.16) (0.96)
Year Ended July 31, 2001+ ......... $ 10.56 0.32 (0.12) 0.20
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... $ 9.52 0.18 0.72 0.90
Year Ended July 31, 2004 .......... $ 9.07 0.16 0.45 0.61
Year Ended July 31, 2003 .......... $ 8.61 0.17 0.49 0.66
Year Ended July 31, 2002 .......... $ 9.76 0.23 (0.95) (0.72)
Year Ended July 31, 2001+ ......... $ 10.08 0.34 0.14 0.48
Ratios (to
average net
assets)/Sup
pplemental
Less Dividends from Data
--------------------------------------- -----------
Net Realized Net Asset
Net From Tax Gains from Value,
Investment Return of Investment Total Capital Redemption End
Income Capital Transactions Dividends Contribution Fees of Period
------------ ----------- -------------- ----------- -------------- ------------ -----------
BALANCED FUND
Year Ended July 31, 2005 .......... (0.27) -- (0.03) (0.30) --# -- $ 13.05
Year Ended July 31, 2004 .......... (0.24) -- -- (0.24) -- -- $ 12.11
Year Ended July 31, 2003 .......... (0.27) -- (0.14) (0.41) -- -- $ 11.38
Year Ended July 31, 2002 .......... (0.33) -- (0.36) (0.69) -- -- $ 10.90
Year Ended July 31, 2001+ ......... (0.41) -- (1.27) (1.68) -- -- $ 12.45
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... (0.01) -- -- (0.01) --# -- $ 10.05
Year Ended July 31, 2004 .......... -- (0.01) -- (0.01) -- -- $ 8.65
Year Ended July 31, 2003 .......... -- -- -- -- -- -- $ 7.73
Year Ended July 31, 2002 .......... -- -- (0.64) (0.64) -- -- $ 7.03
Year Ended July 31, 2001+ ......... (0.15) -- (1.16) (1.31) -- -- $ 9.90
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... (0.09) -- -- (0.09) --# -- $ 10.09
Year Ended July 31, 2004 .......... (0.06) -- -- (0.06) -- -- $ 9.01
Year Ended July 31, 2003 .......... (0.07) -- -- (0.07) -- -- $ 8.24
Year Ended July 31, 2002 .......... (0.09) -- (0.30) (0.39) -- -- $ 7.62
Year Ended July 31, 2001+ ......... (0.24) -- (0.67) (0.91) -- -- $ 9.42
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... (0.15) -- -- (0.15) --# -- $ 10.39
Year Ended July 31, 2004 .......... (0.12) -- -- (0.12) -- -- $ 9.52
Year Ended July 31, 2003 .......... (0.14) -- -- (0.14) -- -- $ 8.91
Year Ended July 31, 2002 .......... (0.20) -- (0.28) (0.48) -- -- $ 8.36
Year Ended July 31, 2001+ ......... (0.33) -- (0.63) (0.96) -- -- $ 9.80
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... (0.18) -- -- (0.18) --# -- $ 10.24
Year Ended July 31, 2004 .......... (0.16) -- -- (0.16) -- -- $ 9.52
Year Ended July 31, 2003 .......... (0.17) -- (0.03) (0.20) -- -- $ 9.07
Year Ended July 31, 2002 .......... (0.23) -- (0.20) (0.43) -- -- $ 8.61
Year Ended July 31, 2001+ ......... (0.35) -- (0.45) (0.80) -- -- $ 9.76
Ratios (to average net
assets)/Supplemental Data
-------------------------------------
Net Expenses (before Portfolio Net Assets,
Total Investment Net Reductions/ Turnover End of Period
Return Income Expenses Reimbursements) Rate** (000's)
------------- ------------ ---------- ------------------ ----------- --------------
BALANCED FUND
Year Ended July 31, 2005 .......... 10.40% 1.95% 1.19% 1.29% 70% $ 52,762
Year Ended July 31, 2004 .......... 8.52% 1.80% 1.17% 1.31% 19% $ 59,080
Year Ended July 31, 2003 .......... 8.49% 2.19% 1.19% 1.32% 86% $ 62,776
Year Ended July 31, 2002 .......... ( 7.27)% 2.72% 1.19% 1.31% 34% $ 68,542
Year Ended July 31, 2001+ ......... 14.09% 3.16% 1.16% 1.27% 14% $102,780
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2005 .......... 16.33% 0.26% 0.52% 0.82% 16% $ 15,143
Year Ended July 31, 2004 .......... 12.02% 0.08% 0.52% 0.86% 31% $ 16,752
Year Ended July 31, 2003 .......... 9.97% 0.03% 0.61% 0.99% 100% $ 14,403
Year Ended July 31, 2002 .......... (23.78)% (0.23)% 0.68% 1.04% 50% $ 13,497
Year Ended July 31, 2001+ ......... ( 3.30)% 1.34% 0.72% 1.08% 36% $ 23,313
GROWTH PORTFOLIO
Year Ended July 31, 2005 .......... 13.00% 1.10% 0.47% 0.74% 15% $ 8,092
Year Ended July 31, 2004 .......... 10.13% 0.88% 0.46% 0.80% 27% $ 10,301
Year Ended July 31, 2003 .......... 9.19% 1.01% 0.55% 0.95% 128% $ 10,633
Year Ended July 31, 2002 .......... (15.50)% 1.03% 0.66% 1.05% 63% $ 11,930
Year Ended July 31, 2001+ ......... ( 1.98)% 2.40% 0.73% 1.12% 38% $ 18,048
GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2005 .......... 10.77% 1.52% 0.51% 0.70% 18% $ 40,591
Year Ended July 31, 2004 .......... 8.25% 1.35% 0.53% 0.73% 38% $ 47,426
Year Ended July 31, 2003 .......... 8.32% 1.60% 0.57% 0.76% 135% $ 51,660
Year Ended July 31, 2002 .......... (10.19)% 2.07% 0.55% 0.73% 69% $ 55,180
Year Ended July 31, 2001+ ......... 1.84% 3.25% 0.57% 0.75% 51% $ 74,878
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2005 .......... 9.49% 1.85% 0.49% 0.79% 29% $ 14,128
Year Ended July 31, 2004 .......... 6.73% 1.76% 0.54% 0.88% 34% $ 18,645
Year Ended July 31, 2003 .......... 7.87% 1.99% 0.59% 0.96% 136% $ 17,500
Year Ended July 31, 2002 .......... (7.65)% 2.54% 0.59% 0.97% 65% $ 17,843
Year Ended July 31, 2001+ ......... 4.93% 3.48% 0.71% 1.09% 62% $ 20,264
+ Net investment income (loss) is based on average shares outstanding during
the period.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
# Less than one cent per share.
See notes to financial statements.
