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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 Mutual Funds
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (614) 470-8000
-----------------------------
Date of fiscal year end: 7/31/03
--------------------------------
Date of reporting period: 7/31/03
-------------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. 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, 2003
[LOGO] AMSOUTH FUNDS(R)
www.amsouthfunds.com
TABLE OF CONTENTS
Glossary of Terms................................................ 2
Management Discussion of Performance
Message from the Chairman and Investment Advisor............. 5
Fund Summary
Value Fund................................................... 6
Select Equity Fund........................................... 8
Enhanced Market Fund......................................... 10
Large Cap Fund............................................... 12
Capital Growth Fund.......................................... 14
Mid Cap Fund................................................. 16
Small Cap Fund............................................... 18
International Equity Fund.................................... 20
Balanced Fund................................................ 22
Strategic Portfolios......................................... 24
Government Income Fund....................................... 30
Limited Term Bond Fund....................................... 32
Bond Fund.................................................... 34
Municipal Bond Fund.......................................... 36
Florida Tax-Exempt Fund...................................... 38
Tennessee Tax-Exempt Fund.................................... 40
Money Market Funds........................................... 42
Schedule of Portfolio Investments
Value Fund................................................... 43
Select Equity Fund........................................... 44
Enhanced Market Fund......................................... 45
Large Cap Fund............................................... 49
Capital Growth Fund.......................................... 51
Mid Cap Fund................................................. 52
Small Cap Fund............................................... 56
International Equity Fund.................................... 58
Balanced Fund................................................ 63
Strategic Portfolios: Aggressive Growth Portfolio............ 65
Strategic Portfolios: Growth Portfolio....................... 66
Strategic Portfolios: Growth and Income Portfolio............ 66
Strategic Portfolios: Moderate Growth and Income Portfolio... 67
Government Income Fund....................................... 67
Limited Term Bond Fund....................................... 68
Bond Fund.................................................... 70
Municipal Bond Fund.......................................... 73
Florida Tax-Exempt Fund...................................... 78
Tennessee Tax-Exempt Fund.................................... 79
Prime Money Market Fund...................................... 81
U.S. Treasury Money Market Fund.............................. 82
Treasury Reserve Money Market Fund........................... 82
Tax-Exempt Money Market Fund................................. 83
Institutional Prime Obligations Money Market Fund............ 85
Statements of Assets and Liabilities............................. 88
Statements of Operations......................................... 92
Statements of Changes in Net Assets.............................. 96
Notes to Financial Statements.................................... 100
Financial Highlights............................................. 118
Report of Independent Auditors................................... 136
1
GLOSSARY OF TERMS
Lehman Brothers Government/Credit Bond Index is comprised of all bonds that are
investment-grade rated Baa or higher by Moody's or BBB or higher by S&P, if
unrated by Moody's. Issues must have at least one year to maturity. Total
return comprises price appreciation/depreciation and income as a percentage of
the original investment.
Lehman Brothers Mortgage Index is comprised of all fixed securities mortgage
pools by GNMA, FNMA and the FHLMC, including GNMA Graduated Payment Mortgages.
Lipper Balanced Funds Average is comprised of mutual funds whose primary
objective is to conserve principal by maintaining at all times a balanced
portfolio of both stocks and bonds. Typically, the stock/bond ratio range
around 60%/40%.
Lipper Corporate Debt Funds A Rated Average is comprised of the mutual funds
that invest at least 65% of their assets in corporate debt issues rated "A" or
better or government issues.
Lipper Multi-Cap Core 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 capitalization's (on a three-year weighted
basis) above 300% of the dollar-weighted median market capitalization of the
S&P Mid-Cap 400 Index. Multi-Cap Core funds have wide latitude in the companies
in which they invest. These funds will normally have an average 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 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 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.
Lipper General Municipal Bond Average is comprised of mutual funds that invest
at least 65% of their assets in municipal debt issues in the top four credit
ratings.
Lipper Short Intermediate Investment Grade Debt Funds Average is comprised of
mutual funds that invest at least 65% of their assets in investment grade debt
issues (rated in the top four grades) with dollar-weighted average maturities
of one to five years.
Lipper Large-Cap Core Funds Average is comprised of mutual funds that 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 core funds have more latitude in the companies in which
they invest. These funds typically have an average P/E and P/B ratio, and
three-year sales-per-share growth value, compared to that of the S&P 500 Stock
Index.
Lipper Large-Cap Growth 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 growth funds
typically have an above-average P/E and P/B ratio, and three-year
sales-per-share growth value, compared to that of the S&P 500 Stock Index.
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 Mid-Cap Growth Funds Average is comprised of mutual funds that, by
portfolio practice, invest at least 75% of their equity assets in companies
with market capitalization's (on a three-year weighted basis) of less than 300%
of the dollar-weighted median market capitalization of the middle 1,000
securities of the S&P SuperComposite 1500 Index. Mid-cap growth funds typically
have an above-average P/E and P/B ratio, and three-year sales-per-share growth
value, compared to that of the S&P MidCap 400 Index.
Lipper Small-Cap Growth Funds Average is comprised of mutual funds that, by
portfolio practice, invest at least 75% of their equity assets in companies
with market capitalization's (on a three-year weighted basis) less than 250% of
the dollar-weighted median of the smallest 500 of the middle 1,000 securities
of the S&P SuperComposite 1500 Index. Small-cap growth funds typically have an
above-average P/E and P/B ratio, and three-year sales-per-share growth value,
compared to that of the S&P SmallCap 600 Index.
2
GLOSSARY OF TERMS
Lipper Other States Intermediate Municipal Debt Funds Average is comprised of
mutual funds that invest in municipal debt issues with dollar-weighted average
maturities of five to ten years and are exempt from taxation on a specified
city or state basis.
Lipper Florida Municipal Debt Funds Average is comprised of mutual funds that
invest at least 65% of their assets in municipal debt issues that are exempt
from taxation in Florida, with dollar-weighted average maturities of five to
ten years.
Lipper U.S. Mortgage Funds Average is comprised of mutual funds that invest at
least 65% of their assets in mortgages/securities issued or guaranteed as to
principal and interest by the U.S. government and certain federal agencies.
Merrill Lynch 1-5-Year Government Bond Index tracks the performance of
government bonds in that maturity range with a rating of at least Baa.
Merrill Lynch 1-12-Year Municipal Bond Index tracks the performance of
municipal bonds with intermediate maturities of a least one year, but no more
than 12 years maturities.
Merrill Lynch 3-7-Year Municipal Bond Index tracks the performance of municipal
bonds with intermediate maturities of a least three years, but no more than
seven years.
Merrill Lynch Government/Corporate Master Index consists of issues which
include corporate debt obligations rated BBB or better and publicly issued,
non-convertible domestic debt of the U.S. government or any agency thereof.
These quality parameters are based on composites of ratings assigned by
Standard and Poor's Ratings Group and Moody's Investors Service, Inc. Only
notes and bonds with a minimum maturity of one year are included.
Morgan Stanley Capital International (MSCI), Europe, Australasia and Far East
(EAFE) Index is comprised of a sample of companies representative of the market
structure of 20 European and Pacific Basin countries.
Price-to-Earnings Ratio (P/E) -- A valuation ratio of a company's current share
price to its per-share earnings. A high P/E means high projected earnings in
the future. This ratio gives an investor an idea of how much they are paying
for a particular company's earning power.
Price-to-Book Ratio (P/B) -- The ratio of price-to-book value gives an investor
an idea about the relationship between the stock's price and the company's
underlying value. Other things being equal, people who invest for value prefer
companies with a low ratio of price-to-book value.
Russell 2000(R) Growth Index tracks the performance of domestically traded
common stocks of small- to mid-sized companies with higher price-to-book ratios
and higher forecasted growth values.
Standard & Poor's 1500 SuperComposite Index is a combination of the S&P 500,
S&P MidCap 400, and S&P SmallCap 600 indices, and provides a broad
representation of the entire U.S. market, representing 87% of total U.S. equity
market capitalization.
S&P/Barra Growth and Value Indexes are constructed by dividing the stocks in an
index according to a single attribute: book-to-price ratio. The value index
contains firms with higher book-to-price ratios; conversely, the growth index
has firms with lower book-to-price ratios. Each company in the index is
assigned to either the value or growth index so that the two style indexes "add
up" to the full index. Like the full S&P indexes, the value and growth indexes
are capitalization-weighted, meaning that each stock is weighted in proportion
to its market value.
Standard & Poor's 500 Stock Index is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. stock market as a whole.
Standard & Poor's MidCap 400 Index is an unmanaged index comprised of 400
domestic stocks chosen for market size (median market capitalization of $676
million), liquidity and industry group representation.
3
[THIS PAGE INTENTIONALLY LEFT BLANK]
4
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
DEAR SHAREHOLDERS:
We are pleased to send you this annual report for the 12-month period ended
July 31, 2003. During the early months of the period the run-up to war with
Iraq threw a wet blanket on the economy and the stock market. Economic data
improved in the spring of 2003 and the stock market staged a strong rebound.
Meanwhile, fixed-income investments posted strong gains until mid-June, and
then lost ground.
The Economy Begins to Recover
The economy began the period showing modest growth, spurred by a great deal of
stimulus from the Federal Reserve (the "Fed"). The rate of economic recovery
was hindered by sluggish business spending and hiring, which resulted in part
from a federal government directive requiring the country's largest 1,000
companies to certify their financial records. This directive was part of an
effort to restore investor confidence following a series of accounting
scandals. The mandate forced business leaders to focus on past performance
instead of future spending initiatives. The Fed cut short-term interest rates
by 0.50 percentage points in November in an attempt to stimulate the economy.
The potential of war with Iraq also hampered business spending by creating
geopolitical uncertainty that made it difficult for corporate leaders to
discern the direction of the economy. Rising energy prices also dragged on the
economy during those months. The economy during the fourth quarter of 2002 and
the first quarter of 2003 grew at an annualized rate below 2%. Consumer
spending helped keep economic growth positive, as low mortgage rates allowed
consumers to refinance their home loans and free up extra cash.
The economy showed signs of strength during the second quarter of 2003, growing
at an annualized rate of 2.4%. Business spending increased at an annualized
rate of 6.9%, while consumer spending rose 3.3%. During June, policymakers
became concerned about the possibility of deflation--a difficult economic
environment characterized by falling prices. The Fed in June lowered interest
rates by 0.25 percentage points to help prevent deflation, adding additional
stimulus to the economic recovery.
Stocks Fall, Then Rebound
Stock prices were very volatile during the period. Stronger federal oversight
of corporate accounting procedures encouraged investors in August, and stocks
rose. However, stock strength faded during September, as concerns about the
looming war and the direction of the economy caused investors to sell equities.
Relatively strong corporate profit reports during October and November pushed
stock prices somewhat higher, but war-related fears again caused stocks to
decline.
The stock market began its most recent rally in mid-March, as the beginning of
the war with Iraq lifted the uncertainty that had been hanging over the market.
Stocks surged through June powered by strong earnings reports and investors'
expectations for an economic rebound. Technology and biotechnology stocks led
the market rally, as investors prized shares that would benefit the most from a
stronger economy. The stock market traded in a narrow range during July, as
investors debated the strength of the economic recovery. The Standard & Poor's
500 Stock Index/1/ gained 10.64% during the 12 months ended July 31, 2003.
The Bull Market in Bonds Comes to an End
Bonds benefited from many of the factors that weighed on stocks during much of
the period. For example, the economy's weakness during 2002 and early 2003
helped boost bond prices, as cautious investors chose to keep money in
fixed-income securities instead of stocks. We believe that low inflation--and
the potential for deflation--also caused investors to favor bonds. What's more,
the uncertainty caused by the economic uncertainty led investors to seek the
relative stability of fixed-income investments, and the Fed's two interest-rate
cuts helped push down bond yields. Corporate bonds fared especially well,
largely because they offered significantly higher yields than government issues.
The environment for fixed-income securities changed in mid-June. Yields rose
dramatically during the final seven weeks of the period as the improving
economy increased the risk of an up-tick in the inflation rate. Meanwhile, the
resolution to the war with Iraq removed much of the uncertainty that had driven
investors to seek stability in bonds. Yields on long-term Treasury bonds rose
sharply during the final seven weeks of the period--the biggest seven-week
surge in yields since March 1987. Yields of short-term bonds did not rise as
much as long-term yields, due to investors' belief that the Fed would act to
keep short-term interest rates low.
Going Forward
We believe that the economy will continue to recover, supported by low
short-term interest rates as well as tax cuts and other economic stimuli.
Business spending should increase as companies expand their inventories to
prepare for a healthier economy, potentially creating a virtuous cycle of
economic growth. Stocks have gained considerable ground since their March lows.
We believe stocks could fall back temporarily between August and
October--traditionally the weakest period of the year for the stock market. We
feel such losses could provide a good buying opportunity for long-term
investors, because a sustained economic recovery could lead to greater
stock-market gains during the coming year. That said, stocks might remain
strong through this fall if economic growth shows signs of accelerating.
Beyond the improving economic fundamentals, the preferential tax treatment for
common stocks that was signed into law on June 6 is providing a catalyst for
renewed interest in the equity market. Investors are not missing the big shift
in relative after-tax returns favoring common stock dividends, and investor
preferences are changing accordingly. Despite the sunset provision which causes
the lower tax rate on dividends to expire at the end of 2008, we anticipate the
popularity of the tax cut to persuade future Congresses to make it permanent,
as well as most of the other provisions of the Bush tax cuts which also have
sunset provisions.
With the high likelihood for the principle of equal taxation for dividends and
capital gains becoming a long-standing feature of the tax code, we expected
numerous companies to review their dividend policies and undertake a move
toward higher dividend payout ratios. In light of this equal tax treatment,
investors could view empire-building odysseys, which waste corporate cash, very
negatively, and paying cash dividends and effectively managing core businesses
may be favorably received.
We believe fixed-income securities could lag stocks during the coming year.
Bonds currently offer very low yields, even after recent yield increases. The
large and growing federal budget deficit could result in a greater supply in
the Treasury market, potentially pushing yields higher. An improving economy
and stock market could also hurt bond returns. Short-term issues should hold up
better than long-term bonds, as we believe the Fed will probably keep
short-term interest rates low to support the economic recovery.
We would like to take this opportunity to remind shareholders of the importance
of diversification. Many investors at the end of the bull market of the late
1990s held too great a stake in technology stocks and other highly cyclical
shares, and many of those investors suffered painful losses during the
following three years. Likewise, many investors who moved large portions of
their portfolios into bonds during recent years have been hurt by bonds' large
declines since mid-June. A well-diversified portfolio that contains various
types of stocks and bonds will better serve shareholders. Such a portfolio
could possibly help smooth out returns while potentially providing the best
opportunity for long-term gains.*
Thank you for your confidence in the AmSouth Funds. We will continue to
maintain a diverse selection of mutual funds with a long-term investment
focus--a combination designed to help you meet your most cherished financial
goals.
Sincerely,
/s/ J. David Huber
J. David Huber
Chairman
AmSouth Funds
/s/ Joseph T. Keating
Joseph T. Keating
Chief Investment Officer
AmSouth Investment Management Company, LLC
August 25, 2003
* Diversification does not guarantee a profit nor protect against a loss.
/1/See Glossary of Terms for additional information.
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.
5
AMSOUTH VALUE FUND
Portfolio Manager [GRAPHIC]
Tin Y. Chan, CFA PORTFOLIO MANAGER'S PERSPECTIVE
Senior Vice President "The AmSouth Value Fund uses a 'value investing' approach.
Rather than pursue hot stocks that are in high demand, we
AmSouth Bank search for solid companies with good fundamentals that are
AmSouth Asset Management, Inc. available at attractive prices. By adhering to this investment
approach through entire market cycles, we seek to achieve
Tin Chan serves as manager of the AmSouth Value above average long-term results with less volatility than the
Fund and as co-manager of the AmSouth Balanced overall market."
Fund. He also is director of value equity
strategies for AmSouth Bank. With more than a
decade of experience in equity investments and
research, he has had portfolio management
responsibilities for retail and insurance-related
mutual funds. He holds two undergraduate degrees
from Cornell University and earned an MBA from
the Graduate School of Business at the University
of Chicago.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund gained 8.02% (Class A Shares at NAV). In comparison the Fund's
benchmark, the S&P 500/BARRA Value Index gained 12.50%.
Q. What factors affected the Fund's performance?
A. A general decline in the stock market hurt the Fund's returns during the
first three quarters of the period. Stocks rebounded sharply during the final
quarter, however, helping the Fund post gains for the period. The Fund
benefited from its focus on value stocks, which outperformed growth stocks.
The Fund's returns relative to the benchmark benefited early in the period from
our focus on shares of large firms with strong balance sheets. Such stocks held
up better than other shares as investors sought stability. The Fund's returns
lagged the benchmark during the final quarter of the period, as stocks that are
more speculative led the market rally. This Fund does not invest in those types
of stocks, so did not benefit from their gains.
We changed the Fund's sector allocations in March to position the portfolio for
an economic recovery. In particular, we increased the Fund's weightings in
consumer-discretionary and industrial stocks. We also reduced the Fund's
allocations to health care and utilities stocks. Those moves helped the Fund's
performance during the final quarter of the period.
We also reduced the Fund's weighting in technology stocks in March. We felt
valuations in that sector were too high, and earnings for many technology
companies were not as reliable as we would like to see. However, technology
stocks led the market during the last three months of the period, which hurt
the Fund's relative returns.
6
AMSOUTH VALUE FUND
[CHART]
Value of a $10,000 Investment
AmSouth Value Fund S&P 500/BARRA
(Class A Shares)* Value Index
----------------- -------------
07/31/93 $ 9,448 $10,000
08/31/93 9,806 10,392
09/30/93 9,672 10,388
10/31/93 9,834 10,444
11/30/93 9,773 10,257
12/31/93 10,047 10,431
01/31/94 10,502 10,918
02/28/94 10,252 10,524
03/31/94 9,767 10,091
04/30/94 9,820 10,303
05/31/94 10,050 10,474
06/30/94 9,915 10,184
07/31/94 10,195 10,529
08/31/94 10,508 10,826
09/30/94 10,286 10,445
10/31/94 10,405 10,672
11/30/94 9,957 10,240
12/31/94 10,084 10,366
01/31/95 10,274 10,646
02/28/95 10,713 11,059
03/31/95 11,030 11,364
04/30/95 11,448 11,739
05/31/95 11,767 12,261
06/30/95 11,785 12,354
07/31/95 12,159 12,779
08/31/95 12,183 12,889
09/30/95 12,434 13,337
10/31/95 12,211 13,129
11/30/95 12,696 13,817
12/31/95 12,847 14,200
01/31/96 13,231 14,625
02/29/96 13,397 14,763
03/31/96 13,746 15,108
04/30/96 14,174 15,262
05/31/96 14,332 15,492
06/30/96 14,207 15,417
07/31/96 13,506 14,767
08/31/96 13,968 15,174
09/30/96 14,277 15,824
10/31/96 14,220 16,360
11/30/96 15,056 17,612
12/31/96 14,869 17,323
01/31/97 15,439 18,122
02/28/97 15,950 18,254
03/31/97 15,624 17,629
04/30/97 15,997 18,290
05/31/97 17,180 19,437
06/30/97 17,828 20,180
07/31/97 19,225 21,794
08/31/97 18,555 20,809
09/30/97 19,710 22,029
10/31/97 18,697 21,220
11/30/97 19,306 22,029
12/31/97 19,671 22,518
01/31/98 19,733 22,240
02/28/98 21,149 23,908
03/31/98 22,279 25,119
04/30/98 22,075 25,417
05/31/98 22,007 25,059
06/30/98 22,240 25,249
07/31/98 21,598 24,701
08/31/98 18,708 20,729
09/30/98 19,889 21,989
10/31/98 21,582 23,711
11/30/98 22,621 24,946
12/31/98 23,136 25,822
01/31/99 23,156 26,344
02/28/99 22,648 25,777
03/31/99 23,255 26,558
04/30/99 24,988 28,847
05/31/99 25,055 28,338
06/30/99 25,626 29,426
07/31/99 24,820 28,521
08/31/99 24,015 27,799
09/30/99 22,788 26,711
10/31/99 23,795 28,219
11/30/99 23,566 28,054
12/31/99 24,030 29,108
01/31/00 22,649 28,182
02/29/00 21,109 26,421
03/31/00 23,704 29,176
04/30/00 23,425 28,981
05/31/00 23,820 29,071
06/30/00 22,427 27,923
07/31/00 22,788 28,481
08/31/00 24,398 30,391
09/30/00 24,497 30,384
10/31/00 25,076 30,951
11/30/00 24,193 29,367
12/31/00 25,250 30,878
01/31/01 26,709 32,182
02/28/01 26,190 30,049
03/31/01 25,405 28,863
04/30/01 27,194 30,821
05/31/01 27,992 31,143
06/30/01 27,784 30,135
07/31/01 27,597 29,613
08/31/01 26,807 27,902
09/30/01 24,407 25,251
10/31/01 25,329 25,251
11/30/01 25,847 26,854
12/31/01 26,281 27,263
01/31/02 26,029 26,514
02/28/02 25,377 26,277
03/31/02 27,864 27,624
04/30/02 26,263 26,240
05/31/02 25,119 26,345
06/30/02 22,366 24,683
07/31/02 18,985 22,015
08/31/02 19,357 22,166
09/30/02 16,460 19,633
10/31/02 17,582 21,266
11/30/02 19,544 22,760
12/31/02 18,577 21,577
01/31/03 18,434 20,987
02/28/03 17,347 20,415
03/31/03 17,232 20,389
04/30/03 18,772 22,405
05/31/03 20,231 24,054
06/30/03 20,394 24,230
07/31/03 20,508 24,768
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- ----------------------------------------------------------------------------
Class A Shares* 12/1/88 2.10% -2.14% 7.45%
Class B Shares** 9/3/97/1/ 2.17% -2.01% 7.58%
Class I Shares 9/2/97/1/ 8.21% -0.86% 8.16%
- ----------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 versus a similar investment in the Fund's benchmark. The
performance information presented above assumes the reinvestment of dividends
and capital gains and does not reflect the deduction of taxes that a
shareholder would pay on distributions and redemptions.
The performance of the AmSouth Value Fund is measured against the S&P
500/BARRA Value Index, an unmanaged index generally representative of the
stocks in the S&P 500 with the lowest price-to-book ratios. The index does not
reflect the deduction of fees associated with a mutual fund, such as
investment management fees. The Fund's performance does reflect the deduction
of fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in its underlying securities. 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 9/3/97 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
7
AMSOUTH SELECT EQUITY FUND
PORTFOLIO MANAGERS [GRAPHIC]
OakBrook Investments, LLC (sub-advisor): PORTFOLIO MANAGER'S PERSPECTIVE
Neil Wright, President and Chief Investment Officer "Our goal in managing the AmSouth Select Equity Fund is
Janna Sampson, Director of Portfolio Management to outperform the S&P 500 over a complete market cycle
Peter Jankovskis, Director of Research while experiencing less volatility than the broad stock
market. We look for 20 to 25 leading companies that have
As portfolio managers for the AmSouth Select Equity Fund, a dominant market position, or a well-known brand name,
Neil Wright, Janna Sampson and Peter Jankovskis are three yet whose stock price is undervalued. To make this 'growth
veteran investment professionals who have more than 50 at a reasonable price' strategy work, we use economic
years of combined experience. Neil and Peter hold PhDs in theory to determine whether a company is likely to recover
economics, and Janna holds an MA in economics. They have its dominant position after a dip. We believe our patient,
worked together for the past 11 years. They also serve as long-term approach offers excellent defensive protection,
the portfolio managers for the AmSouth Enhanced Market Fund which can help reduce losses when the market is weak."
and the AmSouth Mid Cap Fund.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period through July 31, 2003?
A. The Fund gained 8.77% (Class A Shares at NAV) during the period. In
comparison, the Fund's benchmark the S&P 500 Stock Index gained 10.64%. The
Lipper Multi-Cap Core Funds Average/1/ returned 11.04%.
Q. What factors affected the Fund's performance during the period?
A. The overall stock market was weak during the first nine-and-a-half months of
the period, but then rebounded sharply. Those trends hurt the Fund's absolute
returns during the period through mid-March, and then helped the Fund's
performance during the rest of the period.
The Fund outperformed its benchmark while the stock market struggled. This Fund
invests in what we call "market-power" stocks: shares of firms with leading
market share in their industries and barriers such as strong brands or patents
that can protect their market-share advantage. Those attributes typically
produce reliable earnings--which often cause market-power stocks to perform
relatively well when the economy is weak and during other uncertain market
environments.
The Fund trailed its benchmark during the spring's stock-market rebound,
because this Fund does not hold the types of speculative shares that led the
market recovery. That said, the Fund's returns relative to the benchmark did
benefit late in the period from our earlier decision to shift some assets into
cyclical stocks that we felt were likely to participate strongly in an economic
recovery. The Fund's relative returns also benefited from our decision to sell
an interest-rate sensitive stock late in the period. Such stocks performed
poorly in the face of investors' expectations of higher interest rates going
forward.
/1/See Glossary of Terms for additional information.
The AmSouth Select Equity Fund is subadvised by OakBrook Investments, LLC,
which is paid a fee for its services.
8
AMSOUTH SELECT EQUITY FUND
[CHART]
Value of a $10,000 Investment
AmSouth Select
Equity Fund S&P 500
(Class A Shares)* Stock Index
---------------- -----------
9/1/1998 $9,452 $10,000
9/30/1998 9,928 10,245
10/31/1998 10,772 11,078
11/30/1998 11,052 11,749
12/31/1998 11,400 12,426
1/31/1999 11,286 12,945
2/28/1999 11,003 12,542
3/31/1999 10,994 13,044
4/30/1999 11,924 13,549
5/31/1999 11,488 13,229
6/30/1999 11,973 13,963
7/31/1999 11,289 13,528
8/31/1999 10,919 13,460
9/30/1999 10,409 13,091
10/31/1999 10,514 13,920
11/30/1999 10,057 14,202
12/31/1999 10,246 15,039
1/31/2000 9,537 14,284
2/29/2000 8,803 14,014
3/31/2000 9,346 15,385
4/30/2000 9,170 14,922
5/31/2000 9,606 14,616
6/30/2000 9,461 14,975
7/31/2000 9,048 14,742
8/31/2000 9,516 15,657
9/30/2000 9,840 14,830
10/31/2000 10,261 14,768
11/30/2000 10,711 13,604
12/31/2000 11,543 13,671
1/31/2001 11,075 14,156
2/28/2001 11,159 12,865
3/31/2001 10,826 12,051
4/30/2001 11,107 12,987
5/31/2001 11,522 13,074
6/30/2001 11,439 12,757
7/31/2001 11,668 12,632
8/31/2001 11,918 11,841
9/30/2001 11,274 10,884
10/31/2001 11,269 11,092
11/30/2001 11,965 11,943
12/31/2001 12,403 12,048
1/31/2002 12,260 11,872
2/28/2002 12,562 11,643
3/31/2002 12,790 12,081
4/30/2002 12,297 11,348
5/31/2002 12,422 11,265
6/30/2002 11,808 10,462
7/31/2002 11,433 9,646
8/31/2002 11,610 9,709
9/30/2002 10,746 8,654
10/31/2002 11,353 9,415
11/30/2002 11,697 9,970
12/31/2002 11,272 9,385
1/31/2003 10,937 9,139
2/28/2003 10,626 9,002
3/31/2003 10,644 9,089
4/30/2003 11,428 9,838
5/31/2003 12,195 10,356
6/30/2003 12,362 10,489
7/31/2003 12,436 10,066
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 July 31, 2003 Inception Date 1 Year Since Inception
- --------------------------------------------------------------------------------
Class A Shares* 9/1/98 2.78% 4.54%
Class B Shares** 9/2/98/1/ 2.98% 4.64%
Class I Shares 12/3/98/1/ 8.96% 5.91%
- --------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
9/1/98 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Select Equity Fund is measured against the S&P
500 Stock Index, an unmanaged index generally representative of the U.S. stock
market as a whole. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management fees. The Fund's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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.
1Performance 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 adjusted to reflect the higher
12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
9
AMSOUTH ENHANCED MARKET FUND
PORTFOLIO MANAGERS [GRAPHIC]
OakBrook Investments, LLC (sub-advisor):
Neil Wright, President and Chief Investment Officer PORTFOLIO MANAGERS' PERSPECTIVE
Janna Sampson, Director of Portfolio Management "Our stock selection strategy for the AmSouth Enhanced
Peter Jankovskis, Director of Research Market Fund is fairly conservative, with Fund returns having a
very close correlation to those of the S&P 500. We try to be
Neil Wright, Janna Sampson and Peter Jankovskis are three 100% invested and do not try to time the market. Through
veteran investment professionals who have more than 50 years of the use of a sophisticated computer model, we attempt to
combined experience. Neil and Peter have PhDs in economics, and identify and invest in 350 to 425 stocks within the S&P 500
Janna holds an MA in economics. They have worked together for that are starting to experience a widening range of investor
the past 11 years. In addition to the Enhanced Market Fund, they expectations. We look to overweight those stocks that we
also serve as portfolio managers of the AmSouth Select Equity believe will outperform the overall market."
Fund and the AmSouth Mid Cap Fund.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12 months ended July 31, 2003?
A. The Fund gained 8.54% (Class A Shares at NAV) during the period. In
comparison, the Fund's benchmark the S&P 500 Stock Index gained 10.64%. The
Lipper Large-Cap Core Funds Average/1/ gained 8.19%.
Q. What factors affected the Fund's returns during the period?
A. This Fund is an enhanced index fund that holds most of the stocks in the S&P
500. We use a computer model to determine which of those stocks analysts expect
to perform well going forward. We then increase the Fund's investments in those
shares, and decrease the Fund's investments in the shares that are expected to
perform poorly. We rebalance the Fund's portfolio once a quarter.
The general market environment naturally had a large impact on absolute Fund
performance during the period. The stock market fell between July 2002 and
mid-March, 2003, resulting in negative returns for the Fund during that time.
Stocks subsequently rebounded sharply, helping the Fund make up ground and
finish the 12-month period in positive territory.
The Fund trailed its benchmark while the overall stock market fell. That
happened largely because our computer model focuses on earnings expectations,
which were overshadowed during much of that period by other factors such as
economic projections and the prospect for war with Iraq.
Early in the period overweight positions in health care and financial services
stocks hurt returns, as did the Fund's overweight stake in industrials and
consumer staples stocks during the first months of 2003. Our overweight
position in information technology stocks during that time helped boost returns.
/1/See Glossary of Terms for additional information.
The AmSouth Enhanced Market Fund is subadvised by Oakbrook Investments, LLC,
which is paid a fee for its services.
10
AMSOUTH ENHANCED MARKET FUND
[CHART]
AmSouth Enhanced
Market Fund S&P 500
(Class A Shares)* Stock Index
--------------- -----------
9/1/1998 $ 9,452 $10,000
9/30/1998 10,048 10,245
10/31/1998 10,841 11,078
11/30/1998 11,535 11,749
12/31/1998 12,130 12,426
1/31/1999 12,624 12,945
2/28/1999 12,195 12,542
3/31/1999 12,746 13,044
4/30/1999 13,222 13,549
5/31/1999 12,901 13,229
6/30/1999 13,624 13,963
7/31/1999 13,226 13,528
8/31/1999 13,233 13,460
9/30/1999 12,840 13,091
10/31/1999 13,588 13,920
11/30/1999 13,884 14,202
12/31/1999 14,684 15,039
1/31/2000 14,025 14,284
2/29/2000 13,747 14,014
3/31/2000 15,070 15,385
4/30/2000 14,674 14,922
5/31/2000 14,368 14,616
6/30/2000 14,635 14,975
7/31/2000 14,477 14,742
8/31/2000 15,397 15,657
9/30/2000 14,546 14,830
10/31/2000 14,530 14,768
11/30/2000 13,405 13,604
12/31/2000 13,474 13,671
1/31/2001 13,927 14,156
2/28/2001 12,615 12,865
3/31/2001 11,799 12,051
4/30/2001 12,766 12,987
5/31/2001 12,796 13,074
6/30/2001 12,504 12,757
7/31/2001 12,363 12,632
8/31/2001 11,566 11,841
9/30/2001 10,578 10,884
10/31/2001 10,850 11,092
11/30/2001 11,731 11,943
12/31/2001 11,779 12,048
1/31/2002 11,677 11,872
2/28/2002 11,423 11,643
3/31/2002 11,848 12,081
4/30/2002 11,061 11,348
5/31/2002 10,961 11,265
6/30/2002 10,174 10,462
7/31/2002 9,383 9,646
8/31/2002 9,409 9,709
9/30/2002 8,328 8,654
10/31/2002 9,062 9,415
11/30/2002 9,591 9,970
12/31/2002 9,014 9,385
1/31/2003 8,750 9,139
2/28/2003 8,613 9,002
3/31/2003 8,673 9,089
4/30/2003 9,395 9,838
5/31/2003 9,898 10,356
6/30/2003 10,007 10,489
7/31/2003 10,185 10,066
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 July 31, 2003 Inception Date 1 Year Since Inception
- ---------------------------------------------------------------------
Class A Shares* 9/1/98 2.61% 0.37%
Class B Shares** 9/2/98/1/ 2.79% 0.37%
Class I Shares 12/11/98/1/ 8.71% 1.69%
- ---------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
9/1/98 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Enhanced Market Fund is measured against the
S&P 500 Stock Index, an unmanaged index generally representative of the U.S.
stock market as a whole. The index does not reflect the deduction of fees
associated with a mutual fund, such as investment management fees. The Fund's
performance does reflect the deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they can invest in its
underlying securities. 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 adjusted
to reflect the higher 12b-1 fees and the contingent deferred sales charge
(CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
11
AMSOUTH LARGE CAP FUND
Portfolio Manager [GRAPHIC]
Ronald E. Lindquist
Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE
AmSouth Bank "The AmSouth Large Cap Fund is managed in a traditional large-cap growth style.
AmSouth Asset Management, Inc. Our goal is to outperform the S&P 500 Stock Index/1/ over multiple market
cycles. We look for industry leaders that have shown the potential to generate
Ron Lindquist has more than 35 years of relatively predictable, above-average 3- to 5-year earnings streams. We
focused investment management typically purchase stocks of large, high-quality companies with superior
experience. A founding member of the earnings per share growth rates and correspondingly appropriate price/earnings
Financial Analysts Society of South ratios. We consider sales when a stock's relative price/earnings ratio is well
Florida, he has a master's degree in in excess of historical, similar-market norms or when a significant and ongoing
management science from Florida earnings stream deterioration is forecast."
International University and a BS in
finance from Florida State University.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund returned 10.45% (Class A Shares at NAV). The Fund's benchmark, the
S&P 500 Stock Index, returned 10.64%.
Q. What factors affected the Fund's performance during the period?
A. The Fund's absolute returns during nearly all of the first nine months of
the period suffered from the general weakness experienced in the broader stock
market. But then stocks rebounded sharply from the middle of March through the
end of the fiscal year, helping the Fund post double-digit gains.
Our long-term strategic decision to hold an overweight stake in shares of
technology companies helped the Fund, as stocks in that economic sector led the
market. The Fund also benefited from its typically large stake in health care
stocks. Our investments in biotechnology shares performed exceptionally well,
more than offsetting weak performance by pharmaceutical stocks in our
portfolio. For the most part, we did not hold shares of firms in the energy,
utilities, telecommunications or basic materials sectors, because companies in
those sectors typically do not exhibit the traditional growth characteristics
we seek. This strategy helped the Fund's relative returns, since those sectors
lagged the index during the period.
Long term, the Fund also tends to underweight financial-services stocks. That
characteristic hurt relative returns during the period, although the Fund's
financial-services holdings as a group performed well relative to our
benchmark. The Fund routinely maintains significant positions in shares of
industrial, consumer-discretionary and consumer-staples firms, which, on
average, did not keep pace with the index.
/1/See Glossary of Terms for additional information.
12
AMSOUTH LARGE CAP FUND
[CHART]
Value of a $10,000 Investment
AmSouth Large
Cap Fund S&P 500
(Class A Shares)* Stock Index
----------------- -----------
07/31/1993 $ 9,446 $10,000
08/31/1993 9,788 10,379
09/30/1993 9,560 10,299
10/31/1993 9,977 10,512
11/30/1993 10,014 10,412
12/31/1993 10,134 10,538
01/31/1994 10,293 10,896
02/28/1994 10,153 10,600
03/31/1994 9,746 10,139
04/30/1994 9,783 10,269
05/31/1994 9,867 10,436
06/30/1994 9,593 10,181
07/31/1994 9,735 10,515
08/31/1994 10,179 10,945
09/30/1994 9,980 10,678
10/31/1994 10,350 10,917
11/30/1994 10,122 10,520
12/31/1994 10,314 10,676
01/31/1995 10,622 10,953
02/28/1995 10,988 11,379
03/31/1995 11,263 11,714
04/30/1995 11,611 12,059
05/31/1995 11,911 12,540
06/30/1995 12,175 12,831
07/31/1995 12,621 13,256
08/31/1995 12,466 13,289
09/30/1995 13,039 13,850
10/31/1995 13,322 13,800
11/30/1995 13,798 14,406
12/31/1995 13,924 14,683
01/31/1996 14,512 15,182
02/29/1996 14,694 15,324
03/31/1996 14,448 15,471
04/30/1996 14,651 15,699
05/31/1996 14,967 16,103
06/30/1996 14,965 16,165
07/31/1996 14,323 15,451
08/31/1996 14,557 15,777
09/30/1996 15,518 16,664
10/31/1996 15,579 17,124
11/30/1996 16,805 18,417
12/31/1996 16,378 18,052
01/31/1997 17,424 19,179
02/28/1997 17,455 19,330
03/31/1997 16,827 18,537
04/30/1997 18,032 19,643
05/31/1997 19,081 20,844
06/30/1997 19,870 21,770
07/31/1997 21,519 23,502
08/31/1997 20,406 22,187
09/30/1997 21,315 23,401
10/31/1997 20,695 22,620
11/30/1997 21,936 23,667
12/31/1997 22,262 24,073
01/31/1998 22,855 24,339
02/28/1998 24,393 26,093
03/31/1998 25,086 27,428
04/30/1998 25,288 27,709
05/31/1998 24,916 27,233
06/30/1998 26,142 28,339
07/31/1998 26,078 28,039
08/31/1998 23,009 23,988
09/30/1998 24,588 25,526
10/31/1998 26,706 27,600
11/30/1998 28,472 29,272
12/31/1998 30,693 30,957
01/31/1999 32,186 32,251
02/28/1999 31,028 31,249
03/31/1999 31,548 32,499
04/30/1999 31,370 33,758
05/31/1999 30,846 32,961
06/30/1999 33,011 34,786
07/31/1999 32,476 33,704
08/31/1999 32,454 33,537
09/30/1999 31,729 32,619
10/31/1999 32,955 34,682
11/30/1999 34,727 35,387
12/31/1999 36,478 37,469
01/31/2000 35,306 35,586
02/29/2000 34,343 34,913
03/31/2000 36,837 38,327
04/30/2000 37,097 37,174
05/31/2000 36,837 36,412
06/30/2000 38,126 37,309
07/31/2000 36,641 36,726
08/31/2000 38,186 39,006
09/30/2000 36,859 36,947
10/31/2000 37,439 36,790
11/30/2000 35,863 33,892
12/31/2000 35,670 34,058
01/31/2001 36,203 35,266
02/28/2001 33,566 32,052
03/31/2001 31,142 30,023
04/30/2001 33,109 32,354
05/31/2001 33,581 32,571
06/30/2001 32,179 31,779
07/31/2001 32,346 31,466
08/31/2001 30,883 29,498
09/30/2001 28,246 27,116
10/31/2001 29,115 27,634
11/30/2001 31,645 29,753
12/31/2001 31,643 30,013
01/31/2002 31,679 29,576
02/28/2002 30,903 29,005
03/31/2002 31,861 30,096
04/30/2002 29,677 28,272
05/31/2002 29,273 28,065
06/30/2002 26,847 26,066
07/31/2002 24,987 24,035
08/31/2002 24,955 24,192
09/30/2002 22,050 21,566
10/31/2002 24,606 23,462
11/30/2002 26,161 24,841
12/31/2002 24,279 23,383
01/31/2003 23,554 22,771
02/28/2003 23,043 22,429
03/31/2003 23,359 22,646
04/30/2003 25,200 24,511
05/31/2003 26,703 25,801
06/30/2003 27,007 26,131
07/31/2003 27,599 26,592
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- ------------------------------------------------------------------------------
Class A Shares* 8/3/92 4.37% 0.00% 10.69%
Class B Shares** 12/15/98/1/ 4.63% 0.07% 10.32%
Class I Shares 12/14/98/1/ 10.65% 1.24% 11.37%
- ------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Large Cap Fund is measured against the S&P 500
Stock Index, an unmanaged index generally representative of the U.S. stock
market as a whole. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management fees. The Fund's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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 8/3/92 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.
/1/Performance for the Class B and Trust Shares, which commenced operations on
12/15/98 and 12/14/98, 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
13
AMSOUTH CAPITAL GROWTH FUND
Portfolio Managers [GRAPHIC]
Charles E. Winger, Sr., CFA
Senior Vice President PORTFOLIO MANAGERS' PERSPECTIVE
"As a growth-oriented fund, the Capital Growth Fund focuses
Robert A. Rinner, CFA on industry leaders with high earnings per share. We
Senior Vice President generally look for annual earnings growth of 15% or higher.
After identifying strong themes, such as technology or health
AmSouth Bank care, we select companies that have financial strength, good
AmSouth Asset Management, Inc. return on equity, reasonable debt-to-equity ratios and strong
revenue growth. We apply sell discipline through price targets
Charles Winger has more than 30 years and downside alerts."
of investment management experience,
including 11 years with First American
National Bank. He has served as a
president of the Nashville Society of
Financial Analysts. He holds his MBA
and a BA in psychology from the
University of Tennessee.
Robert Rinner has nearly 20 years of
experience in equity portfolio
management and analysis. Prior to
joining AmSouth, he was associated with
First American National Bank. He is a
graduate of the University of Iowa,
with a bachelor of science degree in
finance. He earned an MBA from the
University of Oklahoma.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund's total return was 9.92% (Class A Shares at NAV). That compared to
a 10.64% and 8.89% return for the Fund's benchmarks, the S&P 500 Stock Index
and the S&P 500/Barra Growth Index. The Lipper Large-Cap Growth Funds
Average/1/ returned 10.31%.
Q. What factors affected the Fund's performance during the period?
A. The Fund's returns were hurt by weakness in the stock market during the
first nine months of the period, but benefited from stocks' strong rebound
during the three months through July. The Fund's focus on growth stocks hurt
performance, because growth shares lagged value stocks during the period.
Likewise, the Fund's strategy of investing primarily in large-cap stocks
hindered gains, as large shares lagged small caps. Moreover, the market rally
was led by low-quality stocks, rather than the high-quality shares in which
this Fund invests.
The Fund's returns relative to the benchmark held up well despite those
negative factors. One reason: The Fund held a significant stake in mid-cap
stocks, which outperformed the large-cap stocks represented by the S&P 500.
Sector allocation and stock selection also affected the Fund's relative
returns. For example, the Fund held overweight stakes in technology and retail
stocks. Those sectors performed relatively poorly during the first nine months
of the period but then rebounded dramatically--more than compensating for their
earlier losses. The Fund's underweight positions in consumer staples, energy
and utilities stocks also helped relative returns, as those sectors lagged the
benchmark. The Fund's overweight allocation to health-care stocks hurt relative
returns, we feel that sector suffered from worries about the potential for new
regulations in the pharmaceutical industry.
/1/See Glossary of Terms for additional information.
14
AMSOUTH CAPITAL GROWTH FUND
[CHART]
Value of a $10,000 Investment
AmSouth Capital S&P 500
Growth Fund Stock S&P 500/BARRA
(Class A Shares)* Index Growth Index
---------------- ----- -------------
07/31/1993 $ 9,444 $10,000 $10,000
08/31/1993 9,648 10,379 10,365
09/30/1993 9,702 10,299 10,206
10/31/1993 9,593 10,512 10,586
11/30/1993 9,512 10,412 10,578
12/31/1993 9,661 10,538 10,652
01/31/1994 10,041 10,896 10,880
02/28/1994 9,905 10,600 10,685
03/31/1994 9,485 10,139 10,192
04/30/1994 9,417 10,269 10,238
05/31/1994 9,472 10,436 10,405
06/30/1994 9,173 10,181 10,183
07/31/1994 9,404 10,515 10,507
08/31/1994 9,837 10,945 11,069
09/30/1994 9,648 10,678 10,911
10/31/1994 9,756 10,917 11,165
11/30/1994 9,431 10,520 10,799
12/31/1994 9,621 10,676 10,986
01/31/1995 9,878 10,953 11,258
02/28/1995 10,257 11,379 11,697
03/31/1995 10,501 11,714 12,064
04/30/1995 10,488 12,059 12,378
05/31/1995 10,867 12,540 12,821
06/30/1995 11,016 12,831 13,312
07/31/1995 11,572 13,256 13,736
08/31/1995 11,463 13,289 13,692
09/30/1995 11,897 13,850 14,368
10/31/1995 11,816 13,800 14,483
11/30/1995 12,466 14,406 15,005
12/31/1995 12,547 14,683 15,174
01/31/1996 13,035 15,182 15,754
02/29/1996 13,360 15,324 15,897
03/31/1996 13,550 15,471 15,830
04/30/1996 13,916 15,699 16,138
05/31/1996 14,160 16,103 16,732
06/30/1996 14,146 16,165 16,940
07/31/1996 13,279 15,451 16,159
08/31/1996 13,537 15,777 16,398
09/30/1996 14,282 16,664 17,536
10/31/1996 14,892 17,124 17,917
11/30/1996 15,772 18,417 19,255
12/31/1996 15,339 18,052 18,811
01/31/1997 16,165 19,179 20,284
02/28/1997 15,921 19,330 20,454
03/31/1997 15,186 18,537 19,482
04/30/1997 16,149 19,643 21,055
05/31/1997 17,152 20,844 22,301
06/30/1997 17,825 21,770 23,430
07/31/1997 19,359 23,502 25,285
08/31/1997 18,395 22,187 23,604
09/30/1997 19,363 23,401 24,807
10/31/1997 18,942 22,620 24,061
11/30/1997 19,499 23,667 25,367
12/31/1997 20,062 24,073 25,680
01/31/1998 20,171 24,339 26,542
02/28/1998 21,754 26,093 28,387
03/31/1998 22,773 27,428 29,855
04/30/1998 22,695 27,709 30,105
05/31/1998 21,801 27,233 29,501
06/30/1998 22,914 28,339 31,604
07/31/1998 23,118 28,039 31,586
08/31/1998 20,046 23,988 27,476
09/30/1998 21,603 25,526 29,315
10/31/1998 22,780 27,600 31,773
11/30/1998 23,879 29,272 33,925
12/31/1998 26,492 30,957 36,506
01/31/1999 27,835 32,251 38,735
02/28/1999 27,089 31,249 37,215
03/31/1999 27,873 32,499 39,018
04/30/1999 27,686 33,758 38,943
05/31/1999 26,697 32,961 37,807
06/30/1999 28,768 34,786 40,513
07/31/1999 28,246 33,704 39,231
08/31/1999 27,817 33,537 39,776
09/30/1999 27,281 32,619 39,099
10/31/1999 28,537 34,682 41,802
11/30/1999 29,661 35,387 43,591
12/31/1999 32,282 37,469 46,818
01/31/2000 31,114 35,586 43,699
02/29/2000 31,091 34,913 44,616
03/31/2000 34,191 38,327 48,742
04/30/2000 33,315 37,174 46,329
05/31/2000 32,394 36,412 44,440
06/30/2000 33,697 37,309 48,027
07/31/2000 33,630 36,726 45,889
08/31/2000 35,734 39,006 48,546
09/30/2000 35,249 36,947 43,808
10/31/2000 34,995 36,790 42,669
11/30/2000 32,802 33,892 38,133
12/31/2000 32,060 34,058 36,482
01/31/2001 32,084 35,266 37,522
02/28/2001 28,549 32,052 33,113
03/31/2001 25,282 30,023 30,129
04/30/2001 27,940 32,354 32,821
05/31/2001 27,964 32,571 32,899
06/30/2001 27,184 31,779 32,453
07/31/2001 26,477 31,466 32,369
08/31/2001 24,112 29,498 30,195
09/30/2001 21,406 27,116 28,169
10/31/2001 22,503 27,634 29,205
11/30/2001 24,697 29,753 31,791
12/31/2001 25,087 30,013 31,837
01/31/2002 25,112 29,576 31,788
02/28/2002 24,161 29,005 30,850
03/31/2002 25,136 30,096 31,585
04/30/2002 23,649 28,272 29,325
05/31/2002 22,869 28,065 28,757
06/30/2002 21,235 26,066 26,450
07/31/2002 19,407 24,035 25,180
08/31/2002 19,455 24,192 25,338
09/30/2002 17,749 21,566 22,714
10/31/2002 19,455 23,462 24,815
11/30/2002 20,309 24,841 26,019
12/31/2002 18,773 23,383 24,328
01/31/2003 18,383 22,771 23,720
02/28/2003 18,212 22,429 23,649
03/31/2003 18,456 22,646 24,129
04/30/2003 19,846 24,511 25,745
05/31/2003 20,528 25,801 26,583
06/30/2003 20,674 26,131 27,067
07/31/2003 21,333 26,592 27,421
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 4/1/96/1/ 3.92% -2.70% 7.87%
Class B Shares** 2/5/98/2/ 4.13% -2.51% 7.49%
Class I Shares 10/3/97/2/ 10.08% -1.41% 8.52%
- --------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
Performance of the AmSouth Capital Growth Fund is measured against the S&P 500
Stock Index, an unmanaged index generally representative of the U.S. stock
market as a whole and the S&P 500/Barra Growth Index, an unmanaged index which
measure the performance of 500 stocks chosen for their low book-to price
ratios. The indices do not reflect the deduction of fees associated with a
mutual fund, such as investment management fees. The Fund's performance does
reflect the deduction of fees for these value-added services. Investors cannot
invest directly in an index, although they can invest in its underlying
securities. 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 Fund has changed its
standardized benchmark from the S&P 500 Index to the S&P 500/Barra Growth
Index to provide a more appropriate market comparison for the Fund's
performance.