124
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
GOVERNMENT
INCOME FUND
Year Ended July 31, 2005 .......... $ 9.86 0.35 (0.07) 0.28
Year Ended July 31, 2004 .......... $ 10.05 0.36 (0.11) 0.25
Year Ended July 31, 2003 .......... $ 10.26 0.42 (0.05) 0.37
Year Ended July 31, 2002 .......... $ 10.10 0.49 0.21 0.70
Year Ended July 31, 2001+ ......... $ 9.61 0.56 0.50 1.06
LIMITED TERM
BOND FUND
Year Ended July 31, 2005 .......... $ 10.47 0.24 (0.14) 0.10
Year Ended July 31, 2004 .......... $ 10.66 0.27 (0.13) 0.14
Year Ended July 31, 2003 .......... $ 10.70 0.38 0.02 0.40
Year Ended July 31, 2002 .......... $ 10.55 0.50 0.18 0.68
Year Ended July 31, 2001+ ......... $ 10.13 0.58 0.43 1.01
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... $ 11.08 0.43 (0.01) 0.42
Year Ended July 31, 2004 .......... $ 11.33 0.45 (0.11) 0.34
Year Ended July 31, 2003 .......... $ 11.43 0.49 0.10 0.59
Year Ended July 31, 2002 .......... $ 11.13 0.53 0.37 0.90
Year Ended July 31, 2001+ ......... $ 10.52 0.60 0.61 1.21
Less Dividends from
---------------------------------------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End
Income Transactions Dividends Contribution Fees of Period
------------ -------------- ----------- -------------- ------------ -----------
GOVERNMENT
INCOME FUND
Year Ended July 31, 2005 .......... (0.46) (0.03) (0.49) 0.01 -- $ 9.66
Year Ended July 31, 2004 .......... (0.43) (0.01) (0.44) -- --# $ 9.86
Year Ended July 31, 2003 .......... (0.43) (0.15) (0.58) -- -- $ 10.05
Year Ended July 31, 2002 .......... (0.54) -- (0.54) -- -- $ 10.26
Year Ended July 31, 2001+ ......... (0.57) -- (0.57) -- -- $ 10.10
LIMITED TERM
BOND FUND
Year Ended July 31, 2005 .......... (0.33) -- (0.33) --# -- $ 10.24
Year Ended July 31, 2004 .......... (0.33) -- (0.33) -- --# $ 10.47
Year Ended July 31, 2003 .......... (0.44) -- (0.44) -- -- $ 10.66
Year Ended July 31, 2002 .......... (0.53) -- (0.53) -- -- $ 10.70
Year Ended July 31, 2001+ ......... (0.59) -- (0.59) -- -- $ 10.55
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... (0.48) (0.01) (0.49) 0.01 -- $ 11.02
Year Ended July 31, 2004 .......... (0.50) (0.09) (0.59) -- --# $ 11.08
Year Ended July 31, 2003 .......... (0.54) (0.15) (0.69) -- -- $ 11.33
Year Ended July 31, 2002 .......... (0.57) (0.03) (0.60) -- -- $ 11.43
Year Ended July 31, 2001+ ......... (0.60) -- (0.60) -- -- $ 11.13
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------------
Net Expenses (before Portfolio Net Assets,
Total Investment Net Reductions/ Turnover End of Period
Return Income Expenses Reimbursements) Rate* (000's)
-------------- ------------ ---------- ------------------ ----------- --------------
GOVERNMENT
INCOME FUND
Year Ended July 31, 2005 .......... 2.93%^^ 3.72% 0.85% 1.02% 79% $135,844
Year Ended July 31, 2004 .......... 2.51% 3.63% 0.85% 1.13% 39% $218,772
Year Ended July 31, 2003 .......... 3.62% 4.08% 0.86% 1.13% 43% $253,447
Year Ended July 31, 2002 .......... 7.12% 4.88% 0.85% 1.11% 18% $263,211
Year Ended July 31, 2001+ ......... 11.30% 5.62% 0.84% 1.10% 25% $302,099
LIMITED TERM
BOND FUND
Year Ended July 31, 2005 .......... 0.98% 2.61% 0.85% 1.01% 23% $134,532
Year Ended July 31, 2004 .......... 1.32% 2.55% 0.83% 1.12% 34% $209,977
Year Ended July 31, 2003 .......... 3.76% 3.52% 0.83% 1.12% 32% $181,187
Year Ended July 31, 2002 .......... 6.57% 4.71% 0.86% 1.12% 29% $151,819
Year Ended July 31, 2001+ ......... 10.26% 5.59% 0.86% 1.12% 44% $155,261
HIGH QUALITY BOND FUND
Year Ended July 31, 2005 .......... 3.97%^ 3.84% 0.85% 1.00% 42% $556,545
Year Ended July 31, 2004 .......... 2.99% 3.91% 0.84% 1.12% 37% $573,140
Year Ended July 31, 2003 .......... 5.19% 4.14% 0.84% 1.12% 33% $599,249
Year Ended July 31, 2002 .......... 8.34% 4.77% 0.84% 1.10% 35% $588,979
Year Ended July 31, 2001+ ......... 11.79% 5.47% 0.84% 1.10% 24% $609,708
+ Net investment income (loss) is based on average shares outstanding during
the period.
# Less than one cent per share.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
^^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.10%
^ The total return shown includes capital contributions by Amsouth. Without
such capital contributions, the total return would have been reduced by 0.05%
See notes to financial statements.