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 commingled
accounts for periods dating back to 7/31/93, and prior to the mutual fund's
commencement of operations, as adjusted 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, the commingled accounts'
performance may have been adversely affected.
/2/Performance for the Class B and Class I Shares, which commenced operations
on 2/5/98 and 10/3/97, 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
15
AMSOUTH MID CAP FUND
Portfolio Managers [GRAPHIC]
OakBrook Investments, LLC (sub-advisor):
Neil Wright, President and Chief Investment Officer PORTFOLIO MANAGERS' PERSPECTIVE
Janna Sampson, Director or Portfolio Management "Our stock selection strategy for the AmSouth Mid Cap Fund
Peter Jankovskis, Director of Research is fairly conservative, with Fund returns having a very close
correlation to those of the S&P Mid Cap 400 Stock Index/1/.
As portfolio managers for the AmSouth Mid Cap Fund, Neil We try to be 100% invested and do not try to time the market.
Wright, Janna Sampson and Peter Jankovskis are three Through the use of a sophisticated computer model, we attempt
veteran investment professionals who have more than 50 to identify and invest in 320 to 380 stocks within the S&P
years of combined experience. Neil and Peter have PhDs in Mid Cap 400 Index that are starting to experience a widening
economics, and Janna holds an MA in economics. They have range of investor expectations. We look to overweight those
worked together for the past 11 years. The team also stocks that we believe will outperform the overall market."
manages the AmSouth Select Equity Fund and the AmSouth
Enhanced Market Fund.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12 months ended July 31, 2003?
A. The Fund delivered a total return of 11.08% (Class A Shares at NAV). In
comparison the Fund's benchmark, the S&P MidCap 400 Index gained 13.85%.
Q. What factors affected Fund performance during that time?
A. This Fund is an enhanced index fund that holds most of the stocks in the S&P
MidCap 400 Index. We use a computer model to estimate the overall market's
expectations for the stocks in the index, and adjust the weighting of
individual shares accordingly once a quarter.
The Fund's absolute returns were hurt by the stock market's weak performance
during the first three-quarters of the period, but benefited from a
stock-market surge that began in mid-March and continued through the end of
July. Mid-cap stocks performed particularly well late in the period, helping
boost Fund returns.
The Fund trailed its benchmark during most of the year. The model that
determines the Fund's stock weightings is based on earnings expectations, and
throughout much of the period stock performance was driven by non-fundamental
factors--for example, prospects for the economy and the potential repercussions
of war with Iraq. The market's focus on non-fundamental factors caused many
sectors that were overweight in the Fund to lag the benchmark.
For example, the computer model's emphasis on earnings expectations led us to
overweight shares of consumer-discretionary and financial-services stocks
during the second quarter of the period. For similar reasons, we overweighted
health care and technology shares during the third quarter. All of those
sectors struggled, and the positions hurt the Fund's returns relative to the
benchmark. The Fund benefited near the end of the period from an overweight
position in technology stocks, but that gain was not sufficient to offset
continued poor results from finance and health care stocks.
/1/See Glossary of Terms for additional information.
The AmSouth Mid Cap Fund is subadvised by OakBrook Investments, LLC, which is
paid a fee for its services.
16
AMSOUTH MID CAP FUND
[CHART]
Value of a $10,000 Investment
AmSouth Mid Cap Fund S&P MidCap
(Class A Shares)* 400 Index
-------------------- -------------
05/04/1999 $ 9,452 $10,000
05/31/1999 9,338 10,043
06/30/1999 10,331 10,581
07/31/1999 10,567 10,356
08/31/1999 10,614 10,001
09/30/1999 10,851 9,693
10/31/1999 11,786 10,186
11/30/1999 13,696 10,721
12/31/1999 16,380 11,358
01/31/2000 16,304 11,038
02/29/2000 19,026 11,811
03/31/2000 18,507 12,799
04/30/2000 16,153 12,352
05/31/2000 14,792 12,198
06/30/2000 16,115 12,377
07/31/2000 15,756 12,573
08/31/2000 17,656 13,977
09/30/2000 16,928 13,881
10/31/2000 15,794 13,410
11/30/2000 13,327 12,398
12/31/2000 13,932 13,347
01/31/2001 13,894 13,644
02/28/2001 12,628 12,865
03/31/2001 11,399 11,909
04/30/2001 12,524 13,222
05/31/2001 12,694 13,530
06/30/2001 12,231 13,476
07/31/2001 11,399 13,275
08/31/2001 10,633 12,841
09/30/2001 9,565 11,243
10/31/2001 9,839 11,741
11/30/2001 10,388 12,614
12/31/2001 10,718 13,266
01/31/2002 10,473 13,197
02/28/2002 9,981 13,213
03/31/2002 10,558 14,158
04/30/2002 10,709 14,092
05/31/2002 10,312 13,854
06/30/2002 9,783 12,840
07/31/2002 8,875 11,596
08/31/2002 8,913 11,655
09/30/2002 8,157 10,716
10/31/2002 8,497 11,180
11/30/2002 8,982 11,827
12/31/2002 8,603 11,341
01/31/2003 8,339 11,010
02/28/2003 8,143 10,748
03/31/2003 8,163 10,838
04/30/2003 8,721 11,625
05/31/2003 9,452 12,589
06/30/2003 9,556 12,748
07/31/2003 9,859 12,748
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 July 31, 2003 Inception Date 1 Year Since Inception
- -----------------------------------------------------------------------
Class A Shares* 5/4/99 4.94% -0.33%
Class B Shares** 5/4/99 5.30% -0.31%
Class I Shares 5/4/99 11.26% 1.06%
- -----------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
5/4/99 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Mid Cap Fund is measured against the S&P MidCap
400 Index an unmanaged index which tracks the performance of 400 domestic
stocks chosen for market size (median market capitalization of $676 million),
liquidity and industry group representation. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
fees. The Fund's performance does reflect the deduction of fees for these
value-added services. Investors cannot invest directly in an index, although
they can invest in its underlying securities. 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
17
AMSOUTH SMALL CAP FUND+
PORTFOLIO MANAGER
[GRAPHIC]
Sawgrass Asset Management, LLC (sub-advisor):
Dean McQuiddy, CFA
Principal and Director of Equity Investments PORTFOLIO MANAGER'S PERSPECTIVE
"For the AmSouth Small Cap Fund, we use a disciplined
Dean McQuiddy serves as portfolio manager for the investment process to identify 60 to 80 fundamentally
AmSouth Small Cap Fund. He has nearly 20 years of attractive small companies that share certain attributes:
experience in investment management and holds a above-market sales and earnings growth, increasing estimates
BS in finance. He created and managed the of future earnings and reasonable valuations. We aim to buy
small-cap growth product at Barnett Capital these companies in the early stages of their growth--before
Advisors for 11 years. their stocks get overvalued in the marketplace."
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund posted a 1.26% return (Class A Shares at NAV). The Fund's
benchmark, the Russell 2000(R) Growth Index gained 27.97%. The Lipper Small Cap
Growth Funds Average/1/ gained 21.83%.
Q. What factors affected the Fund's performance during the period?
A. Small-company stocks fell from the beginning of the period through
mid-March, leading to temporary losses for the Fund. However, small-cap stocks
staged a dramatic recovery during the final three months of the period, helping
the Fund produce positive returns.
The Fund employs a stock-picking system that identifies attractively valued
stocks of companies with good and improving earnings histories. The Fund's
focus on earnings and other business fundamentals helped us find promising
shares of firms in the consumer-discretionary sector, including shares of home
builders, retailers, restaurants and leisure-related companies. Those
investments boosted returns during the period.
The Fund significantly lagged its benchmark during the period largely because
stocks with strong business fundamentals did not lead small caps' surge near
the end of the period. Investors instead favored speculative shares of firms
that lacked established earnings histories. For example, our focus on earnings
steered the Fund away from biotechnology and Internet stocks, because most
companies in those industries had little or no earnings and weak balance
sheets. Those types of stocks led the market rally by a wide margin.
/1/See Glossary of Terms for additional information.
+ Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility
than large company stocks on average.
The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management, LLC,
which is paid a fee for its services.
18
AMSOUTH SMALL CAP FUND
[CHART]
Value of a $10,000 Investment
AmSouth Small
Cap Fund Russell 2000/R/
(Class A Shares)* Growth Index
---------------- ------------
3/3/1998 $ 9,450 $10,000
3/31/1998 9,764 10,419
4/30/1998 9,764 10,483
5/31/1998 9,063 9,722
6/30/1998 9,328 9,821
7/31/1998 8,664 9,001
8/31/1998 6,712 6,923
9/30/1998 7,479 7,625
10/31/1998 7,261 8,023
11/30/1998 7,840 8,645
12/31/1998 8,901 9,427
1/31/1999 8,456 9,852
2/28/1999 7,698 8,950
3/31/1999 7,186 9,269
4/30/1999 7,091 10,088
5/31/1999 7,299 10,104
6/30/1999 8,001 10,636
7/31/1999 7,963 10,307
8/31/1999 7,925 9,922
9/30/1999 8,105 10,113
10/31/1999 8,134 10,372
11/30/1999 8,958 11,469
12/31/1999 10,323 13,490
1/31/2000 10,295 13,364
2/29/2000 12,390 16,474
3/31/2000 12,523 14,742
4/30/2000 12,238 13,254
5/31/2000 11,565 12,093
6/30/2000 12,561 13,655
7/31/2000 11,869 12,485
8/31/2000 12,940 13,798
9/30/2000 12,911 13,113
10/31/2000 12,902 12,048
11/30/2000 11,262 9,861
12/31/2000 12,251 10,464
1/31/2001 11,536 11,311
2/28/2001 11,031 9,760
3/31/2001 10,390 8,873
4/30/2001 11,315 9,959
5/31/2001 11,105 10,190
6/30/2001 10,947 10,468
7/31/2001 10,642 9,575
8/31/2001 9,759 8,977
9/30/2001 8,739 7,529
10/31/2001 8,539 8,253
11/30/2001 8,665 8,942
12/31/2001 8,844 9,499
1/31/2002 9,023 9,161
2/28/2002 8,876 8,568
3/31/2002 9,117 9,312
4/30/2002 9,454 9,111
5/31/2002 8,855 8,578
6/30/2002 8,297 7,851
7/31/2002 7,498 6,644
8/31/2002 7,456 6,641
9/30/2002 7,077 6,161
10/31/2002 7,014 6,473
11/30/2002 6,888 7,115
12/31/2002 6,478 6,624
1/31/2003 6,352 6,444
2/28/2003 6,057 6,272
3/31/2003 6,131 6,366
4/30/2003 6,552 6,969
5/31/2003 7,109 7,754
6/30/2003 7,246 7,904
7/31/2003 7,593 7,904
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 July 31, 2003 Inception Date 1 Year 5 Year Since Inception
- -------------------------------------------------------------------------------
Class A Shares* 3/2/98 -4.24% -3.70% -4.96%
Class B Shares** 3/2/98 -4.56% -3.67% -4.89%
Class I Shares 3/2/98 1.39% -2.40% -3.81%
- -------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
3/2/98 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Small Cap Fund is measured against the Russell
2000(R) Growth Index, an unmanaged index generally representative of
domestically traded common stocks of small to mid-sized companies. The index
does not reflect the deduction of fees associated with a mutual fund, such as
investment management fees. The Fund's performance does reflect the deduction
of fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in its underlying securities. 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
19
AMSOUTH INTERNATIONAL EQUITY FUND+
Portfolio Managers [GRAPHIC]
Dimensional Fund Advisors (sub-advisor)
PORTFOLIO MANAGERS' PERSPECTIVE
Dimensional Fund Advisors Inc. (DFA) "The AmSouth International Equity Fund selects value
employs a team approach in sub-advising stocks whose market capitalization is over $800 million
the International Equity Fund. The and whose book-to-market ratio currently is in the upper 30%
Investment Committee sets policy and of the investment universe for each country. We weight each
procedures, and portfolio managers make country in accordance with MSCI EAFE/1/ country weights.
daily decisions regarding the Fund. Within a country, we generally hold capitalization-weighted
Karen Umland, VP and portfolio manager, positions of all eligible securities. We seek to manage portfolio
heads the international group. risk by investing in a broadly diversified cross section of
Portfolio managers on the international international value stocks."
team are located in Los Angeles, London
and Sydney.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund gained 11.35% (Class A Shares at NAV). In comparison, the Fund's
benchmark, the Morgan Stanley Capital International EAFE (Europe, Australasia
and Far East) Index gained 6.30%.
Q. What factors affected the Fund's performance during the period?
A. Global stocks fell during the first half of the period, then posted strong
gains during the four months through July. That environment resulted in
negative Fund returns through March, followed by sizable gains near the end of
the period. Continental Europe and the Pacific Rim provided the strongest
gains, while Japan's market was relatively weak.
Dimensional Fund Advisors follows a value-oriented investment strategy. We
start with a universe of stocks with market capitalizations larger than $800
million in each of 21 developed market countries. We currently invest in the
top 30% of that universe in each country, as ranked by book value-to-market
capitalization ratios. That strategy is based on studies that indicate that
book value-to-market cap and company size are the most important factors in
determining stock performance over the long term. We maintain country and
regional weightings close to those of the benchmark.
That investment strategy helped the Fund significantly outperform the index
during the period. Value stocks beat growth stocks during the period, boosting
the Fund's relative returns. What's more, the Fund's value style typically
leads it to invest in smaller stocks than the shares that make up the
benchmark. Small stocks dramatically outperformed larger shares during the
period, also contributing to the Fund's superior performance. The Fund
outperformed the benchmark in every broad geographical region.
+ International investing involves increased risk and volatility.
/1/See Glossary of Terms for additional information.
The AmSouth International Equity Fund is subadvised by Dimensional Fund
Advisors, Inc., which is paid a fee for its services.
20
AMSOUTH INTERNATIONAL EQUITY FUND+
[CHART]
Value of a $10,000 Investment
AmSouth
International
Equity Fund MSCI EAFE/R/
(Class A Shares)* Index
---------------- ---------
8/15/1997 $9,452 $10,000
8/31/1997 9,149 9,253
9/30/1997 9,773 9,772
10/31/1997 8,998 9,020
11/30/1997 9,093 8,928
12/31/1997 9,168 9,006
1/31/1998 9,395 9,418
2/28/1998 9,897 10,023
3/31/1998 10,493 10,331
4/30/1998 10,673 10,413
5/31/1998 10,730 10,362
6/30/1998 10,474 10,441
7/31/1998 10,588 10,547
8/31/1998 8,875 9,240
9/30/1998 8,449 8,957
10/31/1998 9,149 9,890
11/30/1998 9,679 10,397
12/31/1998 10,037 10,807
1/31/1999 9,952 10,775
2/28/1999 9,705 10,519
3/31/1999 10,028 10,958
4/30/1999 10,559 11,402
5/31/1999 10,170 10,815
6/30/1999 10,654 11,236
7/31/1999 10,995 11,570
8/31/1999 11,166 11,612
9/30/1999 11,147 11,729
10/31/1999 11,422 12,169
11/30/1999 11,754 12,591
12/31/1999 12,724 13,721
1/31/2000 11,794 12,850
2/29/2000 11,852 13,196
3/31/2000 12,389 13,707
4/30/2000 11,852 12,986
5/31/2000 11,670 12,669
6/30/2000 12,197 13,164
7/31/2000 11,861 12,612
8/31/2000 11,855 12,722
9/30/2000 11,279 12,102
10/31/2000 11,135 11,816
11/30/2000 10,808 11,373
12/31/2000 11,262 11,777
1/31/2001 11,262 11,771
2/28/2001 10,627 10,889
3/31/2001 9,843 10,163
4/30/2001 10,359 10,869
5/31/2001 10,120 10,486
6/30/2001 9,813 10,057
7/31/2001 9,416 9,874
8/31/2001 9,237 9,624
9/30/2001 8,156 8,649
10/31/2001 8,215 8,870
11/30/2001 8,464 9,197
12/31/2001 8,523 9,252
1/31/2002 8,117 8,760
2/28/2002 8,236 8,822
3/31/2002 8,752 9,342
4/30/2002 8,772 9,361
5/31/2002 8,881 9,479
6/30/2002 8,484 9,102
7/31/2002 7,749 8,203
8/31/2002 7,779 8,187
9/30/2002 6,767 7,310
10/31/2002 7,144 7,703
11/30/2002 7,630 8,054
12/31/2002 7,249 7,784
1/31/2003 7,080 7,460
2/28/2003 6,881 7,289
3/31/2003 6,693 7,151
4/30/2003 7,447 7,860
5/31/2003 8,003 8,344
6/30/2003 8,242 8,550
7/31/2003 8,629 8,550
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 July 31, 2003 Inception Date 1 Year 5 Year Since Inception
- -------------------------------------------------------------------------------
Class A Shares* 8/15/97 5.28% -5.09% -2.45%
Class B Shares** 2/2/99/1/ 6.13% -5.05% -2.41%
Class I Shares 12/14/98/1/ 11.73% -3.86% -1.39%
- -------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
8/15/97 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth International Equity Fund is measured against
the Morgan Stanley Capital International, MSCI (Europe, Australasia and Far
East) EAFE(R) Index, which is unmanaged index that is comprised of a sample of
companies representative of the market structure of 20 European and Pacific
Basin countries. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management fees. The Fund's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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.
/1/Performance for the Class B and Class I Shares, which commenced operations
on 2/2/99 and 12/14/98, 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 adjusted to
reflect the higher 12b-1 fees and the contingent deferred sales charge
(CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
21
AMSOUTH BALANCED FUND
PORTFOLIO MANAGERS [GRAPHIC]
Tin Y. Chan, CFA PORTFOLIO MANAGERS' PERSPECTIVE
Senior Vice President "The AmSouth Balanced Fund is a diversified fund that offers
investors a simple and easy way to balance their investments
John P. Boston, CFA in stocks as well as in bonds. Within our equity component,
Senior Vice President we follow a value strategy, seeking to buy solid companies at
attractive prices. We also assess market opportunities to
AmSouth Bank allocate assets where we feel they have the best prospects
AmSouth Asset Investment Management, Inc. for risk-adjusted returns."
With more than a decade of experience in equity
investments and research, Tin Chan has had
portfolio management responsibilities for retail
and insurance-related mutual funds. He holds two
undergraduate degrees from Cornell University and
earned an MBA from the Graduate School of
Business at the University of Chicago. He also
serves as manager of the AmSouth Value Fund.
John Boston also manages the AmSouth Limited Term
Bond Fund and co-manages the AmSouth Bond Fund
and 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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund gained 8.34% (Class A Shares at NAV). In comparison the Fund's
benchmarks, the S&P 500 Stock Index and the Lehman Brothers Government/Credit
Bond Index gained 10.64% and 7.12%, respectively. The Lipper Balanced Funds
Average/1/ gained 8.21%.
Q. What factors affected the performance of the Fund during the period?
A. We increased the Fund's allocation to equities before the period, from 50%
to 55% of assets. That move hurt performance during the first three-quarters of
the period, as stocks fell and bond prices rose. The increased equity exposure
helped returns late in the period, however, when stocks rallied and bonds fell.
The Fund's larger stock allocation increased returns for the period as a whole.
We rebalanced the sector allocations of the Fund's equity portfolio in April,
because we expected the economy to gain strength. We increased the Fund's stake
in consumer-discretionary and industrial stocks, and reduced the Fund's
investments in health care and utilities shares. Those moves boosted the Fund's
returns during the stock market rally. We decreased the Fund's technology
stake, because we did not think technology stocks' valuations and business
prospects were attractive. That shift hurt performance, as technology stocks
led the market during the final months of the period.
We maintained a relatively short duration in the Fund's fixed-income portfolio
during the period, because we anticipated that an economic recovery would boost
yields. That strategy caused the Fund's bond allocation to lag the fixed-income
benchmark as yields fell through most of the period, but contributed to
competitive relative performance when yields rose late in the period.
/1/See Glossary of Terms for additional information.
22
AMSOUTH BALANCED FUND
[CHART]
Value of a $10,000 Investment
AmSouth Balanced Lehman Brothers
Fund (Class Government/Credit S&P 500 Stock
A Shares)* Bond Index Index
---------------- ----------------- -------------
7/31/1993 $ 9,450 $10,000 $10,000
8/31/1993 9,733 10,230 10,379
9/30/1993 9,668 10,265 10,299
10/31/1993 9,774 10,307 10,512
11/30/1993 9,715 10,191 10,412
12/31/1993 9,874 10,235 10,538
1/31/1994 10,188 10,389 10,896
2/28/1994 9,977 10,163 10,600
3/31/1994 9,625 9,915 10,139
4/30/1994 9,644 9,833 10,269
5/31/1994 9,789 9,814 10,436
6/30/1994 9,706 9,791 10,181
7/31/1994 9,935 9,987 10,515
8/31/1994 10,124 9,991 10,945
9/30/1994 9,930 9,840 10,678
10/31/1994 10,002 9,829 10,917
11/30/1994 9,729 9,811 10,520
12/31/1994 9,835 9,876 10,676
1/31/1995 10,012 10,066 10,953
2/28/1995 10,363 10,299 11,379
3/31/1995 10,565 10,368 11,714
4/30/1995 10,864 10,513 12,059
5/31/1995 11,220 10,953 12,540
6/30/1995 11,265 11,041 12,831
7/31/1995 11,450 10,998 13,256
8/31/1995 11,514 11,139 13,289
9/30/1995 11,702 11,252 13,850
10/31/1995 11,655 11,418 13,800
11/30/1995 12,001 11,606 14,406
12/31/1995 12,148 11,777 14,683
1/31/1996 12,417 11,850 15,182
2/29/1996 12,380 11,598 15,324
3/31/1996 12,508 11,501 15,471
4/30/1996 12,665 11,422 15,699
5/31/1996 12,711 11,403 16,103
6/30/1996 12,740 11,555 16,165
7/31/1996 12,407 11,582 15,451
8/31/1996 12,592 11,554 15,777
9/30/1996 12,847 11,759 16,664
10/31/1996 13,002 12,033 17,124
11/30/1996 13,513 12,255 18,417
12/31/1996 13,328 12,118 18,052
1/31/1997 13,613 12,133 19,179
2/28/1997 13,823 12,158 19,330
3/31/1997 13,555 12,014 18,537
4/30/1997 13,848 12,190 19,643
5/31/1997 14,436 12,303 20,844
6/30/1997 14,803 12,451 21,770
7/31/1997 15,684 12,832 23,502
8/31/1997 15,270 12,688 22,187
9/30/1997 15,907 12,887 23,401
10/31/1997 15,590 13,094 22,620
11/30/1997 15,872 13,163 23,667
12/31/1997 16,106 13,301 24,073
1/31/1998 16,268 13,488 24,339
2/28/1998 16,845 13,461 26,093
3/31/1998 17,364 13,502 27,428
4/30/1998 17,285 13,570 27,709
5/31/1998 17,316 13,716 27,233
6/30/1998 17,472 13,856 28,339
7/31/1998 17,181 13,867 28,039
8/31/1998 16,096 14,138 23,988
9/30/1998 16,865 14,542 25,526
10/31/1998 17,565 14,439 27,600
11/30/1998 18,080 14,525 29,272
12/31/1998 18,219 14,561 30,957
1/31/1999 18,225 14,664 32,251
2/28/1999 17,828 14,316 31,249
3/31/1999 18,114 14,387 32,499
4/30/1999 18,948 14,423 33,758
5/31/1999 18,947 14,274 32,961
6/30/1999 19,112 14,229 34,786
7/31/1999 18,795 14,190 33,704
8/31/1999 18,520 14,178 33,537
9/30/1999 18,109 14,306 32,619
10/31/1999 18,451 14,343 34,682
11/30/1999 18,369 14,335 35,387
12/31/1999 18,461 14,248 37,469
1/31/2000 17,964 14,244 35,586
2/29/2000 17,598 14,423 34,913
3/31/2000 18,691 14,631 38,327
4/30/2000 18,599 14,560 37,174
5/31/2000 18,721 14,547 36,412
6/30/2000 18,317 14,844 37,309
7/31/2000 18,598 15,001 36,726
8/31/2000 19,367 15,213 39,006
9/30/2000 19,446 15,270 36,947
10/31/2000 19,722 15,366 36,790
11/30/2000 19,689 15,628 33,892
12/31/2000 20,341 15,937 34,058
1/31/2001 20,608 16,204 35,266
2/28/2001 20,562 16,371 32,052
3/31/2001 20,358 16,446 30,023
4/30/2001 20,911 16,323 32,354
5/31/2001 21,266 16,417 32,571
6/30/2001 21,076 16,496 31,779
7/31/2001 21,188 16,907 31,466
8/31/2001 21,028 17,124 29,498
9/30/2001 20,474 17,281 27,116
10/31/2001 20,907 17,720 27,634
11/30/2001 21,187 17,429 29,753
12/31/2001 21,278 17,292 30,013
1/31/2002 21,227 17,419 29,576
2/28/2002 21,050 17,567 29,005
3/31/2002 21,344 17,210 30,096
4/30/2002 21,028 17,544 28,272
5/31/2002 20,864 17,706 28,065
6/30/2002 20,265 17,856 26,066
7/31/2002 19,587 18,071 24,035
8/31/2002 19,915 18,476 24,192
9/30/2002 18,891 18,874 21,566
10/31/2002 19,776 18,693 23,462
11/30/2002 20,216 18,704 24,841
12/31/2002 19,819 19,200 23,383
1/31/2003 19,472 19,199 22,771
2/28/2003 19,309 19,541 22,429
3/31/2003 19,259 19,516 22,646
4/30/2003 20,049 19,724 24,511
5/31/2003 21,073 20,285 25,801
6/30/2003 21,304 20,204 26,131
7/31/2003 21,220 19,357 26,592
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 12/19/91 2.41% 3.15% 7.81%
Class B Shares** 9/2/97/1/ 2.55% 3.30% 7.52%
Class I Shares 9/2/97/1/ 8.49% 4.54% 8.56%
- --------------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmarks. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Balanced Fund is measured against the S&P 500
Stock Index, an unmanaged index generally representative of the U.S. stock
market as a whole; and the Lehman Brothers Government/Credit Bond Index, an
unmanaged broad-based index representative of the total return of long-term
government and corporate bonds. The indices do not reflect the deduction of
fees associated with a mutual fund, such as investment management fees. The
Fund's performance does reflect the deduction of fees for these value-added
services. Investors cannot invest directly in an index, although they can
invest in its underlying securities. 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 9/2/97, 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 adjusted to reflect the higher 12b-1 fees and
the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
23
AMSOUTH STRATEGIC PORTFOLIOS
AGGRESSIVE GROWTH [GRAPHIC]
GROWTH
GROWTH and INCOME PORTFOLIO MANAGERS' PERSPECTIVE
MODERATE GROWTH and INCOME The Portfolios seek to provide investors with the potential to
achieve a variety of long- and short-term goals, commensurate
The AmSouth Strategic Portfolios are with investors' specific time horizons and tolerance for risk.
managed by a team of AmSouth investment Each of the four Strategic Portfolios invests in a combination
managers, including both equity and of underlying mutual funds from the AmSouth fund family.
fixed income specialists. The team has Based on each Portfolio's asset-allocation target, the
more than 40 years of combined managers periodically rebalance stock, bond and money-
investment management experience. market holdings--based on analysis of economic and
market trends.
[GRAPHIC]
Q&A
Q. How did the Funds perform during the period?
A. During the 12-month period ended July 31, 2003, the Funds' total returns,
and benchmark returns and other comparative returns were as follows:
AmSouth Aggressive Growth Portfolio (Class A Shares at NAV): 9.81%
S&P 500 Stock Index: 10.64%
Lipper Multi-Cap Core Funds Average/1/: 11.04%
AmSouth Growth Portfolio (Class A Shares at NAV): 9.18%
S&P 500 Stock Index: 10.64%
Lipper Multi-Cap Core Funds Average/1/: 11.04%
AmSouth Growth and Income Portfolio (Class A Shares at NAV): 8.30%
S&P 500 Stock Index: 10.64%
Merrill Lynch Government/Corporate Master Index: 6.89%
Lipper Large-Cap Value Funds Average/1/: 8.06%
AmSouth Moderate Growth and Income Portfolio (Class A Shares at NAV): 7.85%
S&P 500 Stock Index: 10.64%
Merrill Lynch Government/Corporate Master Index: 6.89%
Lipper Flexible Portfolio Funds Average/1/: 8.52%
Q. What factors affected the Portfolios' performance?
A. We increased the equity allocations of the Portfolios by five percentage
points immediately prior to the period. That move hurt returns through March as
stocks struggled and bonds performed well. The Portfolios benefited from their
increased equity exposure during the final two-and-a-half months of the period,
as the stock market rebounded dramatically and bond prices fell. The
Portfolios' increased stock holdings boosted returns for the 12-month period as
a whole. Stocks' strong performance relative to bonds caused the more
aggressive Portfolios to outperform the more conservative Portfolios.
We implemented a new strategy to manage the equity assets of the Portfolios in
February. The new approach, which we call the AmSouth diversified equity
strategy, calls for holding a larger percentage of assets in the Portfolios'
core stock fund, the AmSouth Enhanced Market Fund. The approach divides the
rest of each Portfolio's stock allocation between seven other AmSouth Equity
Funds.
The new strategy provides greater diversification by giving equal weighting to
growth and value investment styles and providing greater exposure to mid-cap,
small-cap and international stocks. These changes helped boost the Fund's
returns during the final quarter of the period, as smaller stocks posted
stronger gains than larger shares and the AmSouth International Equity Fund
significantly outperformed its benchmark.
/1/See Glossary of Terms for additional information.
+International investing involves increased risk and volatility.
24
AMSOUTH AGGRESSIVE GROWTH PORTFOLIO
[CHART]
Value of a $10,000 Investment
AmSouth Aggressive
Growth Portfolio S&P 500
(Class A Shares)* Stock Index
------------------ -----------
1/13/1999 $ 9,452 $10,000
1/31/1999 9,518 10,050
2/28/1999 9,253 9,689
3/31/1999 9,395 10,077
4/30/1999 9,565 10,467
5/31/1999 9,348 10,220
6/30/1999 9,773 10,787
7/31/1999 9,707 10,450
8/31/1999 9,612 10,399
9/30/1999 9,528 10,114
10/31/1999 9,813 10,754
11/30/1999 10,353 10,972
12/31/1999 11,051 11,619
1/31/2000 10,678 11,035
2/29/2000 10,870 10,826
3/31/2000 11,389 11,885
4/30/2000 11,162 11,527
5/31/2000 10,943 11,291
6/30/2000 11,235 11,569
7/31/2000 11,058 11,388
8/31/2000 11,568 12,096
9/30/2000 11,443 11,457
10/31/2000 11,495 11,409
11/30/2000 11,011 10,509
12/31/2000 11,217 10,561
1/31/2001 11,465 10,935
2/28/2001 10,872 9,938
3/31/2001 10,238 9,309
4/30/2001 10,939 10,032
5/31/2001 11,068 10,099
6/30/2001 10,842 9,853
7/31/2001 10,680 9,757
8/31/2001 10,227 9,146
9/30/2001 9,333 8,407
10/31/2001 9,602 8,568
11/30/2001 10,044 9,225
12/31/2001 10,156 9,306
1/31/2002 10,086 9,170
2/28/2002 9,878 8,993
3/31/2002 10,410 9,331
4/30/2002 9,994 8,765
5/31/2002 9,739 8,701
6/30/2002 8,987 8,081
7/31/2002 8,143 7,451
8/31/2002 8,201 7,500
9/30/2002 7,264 6,684
10/31/2002 7,808 7,273
11/30/2002 8,374 7,701
12/31/2002 7,889 7,249
1/31/2003 7,761 7,059
2/28/2003 7,542 6,953
3/31/2003 7,565 7,021
4/30/2003 8,144 7,599
5/31/2003 8,641 7,999
6/30/2003 8,745 8,102
7/31/2003 8,942 7,775
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 July 31, 2003 Inception Date 1 Year Since Inception
- ----------------------------------------------------------------------
Class A Shares* 1/13/99 3.77% -2.43%
Class B Shares** 1/27/99 4.02% -2.41%
Class I Shares 1/28/99 9.97% -1.30%
- ----------------------------------------------------------------------
* Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
1/13/99 to 7/31/03 in the Class A Shares class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The Portfolio's performance is compared to the S&P 500 Stock Index, an
unmanaged index which is generally representative of the U.S. stock market as
a whole. The index does not reflect the expenses associated with a mutual
fund, such as investment management fees. The Portfolio's performance does
reflect the deduction of fees for these value-added services. Investors cannot
invest directly in an index, although they can invest in its underlying
securities. 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
25
AMSOUTH GROWTH PORTFOLIO
[CHART]
Value of a $10,000 Investment
AmSouth
Growth Portfolio S&P 500
(Class A Shares)* Stock Index
----------------- -----------
2/11/1999 $ 9,448 $10,000
2/28/1999 9,286 10,050
3/31/1999 9,239 10,400
4/30/1999 9,429 10,803
5/31/1999 9,286 10,548
6/30/1999 9,605 11,133
7/31/1999 9,538 10,786
8/31/1999 9,414 10,732
9/30/1999 9,355 10,438
10/31/1999 9,566 11,099
11/30/1999 9,845 11,324
12/31/1999 10,284 11,991
1/31/2000 10,022 11,389
2/29/2000 10,100 11,173
3/31/2000 10,495 12,266
4/30/2000 10,291 11,897
5/31/2000 10,118 11,653
6/30/2000 10,375 11,940
7/31/2000 10,240 11,754
8/31/2000 10,706 12,484
9/30/2000 10,542 11,825
10/31/2000 10,537 11,775
11/30/2000 10,157 10,846
12/31/2000 10,345 10,899
1/31/2001 10,505 11,286
2/28/2001 10,125 10,257
3/31/2001 9,724 9,607
4/30/2001 10,150 10,354
5/31/2001 10,224 10,423
6/30/2001 10,076 10,170
7/31/2001 10,032 10,069
8/31/2001 9,729 9,439
9/30/2001 9,164 8,677
10/31/2001 9,384 8,842
11/30/2001 9,679 9,521
12/31/2001 9,748 9,604
1/31/2002 9,715 9,464
2/28/2002 9,608 9,281
3/31/2002 9,906 9,631
4/30/2002 9,680 9,047
5/31/2002 9,520 8,980
6/30/2002 9,027 8,340
7/31/2002 8,477 7,690
8/31/2002 8,563 7,740
9/30/2002 7,878 6,899
10/31/2002 8,331 7,506
11/30/2002 8,755 7,948
12/31/2002 8,420 7,481
1/31/2003 8,319 7,285
2/28/2003 8,179 7,176
3/31/2003 8,197 7,246
4/30/2003 8,667 7,843
5/31/2003 9,076 8,256
6/30/2003 9,150 8,362
7/31/2003 9,255 8,025
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 July 31, 2003 Inception Date 1 Year Since Inception
- ------------------------------------------------------------------------
Class A Shares* 2/11/99 3.20% -1.72%
Class B Shares** 2/15/99 3.39% -1.32%
Class I Shares 2/1/99 9.19% -0.47%
- ------------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
2/11/99 to 7/31/03 in the Class A Shares versus a similar investment in the
Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The Portfolio's performance is compared to the S&P 500 Stock Index, an
unmanaged index which is generally representative of the U.S. stock market as
a whole. The index does not reflect the expenses associated with a mutual
fund, such as investment management fees. The Portfolio's performance does
reflect the deduction of fees for these value-added services. Investors cannot
invest directly in an index, although they can invest in its underlying
securities. 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 2/1/99 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
26
AMSOUTH GROWTH AND INCOME PORTFOLIO
[CHART]
Value of a $10,000 Investment
AmSouth Growth and Merrill Lynch
Income Portfolio Government/Corporate S&P 500
(Class A Shares)* Master Index Stock Index
----------------- -------------------- -----------
3/08/1999 $ 9,448 $10,000 $10,000
3/31/1999 9,392 10,063 10,050
4/30/1999 9,495 10,096 10,387
5/31/1999 9,355 9,986 10,142
6/30/1999 9,508 9,956 10,705
7/31/1999 9,424 9,928 10,371
8/31/1999 9,377 9,920 10,319
9/30/1999 9,304 10,011 10,037
10/31/1999 9,473 10,031 10,672
11/30/1999 9,708 10,026 10,889
12/31/1999 9,940 9,976 11,530
1/31/2000 9,770 9,973 10,951
2/29/2000 9,751 10,093 10,743
3/31/2000 10,109 10,250 11,794
4/30/2000 10,066 10,196 11,440
5/31/2000 10,000 10,185 11,205
6/30/2000 10,212 10,387 11,481
7/31/2000 10,109 10,491 11,302
8/31/2000 10,422 10,639 12,003
9/30/2000 10,343 10,684 11,370
10/31/2000 10,368 10,754 11,322
11/30/2000 10,179 10,949 10,429
12/31/2000 10,359 11,167 10,480
1/31/2001 10,526 11,332 10,852
2/28/2001 10,248 11,455 9,862
3/31/2001 9,980 11,517 9,238
4/30/2001 10,303 11,419 9,956
5/31/2001 10,365 11,488 10,022
6/30/2001 10,260 11,539 9,778
7/31/2001 10,271 11,830 9,682
8/31/2001 10,061 11,964 9,076
9/30/2001 9,655 12,117 8,343
10/31/2001 9,870 12,407 8,502
11/30/2001 10,077 12,201 9,154
12/31/2001 10,122 12,108 9,235
1/31/2002 10,111 12,180 9,100
2/28/2002 10,034 12,288 8,924
3/31/2002 10,261 12,035 9,260
4/30/2002 10,112 12,270 8,699
5/31/2002 9,985 12,381 8,635
6/30/2002 9,607 12,488 8,019
7/31/2002 9,227 12,667 7,394
8/31/2002 9,322 12,881 7,442
9/30/2002 8,759 13,159 6,633
10/31/2002 9,158 13,037 7,217
11/30/2002 9,519 12,878 7,642
12/31/2002 9,258 13,213 7,194
1/31/2003 9,179 13,206 7,005
2/28/2003 9,073 13,438 6,900
3/31/2003 9,085 13,421 6,967
4/30/2003 9,502 13,554 7,541
5/31/2003 9,882 13,926 7,938
6/30/2003 9,950 13,875 8,040
7/31/2003 9,992 14,119 7,716
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 July 31, 2003 Inception Date 1 Year Since Inception
- ------------------------------------------------------------------
Class A Shares* 3/8/99 2.40% -0.02%
Class B Shares* 1/27/99 2.45% 0.44%
Class I Shares 2/8/99 8.32% 1.98%
- ------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compares hypothetical $10,000 investment from 3/8/99
to 7/31/03 in the Class A Shares versus a similar investment in the Fund's
benchmarks. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The Portfolio's performance is compared to the Merrill Lynch
Government/Corporate Master Index, which is generally representative of the
performance of corporate and U.S. Government bonds and the S&P 500 Stock
Index, which is generally representative of the U.S. stock market as a whole.
These indices are unmanaged and do not reflect the expenses associated with a
mutual fund, such as investment management fees. The Portfolio's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than original cost.
27
AMSOUTH MODERATE GROWTH AND INCOME PORTFOLIO
[CHART]
Value of a $10,000 Investment
AmSouth Moderate Merrill Lynch
Growth and Income Portfolio Government/Corporate S&P 500
(Class A Shares)* Master Index Stock Index
--------------------------- -------------------- -----------
2/9/1999 $ 9,454 $10,000 $10,000
2/28/1999 9,473 9,748 10,050
3/31/1999 9,513 9,809 10,400
4/30/1999 9,561 9,842 10,803
5/31/1999 9,446 9,735 10,548
6/30/1999 9,525 9,705 11,133
7/31/1999 9,457 9,677 10,786
8/31/1999 9,428 9,670 10,732
9/30/1999 9,399 9,759 10,438
10/31/1999 9,515 9,778 11,099
11/30/1999 9,660 9,774 11,324
12/31/1999 9,772 9,724 11,991
1/31/2000 9,654 9,722 11,389
2/29/2000 9,625 9,839 11,173
3/31/2000 9,932 9,992 12,266
4/30/2000 9,907 9,939 11,897
5/31/2000 9,873 9,928 11,653
6/30/2000 10,031 10,126 11,940
7/31/2000 10,009 10,227 11,754
8/31/2000 10,268 10,371 12,484
9/30/2000 10,235 10,415 11,825
10/31/2000 10,273 10,483 11,775
11/30/2000 10,186 10,673 10,846
12/31/2000 10,343 10,886 10,899
1/31/2001 10,545 11,047 11,286
2/28/2001 10,342 11,166 10,257
3/31/2001 10,145 11,227 9,607
4/30/2001 10,404 11,131 10,354
5/31/2001 10,492 11,199 10,423
6/30/2001 10,420 11,248 10,170
7/31/2001 10,500 11,532 10,069
8/31/2001 10,334 11,662 9,439
9/30/2001 10,039 11,812 8,677
10/31/2001 10,274 12,095 8,842
11/30/2001 10,446 11,894 9,521
12/31/2001 10,471 11,803 9,604
1/31/2002 10,482 11,873 9,464
2/28/2002 10,416 11,978 9,281
3/31/2002 10,585 11,732 9,631
4/30/2002 10,427 11,961 9,047
5/31/2002 10,324 12,069 8,980
6/30/2002 9,987 12,173 8,340
7/31/2002 9,681 12,348 7,690
8/31/2002 9,798 12,556 7,740
9/30/2002 9,308 12,828 6,899
10/31/2002 9,690 12,708 7,506
11/30/2002 10,029 12,553 7,948
12/31/2002 9,820 12,880 7,481
1/31/2003 9,751 12,873 7,285
2/28/2003 9,668 13,100 7,176
3/31/2003 9,683 13,083 7,246
4/30/2003 10,044 13,212 7,843
5/31/2003 10,391 13,576 8,256
6/30/2003 10,452 13,525 8,362
7/31/2003 10,440 13,763 8,025
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 July 31, 2003 Inception Date 1 Year Since Inception
- ----------------------------------------------------------------------
Class A Shares* 2/9/99 1.91% 0.97%
Class B Shares** 1/28/99 2.02% 0.84%
Class I Shares 2/10/99 7.87% 2.37%
- ----------------------------------------------------------------------
*Reflects maximum 5.50% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
2/9/99 to 7/31/03 in the Class A Shares versus a similar investment in the
Fund's benchmarks. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The Portfolio's performance is compared to the Merrill Lynch
Government/Corporate Master Index, which is generally representative of the
performance of corporate and U.S. Government bonds, and the S&P 500 Stock
Index, which is generally representative of the U.S. stock market as a whole.
These indices are unmanaged and do not reflect the expenses associated with a
mutual fund, such as investment management fees. The Portfolio's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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.
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
28
[THIS PAGE INTENTIONALLY LEFT BLANK]
29
AMSOUTH GOVERNMENT INCOME FUND
PORTFOLIO MANAGERS [GRAPHIC]
John P. Boston, CFA
Senior Vice President PORTFOLIO MANAGERS' PERSPECTIVE
"The AmSouth Government Income Fund is more suitable
John Mark McKenzie for investors who seek income but also demand the safety
Senior Vice President of U.S. Government securities. Although we attempt to
consistently generate a high level of income, investors should
AmSouth Bank be aware that yields and principal values vary and that the
AmSouth Asset Management, Inc. Fund is not guaranteed by the U.S. Government."
John Boston also manages the AmSouth Limited Term
Bond Fund, and co-manages the AmSouth Bond 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.
John Mark McKenzie has been in investment
management since 1981. He also manages the five
AmSouth money market funds. He 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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund returned 3.47% (Class A Shares at NAV). In comparison, the Fund's
benchmark, the Lehman Brothers Mortgage Index gained 2.56%. The Lipper U.S.
Mortgage Funds Average/1/ gained 2.32%.
Q. What factors affected the Fund's performance during the period?
A. The Fed lowered short-term interest rates twice, for a total reduction of 75
basis points. The Fed's easing policy drove down short-term yields to very low
levels, causing bond prices to rise. That environment boosted the Fund's
returns through mid-June. Yields rose late in the period, as strengthening
economic data caused investors to sell bonds. Rising yields hurt fixed-income
securities' absolute returns.
This Fund invests in mortgage pass-through securities, Treasury notes and
agency issues. Mortgage-backed securities had significant pre-payments during
the period, as mortgage-holders took advantage of historically low rates to
refinance their home loans. The Fund held an
underweight position in mortgage-backed securities, which helped to boost
relative returns in that environment. The Fund held an overweight position in
agency issues. That approach proved beneficial, as agency securities
outperformed Treasuries and mortgage-backed securities. Most mortgage funds
held shorter durations during the period, but we believe the longer duration on
the Fund helped performance in a falling-rate environment.
/1/See Glossary of Terms for additional information.
30
AMSOUTH GOVERNMENT INCOME FUND
[CHART]
Value of a $10,000 Investment
AmSouth Government
Income Fund Lehman Brothers
(Class A Shares)* Mortgage Index
----------------- --------------
10/31/1993 $ 9,573 $10,029
11/30/1993 9,549 10,009
12/31/1993 9,598 10,090
1/31/1994 9,656 10,190
2/28/1994 9,597 10,119
3/31/1994 9,460 9,855
4/30/1994 9,411 9,783
5/31/1994 9,431 9,822
6/30/1994 9,461 9,800
7/31/1994 9,572 9,996
8/31/1994 9,603 10,028
9/30/1994 9,552 9,886
10/31/1994 9,552 9,880
11/30/1994 9,511 9,849
12/31/1994 9,562 9,928
1/31/1995 9,720 10,140
2/28/1995 9,904 10,399
3/31/1995 9,926 10,448
4/30/1995 10,027 10,596
5/31/1995 10,309 10,930
6/30/1995 10,376 10,992
7/31/1995 10,379 11,011
8/31/1995 10,476 11,125
9/30/1995 10,558 11,223
10/31/1995 10,672 11,323
11/30/1995 10,807 11,452
12/31/1995 10,936 11,595
1/31/1996 11,000 11,682
2/29/1996 10,864 11,586
3/31/1996 10,820 11,544
4/30/1996 10,767 11,511
5/31/1996 10,739 11,478
6/30/1996 10,847 11,636
7/31/1996 10,888 11,680
8/31/1996 10,909 11,680
9/30/1996 11,072 11,875
10/31/1996 11,308 12,107
11/30/1996 11,494 12,280
12/31/1996 11,381 12,217
1/31/1997 11,428 12,307
2/28/1997 11,446 12,348
3/31/1997 11,339 12,232
4/30/1997 11,494 12,426
5/31/1997 11,598 12,548
6/30/1997 11,737 12,695
7/31/1997 12,001 12,933
8/31/1997 11,937 12,902
9/30/1997 12,103 13,066
10/31/1997 12,252 13,211
11/30/1997 12,309 13,255
12/31/1997 12,445 13,375
1/31/1998 12,580 13,508
2/28/1998 12,600 13,536
3/31/1998 12,643 13,593
4/30/1998 12,691 13,670
5/31/1998 12,787 13,761
6/30/1998 12,861 13,827
7/31/1998 12,910 13,897
8/31/1998 13,056 14,024
9/30/1998 13,273 14,193
10/31/1998 13,253 14,175
11/30/1998 13,314 14,246
12/31/1998 13,334 14,307
1/31/1999 13,417 14,409
2/28/1999 13,284 14,351
3/31/1999 13,343 14,447
4/30/1999 13,400 14,514
5/31/1999 13,334 14,432
6/30/1999 13,291 14,382
7/31/1999 13,248 14,284
8/31/1999 13,226 14,284
9/30/1999 13,381 14,515
10/31/1999 13,436 14,600
11/30/1999 13,454 14,607
12/31/1999 13,418 14,572
1/31/2000 13,389 14,445
2/29/2000 13,527 14,613
3/31/2000 13,716 14,772
4/30/2000 13,664 14,782
5/31/2000 13,655 14,790
6/30/2000 13,877 15,106
7/31/2000 13,983 15,203
8/31/2000 14,178 15,434
9/30/2000 14,242 15,594
10/31/2000 14,365 15,707
11/30/2000 14,592 15,942
12/31/2000 14,850 16,199
1/31/2001 15,020 16,452
2/28/2001 15,145 16,545
3/31/2001 15,211 16,641
4/30/2001 15,156 16,665
5/31/2001 15,223 16,775
6/30/2001 15,259 16,810
7/31/2001 15,556 17,109
8/31/2001 15,685 17,260
9/30/2001 15,938 17,519
10/31/2001 16,240 17,760
11/30/2001 16,011 17,597
12/31/2001 15,891 17,530
1/31/2002 15,976 17,693
2/28/2002 16,108 17,895
3/31/2002 15,860 17,705
4/30/2002 16,153 18,040
5/31/2002 16,239 18,171
6/30/2002 16,389 18,321
7/31/2002 16,638 18,529
8/31/2002 16,871 18,676
9/30/2002 17,121 18,808
10/31/2002 17,093 18,880
11/30/2002 17,014 18,867
12/31/2002 17,274 19,063
1/31/2003 17,249 19,109
2/28/2003 17,406 19,237
3/31/2003 17,396 19,238
4/30/2003 17,436 19,319
5/31/2003 17,595 19,335
6/30/2003 17,584 19,366
7/31/2003 17,215 19,004
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 July 31, 2003 Inception Date 1 Year 5 Year Since Inception
- ---------------------------------------------------------------------------
Class A Shares* 10/1/93 -0.69% 5.07% 5.68%
Class B Shares** 3/13/00/1/ -2.29% 4.72% 5.16%
Class I Shares 9/2/97/1/ 3.62% 6.09% 6.20%
- ---------------------------------------------------------------------------
* Reflects maximum 4.00% sales charge.
** Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
10/1/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
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 does not reflect the deduction
of fees associated with a mutual fund, such as investment management fees. The
Fund's performance does reflect the deduction of fees for these value-added
services. Investors cannot invest directly in an index, although they can
invest in its underlying securities. 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 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
31
AMSOUTH LIMITED TERM BOND FUND
PORTFOLIO MANAGER [GRAPHIC]
John P. Boston, CFA
Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Limited Term Bond Fund was designed to
AmSouth Bank fill the gap between money market funds and long-term
AmSouth Asset bond funds. For investors looking for a diversified bond fund,
Management, Inc. this Fund represents the first step out on the 'risk/return'
spectrum from the money market arena."
John Boston manages the
AmSouth Limited Term
Bond Fund and co-manages
both the AmSouth
Government Income Fund
and the AmSouth Bond
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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund's total return was 3.52% (Class A Shares at NAV). In comparison,
the Fund's benchmark the Merrill Lynch 1-5-Year Government/Corporate Bond Index
gained 5.05%. The Lipper Short-Intermediate Investment Grade Debt Funds
Average/1/ gained 4.83%.
Q. What factors affected the Fund's performance?
A. The Fed cut short-term interest rates twice, for a total reduction of 0.75
percentage points. Those rate cuts pushed down yields on short-term bonds
during most of the period, pushing up bond prices and boosting the Fund's
absolute returns. Yields rose slightly toward the end of the period, reducing
the Fund's gains.
The Fund's returns relative to the benchmark benefited from its overweight
stake in corporate bonds throughout the period, as corporate bonds outperformed
government issues. We kept the Fund's duration shorter than that of its
benchmark, in anticipation of an economic rebound that we felt could lead to
higher interest rates. That strategy caused the Fund to lag its benchmark as
short-term rates fell during most of the period then helped the Fund regain
some ground when yields rose. On balance, the Fund's short duration reduced its
returns relative to the benchmark.
/1/See Glossary of Terms for additional information.
32
AMSOUTH LIMITED TERM BOND FUND
[CHART]
Value of a $10,000 Investment
AmSouth Limited Merrill Lynch 1-5-Year
Term Bond Fund Government/Corporate
(Class A Shares)* Bond Index
----------------- ----------------------
7/31/1993 $ 9,600 $10,000
8/31/1993 9,726 10,121
9/30/1993 9,757 10,158
10/31/1993 9,762 10,180
11/30/1993 9,739 10,162
12/31/1993 9,780 10,204
1/31/1994 9,875 10,290
2/28/1994 9,777 10,188
3/31/1994 9,643 10,095
4/30/1994 9,571 10,036
5/31/1994 9,565 10,050
6/30/1994 9,564 10,071
7/31/1994 9,675 10,178
8/31/1994 9,699 10,214
9/30/1994 9,639 10,161
10/31/1994 9,644 10,175
11/30/1994 9,593 10,121
12/31/1994 9,604 10,148
1/31/1995 9,746 10,302
2/28/1995 9,918 10,478
3/31/1995 9,986 10,541
4/30/1995 10,085 10,650
5/31/1995 10,331 10,899
6/30/1995 10,388 10,965
7/31/1995 10,414 10,993
8/31/1995 10,485 11,069
9/30/1995 10,543 11,132
10/31/1995 10,632 11,241
11/30/1995 10,740 11,361
12/31/1995 10,825 11,463
1/31/1996 10,911 11,565
2/29/1996 10,839 11,486
3/31/1996 10,793 11,453
4/30/1996 10,780 11,441
5/31/1996 10,789 11,449
6/30/1996 10,864 11,548
7/31/1996 10,905 11,589
8/31/1996 10,918 11,617
9/30/1996 11,019 11,744
10/31/1996 11,148 11,907
11/30/1996 11,245 12,023
12/31/1996 11,225 11,992
1/31/1997 11,264 12,046
2/28/1997 11,279 12,066
3/31/1997 11,220 12,038
4/30/1997 11,334 12,154
5/31/1997 11,410 12,242
6/30/1997 11,494 12,338
7/31/1997 11,695 12,519
8/31/1997 11,648 12,502
9/30/1997 11,774 12,618
10/31/1997 11,887 12,731
11/30/1997 11,902 12,756
12/31/1997 11,988 12,851
1/31/1998 12,138 13,001
2/28/1998 12,120 12,999
3/31/1998 12,150 13,049
4/30/1998 12,205 13,111
5/31/1998 12,283 13,191
6/30/1998 12,354 13,267
7/31/1998 12,390 13,326
8/31/1998 12,587 13,519
9/30/1998 12,809 13,762
10/31/1998 12,816 13,806
11/30/1998 12,810 13,787
12/31/1998 12,843 13,838
1/31/1999 12,892 13,908
2/28/1999 12,786 13,782
3/31/1999 12,880 13,895
4/30/1999 12,900 13,941
5/31/1999 12,835 13,887
6/30/1999 12,869 13,926
7/31/1999 12,887 13,942
8/31/1999 12,914 13,970
9/30/1999 12,998 14,083
10/31/1999 13,007 14,116
11/30/1999 13,036 14,138
12/31/1999 13,018 14,141
1/31/2000 13,005 14,109
2/29/2000 13,098 14,210
3/31/2000 13,194 14,321
4/30/2000 13,200 14,330
5/31/2000 13,236 14,372
6/30/2000 13,402 14,563
7/31/2000 13,479 14,666
8/31/2000 13,587 14,802
9/30/2000 13,700 14,936
10/31/2000 13,740 15,003
11/30/2000 13,888 15,176
12/31/2000 14,088 15,397
1/31/2001 14,290 15,619
2/28/2001 14,396 15,741
3/31/2001 14,501 15,885
4/30/2001 14,531 15,895
5/31/2001 14,595 15,989
6/30/2001 14,626 16,049
7/31/2001 14,843 16,305
8/31/2001 14,935 16,424
9/30/2001 15,154 16,718
10/31/2001 15,305 16,916
11/30/2001 15,232 16,815
12/31/2001 15,206 16,779
1/31/2002 15,238 16,827
2/28/2002 15,348 16,931
3/31/2002 15,208 16,761
4/30/2002 15,398 16,993
5/31/2002 15,493 17,124
6/30/2002 15,625 17,272
7/31/2002 15,799 17,492
8/31/2002 15,910 17,641
9/30/2002 16,070 17,866
10/31/2002 16,058 17,865
11/30/2002 16,012 17,836
12/31/2002 16,192 18,106
1/31/2003 16,211 18,115
2/28/2003 16,333 18,275
3/31/2003 16,363 18,311
4/30/2003 16,379 18,393
5/31/2003 16,487 18,589
6/30/2003 16,509 18,614
7/31/2003 16,356 18,375
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 2/1/89 -0.66% 4.86% 5.04%
Class B Shares** 1/21/99/1/ -2.21% 4.54% 4.53%
Class I Shares 9/2/97/1/ 3.76% 5.86% 5.56%
- --------------------------------------------------------------------------------
*Reflects maximum 4.00% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Limited Term Bond Fund is measured against the
Merrill Lynch 1-5-Year Government/Corporate Bond Index, an unmanaged index
generally representative of the total return of short-term government and
corporate bonds. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management fees. The Fund's performance
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its underlying
securities. 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 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
33
AMSOUTH BOND FUND
PORTFOLIO MANAGERS [GRAPHIC]
Brian B. Sullivan, CFA PORTFOLIO MANAGERS' PERSPECTIVE
Chief Fixed Investment Officer "The AmSouth Bond Fund seeks to take advantage of
changes in relative values in the bond market to pursue
John P. Boston strong returns. We begin with a study of the economic,
Senior Vice President political and financial terrain to determine an outlook for
the various sectors of the bond market. From this outlook
AmSouth Bank the relative value of longer or shorter bonds, corporate
AmSouth Asset Management, Inc. or Government bonds, and callable or non-callable bonds
is determined. Through the active use of high-quality
Brian Sullivan has more than 17 years of fixed investments, we strive to obtain excellent long-term returns."
income investment management experience and holds
an MBA in finance and a bachelor's degree in
economics. John Boston has 14 years of investment
experience as a fixed income manager. He holds a
bachelor's degree in finance and political
science.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund returned 5.04% (Class A Shares at NAV). In comparison, the Fund's
benchmark the Lehman Brothers Government/Credit Bond Index gained 7.12%. The
Lipper Corporate Debt Funds A Rated Average/1/ gained 6.04%.
Q. What factors affected the performance of the Fund?
A. The Fund's absolute returns during the first three-quarters of the period
benefited from declining interest rates, which pushed down bonds' yields and
increased their prices. However, yields during the final three months of the
period rose to roughly where they began the period, and the Fund's absolute
returns suffered from that reversal.
Low-quality bonds were the best-performing sector of the bond market. The
Fund's benchmark includes BBB-rated bonds, whereas the Fund itself only
purchases bonds with credit ratings of A or better. That difference made it
difficult for the Fund to keep pace with the benchmark. The Fund's relative
returns benefited from our decision to over-weight corporate
bonds, however, since those issues outperformed government bonds.
We positioned the Fund's duration shorter than that of the benchmark in
anticipation of rising interest rates. The Fund began the period with a
duration 0.9 years shorter than the benchmark, and ended the period with a
duration 1.1 years shorter than the benchmark. That strategy caused the Fund's
returns to lag the benchmark while yields fell, but helped the Fund to
outperform the benchmark when yields rose. That strategy did not have a large
impact on the Fund's relative returns for the 12-month period as a whole.++
/1/See Glossary of Terms for additional information.
++ The Fund's portfolio composition is subject to change.
34
AMSOUTH BOND FUND
[CHART]
Value of a $10,000 Investment
Lehman Brothers
AmSouth Bond Fund Government/Credit
(Class A Shares)* Bond Index
----------------- -----------------
7/31/1993 $ 9,600 $10,000
8/31/1993 9,770 10,230
9/30/1993 9,813 10,265
10/31/1993 9,830 10,307
11/30/1993 9,770 10,191
12/31/1993 9,801 10,235
1/31/1994 9,924 10,389
2/28/1994 9,763 10,163
3/31/1994 9,566 9,915
4/30/1994 9,484 9,833
5/31/1994 9,491 9,814
6/30/1994 9,462 9,791
7/31/1994 9,622 9,987
8/31/1994 9,638 9,991
9/30/1994 9,480 9,840
10/31/1994 9,460 9,829
11/30/1994 9,430 9,811
12/31/1994 9,484 9,876
1/31/1995 9,651 10,066
2/28/1995 9,889 10,299
3/31/1995 9,939 10,368
4/30/1995 10,084 10,513
5/31/1995 10,509 10,953
6/30/1995 10,588 11,041
7/31/1995 10,551 10,998
8/31/1995 10,670 11,139
9/30/1995 10,765 11,252
10/31/1995 10,918 11,418
11/30/1995 11,090 11,606
12/31/1995 11,230 11,777
1/31/1996 11,307 11,850
2/29/1996 11,103 11,598
3/31/1996 10,980 11,501
4/30/1996 10,879 11,422
5/31/1996 10,851 11,403
6/30/1996 10,988 11,555
7/31/1996 11,012 11,582
8/31/1996 10,958 11,554
9/30/1996 11,158 11,759
10/31/1996 11,449 12,033
11/30/1996 11,678 12,255
12/31/1996 11,517 12,118
1/31/1997 11,511 12,133
2/28/1997 11,521 12,158
3/31/1997 11,347 12,014
4/30/1997 11,532 12,190
5/31/1997 11,635 12,303
6/30/1997 11,773 12,451
7/31/1997 12,165 12,832
8/31/1997 12,000 12,688
9/30/1997 12,206 12,887
10/31/1997 12,410 13,094
11/30/1997 12,460 13,163
12/31/1997 12,585 13,301
1/31/1998 12,769 13,488
2/28/1998 12,719 13,461
3/31/1998 12,762 13,502
4/30/1998 12,808 13,570
5/31/1998 12,934 13,716
6/30/1998 13,055 13,856
7/31/1998 13,071 13,867
8/31/1998 13,375 14,138
9/30/1998 13,769 14,542
10/31/1998 13,722 14,439
11/30/1998 13,706 14,525
12/31/1998 13,741 14,561
1/31/1999 13,797 14,664
2/28/1999 13,506 14,316
3/31/1999 13,578 14,387
4/30/1999 13,600 14,423
5/31/1999 13,449 14,274
6/30/1999 13,425 14,229
7/31/1999 13,409 14,190
8/31/1999 13,377 14,178
9/30/1999 13,487 14,306
10/31/1999 13,504 14,343
11/30/1999 13,485 14,335
12/31/1999 13,389 14,248
1/31/2000 13,377 14,244
2/29/2000 13,577 14,423
3/31/2000 13,807 14,631
4/30/2000 13,735 14,560
5/31/2000 13,714 14,547
6/30/2000 13,983 14,844
7/31/2000 14,094 15,001
8/31/2000 14,290 15,213
9/30/2000 14,364 15,270
10/31/2000 14,443 15,366
11/30/2000 14,701 15,628
12/31/2000 15,004 15,937
1/31/2001 15,183 16,204
2/28/2001 15,320 16,371
3/31/2001 15,413 16,446
4/30/2001 15,263 16,323
5/31/2001 15,315 16,417
6/30/2001 15,386 16,496
7/31/2001 15,733 16,907
8/31/2001 15,898 17,124
9/30/2001 16,160 17,281
10/31/2001 16,468 17,720
11/30/2001 16,225 17,429
12/31/2001 16,115 17,292
1/31/2002 16,193 17,419
2/28/2002 16,340 17,567
3/31/2002 16,028 17,210
4/30/2002 16,386 17,544
5/31/2002 16,503 17,706
6/30/2002 16,717 17,856
7/31/2002 17,021 18,071
8/31/2002 17,298 18,476
9/30/2002 17,680 18,874
10/31/2002 17,540 18,693
11/30/2002 17,447 18,704
12/31/2002 17,833 19,200
1/31/2003 17,803 19,199
2/28/2003 18,064 19,541
3/31/2003 18,039 19,516
4/30/2003 18,118 19,724
5/31/2003 18,461 20,285
6/30/2003 18,426 20,204
7/31/2003 17,879 19,357
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
expensespaid by shareholders investing in Class A Shares, Class B Shares and
Class I Shares.
Average Annual Total Return
- ---------------------------------------------------------------------------
As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- ---------------------------------------------------------------------------
Class A Shares* 12/1/88 0.81% 5.60% 5.98%
Class B Shares** 9/16/97/1/ -0.68% 5.30% 5.59%
Class I Shares 9/2/97/1/ 5.19% 6.60% 6.50%
- ---------------------------------------------------------------------------
*Reflects maximum 4.00% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Bond Fund is measured against the Lehman
Brothers Government/Credit Bond Index, an unmanaged broad-based index
representative of the total return of long-term government and corporate
bonds. The index does not reflect the deduction of fees associated with a
mutual fund, such as investment management fees. The Fund's performance does
reflect the deduction of fees for these value-added services. Investors cannot
invest directly in an index, although they can invest in its underlying
securities. 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.
1Performance for the Class B and Class I Shares, which commenced operations 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 adjusted to reflect the higher
12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
35
AMSOUTH MUNICIPAL BOND FUND+
PORTFOLIO MANAGER [GRAPHIC]
Dorothy E. Thomas, CFA
Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE
"With the AmSouth Municipal Bond Fund, we concentrate
AmSouth Bank on high-quality municipal bonds--those in the top three
AmSouth Asset Management, Inc. rating classes, or of comparable quality. As with other
AmSouth bond funds, we manage our bond portfolios to
Dorothy Thomas has more than 20 years of take advantage of changes in market interest rates over the
experience as an investment portfolio manager. full market cycle."
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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund delivered a total return of 2.96% (Class A Shares at NAV) during
the period. In comparison, the Fund's benchmark the Merrill Lynch 1-12-Year
Municipal Bond Index gained 3.35%. The Lipper General Municipal Debt Funds
Average/1/ gained 2.38%.
Q. What factors affected the Fund during the period?
A. The Fed lowered short-term interest rates in November and June, for a total
reduction of 0.75 percentage points. Investors' anticipation of those cuts,
combined with weak economic data, caused bond yields to fall during most of the
period. Bond prices rose as a result, boosting the Fund's absolute returns.
Yields then rose sharply from the middle of June through the end of the period,
reducing the Fund's gains.
We positioned the Fund defensively throughout the period, maintaining a
portfolio of high-quality securities with an average duration shorter than that
of the benchmark. We adopted that strategy because we expected an economic
recovery to cause an increase in bond yields. That approach caused returns to
lag the benchmark during most of the period, as yields fell and lower-quality
bonds led the market. However, as rates rose sharply, the Fund's defensive
posture helped to boost its relative returns during the final seven weeks of
the period.
/1/See Glossary of Terms for additional information.
+ The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, the federal alternative minimum tax.
36
AMSOUTH MUNICIPAL BOND FUND+
[CHART]
Value of a $10,000 Investment
AmSouth Municipal Merrill Lynch
Bond Fund 1-12-Year Municipal
(Class A Shares)* Bond Index
---------------- -------------------
7/31/1993 $ 9,596 $10,000
8/31/1993 9,708 10,148
9/30/1993 9,798 10,228
10/31/1993 9,820 10,307
11/30/1993 9,764 10,216
12/31/1993 9,899 10,377
1/31/1994 9,944 10,480
2/28/1994 9,798 10,248
3/31/1994 9,551 9,975
4/30/1994 9,585 10,018
5/31/1994 9,607 10,063
6/30/1994 9,641 10,054
7/31/1994 9,764 10,269
8/31/1994 9,787 10,295
9/30/1994 9,719 10,178
10/31/1994 9,652 10,110
11/30/1994 9,540 9,983
12/31/1994 9,641 10,114
1/31/1995 9,719 10,262
2/28/1995 9,910 10,537
3/31/1995 10,000 10,588
4/30/1995 10,034 10,630
5/31/1995 10,213 10,935
6/30/1995 10,224 10,914
7/31/1995 10,348 10,998
8/31/1995 10,415 11,114
9/30/1995 10,426 11,124
10/31/1995 10,550 11,217
11/30/1995 10,606 11,403
12/31/1995 10,640 11,467
1/31/1996 10,685 11,607
2/29/1996 10,718 11,496
3/31/1996 10,606 11,488
4/30/1996 10,584 11,489
5/31/1996 10,572 11,490
6/30/1996 10,640 11,557
7/31/1996 10,718 11,666
8/31/1996 10,763 11,676
9/30/1996 10,808 11,781
10/31/1996 10,898 11,894
11/30/1996 11,033 12,044
12/31/1996 11,010 12,028
1/31/1997 10,988 12,066
2/28/1997 11,066 12,150
3/31/1997 10,943 12,023
4/30/1997 10,965 12,071
5/31/1997 11,100 12,243
6/30/1997 11,223 12,368
7/31/1997 11,432 12,643
8/31/1997 11,335 12,541
9/30/1997 11,468 12,683
10/31/1997 11,511 12,734
11/30/1997 11,534 12,786
12/31/1997 11,690 12,953
1/31/1998 11,786 13,061
2/28/1998 11,775 13,083
3/31/1998 11,764 13,100
4/30/1998 11,698 13,040
5/31/1998 11,876 13,230
6/30/1998 11,906 13,266
7/31/1998 11,924 13,308
8/31/1998 12,126 13,513
9/30/1998 12,263 13,659
10/31/1998 12,269 13,676
11/30/1998 12,283 13,696
12/31/1998 12,324 13,765
1/31/1999 12,493 13,956
2/28/1999 12,396 13,872
3/31/1999 12,371 13,861
4/30/1999 12,411 13,900
5/31/1999 12,313 13,823
6/30/1999 12,097 13,626
7/31/1999 12,199 13,743
8/31/1999 12,157 13,727
9/30/1999 12,173 13,747
10/31/1999 12,077 13,672
11/30/1999 12,172 13,796
12/31/1999 12,118 13,764
1/31/2000 12,051 13,716
2/29/2000 12,146 13,815
3/31/2000 12,321 13,993
4/30/2000 12,234 13,942
5/31/2000 12,185 13,902
6/30/2000 12,470 14,226
7/31/2000 12,640 14,417
8/31/2000 12,798 14,600
9/30/2000 12,735 14,547
10/31/2000 12,828 14,679
11/30/2000 12,896 14,749
12/31/2000 13,187 15,090
1/31/2001 13,374 15,315
2/28/2001 13,403 15,334
3/31/2001 13,498 15,476
4/30/2001 13,367 15,303
5/31/2001 13,503 15,481
6/30/2001 13,560 15,591
7/31/2001 13,698 15,788
8/31/2001 13,890 16,058
9/30/2001 13,893 16,035
10/31/2001 14,005 16,214
11/30/2001 13,860 15,975
12/31/2001 13,781 15,867
1/31/2002 13,976 16,157
2/28/2002 14,144 16,386
3/31/2002 13,845 16,003
4/30/2002 14,153 16,409
5/31/2002 14,226 16,508
6/30/2002 14,355 16,683
7/31/2002 14,526 16,922
8/31/2002 14,670 17,138
9/30/2002 14,899 17,500
10/31/2002 14,710 17,199
11/30/2002 14,661 17,090
12/31/2002 14,969 17,529
1/31/2003 14,926 17,399
2/28/2003 15,120 17,707
3/31/2003 15,085 17,695
4/30/2003 15,165 17,817
5/31/2003 15,422 18,280
6/30/2003 15,363 18,171
7/31/2003 14,956 17,489
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 7/1/97/1/ -1.14% 3.79% 4.11%
Class B Shares** 2/3/99/2/ -2.78% 3.44% 3.61%
Class I Shares 9/2/97/2/ 3.21% 4.77% 4.62%
- --------------------------------------------------------------------------------
*Reflects maximum 4.00% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above represents a comparison of a hypothetical $10,000
investment from 7/31/93 to 7/31/03 in the indicated share class versus a
similar investment in the Fund's benchmark. The performance information
presented above assumes the reinvestment of dividends and capital gains and
does not reflect the deduction of taxes that a shareholder would pay on
distributions and redemptions.
The performance of the AmSouth Municipal Bond Fund is measured against the
Merrill Lynch 1-12-Year Municipal Bond Index, which is an unmanaged index that
is generally representative of municipal bonds with intermediate maturities.
The index does reflect the deduction of fees associated with a mutual fund,
such as investment management fees. The Fund's performance does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
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 common and collective trust funds ("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 commingled for periods dating back to 7/31/93 and prior to
the Fund's commencement of operations on 7/1/97, as adjusted to reflect the
expenses associated with the Funds. 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 account had been registered, the commingled
accounts' performance may have been adversely affected.
/2/Performance for the Class B and Class I Shares, which commenced operations
on 2/3/99 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
37
AMSOUTH FLORIDA TAX-EXEMPT FUND+
Portfolio Manager [GRAPHIC]
Dorothy E. Thomas, CFA
Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Florida Tax-Exempt Fund has a portfolio
AmSouth Bank of high-quality issues in a fast-growing state with a strong
AmSouth Asset Management, Inc. economic base. Interest on the bonds is exempt from both
Federal income tax and the Florida intangibles tax. This
Dorothy Thomas has more than 20 years of portfolio is managed to benefit from anticipated interest rate
experience as an investment portfolio manager. moves."
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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund gained 2.58% (Class A Shares at NAV) during the period. In
comparison, the Fund's benchmark the Merrill Lynch 1-12-Year Municipal Bond
Index gained 3.35%. The Lipper Florida Intermediate Municipal Debt Funds
Average/1/ gained 1.93%.
Q. What factors affected the Fund's performance during the period?
A. The Fed twice lowered short-term interest rates in response to weak economic
data, for a total reduction of 0.75 percentage points. Yields on Florida
municipal bonds and other fixed-income securities fell in that environment,
boosting the Fund's returns. However, yields rebounded sharply during the final
month- and-a-half of the period, and as a result, the Fund's returns declined.
The Fund began the period with a duration shorter than that of its benchmark.
We reduced the duration further during the first half of the period and then
maintained that short duration. We expected an economic recovery that would
boost bond yields. That defensive posture caused the Fund to lag its benchmark
while yields fell during most of the period. Our defensive strategy contributed
to above-average performance when yields rose during June and July.
/1/See Glossary of Terms for additional information.
+ The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, the federal alternative minimum tax.
38
AMSOUTH FLORIDA TAX-EXEMPT FUND+
[CHART]
Value of a $10,000 Investment
AmSouth Florida Merrill Lynch
Tax-Exempt Fund 1-12-Year Municipal
(Class A Shares)* Bond Index
--------------- -------------------
9/30/1994 $ 9,597 $10,000
10/31/1994 9,530 9,933
11/30/1994 9,414 9,808
12/31/1994 9,497 9,936
1/31/1995 9,633 10,083
2/28/1995 9,841 10,352
3/31/1995 9,915 10,403
4/30/1995 9,950 10,444
5/31/1995 10,142 10,744
6/30/1995 10,149 10,723
7/31/1995 10,223 10,806
8/31/1995 10,288 10,919
9/30/1995 10,304 10,929
10/31/1995 10,390 11,020
11/30/1995 10,476 11,204
12/31/1995 10,545 11,266
1/31/1996 10,637 11,403
2/29/1996 10,627 11,295
3/31/1996 10,512 11,286
4/30/1996 10,518 11,288
5/31/1996 10,515 11,289
6/30/1996 10,553 11,354
7/31/1996 10,655 11,462
8/31/1996 10,655 11,471
9/30/1996 10,722 11,575
10/31/1996 10,804 11,685
11/30/1996 10,938 11,833
12/31/1996 10,925 11,817
1/31/1997 10,943 11,854
2/28/1997 11,020 11,937
3/31/1997 10,910 11,812
4/30/1997 10,944 11,860
5/31/1997 11,069 12,028
6/30/1997 11,163 12,151
7/31/1997 11,389 12,422
8/31/1997 11,297 12,321
9/30/1997 11,416 12,460
10/31/1997 11,468 12,511
11/30/1997 11,504 12,562
12/31/1997 11,640 12,726
1/31/1998 11,722 12,832
2/28/1998 11,725 12,854
3/31/1998 11,736 12,871
4/30/1998 11,673 12,811
5/31/1998 11,858 12,998
6/30/1998 11,876 13,034
7/31/1998 11,897 13,075
8/31/1998 12,083 13,276
9/30/1998 12,204 13,419
10/31/1998 12,199 13,436
11/30/1998 12,225 13,456
12/31/1998 12,273 13,524
1/31/1999 12,424 13,711
2/28/1999 12,330 13,629
3/31/1999 12,307 13,618
4/30/1999 12,347 13,657
5/31/1999 12,254 13,581
6/30/1999 12,079 13,387
7/31/1999 12,142 13,502
8/31/1999 12,115 13,487
9/30/1999 12,108 13,506
10/31/1999 12,053 13,433
11/30/1999 12,146 13,555
12/31/1999 12,109 13,523
1/31/2000 12,040 13,476
2/29/2000 12,169 13,573
3/31/2000 12,326 13,748
4/30/2000 12,266 13,697
5/31/2000 12,211 13,659
6/30/2000 12,474 13,977
7/31/2000 12,626 14,164
8/31/2000 12,771 14,344
9/30/2000 12,709 14,292
10/31/2000 12,815 14,422
11/30/2000 12,870 14,491
12/31/2000 13,122 14,826
1/31/2001 13,252 15,047
2/28/2001 13,292 15,065
3/31/2001 13,385 15,204
4/30/2001 13,264 15,035
5/31/2001 13,369 15,210
6/30/2001 13,437 15,318
7/31/2001 13,568 15,512
8/31/2001 13,763 15,776
9/30/2001 13,754 15,754
10/31/2001 13,897 15,929
11/30/2001 13,768 15,695
12/31/2001 13,708 15,589
1/31/2002 13,886 15,873
2/28/2002 14,037 16,099
3/31/2002 13,764 15,723
4/30/2002 14,042 16,122
5/31/2002 14,127 16,218
6/30/2002 14,247 16,390
7/31/2002 14,434 16,626
8/31/2002 14,558 16,838
9/30/2002 14,802 17,193
10/31/2002 14,598 16,898
11/30/2002 14,562 16,790
12/31/2002 14,863 17,222
1/31/2003 14,813 17,094
2/28/2003 14,998 17,396
3/31/2003 14,959 17,385
4/30/2003 15,055 17,504
5/31/2003 15,302 17,959
6/30/2003 15,243 17,852
7/31/2003 14,806 17,182
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 July 31, 2003 Inception Date 1 Year 5 Year Since Inception
- -----------------------------------------------------------------------------
Class A Shares* 9/30/94 -1.53% 3.61% 4.54%
Class B Shares** 3/16/99/1/ -3.05% 3.29% 4.10%
Class I Shares 9/2/97/1/ 2.72% 4.61% 5.13%
- ------------------------------------------------------------------------------
*Reflects maximum 4.00% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
9/30/94 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Florida Tax-Exempt Fund is measured against the
Merrill Lynch 1-12-Year Municipal Bond Index, which is an unmanaged index
generally representative of municipal bonds with intermediate maturities. The
index does not reflect the deduction of fees associated with a mutual fund,
such as investment management fees. The Fund's performance does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
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 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
39
AMSOUTH TENNESSEE TAX-EXEMPT FUND+
PORTFOLIO MANAGER [GRAPHIC]
Dorothy E. Thomas, CFA
Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE
"The AmSouth Tennessee Tax-Exempt Fund generates
AmSouth Bank income that is exempt from both Federal and the state of
AmSouth Asset Management, Inc. Tennessee income tax. The Fund only invests in securities in
the top three rating classes, or of comparable quality. As
Dorothy Thomas has more than 20 with the other AmSouth bond funds, we manage our bond
years of experience as an portfolios to take advantage of changes in market interest
investment portfolio manager. She rates over the full market cycle."
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.
[GRAPHIC]
Q&A
Q. How did the Fund perform during the 12-month period ended July 31, 2003?
A. The Fund's total return was 2.29% (Class A Shares at NAV). In comparison,
the Fund's benchmark the Merrill Lynch 1-12-Year Municipal Bond Index gained
3.35%. The Lipper Other States Intermediate Municipal Debt Funds Average/1/
gained 2.40%.
Q. What factors affected the Fund's performance during the period?
A. The Fed cut short-term interest rates twice during the period, for a total
reduction of 0.75 percentage points. Those rate cuts combined with ongoing
economic weakness resulted with yields on municipal issues declining during
much of the period. Falling yields led to higher prices on municipal bonds,
boosting the Fund's returns. The environment changed in mid-June, however, as
investors anticipating an economic recovery sold municipal bonds and other
fixed-income securities. Therefore, yields rose dramatically, pushing down bond
prices and hurting the Fund's absolute returns.
We positioned the Fund's duration shorter than that of the benchmark, because
we expected an economic recovery that would cause an increase in bond yields.
However, yields did not rise until mid-June, causing the Fund to lag its
benchmark for most of the period. Yields did rise dramatically during the final
seven weeks of the period, and the Fund benefited from its defensive posture.
/1/See Glossary of Terms for additional information.
+The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, the federal alternative minimum tax.
40
AMSOUTH TENNESSEE TAX-EXEMPT FUND+
[CHART]
Value of a $10,000 Investment
AmSouth Tennessee Merrill Lynch 1-12-
Tax-Exempt Fund Year Municipal
(Class A Shares)* Bond Index
----------------- ------------------
7/31/1993 $ 9,597 $10,000
8/31/1993 9,785 10,148
9/30/1993 9,916 10,228
10/31/1993 9,906 10,307
11/30/1993 9,794 10,216
12/31/1993 9,972 10,377
1/31/1994 10,047 10,480
2/28/1994 9,794 10,248
3/31/1994 9,162 9,975
4/30/1994 9,205 10,018
5/31/1994 9,268 10,063
6/30/1994 9,209 10,054
7/31/1994 9,359 10,269
8/31/1994 9,394 10,295
9/30/1994 9,266 10,178
10/31/1994 9,111 10,110
11/30/1994 8,945 9,983
12/31/1994 9,117 10,114
1/31/1995 9,349 10,262
2/28/1995 9,578 10,537
3/31/1995 9,656 10,588
4/30/1995 9,653 10,630
5/31/1995 9,879 10,935
6/30/1995 9,778 10,914
7/31/1995 9,826 10,998
8/31/1995 9,942 11,114
9/30/1995 9,987 11,124
10/31/1995 10,105 11,217
11/30/1995 10,251 11,403
12/31/1995 10,338 11,467
1/31/1996 10,406 11,607
2/29/1996 10,299 11,496
3/31/1996 10,132 11,488
4/30/1996 10,076 11,489
5/31/1996 10,050 11,490
6/30/1996 10,127 11,557
7/31/1996 10,194 11,666
8/31/1996 10,157 11,676
9/30/1996 10,256 11,781
10/31/1996 10,367 11,894
11/30/1996 10,550 12,044
12/31/1996 10,482 12,028
1/31/1997 10,487 12,066
2/28/1997 10,552 12,150
3/31/1997 10,387 12,023
4/30/1997 10,434 12,071
5/31/1997 10,568 12,243
6/30/1997 10,647 12,368
7/31/1997 10,932 12,643
8/31/1997 10,806 12,541
9/30/1997 10,940 12,683
10/31/1997 10,998 12,734
11/30/1997 11,035 12,786
12/31/1997 11,229 12,953
1/31/1998 11,340 13,061
2/28/1998 11,304 13,083
3/31/1998 11,272 13,100
4/30/1998 11,161 13,040
5/31/1998 11,362 13,230
6/30/1998 11,360 13,266
7/31/1998 11,371 13,308
8/31/1998 11,561 13,513
9/30/1998 11,694 13,659
10/31/1998 11,691 13,676
11/30/1998 11,699 13,696
12/31/1998 11,707 13,765
1/31/1999 11,853 13,956
2/28/1999 11,743 13,872
3/31/1999 11,728 13,861
4/30/1999 11,759 13,900
5/31/1999 11,652 13,823
6/30/1999 11,450 13,626
7/31/1999 11,494 13,743
8/31/1999 11,433 13,727
9/30/1999 11,445 13,747
10/31/1999 11,338 13,672
11/30/1999 11,431 13,796
12/31/1999 11,347 13,764
1/31/2000 11,288 13,716
2/29/2000 11,381 13,815
3/31/2000 11,538 13,993
4/30/2000 11,466 13,942
5/31/2000 11,408 13,902
6/30/2000 11,677 14,226
7/31/2000 11,819 14,417
8/31/2000 11,959 14,600
9/30/2000 11,885 14,547
10/31/2000 11,997 14,679
11/30/2000 12,061 14,749
12/31/2000 12,329 15,090
1/31/2001 12,440 15,315
2/28/2001 12,462 15,334
3/31/2001 12,549 15,476
4/30/2001 12,389 15,303
5/31/2001 12,500 15,481
6/30/2001 12,562 15,591
7/31/2001 12,711 15,788
8/31/2001 12,873 16,058
9/30/2001 12,867 16,035
10/31/2001 12,975 16,214
11/30/2001 12,805 15,975
12/31/2001 12,749 15,867
1/31/2002 12,931 16,157
2/28/2002 13,081 16,386
3/31/2002 12,783 16,003
4/30/2002 13,085 16,409
5/31/2002 13,160 16,508
6/30/2002 13,283 16,683
7/31/2002 13,458 16,922
8/31/2002 13,599 17,138
9/30/2002 13,800 17,500
10/31/2002 13,617 17,199
11/30/2002 13,542 17,090
12/31/2002 13,823 17,529
1/31/2003 13,766 17,399
2/28/2003 13,925 17,707
3/31/2003 13,894 17,695
4/30/2003 13,953 17,817
5/31/2003 14,197 18,280
6/30/2003 14,145 18,171
7/31/2003 13,765 17,489
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 July 31, 2003 Inception Date 1 Year 5 Year 10 Year
- ---------------------------------------------------------------------
Class A Shares* 3/28/94/1/ -1.79% 3.05% 3.25%
Class B Shares** 2/24/98/2/ -3.42% 2.79% 2.81%
Class I Shares 10/3/97/2/ 2.47% 4.07% 3.78%
- ---------------------------------------------------------------------
*Reflects maximum 4.00% sales charge.
**Reflects applicable contingent deferred sales charge (maximum 5.00%).
The chart and table above compare a hypothetical $10,000 investment from
7/31/93 to 7/31/03 in the indicated share class versus a similar investment in
the Fund's benchmark. The performance information presented above assumes the
reinvestment of dividends and capital gains and does not reflect the deduction
of taxes that a shareholder would pay on distributions and redemptions.
The performance of the AmSouth Tennessee Tax-Exempt Fund is measured against
the Merrill Lynch 1-12-Year Municipal Bond Index, which is unmanaged and is
generally representative of municipal bonds with intermediate maturities. The
index does not reflect the deduction of fees associated with a mutual fund,
such as investment management fees. The Fund's performance does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
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/The ISG Tennessee Tax-Exempt Fund commenced operations on 3/28/94, 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 commingled
accounts for periods dating back to 7/31/93, and prior to the mutual fund's
commencement of operations, as adjusted 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, the commingled accounts'
performance may have been adversely affected.
/2/Performance for the Class B and Trust Shares, which commenced operations on
2/24/98 and 10/3/97, 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 adjusted to reflect
the higher 12b-1 fees and the contingent deferred sales charge (CDSC).
Effective 12/1/02, the Trust Shares were renamed the Class I Shares.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
41
THE AMSOUTH MONEY MARKET FUNDS
PORTFOLIO MANAGER
John Mark McKenzie
Senior Vice President
AmSouth Bank
AmSouth Asset Management, Inc.
John Mark McKenzie has been in investment management since
1981. He serves as portfolio manager for five AmSouth money
market funds: the U.S. Treasury, Treasury Reserve, Prime, Income Fund. He holds a bachelor's degree in banking and
Institutional Prime Obligations and Tax-Exempt. In finance from the University of Mississippi, and earned his
addition, he co-manages the AmSouth Government law degree from the University of Mississippi School of Law.
[GRAPHIC]
Q&A
Q. What factors affected the performance of the Funds during the 12-month
period ended July 31, 2003?
A. The Fed lowered interest rates twice, for a total reduction of 75 basis
points. Those moves pushed down yields on short-term bonds throughout the
period. All sectors of the short-term fixed-income markets saw their yields
decline significantly in that environment.
Falling yields pushed up prices of the securities in the Funds, but reduced the
yield we were able to capture for shareholders. We compensated for the decline
in yields by extending the Funds' average maturities, because bonds with
slightly longer maturities offered more attractive yields and helped preserve
income levels. Those moves were part of our ongoing strategy to emphasize
current income. We maintained very high-quality portfolios throughout the
period.
.. As of July 31, 2003, the Prime Obligations Fund's average maturity was 62
days, compared with 51 days on January 31, 2003 and 31 days on July 31,
2002.++
.. As of July 31, 2003, the U.S. Treasury Fund's average maturity was 50 days,
compared with 55 days on January 31, 2003 and 49 days on July 31, 2002.++
.. As of July 31, 2003, the Tax-Exempt Fund's+ average maturity was 36 days,
compared with 51 days on January 31, 2003 and 65 days on July 31, 2002.++
.. As of July 31, 2003, the Treasury Reserve Fund's average maturity was 55
days, compared with 47 days on January 31, 2003 and 35 days on July 31,
2002.++
.. As of July 31, 2003, the Institutional Prime Obligations Fund's average
maturity was 56 days, compared with 55 days on January 31, 2003 and 31 days
on July 31, 2002.++
+The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, the federal alternative minimum tax.
++The composition of the Fund's holdings is subject to change.
Investments in the Prime, the U.S. Treasury, the Tax-Exempt, the Treasury
Reserve 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.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
42
VALUE FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS (97.5%)
Aerospace/Defense (5.5%)
Boeing Co.............................. 404,900 $ 13,410
Lockheed Martin Corp................... 53,300 2,790
Raytheon Co............................ 259,954 7,981
United Technologies Corp............... 67,752 5,097
---------
29,278
---------
Apparel (2.2%)
Liz Claiborne, Inc..................... 68,455 2,357
Nike, Inc., Class B.................... 132,800 6,871
V.F. Corp.............................. 69,600 2,654
---------
11,882
---------
Applications Software (0.6%)
Reynolds & Reynolds Co., Class A....... 107,134 3,098
---------
Banking (6.3%)
Bank of America Corp................... 151,428 12,502
First Tennessee National Corp.......... 155,400 6,667
National City Corp..................... 351,827 11,592
SunTrust Banks, Inc.................... 46,988 2,862
---------
33,623
---------
Chemicals -- Specialty (0.6%)
Dow Chemical Co........................ 90,723 3,203
---------
Computer Hardware (4.5%)
Hewlett-Packard Co..................... 875,248 18,529
IBM Corp............................... 66,635 5,414
---------
23,943
---------
Computer Software & Services (2.2%)
Computer Associates International, Inc. 249,900 6,360
EMC Corp. (b).......................... 500,000 5,320
---------
11,680
---------
Consumer Goods (0.5%)
Leggett & Platt, Inc................... 112,383 2,488
---------
Distribution Wholesale (0.7%)
Genuine Parts Co....................... 111,900 3,462
---------
Diversified Manufacturing (2.7%)
Honeywell International, Inc........... 154,118 4,358
Illinois Tool Works, Inc............... 25,552 1,780
Tyco International, Ltd................ 444,493 8,268
---------
14,406
---------
Entertainment (0.5%)
Walt Disney Co......................... 122,670 2,689
---------
Financial Services (23.0%)
Bear Stearns Cos., Inc................. 111,900 7,497
CIT Group, Inc......................... 565,160 15,757
Citigroup, Inc......................... 692,480 31,022
FleetBoston Financial Corp............. 193,154 6,005
Freddie Mac............................ 137,835 6,733
Goldman Sachs Group, Inc............... 141,400 12,322
J.P. Morgan Chase & Co................. 350,919 12,300
Lincoln National Corp.................. 283,300 10,578
Prudential Financial, Inc.............. 100,184 3,565
Washington Mutual, Inc................. 412,961 16,303
---------
122,082
---------
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Food Distributors & Wholesalers (1.6%)
Costco Wholesale Corp. (b)................ 230,000 $ 8,522
---------
Forest & Paper Products (1.0%)
International Paper Co.................... 60,000 2,347
MeadWestvaco Corp......................... 128,149 3,103
---------
5,450
---------
Gaming (0.4%)
Park Place Entertainment Corp. (b)........ 215,052 1,925
---------
Insurance (10.3%)
ACE Ltd................................... 168,229 5,550
AFLAC, Inc................................ 323,600 10,380
American International Group, Inc......... 200,000 12,839
MetLife, Inc.............................. 288,771 8,005
St. Paul Cos., Inc........................ 145,103 5,103
Travelers Property Casualty Corp., Class B 495,209 7,993
XL Capital, Ltd........................... 63,000 5,009
---------
54,879
---------
Machinery & Equipment (0.9%)
Black & Decker Corp....................... 118,600 4,846
---------
Medical Products (0.8%)
Becton, Dickinson & Co.................... 111,510 4,085
---------
Metals & Mining (2.1%)
Alcoa, Inc................................ 410,000 11,386
---------
Multimedia (4.3%)
AOL Time Warner, Inc. (b)................. 569,052 8,780
Viacom, Inc., Class B (b)................. 325,000 14,144
---------
22,924
---------
Oil & Gas Exploration, Production, &
Services (5.5%)
Anadarko Petroleum Corp................... 112,500 4,928
Burlington Resources, Inc................. 35,700 1,648
ChevronTexaco Corp........................ 140,265 10,115
ConocoPhillips............................ 70,998 3,716
Halliburton Co............................ 264,187 5,857
Kerr-McGee Corp........................... 70,988 3,123
---------
29,387
---------
Pharmaceuticals (1.3%)
Bristol-Myers Squibb Co................... 272,806 7,148
---------
Real Estate (0.5%)
Simon Property Group, Inc................. 69,100 2,926
---------
Restaurants (0.4%)
McDonald's Corp........................... 90,224 2,076
---------
Retail (4.0%)
Home Depot, Inc........................... 428,245 13,361
Limited Brands............................ 334,881 5,596
Office Depot, Inc. (b).................... 147,024 2,441
---------
21,398
---------
Semiconductors (1.1%)
National Semiconductor Corp. (b).......... 137,300 3,068
Texas Instruments, Inc.................... 139,151 2,626
---------
5,694
---------
Continued
43
VALUE FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
---------- ---------
COMMON STOCKS, continued
Telecommunications -- Equipment
(1.4%)
Harris Corp............................. 224,798 $ 7,277
---------
Transportation & Shipping (1.4%)
FedEx Corp.............................. 115,900 7,463
---------
Travel (1.4%)
Carnival Corp........................... 216,367 7,424
---------
Utilities -- Electric & Gas (6.1%)
American Electric Power Co., Inc........ 250,694 7,035
Constellation Energy Group.............. 105,472 3,523
Dominion Resources, Inc................. 94,746 5,694
Duke Energy Corp........................ 337,220 5,918
Entergy Corp............................ 135,400 6,975
TXU Corp................................ 162,838 3,284
---------
32,429
---------
Utilities -- Telecommunications (3.7%)
BellSouth Corp.......................... 222,666 5,671
SBC Communications, Inc................. 313,703 7,328
Sprint Corp............................. 198,998 2,810
Verizon Communications, Inc............. 111,466 3,886
---------
19,695
---------
TOTAL COMMON STOCKS..................... 518,768
---------
INVESTMENT COMPANIES (2.4%)
AmSouth Prime Money Market Fund......... 5,073,954 5,074
AmSouth U.S. Treasury Money Market
Fund................................... 7,757,648 7,758
---------
TOTAL INVESTMENT
COMPANIES.............................. 12,832
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (14.8%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 78,576,265 78,576
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 78,576
---------
TOTAL INVESTMENTS
(Cost $521,595) (a) -- 114.70%......... 610,176
Liabilities in excess of other assets --
(14.70)%............................... (77,955)
---------
NET ASSETS -- 100.0%.................... $ 532,221
=========
- --------
(a)Cost for federal income tax purposes is $530,544. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $83,269
Unrealized depreciation.... (3,637)
-------
Net unrealized appreciation $79,632
=======
(b)Represents non-income producing security.