125
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gains (Losses) Investment
of Period Income from Investments Activities
----------- ------------ ------------------ ------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... $ 10.27 0.35 (0.14) 0.21
Year Ended July 31, 2004 .......... $ 10.33 0.37 (0.05) 0.32
Year Ended July 31, 2003 .......... $ 10.38 0.37 (0.04) 0.33
Year Ended July 31, 2002 .......... $ 10.19 0.40 0.21 0.61
Year Ended July 31, 2001+ ......... $ 9.77 0.41 0.41 0.82
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $ 10.66 0.35 (0.12) 0.23
Year Ended July 31, 2004 .......... $ 10.71 0.36 (0.03) 0.33
Year Ended July 31, 2003 .......... $ 10.80 0.38 (0.09) 0.29
Year Ended July 31, 2002 .......... $ 10.52 0.40 0.27 0.67
Year Ended July 31, 2001+ ......... $ 10.16 0.41 0.36 0.77
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... $ 10.25 0.31 (0.13) 0.18
Year Ended July 31, 2004 .......... $ 10.32 0.30 (0.01) 0.29
Year Ended July 31, 2003 .......... $ 10.36 0.31 (0.05) 0.26
Year Ended July 31, 2002 .......... $ 10.10 0.33 0.26 0.59
Year Ended July 31, 2001+ ......... $ 9.74 0.38 0.36 0.74
Ratios (to
average
net
assets)/Su
upplementa
al
Less Dividends from Data
--------------------------------------- ----------
Net Realized Net Asset
Net Gains from Value,
Investment Investment Total Capital Redemption End Total
Income Transactions Dividends Contribution Fees of Period Return
------------ -------------- ----------- -------------- ------------ ----------- ----------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... (0.35) (0.03) (0.38) --# -- $ 10.10 2.05%
Year Ended July 31, 2004 .......... (0.37) (0.01) (0.38) -- -- $ 10.27 3.08%
Year Ended July 31, 2003 .......... (0.35) (0.03) (0.38) -- -- $ 10.33 3.21%
Year Ended July 31, 2002 .......... (0.41) (0.01) (0.42) -- -- $ 10.38 6.10%
Year Ended July 31, 2001+ ......... (0.40) -- (0.40) -- -- $ 10.19 8.52%
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.35) (0.05) (0.40) --# -- $ 10.49 2.18%
Year Ended July 31, 2004 .......... (0.37) (0.01) (0.38) -- -- $ 10.66 3.14%
Year Ended July 31, 2003 .......... (0.38) -- (0.38) -- -- $ 10.71 2.72%
Year Ended July 31, 2002 .......... (0.39) -- (0.39) -- -- $ 10.80 6.54%
Year Ended July 31, 2001+ ......... (0.41) -- (0.41) -- -- $ 10.52 7.72%
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... (0.32) (0.05) (0.37) --# -- $ 10.06 1.72%
Year Ended July 31, 2004 .......... (0.31) (0.05) (0.36) -- -- $ 10.25 2.85%
Year Ended July 31, 2003 .......... (0.30) -- (0.30) -- -- $ 10.32 2.47%
Year Ended July 31, 2002 .......... (0.33) -- (0.33) -- -- $ 10.36 5.93%
Year Ended July 31, 2001+ ......... (0.38) -- (0.38) -- -- $ 10.10 7.70%
Ratios (to average net assets)/Supplemental
Data
------------------------------------------
Net Expenses (before Portfolio Net Assets,
Investment Net Reductions/ Turnover End of Period
Income Expenses Reimbursements) Rate* (000's)
------------ ---------- ------------------ ----------- --------------
HIGH QUALITY MUNICIPAL BOND
FUND
Year Ended July 31, 2005 .......... 3.41% 0.74% 0.99% 28% $294,799
Year Ended July 31, 2004 .......... 3.51% 0.73% 1.11% 5% $338,580
Year Ended July 31, 2003 .......... 3.51% 0.74% 1.11% 7% $351,021
Year Ended July 31, 2002 .......... 3.89% 0.75% 1.10% 10% $371,126
Year Ended July 31, 2001+ ......... 4.04% 0.74% 1.10% 5% $380,330
FLORIDA
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 3.24% 0.69% 1.04% 30% $ 43,663
Year Ended July 31, 2004 .......... 3.38% 0.68% 1.15% 11% $ 47,858
Year Ended July 31, 2003 .......... 3.51% 0.69% 1.15% 6% $ 50,536
Year Ended July 31, 2002 .......... 3.80% 0.72% 1.16% 13% $ 54,901
Year Ended July 31, 2001+ ......... 3.95% 0.75% 1.19% 7% $ 57,181
TENNESSEE
TAX-EXEMPT FUND
Year Ended July 31, 2005 .......... 3.04% 0.85% 1.03% 23% $ 27,827
Year Ended July 31, 2004 .......... 2.91% 0.85% 1.19% 0% $ 32,271
Year Ended July 31, 2003 .......... 2.86% 0.92% 1.24% 21% $ 39,569
Year Ended July 31, 2002 .......... 3.18% 0.93% 1.21% 60% $ 49,148
Year Ended July 31, 2001+ ......... 3.77% 0.94% 1.23% 123% $ 56,693
+ Net investment income (loss) is based on average shares outstanding during
the period.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
# Less than one cent per share.
See notes to financial statements.
126
- --------------------------------------------------------------------------------
AMSOUTH FUNDS
Financial Highlights
- --------------------------------------------------------------------------------
I SHARES+
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------------
Less
Net Asset Net Realized Dividends
Value, Net and Unrealized Total from from Net
Beginning Investment Gains (Losses) Investment Investment Capital
of Period Income from Investments Activities Income Contribution
----------- ------------ ------------------ ------------ ------------ --------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ........... $ 1.000 0.017 -- 0.017 (0.017) --#
Year Ended July 31, 2004 ........... $ 1.000 0.005 -- 0.005 (0.005) --
Year Ended July 31, 2003 ........... $ 1.000 0.008 -- 0.008 (0.008) --
Year Ended July 31, 2002 ........... $ 1.000 0.017 -- 0.017 (0.017) --
Year Ended July 31, 2001 ........... $ 1.000 0.051 -- 0.051 (0.051) --
TREASURY RESERVE MONEY MARKET FUND
Year Ended July 31, 2005 ........... $ 1.000 0.017 -- 0.017 (0.017) --#
Year Ended July 31, 2004 ........... $ 1.000 0.003 -- 0.003 (0.003) --
Year Ended July 31, 2003 ........... $ 1.000 0.007 -- 0.007 (0.007) --
Year Ended July 31, 2002 ........... $ 1.000 0.017 -- 0.017 (0.017) --
Year Ended July 31, 2001 ........... $ 1.000 0.049 -- 0.049 (0.049) --
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ........... $ 1.000 0.012 0.001 0.013 (0.012) --#
Year Ended July 31, 2004 ........... $ 1.000 0.003 -- 0.003 (0.003) --
Year Ended July 31, 2003 ........... $ 0.999 0.006 0.001 0.007 (0.006) --
Year Ended July 31, 2002 ........... $ 0.998 0.010 0.001 0.011 (0.010) --
Year Ended July 31, 2001 ........... $ 0.998 0.029 -- 0.029 (0.029) --
INSTITUTIONAL PRIME OBLIGATIONS MONEY
MARKET FUND
Year Ended July 31, 2005 ........... $ 1.000 0.021 -- 0.021 (0.021) --#
Year Ended July 31, 2004 ........... $ 1.000 0.009 -- 0.009 (0.009) --
Year Ended July 31, 2003 ........... $ 1.000 0.012 -- 0.012 (0.012) --
Year Ended July 31, 2002 ........... $ 1.000 0.021 -- 0.021 (0.021) --
Year Ended July 31, 2001 ........... $ 1.000 0.054 -- 0.054 (0.054) --
Ratios (to average net assets)/Supplemental Data
-----------------------------------------------------
Net Asset
Value, Net Expenses (before
Redemption End Total Investment Net Reductions/
Fees of Period Return Income Expenses Reimbursements)
------------ ----------- ---------- ------------ ---------- ------------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ........... -- $ 1.000 1.75% 1.75% 0.66% 0.85%
Year Ended July 31, 2004 ........... -- $ 1.000 0.46% 0.46% 0.64% 0.87%
Year Ended July 31, 2003 ........... -- $ 1.000 0.78% 0.83% 0.65% 0.87%
Year Ended July 31, 2002 ........... -- $ 1.000 1.68% 1.68% 0.64% 0.84%
Year Ended July 31, 2001 ........... -- $ 1.000 5.18% 5.06% 0.63% 0.84%
TREASURY RESERVE MONEY MARKET FUND
Year Ended July 31, 2005 ........... -- $ 1.000 1.67% 1.60% 0.65% 0.85%
Year Ended July 31, 2004 ........... -- $ 1.000 0.33% 0.35% 0.69% 0.92%
Year Ended July 31, 2003 ........... -- $ 1.000 0.71% 0.78% 0.68% 0.90%
Year Ended July 31, 2002 ........... -- $ 1.000 1.68% 1.70% 0.65% 0.86%
Year Ended July 31, 2001 ........... -- $ 1.000 5.06% 4.99% 0.62% 0.85%
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ........... -- $ 1.000 1.25% 1.22% 0.60% 0.84%
Year Ended July 31, 2004 ........... -- $ 1.000 0.34% 0.34% 0.64% 0.86%
Year Ended July 31, 2003 ........... -- $ 1.000 0.62% 0.63% 0.65% 0.87%
Year Ended July 31, 2002 ........... -- $ 0.999 1.02% 1.02% 0.66% 0.86%
Year Ended July 31, 2001 ........... -- $ 0.998 2.98% 2.95% 0.65% 0.86%
INSTITUTIONAL PRIME OBLIGATIONS MONEY
MARKET FUND
Year Ended July 31, 2005 ........... -- $ 1.000 2.17% 2.19% 0.25% 0.40%
Year Ended July 31, 2004 ........... -- $ 1.000 0.86% 0.85% 0.25% 0.41%
Year Ended July 31, 2003 ........... -- $ 1.000 1.19% 1.20% 0.26% 0.41%
Year Ended July 31, 2002 ........... -- $ 1.000 2.09% 2.08% 0.25% 0.39%
Year Ended July 31, 2001 ........... -- $ 1.000 5.57% 5.12% 0.25% 0.40%
Net Assets,
End of Period
(000's)
--------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2005 ........... $167,406
Year Ended July 31, 2004 ........... $164,907
Year Ended July 31, 2003 ........... $221,937
Year Ended July 31, 2002 ........... $770,519
Year Ended July 31, 2001 ........... $745,662
TREASURY RESERVE MONEY MARKET FUND
Year Ended July 31, 2005 ........... $ 96,014
Year Ended July 31, 2004 ........... $134,182
Year Ended July 31, 2003 ........... $ 41,676
Year Ended July 31, 2002 ........... $218,404
Year Ended July 31, 2001 ........... $266,738
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2005 ........... $106,977
Year Ended July 31, 2004 ........... $128,089
Year Ended July 31, 2003 ........... $129,415
Year Ended July 31, 2002 ........... $175,135
Year Ended July 31, 2001 ........... $151,905
INSTITUTIONAL PRIME OBLIGATIONS MONEY
MARKET FUND
Year Ended July 31, 2005 ........... $230,573
Year Ended July 31, 2004 ........... $176,540
Year Ended July 31, 2003 ........... $175,778
Year Ended July 31, 2002 ........... $250,091
Year Ended July 31, 2001 ........... $221,876
+ Represents Class 1 Shares for Institutional Prime Obligations Money Market
Fund.
# Less than one cent per share.
See notes to financial statements.
127
- ---------------------------------------------------
AMSOUTH FUNDS
Report of Independent
Registered Public Accounting Firm
- ---------------------------------------------------
The Shareholders and
Board of Trustees of AmSouth Funds
We have audited the accompanying statements of assets and liabilities of
AmSouth Funds (comprised of AmSouth Value Fund, AmSouth Capital Growth Fund,
AmSouth Large Cap Fund, AmSouth Mid Cap Fund, AmSouth Small Cap Fund, AmSouth
Balanced Fund, AmSouth Select Equity Fund, AmSouth Enhanced Market Fund,
AmSouth International Equity Fund, AmSouth Strategic Portfolios: Aggressive
Growth Portfolio, AmSouth Strategic Portfolios: Growth Portfolio, AmSouth
Strategic Portfolios: Growth and Income Portfolio, AmSouth Strategic
Portfolios: Moderate Growth and Income Portfolio, AmSouth High Quality Bond
Fund, AmSouth Limited Term Bond Fund, AmSouth Government Income Fund, AmSouth
High Quality Municipal Bond Fund, AmSouth Florida Tax-Exempt Fund, AmSouth
Tennessee Tax-Exempt Fund, AmSouth Prime Money Market Fund, AmSouth Treasury
Reserve Money Market Fund, AmSouth Tax-Exempt Money Market Fund and AmSouth
Institutional Prime Obligations Money Market Fund) ("the Funds") including the
schedules of portfolio investments, as of July 31, 2005, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Funds' internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of July 31, 2005, by correspondence with
the custodians and brokers. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
AmSouth Funds as of July 31, 2005, the results of their operations for the year
then ended, the changes in their net assets for each of the two years in the
period then ended, and their financial highlights for each of the five years or
periods in the period then ended, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Columbus, Ohio
September 23, 2005
128
Supplemental Information (Unaudited)
As a shareholder of the AmSouth Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; distribution [and/or service] 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the AmSouth Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period from February 1, 2005 through July
31, 2005.