See notes to financial statements.
SELECT EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
--------- -------
COMMON STOCKS (98.4%)
Consumer Discretionary (31.8%)
Gannett Co., Inc........................ 35,500 $ 2,727
Home Depot, Inc......................... 137,900 4,302
Lee Enterprises, Inc.................... 45,600 1,693
McDonald's Corp......................... 208,900 4,807
Snap-on, Inc............................ 61,400 1,739
Walt Disney Co.......................... 144,400 3,165
Washington Post Co., Class B............ 700 473
-------
18,906
-------
Consumer Staples (27.2%)
Coca-Cola Co............................ 3,400 153
Del Monte Foods Co. (b)................. 17,596 154
General Mills, Inc...................... 62,500 2,867
Gillette Co............................. 88,900 2,735
H.J. Heinz Co........................... 81,600 2,779
J.M. Smucker Co......................... 40,778 1,633
Kimberly-Clark Corp..................... 57,300 2,773
SYSCO Corp.............................. 101,200 3,049
-------
16,143
-------
Health Care (6.6%)
Bristol-Myers Squibb Co................. 58,700 1,538
Pfizer, Inc............................. 71,520 2,386
-------
3,924
-------
Industrials (28.6%)
American Power Conversion Corp. (b)..... 165,300 2,881
Automatic Data Processing, Inc.......... 114,400 4,242
Briggs & Stratton Corp.................. 33,800 1,861
Pitney Bowes, Inc....................... 111,400 4,245
Waste Management, Inc................... 157,960 3,774
-------
17,003
-------
Materials (4.2%)
International Flavors & Fragrances, Inc. 80,400 2,425
Monsanto Co............................. 3,326 76
-------
2,501
-------
TOTAL COMMON STOCKS..................... 58,477
-------
INVESTMENT COMPANIES (1.8%)
AmSouth Prime Money Market Fund......... 1,072,969 1,073
AmSouth U.S. Treasury Money Market
Fund................................... 5,362 5
-------
TOTAL INVESTMENT COMPANIES.............. 1,078
-------
TOTAL INVESTMENTS
(Cost $55,998) (a) -- 100.2%........... 59,555
Liabilities in excess of other assets --
(0.2)%................................. (143)
-------
NET ASSETS -- 100.0%.................... $59,412
=======
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $ 6,154
Unrealized depreciation.... (2,597)
-------
Net unrealized appreciation $ 3,557
=======
(b)Represents non-income producing security.
See notes to financial statements.
44
ENHANCED MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS (93.3%)
Consumer Discretionary (10.7%)
American Greetings Corp., Class A (b).... 800 $ 14
AOL Time Warner, Inc. (b)................ 69,600 1,074
AutoNation, Inc. (b)..................... 900 15
AutoZone, Inc. (b)....................... 2,600 216
Best Buy Co., Inc. (b)................... 4,200 183
Big Lots, Inc. (b)....................... 3,100 48
Black & Decker Corp...................... 1,800 74
Carnival Corp............................ 8,300 285
Centex Corp.............................. 800 58
Circuit City Stores, Inc................. 5,600 51
Comcast Corp., Class A (b)............... 17,512 531
Cooper Tire & Rubber Co.................. 900 15
Dana Corp................................ 3,900 60
Darden Restaurants, Inc.................. 4,550 85
Delphi Corp.............................. 14,737 124
Dillard's, Inc., Class A................. 2,100 32
Dollar General Corp...................... 8,800 162
Dow Jones & Co., Inc..................... 200 8
Family Dollar Stores, Inc................ 200 8
Federated Department Stores, Inc......... 5,000 200
Fortune Brands, Inc...................... 3,900 217
Gannett Co., Inc......................... 5,100 392
Harrah's Entertainment, Inc. (b)......... 2,900 127
Hasbro, Inc.............................. 4,300 81
Hilton Hotels Corp....................... 1,900 28
Home Depot, Inc.......................... 32,200 1,005
International Game Technology............ 2,800 71
Interpublic Group of Cos., Inc........... 2,100 29
Johnson Controls, Inc.................... 200 19
Jones Apparel Group, Inc. (b)............ 3,400 98
Knight-Ridder, Inc....................... 500 34
Kohl's Corp. (b)......................... 5,200 309
Limited Brands........................... 6,900 115
Liz Claiborne, Inc....................... 200 7
Lowe's Cos., Inc......................... 11,300 537
Mattel, Inc.............................. 11,500 223
May Department Stores Co................. 1,900 47
Maytag Corp.............................. 2,100 53
McDonald's Corp.......................... 23,800 548
McGraw Hill Cos., Inc.................... 4,700 286
Meredith Corp............................ 1,300 59
New York Times Co., Class A.............. 1,200 54
Office Depot, Inc. (b)................... 8,200 136
Omnicom Group, Inc....................... 2,500 185
Pulte Homes, Inc......................... 100 6
Reebok International, Ltd. (b)........... 800 26
Sears, Roebuck & Co...................... 4,200 171
Stanley Works............................ 2,300 65
Staples, Inc. (b)........................ 8,400 169
Starwood Hotels & Resorts Worldwide, Inc. 2,600 85
Target Corp.............................. 13,300 510
TJX Cos., Inc............................ 6,900 134
Tribune Co............................... 6,600 312
Tupperware Corp.......................... 700 11
Univision Communications, Inc.,
Class A (b)............................. 3,000 94
Continued
Shares Value
------ ---------
COMMON STOCKS, continued
Consumer Discretionary, continued
V.F. Corp........................... 400 $ 15
Viacom, Inc., Class B (b)........... 23,224 1,011
Visteon Corp........................ 1,591 10
Wal-Mart Stores, Inc................ 51,200 2,862
Walt Disney Co...................... 6,000 132
Wendy's International, Inc.......... 3,000 88
YUM! Brands, Inc. (b)............... 5,200 156
---------
13,760
---------
Consumer Staples (7.3%)
Adolph Coors Co., Class B........... 1,000 51
Alberto-Culver Co., Class B......... 100 6
Altria Group, Inc................... 31,900 1,276
Anheuser-Busch Cos., Inc............ 11,300 586
Archer-Daniels-Midland Co........... 17,011 224
Brown-Forman Corp................... 300 23
Coca-Cola Co........................ 35,800 1,611
Colgate-Palmolive Co................ 100 5
ConAgra Foods, Inc.................. 7,100 160
Gillette Co......................... 13,800 424
H.J. Heinz Co....................... 8,800 300
Hershey Foods Corp.................. 1,800 131
Kellogg Co.......................... 5,400 185
Kimberly-Clark Corp................. 9,200 445
Kroger Co. (b)...................... 20,200 342
McCormick & Co., Inc................ 1,600 41
Pepsi Bottling Group, Inc........... 5,300 116
PepsiCo, Inc........................ 25,690 1,184
Procter & Gamble Co................. 17,100 1,503
R.J. Reynolds Tobacco Holdings, Inc. 2,200 78
Safeway, Inc. (b)................... 5,800 124
Sara Lee Corp....................... 17,800 333
SUPERVALU, Inc...................... 3,500 82
UST, Inc............................ 4,400 146
Walgreen Co......................... 1,200 36
---------
9,412
---------
Energy (5.8%)
Amerada Hess Corp................... 2,300 108
Anadarko Petroleum Corp............. 3,300 145
Apache Corp......................... 2,801 174
Ashland, Inc........................ 900 30
Baker Hughes, Inc................... 4,400 138
BJ Services Co. (b)................. 4,200 144
Burlington Resources, Inc........... 2,700 125
ChevronTexaco Corp.................. 16,619 1,197
ConocoPhillips...................... 12,164 636
Devon Energy Corp................... 3,000 142
EOG Resources, Inc.................. 400 16
Exxon Mobil Corp.................... 93,364 3,321
Halliburton Co...................... 7,700 171
Kerr-McGee Corp..................... 2,600 114
Marathon Oil Corp................... 4,100 106
Nabors Industries, Ltd. (b)......... 100 4
Noble Corp. (b)..................... 3,500 115
Rowan Cos., Inc. (b)................ 2,500 55
Schlumberger Ltd.................... 12,800 577
Continued
45
ENHANCED MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS, continued
Energy, continued
Sunoco, Inc........................... 2,000 $ 74
Transocean, Inc. (b).................. 4,200 82
Unocal Corp........................... 2,000 59
---------
7,533
---------
Financials (19.7%)
ACE Ltd............................... 3,500 115
AFLAC, Inc............................ 6,800 218
Allstate Corp......................... 15,000 570
Ambac Financial Group, Inc............ 2,800 184
American Express Co................... 23,100 1,020
American International Group, Inc..... 37,316 2,397
Aon Corp.............................. 2,300 55
Apartment Investment & Management Co.,
Class A.............................. 1,200 47
Bank of America Corp.................. 22,800 1,884
Bank One Corp......................... 21,300 843
BB&T Corp............................. 6,200 216
Bear Stearns Cos., Inc................ 300 20
Charles Schwab Corp................... 17,700 184
Charter One Financial, Inc............ 5,954 194
Chubb Corp............................ 4,500 292
Cincinnati Financial Corp............. 1,100 43
Citigroup, Inc........................ 71,966 3,225
Comerica, Inc......................... 4,600 223
Equity Office Properties Trust........ 5,400 150
Equity Residential Property........... 3,600 100
Fannie Mae............................ 13,100 839
Federated Investors, Inc., Class B.... 2,900 83
First Tennessee National Corp......... 700 30
FleetBoston Financial Corp............ 21,918 681
Freddie Mac........................... 13,000 635
Golden West Financial Corp............ 4,000 330
Goldman Sachs Group, Inc.............. 6,800 593
Hartford Financial Services Group..... 6,700 350
Huntington Bancshares, Inc............ 1,000 20
J.P. Morgan Chase & Co., Inc.......... 33,720 1,183
Janus Capital Group, Inc.............. 2,900 51
John Hancock Financial Services, Inc.. 5,300 173
KeyCorp............................... 5,600 151
Lehman Brothers Holdings, Inc......... 3,200 202
Lincoln National Corp................. 4,700 175
Loews Corp............................ 4,900 225
Marsh & McLennan Cos., Inc............ 10,500 521
MBNA Corp............................. 28,550 636
Mellon Financial Corp................. 11,400 345
Merrill Lynch & Co., Inc.............. 12,400 674
MGIC Investment Corp.................. 500 28
Moody's Corp.......................... 2,000 103
Morgan Stanley Dean Witter & Co....... 15,200 721
North Fork Bancorporation, Inc........ 2,100 74
Plum Creek Timber Co., Inc............ 2,400 65
Principal Financial Group, Inc........ 4,200 137
Providian Financial Corp. (b)......... 7,600 73
Prudential Financial, Inc............. 7,500 267
Regions Financial Corp................ 400 14
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Financials, continued
SAFECO Corp............................... 100 $ 4
Simon Property Group, Inc................. 2,400 102
State Street Corp......................... 8,800 404
Torchmark Corp............................ 500 20
Travelers Property Casualty Corp., Class B 13,310 215
U.S. Bancorp.............................. 34,807 853
Union Planters Corp....................... 2,650 85
UnumProvident Corp........................ 7,600 103
Wachovia Corp............................. 23,600 1,031
Washington Mutual, Inc.................... 2,600 103
Wells Fargo & Co.......................... 22,300 1,127
XL Capital, Ltd., Class A................. 1,800 143
---------
25,549
---------
Health Care (14.5%)
Abbott Laboratories....................... 23,600 926
Aetna, Inc................................ 4,000 246
AmerisourceBergen Corp.................... 2,000 126
Amgen, Inc. (b)........................... 16,948 1,179
Anthem, Inc. (b).......................... 1,900 143
Applera Corp. -- Applied Biosystems
Group.................................... 4,700 102
Bausch & Lomb, Inc........................ 1,400 59
Baxter International, Inc................. 13,100 362
Becton, Dickinson & Co.................... 6,700 245
Biogen, Inc. (b).......................... 2,000 77
Biomet, Inc............................... 3,450 102
Bristol-Myers Squibb Co................... 30,400 796
C.R. Bard, Inc............................ 1,400 96
Cardinal Health, Inc...................... 6,000 329
CIGNA Corp................................ 3,700 173
Eli Lilly & Co............................ 14,800 974
Forest Laboratories, Inc. (b)............. 9,100 436
Genzyme Corp. (b)......................... 5,700 288
Guidant Corp.............................. 8,100 382
Humana, Inc. (b).......................... 4,300 75
IMS Health, Inc........................... 5,200 101
Johnson & Johnson......................... 39,200 2,031
King Pharmaceuticals, Inc. (b)............ 5,866 88
McKesson HBOC, Inc........................ 3,800 123
MedImmune, Inc. (b)....................... 3,300 129
Medtronic, Inc............................ 16,100 829
Merck & Co., Inc.......................... 31,700 1,753
Pfizer, Inc............................... 105,273 3,513
Quest Diagnostics, Inc. (b)............... 1,900 114
Quintiles Transnational Corp. (b)......... 1,500 21
Schering-Plough Corp...................... 26,000 441
St. Jude Medical, Inc. (b)................ 4,700 252
Tenet Healthcare Corp. (b)................ 8,300 114
UnitedHealth Group, Inc................... 11,600 604
Watson Pharmaceuticals, Inc. (b).......... 2,600 104
WellPoint Health Networks, Inc. (b)....... 3,900 326
Wyeth..................................... 20,300 925
Zimmer Holdings, Inc. (b)................. 2,610 125
---------
18,709
---------
Continued
46
ENHANCED MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS, continued
Industrials (10.7%)
3M Co............................... 5,100 $ 716
American Power Conversion Corp. (b). 4,600 80
American Standard Cos., Inc. (b).... 900 69
Automatic Data Processing, Inc...... 11,500 426
Avery Dennison Corp................. 800 43
Boeing Co........................... 15,400 510
Burlington Northern Santa Fe........ 9,900 273
Cintas Corp......................... 300 12
Concord EFS, Inc. (b)............... 6,700 91
Convergys Corp. (b)................. 4,400 74
Cooper Industries, Ltd., Class A.... 2,500 111
Crane Co............................ 1,500 37
CSX Corp............................ 2,800 88
Deere & Co.......................... 6,300 320
Deluxe Corp......................... 700 31
Dover Corp.......................... 1,500 55
Eaton Corp.......................... 1,900 160
Emerson Electric Co................. 5,600 301
Equifax, Inc........................ 1,900 44
FedEx Corp.......................... 7,600 489
First Data Corp..................... 9,900 374
Fluor Corp.......................... 1,000 36
General Dynamics Corp............... 4,700 373
General Electric Co................. 135,700 3,860
Genuine Parts Co.................... 1,200 37
Goodrich Corp....................... 3,100 71
H & R Block, Inc.................... 1,400 59
Honeywell International, Inc........ 17,200 486
Ingersoll Rand Co................... 4,500 244
ITT Industries, Inc................. 2,400 160
Lockheed Martin Corp................ 8,800 461
McDermott International, Inc. (b)... 800 5
Norfolk Southern Corp............... 10,300 198
Northrop Grumman Corp............... 3,800 351
PACCAR, Inc......................... 800 62
Parker-Hannifin Corp................ 500 23
Pitney Bowes, Inc................... 3,100 118
Power-One, Inc. (b)................. 1,000 11
R.R. Donnelley & Sons Co............ 1,500 40
Raytheon Co......................... 10,700 328
Rockwell Automation................. 3,900 101
Rockwell Collins, Inc............... 2,400 62
Ryder System, Inc................... 1,600 46
Sabre Holdings Corp................. 3,400 78
Textron, Inc........................ 3,600 156
Thomas & Betts Corp. (b)............ 700 11
Tyco International, Ltd............. 26,369 490
Union Pacific Corp.................. 6,100 372
United Parcel Service, Inc., Class B 8,500 536
United Technologies Corp............ 8,400 632
W. W. Grainger, Inc................. 2,400 118
---------
13,829
---------
Information Technology (16.1%)
ADC Telecommunications, Inc. (b).... 21,200 46
Adobe Systems, Inc.................. 6,100 199
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Information Technology, continued
Advanced Micro Devices, Inc. (b).. 9,100 $ 66
Agilent Technologies, Inc. (b).... 6,179 134
Altera Corp. (b).................. 5,000 96
Analog Devices, Inc. (b).......... 6,100 231
Andrew Corp. (b).................. 1,200 13
Applied Materials, Inc. (b)....... 24,600 480
Applied Micro Circuits Corp. (b).. 3,800 22
Autodesk, Inc..................... 3,000 45
Avaya, Inc. (b)................... 4,679 45
BMC Software, Inc. (b)............ 3,100 44
Broadcom Corp., Class A (b)....... 7,300 148
CIENA Corp. (b)................... 11,400 66
Cisco Systems, Inc. (b)........... 108,600 2,120
Citrix Systems, Inc. (b).......... 2,300 42
Compuware Corp. (b)............... 10,000 52
Comverse Technology, Inc. (b)..... 5,000 74
Dell, Inc. (b).................... 41,600 1,401
Electronic Arts, Inc. (b)......... 3,800 319
Electronic Data Systems Corp...... 6,300 140
EMC Corp. (b)..................... 52,662 560
Gateway, Inc. (b)................. 4,000 20
Hewlett-Packard Co................ 40,311 853
IBM Corp.......................... 23,900 1,942
Intel Corp........................ 89,700 2,239
Intuit, Inc. (b).................. 2,700 116
Jabil Circuit, Inc. (b)........... 5,200 120
JDS Uniphase Corp. (b)............ 29,300 88
KLA-Tencor Corp. (b).............. 5,000 258
Lexmark International Group, Inc.,
Class A (b)...................... 1,700 109
Linear Technology Corp............ 5,300 195
LSI Logic Corp. (b)............... 9,800 91
Maxim Integrated Products, Inc.... 5,300 207
Mercury Interactive Corp. (b)..... 2,100 83
Micron Technology, Inc. (b)....... 8,000 117
Microsoft Corp.................... 146,700 3,874
National Semiconductor Corp. (b).. 4,800 107
Novell, Inc. (b).................. 9,700 34
Novellus Systems, Inc. (b)........ 3,100 111
NVIDIA Corp. (b).................. 4,200 80
Oracle Corp. (b).................. 88,000 1,056
Parametric Technology Corp. (b)... 3,300 11
Peoplesoft, Inc. (b).............. 4,100 68
PerkinElmer, Inc.................. 1,600 24
PMC-Sierra, Inc. (b).............. 2,100 26
QLogic Corp. (b).................. 2,500 105
Qualcomm, Inc..................... 17,400 652
Sanmina Corp. (b)................. 13,400 106
Scientific-Atlanta, Inc........... 2,000 61
Siebel Systems, Inc. (b).......... 9,900 93
Solectron Corp. (b)............... 21,300 109
Sun Microsystems, Inc. (b)........ 84,400 316
Symbol Technologies, Inc.......... 6,000 77
Tektronix, Inc. (b)............... 2,300 49
Tellabs, Inc. (b)................. 5,400 36
Teradyne, Inc. (b)................ 4,800 79
Continued
47
ENHANCED MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS, continued
Information Technology, continued
Texas Instruments, Inc.................. 25,000 $ 472
Thermo Electron Corp. (b)............... 3,900 87
Unisys Corp. (b)........................ 4,300 53
Veritas Software Corp. (b).............. 5,400 166
Waters Corp. (b)........................ 3,100 98
Xerox Corp. (b)......................... 2,700 29
Xilinx, Inc. (b)........................ 6,000 158
---------
20,918
---------
Materials (2.6%)
Air Products and Chemicals, Inc......... 6,000 279
Alcoa, Inc.............................. 11,200 311
Allegheny Technologies, Inc............. 1,000 8
Ball Corp............................... 700 35
Bemis Co., Inc.......................... 1,400 63
Boise Cascade Corp...................... 1,500 37
Cavco Industries, Inc. (b).............. 40 1
E.I. du Pont de Nemours & Co............ 16,978 745
Eastman Chemical Co..................... 2,000 73
Ecolab, Inc............................. 100 2
Engelhard Corp.......................... 3,400 89
Georgia-Pacific Corp.................... 3,300 72
Hercules, Inc. (b)...................... 1,400 16
International Flavors & Fragrances, Inc. 200 6
Louisiana Pacific Corp. (b)............. 1,300 16
MeadWestvaco Corp....................... 973 24
Monsanto Co............................. 3,431 79
Newmont Mining Corp..................... 10,600 382
Nucor Corp.............................. 1,000 49
Pactiv Corp. (b)........................ 4,200 83
PPG Industries, Inc..................... 4,500 254
Praxair, Inc............................ 4,300 278
Rohm & Haas Co.......................... 5,800 205
Sealed Air Corp. (b).................... 1,100 53
Temple-Inland, Inc...................... 1,400 65
United States Steel Corp................ 2,700 43
Worthington Industries, Inc............. 2,300 34
---------
3,302
---------
Telecommunication Services (3.3%)
AT&T Wireless Services, Inc. (b)........ 68,921 588
BellSouth Corp.......................... 29,400 749
Citizens Communications Co. (b)......... 600 7
SBC Communications, Inc................. 49,780 1,163
Sprint Corp............................. 23,600 333
Verizon Communications.................. 39,806 1,388
---------
4,228
---------
Utilities (2.6%)
AES Corp. (b)........................... 7,200 45
Allegheny Energy, Inc................... 1,600 13
Ameren Corp............................. 2,100 88
American Electric Power Co.............. 5,120 144
Calpine Corp. (b)....................... 5,000 29
CenterPoint Energy, Inc................. 4,000 32
Cinergy Corp............................ 2,200 75
CMS Energy Corp......................... 1,800 12
Continued
Shares Value
--------- ---------
COMMON STOCKS, continued
Utilities, continued
Consolidated Edison, Inc............. 2,800 $ 111
Constellation Energy Group........... 2,200 73
Dominion Resources, Inc.............. 4,004 241
DTE Energy Co........................ 2,200 79
Duke Energy Corp..................... 11,800 207
Dynergy, Inc., Class A (b)........... 4,600 15
Edison International (b)............. 4,300 71
El Paso Energy Corp.................. 7,853 55
Entergy Corp......................... 2,900 149
Exelon Corp.......................... 4,275 246
FirstEnergy Corp..................... 3,897 134
FPL Group, Inc....................... 2,400 148
KeySpan Corp......................... 2,100 71
Kinder Morgan, Inc................... 1,600 86
Nicor, Inc........................... 600 22
NiSource, Inc........................ 3,300 64
Peoples Energy Corp.................. 500 20
PG&E Corp. (b)....................... 5,400 116
Pinnacle West Capital Corp........... 1,200 41
PPL Corp............................. 2,150 85
Progress Energy, Inc................. 3,137 128
Progress Energy CVO.................. 500 --*
Public Service Enterprise Group, Inc. 2,900 118
Sempra Energy........................ 2,700 75
Southern Co.......................... 9,400 266
TECO Energy, Inc..................... 2,200 27
TXU Corp............................. 4,300 87
Williams Cos., Inc................... 6,800 43
Xcel Energy, Inc..................... 5,285 77
---------
3,293
---------
TOTAL COMMON STOCKS.................. 120,533
---------
INVESTMENT COMPANIES (6.2%)
AmSouth Prime Money Market Fund...... 6,030,929 6,031
AmSouth U.S. Treasury Money Market
Fund................................ 1,981,111 1,981
---------
TOTAL INVESTMENT
COMPANIES........................... 8,012
---------
Continued
48
ENHANCED MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- --------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (0.2%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending).................................... 195,006 $ 195
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING.......................... 195
--------
TOTAL INVESTMENTS
(Cost $125,798) (a) -- 99.7%................ 128,740
Other assets in excess of liabilities -- 0.3% 390
--------
NET ASSETS -- 100.0%......................... $129,130
========
- --------
(a)Cost for federal income tax purposes is $127,681. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $11,312
Unrealized depreciation.... (9,866)
-------
Net unrealized appreciation $ 1,446
=======
(b)Represents non-income producing security.
* Due to rounding, figure is below thousand - dollar threshold.
Open Futures Contracts
----------------------------------------
# of Contract Expiration Unrealized
Contracts Value Date Gain/(Loss)
--------- -------- ---------- -----------
S&P 500 Index 32 $7,914 9/19/03 $(4)
See notes to financial statements.
LARGE CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS (99.8%)
Advertising (0.3%)
The Interpublic Group of Cos., Inc.... 100,000 $ 1,380
---------
Aerospace/Defense (3.0%)
Boeing Co............................. 150,000 4,968
General Dynamics Corp................. 50,000 3,967
United Technologies Corp.............. 80,000 6,018
---------
14,953
---------
Beverages (3.6%)
Coca-Cola Co.......................... 200,000 8,994
PepsiCo, Inc.......................... 200,000 9,214
---------
18,208
---------
Business Equipment & Services (1.3%)
Paychex, Inc.......................... 200,000 6,506
---------
Computer Hardware (9.6%)
Dell, Inc. (b)........................ 200,000 6,736
Hewlett-Packard Co.................... 700,000 14,819
IBM Corp.............................. 200,000 16,250
Network Appliance, Inc. (b)........... 500,000 7,990
Sun Microsystems, Inc. (b)............ 700,000 2,618
---------
48,413
---------
Computer Software & Services (11.2%)
Automatic Data Processing, Inc........ 300,000 11,124
BMC Software, Inc. (b)................ 150,000 2,115
Cisco Systems, Inc. (b)............... 500,000 9,760
EMC Corp. (b)......................... 700,000 7,448
Microsoft Corp........................ 500,000 13,200
Oracle Corp. (b)...................... 600,000 7,200
SunGard Data Systems, Inc. (b)........ 220,000 5,773
---------
56,620
---------
Consumer Goods (4.6%)
Altria Group, Inc..................... 100,000 4,001
Clorox Co............................. 100,000 4,339
Gillette Co........................... 200,000 6,152
Procter & Gamble Co................... 100,000 8,787
---------
23,279
---------
Diversified Manufacturing (5.0%)
General Electric Co................... 475,000 13,509
Honeywell International, Inc.......... 100,000 2,828
Illinois Tool Works, Inc.............. 100,000 6,965
Tyco International, Ltd............... 100,000 1,860
---------
25,162
---------
Electronic Components (0.6%)
Agilent Technologies, Inc. (b)........ 150,000 3,260
---------
Entertainment (1.5%)
Walt Disney Co........................ 350,000 7,672
---------
Financial Services (1.8%)
American Express Co................... 100,000 4,417
Citigroup, Inc........................ 100,000 4,480
---------
8,897
---------
Food Distributors & Wholesalers (2.4%)
Sysco Corp............................ 400,000 12,052
---------
Continued
49
LARGE CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS, continued
Food Products, Processing, & Packaging (0.6%)
Sara Lee Corp........................ 150,000 $ 2,804
---------
Health Care (6.0%)
Cardinal Health, Inc................. 120,000 6,570
Johnson & Johnson.................... 300,000 15,537
UnitedHealth Group, Inc.............. 160,000 8,334
---------
30,441
---------
Health Care -- Drugs (2.7%)
Amgen, Inc. (b)...................... 200,000 13,916
---------
Insurance (2.2%)
AFLAC, Inc........................... 150,000 4,812
American International Group, Inc.... 100,000 6,420
---------
11,232
---------
Machinery & Equipment (2.2%)
Dover Corp........................... 300,000 10,983
---------
Media (1.2%)
McGraw Hill Cos., Inc................ 100,000 6,078
---------
Medical Equipment & Supplies (3.6%)
IMS Health, Inc...................... 200,000 3,868
Medtronic, Inc....................... 280,000 14,420
---------
18,288
---------
Office Equipment & Services (1.1%)
Pitney Bowes, Inc.................... 150,000 5,715
---------
Pharmaceuticals (13.5%)
Abbott Laboratories.................. 250,000 9,813
Bristol-Myers Squibb Co.............. 150,000 3,930
Genentech, Inc. (b).................. 110,000 8,883
Merck & Co., Inc..................... 300,000 16,583
Pfizer, Inc.......................... 365,000 12,176
Schering-Plough Corp................. 450,000 7,641
Wyeth................................ 200,000 9,116
---------
68,142
---------
Raw Materials (0.9%)
Avery Dennison Corp.................. 80,000 4,317
---------
Restaurants (1.8%)
McDonald's Corp...................... 400,000 9,204
---------
Retail (11.5%)
Albertson's, Inc..................... 100,000 1,886
Bed Bath & Beyond, Inc. (b).......... 100,000 3,883
Dollar General Corp.................. 300,000 5,520
Gap, Inc............................. 300,000 5,397
Home Depot, Inc...................... 300,000 9,360
Lowe's Cos., Inc..................... 55,000 2,616
TJX Cos., Inc........................ 500,000 9,725
Wal-Mart Stores, Inc................. 250,000 13,977
Walgreen Co.......................... 200,000 5,984
---------
58,348
---------
Semiconductors (6.1%)
Applied Materials, Inc. (b).......... 700,000 13,650
Intel Corp........................... 400,000 9,980
Linear Technology Corp............... 200,000 7,376
---------
31,006
---------
Continued
Shares Value
---------- ---------
COMMON STOCKS, continued
Telecommunications -- Equipment (1.5%)
Motorola, Inc........................... 300,000 $ 2,712
Nokia Oyj -- ADR........................ 200,000 3,060
Tellabs, Inc. (b)....................... 300,000 2,019
---------
7,791
---------
TOTAL COMMON STOCKS..................... 504,667
---------
INVESTMENT COMPANIES (0.2%)
AIM Liquid Assets Money Market Fund..... 630,018 630
AmSouth Prime Money Market Fund......... 613,222 613
---------
TOTAL INVESTMENT
COMPANIES.............................. 1,243
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (9.5%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 47,956,018 47,956
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 47,956
---------
TOTAL INVESTMENTS
(Cost $416,607) (a) -- 109.5%......... 553,866
Liabilities in excess of other assets --
(9.5)%................................. (47,800)
---------
NET ASSETS -- 100.0%.................... $ 506,066
=========
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $198,392
Unrealized depreciation.... (61,133)
--------
Net unrealized appreciation $137,259
========
(b)Represents non-income producing security.
ADR -- American Depositary Receipt
See notes to financial statements.
50
CAPITAL GROWTH FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS (97.8%)
Aerospace/Defense (3.4%)
L-3 Communications Holdings, Inc. (b) 65,000 $ 3,190
Lockheed Martin Corp................. 20,000 1,047
United Technologies Corp............. 60,000 4,514
---------
8,751
---------
Banking (1.9%)
Bank of America Corp................. 35,000 2,890
Wells Fargo & Co..................... 40,000 2,021
---------
4,911
---------
Beverages (1.3%)
PepsiCo, Inc......................... 75,000 3,455
---------
Business Equipment & Services (3.1%)
Cintas Corp.......................... 115,000 4,756
Paychex, Inc......................... 100,000 3,253
---------
8,009
---------
Computer Hardware (5.7%)
Dell, Inc. (b)....................... 160,000 5,389
IBM Corp............................. 78,500 6,378
Network Appliance, Inc. (b).......... 185,000 2,956
---------
14,723
---------
Computer Software & Services (12.5%)
Adobe Systems, Inc................... 41,000 1,340
Automatic Data Processing, Inc....... 43,500 1,613
Cisco Systems, Inc. (b).............. 365,000 7,126
EMC Corp. (b)........................ 80,000 851
First Data Corp...................... 90,000 3,398
Mercury Interactive Corp. (b)........ 15,000 590
Microsoft Corp....................... 335,000 8,845
Oracle Corp. (b)..................... 330,000 3,960
SunGard Data Systems, Inc. (b)....... 60,000 1,574
Veritas Software Corp. (b)........... 90,000 2,772
---------
32,069
---------
Consumer Goods (2.2%)
Procter & Gamble Co.................. 65,000 5,712
---------
Cosmetics/Toiletries (2.7%)
Alberto-Culver Co., Class B.......... 75,000 4,172
Colgate-Palmolive Co................. 50,000 2,730
---------
6,902
---------
Data Processing -- Management (0.5%)
Fiserv, Inc. (b)..................... 35,000 1,366
---------
Diversified Manufacturing (6.4%)
3M Co................................ 20,000 2,804
General Electric Co.................. 275,000 7,821
Illinois Tool Works, Inc............. 85,000 5,920
---------
16,545
---------
E-Commerce and Services (1.4%)
eBay, Inc. (b)....................... 26,700 2,862
Yahoo!, Inc. (b)..................... 25,000 778
---------
3,640
---------
Electronic Components (2.3%)
Altera Corp. (b)..................... 75,000 1,443
Johnson Controls, Inc................ 29,500 2,850
QLogic Corp. (b)..................... 40,000 1,686
---------
5,979
---------
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Entertainment (0.5%)
Walt Disney Co...................... 60,000 $ 1,315
---------
Financial Services (3.0%)
American Express Co................. 60,000 2,650
Citigroup, Inc...................... 115,000 5,152
---------
7,802
---------
Food Distributors & Wholesalers (3.1%)
Costco Wholesale Corp. (b).......... 50,000 1,853
SYSCO Corp.......................... 200,000 6,026
---------
7,879
---------
Health Care (4.2%)
First Health Group Corp. (b)........ 92,500 2,388
Johnson & Johnson................... 75,000 3,884
UnitedHealth Group, Inc............. 86,000 4,480
---------
10,752
---------
Health Care -- Drugs (1.6%)
Amgen, Inc. (b)..................... 60,000 4,175
---------
Insurance (1.1%)
AFLAC, Inc.......................... 15,500 497
American International Group, Inc... 15,000 963
Marsh & McLennan Cos., Inc.......... 26,000 1,290
---------
2,750
---------
Medical Equipment & Supplies (5.0%)
Alcon, Inc.......................... 15,000 765
Boston Scientific Corp. (b)......... 35,000 2,213
Medtronic, Inc...................... 90,000 4,635
Stryker Corp........................ 68,000 5,203
---------
12,816
---------
Oil & Gas Exploration, Production, &
Services (0.6%)
BJ Services Co. (b)................. 20,000 685
Schlumberger Ltd.................... 20,000 901
---------
1,586
---------
Pharmaceuticals (12.0%)
Abbott Laboratories................. 66,500 2,610
Barr Laboratories, Inc. (b)......... 56,000 3,783
Forest Laboratories, Inc. (b)....... 60,500 2,897
Genentech, Inc. (b)................. 16,500 1,332
Gilead Sciences, Inc. (b)........... 34,000 2,331
Merck & Co., Inc.................... 92,500 5,113
Mylan Laboratories, Inc............. 60,000 2,026
Pfizer, Inc......................... 225,000 7,506
Wyeth............................... 70,000 3,191
---------
30,789
---------
Restaurants (0.5%)
Starbucks Corp. (b)................. 50,000 1,367
---------
Retail (13.5%)
Bed Bath & Beyond, Inc. (b)......... 130,000 5,048
Best Buy Co., Inc. (b).............. 86,000 3,754
Chico's FAS, Inc. (b)............... 185,000 5,023
Dollar General Corp................. 63,300 1,165
Home Depot, Inc..................... 10,000 312
Continued
51
CAPITAL GROWTH FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
---------- ---------
COMMON STOCKS, continued
Retail, continued
Kohl's Corp. (b)....................... 40,000 $ 2,374
Lowe's Cos., Inc....................... 70,000 3,329
Staples, Inc. (b)...................... 40,000 806
Target Corp............................ 105,000 4,024
Wal-Mart Stores, Inc................... 100,000 5,591
Walgreen Co............................ 100,000 2,992
---------
34,418
---------
Schools & Educational Services (1.8%)
Apollo Group, Inc., Class A (b)........ 70,000 4,533
---------
Semiconductors (6.1%)
Applied Materials, Inc. (b)............ 140,000 2,730
Intel Corp............................. 240,000 5,988
Linear Technology Corp................. 110,180 4,063
Novellus Systems, Inc. (b)............. 81,000 2,901
---------
15,682
---------
Telecommunications (0.2%)
Nextel Communications, Inc.,
Class A (b)........................... 35,000 639
---------
Transportation & Shipping (1.2%)
United Parcel Service, Inc., Class B... 50,000 3,154
---------
TOTAL COMMON STOCKS.................... 251,719
---------
INVESTMENT COMPANIES (3.0%)
AIM Liquid Assets Money Market Fund.... 3,650,190 3,650
AmSouth Prime Money Market Fund........ 419,872 420
Biotech HOLDRs Trust................... 20,500 2,765
Nasdaq -- 100 Index Tracking Stock..... 5,000 159
S & P Depositary Receipt............... 6,000 596
---------
TOTAL INVESTMENT
COMPANIES............................. 7,590
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (9.2%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending).............................. 23,731,332 23,731
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING.................... 23,731
---------
TOTAL INVESTMENTS
(Cost $252,906) (a) -- 110.0%........ 283,040
Liabilities in excess of other
assets -- (10.0)%..................... (25,756)
---------
NET ASSETS -- 100.0%................... $ 257,284
=========
- --------
(a)Cost for federal income tax purposes is $260,718. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $25,558
Unrealized depreciation.... (3,235)
-------
Net unrealized appreciation $22,323
=======
(b)Represents non-income producing security.
See notes to financial statements.