Actual Expenses
The table below provides information about actual account values and
actual expenses. You may use the information below, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period
2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05
--------------- --------------- ------------------ -----------------
Value Fund .................... Class A Shares $ 1,000.00 $ 1,140.80 $ 7.01 1.32%
Class B Shares 1,000.00 1,132.20 10.94 2.07%
Class I Shares 1,000.00 1,142.70 6.22 1.17%
Select Equity Fund ............ Class A Shares 1,000.00 979.80 6.48 1.32%
Class B Shares 1,000.00 972.30 10.12 2.07%
Class I Shares 1,000.00 981.80 5.75 1.17%
Enhanced Market Fund .......... Class A Shares 1,000.00 1,144.00 4.52 0.85%
Class B Shares 1,000.00 1,136.50 8.48 1.60%
Class I Shares 1,000.00 1,145.40 3.72 0.70%
Large Cap Fund ................ Class A Shares 1,000.00 1,128.10 6.81 1.29%
Class B Shares 1,000.00 1,118.90 10.72 2.04%
Class I Shares 1,000.00 1,129.70 6.02 1.14%
Capital Growth Fund ........... Class A Shares 1,000.00 1,125.30 6.90 1.31%
Class B Shares 1,000.00 1,118.20 10.82 2.06%
Class I Shares 1,000.00 1,127.20 6.12 1.16%
Mid Cap Fund .................. Class A Shares 1,000.00 1,273.10 6.26 1.11%
Class B Shares 1,000.00 1,264.50 10.44 1.86%
Class I Shares 1,000.00 1,274.10 5.41 0.96%
Small Cap Fund ................ Class A Shares 1,000.00 1,157.70 6.95 1.30%
Class B Shares 1,000.00 1,146.80 10.91 2.05%
Class I Shares 1,000.00 1,157.60 6.15 1.15%
International Equity Fund ..... Class A Shares 1,000.00 1,067.40 7.23 1.41%
Class B Shares 1,000.00 1,061.20 11.04 2.16%
Class I Shares 1,000.00 1,070.20 6.47 1.26%
Balanced Fund ................. Class A Shares 1,000.00 1,078.90 6.96 1.35%
Class B Shares 1,000.00 1,071.20 10.78 2.10%
Class I Shares 1,000.00 1,080.50 6.19 1.20%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
129
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period
2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05
--------------- --------------- ------------------ -----------------
Strategic Portfolios: Aggressive
Growth Portfolio .......................... Class A Shares $ 1,000.00 $ 1,121.80 $ 3.05 0.58%
Class B Shares 1,000.00 1,114.30 6.97 1.33%
Class I Shares 1,000.00 1,121.90 2.79 0.53%
Strategic Portfolios: Growth Portfolio ..... Class A Shares 1,000.00 1,095.50 2.81 0.54%
Class B Shares 1,000.00 1,087.40 6.68 1.29%
Class I Shares 1,000.00 1,095.50 2.55 0.49%
Strategic Portfolios: Growth &
Income Portfolio .......................... Class A Shares 1,000.00 1,077.80 3.04 0.59%
Class B Shares 1,000.00 1,071.50 6.88 1.34%
Class I Shares 1,000.00 1,077.90 2.78 0.54%
Strategic Portfolios: Moderate Growth &
Income Portfolio .......................... Class A Shares 1,000.00 1,067.30 2.82 0.55%
Class B Shares 1,000.00 1,060.00 6.64 1.30%
Class I Shares 1,000.00 1,067.70 2.56 0.50%
Government Income Fund ..................... Class A Shares 1,000.00 1,013.80 5.04 1.01%
Class B Shares 1,000.00 1,006.30 8.76 1.76%
Class I Shares 1,000.00 1,017.40 4.30 0.86%
Limited Term Bond Fund ..................... Class A Shares 1,000.00 1,005.80 5.07 1.02%
Class B Shares 1,000.00 998.30 8.77 1.77%
Class I Shares 1,000.00 1,007.30 4.33 0.87%
High Quality Bond Fund ..................... Class A Shares 1,000.00 1,015.50 5.05 1.01%
Class B Shares 1,000.00 1,009.90 8.77 1.76%
Class I Shares 1,000.00 1,018.90 4.30 0.86%
High Quality Municipal Bond Fund ........... Class A Shares 1,000.00 997.90 4.51 0.91%
Class B Shares 1,000.00 990.50 8.19 1.66%
Class I Shares 1,000.00 1,001.40 3.77 0.76%
Florida Tax-Exempt Fund .................... Class A Shares 1,000.00 996.50 4.31 0.87%
Class B Shares 1,000.00 989.40 7.94 1.61%
Class I Shares 1,000.00 998.40 3.52 0.71%
Tennessee Tax-Exempt Fund .................. Class A Shares 1,000.00 999.70 5.01 1.01%
Class B Shares 1,000.00 992.30 8.69 1.76%
Class I Shares 1,000.00 1,001.20 4.27 0.86%
Prime Money Market Fund .................... Class A Shares 1,000.00 1,021.20 4.11 0.82%
Class B Shares 1,000.00 1,019.70 4.86 0.97%
Class I Shares 1,000.00 1,022.80 3.36 0.67%
Treasury Reserve Money Market Fund ......... Class A Shares 1,000.00 1,021.40 3.51 0.70%
Class I Shares 1,000.00 1,021.90 3.26 0.65%
Tax-Exempt Money Market Fund ............... Class A Shares 1,000.00 1,016.30 3.05 0.61%
Class I Shares 1,000.00 1,016.30 3.05 0.61%
Institutional Prime Obligations
Money Market Fund ......................... Class 1 Shares 1,000.00 1,026.90 1.36 0.27%
Class 2 Shares 1,000.00 1,024.30 2.61 0.52%
Class 3 Shares 1,000.00 1,021.70 3.86 0.77%
* 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.
130
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on each AmSouth Funds' actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the table
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period
2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05
--------------- --------------- ------------------ -----------------
Value Fund ......................... Class A Shares $ 1,000.00 $ 1,018.25 $ 6.61 1.32%
Class B Shares 1,000.00 1,014.53 10.34 2.07%
Class I Shares 1,000.00 1,018.99 5.86 1.17%
Select Equity Fund ................. Class A Shares 1,000.00 1,018.25 6.61 1.32%
Class B Shares 1,000.00 1,014.53 10.34 2.07%
Class I Shares 1,000.00 1,018.99 5.86 1.17%
Enhanced Market Fund ............... Class A Shares 1,000.00 1,020.58 4.26 0.85%
Class B Shares 1,000.00 1,016.86 8.00 1.60%
Class I Shares 1,000.00 1,021.32 3.51 0.70%
Large Cap Fund ..................... Class A Shares 1,000.00 1,018.40 6.46 1.29%
Class B Shares 1,000.00 1,014.68 10.19 2.04%
Class I Shares 1,000.00 1,019.14 5.71 1.14%
Capital Growth Fund ................ Class A Shares 1,000.00 1,018.30 6.56 1.31%
Class B Shares 1,000.00 1,014.58 10.29 2.06%
Class I Shares 1,000.00 1,019.04 5.81 1.16%
Mid Cap Fund ....................... Class A Shares 1,000.00 1,019.29 5.56 1.11%
Class B Shares 1,000.00 1,015.57 9.30 1.86%
Class I Shares 1,000.00 1,020.03 4.81 0.96%
Small Cap Fund ..................... Class A Shares 1,000.00 1,018.35 6.51 1.30%
Class B Shares 1,000.00 1,014.63 10.24 2.05%
Class I Shares 1,000.00 1,019.09 5.76 1.15%
International Equity Fund .......... Class A Shares 1,000.00 1,017.80 7.05 1.41%
Class B Shares 1,000.00 1,014.08 10.79 2.16%
Class I Shares 1,000.00 1,018.55 6.31 1.26%
Balanced Fund ...................... Class A Shares 1,000.00 1,018.10 6.76 1.35%
Class B Shares 1,000.00 1,014.38 10.49 2.10%
Class I Shares 1,000.00 1,018.84 6.01 1.20%
Strategic Portfolios: Aggressive
Growth Portfolio .................. Class A Shares 1,000.00 1,021.92 2.91 0.58%
Class B Shares 1,000.00 1,018.20 6.66 1.33%
Class I Shares 1,000.00 1,022.17 2.66 0.53%
* 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.
131
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period
2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05
--------------- --------------- ------------------ -----------------
Strategic Portfolios: Growth Portfolio ..... Class A Shares $ 1,000.00 $ 1,022.12 $ 2.71 0.54%
Class B Shares 1,000.00 1,018.40 6.46 1.29%
Class I Shares 1,000.00 1,022.36 2.46 0.49%
Strategic Portfolios: Growth &
Income Portfolio .......................... Class A Shares 1,000.00 1,021.87 2.96 0.59%
Class B Shares 1,000.00 1,018.15 6.71 1.34%
Class I Shares 1,000.00 1,022.12 2.71 0.54%
Strategic Portfolios: Moderate Growth ...... Class A Shares 1,000.00 1,022.07 2.76 0.55%
Class B Shares 1,000.00 1,018.35 6.51 1.30%
Class I Shares 1,000.00 1,022.32 2.51 0.50%
Government Income Fund ..................... Class A Shares 1,000.00 1,019.79 5.06 1.01%
Class B Shares 1,000.00 1,016.07 8.80 1.76%
Class I Shares 1,000.00 1,020.53 4.31 0.86%
Limited Term Bond Fund ..................... Class A Shares 1,000.00 1,019.74 5.11 1.02%
Class B Shares 1,000.00 1,016.02 8.85 1.77%
Class I Shares 1,000.00 1,020.48 4.36 0.87%
High Quality Bond Fund ..................... Class A Shares 1,000.00 1,019.79 5.06 1.01%
Class B Shares 1,000.00 1,016.07 8.80 1.76%
Class I Shares 1,000.00 1,020.53 4.31 0.86%
High Quality Municipal Bond Fund ........... Class A Shares 1,000.00 1,020.28 4.56 0.91%
Class B Shares 1,000.00 1,016.56 8.30 1.66%
Class I Shares 1,000.00 1,021.03 3.81 0.76%
Florida Tax-Exempt Fund .................... Class A Shares 1,000.00 1,020.48 4.36 0.87%
Class B Shares 1,000.00 1,016.81 8.05 1.61%
Class I Shares 1,000.00 1,021.27 3.56 0.71%
Tennessee Tax-Exempt Fund .................. Class A Shares 1,000.00 1,019.79 5.06 1.01%
Class B Shares 1,000.00 1,016.07 8.80 1.76%
Class I Shares 1,000.00 1,020.53 4.31 0.86%
Prime Money Market Fund .................... Class A Shares 1,000.00 1,020.73 4.11 0.82%
Class B Shares 1,000.00 1,019.98 4.86 0.97%
Class I Shares 1,000.00 1,021.47 3.36 0.67%
Treasury Reserve Money Market Fund ......... Class A Shares 1,000.00 1,021.32 3.51 0.70%
Class I Shares 1,000.00 1,021.57 3.26 0.65%
Tax-Exempt Money Market Fund ............... Class A Shares 1,000.00 1,021.77 3.06 0.61%
Class I Shares 1,000.00 1,021.77 3.06 0.61%
Institutional Prime Obligations
Money Market Fund ......................... Class 1 Shares 1,000.00 1,023.46 1.35 0.27%
Class 2 Shares 1,000.00 1,022.22 2.61 0.52%
Class 3 Shares 1,000.00 1,020.98 3.86 0.77%
* 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.
132
Eligible Distributions: (Unaudited)
The AmSouth Fund designate the following eligible distributions for the
dividends received deductions for corporations for the year ended July 31,
2005:
Percentage
-----------
Value Fund ............................................................ 100.00%
Select Equity Fund .................................................... 100.00%
Large Cap Fund ........................................................ 100.00%
Mid Cap Fund .......................................................... 100.00%
Capital Growth ........................................................ 100.00%
Enhanced Market Fund .................................................. 65.13%
Balanced Fund ......................................................... 53.85%
Strategic Portfolios: Growth Portfolio ................................ 55.58%
Strategic Portfolios: Growth and Income Portfolio ..................... 24.18%
Strategic Portfolios: Aggressive Growth and Income Portfolio .......... 100.00%
Strategic Portfolios: Moderate Growth and Income Portfolio ............ 16.50%
Qualified Dividends Paid (Unaudited)
For the fiscal year ended July 31, 2005 the following dividends paid by the
Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs
and Growth Tax Relief Reconciliation Act of 2003
The Funds intend to designate the maximum amount allowable as taxed at a
maximum rate of 15%.
Complete information will be reported in conjunction with your 2005 Form
1099-DIV. (amounts in thousands):
Dividends
Paid
----------
Value Fund ......................................................... $ 4,782
Select Equity Fund ................................................. 860
Large Cap Fund ..................................................... 1119
Mid Cap Fund ....................................................... 770
Capital Growth ..................................................... 665
International Fund ................................................. 5,555
Enhanced Market Fund ............................................... 1796
Balanced Fund ...................................................... 1918
Strategic Portfolios: Growth Portfolio ............................. 289
Strategic Portfolios: Growth and Income Portfolio .................. 436
Strategic Portfolios: Aggressive Growth and Income Portfolio ....... 5
Strategic Portfolios: Moderate Growth and Income Portfolio ......... 159
Foreign Income Tax Credit (Unaudited)
The International Equity Fund intends to elect to pass through to shareholders
the income tax credit for taxes paid to foreign countries. Foreign source
income and foreign tax expense per outstanding share on July 31, 2005 are as
follows:
Foreign Foreign
Source Tax
Income Expense
--------- --------
International Equity Fund ......... 0.33 0.04
The pass-through of the foreign tax credit will only affect those persons who
are shareholders on the dividend record date in December 2005. These
shareholders will receive more detailed information along with their 2005 Form
1099-DIV.
133
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited)
Position
Held with Term of Office and
AmSouth Length of Time Number of Funds
Name and Date of Birth Funds Served* Overseen
- ---------------------------- ----------- -------------------- ----------------------
INDEPENDENT TRUSTEES:
Dick D. Briggs, Jr., M.D. .. Trustee Since 1992 Trustee of AmSouth
Date of Birth: 1/28/1934 Funds (consisting of
23 portfolios).
Wendell D. Cleaver ......... Trustee Since 1992 Trustee of AmSouth
Date of Birth: 9/23/1934 Funds (consisting of
23 portfolios).
James H. Woodward, Jr. ..... Trustee Since 1987 Trustee of AmSouth
Date of Birth: 11/24/1939 Funds (consisting of
23 portfolios);
Trustee of Variable
Insurance Funds
(consisting of 15
portfolios, 7 of
which are advised
by the Advisor).
Edward P. Farley ........... Trustee Since 2001 Trustee of AmSouth
Date of Birth: 9/19/1939 Funds (consisting of
23 funds).
Samuel W. Jackson .......... Trustee Since 2003 Trustee of AmSouth
Date of Birth: 12/1/1951 Funds (consisting of
23 portfolios).