MID CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS (96.7%)
Consumer Discretionary (16.8%)
99 Cents Only Stores (b)................ 1,700 $ 58
Abercrombie & Fitch Co., Class A (b).... 26,000 834
American Eagle Outfitters, Inc. (b)..... 11,200 248
Applebee's International, Inc........... 1,100 35
ArvinMeritor, Inc....................... 10,700 195
Bandag, Inc............................. 3,000 106
Barnes & Noble, Inc. (b)................ 10,100 242
Belo Corp., Class A..................... 35,400 790
BJ's Wholesale Club, Inc. (b)........... 21,800 425
Bob Evans Farms, Inc.................... 5,500 155
Borders Group, Inc. (b)................. 24,900 443
BorgWarner, Inc......................... 4,200 280
Brinker International, Inc. (b)......... 30,200 1,057
Callaway Golf Co........................ 11,900 184
Catalina Marketing Corp. (b)............ 8,400 141
CBRL Group, Inc......................... 7,800 275
CDW Corp. (b)........................... 3,500 168
Cheesecake Factory, Inc. (b)............ 700 23
Claire's Stores, Inc.................... 7,700 210
Clayton Homes, Inc...................... 21,400 267
Coach, Inc. (b)......................... 14,100 747
Copart, Inc. (b)........................ 14,500 136
D. R. Horton, Inc....................... 23,000 647
Dollar Tree Stores, Inc. (b)............ 31,200 1,144
Emmis Communications Corp., Class A (b). 8,400 168
Entercom Communications Corp. (b)....... 500 24
Federal Signal Corp..................... 7,500 150
Furniture Brands International, Inc. (b) 1,300 31
GTECH Holdings Corp..................... 16,400 633
Harte-Hanks, Inc........................ 27,600 530
Hispanic Broadcasting Corp. (b)......... 17,100 448
Krispy Kreme Doughnuts, Inc. (b)........ 1,400 61
Lancaster Colony Corp................... 5,700 229
Lear Corp. (b).......................... 20,600 1,071
Lennar Corp............................. 11,200 730
Macrovision Corp. (b)................... 7,600 179
Mandalay Resort Group................... 20,700 720
Media General, Inc., Class A............ 7,100 410
Michaels Stores, Inc.................... 21,200 819
Modine Manufacturing Co................. 5,300 113
Mohawk Industries, Inc. (b)............. 200 13
Nieman Marcus Group, Inc. (b)........... 1,900 75
Outback Steakhouse, Inc................. 200 7
Park Place Entertainment Corp. (b)...... 47,200 422
Payless ShoeSource, Inc. (b)............ 21,300 281
PETsMART, Inc. (b)...................... 43,700 867
Pier 1 Imports, Inc..................... 29,100 541
Reader's Digest Assoc., Class A......... 15,400 200
Ross Stores, Inc........................ 1,100 50
Ruby Tuesday, Inc....................... 10,100 230
Saks, Inc. (b).......................... 44,700 506
Six Flags, Inc. (b)..................... 14,500 69
Superior Industries International, Inc.. 4,300 186
Timberland Company, Class A (b)......... 5,800 260
Toll Brothers, Inc. (b)................. 11,100 294
Unifi, Inc. (b)......................... 8,500 58
Continued
52
MID CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS, continued
Consumer Discretionary, continued
United Rentals, Inc. (b)............... 12,000 $ 174
Washington Post Co., Class B........... 2,200 1,487
Westwood One, Inc. (b)................. 33,100 1,011
Williams-Sonoma, Inc. (b).............. 18,300 517
---------
22,374
---------
Consumer Staples (3.0%)
Church & Dwight Co., Inc............... 6,300 204
Constellation Brands, Inc., Class A (b) 14,200 410
Dean Foods Co. (b)..................... 9,000 269
Dial Corp.............................. 27,200 533
Dreyer's Grand Ice Cream, Inc.......... 5,500 430
Hormel Foods Corp...................... 5,700 124
Interstate Bakeries Corp............... 7,000 72
J.M. Smucker Co........................ 7,800 312
Longs Drug Stores Corp................. 6,000 117
PepsiAmericas, Inc..................... 23,600 317
Ruddick Corp........................... 7,300 120
Sensient Technologies Corp............. 7,400 158
Tyson Foods, Inc., Class A............. 55,200 625
Universal Corp......................... 3,900 166
Whole Foods Market, Inc. (b)........... 2,200 112
---------
3,969
---------
Energy (7.2%)
Cooper Cameron Corp. (b)............... 13,900 665
ENSCO International, Inc............... 31,800 797
Equitable Resources, Inc............... 9,700 375
FMC Technologies, Inc. (b)............. 10,300 231
Forest Oil Corp. (b)................... 14,100 322
Grant Prideco, Inc. (b)................ 30,900 332
Hanover Compressor Co. (b)............. 10,400 100
Helmerich & Payne, Inc................. 7,800 209
Murphy Oil Corp........................ 22,900 1,130
National-Oilwell, Inc. (b)............. 13,200 243
Noble Energy, Inc...................... 13,400 489
Pioneer Natural Resources Co. (b)...... 29,400 706
Pogo Producing Co...................... 9,600 406
Smith International, Inc. (b).......... 15,900 570
Tidewater, Inc......................... 14,800 395
Valero Energy Corp..................... 17,700 644
Varco International, Inc. (b).......... 15,200 263
Weatherford International, Ltd. (b).... 20,400 740
Western Gas Resources, Inc............. 5,200 197
XTO Energy, Inc........................ 39,732 767
---------
9,581
---------
Financials (19.9%)
A.G. Edwards, Inc...................... 12,500 462
Allmerica Financial Corp. (b).......... 8,300 185
AMB Property Corp...................... 13,000 365
American Financial Group, Inc.......... 10,800 247
AmeriCredit Corp. (b).................. 24,300 181
AmerUs Group Co........................ 6,100 187
Astoria Financial Corp................. 27,300 768
Bank of Hawaii Corp.................... 500 17
Banknorth Group, Inc................... 44,800 1,237
Continued
Shares Value
------ ---------
COMMON STOCKS, continued
Financials, continued
City National Corp....................... 15,700 $ 790
Colonial BancGroup, Inc.................. 19,400 289
Commerce Bancorp, Inc.................... 200 8
Compass Bancshares, Inc.................. 20,100 679
E*TRADE Group, Inc. (b).................. 56,700 519
Everest Re Group, Ltd.................... 15,400 1,165
Fidelity National Financial, Inc......... 37,050 1,063
First American Corp...................... 19,600 474
FirstMerit Corp.......................... 13,300 317
Greater Bay Bancorp...................... 8,100 159
GreenPoint Financial Corp................ 27,300 1,373
HCC Insurance Holdings, Inc.............. 1,300 39
Hibernia Corp., Class A.................. 49,500 990
Horace Mann Educators Corp............... 6,400 99
Hospitality Properties Trust............. 9,800 309
Independence Community Bank Corp......... 9,000 293
IndyMac Bancorp, Inc..................... 8,700 212
Investment Technology Group, Inc. (b).... 7,500 139
Leucadia National Corp................... 9,100 353
Liberty Property Trust................... 12,000 416
M&T Bank Corp............................ 18,600 1,648
Mack-Cali Realty Corp.................... 9,000 331
Mercantile Bankshares Corp............... 10,800 440
MONY Group, Inc.......................... 7,400 206
National Commerce Financial Corp......... 60,200 1,476
New Plan Excel Realty Trust.............. 15,200 340
New York Community Bancorp, Inc.......... 22,400 670
Ohio Casualty Corp. (b).................. 9,500 141
Old Republic International Corp.......... 33,800 1,168
PMI Group, Inc........................... 28,300 938
Protective Life Corp..................... 20,000 583
Radian Group, Inc........................ 14,700 688
Roslyn Bancorp, Inc...................... 200 4
SEI Investments Co....................... 16,600 580
Silicon Valley Bancshares (b)............ 6,100 150
Sovereign Bancorp, Inc................... 3,100 56
StanCorp Financial Group, Inc............ 9,200 513
TCF Financial Corp....................... 23,100 1,055
United Dominion Realty Trust, Inc........ 16,800 303
Unitrin, Inc............................. 1,100 34
W.R. Berkley Corp........................ 17,400 892
Waddell & Reed Financial, Inc., Class A.. 12,600 332
Wilmington Trust Corp.................... 19,700 625
---------
26,508
---------
Health Care (15.0%)
Apogent Technologies, Inc. (b)........... 26,400 587
Apria Healthcare Group, Inc. (b)......... 17,200 447
Barr Laboratories, Inc. (b).............. 20,550 1,388
Beckman Coulter, Inc..................... 9,600 426
Charles River Laboratories International,
Inc. (b)................................ 7,100 264
Community Health Systems, Inc. (b)....... 15,500 344
Covance, Inc. (b)........................ 18,800 389
Coventry Health Care, Inc. (b)........... 17,900 964
Cytyc Corp. (b).......................... 18,200 215
DENTSPLY International, Inc.............. 12,300 534
Continued
53
MID CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS, continued
Health Care, continued
Edwards Lifesciences Corp. (b).............. 18,100 $ 511
Express Scripts, Inc., Class A (b).......... 2,800 185
Gilead Sciences, Inc. (b)................... 19,100 1,309
Henry Schein, Inc. (b)...................... 12,700 742
Hillenbrand Industries, Inc................. 17,200 937
ICN Pharmaceuticals, Inc.................... 13,100 204
IDEC Pharmaceuticals Corp. (b).............. 7,900 267
IVAX Corp. (b).............................. 30,500 523
Millenium Pharmaceuticals, Inc. (b)......... 90,000 1,130
Mylan Laboratories, Inc..................... 48,250 1,630
Oxford Health Plans, Inc. (b)............... 22,900 978
PacifiCare Health Systems, Inc. (b)......... 5,600 313
Patterson Dental Co. (b).................... 10,700 572
Perrigo Co.................................. 10,900 177
Pharmaceutical Resources, Inc. (b).......... 5,100 289
Protein Design Labs, Inc. (b)............... 14,000 179
Sepracor, Inc. (b).......................... 13,200 320
SICOR, Inc. (b)............................. 36,800 718
Steris Corp. (b)............................ 18,100 416
Triad Hospitals, Inc. (b)................... 22,600 682
Universal Health Services, Inc. (b)......... 19,000 974
Varian Medical Systems, Inc. (b)............ 18,900 1,160
VISX, Inc. (b).............................. 8,100 189
---------
19,963
---------
Industrials (12.8%)
AGCO Corp. (b).............................. 23,600 453
Airborne, Inc............................... 7,600 171
Alaska Air Group, Inc. (b).................. 4,200 103
Alexander & Baldwin, Inc.................... 6,500 183
Ametek, Inc................................. 5,200 206
Banta Corp.................................. 4,000 135
Brink's Co.................................. 8,500 140
C.H. Robinson Worldwide, Inc................ 13,300 491
Career Education Corp. (b).................. 14,400 1,201
Carlisle Cos., Inc.......................... 9,600 420
Ceridian Corp. (b).......................... 23,300 435
Certegy, Inc. (b)........................... 10,400 283
CheckFree Corp. (b)......................... 3,400 91
ChoicePoint, Inc. (b)....................... 3,500 133
CNF, Inc.................................... 1,600 45
Corinthian Colleges, Inc. (b)............... 6,800 371
CSG Systems International, Inc. (b)......... 8,100 122
DeVry, Inc. (b)............................. 11,000 281
DST Systems, Inc. (b)....................... 37,500 1,378
Dun & Bradstreet Corp. (b).................. 11,700 481
Dycom Industries, Inc. (b).................. 7,500 128
Education Management Corp. (b).............. 700 41
EGL, Inc. (b)............................... 7,400 122
Energizer Holdings, Inc. (b)................ 27,500 942
Expeditors International of Washington, Inc. 16,300 553
Fastenal Co................................. 1,800 68
Flowserve Corp. (b)......................... 8,700 168
GATX Corp................................... 7,700 169
Granite Construction, Inc................... 6,500 117
Harsco Corp................................. 12,700 475
Herman Miller, Inc.......................... 900 20
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Industrials, continued
HON Industries, Inc....................... 2,900 $ 96
Hubbell, Inc., Class B.................... 9,300 319
J.B. Hunt Transport Services, Inc. (b).... 700 33
Jacobs Engineering Group, Inc. (b)........ 300 13
Kelly Services, Inc., Class A............. 5,600 144
Kennametal, Inc........................... 5,500 212
Korn/Ferry International (b).............. 5,900 63
L-3 Communications Holdings, Inc. (b)..... 2,250 110
Manpower, Inc............................. 12,100 461
MPS Group, Inc. (b)....................... 16,100 151
Nordson Corp.............................. 5,300 128
Overseas Shipholding Group, Inc........... 5,400 119
Pentair, Inc.............................. 15,400 621
Quanta Services, Inc. (b)................. 10,700 81
Republic Services, Inc. (b)............... 48,000 1,162
Rollins, Inc.............................. 7,000 131
Sequa Corp., Class A (b).................. 1,600 63
Sotheby's Holdings, Inc., Class A (b)..... 9,600 85
SPX Corp. (b)............................. 25,300 1,191
Swift Transportation Co., Inc. (b)........ 3,600 79
Sylvan Learning Systems, Inc. (b)......... 6,300 168
Tecumseh Products Co., Class A............ 2,900 106
Trinity Industries, Inc................... 7,200 163
Valassis Communications, Inc. (b)......... 16,500 467
Viad Corp................................. 26,100 579
Werner Enterprises, Inc................... 10,000 238
York International Corp................... 6,200 182
---------
17,091
---------
Information Technology (12.4%)
3Com Corp. (b)............................ 113,400 553
Activision, Inc. (b)...................... 15,600 182
ADTRAN, Inc............................... 400 20
Advanced Fibre Communications, Inc. (b)... 13,200 223
Advent Software, Inc. (b)................. 5,100 83
Affiliated Computer Services, Inc.,
Class A (b).............................. 9,200 456
Arrow Electronics, Inc. (b)............... 15,700 268
Ascential Software Corp. (b).............. 10,525 171
Atmel Corp. (b)........................... 73,100 235
Avnet, Inc. (b)........................... 36,800 530
Avocent Corp. (b)......................... 7,100 190
Cabot Microelectronics Corp. (b).......... 3,800 236
CommScope, Inc. (b)....................... 9,300 96
Credence Systems Corp. (b)................ 9,600 92
Cypress Semiconductor Corp. (b)........... 19,400 271
Diebold, Inc.............................. 1,800 80
Fair Issac Corp........................... 100 5
Fairchild Semiconductor Corp., Class A (b) 36,700 468
Gartner, Inc., Class B (b)................ 12,900 112
Harris Corp............................... 16,900 547
Imation Corp.............................. 11,100 396
InFocus Corp. (b)......................... 6,200 29
Integrated Device Technology, Inc. (b).... 16,300 188
International Rectifier Corp. (b)......... 19,400 535
Internet Security Systems, Inc. (b)....... 7,800 92
Intersil Corp., Class A (b)............... 39,700 978
Continued
54
MID CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------ ---------
COMMON STOCKS, continued
Information Technology, continued
Jack Henry & Associates, Inc......... 13,800 $ 258
Keane, Inc. (b)...................... 11,200 163
KEMET Corp. (b)...................... 13,500 146
Lam Research Corp. (b)............... 19,800 431
Lattice Semiconductor Corp. (b)...... 17,600 137
Legato Systems, Inc. (b)............. 18,200 171
LTX Corp. (b)........................ 7,700 76
Macromedia, Inc. (b)................. 9,800 201
McDATA Corp., Class A (b)............ 17,900 193
Mentor Graphics Corp. (b)............ 10,400 177
Micrel, Inc. (b)..................... 14,400 162
Microchip Technology, Inc............ 47,875 1,261
National Instruments Corp............ 1,200 43
Network Associates, Inc. (b)......... 49,100 555
Newport Corp. (b).................... 6,000 103
Overture Services, Inc. (b).......... 10,000 237
Plantronics, Inc. (b)................ 7,000 170
Plexus Corp. (b)..................... 6,600 95
Polycom, Inc. (b).................... 15,600 261
Powerwave Technologies, Inc. (b)..... 10,400 80
Quantum Corp. (b).................... 27,100 81
Retek, Inc. (b)...................... 8,300 60
Reynolds & Reynolds Co., Class A..... 10,600 307
RF Micro Devices, Inc. (b)........... 57,300 421
RSA Security, Inc. (b)............... 8,900 109
SanDisk Corp. (b).................... 1,400 79
Semtech Corp. (b).................... 11,500 190
Silicon Laboratories, Inc. (b)....... 7,700 283
Storage Technology Corp. (b)......... 33,800 900
Sybase, Inc. (b)..................... 29,700 466
Synopsys, Inc. (b)................... 1,100 69
Tech Data Corp. (b).................. 8,900 279
Titan Corp. (b)...................... 12,200 187
Transaction Systems Architects, Inc.,
Class A (b)......................... 5,600 68
TriQuint Semiconductor, Inc. (b)..... 20,800 94
Varian, Inc. (b)..................... 5,300 172
Vishay Intertechnology, Inc. (b)..... 50,100 666
Wind River Systems, Inc. (b)......... 12,400 77
---------
16,464
---------
Materials (3.2%)
Airgas, Inc.......................... 11,300 220
AK Steel Holding Corp. (b)........... 16,900 41
Albemarle Corp....................... 13,100 356
Arch Coal, Inc....................... 8,200 169
Bowater, Inc......................... 3,300 127
Carpenter Technology Corp............ 3,500 64
Crompton Corp........................ 17,900 112
Cytec Industries, Inc. (b)........... 6,100 236
Ferro Corp........................... 6,300 137
FMC Corp. (b)........................ 5,500 131
Glatfelter........................... 6,800 85
IMC Global, Inc...................... 7,800 57
Longview Fibre Co.................... 8,000 69
Lubrizol Corp........................ 16,100 537
Lyondell Chemical Co................. 7,800 117
Continued
Shares Value
------ ---------
COMMON STOCKS, continued
Materials, continued
Martin Marietta Materials, Inc.... 900 $ 34
Minerals Technologies, Inc........ 3,200 160
Olin Corp......................... 9,100 170
Packaging Corp. of America (b).... 16,400 310
Peabody Energy Corp............... 8,200 252
Potlatch Corp..................... 4,500 120
Rayonier, Inc..................... 6,500 226
Sonoco Products Co................ 15,200 347
Valspar Corp...................... 1,800 79
Wausau-Mosinee Paper Corp......... 8,100 98
---------
4,254
---------
Telecommunication Services (0.2%)
Cincinnati Bell, Inc. (b)......... 34,400 194
Price Communications Corp. (b).... 8,600 109
Telephone & Data Systems, Inc..... 500 27
---------
330
---------
Utilities (6.2%)
AGL Resources, Inc................ 9,800 269
ALLETE, Inc....................... 13,500 362
Alliant Energy Corp............... 14,400 292
Aquila, Inc....................... 28,500 74
Black Hills Corp.................. 4,900 150
DPL, Inc.......................... 19,900 290
DQE, Inc.......................... 11,700 168
Energy East Corp.................. 22,800 472
Great Plains Energy, Inc.......... 10,900 311
Hawaiian Electric Industries, Inc. 5,700 242
IDACORP, Inc...................... 5,900 160
MDU Resources Group, Inc.......... 11,200 355
National Fuel Gas Co.............. 12,600 305
Northeast Utilities............... 21,300 358
NSTAR............................. 8,300 371
OGE Energy Corp................... 12,300 245
ONEOK, Inc........................ 11,400 238
Pepco Holdings, Inc............... 25,700 445
Philadelphia Suburban Corp........ 10,600 254
PNM Resources, Inc................ 6,100 163
Puget Energy, Inc................. 14,500 317
Questar Corp...................... 12,900 412
SCANA Corp........................ 17,400 578
Sierra Pacific Resources (b)...... 16,000 82
Vectren Corp...................... 10,600 246
Westar Energy, Inc................ 11,200 188
WGL Holdings, Inc................. 7,600 194
Wisconsin Energy Corp............. 18,200 512
WPS Resources Corp................ 5,000 199
---------
8,252
---------
TOTAL COMMON STOCKS............... 128,786
---------
Continued
55
MID CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
--------- --------
INVESTMENT COMPANIES (3.1%)
AmSouth Prime Money Market Fund......... 4,085,356 $ 4,085
AmSouth U.S. Treasury Money Market
Fund................................... 2,621 3
--------
TOTAL INVESTMENT
COMPANIES.............................. 4,088
--------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (3.6%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 4,773,152 4,773
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 4,773
--------
TOTAL INVESTMENTS
(Cost $122,776) (a) -- 103.4%......... 137,647
Liabilities in excess of other assets --
(3.4)%................................. (4,539)
--------
NET ASSETS -- 100.0%.................... $133,108
========
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $18,405
Unrealized depreciation.... (3,534)
-------
Net unrealized appreciation $14,871
=======
(b)Represents non-income producing security.
Open Futures Contracts
-----------------------------------------
# of Contract Expiration Unrealized
Contracts Value Date Gain/(Loss)
--------- -------- ---------- -----------
S&P 400 Index 17 $4,223 9/19/03 $67
See notes to financial statements.
SMALL CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS (96.2%)
Aerospace/Defense Equipment (2.1%)
Engineered Support Systems, Inc......... 88,750 $ 3,927
---------
Apparel (11.8%)
Aeropostale, Inc. (b)................... 80,800 2,113
Brown Shoe Co., Inc..................... 36,800 1,098
K-Swiss, Inc., Class A.................. 100,100 3,771
Kellwood Co............................. 111,800 3,673
Pacific Sunwear of California, Inc. (b). 150,100 4,555
Quiksilver, Inc. (b).................... 198,900 3,437
The Finish Line, Inc., Class A (b)...... 135,300 3,027
---------
21,674
---------
Banking (1.8%)
Hudson United Bancorp................... 66,100 2,415
Texas Regional Bancshares, Inc., Class A 24,300 801
---------
3,216
---------
Business Services (2.5%)
Kroll, Inc. (b)......................... 93,800 2,141
Tetra Tech, Inc. (b).................... 150,000 2,409
---------
4,550
---------
Casino Services (1.6%)
Shuffle Master, Inc. (b)................ 99,000 2,898
---------
Computer Software/Services (8.5%)
Altiris, Inc. (b)....................... 133,900 2,606
Avid Technology, Inc. (b)............... 53,800 2,500
Magma Design Automation, Inc. (b)....... 102,600 2,047
NetScreen Technologies, Inc. (b)........ 26,000 562
PracticeWorks, Inc. (b)................. 72,700 1,546
Progress Software Corp. (b)............. 73,200 1,457
SRA International, Inc., Class A (b).... 90,400 3,162
Verint Systems, Inc. (b)................ 78,100 1,738
---------
15,618
---------
Computers & Peripherals (2.1%)
Advanced Digital Information Corp. (b).. 211,800 2,459
Hutchinson Technology, Inc. (b)......... 45,200 1,298
---------
3,757
---------
Consumer Goods (1.0%)
Flowers Foods, Inc...................... 20,700 421
Jarden Corp. (b)........................ 47,100 1,394
---------
1,815
---------
Diagnostic Equipment (1.0%)
IDEXX Laboratories, Inc. (b)............ 46,200 1,870
---------
Educational Services (3.3%)
Corinthian Colleges, Inc. (b)........... 49,500 2,703
ITT Educational Services, Inc. (b)...... 87,000 3,413
---------
6,116
---------
Electrical & Electronic (4.5%)
Arrow Electronics, Inc. (b)............. 26,700 455
FLIR Systems, Inc. (b).................. 116,200 3,149
Power Integrations, Inc. (b)............ 72,800 2,099
Trimble Navigation, Ltd. (b)............ 91,100 2,492
---------
8,195
---------
Continued
56
SMALL CAP FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS, continued
Financial Services (3.4%)
Portfolio Recovery Associates, Inc. (b) 61,000 $ 1,705
UCBH Holdings, Inc..................... 144,400 4,452
---------
6,157
---------
Gaming (3.1%)
GTECH Holdings Corp.................... 99,700 3,846
Station Casinos, Inc. (b).............. 59,700 1,731
---------
5,577
---------
Health Care (6.9%)
AMERIGROUP Corp. (b)................... 79,700 3,284
Centene Corp. (b)...................... 61,800 1,808
Mid Atlantic Medical Services, Inc. (b) 15,300 832
Odyssey Healthcare, Inc. (b)........... 61,500 2,583
Sierra Health Services, Inc. (b)....... 71,800 1,890
VistaCare, Inc., Class A (b)........... 77,300 2,215
---------
12,612
---------
Insurance (1.6%)
Odyssey Re Holdings Corp............... 20,300 374
ProAssurance Corp. (b)................. 88,500 2,491
---------
2,865
---------
Internet Services (5.2%)
CheckFree Corp. (b).................... 40,500 1,090
Digital Insight Corp. (b).............. 137,400 2,773
Digital River, Inc. (b)................ 102,500 2,202
United Online, Inc. (b)................ 107,500 3,367
---------
9,432
---------
Machinery & Equipment (1.9%)
Entegris, Inc. (b)..................... 240,600 3,445
---------
Manufacturing (0.3%)
Maverick Tube Corp. (b)................ 34,100 563
---------
Medical Equipment & Supplies (7.0%)
Advanced Neuromodulation Systems,
Inc. (b).............................. 90,750 3,733
Cooper Cos., Inc....................... 19,900 697
Cyberonics, Inc. (b)................... 58,500 1,746
Gen-Probe, Inc. (b).................... 50,400 2,772
INAMED Corp. (b)....................... 13,500 896
Thoratec Corp. (b)..................... 208,400 3,136
---------
12,980
---------
Medical Services (0.8%)
VCA Antech, Inc. (b)................... 61,700 1,399
---------
Oil & Gas Exploration, Production, &
Services (5.8%)
Cimarex Energy Co. (b)................. 58,800 1,182
Comstock Resources, Inc. (b)........... 66,100 849
Energen Corp........................... 86,200 2,990
Evergreen Resources, Inc. (b).......... 16,400 816
Patina Oil & Gas Corp.................. 55,250 1,662
Southwestern Energy Co. (b)............ 29,200 444
St. Mary Land & Exploration Co......... 82,800 2,140
Unit Corp. (b)......................... 24,300 476
---------
10,559
---------
Continued
Shares Value
---------- ---------
COMMON STOCKS, continued
Pharmaceuticals (7.1%)
aaiPharma, Inc. (b).................... 49,350 $ 901
Alpharma, Inc., Class A................ 91,200 1,810
Endo Pharmaceuticals Holdings, Inc. (b) 56,600 881
Eon Labs, Inc. (b)..................... 43,200 1,463
Kos Pharmaceuticals, Inc. (b).......... 153,500 5,241
Perrigo Co............................. 158,800 2,584
---------
12,880
---------
Restaurants (2.9%)
Applebee's International, Inc.......... 114,900 3,665
CBRL Group, Inc........................ 48,600 1,713
---------
5,378
---------
Retail (6.9%)
Claire's Stores, Inc................... 114,400 3,123
Guitar Center, Inc. (b)................ 115,100 3,879
Leapfrog Enterprises, Inc. (b)......... 99,200 3,006
Tractor Supply Co. (b)................. 47,400 2,625
---------
12,633
---------
Semiconductors (1.1%)
International Rectifier Corp. (b)...... 69,900 1,929
---------
Technology (1.0%)
Dionex Corp. (b)....................... 45,100 1,838
---------
Transportation (1.0%)
Pacer International, Inc (b)........... 90,500 1,767
---------
TOTAL COMMON STOCKS.................... 175,650
---------
INVESTMENT COMPANIES (1.8%)
AmSouth Prime Money Market Fund........ 3,317,141 3,317
---------
TOTAL INVESTMENT
COMPANIES............................. 3,317
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (10.7%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3
(Securities Lending).................. 19,646,890 19,647
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING.................... 19,647
---------
TOTAL INVESTMENTS
(Cost $170,204) (a) -- 108.7%........ 198,614
Liabilities in excess of other
assets -- (8.7)%...................... (15,957)
---------
NET ASSETS -- 100.0%................... $ 182,657
=========
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $30,916
Unrealized depreciation.... (2,506)
-------
Net unrealized appreciation $28,410
=======
(b)Represents non-income producing security.
See notes to financial statements.
57
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS (97.4%)
Australia (4.8%)
AMP Ltd........................ 408,291 $ 1,292
APN News & Media, Ltd.......... 2,183 5
AXA Asia Pacific Holdings, Ltd. 452,900 710
BHP Steel, Ltd................. 210,920 570
Boral Ltd...................... 171,438 613
Brambles Industries, Ltd....... 14,503 46
CSR Ltd........................ 240,599 312
Insurance Australia Group, Ltd. 365,400 888
Lend Lease Corp., Ltd.......... 70,901 398
Lion Nathan, Ltd............... 142,100 498
Mayne Group, Ltd............... 214,659 420
Mirvac Group................... 158,800 450
Origin Energy, Ltd............. 170,048 454
PaperlinX Ltd.................. 124,518 408
Publishing & Broadcasting, Ltd. 168,201 1,120
Qantas Airways, Ltd............ 312,243 646
QBE Insurance Group, Ltd....... 161,673 1,003
Rinker Group, Ltd.............. 240,599 825
Santos Ltd..................... 155,030 629
Seven Network, Ltd............. 40,066 138
Southcorp Ltd.................. 197,966 370
WMC Resources, Ltd. (b)........ 300,100 724
---------
12,519
---------
Austria (0.1%)
Voestalpine AG................. 6,138 246
Wienerberger AG................ 7,637 140
---------
386
---------
Belgium (0.9%)
Algemene Maatschappij voor
Nijverheidskredit NV......... 25,600 1,052
Bekaert NV..................... 5,300 252
Delhaize Group................. 22,000 707
Tessenderlo Chemie NV.......... 3,800 115
Umicore........................ 2,900 156
---------
2,282
---------
Denmark (0.7%)
Codan A/S (b).................. 3,750 83
Danisco A/S.................... 4,620 164
Danske Bank A/S................ 50,500 925
Jyske Bank A/S (b)............. 2,710 110
TDC A/S........................ 17,960 516
---------
1,798
---------
Finland (1.9%)
Fortum Oyj..................... 261,437 2,016
Kemira Oyj..................... 51,800 429
Kesko Oyj...................... 47,600 597
M-real Oyj..................... 85,300 701
Metso Corp..................... 24,388 233
Outokumpu Oyj.................. 73,450 670
Stora Enso Oyj, R Shares....... 13,400 169
UPM-Kymmene Oyj................ 7,800 127
---------
4,942
---------
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
France (9.3%)
Air France............................ 24,300 $ 363
Alstom (b)............................ 32,900 115
Assurances Generales de France........ 20,700 988
AXA................................... 195,592 3,369
BNP Paribas SA........................ 6,167 335
Cap Gemini SA (b)..................... 13,900 556
Ciments Francais SA................... 3,900 227
Compagnie de Saint-Gobain............. 36,800 1,467
Compagnie Gernerale des Etablissements
Michelin............................. 15,400 558
Credit Agricole SA.................... 43,900 837
Esso S.A.F............................ 1,000 97
Euler & Hermes SA..................... 4,100 157
Faurecia.............................. 2,600 183
Financiere Marc de Lacharriere........ 3,900 107
France Telecom SA (b)................. 109,600 2,898
Havas SA.............................. 32,900 145
Imerys SA............................. 1,600 245
Lafarge SA............................ 14,350 962
Lagardere S.C.A....................... 15,000 669
Pechiney SA, A Shares................. 9,000 461
Pinault-Printemps Redoute SA.......... 500 40
PSA Peugeot Citroen................... 28,700 1,269
Remy Cointreau SA..................... 4,800 140
Renault SA............................ 29,800 1,659
Rexel SA.............................. 5,100 183
Rue Imperiale......................... 940 145
Schneider Electric SA................. 25,220 1,355
Scor SA (b)........................... 15,100 79
Societe Fonciere Lyonnaise............ 3,100 106
Societe Generale, A Shares............ 10,600 744
Sophia................................ 3,100 114
Suez SA............................... 27,100 433
Technip-Coflexip SA................... 2,300 196
Thomson............................... 30,300 477
Valeo SA.............................. 8,400 307
Vivendi Universal SA (b).............. 118,800 2,090
Wendel Investissement................. 6,000 184
---------
24,260
---------
Germany (6.5%)
AMG Generali Holding AG............... 2,300 138
Bayer AG.............................. 60,600 1,441
Bayerische Hypo-und Vereinsbank AG (b) 45,900 823
Celanese AG........................... 5,200 145
Commerzbank AG........................ 47,700 721
DaimlerChrysler AG.................... 85,000 3,052
Deutsche Bank AG...................... 54,700 3,553
Deutsche Lufthansa AG................. 25,900 329
E.On AG............................... 34,600 1,791
Fraport AG (b)........................ 8,200 209
Fresenius Medical Care AG............. 3,500 181
HeidelbergCement AG (b)............... 6,041 181
Heidelberger Druckmaschinen AG........ 6,600 189
Hochtief AG........................... 5,350 107
Infineon Technologies AG (b).......... 75,700 970
KarstadtQuelle AG..................... 4,700 98
Continued
58
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
--------- ---------
COMMON STOCKS, continued
Germany, continued
Linde AG.................................... 9,900 $ 422
MAN AG...................................... 12,850 256
Merck KGaA.................................. 4,200 114
MG Technologies AG.......................... 18,300 190
ThyssenKrupp AG............................. 45,200 589
TUI AG...................................... 15,650 232
Volkswagen AG............................... 27,850 1,194
---------
16,925
---------
Greece (0.4%)
Agricultural Bank of Greece (b)............. 30,900 274
Bank of Greece.............................. 1,200 149
Commercial Bank of Greece................... 12,300 262
Hellenic Petroleum SA....................... 37,800 279
Intracom SA................................. 13,000 104
---------
1,068
---------
Hong Kong (1.5%)
Cheung Kong Holdings, Ltd................... 46,000 302
Hang Lung Group, Ltd........................ 158,000 146
Henderson Land Development Co., Ltd......... 265,000 868
Hysan Development Co., Ltd.................. 156,952 134
Kerry Properties, Ltd....................... 141,713 151
New World Development Co., Ltd.............. 302,806 132
Shagri-La Asia, Ltd......................... 334,000 266
Sino Land Co., Ltd.......................... 600,374 225
Sun Hung Kai Properties, Ltd................ 19,000 113
Swire Pacific, Ltd.......................... 144,000 664
Wharf Ltd................................... 335,000 655
Wheelock & Co., Ltd......................... 312,000 282
---------
3,938
---------
Ireland (0.8%)
CRH PLC..................................... 67,518 1,271
Elan Corp. PLC (b).......................... 100,566 345
Irish Life & Permanent PLC.................. 34,165 377
---------
1,993
---------
Italy (3.9%)
Alitalia S.p.A (b).......................... 150,000 36
Banca Intesa S.p.A.......................... 641,650 2,153
Banca Nazionale del Lavoro S.p.A. (b)....... 450,000 749
Banca Popolare de Lodi S.c.r.l.............. 43,973 405
Banca Popolare di Milano S.c.r.l............ 80,000 360
Beni Stabili S.p.A.......................... 355,000 178
Buzzi Unicem S.p.A.......................... 20,000 160
Capitalia S.p.A. (b)........................ 355,000 699
e. Biscom (b)............................... 10,000 339
Fiat S.p.A. (b)............................. 90,000 597
Fondiaria-SAI S.p.A......................... 12,500 193
Ifil S.p.A. (b)............................. 53,000 125
Italcementi S.p.A........................... 37,000 425
Olivetti S.p.A. (b)......................... 1,837,500 2,230
Parmalat Finanziaria S.p.A.................. 130,000 412
Pirelli S.p.A. (b).......................... 400,000 410
Societa' Cattolica di Assicurazioni S.c.r.l. 9,900 259
Tiscali S.p.A. (b).......................... 74,000 406
---------
10,136
---------
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Japan (20.4%)
77th Bank, Ltd........................... 50,000 $ 208
Acom Co., Ltd............................ 23,700 894
Aioi Insurance Co., Ltd.................. 110,000 252
Aisin Seiki Co., Ltd..................... 42,200 615
Amada Co., Ltd........................... 44,000 150
Aoyama Trading Co., Ltd.................. 9,800 130
Asahi Breweries, Ltd..................... 42,000 246
Asahi Kasei Corp......................... 210,000 638
Asahi National Broadcasting Co., Ltd..... 146 172
Asatsu-dk, Inc........................... 6,800 136
Autobacs Seven Co., Ltd.................. 4,900 87
Awa Bank, Ltd............................ 31,000 152
Bank of Fukuoka, Ltd..................... 92,000 325
Bank of Kyoto, Ltd....................... 43,000 200
Bank of Nagoya, Ltd...................... 26,000 119
Benesse Corp............................. 14,200 237
Chiba Bank, Ltd.......................... 123,000 402
Chudenko Corp............................ 8,500 108
Chugoku Bank, Ltd........................ 35,000 247
Citizen Watch Co., Ltd................... 41,000 264
Coca-Cola West Japan Co., Ltd............ 15,300 247
Cosmo Oil Co., Ltd....................... 83,000 128
Dai Nippon Printing Co., Ltd............. 63,000 741
Daicel Chemical Industries, Ltd.......... 48,000 192
Daihatsu Motor Co., Ltd.................. 56,000 189
Dainippon Ink & Chemicals, Inc........... 115,000 229
Daishi Bank, Ltd......................... 50,000 164
Daiwa House Industry Co., Ltd............ 80,000 577
Denso Corp............................... 114,300 1,897
Ebara Corp............................... 40,000 159
Ezaki Glico Co., Ltd..................... 19,000 105
Fuji Electric Co., Ltd................... 95,000 194
Fuji Fire & Marine Insurance Co., Ltd.... 71,000 128
Fuji Heavy Industries, Ltd............... 108,000 530
Fuji Photo Film Co., Ltd................. 19,000 566
Fujikura Ltd............................. 50,000 179
Fujitsu Ltd.............................. 268,000 1,103
Fukuyama Transporting Co., Ltd........... 36,000 119
Furukawa Electric Co., Ltd............... 86,000 298
Gunma Bank, Ltd.......................... 74,000 303
Gunze Ltd................................ 31,000 111
Hachijuni Bank, Ltd...................... 79,000 301
Hanshin Electric Railway Co., Ltd........ 50,000 154
Higo Bank, Ltd........................... 33,000 157
Hitachi Cable, Ltd....................... 49,000 137
Hitachi Ltd.............................. 487,000 2,157
Hitachi Maxell, Ltd...................... 13,000 184
Hitachi Metals, Ltd...................... 47,000 141
Hokkoku Bank, Ltd........................ 46,000 213
House Foods Corp......................... 14,000 126
Hyakugo Bank, Ltd........................ 33,000 144
Hyakujushi Bank, Ltd..................... 47,000 282
Ishikawajima-Harima Heavy Industries Co.,
Ltd..................................... 189,000 224
Iyo Bank, Ltd............................ 47,000 268
Joyo Bank, Ltd........................... 126,000 337
Continued
59
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS, continued
Japan, continued
Juroku Bank, Ltd........................ 48,000 $ 186
Kagoshima Bank, Ltd..................... 17,000 71
Kamigumi Co., Ltd....................... 36,000 178
Kawasaki Heavy Industries, Ltd.......... 203,000 211
Kinden Corp............................. 35,000 116
Kirin Brewery Co., Ltd.................. 143,000 905
Kissei Pharmaceutical Co., Ltd.......... 9,000 129
Kobe Steel, Ltd. (b).................... 378,000 364
Kokusai Securities Co., Ltd............. 47,000 341
Kokuyo Co., Ltd......................... 18,700 167
Komatsu Ltd............................. 140,000 686
Komori Corp............................. 9,000 100
Kuraray Co., Ltd........................ 55,000 369
Makita Corp............................. 20,000 159
Marubeni Corp........................... 213,000 265
Marui Co., Ltd.......................... 56,000 538
Maruichi Steel Tube, Ltd................ 13,000 129
Matsushita Electric Industrial Co., Ltd. 328,000 3,878
Matsushita Electric Works, Ltd.......... 107,000 678
Meiji Seika Kaisha, Ltd................. 50,000 159
Michinoku Bank, Ltd..................... 20,000 111
Mitsubishi Gas Chemical Co., Inc........ 63,000 131
Mitsubishi Heavy Industries, Ltd........ 492,000 1,306
Mitsubishi Logistics Corp............... 22,000 133
Mitsubishi Materials Corp. (b).......... 165,000 208
Mitsubishi Tokyo Financial Group, Inc... 297 1,321
Mitsui Trust Holdings, Inc.............. 119,000 282
Mizuho Financial Group, Inc. (b)........ 1,376 1,233
Nanto Bank, Ltd......................... 36,000 116
NGK Insulators, Ltd..................... 29,000 161
NGK Spark Plug Co., Ltd................. 33,000 262
Nichicon Corp........................... 10,700 115
Nikko Cordial Corp...................... 152,000 657
Nippon Broadcasting System, Inc......... 4,500 144
Nippon Electric Glass Co., Ltd.......... 21,000 229
Nippon Meat Packers, Inc................ 33,000 311
Nippon Oil Corp......................... 221,000 902
Nippon Sheet Glass Co., Ltd............. 58,000 161
Nippon Shokubai Co., Ltd................ 25,000 150
Nishimatsu Construction Co., Ltd........ 36,000 111
Nissay Dowa General Insurance Co., Ltd.. 54,000 192
Nisshin Seifun Group, Inc............... 31,000 209
Nisshinbo Industries, Inc............... 28,000 125
NSK Ltd................................. 80,000 253
Obayashi Corp........................... 105,000 349
Onward Kashiyama Co., Ltd............... 25,000 224
Promise Co., Ltd........................ 19,500 709
Resona Holdings, Inc.................... 822,000 607
San-in Godo Bank, Ltd................... 23,000 157
Sanwa Shutter Corp...................... 18,000 65
Sanyo Shinpan Finance Co., Ltd.......... 5,000 159
Sapporo Hokuyo Holdings, Inc............ 48 221
Seino Transportation Co., Ltd........... 23,000 129
Sekisui Chemical Co., Ltd............... 71,000 247
Sekisui House, Ltd...................... 103,000 807
Shiga Bank, Ltd......................... 32,000 117
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Japan, continued
Shimachu Co., Ltd...................... 6,700 $ 106
Shimizu Corp........................... 23,000 69
Shinko Securities Co., Ltd. (b)........ 107,000 215
Shizuoka Bank, Ltd..................... 109,000 685
Shohkoh Fund & Co., Ltd................ 1,500 152
Softbank Corp.......................... 41,600 1,201
Sumitomo Bakelite Co., Ltd............. 24,000 106
Sumitomo Corp.......................... 107,000 561
Sumitomo Electric Industries, Ltd...... 109,000 800
Sumitomo Forestry Co., Ltd............. 23,000 110
Sumitomo Metal Industries, Ltd......... 479,000 318
Sumitomo Metal Mining Co., Ltd......... 47,000 176
Sumitomo Realty & Development Co., Ltd. 54,000 256
Sumitomo Rubber Industries, Ltd........ 32,000 139
Sumitomo Trust & Banking Co., Ltd...... 121,000 439
Taiheiyo Cement Corp................... 138,000 218
Taiyo Yuden Co., Ltd................... 16,000 172
Takashimaya Co., Ltd................... 44,000 219
TDK Corp............................... 11,000 604
Teijin Ltd............................. 135,000 318
Teikoku Oil Co., Ltd................... 44,000 150
Toho Bank, Ltd......................... 16,000 65
Tokyo Broadcasting System, Inc......... 14,000 157
Tokyo Style Co., Ltd................... 13,000 105
Toppan Printing Co., Ltd............... 93,000 710
Toray Industries, Inc.................. 204,000 478
Tostem Inax Holding Corp............... 27,000 366
Toyo Seikan Kaisha, Ltd................ 31,000 297
Toyota Auto Body Co., Ltd.............. 11,000 116
Toyota Industries Corp................. 45,700 739
UFJ Holdings, Inc...................... 724 1,435
UNY Co., Ltd........................... 24,000 203
Wacoal Corp............................ 19,000 144
Yamaguchi Bank, Ltd.................... 26,000 211
Yamazaki Baking Co., Ltd............... 29,000 173
Yokohama Rubber Co., Ltd............... 45,000 116
---------
53,138
---------
Netherlands (5.6%)
ABN AMRO Holding NV.................... 94,100 1,808
Aegon NV............................... 168,598 2,188
DSM NV................................. 11,400 512
ING Groep NV........................... 185,300 3,752
Koninklijke Ahold NV................... 105,200 855
Koninklijke KPN NV (b)................. 231,600 1,588
Koninklijke Numico NV.................. 18,747 290
Koninklijke Philips Electronics NV..... 122,350 2,579
Koninklijke Vendex KBB NV.............. 5,700 59
NV Holdingsmaatschappij De Telegraaf... 3,200 54
Oce NV................................. 7,000 78
Vedior NV.............................. 13,100 148
VNU NV................................. 22,974 743
---------
14,654
---------
New Zealand (0.2%)
Auckland International Airport, Ltd.... 67,870 236
Carter Holt Harvey, Ltd................ 317,000 300
---------
536
---------
Continued
60
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- ---------
COMMON STOCKS, continued
Norway (0.4%)
DnB Holding ASA....................... 57,600 $ 298
Norske Skogsindustrier ASA............ 27,000 464
Storebrand ASA (b).................... 68,000 299
---------
1,061
---------
Portugal (0.3%)
Portugal Telecom, SGPS, SA............ 110,300 740
Sonae, SGPS, SA (b)................... 148,000 78
---------
818
---------
Singapore (0.8%)
DBS Group Holdings, Ltd............... 102,000 661
Fraser & Neave, Ltd................... 14,000 77
Keppel Corp., Ltd..................... 49,000 141
Neptune Orient Lines, Ltd. (b)........ 82,000 78
Oversea-Chinese Banking Corp., Ltd.... 77,000 469
United Overseas Bank, Ltd............. 94,000 706
---------
2,132
---------
Spain (3.6%)
Acesa Infraestructuras SA............. 13,100 177
Banco Bilbao Vizcaya Argentaria SA.... 99,000 1,085
Banco de Andalucia SA................. 900 64
Banco de Sabadell SA.................. 9,300 160
Banco Pastor SA....................... 2,400 63
Banco Santander Central Hispano SA.... 247,900 2,232
Cementos Portland SA.................. 1,200 54
Corporacion Mapfre SA................. 8,100 93
Ebro Puleva SA........................ 7,000 65
Endesa SA............................. 55,000 872
Iberia Lineas Aereas de Espana SA..... 41,000 85
Inmobiliaria Colonial SA.............. 2,500 46
Inmobiliaria Urbis SA................. 5,800 42
Red Electrica de Espana............... 6,000 79
Repsol YPF SA......................... 63,400 1,017
Sociedad General de Aguas de Barcelona
SA................................... 6,262 83
Sol Melia SA.......................... 5,700 36
Telefonica SA......................... 257,754 3,014
Vallehermoso SA....................... 6,900 78
---------
9,345
---------
Sweden (2.1%)
Drott AB, B Shares.................... 9,700 128
Gambro AB, A Shares................... 26,500 171
Gambro AB, B Shares................... 10,500 68
Holmen AB, B Shares................... 8,400 240
Industriforvaltnings Kinnevik AB,
B Shares............................. 6,900 134
Nordea AB............................. 334,300 1,624
Skandia Forsakrings AB................ 108,400 338
Skandinaviska Enskilda Banken AB...... 74,300 805
Skanska AB, B Shares.................. 4,900 31
SSAB, Series A........................ 7,800 101
SSAB, Series B........................ 2,000 25
Tele2 AB, A Shares (b)................ 2,300 81
Tele2 AB, B Shares (b)................ 13,300 477
Trelleborg AB, B Shares............... 9,000 111
Continued
Shares Value
------- ---------
COMMON STOCKS, continued
Sweden, continued
Volvo AB, A Shares................... 15,500 $ 365
Volvo AB, B Shares................... 33,900 830
---------
5,529
---------
Switzerland (7.3%)
Baloise Holding, Ltd................. 29,400 1,028
Ciba Specialty Chemicals AG.......... 9,400 636
Clariant AG (b)...................... 47,100 540
Compagnie Financiere Richemont AG.... 175,900 3,190
Credit Suisse Group.................. 130,500 4,102
Ems-Chemie Holding AG (b)............ 23 88
Givaudan SA.......................... 200 82
Holcim Ltd........................... 54,250 2,252
Luzerner Kantonalbank................ 2,393 289
PSP Swiss Property AG................ 4,000 469
Rieter Holding AG.................... 1,590 306
SIG Holding AG....................... 3,000 323
Swiss Life Holding (b)............... 10,820 1,269
Syngenta AG.......................... 40,600 2,234
Unaxis Holding AG.................... 7,000 630
Valora Holding AG.................... 1,430 287
Vontobel Holding AG.................. 14,200 251
Zurich Financial Services AG......... 8,200 1,018
---------
18,994
---------
United Kingdom (25.9%)
Abbey National PLC................... 409,396 3,562
Aggregate Industries PLC............. 310,752 437
Amvescap PLC......................... 96,000 721
Arriva PLC........................... 48,410 303
Associated British Foods PLC......... 126,000 1,080
Associated British Ports Holdings PLC 71,400 439
Aviva PLC............................ 548,000 4,546
BAA PLC.............................. 258,000 1,945
BAE Systems PLC...................... 731,996 1,815
Barratt Developments PLC............. 57,000 446
BBA Group PLC........................ 116,000 435
Bellway PLC.......................... 12,000 125
Berkeley Group PLC................... 35,610 487
Bradford & Bingley PLC............... 74,000 378
Brambles Industries PLC.............. 142,000 418
British Airways PLC (b).............. 298,000 828
British Land Co. PLC................. 135,071 1,088
Brixton PLC.......................... 55,200 205
Cable & Wireless PLC................. 657,646 1,226
Canary Wharf Group PLC............... 161,200 653
Celltech Group PLC (b)............... 45,000 248
Chelsfield PLC....................... 77,000 384
COLT Telecom Group PLC (b)........... 416,000 572
Corus Group PLC (b).................. 863,900 347
Debenhams PLC........................ 62,697 437
easyJet PLC (b)...................... 108,000 401
Friends Provident PLC................ 418,000 922
Galen Holdings PLC................... 41,000 408
George Wimpey PLC.................... 93,728 533
Granada PLC.......................... 619,505 996
Greene King PLC...................... 16,000 213
Continued
61
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
---------- ---------
COMMON STOCKS, continued
United Kingdom, continued
Hammerson PLC........................... 76,100 $ 651
Hanson PLC.............................. 179,000 1,054
Hilton Group PLC........................ 436,100 1,376
Inchcape PLC............................ 11,000 194
InterContinental Hotels Group PLC (b)... 178,389 1,336
International Power PLC (b)............. 308,400 688
J Sainsbury PLC......................... 536,993 2,285
Lex Service PLC......................... 16,900 152
Liberty International PLC............... 75,374 774
Logica PLC.............................. 97,950 263
Millennium & Copthorne Hotels PLC....... 78,000 328
Mitchells & Butlers PLC (b)............. 178,389 686
mmO2 PLC (b)............................ 2,392,000 2,067
Pearson PLC............................. 174,000 1,631
Peninsular & Oriental Steam Navigation
Co..................................... 162,000 600
Persimmon PLC........................... 52,339 440
Pilkington PLC.......................... 314,151 415
RMC Group PLC........................... 73,000 638
Rolls-Royce PLC......................... 450,100 1,103
Royal & Sun Alliance Insurance Group
PLC.................................... 397,400 969
Safeway PLC............................. 255,211 1,080
Schroders PLC........................... 49,000 520
Scottish Power PLC...................... 351,325 2,050
Slough Estates PLC...................... 114,800 644
Stagecoach Group PLC.................... 364,000 472
Standard Chartered PLC.................. 186,028 2,401
Tate & Lyle PLC......................... 64,000 356
Taylor Woodrow PLC...................... 133,370 464
Trinity Mirror PLC...................... 80,510 622
Vodafone Group PLC...................... 6,573,300 12,467
WH Smith Group PLC...................... 62,000 398
Whitbread PLC........................... 81,000 950
Wilson Bowden PLC....................... 18,000 287
Woolworths Group PLC.................... 204,000 131
---------
67,090
---------
TOTAL COMMON STOCKS..................... 253,544
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (6.2%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 16,071,513 16,072
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 16,072
---------
TOTAL INVESTMENTS
(Cost $257,102) (a) -- 103.7%......... 269,616
Liabilities in excess of other assets --
(3.7)%................................. (9,359)
---------
NET ASSETS -- 100.0%.................... $ 260,257
=========
Continued
- --------
(a)Cost for federal income tax purposes is $266,837. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $ 30,706
Unrealized depreciation.... (20,068)
--------
Net unrealized appreciation $ 10,638
========
(b)Represents non-income producing security.
PLC -- Public Limited Company
The table below sets forth the diversification of the International Equity Fund
investments by industry.
Industry Diversification Percent*
------------------------ --------
Advertising.................... 0.1%
Aerospace/Defense.............. 1.1%
Airlines....................... 1.9%
Airports Development........... 0.1%
Automobile..................... 5.4%
Banking........................ 17.8%
Beverages...................... 1.0%
Building Products.............. 5.6%
Chemicals...................... 2.9%
Computer Systems............... 0.8%
Diversified.................... 2.9%
Education...................... 0.1%
Electrical & Electronics....... 7.0%
Energy Sources................. 1.1%
Financial Services............. 3.0%
Food & Household Products...... 1.4%
Food Retailers................. 1.5%
Forest Products & Paper........ 1.0%
Hotels & Lodging............... 1.2%
Insurance...................... 9.6%
Machinery...................... 1.5%
Materials & Commodities........ 2.8%
Medical Products............... 0.3%
Office Equipment............... 0.1%
Oil & Gas Production & Services 2.3%
Pharmaceutical................. 0.5%
Photographic Products.......... 0.2%
Publishing..................... 4.0%
Real Estate.................... 4.0%
Retail......................... 4.1%
Telecommunications............. 11.0%
Transportation................. 0.9%
Water.......................... 0.2%
-----
Total Common Stocks........ 97.4%
=====
* Percentages indicated are based on net assets.
See notes to financial statements.