Robert J. McMullan ......... Trustee Since 2003 Trustee of AmSouth
Date of Birth: 3/31/1954 Funds (consisting of
23 portfolios).
Other
Directorships Principal Occupation(s) During
Name and Date of Birth Held the Past Five Years
- ---------------------------- --------------- -------------------------------------------
INDEPENDENT TRUSTEES:
Dick D. Briggs, Jr., M.D. .. N/A From March 1997 to present,
Date of Birth: 1/28/1934 Chief Medical Officer, Best DoctorsTM
Worldwide Healthcare Services; from
September 1967 to present, Emeritus
Professor and Eminent Scholar Chair,
Univ. of Alabama at Birmingham: from
October 1971 to present, Physician,
University of AlabamaHealth
Services Foundation.
Wendell D. Cleaver ......... N/A From September 3, 1993 to present,
Date of Birth: 9/23/1934 retired; from December 1988 to August
1993, Executive Vice President, Chief
Operating Officer and Director, Mobile
Gas Service Corporation.
James H. Woodward, Jr. ..... N/A From 1992 to 2002, Trustee, J.A. Jones,
Date of Birth: 11/24/1939 Inc., Construction Company; from
July 1989 to present, Chancellor, The
University of North Carolina at Charlotte.
Edward P. Farley ........... N/A Retired, 1999; Executive Vice President,
Date of Birth: 9/19/1939 Old Kent Bank from January 1981-March
1999; Director, Kent Funds, an open-end
investment management company, for
which BISYS Fund Services L.P. serves
as distributor, from March 1999 until
December 2001.
Samuel W. Jackson .......... N/A From 1997 to present, Principal, Jackson
Date of Birth: 12/1/1951 Fowlkes & Co., Inc.;
Robert J. McMullan ......... N/A From 1998 to present, Chief Financial
Date of Birth: 3/31/1954 Officer, GlobeSpan Virata, Inc.' from
1989 through 1998, Executive Vice
President & Chief Financial Officer,
The BISYS Group, Inc.
134
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Position
Held with Term of Office and
AmSouth Length of Time Number of Funds
Name and Date of Birth Funds Served* Overseen
- ---------------------------- ----------- -------------------- ----------------------
INTERESTED TRUSTEES:
Geoffrey von Kuhn .......... Trustee Since 2002 Trustee of AmSouth
Date of Birth: 10/26/1951 Funds (consisting of
23 portfolios).
Other
Directorships Principal Occupation(s) During
Name and Date of Birth Held the Past Five Years
- ---------------------------- --------------- ----------------------------------------
INTERESTED TRUSTEES:
Geoffrey von Kuhn .......... N/A From April 2001 to present, Senior
Date of Birth: 10/26/1951 Executive Vice President, AmSouth
Bancorporation and AmSouth Bank, Head
Wealth Management Group; April 2000
to April 2001, Head, U.S. Private Bank,
Citigroup: February 1998 to April 2000,
Senior Managing Director and Vice
Chairman, Banc One Capital Markets.
- -------
* There is no defined term of office for Trustees of AmSouth Funds.
The address for each Trustee is 3435 Stelzer Road, Columbus, Ohio 43219.
Mr. von Kuhn is considered to be an interested person (as defined in the
1940 Act) of AmSouth Funds, on the basis of his employment by AmSouth Bank, the
Advisor's parent company.
135
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Executive Officers
Position
Held with Term of Office and
AmSouth Length of Time
Name and Date of Birth Funds Served*
- --------------------------- ---------------- --------------------
Michael C. Daniel ......... President Since 2005
Date of Birth: 9/23/1957
Walter B. Grimm ........... Vice President Since 1994
Date of Birth: 6/30/1945
Trent Statczar ............ Treasurer Since 2004
Date of Birth: 8/31/1971
Rodney L. Ruehle .......... Secretary Since 1999
Date of Birth: 4/26/1968
Alaina V. Metz ............ Assistant Since 1995
Date of Birth: 4/7/1967 Secretary
Other
Number of Funds Directorships Principal Occupation(s) During
Name and Date of Birth Overseen Held the Past Five Years
- --------------------------- ------------------------ --------------- -------------------------------------------
Michael C. Daniel ......... President of AmSouth N/A From September 2001 to present, Chief
Date of Birth: 9/23/1957 Funds (consisting of Operating Officer for Wealth
23 portfolios). Management at AmSouth Bank; from
2001 to 2001, Senior Vice President at
Bank One.
Walter B. Grimm ........... Vice President of N/A From June 1992 to present, employee
Date of Birth: 6/30/1945 AmSouth Funds of BISYS Fund Services Ohio, Inc.
(consisting of
23 portfolios).
Trent Statczar ............ Treasurer of N/A From June 1993 to present, employee
Date of Birth: 8/31/1971 AmSouth Funds of BISYS Fund Services Ohio, Inc.
(consisting of
23 portfolios).
Rodney L. Ruehle .......... Secretary of N/A From August 1995 to present, Director
Date of Birth: 4/26/1968 AmSouth Funds Administration Services, BISYS Fund
(consisting of Services, Inc.; From 1999 to present,
23 portfolios). Vice President and Secretary, Fifth
Third Funds, an open-end management
investment company for which BISYS
Fund Services, L.P. serves as distributor.
Alaina V. Metz ............ Assistant Secretary of N/A From June 1995 to present, Vice
Date of Birth: 4/7/1967 AmSouth Funds President, Administrative and Regulatory
(consisting of 23 Services, BISYS Fund Services
portfolios). Assistant Ohio, Inc.
Secretary of Variable
Insurance Funds
(consisting of 15
portfolios, 7 of
which are advised
by the Advisor.
- -------
* There is no defined term of office for officers of the Trust.
The officers of the Trust are interested persons (as defined in the 1940
Act) and, with the exception of the Chief Compliance Officer, receive no
compensation directly from the Trust for performing the duties of their offices.
The Statement of Additional Information ("SAI") includes additional
information about the Trustees and Officers of the Trust. To obtain a copy of
the SAI, without charge, call (800) 451-8382.
A description of the policies that the Funds use to determine how to vote
proxies relating to portfolio securities and information regarding how the Fund
voted proxies relating to portfolio securities during the most recent 12-month
period ended July 31 is available (i) without charge, upon request, by calling
(800) 451-8379/8382 or on the Fund's website, http://www.amsouthfunds.com; and
(ii) on the Securities and Exchange Commission's website at http://www.sec.gov
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.
136
Compensation of Trustees and Officers of AmSouth Funds (the "Trust")(Unaudited)
The officers of the Trust receive no compensation directly from the Trust
for performing the duties of their offices. BISYS receives fees from the Trust
for acting as Administrator and BISYS Fund Services, Inc., receives fees from
the Trust for acting as Transfer Agent and fund accountant. Messrs. Grimm,
Statczar, and Leslie and Ms. Metz are employees of BISYS Fund Services Limited
Partnerships.