62
BALANCED FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
----------- ---------
COMMON STOCKS (56.0%)
Aerospace/Defense (2.0%)
Boeing Co.................... $ 41,107 $ 1,361
Raytheon Co.................. 40,142 1,232
United Technologies Corp..... 8,780 661
---------
3,254
---------
Apparel (0.4%)
Liz Claiborne, Inc........... 19,548 673
---------
Auto Trucks & Parts (0.4%)
PACCAR, Inc.................. 7,695 594
---------
Banking (2.3%)
Bank of America Corp......... 33,106 2,733
U.S. Bancorp................. 37,139 911
---------
3,644
---------
Chemicals -- Specialty (0.8%)
Dow Chemical Co.............. 13,705 484
E.I. du Pont de Nemours & Co. 19,190 843
---------
1,327
---------
Computer Hardware (3.8%)
Dell, Inc. (b)............... 78,439 2,642
Hewlett-Packard Co........... 129,678 2,745
IBM Corp..................... 9,260 752
---------
6,139
---------
Computer Software & Services (3.9%)
Cisco Systems, Inc. (b)...... 233,554 4,559
Microsoft Corp............... 63,441 1,675
---------
6,234
---------
Consumer Goods (2.1%)
Newell Rubbermaid, Inc....... 13,319 315
Procter & Gamble Co.......... 35,598 3,128
---------
3,443
---------
Distribution/Wholesale (0.3%)
Genuine Parts Co............. 16,834 521
---------
Diversified Manufacturing (0.8%)
Honeywell International, Inc. 31,581 893
Illinois Tool Works, Inc..... 6,447 449
---------
1,342
---------
Entertainment (0.3%)
Walt Disney Co............... 22,375 490
---------
Financial Services (10.8%)
Bear Stearns Cos., Inc....... 7,474 501
Capital One Financial Corp... 26,695 1,279
CIT Group, Inc............... 41,795 1,165
Citigroup, Inc............... 84,083 3,766
Freddie Mac.................. 20,487 1,001
Goldman Sachs Group, Inc..... 42,246 3,681
H & R Block, Inc............. 31,143 1,320
J.P. Morgan Chase & Co....... 53,672 1,881
Moody's Corp................. 8,040 416
Washington Mutual, Inc....... 62,147 2,454
---------
17,464
---------
Continued
Shares Value
----------- ---------
COMMON STOCKS, continued
Food Products, Processing, & Packaging (1.8%)
Sara Lee Corp....................... $ 155,301 $ 2,903
---------
Forest & Paper Products (0.8%)
International Paper Co.............. 31,864 1,247
---------
Health Care (2.7%)
Johnson & Johnson................... 13,521 700
WellPoint Health Networks, Inc. (b). 43,345 3,626
---------
4,326
---------
Health Care -- Drugs (2.3%)
Amgen, Inc. (b)..................... 54,041 3,760
---------
Industrial Automation -- Robotics (0.5%)
Rockwell Automation, Inc............ 28,155 728
---------
Insurance (1.0%)
AFLAC, Inc.......................... 48,380 1,552
---------
Media (0.3%)
McGraw Hill Cos., Inc............... 7,028 427
---------
Medical Products (0.6%)
Becton, Dickinson & Co.............. 16,589 608
Zimmer Holdings, Inc. (b)........... 8,113 388
---------
996
---------
Multimedia (0.9%)
AOL Time Warner, Inc. (b)........... 98,810 1,525
---------
Newspapers (0.3%)
Gannett Co., Inc.................... 5,440 418
---------
Oil & Gas Exploration, Production, &
Services (3.4%)
BP PLC - ADR........................ 19,516 811
ChevronTexaco Corp.................. 20,881 1,506
Exxon Mobil Corp.................... 88,030 3,132
---------
5,449
---------
Pharmaceuticals (3.1%)
Bristol-Myers Squibb Co............. 46,603 1,221
Genentech, Inc. (b)................. 37,555 3,033
Merck & Co., Inc.................... 13,938 770
---------
5,024
---------
Raw Materials (0.4%)
Avery Dennison Corp................. 10,830 584
---------
Restaurants (2.5%)
McDonald's Corp..................... 27,003 621
Outback Steakhouse, Inc............. 91,889 3,432
---------
4,053
---------
Retail (2.3%)
Dollar General Corp................. 67,967 1,252
Home Depot, Inc..................... 27,193 848
Limited Brands...................... 64,181 1,072
Office Depot, Inc. (b).............. 34,727 576
---------
3,748
---------
Continued
63
BALANCED FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
COMMON STOCKS, continued
Semiconductors (0.4%)
Texas Instruments, Inc................ $ 35,173 $ 664
---------
Telecommunications -- Equipment (0.6%)
Harris Corp........................... 27,999 906
---------
Travel (0.7%)
Carnival Corp......................... 34,466 1,183
---------
Utilities -- Electric & Gas (1.7%)
American Electric Power Co., Inc...... 37,065 1,041
Dominion Resources, Inc............... 14,084 846
Southern Co........................... 29,763 846
---------
2,733
---------
Utilities -- Telecommunications (1.8%)
BellSouth Corp........................ 34,398 876
SBC Communications, Inc............... 40,583 948
Verizon Communications, Inc........... 32,023 1,116
---------
2,940
---------
TOTAL COMMON STOCKS................... 90,291
---------
CORPORATE BONDS (17.5%)
Aluminum (0.6%)
Alcoa, Inc., 7.38%, 8/1/10............ 900 1,030
---------
Banking (3.4%)
Branch Banking & Trust,
4.88%, 1/15/13....................... 500 489
Northern Trust Co., 7.10%, 8/1/09..... 1,000 1,148
SunTrust Banks, Inc., 7.38%, 7/1/06... 2,000 2,268
Wachovia Corp., 6.63%, 11/15/06....... 1,475 1,651
---------
5,556
---------
Brokerage Services (0.6%)
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08........................ 1,000 978
---------
Consumer Goods (3.9%)
Coca-Cola Co., 4.00%, 6/1/05.......... 1,000 1,037
Procter & Gamble Co., 5.25%, 9/15/03.. 2,000 2,010
Unilever Capital Corp., 6.88%, 11/1/05 2,000 2,197
Unilever Capital Corp., 7.13%, 11/1/10 800 922
---------
6,166
---------
Data Processing -- Management (1.3%)
First Data Corp., 6.75%, 7/15/05...... 2,000 2,179
---------
Electrical & Electronic (0.9%)
General Electric Co., 5.00%, 2/1/13... 1,500 1,470
---------
Financial Services (2.0%)
Boeing Capital Corp., 7.38%, 9/27/10.. 1,000 1,119
Commercial Credit Co., 7.88%, 7/15/04. 1,000 1,061
Ford Motor Credit Corp.,
6.13%, 3/20/04....................... 1,000 1,021
---------
3,201
---------
Food Products & Services (0.7%)
Sysco Corp., 4.75%, 7/30/05........... 1,000 1,050
---------
Continued
Shares or
Principal
Amount Value
----------- ---------
CORPORATE BONDS, continued
Insurance (1.9%)
Prudential Funding LLC,
6.60%, 5/15/08 (c)................... $ 2,000 $ 2,222
St. Paul Cos., Inc., 5.75%, 3/15/07... 750 805
---------
3,027
---------
Newspapers (0.4%)
Times Mirror Co., 7.45%, 10/15/09..... 500 586
---------
Oil & Gas Exploration, Production, &
Services (1.0%)
Conoco Inc., 6.35%, 4/15/09........... 1,500 1,673
---------
Retail (0.8%)
McDonald's Corp., 5.75%, 3/1/12....... 1,200 1,249
---------
TOTAL CORPORATE BONDS................. 28,165
---------
MUNICIPAL BONDS (2.6%)
Illinois (2.6%)
Chicago Public Building, 7.00%, 1/1/06 3,800 4,195
---------
TOTAL MUNICIPAL BONDS................. 4,195
---------
U.S. GOVERNMENT
AGENCIES (7.0%)
Fannie Mae (1.6%)
6.21%, 11/7/07........................ 2,300 2,556
---------
Freddie Mac (2.3%)
5.83%, 2/9/06......................... 2,000 2,165
6.25%, 3/5/12, Callable 3/5/07 @ 100.. 1,500 1,584
---------
3,749
---------
Government National Mortgage
Assoc. (3.1%)
6.00%, 6/15/33........................ 1,974 2,013
6.50%, 11/20/28-6/15/32............... 2,967 3,064
---------
5,077
---------
TOTAL U.S. GOVERNMENT
AGENCIES............................. 11,382
---------
U.S. TREASURY BONDS (5.1%)
7.50%, 11/15/16....................... 3,000 3,717
7.25%, 8/15/22........................ 1,500 1,828
6.25%, 8/15/23........................ 2,500 2,746
---------
TOTAL U.S. TREASURY BONDS............. 8,291
---------
U.S. TREASURY NOTES (4.9%)
3.25%, 5/31/04........................ 5,500 5,595
6.50%, 2/15/10........................ 2,000 2,304
---------
TOTAL U.S. TREASURY NOTES............. 7,899
---------
INVESTMENT COMPANIES (6.4%)
AmSouth Prime Money Market Fund....... 4,668,599 4,669
AmSouth U.S. Treasury Money Market
Fund................................. 5,679,306 5,679
---------
TOTAL INVESTMENT
COMPANIES............................ 10,348
---------
Continued
64
BALANCED FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
---------- --------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (12.0%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending).............................. 19,400,546 $ 19,401
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING.................... 19,401
--------
TOTAL INVESTMENTS
(Cost $158,553) (a) -- 111.5%......... 179,972
Liabilities in excess of other
assets -- (11.5)%..................... (18,513)
--------
NET ASSETS -- 100.0%................... $161,459
========
- --------
(a)Cost for federal income tax purposes is $159,235. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $21,641
Unrealized depreciation.... (905)
-------
Net unrealized appreciation $20,736
=======
(b)Represents non-income producing security.
(c)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.
ADR -- American Depositary Receipt.
See notes to financial statements.
STRATEGIC PORTFOLIOS:
AGGRESSIVE GROWTH PORTFOLIO
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- -------
INVESTMENTS IN AFFILIATES (99.8%)
Investment Companies (99.8%)
AmSouth Capital Growth Fund, I Shares........ 451,325 $ 3,945
AmSouth Enhanced Market Fund, I Shares....... 532,120 5,257
AmSouth International Equity Fund,
I Shares.................................... 300,194 2,621
AmSouth Large Cap Fund, I Shares............. 160,287 2,629
AmSouth Limited Term Bond Fund,
I Shares.................................... 103,223 1,100
AmSouth Mid Cap Fund, I Shares............... 251,506 2,626
AmSouth Prime Money Market Fund,
I Shares.................................... 275,862 276
AmSouth Select Equity Fund, I Shares......... 220,969 2,636
AmSouth Small Cap Fund, I Shares (b)......... 361,475 2,642
AmSouth Value Fund, I Shares................. 302,853 3,949
-------
TOTAL INVESTMENTS IN
AFFILIATES.................................. 27,681
-------
TOTAL INVESTMENTS
(Cost $24,325) (a) -- 99.8%................. 27,681
Other assets in excess of liabilities -- 0.2% 46
-------
NET ASSETS -- 100.0%......................... $27,727
=======
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $3,395
Unrealized depreciation.... (39)
------
Net unrealized appreciation $3,356
======
(b)Represents non-income producing security.
See notes to financial statements.
65
STRATEGIC PORTFOLIOS:
GROWTH PORTFOLIO
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- -------
INVESTMENTS IN AFFILIATES (99.7%)
Investment Companies (99.7%)
AmSouth Bond Fund, I Shares.................. 204,984 $ 2,322
AmSouth Capital Growth Fund, I Shares........ 313,282 2,738
AmSouth Enhanced Market Fund, I Shares....... 369,365 3,650
AmSouth Government Income Fund,
I Shares.................................... 257,302 2,586
AmSouth International Equity Fund,
I Shares.................................... 208,376 1,819
AmSouth Large Cap Fund, I Shares............. 111,261 1,825
AmSouth Limited Term Bond Fund,
I Shares.................................... 243,101 2,591
AmSouth Mid Cap Fund, I Shares............... 174,580 1,823
AmSouth Prime Money Market Fund,
I Shares.................................... 259,875 260
AmSouth Select Equity Fund, I Shares......... 153,383 1,830
AmSouth Small Cap Fund, I Shares (b)......... 250,913 1,834
AmSouth Value Fund, I Shares................. 210,222 2,741
-------
TOTAL INVESTMENTS IN
AFFILIATES.................................. 26,019
-------
TOTAL INVESTMENTS
(Cost $23,871) (a) -- 99.7%................. 26,019
Other assets in excess of liabilities -- 0.3% 83
-------
NET ASSETS -- 100.0%......................... $26,102
=======
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $2,287
Unrealized depreciation.... (139)
------
Net unrealized appreciation $2,148
======
(b)Represents non-income producing security.
See notes to financial statements.
STRATEGIC PORTFOLIOS:
GROWTH AND INCOME PORTFOLIO
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
--------- -------
INVESTMENTS IN AFFILIATES (99.8%)
Investment Companies (99.8%)
AmSouth Bond Fund, I Shares.................. 1,031,707 $11,689
AmSouth Capital Growth Fund, I Shares........ 796,434 6,961
AmSouth Enhanced Market Fund, I Shares....... 939,010 9,277
AmSouth Government Income Fund,
I Shares.................................... 1,248,773 12,550
AmSouth International Equity Fund,
I Shares.................................... 529,739 4,625
AmSouth Large Cap Fund, I Shares............. 282,852 4,639
AmSouth Limited Term Bond Fund,
I Shares.................................... 1,179,851 12,576
AmSouth Mid Cap Fund, I Shares............... 443,822 4,634
AmSouth Prime Money Market Fund,
I Shares.................................... 840,841 841
AmSouth Select Equity Fund, I Shares......... 389,935 4,652
AmSouth Small Cap Fund, I Shares (b)......... 637,879 4,663
AmSouth Value Fund, I Shares................. 534,433 6,969
-------
TOTAL INVESTMENTS IN
AFFILIATES.................................. 84,076
-------
TOTAL INVESTMENTS
(Cost $78,636) (a) -- 99.8%................. 84,076
Other assets in excess of liabilities -- 0.2% 168
-------
NET ASSETS -- 100.0%......................... $84,244
=======
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $6,114
Unrealized depreciation.... (674)
------
Net unrealized appreciation $5,440
======
(b)Represents non-income producing security.
See notes to financial statements.
66
STRATEGIC PORTFOLIOS: MODERATE
GROWTH AND INCOME PORTFOLIO
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares Value
------- -------
INVESTMENTS IN AFFILIATES (99.8%)
Investment Companies (99.8%)
AmSouth Bond Fund, I Shares.................. 493,254 $ 5,589
AmSouth Capital Growth Fund, I Shares........ 242,309 2,118
AmSouth Enhanced Market Fund, I Shares....... 285,687 2,823
AmSouth Government Income Fund,
I Shares.................................... 557,230 5,600
AmSouth International Equity Fund,
I Shares.................................... 161,169 1,407
AmSouth Large Cap Fund, I Shares............. 86,055 1,411
AmSouth Limited Term Bond Fund,
I Shares.................................... 526,476 5,611
AmSouth Mid Cap Fund, I Shares............... 135,029 1,410
AmSouth Prime Money Market Fund,
I Shares.................................... 312,668 313
AmSouth Select Equity Fund, I Shares......... 118,635 1,415
AmSouth Small Cap Fund, I Shares (b)......... 194,070 1,419
AmSouth Value Fund, I Shares................. 162,597 2,120
-------
TOTAL INVESTMENTS IN
AFFILIATES.................................. 31,236
-------
TOTAL INVESTMENTS
(Cost $29,821) (a) -- 99.8%................. 31,236
Other assets in excess of liabilities -- 0.2% 64
-------
NET ASSETS -- 100.0%......................... $31,300
=======
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $1,748
Unrealized depreciation.... (333)
------
Net unrealized appreciation $1,415
======
(b)Represents non-income producing security.
See notes to financial statements.
GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
U.S. GOVERNMENT AGENCIES (76.6%)
Fannie Mae (5.5%)
5.63%, 5/14/04...................... $ 500 $ 517
5.75%, 6/15/05...................... 250 268
3.00%, 8/7/06, Callable 8/7/03 @100. 4,000 4,001
6.44%, 8/14/07, MTN................. 500 559
6.00%, 5/15/08...................... 7,000 7,707
7.50%, 4/1/15 - 6/1/15.............. 1,427 1,530
8.00%, 7/1/15....................... 948 1,019
---------
15,601
---------
Federal Farm Credit Bank (8.2%)
5.07%, 12/15/03..................... 9,000 9,135
3.88%, 12/15/04..................... 1,000 1,030
5.75%, 9/1/05, MTN.................. 500 537
5.70%, 9/3/08....................... 7,000 7,640
5.05%, 12/27/12, Callable 12/27/05
@100............................... 5,000 4,956
---------
23,298
---------
Federal Home Loan Bank (8.8%)
3.38%, 5/14/04...................... 800 813
6.34%, 6/29/04...................... 750 785
4.13%, 11/15/04..................... 1,000 1,033
7.25%, 5/13/05...................... 10,000 10,949
5.50%, 8/15/08...................... 375 405
5.80%, 9/2/08....................... 4,000 4,392
5.82%, 3/30/09...................... 1,000 1,095
5.89%, 3/30/09...................... 5,000 5,493
---------
24,965
---------
Freddie Mac (8.1%)
3.25%, 12/15/03 - 3/14/08........... 3,500 3,486
5.00%, 1/15/04...................... 7,000 7,125
5.50%, 8/1/08....................... 1,697 1,742
6.25%, 3/5/12, Callable 3/5/07 @ 100 2,000 2,113
6.00%, 5/1/16 - 8/1/18.............. 6,018 6,197
6.50%, 5/1/31....................... 816 838
7.00%, 6/1/31....................... 1,516 1,585
---------
23,086
---------
Government National Mortgage Assoc.
(28.6%)
5.00%, 12/15/17 - 6/15/18........... 23,438 23,629
5.50%, 2/15/14 - 2/20/32............ 13,205 13,437
6.00%, 5/15/16 - 6/15/31............ 18,069 18,593
6.50%, 7/15/14 - 9/15/16............ 6,176 6,460
6.75%, 4/15/26...................... 1,326 1,391
7.00%, 8/15/11 - 12/15/30........... 6,120 6,428
7.50%, 5/15/10 - 8/20/30............ 7,552 8,035
8.00%, 7/15/26 - 6/20/30............ 2,901 3,115
8.50%, 11/15/20 - 2/15/23........... 30 32
9.00%, 6/15/18 - 9/15/22............ 190 212
9.50%, 5/15/18 - 8/15/21............ 183 201
---------
81,533
---------
Private Export Funding (6.9%)
6.31%, 9/30/04, Series C............ 2,000 2,113
6.45%, 9/30/04, Series H............ 1,000 1,058
5.34%, 3/15/06, Series M............ 990 1,062
5.53%, 4/30/06...................... 3,500 3,775
7.11%, 4/15/07, Series ZZ........... 1,200 1,364
6.49%, 7/15/07, Series B............ 2,000 2,238
Continued
67
GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
U.S. GOVERNMENT AGENCIES, continued
Private Export Funding, continued
5.75%, 1/15/08.......................... $ 4,300 $ 4,702
5.87%, 7/31/08, Series D................ 3,000 3,300
---------
19,612
---------
Sallie Mae (5.2%)
3.38%, 7/15/04.......................... 9,000 9,183
3.63%, 9/30/04, MTN..................... 3,000 3,075
5.25%, 3/15/06.......................... 2,300 2,461
---------
14,719
---------
Tennessee Valley Authority (5.3%)
5.38%, 11/13/08......................... 3,850 4,144
5.63%, 1/18/11, Series A................ 5,000 5,333
6.75%, 11/1/25.......................... 5,000 5,550
---------
15,027
---------
TOTAL U.S. GOVERNMENT
AGENCIES............................... 217,841
---------
U.S. TREASURY NOTES (17.8%)
5.75%, 8/15/03 - 8/15/10................ 19,000 19,982
2.75%, 9/30/03 - 10/31/03............... 16,000 16,065
7.50%, 2/15/05.......................... 2,000 2,180
5.63%, 2/15/06.......................... 2,000 2,175
3.50%, 11/15/06......................... 1,000 1,029
4.38%, 5/15/07.......................... 1,500 1,584
3.25%, 8/15/07.......................... 7,500 7,589
---------
TOTAL U.S. TREASURY NOTES............... 50,604
---------
INVESTMENT COMPANIES (4.7%)
AIM Treasury Money Market Fund.......... 13,157,735 13,158
AmSouth Treasury Reserve Money
Market Fund............................ 200,100 200
---------
TOTAL INVESTMENT
COMPANIES.............................. 13,358
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (24.4%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 69,494,684 69,495
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 69,495
---------
TOTAL INVESTMENTS
(Cost $341,576) (a) -- 123.5%.......... 351,298
Liabilities in excess of other assets --
(23.5)%................................ (66,902)
---------
NET ASSETS -- 100.0%.................... $ 284,396
=========
- --------
(a)Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
Unrealized appreciation.... $10,726
Unrealized depreciation.... (1,004)
-------
Net unrealized appreciation $ 9,722
=======
MTN-- Medium Term Note
See notes to financial statements.
LIMITED TERM BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares of
Principal
Amount Value
------------ ---------
CORPORATE BONDS (49.1%)
Automotive -- Finance (2.8%)
Ford Motor Credit Co., 6.70%, 7/16/04. $ 3,500 $ 3,621
Toyota Motor Credit Corp.,
5.65%, 1/15/07....................... 3,000 3,251
---------
6,872
---------
Banking (5.3%)
Bank of New York, 3.90%, 9/1/07....... 1,000 1,014
First Union Corp., 6.88%, 9/15/05..... 2,000 2,186
FleetBoston Financial Corp.,
4.88%, 12/1/06....................... 2,000 2,110
National City Bank of Indiana,
2.38%, 8/15/06....................... 2,000 1,990
Northern Trust Co., 6.70%, 9/15/05.... 1,725 1,880
SunTrust Banks, Inc., 6.90%, 7/1/07... 510 575
SunTrust Banks, Inc., 6.25%, 6/1/08... 1,000 1,114
U.S. Bancorp, 2.75%, 3/30/06.......... 2,000 2,015
---------
12,884
---------
Beverages (0.6%)
Coca-Cola Co., 5.25%, 5/15/07......... 1,000 1,063
Diageo Capital PLC, 6.63%, 6/24/04.... 360 377
---------
1,440
---------
Brokerage Services (4.4%)
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08........................ 2,000 1,955
Merrill Lynch & Co., 6.00%, 11/15/04.. 4,000 4,214
Morgan Stanley Group, Inc.,
6.10%, 4/15/06....................... 3,500 3,793
Salomon Smith Barney Holdings,
6.63%, 11/15/03...................... 650 660
---------
10,622
---------
Building Products (0.8%)
Vulcan Materials Co., 5.75%, 4/1/04... 2,000 2,055
---------
Computers & Peripherals (0.9%)
IBM Corp., 5.63%, 4/12/04, MTN........ 1,045 1,076
IBM Corp., 4.13%, 6/30/05............. 1,000 1,043
---------
2,119
---------
Consumer Goods (2.2%)
Procter & Gamble Co., 5.25%, 9/15/03.. 2,000 2,010
Unilever Capital Corp., 6.88%, 11/1/05 3,000 3,297
---------
5,307
---------
Cosmetics/Personal Care (0.9%)
Colgate-Palmolive Co.,
5.34%, 3/27/06....................... 2,000 2,148
---------
Data Processing/Management (1.3%)
First Data Corp., 4.70%, 11/1/06...... 3,000 3,173
---------
Electronic Components/Instruments (1.1%)
Consolidated Edison, Inc.,
3.63%, 8/1/08........................ 500 495
Emerson Electric Co., 7.88%, 6/1/05... 2,000 2,205
---------
2,700
---------
Continued
68
LIMITED TERM BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares of
Principal
Amount Value
------------ ---------
CORPORATE BONDS, continued
Entertainment (0.4%)
Walt Disney Co.,
5.13%, 12/15/03, MTN................. $ 1,000 $ 1,015
---------
Financial Services (6.2%)
American Express Credit Corp.,
4.25%, 2/7/05, MTN................... 2,000 2,073
Associates Corp. N.A., 5.75%, 11/1/03. 1,000 1,011
Boeing Capital Corp., 5.65%, 5/15/06.. 2,000 2,138
General Electric Capital Corp.,
5.00%, 2/15/07, MTN.................. 3,700 3,926
Household Netherlands,
6.20%, 12/1/03....................... 2,500 2,537
Norwest Financial, Inc.,
6.70%, 9/22/04....................... 3,000 3,172
---------
14,857
---------
Food Products & Services (1.4%)
Hershey Foods Corp., 6.70%, 10/1/05... 1,710 1,872
Sysco Corp., 4.75%, 7/30/05........... 1,500 1,575
---------
3,447
---------
Industrial Goods & Services (0.2%)
3M Co., 4.15%, 6/30/05, MTN........... 500 521
---------
Insurance (4.0%)
AIG SunAmerica Institutional Funding,
Ltd., 5.20%, 5/10/04 (b)............. 2,000 2,060
American General Finance,
5.75%, 11/1/03....................... 2,000 2,023
Marsh & McLennan Cos., Inc.,
6.63%, 6/15/04....................... 750 783
Marsh & McLennan Cos., Inc.,
5.38%, 3/15/07....................... 2,000 2,151
St. Paul Cos., Inc., 5.75%, 3/15/07... 2,500 2,685
---------
9,702
---------
Newspapers (0.9%)
New York Times, 7.63%, 3/15/05........ 2,000 2,178
---------
Oil & Gas Exploration, Production, &
Services (3.2%)
Amoco Co., 6.25%, 10/15/04............ 3,200 3,376
Chevron Corp., 6.63%, 10/1/04......... 2,000 2,106
Phillips Petroleum Co., 8.50%, 5/25/05 2,000 2,230
---------
7,712
---------
Pharmaceuticals (3.0%)
Abbott Laboratories, 5.63%, 7/1/06.... 2,000 2,176
Bristol-Myers Squibb Co.,
4.75%, 10/1/06....................... 1,650 1,743
Eli Lilly & Co., 5.50%, 7/15/06....... 2,000 2,170
Merck & Co., Inc., 4.13%, 1/18/05..... 1,150 1,187
---------
7,276
---------
Printing (0.4%)
R.R. Donnelley & Sons,
5.00%, 11/15/06...................... 1,000 1,043
---------
Continued
Shares of
Principal
Amount Value
------------ ---------
CORPORATE BONDS, continued
Restaurants (0.9%)
McDonald's Corp.,
5.38%, 4/30/07, MTN................. $ 2,000 $ 2,115
---------
Retail (5.6%)
Lowe's Cos., Inc., 6.38%, 12/15/05... 1,000 1,090
May Department Stores Co.,
7.15%, 8/15/04...................... 1,750 1,851
Sears Credit Account Master Trust,
6.75%, 9/16/09...................... 5,000 5,451
Sears Roebuck Acceptance Corp.,
6.56%, 11/20/03..................... 850 863
Target Corp., 7.50%, 2/15/05......... 1,000 1,085
Target Corp., 3.38%, 3/1/08.......... 800 792
Wal-Mart Stores, Inc., 5.45%, 8/1/06. 2,000 2,169
---------
13,301
---------
Tools (0.2%)
Stanley Works, 5.75%, 3/1/04......... 500 513
---------
Utilities -- Electric & Gas (2.4%)
Alabama Power Corp.,
5.35%, 11/15/03..................... 3,250 3,286
Alabama Power Corp., 2.65%, 2/15/06.. 500 500
Cincinnati Gas & Electric Co.,
6.45%, 2/15/04...................... 1,300 1,336
Smith Enron, 5.97%, 12/15/06......... 692 723
---------
5,845
---------
TOTAL CORPORATE BONDS................ 118,845
---------
U.S. TREASURY NOTES (21.8%)
1.63%, 4/30/05....................... 43,000 43,000
2.00%, 5/15/06....................... 10,000 9,938
---------
TOTAL U.S. TREASURY NOTES............ 52,938
---------
U.S. TREASURY INFLATION
PROTECTION BONDS (7.7%)
3.38%, 1/15/07....................... 17,373 18,681
---------
TOTAL U.S. TREASURY
INFLATION PROTECTION
BONDS............................... 18,681
---------
U.S. GOVERNMENT AGENCIES (13.7%)
Fannie Mae (4.3%)
7.00%, 7/15/05....................... 5,000 5,479
3.50%, 10/15/07, Callable 10/15/04
@ 100............................... 5,000 4,966
---------
10,445
---------
Federal Home Loan Bank (4.2%)
4.88%, 4/16/04....................... 10,000 10,263
---------
Freddie Mac (4.3%)
6.88%, 1/15/05....................... 5,000 5,375
2.50%, 12/4/06, Callable 6/4/04 @ 100 5,000 4,943
---------
10,318
---------
Continued
69
LIMITED TERM BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares of
Principal
Amount Value
----------- --------
U.S. GOVERNMENT AGENCIES, continued
Government National Mortgage Assoc. (0.9%)
7.50%, 4/15/09 - 8/15/11................ $ 638 $ 689
8.00%, 12/15/07 - 4/15/10............... 1,193 1,289
8.50%, 9/15/09 - 12/15/09............... 273 299
--------
2,277
--------
TOTAL U.S. GOVERNMENT
AGENCIES............................... 33,303
--------
INVESTMENT COMPANIES (7.0%)
AmSouth Prime Money Market Fund......... 9,528,584 9,529
AmSouth U.S. Treasury Money Market
Fund................................... 7,485,237 7,485
--------
TOTAL INVESTMENT
COMPANIES.............................. 17,014
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (25.8%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)............................... 62,685,950 62,686
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING..................... 62,686
--------
TOTAL INVESTMENTS
(Cost $297,724) (a) -- 125.1%.......... 303,467
Liabilities in excess of other assets --
25.1%.................................. (60,879)
--------
NET ASSETS -- 100.0%.................... $242,588
========
- --------
(a)Cost for federal income tax purposes is $298,483. The gross unrealized
appreciation/(depreciation) on a tax basis is as follows:
Unrealized appreciation.... $5,691
Unrealized depreciation.... (707)
------
Net unrealized appreciation $4,984
======
(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.
MTN -- Medium Term Note
PLC -- Public Limited Company
See notes to financial statements.
BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------- ----------
CORPORATE BONDS (51.0%)
Aerospace/Defense (1.2%)
Boeing Corp., 6.88%, 11/1/06....... $ 2,145 $ 2,346
United Technologies Corp.,
7.13%, 11/15/10................... 5,000 5,711
----------
8,057
----------
Aluminum (0.7%)
Alcoa, Inc., 7.38%, 8/1/10......... 4,000 4,576
----------
Automotive -- Finance (2.7%)
Ford Motor Credit Co.,
6.25%, 12/8/05.................... 3,485 3,597
Ford Motor Credit Co.,
7.35%, 11/7/11, MTN............... 1,750 1,689
General Motors Acceptance Corp.,
5.75%, 11/10/03................... 1,500 1,516
General Motors Acceptance Corp.,
7.50%, 7/15/05.................... 3,000 3,214
General Motors Acceptance Corp.,
6.15%, 4/5/07..................... 2,000 2,058
Toyota Motor Credit Corp.,
5.65%, 1/15/07.................... 5,000 5,418
----------
17,492
----------
Banking (7.8%)
Bank One Corp., 7.00%, 7/15/05..... 3,157 3,441
Bank One, Texas, 6.25%, 2/15/08.... 1,000 1,095
Branch Banking & Trust,
4.88%, 1/15/13.................... 4,500 4,401
Fifth Third Bank, 6.75%, 7/15/05... 4,000 4,345
First Union Corp., 6.88%, 9/15/05.. 5,000 5,463
FleetBoston Financial Corp.,
4.88%, 12/1/06.................... 2,100 2,216
J.P. Morgan & Co., 7.63%, 9/15/04.. 3,856 4,114
NationsBank Corp., 7.75%, 8/15/15.. 1,100 1,286
Northern Trust Co., 7.10%, 8/1/09.. 6,000 6,886
State Street Boston, 7.65%, 6/15/10 5,000 5,901
Suntrust Bank, 6.38%, 4/1/11....... 5,500 6,063
SunTrust Banks, Inc., 7.38%, 7/1/06 3,159 3,582
Wachovia Corp., 6.61%, 10/1/25..... 1,875 1,983
----------
50,776
----------
Beverages (0.7%)
Coca-Cola Co., 5.75%, 3/15/11...... 4,000 4,295
----------
Brokerage Services (2.4%)
Bear Stearns & Co., Inc.,
6.63%, 10/1/04.................... 2,910 3,085
Bear Stearns & Co., Inc.,
4.00%, 1/31/08.................... 2,800 2,827
Dean Witter Discover & Co.,
6.50%, 11/1/05.................... 3,500 3,798
Lehman Brothers Holdings, Inc.,
3.50%, 8/7/08..................... 6,000 5,865
----------
15,575
----------
Continued
70
BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------- ----------
CORPORATE BONDS, continued
Building Products (0.6%)
Vulcan Materials Co., 5.75%, 4/1/04 $ 2,000 $ 2,055
Vulcan Materials Co., 6.00%, 4/1/09 2,000 2,159
----------
4,214
----------
Computers & Peripherals (0.8%)
IBM Corp., 5.38%, 2/1/09........... 5,000 5,338
----------
Consumer Goods (1.9%)
Nike, Inc., 6.38%, 12/1/03......... 3,000 3,049
Nike, Inc., 5.50%, 8/15/06......... 3,500 3,802
Unilever Capital Corp.,
7.13%, 11/1/10.................... 5,000 5,763
----------
12,614
----------
Consumer Products (0.1%)
Clorox Co., 6.13%, 2/1/11.......... 500 542
----------
Cosmetics/Personal Care (1.0%)
Colgate-Palmolive Co.,
5.34%, 3/27/06.................... 4,400 4,725
Kimberly-Clark Corp.,
7.10%, 8/1/07..................... 1,700 1,925
----------
6,650
----------
Data Processing/Management (1.1%)
First Data Corp., 4.70%, 11/1/06... 7,000 7,403
----------
Electric -- Integrated (0.6%)
Alabama Power Co., 7.13%, 8/15/04.. 2,000 2,117
Alabama Power Co., 7.13%, 10/1/07.. 1,700 1,918
----------
4,035
----------
Electrical & Electronic (1.8%)
General Electric Co., 5.00%, 2/1/13 12,000 11,764
----------
Electronic Components/ Instruments (0.6%)
Emerson Electric, 6.30%, 11/1/05... 1,500 1,629
Honeywell, Inc., 7.00%, 3/15/07.... 2,000 2,233
----------
3,862
----------
Entertainment (0.6%)
Walt Disney Co.,
5.13%, 12/15/03, MTN.............. 4,143 4,205
----------
Financial Services (5.0%)
ASIF Global Financing,
3.85%, 11/26/07, (b).............. 5,000 5,015
Associates Corp. N.A.,
5.75%, 10/15/03................... 2,000 2,018
Associates Corp. N.A.,
5.75%, 11/1/03.................... 3,625 3,665
Boeing Capital Corp.,
7.38%, 9/27/10.................... 6,251 6,999
Commercial Credit Co.,
6.50%, 8/1/04..................... 3,000 3,151
Countrywide Home Loan,
6.84%, 10/22/04................... 2,125 2,255
Household Finance Corp.,
6.50%, 1/24/06.................... 5,000 5,455
Continued
Shares or
Principal
Amount Value
------------- ----------
CORPORATE BONDS, continued
Financial Services, continued
Mellon Funding Corp.,
6.40%, 5/14/11...................... $ 2,000 $ 2,198
Norwest Financial, Inc.,
6.63%, 7/15/04...................... 2,000 2,098
----------
32,854
----------
Food Products & Services (1.3%)
Sara Lee Corp.,
6.15%, 6/19/08, MTN................. 5,625 6,143
Sysco Corp., 4.75%, 7/30/05.......... 2,500 2,625
----------
8,768
----------
Foreign Government (0.5%)
British Columbia, 4.63%, 10/3/06..... 3,000 3,174
----------
Industrial Goods & Services (0.6%)
Rockwell International Corp.,
6.63%, 6/1/05....................... 3,456 3,685
----------
Insurance (4.8%)
AIG SunAmerica Institutional Funding,
Ltd., 5.20%, 5/10/04 (b)............ 1,875 1,931
Chubb Corp., 6.15%, 8/15/05.......... 1,000 1,074
Chubb Corp., 6.00%, 11/15/11......... 1,000 1,056
Hartford Life, Inc., 6.90%, 6/15/04.. 3,100 3,238
John Hancock, 5.63%, 12/1/08......... 5,000 5,338
Marsh & McLennan Cos., Inc.,
5.38%, 3/15/07...................... 1,500 1,614
MetLife, Inc., 6.13%, 12/1/11........ 1,000 1,068
Prudential Funding LLC,
6.60%, 5/15/08 (c).................. 6,000 6,667
St. Paul Cos., Inc., 5.75%, 3/15/07.. 9,125 9,797
----------
31,783
----------
Machinery -- Construction and Mining (0.2%)
Caterpillar, Inc., 6.55%, 5/1/11..... 1,000 1,116
----------
Manufacturing (0.3%)
PPG Industries, Inc., 7.05%, 8/15/09. 2,000 2,253
----------
Meat Packing Plants (1.2%)
Hormel Foods Corp., 6.63%, 6/1/11.... 7,000 7,761
----------
Newspapers (0.3%)
New York Times, 7.63%, 3/15/05....... 2,000 2,178
----------
Oil & Gas Exploration, Production, & Services (1.4%)
Conoco Inc., 5.90%, 4/15/04.......... 1,500 1,549
Conoco Inc., 6.35%, 4/15/09.......... 1,000 1,115
Phillips Petroleum Co.,
6.38%, 3/30/09...................... 2,000 2,225
Texaco Capital, 7.09%, 2/1/07........ 4,000 4,550
----------
9,439
----------
Pharmaceuticals (2.7%)
Abbott Laboratories, 5.63%, 7/1/06... 4,000 4,350
Eli Lilly & Co., 5.50%, 7/15/06...... 6,000 6,510
Pfizer Inc., 5.63%, 2/1/06........... 3,900 4,212
Pharmacia Corp., 5.75%, 12/1/05...... 2,600 2,815
----------
17,887
----------
Continued
71
Bond Fund
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------- ----------
CORPORATE BONDS, continued
Restaurants (1.2%)
McDonald's Corp.,
5.38%, 4/30/07, MTN................ $ 2,000 $ 2,115
McDonald's Corp., 5.35%, 9/15/08.... 5,500 5,871
----------
7,986
----------
Retail (2.7%)
May Department Stores Co.,
7.15%, 8/15/04..................... 1,000 1,058
May Department Stores Co.,
17.90%, 0/15/07.................... 1,000 1,145
Sears Credit Account Master Trust,
6.75%, 9/16/09..................... 5,000 5,451
Target Corp., 7.50%, 2/15/05........ 2,000 2,170
Target Corp., 5.88%, 3/1/12......... 3,000 3,183
Wal-Mart Stores, Inc., 5.45%, 8/1/06 4,500 4,882
----------
17,889
----------
Tools (0.3%)
Stanley Works, 5.75%, 3/1/04........ 2,000 2,050
----------
Utilities -- Electric & Gas (2.4%)
Baltimore Gas & Electric,
7.50%, 1/15/07..................... 3,100 3,522
Cincinnati Gas & Electric Co.,
6.45%, 2/15/04..................... 1,500 1,541
National Rural Utilities Corp.,
6.38%, 10/15/04.................... 3,100 3,282
Smith Enron, 5.97%, 12/15/06........ 1,070 1,118
Virginia Electric & Power Co.,
8.00%, 3/1/04...................... 2,500 2,597
Wisconsin Electric Power,
6.63%, 11/15/06.................... 3,500 3,881
----------
15,941
----------
Utilities -- Telecommunications (1.5%)
BellAtlantic Corp., 6.25%, 2/15/04.. 2,000 2,050
BellSouth Telecommunications,
6.50%, 6/15/05..................... 3,500 3,784
GTE California, Inc., 6.70%, 9/1/09. 1,500 1,667
Southwestern Bell Telephone,
6.63%, 4/1/05...................... 2,000 2,155
----------
9,656
----------
TOTAL CORPORATE BONDS............... 335,818
----------
MUNICIPAL BONDS (0.1%)
Georgia (0.1%)
Atlanta Downtown Development Lease
Revenue Bond, 6.88%, 2/1/21........ 800 907
----------
TOTAL MUNICIPAL BONDS............... 907
----------
U.S. GOVERNMENT AGENCIES (18.2%)
Fannie Mae (4.7%)
5.13%, 2/13/04...................... 10,600 10,826
7.13%, 3/15/07...................... 5,000 5,684
5.25%, 3/22/07...................... 14,000 14,376
----------
30,886
----------
Continued
Shares or
Principal
Amount Value
------------- ----------
U.S. GOVERNMENT AGENCIES, continued
Federal Home Loan Bank (0.5%)
4.88%, 4/16/04...................... $ 3,000 $ 3,079
----------
Freddie Mac (4.5%)
6.88%, 1/15/05...................... 18,000 19,351
6.25%, 3/5/12, Callable 3/5/07 @ 100 10,000 10,563
----------
29,914
----------
Government National Mortgage Assoc. (8.5%)
6.00%, 6/15/33...................... 7,128 7,266
6.50%, 8/15/11 - 6/15/31............ 34,913 36,128
7.00%, 9/15/11 - 5/15/32............ 11,533 12,112
7.50%, 8/15/11...................... 170 184
8.00%, 5/15/10...................... 114 123
----------
55,813
----------
TOTAL U.S. GOVERNMENT
AGENCIES........................... 119,692
----------
U.S. TREASURY BILLS* (15.0%)
7.50%, 11/15/16..................... 34,000 42,129
6.25%, 8/15/23...................... 52,000 57,111
----------
TOTAL U.S. TREASURY BILLS........... 99,240
----------
U.S. TREASURY NOTES (13.8%)
1.63%, 4/30/05...................... 90,000 90,000
6.50%, 2/15/10...................... 1,150 1,325
----------
TOTAL U.S. TREASURY NOTES........... 91,325
----------
INVESTMENT COMPANIES (0.6%)
AmSouth Prime Money Market
Fund............................... 4,234,584 4,235
AmSouth U.S. Treasury Money Market
Fund............................... 3,047 3
----------
TOTAL INVESTMENT
COMPANIES.......................... 4,238
----------
Continued
72
Bond Fund
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (29.0%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3
(Securities Lending)................. 191,636,437 $ 191,636
---------
TOTAL SHORT-TERM
SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING.............................. 191,636
---------
TOTAL INVESTMENTS
(Cost $811,390) (a) -- 127.7%........ 842,856
Liabilities in excess of other
assets -- (27.7)%.................... (182,848)
---------
NET ASSETS -- 100.0%.................. $ 660,008
=========
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $34,445
Unrealized depreciation.... (2,979)
-------
Net unrealized appreciation $31,466
=======
(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.
MTN -- Medium Term Note
* Rates disclosed represent yield effective at purchase.
See notes to financial statements.
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS (95.2%)
Alabama (37.9%)
Alabama 21st Century Authority Tobacco
Settlement Revenue, 5.13%, 12/1/05....... $ 1,000 $ 1,022
Alabama 21st Century Authority Tobacco
Settlement Revenue, 5.25%, 12/1/06....... 1,000 1,028
Alabama State Agriculture & Mechanical
University, Revenue, 4.55%, 11/1/09,
Callable 5/1/08 @ 102, MBIA.............. 2,245 2,405
Alabama State Agriculture & Mechanical
University, Revenue, 4.65%, 11/1/10,
Callable 5/1/08 @ 102, MBIA.............. 2,355 2,493
Alabama State Agriculture & Mechanical
University, Revenue, 6.50%, 11/1/25,
Callable 11/1/05 @ 102, MBIA............. 2,035 2,299
Alabama State Judicial Building Authority,
Judicial Facilities Project,
4.75%, 1/1/05, AMBAC..................... 3,700 3,876
Alabama State Judicial Building Authority,
Judicial Facilities Project,
4.85%, 1/1/06, AMBAC..................... 3,880 4,149
Alabama State Public School & College
Authority, 5.00%, 12/1/05, Callable
6/1/03 @ 103............................. 3,390 3,502
Alabama State Public School & College
Authority, 5.13%, 11/1/14, Callable
11/1/08 @ 101.5, FSA..................... 8,000 8,431
Alabama State Public School & College
Authority, Capital Improvement, 4.75%,
11/1/06, Callable 11/1/05 @ 101.......... 5,000 5,347
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.25%, 8/15/08, Callable 8/15/06 @ 100,
AMBAC.................................... 1,095 1,187
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.38%, 8/15/10, Callable 8/15/06 @ 100,
AMBAC.................................... 860 935
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.40%, 8/15/11, Callable 8/15/06 @ 100,
AMBAC.................................... 1,840 2,002
Alabama State Water Pollution Control
Authority, Revolving Fund, Series B,
5.50%, 8/15/16, Callable 8/15/06 @ 100,
AMBAC.................................... 3,890 4,189
Alabama State, Series A, GO,
4.60%, 10/1/05........................... 3,500 3,734
Alabama State, Series E, GO,
4.00%, 9/1/08............................ 2,855 3,005
Alabama State, Series E, GO,
4.00%, 9/1/09............................ 4,210 4,382
Athens, Warrants, GO,
1.85%, 2/1/06, MBIA...................... 680 678
Athens, Warrants, GO,
2.35%, 2/1/07, MBIA...................... 690 687
Continued
73
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Alabama, continued
Auburn University, University Revenues,
General Fee, 5.00%, 6/1/13, Callable
6/1/12 @ 100, AMBAC.................... $ 4,800 $ 5,093
Auburn University, University Revenues,
General Fee, Series A, 5.50%, 6/1/12,
Callable 6/1/11 @ 100, MBIA............ 2,125 2,332
Birmingham, GO, 4.90%, 7/1/06........... 1,500 1,624
Birmingham, Capital Improvements,
Series A, GO, 4.75%, 10/1/10,
Callable 4/1/08 @ 102.................. 1,340 1,426
Birmingham, Capital Improvements,
Series A, GO, 4.85%, 10/1/11,
Callable 4/1/08 @ 102.................. 1,430 1,511
Birmingham, Capital Improvements,
Series B, GO, 4.80%, 10/1/08,
Callable 4/1/07 @ 102.................. 1,040 1,127
Birmingham, Industrial Water Board,
Industrial Water Supply,
5.30%, 3/1/04, ETM..................... 1,100 1,128
Birmingham, Industrial Water Board,
Industrial Water Supply, 5.40%, 3/1/05,
Callable 3/1/04 @ 101, ETM............. 1,000 1,063
Birmingham, Industrial Water Board,
Industrial Water Supply, 5.50%, 3/1/06,
Prerefunded 3/1/05 @ 100............... 1,300 1,384
Birmingham, Industrial Water Board,
Industrial Water Supply, 6.20%, 7/1/08,
Prerefunded 1/1/07 @ 100............... 2,305 2,525
Birmingham, Special Care Facilities
Funding Authority, Series D, 4.95%,
11/1/14, Prerefunded 11/1/07 @ 100..... 2,585 2,828
Clark & Mobile County, Gas District,
5.60%, 12/1/17, Callable 12/1/06 @ 102,
MBIA................................... 1,045 1,129
Decatur, Warrants, Series A, GO,
2.25%, 12/1/04......................... 180 183
Decatur, Warrants, Series A, GO,
2.25%, 12/1/05......................... 435 442
Decatur, Warrants, Series A, GO,
2.40%, 12/1/06......................... 205 207
Decatur, Warrants, Series A, GO,
2.50%, 12/1/07......................... 210 209
Decatur, Warrants, Series B, GO,
2.25%, 12/1/05......................... 215 219
Decatur, Warrants, Series B, GO,
2.40%, 12/1/06......................... 100 101
Decatur, Warrants, Series B, GO,
2.50%, 12/1/07......................... 140 139
Decatur, Warrants, Series C, GO,
2.50%, 8/1/05.......................... 245 250
Decatur, Warrants, Series C, GO,
2.88%, 8/1/06.......................... 200 205
Decatur, Warrants, Series C, GO,
2.88%, 8/1/07.......................... 220 223
Continued
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Alabama, continued
Decatur, Warrants, Series D, GO,
2.50%, 8/1/05........................... $ 580 $ 592
Decatur, Warrants, Series D, GO,
2.88%, 8/1/06........................... 590 605
Decatur, Warrants, Series D, GO,
2.88%, 8/1/07........................... 610 618
Dothan, GO, 5.05%, 9/1/09, FSA........... 905 994
Dothan, GO, 5.10%, 9/1/10, Callable
9/1/09 @ 101, FSA....................... 1,515 1,648
Florence Water, Series B, 4.70%, 12/1/13,
Callable 12/1/08 @ 102, FSA............. 1,025 1,059
Florence, Warrants, Series A, GO,
4.35%, 12/1/07.......................... 390 419
Florence, Warrants, Series A, GO,
2.40%, 9/1/08........................... 1,370 1,328
Florence, Warrants, Series A, GO,
4.40%, 12/1/08.......................... 405 435
Florence, Warrants, Series A, GO,
4.50%, 12/1/09.......................... 425 455
Florence, Warrants, Series A, GO,
4.60%, 12/1/10, Callable 12/1/08 @...... 445 472
Florence, Warrants, Series B, GO,
4.35%, 12/1/07, FSA..................... 790 849
Florence, Warrants, Series B, GO,
4.40%, 12/1/08, FSA..................... 825 886
Florence, Warrants, Series B, GO, 4.50%,
12/1/09, Callable 12/1/08 @ 102, FSA.... 865 925
Florence, Warrants, Series B, GO, 4.60%,
12/1/10, Callable 12/1/08 @ 102, FSA.... 900 954
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/10, FSA...... 1,085 1,109
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/11, FSA...... 1,000 1,009
Homewood Board of Education, Warrants,
Capital Outlay, 4.00%, 2/1/12, FSA...... 1,010 1,007
Huntsville, Series A, GO, 4.75%, 11/1/18,
Callable 11/1/08 @ 101.................. 1,445 1,443
Huntsville Electric, 4.60%, 12/1/09,
Callable 12/1/07 @ 102.................. 550 589
Huntsville Electric, 4.70%, 12/1/10,
Callable 12/1/07 @ 102.................. 660 698
Huntsville Electric, 4.80%, 12/1/11,
Callable 12/1/07 @ 102.................. 680 716
Huntsville, Warrants, Series B, GO,
4.00%, 11/1/05.......................... 3,120 3,293
Huntsville, Warrants, Series B, GO,
4.00%, 11/1/06.......................... 3,245 3,446
Huntsville, Warrants, Series B, GO,
4.10%, 11/1/07.......................... 3,380 3,595
Huntsville, Water Treatment Systems,
Series A, GO, 5.13%, 5/1/20,
Callable 5/1/12 @ 102, OID.............. 1,895 1,926
Continued
74
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(Amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Alabama, continued
Jefferson County, Warrants, GO,
5.10%, 2/15/10, FSA..................... $ 1,000 $ 1,086
Madison Water & Wastewater Board,
Water & Sewer Revenue, 4.60%,
12/1/11, AMBAC.......................... 725 755
Mobile, Warrants, GO, 6.50%, 2/15/05,
AMBAC................................... 1,630 1,755
Mobile, Warrants, GO, 6.50%, 2/15/06,
AMBAC................................... 1,685 1,872
Mobile, Warrants, GO, 4.85%, 2/15/09..... 1,765 1,867
Montgomery Downtown Redevelopment
Authority, Lease Revenue,
5.00%, 10/1/08.......................... 1,895 2,083
Montgomery, Warrants, GO,
5.00%, 5/1/11, AMBAC.................... 1,530 1,645
Montgomery, Warrants, GO,
5.25%, 5/1/12, AMBAC.................... 2,545 2,770
Montgomery, Waterworks & Sanitation
Sewer Board, Water & Sewer Systems
Revenue, 5.50%, 9/1/08, Callable 9/1/06
@ 101, AMBAC............................ 3,000 3,300
Montgomery, Waterworks & Sanitation
Sewer Board, Water & Sewer Systems
Revenue, 5.25%, 9/1/18, Callable 9/1/11
@ 101, AMBAC............................ 4,125 4,300
Shelby County Board of Education,
Warrants, Capital Outlay, 4.80%, 2/1/10,
Callable 2/1/09 @ 101, AMBAC............ 1,005 1,073
Talladega County, Industrial Development
Board, Cyprus 1 Project,
9.75%, 12/1/13.......................... 335 337
University of Alabama General Fee,
4.75%, 6/1/11, Callable 6/1/07 @ 102,
MBIA.................................... 1,500 1,571
University of Alabama General Fee,
4.60%, 6/1/09, Callable 6/1/07 @ 102,
MBIA.................................... 1,200 1,280
University of Alabama General Fee,
4.70%, 6/1/10, Callable 6/1/07 @ 102,
MBIA.................................... 1,300 1,372
University of South Alabama, University
Revenues, Tuition, 4.70%, 11/15/08,
Callable 5/15/06 @ 102, AMBAC........... 2,185 2,327
---------
141,162
---------
Arizona (1.3%)
Arizona School Facilities, Board Revenue
State School Improvement,
5.50%, 7/1/10........................... 3,000 3,355
Pima County, School District No.16,
Catalina Foothills, GO, 5.75%, 7/1/06,
MBIA.................................... 1,200 1,327
---------
4,682
---------
Continued
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
California (1.7%)
Franklin-McKinley School District, GO,
6.00%, 7/1/16, FSA......................... $ 1,000 $ 1,153
San Mateo County Transit District, Sales
Tax Revenue, Series A, 5.25%, 6/1/16,
Callable 6/1/09 @ 101, FSA................. 4,765 5,010
---------
6,163
---------
Colorado (1.8%)
Central Platte Valley Metropolitan District,
5.20%, 12/1/17, Prerefunded 12/1/09 @
101, OID, ACA.............................. 5,940 6,692
---------
Florida (8.8%)
Dade County, Series DD, GO,
7.70%, 10/1/08, AMBAC...................... 1,760 2,156
Dade County, Series DD, GO,
7.70%, 10/1/12, AMBAC...................... 1,000 1,261
Florida State Board of Education, Capital
Outlay, Series A, GO, 5.00%, 6/1/08........ 6,500 7,123
Jacksonville, Water & Sewer District,
Revenue, 5.00%, 10/1/20, MBIA.............. 9,550 10,438
Key West Utilities Board, Electric
Revenue, 6.00%, 10/1/13, AMBAC............. 2,450 2,824
Reedy Creek, Improvement District,
Series 1, 5.50%, 10/1/08,
Callable 10/1/07 @ 101, AMBAC.............. 8,070 8,982
---------
32,784
---------
Hawaii (1.1%)
Hawaii State, GO, 5.50%, 3/1/16,
Prerefunded 3/1/07 @ 102, FGIC............. 3,625 4,085
---------
Illinois (2.8%)
Chicago Metropolitan Water Reclamation
District, Greater Chicago Capital
Improvements, GO, 6.90%, 1/1/07............ 7,830 8,940
Will County Forest Preservation District,
Series B, 0.00%, 12/1/18, FGIC............. 3,000 1,333
---------
10,273
---------
Kentucky (0.6%)
Carrollton & Henderson Public Energy
Authority, Gas Revenue, Series A,
5.00%, 1/1/09, FSA......................... 2,000 2,177
---------
Louisiana (0.3%)
Louisiana Local Government
Environmental Facilities, Community
Development Authority Revenue,
Capital Projects & Equipment
Acquisition, 5.25%, 12/1/18,
AMBAC...................................... 1,085 1,143
---------
Maryland (1.4%)
Maryland State Department of
Transportation, Construction Revenue,
4.00%, 12/15/07............................ 5,000 5,313
---------
Continued
75
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Minnesota (0.6%)
Centennial Independent School District
No. 12, Series A, GO, 5.60%, 2/1/07,
MBIA..................................... $ 2,175 $ 2,406
---------
Mississippi (0.9%)
Medical Center Educational Building Corp.
of Mississippi, Revenue, University of
Mississippi Medical Center Project,
5.90%, 12/1/23, Prerefunded 12/1/04 @
102, MBIA................................ 2,075 2,249
Mississippi State, Series B, GO,
5.90%, 11/15/09.......................... 1,000 1,148
---------
3,397
---------
Missouri (0.1%)
Missouri State, Water Pollution,
Series B, GO, 5.00%, 8/1/07,
Callable 8/1/03 @ 102.................... 390 399
---------
Ohio (2.9%)
Ohio State Higher Education, Series A,
GO, 5.20%, 2/1/10........................ 9,700 10,635
---------
Oklahoma (0.5%)
Moore, GO, 5.75%, 4/1/12, MBIA............ 1,530 1,675
---------
Oregon (2.2%)
Salem, GO, 4.45%, 12/1/10, Callable
6/1/09 @ 100, FSA........................ 2,365 2,467
Washington County Criminal Justice
Facilities, GO, 5.00%, 12/1/09, Callable
12/1/07 @ 100............................ 5,285 5,740
---------
8,207
---------
Rhode Island (1.2%)
Rhode Island Port Authority & Economic
Development Corp., Revenue, Shepard
Building Project, Series B, 6.75%,
6/1/25, Prerefunded 6/1/04 @ 102,
AMBAC.................................... 1,000 1,068
Rhode Island State, Series A, GO, 5.75%,
9/1/13, Callable 9/1/09 @ 101, FGIC...... 3,065 3,410
---------
4,478
---------
South Carolina (2.7%)
Beaufort County School District, Series B,
GO, 4.10%, 2/1/09, Callable 2/1/07 @
101, SCSDE............................... 5,525 5,729
Beaufort County School District,
Series B, GO, 4.90%, 3/1/09,
Callable 3/1/05 @ 101.................... 4,125 4,355
---------
10,084
---------
Tennessee (3.2%)
Jackson, Improvements, 5.00%, 3/1/10,
Prerefunded 3/1/05 @ 102................. 2,000 2,133
Continued
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Tennessee, continued
Metropolitan Government, Nashville &
Davidson County, Industrial
Development Board, Revenue, Multi-
Family Housing, Arbor, Series B,
7.50%, 11/15/10, Prerefunded
5/15/10 @ 100........................... $ 1,000 $ 1,238
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 1,260
Tennessee State, Series B, GO,
5.00%, 5/1/15, Callable 5/1/08 @ 100.... 1,500 1,552
Tennessee State, Series B, GO,
4.60%, 5/1/07, Callable 5/1/06 @ 100.... 5,495 5,814
---------
11,997
---------
Texas (9.5%)
Dallas County, Series A, GO,
5.25%, 8/15/09.......................... 3,000 3,321
Harris County, Housing Financial Corp.,
Multi-Family Housing Revenue, Breton
Mill Partners, 7.00%, 3/1/07,
Prerefunded 2/15/07 @ 100............... 1,000 1,158
Katy Independent School District,
Series A, GO, 4.50%, 2/15/20,
Callable 2/15/08 @ 100, PSF-GTD......... 3,600 3,389
Lubbock Health Facilities Development
Corp., Hospital Revenue, Methodist
Hospital, Series B, 6.75%, 12/1/10,
AMBAC................................... 1,000 1,205
Mesquite Independent School District,
Series A, GO, 4.70%, 8/15/08,
Callable 8/15/07 @ 100.................. 4,000 4,265
Richardson Independent School District,
Series C, 4.75%, 2/15/22, Callable
2/15/08 @ 100 PSF-GTD................... 1,000 952
San Antonio, Series A, GO, 4.75%, 2/1/19,
Callable 2/1/09 @ 100................... 1,590 1,570
Texas State, Public Finance Authority,
Series A, GO, 5.25%, 10/1/08............ 7,965 8,859
University of Texas, 4.60%, 7/1/08,
Callable 7/1/06 @ 100................... 3,575 3,770
University of Texas, Series B, 4.25%,
8/15/09, Callable 8/15/07 @ 100......... 5,455 5,655
Whitehouse Independent School District,
GO, 4.80%, 2/15/12,
Callable 2/15/08 @ 100.................. 1,000 1,028
---------
35,172
---------
Utah (5.5%)
Davis County, School District, GO, 4.38%,
6/1/08, School Board Guaranty........... 4,805 5,129
Continued
76
MUNICIPAL BOND FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
Utah, continued
Jordan School District, GO, 4.80%,
6/15/08, Callable 6/15/07 @ 100........ $ 3,810 $ 4,084
Utah State, Series F, GO, 5.00%, 7/1/09. 5,200 5,705
Utah State, Series F, GO, 5.50%, 7/1/07. 5,000 5,581
---------
20,499
---------
Virginia (3.1%)
Virginia College Building Authority,
Series A, 5.00%, 9/1/12,
Callable 9/1/07 @ 101.................. 2,000 2,118
Virginia State, GO, 5.00%, 6/1/08,
Callable 6/1/07 @ 100.................. 5,000 5,408
Virginia State, Public School Authority,
Series S, 5.25%, 8/1/09................ 3,500 3,889
---------
11,415
---------
Washington (4.1%)
King County Public Hospital District
No. 002, GO, 5.25%, 12/1/13, MBIA...... 1,095 1,169
Snohomish County, GO,
3.13%, 12/1/11, OID.................... 1,225 1,148
Washington State, GO, 5.75%, 9/1/08..... 6,500 7,349
Washington State, Series 2-A, GO,
5.00%, 7/1/10, FSA..................... 5,000 5,408
---------
15,074
---------
West Virginia (0.3%)
Raleigh Fayette & Nicholas Counties,
6.20%, 8/1/04.......................... 1,000 1,052
---------
Wisconsin (0.7%)
Wisconsin State Health & Educational
Facilities Authority, Revenue, Wheaton
Franciscan Services, Inc.,
6.10%, 8/15/09, MBIA................... 2,420 2,746
---------
TOTAL MUNICIPAL BONDS................... 353,710
---------
Continued
Shares or
Principal
Amount Value
--------- --------
INVESTMENT COMPANIES (3.6%)........
AmSouth Tax-Exempt Money Market
Fund.............................. 5,053,191 $ 5,053
Goldman Sachs Tax-Free Money Market
Fund.............................. 8,497,892 8,498
--------
TOTAL INVESTMENT
COMPANIES......................... 13,551
--------
TOTAL INVESTMENTS
(Cost $346,543) (a) -- 98.8%...... 367,261
Other assets in excess of
liabilities -- 1.2%............... 4,641
--------
NET ASSETS -- 100.0%............... $371,902
========
- --------
(a)Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
Unrealized appreciation.... $21,096
Unrealized depreciation.... (378)
-------
Net unrealized appreciation $20,718
=======
ACA -- ACA Certificate of Bond Insurance
AMBAC -- Insured by AMBAC Indemnity Corp.
ETM -- Escrowed to Maturity
FGIC -- Insured by Financial Guaranty Insurance Corp.
FSA -- Insured by Financial Security Assurance Inc.
GO -- General Obligation
MBIA -- Insured by Municipal Bond Insurance Assoc.
OID -- Original Issue Discount
PSF-GTD -- Permanent School Fund Guarantee
SCSDE -- South Carolina School District Enhancement
See notes to financial statements.
77
FLORIDA TAX-EXEMPT FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
--------- --------
MUNICIPAL BONDS (97.0%)
Florida (97.0%)
Altamonte Springs, Health Facilities
Authority, Hospital Revenue,
5.60%, 10/1/10, ETM........................ $ 545 $ 618
Broward County Gas Tax Revenue,
5.25%, 9/1/09.............................. 500 555
Broward County, Series B, GO,
5.00%, 1/1/09.............................. 800 872
Broward County, Series B, GO,
5.00%, 1/1/10.............................. 1,000 1,079
Clearwater Utility Revenue, 6.10%, 12/1/07,
ETM........................................ 700 804
Dade County Aviation Authority,
Series 1994 B, 6.25%, 10/1/04, AMBAC....... 1,000 1,060
Dade County School Board, Certificates of
Participation, Series C, 5.25%, 8/1/06,
FSA........................................ 750 821
Dade County School District, GO,
6.00%, 7/15/06............................. 1,000 1,115
Dade County School District, GO, 5.00%,
2/15/14, Callable 2/15/07 @ 101, MBIA...... 1,000 1,040
Escambia County Utility Authority, Utility
System Revenue, 5.00%, 1/1/08, FGIC........ 1,000 1,089
Florida Housing Finance Agency, Homeowner
Mortgages, Series 1995 A-1, 5.65%, 1/1/09,
Callable 1/1/06 @ 102...................... 520 548
Florida State Board of Education, Lottery
Revenue, Series B, 5.25%, 7/1/09, Callable
7/1/08 @ 101, FGIC......................... 1,000 1,101
Florida State Board of Education, Lottery
Revenue, Series C, 5.00%, 1/1/14, Callable
1/1/13 @101, MBIA.......................... 1,000 1,061
Florida State Board of Education,
Series A, GO, 5.00%, 1/1/15,
Callable 1/1/08 @ 101...................... 1,000 1,031
Florida State Board of Education,
Series B, GO, 5.38%, 6/1/08,
Callable 6/1/07 @ 101...................... 2,000 2,202
Florida State Department Environmental
Protection Preservation, Revenue, Florida
Forever, Series B, 5.00%, 7/1/10, MBIA..... 2,000 2,167
Florida State Department of Transportation,
Right of Way, Series B, GO, 5.50%, 7/1/08,
Callable 7/1/07 @ 101...................... 3,310 3,660
Florida State Division of Bond Finance,
Department of General Services Revenues,
Preservation 2000, Series A, 5.50%, 7/1/08,
FSA........................................ 1,000 1,120
Florida State Division of Bond Finance,
Department of General Services Revenues,
Preservation 2000, Series A, 5.70%, 7/1/09,
Callable 7/1/05 @ 101, AMBAC............... 1,000 1,090
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, AMBAC............... 2,000 2,113
Continued
Shares or
Principal
Amount Value
--------- --------
MUNICIPAL BONDS, continued
Florida, continued
Florida State Division of Bond Finance,
Department of General Services Revenues,
Series B, 5.50%, 7/1/05, AMBAC............. $ 2,000 $ 2,154
Florida State Turnpike Authority,
Turnpike Revenue, Department of
Transportation, Series A, 5.50%, 7/1/11,
Callable 7/1/05 @ 101, FGIC................ 1,000 1,087
Florida State, Senior Lien, Jacksonville
Transportation, GO, 5.25%, 7/1/15,
Callable 7/1/07 @ 101...................... 1,000 1,057
Florida Water Pollution Control Revenue,
5.50%, 1/15/14............................. 1,000 1,084
Ft. Lauderdale Park Improvement Project,
GO, 5.50%, 7/1/17,
Callable 1/1/04 @ 101...................... 1,250 1,286
Hillsborough County, Capital Improvement,
County Center Project, Series B, 5.00%,
7/1/13, Callable 7/1/06 @ 102, MBIA........ 1,000 1,046
Jacksonville Electric Authority, St. John's
River Issue 2, Series 16, 5.00%, 10/1/10,
Callable 10/1/03 @ 101..................... 1,000 1,016
Jacksonville Water & Sewer Systems
Revenue, Series B, 5.25%, 10/1/09, FSA..... 1,000 1,112
Jacksonville, Sales Tax Revenue, 5.00%,
10/1/09, AMBAC............................. 1,000 1,099
Key West Utilities Board, Electric Revenue,
6.00%, 10/1/13, AMBAC...................... 1,500 1,729
Lee County Transportation Facilities,
Revenue, Series A, 5.50%, 10/1/11,
AMBAC...................................... 1,500 1,671
Manatee County School Board, Certificates of
Participation, 5.75%, 7/1/09, Callable
7/1/06 @ 102, MBIA......................... 500 564
Miami Beach Water & Sewer Revenue,
5.38%, 9/1/08, Callable 9/7/01 @ 101,
OID, FSA................................... 1,000 1,091
Miami-Dade County Educational Facilities
Authority Revenue, Series A, 5.75%,
4/1/13, Callable 4/1/10 @ 101, AMBAC....... 1,060 1,176
Okeechobee Utility Authority,
Utility System Revenue, 5.25%, 10/1/14,
Callable 10/1/09 @ 101, FSA................ 1,675 1,785
Orange County, Sales Tax Revenue, 4.80%,
1/1/17, Callable 1/1/07 @ 101, FGIC........ 1,000 1,005
Orange County, Tourist Development, Tax
Revenue, 5.00%, 10/1/08, AMBAC............. 1,500 1,652
Orlando Utilities Commission, Water &
Electric Revenue, Series B, 5.10%, 10/1/11,
Callable 10/1/06 @ 100..................... 1,500 1,607
Palm Beach County, Criminal Justice
Facilities, 5.38%, 6/1/10, FGIC............ 1,000 1,106
Palm Beach County, Criminal Justice
Facilities Revenue, 5.00%, 6/1/12.......... 1,095 1,175
Continued
78
FLORIDA TAX-EXEMPT FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
--------- --------
MUNICIPAL BONDS, continued
Florida, continued
Reedy Creek Improvement District,
Series A, GO, 5.60%, 6/1/10,
Callable 6/1/05 @ 100, MBIA................. $ 1,000 $ 1,076
St. Johns River Management District, Land
Acquisition, 5.10%, 7/1/09,
Callable 7/1/05 @ 100, FSA.................. 1,000 1,061
St. Petersburg Utility Tax Revenue,
5.00%, 6/1/08, AMBAC........................ 1,145 1,256
Tallahassee Consolidated Utility System
Revenue, 5.80%, 10/1/08,
Callable 10/1/03 @ 102...................... 1,000 1,028
Tampa Bay Water Utility System Revenue,
Series A, 4.40%, 10/1/10,
Callable 10/1/08 @ 101, OID................. 550 574
Tampa Sports Authority, Local Option Sales
Tax Revenue, Stadium Project,
6.00%, 1/1/06, MBIA......................... 1,550 1,700
Tampa-Hillsborough County, Expressway,
5.00%, 7/1/10, Callable 7/1/07 @ 101........ 1,000 1,071
Volusia County Sales Tax Revenue,
5.00%, 10/1/13, Callable 10/1/08 @ 101,
MBIA........................................ 1,000 1,047
--------
TOTAL MUNICIPAL BONDS........................ 59,461
--------
INVESTMENT COMPANIES (2.1%)
AmSouth Tax-Exempt Money Market
Fund........................................ 532,289 532
Dreyfus Florida Money Market Fund............ 782,694 783
--------
TOTAL INVESTMENT COMPANIES................... 1,315
--------
TOTAL INVESTMENTS
(Cost $58,082) (a) -- 99.1%................. 60,776
Other assets in excess of liabilities -- 0.9% 522
--------
NET ASSETS -- 100.0%......................... $ 61,298
========
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $2,791
Unrealized depreciation.... (97)
------
Net unrealized appreciation $2,694
======
AMBAC -- Insured by AMBAC Indemnity Corp.
ETM -- Escrowed to Maturity
FGIC -- Insured by Financial Guaranty Insurance Corp.
FSA -- Insured by Financial Security Assurance Inc.
GO -- General Obligation
MBIA -- Insured by Municipal Bond Insurance Assoc.
OID -- Original Issue Discount
See notes to financial statements.
TENNESSEE TAX-EXEMPT FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- --------
MUNICIPAL BONDS (93.5%)
Tennessee (93.5%)
Anderson County, GO, 5.00%, 4/1/09,
FSA..................................... $ 1,055 $ 1,152
Chattanooga, GO, 5.00%, 9/1/13,
Prerefunded 9/1/06 @ 101, OID, FGIC..... 100 110
Chattanooga, Series A, GO,
5.00%, 11/1/06.......................... 1,000 1,094
Clarksville, Water Sewer & Gas Revenue,
5.15%, 2/1/14, FSA...................... 1,570 1,682
Dickson County, Public Improvements &
Schools, GO, 5.25%, 4/1/16, Callable
4/1/10 @ 100, OID, FSA.................. 1,000 1,104
Franklin Special School District, GO,
5.00%, 6/1/10........................... 1,020 1,104
Germantown, GO, 4.50%, 8/1/05............ 500 530
Hamilton County, GO, 5.00%, 11/1/11,
Callable 11/1/08 @ 101.................. 1,000 1,062
Johnson City, GO, 4.70%, 6/1/12, OID,
FGIC.................................... 1,000 1,049
Knox County Health Educational & Housing
Facility Board, Hospital Facilities
Revenue, Fort Sanders Alliance,
7.25%, 1/1/08, MBIA..................... 750 876
Knox County Health Educational & Housing
Facility Board, Hospital Facilities
Revenue, Mercy Health System, Series B,
5.30%, 9/1/04, Callable 9/1/03 @ 102,
OID, AMBAC.............................. 500 512
Knox County, GO, 4.50%, 4/1/08........... 1,000 1,070
Knox County, GO, 5.50%, 4/1/11........... 2,000 2,215
Knox County, Public Improvements, GO,
5.00%, 5/1/06........................... 425 460
Knoxville, Water Revenue, 5.00%, 3/1/13,
Callable 3/1/10 @ 100, MBIA............. 1,000 1,049
Marion County, GO, 5.00%, 4/1/11,
AMBAC................................... 1,000 1,075
Memphis, GO, 6.25%, 7/1/04............... 1,000 1,048
Memphis, GO, 6.00%, 11/1/06.............. 1,000 1,123
Metropolitan Government, Nashville &
Davidson County, Electric Revenue,
Series B, 5.50%, 5/15/12................ 1,000 1,105
Metropolitan Government, Nashville &
Davidson County, Electric Revenue,
Series B, 5.50%, 5/15/14................ 1,000 1,109
Metropolitan Government, Nashville &
Davidson County, GO, 5.00%, 12/1/06..... 600 657
Metropolitan Government, Nashville &
Davidson County, GO, 6.00%, 12/1/09..... 1,500 1,730
Metropolitan Government, Nashville &
Davidson County, Health & Education
Facilities Board Revenue, The Vanderbilt
University, Series A, 6.00%, 7/1/07..... 500 564
Metropolitan Government, Nashville &
Davidson County, Refunding &
Improvement, Series A & B, GO, 5.25%,
10/15/09................................ 1,000 1,112
Continued
79
TENNESSEE TAX-EXEMPT FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- --------
MUNICIPAL BONDS, continued
Tennessee, continued
Metropolitan Nashville Airport Authority,
Airport Revenue Improvement, Series A,
6.63%, 7/1/07, FGIC..................... $ 500 $ 573
Oak Ridge, GO, 5.00%, 4/1/13, Callable
4/1/11 @ 100, AMBAC..................... 1,000 1,054
Putnam County Schools, GO, 5.50%, 4/1/19,
OID, Prerefunded 4/1/10 @ 100, FGIC..... 1,000 1,119
Rutherford County, Capital Outlay Notes,
Series A, GO, 6.25%, 5/1/04............. 1,500 1,559
Rutherford County, Capital Outlay Notes,
Series A, GO, 6.50%, 5/1/06............. 1,050 1,176
Rutherford County, Public Improvements,
GO, 5.40%, 4/1/13, Prerefunded 4/1/06 @
100, OID................................ 1,000 1,091
Shelby County Health Educational &
Housing Facility Board, Hospital
Revenue, Methodist Health Systems, Inc.,
6.25%, 8/1/07, MBIA..................... 3,500 4,004
Shelby County Health Educational &
Housing Facility Board, Hospital
Revenue, Methodist Healthcare,
5.50%, 4/1/05, ETM, MBIA................ 435 464
Shelby County Health Educational &
Housing Facility Board, Hospital
Revenue, Methodist Healthcare,
5.50%, 4/1/05, MBIA..................... 165 175
Shelby County Schools, Series A, GO,
5.88%, 6/1/19, Prerefunded
6/1/06 @ 100............................ 1,000 1,109
Shelby County, Public Improvements,
Series A, GO, 5.88%, 6/1/20, Prerefunded
6/1/06 @ 100, OID....................... 1,500 1,663
Shelby County, Series A, GO,
6.75%, 4/1/05........................... 1,000 1,087
Shelby County, Series B, GO, 5.25%,
12/1/10, Callable 12/1/06 @ 101, OID.... 1,000 1,090
Tennessee State School Board Authority,
Higher Educational Facilities,
5.00%, 5/1/05........................... 500 531
Tennessee State School Board Authority,
Higher Educational Facilities, Series A,
5.00%, 5/1/11, FSA...................... 2,000 2,150
Tennessee State, GO, 5.00%, 5/1/09,
Callable 5/1/07 @ 101.5, OID............ 500 540
Tennessee State, Series A, GO,
5.00%, 5/1/05........................... 500 531
Williamson County, GO,
6.00%, 3/1/08, OID...................... 500 566
Williamson County, GO, 5.00%, 3/1/11..... 1,000 1,079
Williamson County, Public Improvements,
GO, 5.00%, 3/1/07....................... 1,000 1,089
Wilson County, GO, 4.50%, 4/1/06......... 1,135 1,210
--------
48,452
--------
TOTAL MUNICIPAL BONDS.................... 48,452
--------
Continued
Shares or
Principal
Amount Value
---------- -------
INVESTMENT COMPANIES (5.2%)
AIM Tax-Free Money Market Fund. $1,584,902 $ 1,585
AmSouth Tax-Exempt Money Market
Fund.......................... 1,095,615 1,096
-------
TOTAL INVESTMENT
COMPANIES..................... 2,681
-------
TOTAL INVESTMENTS
(Cost $49,430) (a) -- 98.7%... 51,133
Other assets in excess of
liabilities -- 1.3%........... 697
-------
NET ASSETS -- 100.0%........... $51,830
=======
- --------
(a)Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from value by
unrealized appreciation of securities as follows:
Unrealized appreciation.... $1,731
Unrealized depreciation.... (28)
------
Net unrealized appreciation $1,703
======
AMBAC -- Insured by AMBAC Indemnity Corp.
ETM -- Escrowed to Maturity
FGIC -- Insured by Financial Guaranty Insurance Corp.
FSA -- Insured by Financial Security Assurance Inc.
GO -- General Obligation
MBIA -- Insured by Municipal Bond Insurance Assoc.
OID -- Original Issue Discount
See notes to financial statements.
80
PRIME MONEY MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------ ---------
COMMERCIAL PAPER -- DOMESTIC* (39.9%)
Banking (6.7%)
Bank of America Corp.,
1.20%, 8/14/03..................... $ 23,500 $ 23,490
Wells Fargo & Co., 1.02%, 9/5/03.... 21,000 20,979
---------
44,469
---------
Computer Hardware (3.5%)
IBM Corp., 0.93%, 11/19/03.......... 23,500 23,433
---------
Financial Services (16.5%)
AIG Funding, Inc., 1.01%, 8/27/03... 22,000 21,984
American Express Credit Corp.,
0.92%, 8/12/03..................... 23,000 22,994
General Electric Capital Corp.,
1.05%, 12/18/03.................... 20,000 19,919
Goldman Sachs, 0.97%, 9/11/03....... 23,500 23,474
Morgan Stanley Dean Witter Co.,
1.03%, 8/21/03..................... 22,000 21,987
---------
110,358
---------
Materials (3.1%)
E.I. Du Pont De Nemours & Co.,
1.00%, 9/24/03..................... 20,500 20,469
---------
Oil & Gas Exploration, Production, &
Services (3.3%)
Chevron Texaco Corp., 1.01%, 8/25/03 22,000 21,985
---------
Pharmaceuticals (6.8%)
Merck & Co., Inc., 1.09%, 9/9/03.... 23,000 22,973
Pfizer, Inc., 1.01%, 8/19/03........ 22,000 21,989
---------
44,962
---------
TOTAL COMMERCIAL PAPER --
DOMESTIC........................... 265,676
---------
U.S. GOVERNMENT AGENCIES* (32.2%)
Fannie Mae (4.8%)
1.00%, 1/7/04....................... 32,000 31,859
---------
Federal Farm Credit Bank (5.2%)
1.38%, 11/3/03...................... 30,000 29,892
1.47%, 11/17/03..................... 4,500 4,480
---------
34,372
---------
Federal Home Loan Bank (5.8%)
1.11%, 9/26/03...................... 21,000 20,964
1.27%, 2/13/04...................... 17,000 17,357
---------
38,321
---------
Freddie Mac (5.9%)
1.22%, 8/29/03...................... 19,000 18,982
1.23%, 9/30/03...................... 20,000 19,959
---------
38,941
---------
Sallie Mae (5.8%)
1.33%, 9/16/03...................... 2,405 2,401
1.36%, 10/14/03..................... 9,000 8,975
1.43%, 12/16/03..................... 28,000 27,848
---------
39,224
---------
Continued
Shares or
Principal
Amount Value
------------ ---------
U.S. GOVERNMENT AGENCIES*, continued
Tennessee Valley Authority (4.7%)
0.94%, 9/18/03........................... $ 31,000 $ 30,961
---------
TOTAL U.S. GOVERNMENT
AGENCIES................................ 213,678
---------
U.S. TREASURY NOTES (3.8%)
2.88%, 6/30/04........................... 25,000 25,425
---------
TOTAL U.S. TREASURY NOTES................ 25,425
---------
REPURCHASE AGREEMENTS (24.1%)
Goldman Sachs, 1.12%, 8/1/03, dated
7/31/03, with a maturity value of
$79,982................................. 79,980 79,980
Prudential, 1.12%, 8/1/03, dated 7/31/03,
with a maturity value of $79,982........ 79,980 79,980
---------
TOTAL REPURCHASE
AGREEMENTS.............................. 159,960
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (7.0%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)................................ 46,403,025 46,403
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING...................... 46,403
---------
TOTAL INVESTMENTS
(Cost $711,142) (a) -- 107.0%.......... 711,142
Liabilities in excess of other assets --
(7.0)%.................................. (46,577)
---------
NET ASSETS -- 100.0%..................... $ 664,565
=========
- --------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Rates disclosed represent yield effective at purchase.
See notes to financial statements.
81
U.S. TREASURY MONEY MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Principal
Amount Value
----------- --------
U.S. TREASURY BILLS* (62.6%)
1.13%, 8/7/03............................ $ 11,500 $ 11,499
1.06%, 8/14/03 - 8/28/03................. 16,000 15,991
1.17%, 8/21/03........................... 7,000 6,995
1.10%, 9/4/03 - 10/23/03................. 12,500 12,480
1.14%, 9/11/03 - 10/16/03................ 12,300 12,282
1.15%, 9/18/03 - 10/9/03................. 18,000 17,970
1.00%, 10/30/03.......................... 4,000 3,990
0.90%, 12/11/03.......................... 5,000 4,984
0.92%, 1/8/04............................ 8,000 7,966
0.97%, 1/15/04........................... 5,000 4,978
0.99%, 1/22/04........................... 3,500 3,483
--------
TOTAL U.S. TREASURY BILLS................ 102,618
--------
U.S. TREASURY NOTES (3.4%)
3.38%, 4/30/04........................... 5,500 5,603
--------
TOTAL U.S. TREASURY NOTES................ 5,603
--------
REPURCHASE AGREEMENTS
(34.0%)
Goldman Sachs, 1.02%, 08/1/03, dated
7/31/03, with a maturity value of
$27,886................................. 27,886 27,886
Prudential, 1.04%, 8/1/03, dated 7/31/03,
with a maturity value of $27,887........ 27,886 27,886
--------
TOTAL REPURCHASE
AGREEMENTS.............................. 55,772
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (17.9%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3 (Securities
Lending)................................ 29,250,918 29,251
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING...................... 29,251
--------
TOTAL INVESTMENTS........................
(Cost $193,244) (a) -- 117.9%.......... 193,244
Liabilities in excess of other assets --
(17.9)%................................. (29,355)
--------
NET ASSETS -- 100.0%..................... $163,889
========
- --------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Rates disclosed represent yield effective at purchase.
See notes to financial statements.
TREASURY RESERVE MONEY
MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Principal
Amount Value
----------- --------
U.S. TREASURY BILLS* (54.8%)
1.12%, 8/7/03............................ $ 5,000 $ 4,999
0.79%, 8/21/03........................... 2,500 2,499
1.14%, 8/28/03-9/18/03................... 7,000 6,992
1.10%, 9/4/03............................ 4,000 3,996
1.11%, 9/11/03........................... 3,000 2,996
1.17%, 9/25/03-10/16/03.................. 6,500 6,486
0.87%, 10/2/03........................... 2,500 2,496
1.15%, 10/9/03........................... 3,500 3,492
0.87%, 10/23/03.......................... 3,500 3,493
0.85%, 11/6/03........................... 2,500 2,494
0.86%, 11/13/03.......................... 2,500 2,494
1.06%, 11/20/03.......................... 3,500 3,489
0.90%, 12/11/03.......................... 2,500 2,493
--------
TOTAL U.S. TREASURY BILLS................ 48,419
--------
U.S. TREASURY NOTES (10.3%)
3.25%, 12/31/03.......................... 5,000 5,045
3.38%, 4/30/04........................... 4,000 4,075
--------
TOTAL U.S. TREASURY NOTES................ 9,120
--------
REPURCHASE AGREEMENTS (35.0%)
Goldman Sachs, 1.02%, 8/1/03, dated
7/31/03, with a maturity value of
$15,471................................. 15,470 15,470
Prudential, 1.04%, 8/1/03, dated 7/31/03,
with a maturity value of $15,471........ 15,470 15,470
--------
TOTAL REPURCHASE
AGREEMENTS.............................. 30,940
--------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (19.2%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3
(Securities Lending).................... 16,968,533 16,969
--------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING...................... 16,969
--------
TOTAL INVESTMENTS
(Cost $105,448) (a) -- 119.2%........... 105,448
Liabilities in excess of other assets --
(19.2)%................................. (17,019)
--------
NET ASSETS -- 100.0%..................... $ 88,429
========
- --------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Rates disclosed represent yield effective at purchase.
See notes to financial statements.
82
Shares or
Principal
Amount Value
----------- ---------
DEMAND NOTES* (71.1%)
Alabama (8.2%)
Alabama Housing Finance Authority,
Multi-Family Housing Revenue, Rime
Village Huntsville Project, Series B,
0.85%, 6/15/26, FNMA.................... $ 1,500 $ 1,500
Eutaw Industrial Development Board,
PCR, Alabama Power Co. Project,
0.90%, 6/1/28........................... 1,800 1,800
Homewood Educational Building
Authority, Revenue, Educational
Facilities, Samford University,
0.90%, 12/1/21, AMBAC,
SPA: Bank of Nova Scotia................ 1,100 1,100
Homewood Educational Building
Authority, Revenue, Educational
Facilities, Samford University, 0.90%,
12/1/25, SPA: South Trust Bank N.A...... 4,000 4,000
Jacksonville Industrial Development
Board, Industrial Revenue, Parker
Hannifin Corp., 0.90%, 9/1/12, LOC:
Wachovia Bank of Georgia................ 1,000 1,000
Mobile Industrial Development Board,
PCR, Alabama Power Co. Project,
Series B, 0.89%, 8/1/17................. 2,000 2,000
Port City Medical Clinic Board Mobile,
Revenue, Infirmary Health,
0.89%, 2/1/25, SPA: The Bank of
Nova Scotia and KBC Bank N.V............ 2,000 2,000
---------
13,400
---------
Arizona (2.1%)
Phoenix Industrial Development Authority,
Multi-Family Housing Revenue, Del
Mar Terrace, Series A,
0.85%, 10/1/29.......................... 3,450 3,450
---------
California (1.5%)
Metropolitan Water District, Revenue,
Southern California Waterworks,
Series C-1, 0.82%, 7/1/36, SPA: Lloyds
TSB Bank PLC............................ 2,500 2,500
---------
Colorado (1.7%)
Colorado Health Facilities Authority,
Revenue, North Colorado Medical
Center, 0.80%, 5/15/20, MBIA............ 2,800 2,800
---------
Connecticut (3.7%)
Connecticut State Health & Educational
Facilities Authority, Revenue, Yale
University Series V-1, 0.82%, 7/1/36.... 1,000 1,000
Connecticut State Health & Educational
Facilities Authority, Revenue, Yale
University, Series T-1, 0.82%, 7/1/29... 5,000 5,000
---------
6,000
---------
Continued
TAX-EXEMPT MONEY
MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
DEMAND NOTES*, continued
District of Columbia (1.8%)
District of Columbia Institute for
International Economics, Revenue,
0.85%, 6/1/25, LOC: Suntrust Bank....... $ 2,900 $ 2,900
---------
Florida (1.8%)
Sarasota County Public Hospital Board,
Revenue, Sarasota Memorial Hospital,
0.92%, 7/1/37, AMBAC.................... 3,000 3,000
---------
Georgia (14.9%)
Burke County Development Authority,
PCR, Oglethorpe Power Corporation
Project, Series C, 0.90%, 1/1/18, MBIA,
SPA: JP Morgan Chase Bank............... 2,800 2,800
Cobb County Housing Authority, Multi-
Family Housing Revenue, Post Mill
Project, 0.85%, 6/1/25, FNMA............ 1,000 1,000
Fulton County Development Authority,
Revenue, Lovett School Project,
0.85%, 7/1/26, LOC: Suntrust Bank....... 3,000 3,000
Macon-Bibb County Georgia Hospital
Authority, Revenue Anticipation
Certificates, 0.90%, 5/1/30,
LOC: Suntrust Bank...................... 5,900 5,900
Monroe County Development Authority,
PCR, Oglethorpe Power Corporation
Project, 0.90%, 1/1/22, AMBAC,
SPA: JP Morgan Chase & Co............... 6,640 6,640
Municipal Electric Authority, Revenue,
Project One, Sub Series D,
0.80%, 1/1/20, MBIA..................... 5,000 5,000
---------
24,340
---------
Illinois (5.8%)
Elmhurst, Revenue, Joint Common
Accredation, 0.85%, 7/1/18, LOC: Dexia
Credit Local de France.................. 4,385 4,385
Illinois Developmental Finance Authority,
Revenue, Provena Health Series C,
0.80%, 5/1/28, MBIA,
SPA: Bank One N.A....................... 5,000 5,000
---------
9,385
---------
Maryland (0.6%)
Maryland State Economic Development
Corp., Revenue, Federation of American
Societies, Series A, 0.90%, 7/1/30,
LOC: Suntrust Bank...................... 1,000 1,000
---------
Montana (1.5%)
Forsyth Pollution Control, Revenue,
Pacificorp Project, 0.92%, 1/1/18....... 2,500 2,500
---------
Nevada (1.8%)
Clark County Airport, Revenue,
Series B-2, 0.76%, 7/1/29, LOC:
Bayerische Hypo-Und Vereinsbank......... 3,000 3,000
---------
Continued
83
TAX-EXEMPT MONEY
MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
DEMAND NOTES*, continued
New Jersey (3.1%)
New Jersey Economic Authority Dock
Facilities, Revenue, Bayonne/IMTT
Project, Series A, 0.90%, 12/1/27, LOC:
Suntrust Bank.......................... $ 1,100 $ 1,100
New Jersey State Educational Facilities
Authority, Revenue, Princeton
University, Series B, 0.82%, 7/1/21.... 3,900 3,900
---------
5,000
---------
New York (5.1%)
New York, Series F-3, GO,
0.78%, 2/15/13, LOC:
Morgan Guaranty Trust.................. 5,000 5,000
New York, Sub Series A-7, GO,
0.91%, 11/1/24, AMBAC, SPA:
Bank of Nova Scotia.................... 1,400 1,400
New York, Sub Series E2, GO,
0.91%, 8/1/20.......................... 2,000 2,000
---------
8,400
---------
Oregon (0.7%)
Port of Portland, PCR, Reynolds Metals,
0.85%, 12/1/09, LOC:
San Paolo Bank......................... 1,150 1,150
---------
Tennessee (6.6%)
Blount County Health Educational &
Housing Facilities Board, Revenue,
Presbyterian Homes Tennessee Project,
0.85%, 1/1/19, LOC: Suntrust Bank...... 1,200 1,200
Clarksville Public Building Authority,
Revenue, 0.85%, 7/1/16, LOC:
Suntrust Bank.......................... 2,900 2,900
Dickson County Tennessee Industrial
Development Board, Revenue,
Renaissance Learning Center,
0.85%, 11/1/12, LOC: Suntrust Bank..... 1,700 1,700
Metropolitan Government, Nashville &
Davidson County, Industrial
Development Board, Revenue, Country
Music Hall of Fame, 0.85%, 6/1/22,
LOC: Bank of America................... 2,835 2,835
Sevier County Tennessee Public Building
Authority, Local Government Series
III-A-1, Revenue, 0.86%, 6/1/07, AMBAC,
SPA: Landesbank Hessen-Thueringen...... 2,150 2,150
---------
10,785
---------
Virginia (4.2%)
Loudoun County Industrial Development
Authority, Revenue, Howard Hughes
Medical, Series C, 0.87%, 2/15/38...... 2,000 2,000
Roanoke Industrial Development
Authority, Revenue, Carilion Health
System, Series E, 0.90%, 7/1/27, LOC:
Suntrust Bank.......................... 4,800 4,800
---------
6,800
---------
Continued
Shares or
Principal
Amount Value
----------- ---------
DEMAND NOTES*, continued
Washington (2.9%)
Washington State, Series VR 96B, GO,
0.75%, 6/1/20, SPA: Landesbank
Hessen-Thueringen...................... $ 4,700 $ 4,700
---------
Wisconsin (3.1%)
Green Bay Redevelopment Authority,
Revenue, Berlin Memorial Hospital,
Series B, 0.76%, 2/15/31, LOC:
Associated Bank N.A.................... 5,000 5,000
---------
TOTAL DEMAND NOTES...................... 116,110
---------
MUNICIPAL BONDS (24.1%)
California (0.9%)
Sacramento County, Tax and Revenue
Anticipation Notes, GO,
3.00%, 8/1/03.......................... 1,420 1,420
---------
Connecticut (0.6%)
South Central Connecticut Regional Water
Authority, Revenue, Series 12,
5.10%, 8/1/06, FGIC.................... 1,000 1,020
---------
Illinois (0.6%)
Jersey & Greene Counties, Community
Units School District #100, GO,
1.63%, 12/1/03, FSA.................... 1,000 1,002
---------
Kentucky (3.2%)
Northern Kentucky Water Distribution,
Revenue, Bond Anticipation Notes,
Series A, 1.75%, 10/1/03,
Callable 5/1/03 @ 100.................. 5,210 5,212
---------
Maryland (3.4%)
Anne Arundel County, GO,
1.00%, 3/1/04.......................... 5,500 5,502
---------
Massachusetts (1.2%)
Quincy, Bond Anticipation Notes, GO,
1.75%, 12/12/03........................ 2,000 2,007
---------
Minnesota (2.6%)
Branchburg Township, Bond Anticipation
Notes, GO, 1.63%, 9/10/03.............. 2,000 2,001
Deer River, Independent School District
# 317, Aid Anticipation Certificates of
Indebtedness, GO, 1.63%, 9/21/03,
SD CRED PROG........................... 1,175 1,175
Perham, Independent School District
# 549, Aid Anticipation Certificates of
Indebtedness, GO, 2.00%, 9/30/03,
SD CRED PROG........................... 1,065 1,066
---------
4,242
---------
New Hampshire (2.8%)
Carroll County, Tax Anticipation Notes,
GO, 1.50%, 12/29/03.................... 4,545 4,553
---------
New Jersey (3.5%)
Allendale Board of Education, Temporary
Notes, GO, 1.90%, 9/5/03............... 2,391 2,392
Continued
84
TAX-EXEMPT MONEY
MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
----------- ---------
MUNICIPAL BONDS, continued
New Jersey, continued
Trenton, Temporary Notes, GO,
1.75%, 10/17/03........................ $ 3,400 $ 3,405
---------
5,797
---------
North Dakota (3.1%)
Minot, Certificates of Indebtedness, GO,
1.25%, 6/15/04, Callable
12/15/03 @ 100......................... 5,000 5,008
---------
Ohio (1.6%)
Niles, Bond Anticipation Notes, GO,
1.25%, 7/15/04......................... 1,565 1,571
Ohio State Higher Education, B Series,
GO, 2.00%, 11/1/03..................... 1,000 1,001
---------
2,572
---------
Tennessee (0.6%)
Dickson Electrical Systems, Revenue,
1.30%, 9/1/03, FSA..................... 1,000 1,000
---------
TOTAL MUNICIPAL BONDS................... 39,335
---------
INVESTMENT COMPANIES (4.6%)
AIM Tax-Free Money Market Fund.......... 1,517,951 1,518
Goldman Sachs Tax-Free Money Market
Fund................................... 5,940,461 5,940
---------
TOTAL INVESTMENT
COMPANIES.............................. 7,458
---------
TOTAL INVESTMENTS.......................
(Cost $162,903) (a) -- 99.8%............ 162,903
Other assets in excess of
liabilities -- 0.2%.................... 260
---------
NET ASSETS -- 100.0%.................... $ 163,163
=========
- --------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate security. Rate presented represents rate in effect at July 31,
2003. Put and demand features exist allowing the fund to require the
repurchase of the instrument within variable time periods including daily,
weekly, monthly, and semiannually.
AMBAC -- Insured by AMBAC Indemnity Corp.
FGIC -- Insured by Financial Guaranty Insurance Corp.
FNMA -- Insured by Federal National Mortgage Assoc.
FSA -- Insured by Financial Security Assurance Inc.
GO -- General Obligation
LOC -- Letter of Credit
MBIA -- Insured by Municipal Bond Insurance Assoc.
PCR -- Pollution Control Revenue
PLC -- Public Limited Company
SD CRED PROG -- School District Credit Program
SPA -- Standby Purchase Agreement
See notes to financial statements.