COMPENSATION TABLE (1)
Pension or
Retirement Estimated Total
Aggregate Benefits Annual Compensation
Compensation from Accrued as Part Benefits from AmSouth
AmSouth Fund of Fund upon Mutual Funds
Name Expenses Expenses Retirement Paid to Trustee
- ----------------------------------- ------------------- ----------------- ------------ ----------------
Geoffrey A. von Kuhn .............. None None None None
James H. Woodward, Jr. ............ $77,550 None None $77,550
Wendell D. Cleaver ................ $54,000 None None $54,000
Dick D. Briggs, Jr., M.D. ......... $55,250 None None $55,250
Edward P. Farley .................. $58,500 None None $58,500
Samuel W. Jackson, Jr. ............ $52,750 None None $52,750
Robert J. McMullan ................ $54,000 None None $54,000
- -------
(1) Figures are for the Trust's twelve-month period ended July31, 2005.
137
[GRAPHIC] AMSOUTH FUNDS(R)
ANNUAL REPORT
JULY 31, 2005
Investment Advisor
AmSouth Asset Management, Inc.
1901 6th Avenue North
Suite 620
Birmingham AL 35203
Investment Subadvisors
Oakbrook Investments, LLC
701 Warrenville Road, Suite 335
Lisle IL 60532
o Enhanced Market Fund
o Mid Cap Fund
o Select Equity Fund
Sawgrass Asset Management, LLC
1579 The Greens Way, Suite 20
Jacksonville, FL 32250
o Small Cap Fund
Dimensional Fund Advisors, Inc.
1299 Ocean Avenue
Santa Monica CA 90401
o International Equity Fund
Distributor
BISYS Fund Services
3435 Stelzer Road, Suite 1000
Columbus OH 43219
Legal Counsel
Kirkpatrick & Lockhart, LLP
1800 Massachusetts Avenue, N.W.
Washington DC 20036
Transfer Agent
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road, Suite 1000
Columbus OH 43219
Auditors
Ernst & Young, LLP
1100 Huntington Center
41 South High Street
Columbus OH 43215
9/05
ASO-AR
Item 2. Code of Ethics.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
The board of trustees of the registrant adopted a code of ethics that
applies to the registrant's principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions. This code of ethics is included as Exhibit 11
(a)(1).
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its code of ethics that
applies to the registrant's principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are
employed by the registrant or a third party, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 11(a)(1), unless the registrant has elected to
satisfy
paragraph (f) of this Item by posting its code of ethics on its website
pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its
code of ethics to any person without charge, upon request, pursuant to
paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
During the period covered by the report, with respect to the registrant's
code of ethics that applies to its principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions; there have been no amendments to, nor any
waivers granted from, a provision that relates to any element of the code
of ethics definition enumerated in paragraph (b) of this Item 2.
Item 3. Audit Committee Financial Expert.
(a) (1) Disclose that the registrant's board of directors has determined
that the registrant either:
(i) Has at least one audit committee financial expert serving on
its audit committee; or
(ii) Does not have an audit committee financial expert serving on
its audit committee.
The registrant's board of trustees has determined that the registrant has two
financial experts serving on its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is "independent."
In order to be considered "independent" for purposes of this Item, a
member of an audit committee may not, other than in his or her
capacity as a member of the audit committee, the board of directors,
or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)).
The audit committee financial experts are Samuel W. Jackson, Jr. and Robert J.
McMullan. Each audit committee financial expert is independent within the
meaning of Form N-CSR.
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an audit
committee financial expert.
Item 4. Principal Accountant Fees and Services.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for
each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
Audit Fees.
For the fiscal years ended July 31, 2005 and July 31, 2004, Audit Fees for the
Trust totaled approximately $285,700 and $207,400, respectively, including fees
associated with the annual audit and filings of the Trust's Form N-1A.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees.
For the fiscal years ended July 31, 2005 and July 31, 2004, Audit-Related Fees
for the Trust totaled approximately $50,000 and $0, respectively. These fees
represent charges related to the review of N-14 filings.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each
of the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees.
For the fiscal years ended July 31, 2005 and July 31, 2004, Tax Fees for the
Trust including tax compliance, tax advice and tax planning, totaled
approximately $42,000 and 36,600 respectively. Both amounts represent fees
related to filing the Funds year end tax returns.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed
in each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
All Other Fees
For the fiscal years ended July 31, 2005 and July 31, 2004, Other Fees billed to
the Trust totaled approximately $0 and $0, respectively.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X.
Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust's
Audit Committee must pre-approve all audit and non-audit services provided by
the independent accountants relating to the operations or financial reporting of
the funds. Prior to the commencement of any audit or non-audit services to a
fund, the Audit Committee reviews the services to determine whether they are
appropriate and permissible under applicable law.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
None of the services summarized in (a)-(d), above, were approved by the Audit
Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees.
Not applicable.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted with
or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the last
two fiscal years of the registrant.
For the fiscal years ended July 31, 2005 and July 31, 2004, Non-Audit Fees
billed to the Trust for services provided to the Trust and any of the Trust's
investment advisers and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the Trust
for each of the last two fiscal years of the Trust, totaled approximately
$134,300 and $518,600 respectively.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
The Audit Committee has considered that the provision of non-audit services that
were rendered to the registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under
the Exchange Act (17 CFR 240.10A-3), state whether or not the
registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Exchange Act
(15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee,
however designated, identify each committee member. If the entire
board of directors is acting as the registrant's audit committee as
specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C.
78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under
the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the
listing standards for all audit committees.
Not applicable.
Item 6. Schedule of Investments.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in ss. 210.12-12 of Regulation S-X,
unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
The registrant's complete schedule of investments is included as part of the
report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
A closed-end management investment company that is filing an annual report
on this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
Not applicable.
Item 11. Controls and Procedures.
(a) Disclose the conclusions of the registrant's principal executive and
principal financial officers, or persons performing similar functions, regarding
the effectiveness of the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date
within 90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of this
report, that these disclosure controls and procedures are adequately designed
and are operating effectively to ensure that information required to be
disclosed by the registrant on Form N-CSR is: (i) accumulated and communicated
to the investment company's management, including its certifying officers, to
allow timely decisions regarding required disclosure; and (ii) recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the second fiscal quarter of the period covered by this report
that has materially affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that have materially affected or are reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(a) File the exhibits listed below as part of this Form. Letter or number
the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
The code of ethics that is the subject of the disclosure required by Item 2 is
attached hereto.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)).
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons.
Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange
Act, provide the certifications required by rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference.
Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AmSouth Funds
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By (Signature and Title)* /s/ Trent Statczar, Treasurer
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Date 10-7-05
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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/ Mike Daniels , President
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Date 10-7-05
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By (Signature and Title)* /s/ Trent Statczar, Treasurer
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Date 10-7-05
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* Print the name and title of each signing officer under his or her signature.