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------ ---------
COMMERCIAL PAPER -- DOMESTIC* (36.7%)
Banking (6.2%)
Bank of America Corp.,
1.20%, 8/14/03..................... $ 14,500 $ 14,494
Wells Fargo & Co., 1.02%, 9/5/03.... 14,000 13,986
---------
28,480
---------
Computer Hardware (3.0%)
IBM Corp., 0.93%, 11/19/03.......... 14,000 13,960
---------
Financial Services (15.4%)
AIG Funding, Inc., 1.01%, 8/27/03... 14,000 13,990
American Express Credit Corp.,
0.92%, 8/12/03..................... 14,000 13,996
General Electric Capital Corp.,
1.05%, 12/18/03.................... 15,000 14,939
Goldman Sachs, 0.97%, 9/11/03....... 13,500 13,485
Morgan Stanley Dean Witter Co.,
1.03%, 8/21/03..................... 14,000 13,992
---------
70,402
---------
Materials (3.1%)
E.I. Du Pont De Nemours & Co.,
1.00%, 9/24/03..................... 14,500 14,478
---------
Oil & Gas Exploration, Production, &
Services (2.9%)
Chevron Texaco Corp., 1.01%, 8/25/03 13,500 13,491
---------
Pharmaceuticals (6.1%)
Merck & Co., Inc., 1.09%, 9/9/03.... 14,000 13,983
Pfizer, Inc., 1.01%, 8/19/03........ 14,000 13,993
---------
27,976
---------
TOTAL COMMERCIAL PAPER --
DOMESTIC........................... 168,787
---------
U.S. GOVERNMENT AGENCIES* (29.5%)
Fannie Mae (4.8%)
1.00%, 1/7/04....................... 22,000 21,903
---------
Federal Farm Credit Bank (5.2%)
1.39%, 11/3/03...................... 20,000 19,929
1.49%, 11/17/03..................... 4,000 3,982
---------
23,911
---------
Federal Home Loan Bank (4.5%)
1.18%, 10/29/03..................... 21,000 20,939
---------
Freddie Mac (5.0%)
1.22%, 8/29/03...................... 11,000 10,990
1.23%, 9/30/03...................... 12,000 11,975
---------
22,965
---------
Sallie Mae (5.5%)
1.34%, 9/16/03...................... 1,620 1,617
1.38%, 10/14/03..................... 6,000 5,983
1.45%, 12/16/03..................... 18,000 17,902
---------
25,502
---------
Continued
85
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Schedule of Portfolio Investments
July 31, 2003
(amounts in thousands, except shares)
Shares or
Principal
Amount Value
------------ ---------
U.S. GOVERNMENT AGENCIES*, continued
Tennessee Valley Authority (4.5%)
0.94%, 9/18/03........................... $ 21,000 $ 20,974
---------
TOTAL U.S. GOVERNMENT
AGENCIES................................ 136,194
---------
U.S. TREASURY NOTES (3.3%)
2.88%, 6/30/04........................... 15,000 15,255
---------
TOTAL U.S. TREASURY NOTES................ 15,255
---------
REPURCHASE AGREEMENTS (30.6%)
Goldman Sachs, 1.12%, 8/1/03, dated
7/31/03, with a maturity value of
$70,581................................. 70,579 70,579
Prudential, 1.12%, 8/1/03, dated 7/31/03,
with a maturity value of $70,581........ 70,579 70,579
---------
TOTAL REPURCHASE
AGREEMENTS.............................. 141,158
---------
INVESTMENT COMPANIES (0.0%)
AmSouth Prime Money Market Fund.......... 20,986 21
AmSouth U.S. Treasury Money Market
Fund.................................... 17,233 17
---------
TOTAL INVESTMENT
COMPANIES............................... 38
---------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR
SECURITIES LENDING (6.7%)
Pool of Various Securities for AmSouth
Mutual Funds -- Footnote 3
(Securities Lending).................... 30,846,573 30,847
---------
TOTAL SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING...................... 30,847
---------
TOTAL INVESTMENTS
(Cost $492,279) (a) -- 106.8%........... 492,279
Liabilities in excess of other assets --
(6.8)%.................................. (31,209)
---------
NET ASSETS -- 100.0%..................... $ 461,070
=========
- --------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Rates disclosed represent yield effective at purchase.
See notes to financial statements.
86
[THIS PAGE INTENTIONALLY LEFT BLANK]
87
AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
July 31, 2003
Select Enhanced Large
Value Equity Market Cap
Fund Fund Fund Fund
--------- ------- -------- --------
Assets:
Investments:
Investments, at cost.......................................................... $ 521,595 $55,998 $125,798 $416,609
Net unrealized appreciation................................................... 88,581 3,557 2,942 137,257
--------- ------- -------- --------
Investments, at value......................................................... 610,176 59,555 128,740 553,866
Foreign currency, at value*..................................................... -- -- -- --
Cash............................................................................ -- -- 456*** --
Interest and dividends receivable............................................... 976 50 148 406
Receivable from capital shares issued........................................... 2 45 2 16
Receivable from investments sold................................................ -- 323 -- --
Receivable from foreign tax withholding reclaims................................ -- -- -- --
Prepaid expenses and other assets............................................... 9 4 37 17
--------- ------- -------- --------
Total Assets.................................................................. 611,163 59,977 129,383 554,305
Liabilities:
Payable for investments purchased............................................... -- 511 -- --
Payable for securities loaned................................................... 78,576 -- 195 47,956
Payable for capital shares redeemed............................................. 45 22 1 31
Accrued expenses and other payables:
Investment advisory fees...................................................... 105 12 14 94
Administration fees........................................................... 9 1 2 6
Shareholder servicing and distribution fees................................... 82 12 21 72
Custodian fees................................................................ 8 1 2 8
Other......................................................................... 117 6 18 72
--------- ------- -------- --------
Total Liabilities............................................................. 78,942 565 253 48,239
--------- ------- -------- --------
Net Assets...................................................................... $ 532,221 $59,412 $129,130 $506,066
========= ======= ======== ========
Composition of Net Assets:
Capital......................................................................... $ 598,155 $55,522 $133,881 $373,302
Accumulated net investment income/(loss)........................................ 304 -- 36 --
Accumulated net realized gains/(losses) from investments, foreign currency,
futures, and option transactions............................................... (154,819) 333 (7,725) (4,493)
Unrealized appreciation from investments, futures, and translation of assets and
liabilities denominated in foreign currencies.................................. 88,581 3,557 2,938 137,257
--------- ------- -------- --------
Net Assets...................................................................... $ 532,221 $59,412 $129,130 $506,066
========= ======= ======== ========
Class A Shares:
Net Assets.................................................................... $ 112,701 $ 7,034 $ 21,431 $ 88,989
Shares Outstanding............................................................ 8,627 592 2,172 5,445
Net Asset Value and Redemption Price per share................................ $ 13.06 $ 11.89 $ 9.87 $ 16.34
========= ======= ======== ========
Maximum Sales Load............................................................ 5.50% 5.50% 5.50% 5.50%
--------- ------- -------- --------
Maximum Offering Price per share (Net Assets Value/(100% -- maximum
sales charge))............................................................... $ 13.82 $ 12.58 $ 10.44 $ 17.29
Class B Shares:
Net Assets.................................................................... $ 28,786 $ 7,758 $ 9,566 $ 23,334
Shares Outstanding............................................................ 2,243 668 988 1,488
Net Asset Value and Offering Price per share**................................ $ 12.83 $ 11.61 $ 9.68 $ 15.68
========= ======= ======== ========
Class I Shares:
Net Assets.................................................................... $ 390,734 $44,620 $ 98,133 $393,743
Shares Outstanding............................................................ 29,968 3,741 9,936 24,007
Net Asset Value, Offering Price, and Redemption Price per share............... $ 13.04 $ 11.93 $ 9.88 $ 16.40
========= ======= ======== ========
* Cost of foreign currency for the International Equity Fund is $2,497.
** Redemption price per share varies by length of time shares are held.
***Deposits for financial futures.
See notes to financial statements.
88
July 31, 2003
AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
Strategic
Strategic Strategic Portfolios:
Portfolios: Strategic Portfolios: Moderate
Capital Small Aggressive Portfolios: Growth & Growth &
Growth Mid Cap Cap International Balanced Growth Growth Income Income
Fund Fund Fund Equity Fund Fund Portfolio Portfolio Portfolio Portfolio
- --------- -------- -------- ------------- -------- ----------- ----------- ----------- -----------
$ 252,906 $122,776 $170,204 $257,102 $158,553 $ 24,325 $23,871 $ 78,636 $29,821
30,134 14,871 28,410 12,514 21,419 3,356 2,148 5,440 1,415
- --------- -------- -------- -------- -------- -------- ------- -------- -------
283,040 137,647 198,614 269,616 179,972 27,681 26,019 84,076 31,236
-- -- -- 2,496 -- -- -- -- --
-- 204*** -- 5,700 -- -- -- -- --
152 87 2 313 993 -- -- -- --
1 5 3 -- 24 55 96 198 69
7,359 -- 11,157 -- -- -- -- -- --
-- -- -- 152 -- -- -- -- --
12 22 7 14 9 9 9 4 6
- --------- -------- -------- -------- -------- -------- ------- -------- -------
290,564 137,965 209,783 278,291 180,998 27,745 26,124 84,278 31,311
9,427 -- 7,381 1,833 -- -- -- -- --
23,731 4,773 19,647 16,072 19,401 -- -- -- --
7 8 5 3 20 2 1 1 2
51 20 49 52 32 1 1 2 1
3 2 2 3 2 -- -- 1 --
31 17 18 23 39 4 5 11 5
4 2 3 23 2 -- -- 1 --
26 35 21 25 43 11 15 18 3
- --------- -------- -------- -------- -------- -------- ------- -------- -------
33,280 4,857 27,126 18,034 19,539 18 22 34 11
- --------- -------- -------- -------- -------- -------- ------- -------- -------
$ 257,284 $133,108 $182,657 $260,257 $161,459 $ 27,727 $26,102 $ 84,244 $31,300
========= ======== ======== ======== ======== ======== ======= ======== =======
$ 366,949 $148,115 $240,151 $284,805 $144,492 $ 35,027 $29,872 $ 93,754 $32,761
-- -- -- 2,646 (103) -- 23 119 54
(139,799) (29,945) (85,904) (39,749) (4,349) (10,656) (5,941) (15,069) (2,930)
30,134 14,938 28,410 12,555 21,419 3,356 2,148 5,440 1,415
- --------- -------- -------- -------- -------- -------- ------- -------- -------
$ 257,284 $133,108 $182,657 $260,257 $161,459 $ 27,727 $26,102 $ 84,244 $31,300
========= ======== ======== ======== ======== ======== ======= ======== =======
$ 23,915 $ 9,085 $ 5,929 $ 4,711 $ 78,679 $ 11,310 $10,978 $ 28,745 $10,988
2,734 872 821 542 6,917 1,462 1,337 3,238 1,215
$ 8.75 $ 10.42 $ 7.22 $ 8.69 $ 11.37 $ 7.73 $ 8.21 $ 8.88 $ 9.04
========= ======== ======== ======== ======== ======== ======= ======== =======
5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
- --------- -------- -------- -------- -------- -------- ------- -------- -------
$ 9.26 $ 11.03 $ 7.64 $ 9.20 $ 12.03 $ 8.18 $ 8.69 $ 9.40 $ 9.57
$ 8,571 $ 6,525 $ 1,987 $ 810 $ 20,004 $ 2,014 $ 4,491 $ 3,839 $ 2,812
1,039 648 287 95 1,764 269 550 433 312
$ 8.25 $ 10.07 $ 6.92 $ 8.49 $ 11.34 $ 7.49 $ 8.16 $ 8.86 $ 9.01
========= ======== ======== ======== ======== ======== ======= ======== =======
$ 224,798 $117,498 $174,741 $254,736 $ 62,776 $ 14,403 $10,633 $ 51,660 $17,500
25,711 11,253 23,899 29,187 5,518 1,864 1,290 5,797 1,930
$ 8.74 $ 10.44 $ 7.31 $ 8.73 $ 11.38 $ 7.73 $ 8.24 $ 8.91 $ 9.07
========= ======== ======== ======== ======== ======== ======= ======== =======
See notes to financial statements.
89
AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
July 31, 2003
Limited
Government Term Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- -------- -------- ---------
Assets:
Investments:
Investments, at cost............................................................ $341,576 $297,724 $811,390 $346,543
Net unrealized appreciation..................................................... 9,722 5,743 31,466 20,718
Repurchase agreements, at cost.................................................. -- -- -- --
-------- -------- -------- --------
Investments, at value........................................................... 351,298 303,467 842,856 367,261
Cash.............................................................................. -- -- -- --
Interest and dividends receivable................................................. 2,697 2,098 9,053 4,678
Receivable from capital shares issued............................................. 8 1 1 97
Prepaid expenses and other assets................................................. 22 4 5 2
-------- -------- -------- --------
Total Assets.................................................................... 354,025 305,570 851,915 372,038
Liabilities:
Dividends payable................................................................. -- -- -- --
Payable for securities loaned..................................................... 69,495 62,686 191,636 --
Payable for capital shares redeemed............................................... 11 177 4 --
Accrued expenses and other payables:
Investment advisory fees........................................................ 36 30 82 37
Administration fees............................................................. 4 3 8 5
Shareholder servicing and distribution fees..................................... 36 43 72 38
Custodian fees.................................................................. 4 4 10 6
Other........................................................................... 43 39 95 50
-------- -------- -------- --------
Total Liabilities............................................................... 69,629 62,982 191,907 136
-------- -------- -------- --------
Net Assets........................................................................ $284,396 $242,588 $660,008 $371,902
======== ======== ======== ========
Composition of Net Assets:
Capital........................................................................... $274,163 $238,779 $624,473 $349,725
Accumulated net investment income (loss).......................................... 198 (565) (933) 1,134
Accumulated net realized gains/(losses) from investment transactions.............. 313 (1,369) 5,002 325
Unrealized appreciation from investments.......................................... 9,722 5,743 31,466 20,718
-------- -------- -------- --------
Net Assets........................................................................ $284,396 $242,588 $660,008 $371,902
======== ======== ======== ========
Class A Shares (a):
Net Assets........................................................................ $ 20,721 $ 38,211 $ 50,591 $ 16,385
Shares Outstanding................................................................ 2,063 3,586 4,464 1,587
Net Asset Value and Redemption Price per share.................................... $ 10.05 $ 10.65 $ 11.33 $ 10.32
======== ======== ======== ========
Maximum Sales Load.............................................................. 4.00% 4.00% 4.00% 4.00%
-------- -------- -------- --------
Maximum Offering Price per share (Net Assets Value/(100%-maximum sales charge)). $ 10.47 $ 11.09 $ 11.80 $ 10.75
Class B Shares (b):
Net Assets...................................................................... $ 10,228 $ 23,190 $ 10,168 $ 4,496
Shares Outstanding.............................................................. 1,018 2,179 900 436
Net Asset Value and Offering Price per share*................................... $ 10.04 $ 10.64 $ 11.30 $ 10.31
======== ======== ======== ========
Class I Shares (c):
Net Assets...................................................................... $253,447 $181,187 $599,249 $351,021
Shares Outstanding.............................................................. 25,222 16,995 52,872 33,985
Net Asset Value, Offering Price, and Redemption Price per share................. $ 10.05 $ 10.66 $ 11.33 $ 10.33
======== ======== ======== ========
* 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.
90
July 31, 2003
AMSOUTH FUNDS
Statements of Assets and Liabilities
(amounts in thousands, except per share amounts)
Institutional
U.S. Treasury Prime
Prime Treasury Reserve Tax-Exempt Obligations
Florida Tennessee Money Money Money Money Money
Tax-Exempt Tax-Exempt Market Market Market Market Market
Fund Fund Fund Fund Fund Fund Fund
---------- ---------- -------- -------- -------- ---------- -------------
$58,082 $49,430 $551,182 $137,472 $ 74,508 $162,903 $351,121
2,694 1,703 -- -- -- -- --
-- -- 159,960 55,772 30,940 -- 141,158
------- ------- -------- -------- -------- -------- --------
60,776 51,133 711,142 193,244 105,448 162,903 492,279
-- -- -- -- -- -- --
546 718 483 52 51 362 44
-- -- -- -- -- -- --
2 12 19 7 13 7 2
------- ------- -------- -------- -------- -------- --------
61,324 51,863 711,644 193,303 105,512 163,272 492,325
-- -- 202 27 21 26 267
-- -- 46,403 29,251 16,969 -- 30,847
-- -- -- -- -- -- --
6 6 206 45 30 36 29
1 1 5 3 1 3 4
9 8 117 17 14 15 79
1 1 10 2 1 3 7
9 17 136 69 47 26 22
------- ------- -------- -------- -------- -------- --------
26 33 47,079 29,414 17,083 109 31,255
------- ------- -------- -------- -------- -------- --------
$61,298 $51,830 $664,565 $163,889 $ 88,429 $163,163 $461,070
======= ======= ======== ======== ======== ======== ========
$58,489 $49,944 $664,568 $163,881 $ 88,426 $163,462 $461,039
89 82 -- 7 4 -- 31
26 101 (3) 1 (1) (299) --
2,694 1,703 -- -- -- -- --
------- ------- -------- -------- -------- -------- --------
$61,298 $51,830 $664,565 $163,889 $ 88,429 $163,163 $461,070
======= ======= ======== ======== ======== ======== ========
$ 6,955 $ 9,325 $439,061 $ 54,476 $ 46,753 $ 33,748 $193,468
650 903 439,099 54,476 46,761 33,808 193,460
$ 10.70 $ 10.33 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ======== ======== ======== ========
4.00% 4.00% -- -- -- -- --
------- ------- -------- -------- -------- -------- --------
$ 11.15 $ 10.76
$ 3,807 $ 2,936 $ 3,567 N/A N/A N/A $ 91,824
356 284 3,567 N/A N/A N/A 91,815
$ 10.68 $ 10.34 $ 1.00 N/A N/A N/A $ 1.00
======= ======= ======== ======== ======== ======== ========
$50,536 $39,569 $221,937 $109,413 $ 41,676 $129,415 $175,778
4,718 3,834 221,926 109,405 41,690 129,655 175,770
$ 10.71 $ 10.32 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ======== ======== ======== ========
See notes to financial statements.
91
AMSOUTH FUNDS
Statements of Operations
(amount in thousands)
For the year ended July 31, 2003
Select Enhanced Large
Value Equity Market Cap
Fund Fund Fund Fund
--------- ------ -------- -------
Investment Income:
Dividends..................... $ 13,269 $ 640 $ 1,312 $ 6,239
Dividends from affiliates..... 87 7 28 43
Interest...................... 2 -- 2 --
Securities lending............ 72 -- 1 81
--------- ------ ------- -------
Total Investment Income...... 13,430 647 1,343 6,363
--------- ------ ------- -------
Expenses:
Investment advisory........... 4,247 291 339 3,746
Administration................ 1,062 73 151 937
Distribution -- Class B Shares 178 43 64 158
Shareholder servicing --
Class A Shares............... 262 14 45 184
Shareholder servicing --
Class B Shares............... 59 16 21 53
Shareholder servicing --
Class I Shares............... 603 38 73 561
Accounting.................... 118 9 36 104
Custodian..................... 146 10 21 129
Transfer agent................ 225 43 63 201
Registration and filing....... 21 10 12 33
Other......................... 213 15 29 185
--------- ------ ------- -------
Total expenses before fee
reductions................. 7,134 562 854 6,291
Expenses reduced by:
Investment Advisor......... (41) (3) (13) (248)
Administrator.............. (15) (19) (43) (238)
Custodian.................. (31) (3) (6) (27)
Transfer Agent............. -- (25) (19) --
Distributor................ (201) (13) (24) (187)
Fund Accountant............ (79) (5) (11) (69)
--------- ------ ------- -------
Net Expenses................. 6,767 494 738 5,522
--------- ------ ------- -------
Net Investment Income (Loss).. 6,663 153 605 841
--------- ------ ------- -------
Realized/Unrealized
Gains/(Losses) from
Investments
Net realized gains/(losses)
from investment transactions
and futures**................ (117,200) 825 (3,413) (4,493)
Realized gain distributions
from underlying funds........ -- -- -- --
Change in unrealized
appreciation from
investments, futures, and
translation of assets and
liabilities denominated in
foreign currencies........... 153,621 4,147 15,444 51,641
--------- ------ ------- -------
Net Realized/Unrealized Gains
from Investments............. 36,421 4,972 12,031 47,148
--------- ------ ------- -------
Change in Net Assets
Resulting from Operations.... $ 43,084 $5,125 $12,636 $47,989
========= ====== ======= =======
* Dividends for the International Equity Fund are net of foreign withholding
taxes of $706.
**Represents realized gains/(losses) from investment transactions with
affiliates for the Strategic Portfolios.
See notes to financial statements.
92
For the year ended July 31, 2003
AMSOUTH FUNDS
Statements of Operations
(amount 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
- -------- ------- --------- ------------- -------- ----------- ----------- ----------- -----------
$ 2,057 $ 1,115 $ 319 $ 5,491* $ 1,680 $ -- $ -- $ -- $ --
39 24 32 -- 31 148 322 1,635 684
-- 1 46 54 3,370 -- -- -- --
37 2 125 209 18 -- -- -- --
- -------- ------- -------- ------- ------- ------- ------- ------- -------
2,133 1,142 522 5,754 5,099 148 322 1,635 684
- -------- ------- -------- ------- ------- ------- ------- ------- -------
2,026 933 1,810 2,634 1,210 46 41 151 54
506 187 302 421 302 46 41 151 54
61 47 13 4 134 8 20 16 11
43 20 12 10 178 23 19 51 20
21 16 5 1 45 2 6 6 4
342 119 216 310 93 20 16 80 26
59 38 37 72 41 5 4 16 6
70 26 41 108 42 6 6 21 7
80 64 61 47 114 64 48 69 58
26 15 12 33 11 17 17 28 28
99 37 60 84 61 11 10 31 9
- -------- ------- -------- ------- ------- ------- ------- ------- -------
3,333 1,502 2,569 3,724 2,231 248 228 620 277
(12) (375) (163) (927) (16) (23) (21) (76) (27)
(130) (51) (79) (105) (82) (23) (21) -- (27)
(14) (6) (9) -- (9) (1) (1) (5) (2)
-- (16) (8) -- (7) (27) (27) (18) (26)
(114) (40) (72) (103) (31) (17) (15) (49) (18)
(38) (14) (22) (31) (22) (3) (3) (11) (4)
- -------- ------- -------- ------- ------- ------- ------- ------- -------
3,025 1,000 2,216 2,558 2,064 154 140 461 173
- -------- ------- -------- ------- ------- ------- ------- ------- -------
(892) 142 (1,694) 3,196 3,035 (6) 182 1,174 511
- -------- ------- -------- ------- ------- ------- ------- ------- -------
(31,626) (2,855) (26,523) 3,252 (3,406) (7,110) (3,757) (8,020) (1,846)
-- -- -- -- -- 182 139 476 175
55,752 20,382 34,595 27,352 12,184 9,529 5,461 12,753 3,250
- -------- ------- -------- ------- ------- ------- ------- ------- -------
24,126 17,527 8,072 30,604 8,778 2,601 1,843 5,209 1,579
- -------- ------- -------- ------- ------- ------- ------- ------- -------
$ 23,234 $17,669 $ 6,378 $33,800 $11,813 $ 2,595 $ 2,025 $ 6,383 $ 2,090
======== ======= ======== ======= ======= ======= ======= ======= =======
See notes to financial statements.
93
AMSOUTH FUNDS
Statements of Operations
(amount in thousands)
For the year ended July 31, 2003
Limited
Government Term Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- ------- ------- ---------
Investment Income:
Dividends.............................................. $ -- $ -- $ -- $ --
Dividends from affiliates.............................. 139 58 130 133
Interest............................................... 13,965 8,742 32,398 15,957
Securities lending..................................... 66 46 183 --
-------- ------- ------- -------
Total Investment Income.............................. 14,170 8,846 32,711 16,090
-------- ------- ------- -------
Expenses:
Investment advisory.................................... 1,868 1,325 4,270 2,462
Administration......................................... 575 408 1,314 757
Distribution -- Class B Shares (b)..................... 65 123 79 34
Shareholder servicing -- Class A Shares (a)............ 42 65 114 36
Shareholder servicing -- Class B Shares (b)............ 22 41 27 12
Shareholder servicing -- Class I Shares (c)............ 393 242 901 540
Accounting............................................. 84 55 158 100
Custodian.............................................. 79 56 181 104
Transfer agent......................................... 69 52 191 67
Registration and filing................................ 24 6 9 --
Other.................................................. 117 82 264 159
-------- ------- ------- -------
Total expenses before fee reductions................. 3,338 2,455 7,508 4,271
Expenses reduced by:
Investment Advisor................................. (437) (334) (1,050) (954)
Administrator...................................... (145) (112) (349) (196)
Custodian.......................................... (17) (12) (39) (22)
Transfer Agent..................................... -- -- -- --
Distributor........................................ (131) (81) (300) (180)
Fund Accountant.................................... (43) (30) (98) (56)
-------- ------- ------- -------
Net Expenses......................................... 2,565 1,886 5,672 2,863
-------- ------- ------- -------
Net Investment Income.................................. 11,605 6,960 27,039 13,227
-------- ------- ------- -------
Realized/Unrealized Gains/(Losses) from Investments:
Net realized gains from investment transactions........ 8,185 1,070 11,539 1,238
Change in unrealized depreciation from investments..... (10,035) (1,377) (5,808) (2,667)
-------- ------- ------- -------
Net Realized/Unrealized Gains/(Losses) from Investments (1,850) (307) 5,731 (1,429)
-------- ------- ------- -------
Change in Net Assets Resulting from Operations......... $ 9,755 $ 6,653 $32,770 $11,798
======== ======= ======= =======
(a)Represents Class 2 Shares for the Institutional Prime Obligations Money
Market.
(b)Represents Class 3 Shares for the Institutional Prime Obligations Money
Market.
(c)Represents Class 1 Shares for the Institutional Prime Obligations Money
Market.
See notes to financial statements.
94
For the year ended July 31, 2003
AMSOUTH FUNDS
Statements of Operations
(amount in thousands)
Institutional
U.S. Treasury Prime
Prime Treasury Reserve Tax-Exempt Obligations
Florida Tennessee Money Money Money Money Money
Tax-Exempt Tax-Exempt Market Market Market Market Market
Fund Fund Fund Fund Fund Fund Fund
---------- ---------- ------- -------- -------- ---------- -------------
$ -- $ -- $ -- $ -- $ -- $ 99 $ --
20 22 -- -- -- -- --
2,626 2,078 12,515 2,862 2,420 2,258 7,720
-- -- 45 29 24 -- 27
------ ------ ------- ------ ------ ------ ------
2,646 2,100 12,560 2,891 2,444 2,357 7,747
------ ------ ------- ------ ------ ------ ------
409 362 3,448 805 674 740 1,057
126 111 1,724 402 337 370 529
26 20 29 -- -- -- 651
16 21 1,223 242 157 91 464
9 6 10 -- -- -- --
80 67 553 157 158 223 --
18 18 186 44 37 47 114
17 15 237 55 46 51 145
32 32 231 126 47 30 81
2 35 34 23 26 22 5
27 30 375 110 103 74 220
------ ------ ------- ------ ------ ------ ------
762 717 8,050 1,964 1,585 1,648 3,266
(160) (86) (431) (101) (84) (277) (687)
(66) (30) (862) -- (168) -- --
(4) (3) (47) (10) (8) (11) (28)
(21) (22) -- -- -- -- --
(27) (22) (199) (54) (53) (79) --
(9) (8) (127) (30) (25) (27) (78)
------ ------ ------- ------ ------ ------ ------
475 546 6,384 1,769 1,247 1,254 2,473
------ ------ ------- ------ ------ ------ ------
2,171 1,554 6,176 1,122 1,197 1,103 5,274
------ ------ ------- ------ ------ ------ ------
26 343 -- -- 2 -- --
(525) (499) -- -- -- -- --
------ ------ ------- ------ ------ ------ ------
(499) (156) -- -- -- -- --
------ ------ ------- ------ ------ ------ ------
$1,672 $1,398 $ 6,176 $1,122 $1,199 $1,103 $5,274
====== ====== ======= ====== ====== ====== ======
See notes to financial statements.
95
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
July 31, July 31, July 31, July 31, July 31, July 31,
2003 2002 2003 2002 2003 2002
---------- ---------- ---------- ---------- ---------- ----------
Value Fund Select Equity Fund Enhanced Market Fund
------------------------ -------------------- --------------------
Net Assets, Beginning of Period........................... $ 530,580 $ 688,970 $ 17,730 $ 11,294 $ 32,910 $ 53,848
--------- --------- -------- -------- -------- --------
Operations:
Net investment income (loss)............................. 6,663 3,834 153 29 605 109
Net realized gains (losses) from investment
transactions, futures, and option contracts............ (117,200) 44,820 825 1,307 (3,413) (4,213)
Change in unrealized appreciation/depreciation from
investments............................................ 153,621 (270,953) 4,147 (1,988) 15,444 (7,436)
--------- --------- -------- -------- -------- --------
Change in net assets resulting from operations............ 43,084 (222,299) 5,125 (652) 12,636 (11,540)
--------- --------- -------- -------- -------- --------
Dividends to:
Class A Shareholders:
From net investment income............................... (1,165) (630) (24) (8) (132) (66)
From net realized gains from investment transactions..... (3,842) (10,776) -- -- -- (312)
Class B Shareholders:
From net investment income............................... (131) (8) (9) (1) (9) (3)
From net realized gains from investment transactions..... (507) (1,102) -- -- -- (168)
Class I Shareholders:
From net investment income............................... (5,099) (3,128) (123) (23) (428) (43)
From net realized gains from investment transactions..... (17,634) (43,798) -- -- -- (246)
--------- --------- -------- -------- -------- --------
Change in net assets from dividends to shareholders....... (28,378) (59,442) (156) (32) (569) (838)
--------- --------- -------- -------- -------- --------
Change in net assets from capital share transactions...... (13,065) 123,351 36,713 7,120 84,153 (8,560)
--------- --------- -------- -------- -------- --------
Change in net assets...................................... 1,641 (158,390) 41,682 6,436 96,220 (20,938)
--------- --------- -------- -------- -------- --------
Net Assets, End of Period................................. $ 532,221 $ 530,580 $ 59,412 $ 17,730 $129,130 $ 32,910
========= ========= ======== ======== ======== ========
Strategic Portfolios:
Aggressive Growth
International Equity Fund Balanced Fund Portfolio
------------------------ -------------------- --------------------
Net Assets, Beginning of Period........................... $ 189,777 $ 148,945 $154,958 $166,762 $ 21,823 $ 25,092
--------- --------- -------- -------- -------- --------
Operations:
Net investment income (loss)............................. 3,196 885 3,035 4,192 (6) (69)
Net realized gains (losses) from investments, and
foreign currency transactions*......................... 3,252 (40,007) (3,406) 4,299 (7,110) (4,149)
Realized gain distributions from underlying funds........ -- -- -- -- 182 939
Change in unrealized appreciation/depreciation from
investments and translation of assets and liabilities
in foreign currencies.................................. 27,352 10,232 12,184 (21,559) 9,529 (3,549)
--------- --------- -------- -------- -------- --------
Change in net assets resulting from operations............ 33,800 (28,890) 11,813 (13,068) 2,595 (6,828)
--------- --------- -------- -------- -------- --------
Dividends to:
Class A Shareholders:
From net investment income............................... (3) -- (1,672) (1,806) (1) --
From net realized gains from investment transactions..... -- -- (916) (1,970) -- (453)
Class B Shareholders:
From net investment income............................... -- -- (287) (248) -- --
From net realized gains from investment transactions..... -- -- (234) (332) -- (48)
Class I Shareholders:
From net investment income............................... (425) (158) (1,566) (2,222) (2) --
From net realized gains from investment transactions..... -- -- (846) (2,428) -- (1,157)
--------- --------- -------- -------- -------- --------
Change in net assets from dividends to shareholders....... (428) (158) (5,521) (9,006) (3) (1,658)
--------- --------- -------- -------- -------- --------
Change in net assets from capital transactions............ 36,942 69,880 209 10,270 3,312 5,217
--------- --------- -------- -------- -------- --------
Proceeds from redemption fees collected................... 166 -- -- -- -- --
--------- --------- -------- -------- -------- --------
Change in net assets...................................... 70,480 40,832 6,501 (11,804) 5,904 (3,269)
--------- --------- -------- -------- -------- --------
Net Assets, End of Period................................. $ 260,257 $ 189,777 $161,459 $154,958 $ 27,727 $ 21,823
========= ========= ======== ======== ======== ========
*Represents realized gains/(losses) from investment transactions with
affiliates for the Strategic Portfolios.
See notes to financial statements.
96
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31,
2003 2002 2003 2002 2003 2002 2003 2002
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Large Cap Fund Capital Growth Fund Mid Cap Fund Small Cap Fund
- -------------------- -------------------- -------------------- --------------------
$473,011 $ 616,343 $267,396 $327,718 $ 45,753 $ 65,480 $146,227 $184,056
-------- --------- -------- -------- -------- -------- -------- --------
841 240 (892) (1,754) 142 (749) (1,694) (1,761)
(4,493) 31,495 (31,626) (58,901) (2,855) (5,295) (26,523) (28,063)
51,641 (170,150) 55,752 (26,541) 20,382 (7,918) 34,595 (25,781)
-------- --------- -------- -------- -------- -------- -------- --------
47,989 (138,415) 23,234 (87,196) 17,669 (13,962) 6,378 (55,605)
-------- --------- -------- -------- -------- -------- -------- --------
(100) (17) -- -- (8) -- -- --
(2,938) (4,137) -- -- -- -- -- --
-- -- -- -- -- -- -- --
(898) (1,616) -- -- -- -- -- --
(832) (325) (6) -- (148) -- -- --
(15,666) (28,167) -- -- -- -- -- --
-------- --------- -------- -------- -------- -------- -------- --------
20,434 (34,262) (6) -- (156) -- -- --
-------- --------- -------- -------- -------- -------- -------- --------
5,500 29,345 (33,340) 26,874 69,842 (5,765) 30,052 17,776
-------- --------- -------- -------- -------- -------- -------- --------
33,055 (143,332) (10,112) (60,322) 87,355 (19,727) 36,430 (37,829)
-------- --------- -------- -------- -------- -------- -------- --------
$506,066 $ 473,011 $257,284 $267,396 $133,108 $ 45,753 $182,657 $146,227
======== ========= ======== ======== ======== ======== ======== ========
Strategic Portfolios: Strategic Portfolios:
Strategic Portfolios: Growth & Income Moderate Growth &
Growth Portfolio Portfolio Income Portfolio
- -------------------- -------------------- --------------------
$ 18,264 $ 20,739 $ 71,099 $ 83,069 $ 25,049 $ 21,726
-------- --------- -------- -------- -------- --------
182 189 1,173 1,621 511 569
(3,757) (2,443) (8,020) (7,726) (1,846) (1,263)
139 470 476 1,498 175 472
5,461 (1,623) 12,754 (3,832) 3,250 (1,645)
-------- --------- -------- -------- -------- --------
2,025 (3,407) 6,383 (8,439) 2,090 (1,867)
-------- --------- -------- -------- -------- --------
(68) (42) (313) (268) (154) (74)
-- (149) -- (368) (29) (63)
(7) (6) (18) (26) (18) (21)
-- (57) -- (58) (4) (24)
(102) (142) (863) (1,345) (339) (469)
-- (437) -- (1,874) (64) (389)
-------- --------- -------- -------- -------- --------
(177) (833) (1,194) (3,939) (608) (1,040)
-------- --------- -------- -------- -------- --------
5,990 1,765 7,956 408 4,769 6,230
-------- --------- -------- -------- -------- --------
7,838 (2,475) 13,145 (11,970) 6,251 3,323
-------- --------- -------- -------- -------- --------
$ 26,102 $ 18,264 $ 84,244 $ 71,099 $ 31,300 $ 25,049
======== ========= ======== ======== ======== ========
See notes to financial statements.
97
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
Year Ended Year Ended Year Ended Year Ended
July 31, July 31, July 31, July 31,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Government Income Fund Limited Term Bond Fund
---------------------- --------------------
Net Assets, Beginning of Period....................................... $ 275,553 $ 309,406 $ 184,939 $167,793
---------- ---------- --------- --------
Operations:
Net investment income............................................... 11,605 14,552 6,960 8,017
Net realized gains from investment transactions..................... 8,185 664 1,070 197
Change in unrealized appreciation/depreciation from investments..... (10,035) 5,396 (1,377) 2,872
---------- ---------- --------- --------
Change in net assets resulting from operations........................ 9,755 20,612 6,653 11,086
---------- ---------- --------- --------
Dividends to:
Class A Shareholders:
From net investment income.......................................... (670) (353) (1,030) (667)
From net realized gains from investment transactions................ (150) -- -- --
From tax return of capital.......................................... -- (7) -- --
Class B Shareholders:
From net investment income.......................................... (275) (112) (512) (210)
From net realized gains from investment transactions................ (60) -- -- --
From tax return of capital.......................................... -- (2) -- --
Class I Shareholders:
From net investment income.......................................... (10,935) (15,084) (6,543) (7,591)
From net realized gains from investment transactions................ (3,633) -- -- --
From tax return of capital.......................................... -- (303) -- --
---------- ---------- --------- --------
Change in net assets from dividends to shareholders................... (15,723) (15,861) (8,085) (8,468)
---------- ---------- --------- --------
Change in net assets from capital share transactions.................. 14,811 (38,604) 59,081 14,528
---------- ---------- --------- --------
Change in net assets.................................................. 8,843 (33,853) 57,649 17,146
---------- ---------- --------- --------
Net Assets, End of Period............................................. $ 284,396 $ 275,553 $ 242,588 $184,939
========== ========== ========= ========
Prime U.S. Treasury
Money Market Fund Money Market Fund
---------------------- --------------------
Net Assets, Beginning of Period....................................... $1,326,177 $1,312,547 $ 267,376 $300,541
---------- ---------- --------- --------
Operations:
Net investment income............................................... 6,176 21,797 1,122 4,121
Net realized gains (losses) from investment transactions.......... -- 54 -- --
Change in unrealized appreciation/depreciation from investments... -- -- -- --
---------- ---------- --------- --------
Change in net assets resulting from operations........................ 6,176 21,851 1,122 4,121
---------- ---------- --------- --------
Dividends to:
Class A Shareholders (a):
From net investment income.......................................... (3,110) (8,874) (469) (1,435)
Class B Shareholders (b):
From net investment income.......................................... (10) (18) -- --
Class I Shareholders (c):
From net investment income.......................................... (3,056) (12,905) (653) (2,686)
---------- ---------- --------- --------
Change in net assets from dividends to shareholders................... (6,176) (21,797) (1,122) (4,121)
---------- ---------- --------- --------
Change in net assets from capital share transactions.................. (661,612) 13,576 (103,487) (33,165)
---------- ---------- --------- --------
Change in net assets.................................................. (661,612) 13,630 (103,487) (33,165)
---------- ---------- --------- --------
Net Assets, End of Period............................................. $ 664,565 $1,326,177 $ 163,889 $267,376
========== ========== ========= ========
(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.
See notes to financial statements.
98
AMSOUTH FUNDS
Statements of Changes in Net Assets
(amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31,
2003 2002 2003 2002 2003 2002 2003 2002
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Bond Fund Municipal Bond Fund Florida Tax-Exempt Fund Tennessee Tax-Exempt Fund
- --------------------- -------------------- ---------------------- ------------------------
$ 634,644 $633,927 $386,523 $390,129 $ 61,550 $ 61,833 $54,419 $61,889
- ---------- -------- -------- -------- --------- -------- ------- -------
27,039 30,798 13,227 15,297 2,171 2,320 1,554 1,788
11,539 9,340 1,238 757 26 325 343 753
(5,808) 12,107 (2,667) 7,520 (525) 1,156 (499) 627
- ---------- -------- -------- -------- --------- -------- ------- -------
32,770 52,245 11,798 23,574 1,672 3,801 1,398 3,168
- ---------- -------- -------- -------- --------- -------- ------- -------
(2,037) (1,263) (450) (403) (213) (132) (217) (102)
(588) (58) (43) (10) (1) -- -- --
-- -- -- -- -- -- -- --
(392) (376) (112) (85) (91) (57) (49) (38)
(139) (22) (14) (2) -- -- -- --
-- -- -- -- -- -- -- --
(27,765) (31,417) (11,952) (15,192) (1,866) (2,085) (1,258) (1,667)
(7,893) (1,498) (1,118) (339) (5) -- -- --
-- -- -- -- -- -- -- --
- ---------- -------- -------- -------- --------- -------- ------- -------
(38,814) (34,634) (13,689) (16,031) (2,176) (2,274) (1,524) (1,807)
- ---------- -------- -------- -------- --------- -------- ------- -------
31,408 (16,894) (12,730) (11,149) 252 (1,810) (2,463) (8,831)
- ---------- -------- -------- -------- --------- -------- ------- -------
25,364 717 (14,621) (3,606) (252) (283) (2,589) (7,470)
- ---------- -------- -------- -------- --------- -------- ------- -------
$ 660,008 $634,644 $371,902 $386,523 $ 61,298 $ 61,550 $51,830 $54,419
========== ======== ======== ======== ========= ======== ======= =======
Institutional
Treasury Reserve Tax-Exempt Prime Obligations
Money Market Fund Money Market Fund Money Market Fund
- --------------------- -------------------- ----------------------
$ 316,986 $366,515 $206,543 $192,633 $ 667,633 $753,181
- ---------- -------- -------- -------- --------- --------
1,197 5,520 1,103 1,957 5,274 12,684
-- -- -- (9) -- 27
-- -- -- -- -- --
- ---------- -------- -------- -------- --------- --------
1,197 5,520 1,103 1,948 5,274 12,711
- ---------- -------- -------- -------- --------- --------
(376) (1,344) (173) (358) (1,709) (5,402)
-- -- -- -- (1,003) (2,954)
(821) (4,176) (930) (1,599) (2,562) (4,328)
- ---------- -------- -------- -------- --------- --------
(1,197) (5,520) (1,103) (1,957) (5,274) (12,684)
- ---------- -------- -------- -------- --------- --------
(228,557) (49,529) (43,380) 13,919 (206,563) (85,575)
- ---------- -------- -------- -------- --------- --------
(228,557) (49,529) (43,380) 13,910 (206,563) (85,548)
- ---------- -------- -------- -------- --------- --------
$ 88,429 $316,986 $163,163 $206,543 $ 461,070 $667,633
========== ======== ======== ======== ========= ========
See notes to financial statements.
99
AMSOUTH FUNDS
Notes to Financial Statements
July 31, 2003
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 a diversified, 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 Bond Fund, the AmSouth 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 U.S. Treasury 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").
2. Reorganization:
The shareholders of the AmSouth Limited Term Tennessee Tax-Exempt Fund
approved at a special meeting of the shareholders held on October 15, 2002, a
Plan of Reorganization ("Plan") effective November 1, 2002. The Plan, which
qualified as a tax-free exchange for federal income tax purposes, provided for
the transfer of all of the assets of the AmSouth Limited Term Tennessee
Tax-Exempt Fund to the AmSouth Tennessee Tax-Exempt Fund in exchange for Class
A and Class B shares of the Tennessee Tax-Exempt Fund and the assumption by the
Tennessee Tax-Exempt Fund of all of the liabilities of the Limited Term
Tennessee Tax-Exempt Fund, followed by the dissolution and liquidation of the
Limited Term Tennessee Tax-Exempt Fund, and the distribution of shares of the
Tennessee Tax-Exempt Fund to the shareholders of the Limited Term Tennessee
Tax-Exempt Fund. The following is a summary of shares outstanding, net assets,
net asset value per share, undistributed net realized losses, and unrealized
appreciation immediately prior to and following the reorganization:
After
Before Reorganization Reorganization
------------------------ --------------
AmSouth
Limited Term AmSouth AmSouth
Tennessee Tennessee Tennessee
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
------------ ----------- --------------
Class A
Shares.......................... 850,232 372,321 1,214,802
Net Assets...................... $8,769,633 $ 3,875,588 $12,645,221
Net Asset Value................. $ 10.31 $ 10.41 $ 10.41
Class B
Shares.......................... 97,040 176,597 272,645
Net Assets...................... $1,000,801 $ 1,840,087 $ 2,840,888
Net Asset Value................. $ 10.31 $ 10.42 $ 10.42
Class I
Shares.......................... -- 4,519,017 4,519,017
Net Assets...................... -- $47,001,860 $47,001,860
Net Asset Value................. -- $ 10.40 $ 10.40
Unrealized Appreciation............ $ 290,780 $ 2,196,459 $ 2,487,239
Undistributed Realized Capital Loss $ (53,964) $ (188,145) $ (242,109)
The AmSouth Tennessee Tax-Exempt Fund retained its investment objective and
financial history after the reorganization.
Continued
100
AMSOUTH FUNDS
Notes to Financial Statements
2. Reorganization (continued)
The shareholders of the AmSouth Limited Term U.S. Government Fund approved
at a special meeting of the shareholders held on October 15, 2002, a Plan of
Reorganization ("Plan") effective November 1, 2002. The Plan, which qualified
as a tax-free exchange for federal income tax purposes, provided for the
transfer of all of the assets of the AmSouth Limited Term U.S. Government Fund
to the AmSouth Government Income Fund in exchange for Class A, Class B, and
Class I shares of the Government Income Fund and the assumption by the
Government Income Fund of all of the liabilities of the Limited Term U.S.
Government Fund, followed by the dissolution and liquidation of the Limited
Term U.S. Government Fund, and the distribution of shares of the Government
Income Fund to the shareholders of the Limited Term U.S. Government Fund. The
following is a summary of shares outstanding, net assets, net asset value per
share, undistributed net realized gains/losses, and unrealized appreciation
immediately prior to and following the reorganization:
After
Before Reorganization Reorganization
------------------------- --------------
AmSouth
Limited Term AmSouth AmSouth
U.S. Government Government
Government Income Income
Fund Fund Fund
------------ ------------ --------------
Class A
Shares................................. 661,339 1,016,156 1,697,571
Net Assets............................. $ 6,985,312 $ 10,416,782 $ 17,402,094
Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25
Class B
Shares................................. 535,539 409,428 961,249
Net Assets............................. $ 5,655,809 $ 4,196,376 $ 9,852,185
Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25
Class I
Shares................................. 3,108,506 24,503,522 27,705,597
Net Assets............................. $32,828,223 $251,214,253 $284,042,476
Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25
Unrealized Appreciation................... $ 1,696,549 $ 15,082,282 $ 16,778,831
Undistributed Realized Capital Gain/(Loss) $ (465,656) $ 203,010 $ (262,646)
The AmSouth Government Income Fund retained its investment objective and
financial history after the reorganization.
Continued
101
AMSOUTH FUNDS
Notes to Financial Statements
2. Reorganization (continued)
The shareholders of the AmSouth Equity Income Fund approved at a special
meeting of the shareholders held on October 15, 2002, a Plan of Reorganization
("Plan") effective November 8, 2002. The Plan, which qualified as a tax-free
exchange for federal income tax purposes, provided for the transfer of all of
the assets of the AmSouth Equity Income Fund to the AmSouth Value Fund in
exchange for Class A, Class B, and Class I shares of the Value Fund and the
assumption by the Value Fund of all of the liabilities of the Equity Income
Fund, followed by the dissolution and liquidation of the Equity Income Fund,
and the distribution of shares of the Value Fund to the shareholders of the
Equity Income Fund. The following is a summary of shares outstanding, net
assets, net asset value per share, undistributed net realized losses, and
unrealized depreciation immediately prior to and following the reorganization:
After
Before Reorganization Reorganization
-------------------------- --------------
AmSouth
Equity Income AmSouth Value AmSouth Value
Fund Fund Fund
------------- ------------- --------------
Class A
Shares.......................... 1,689,021 7,799,078 9,362,304
Net Assets...................... $ 18,206,099 $ 90,831,411 $109,037,510
Net Asset Value................. $ 10.78 $ 11.65 $ 11.65
Class B
Shares.......................... 1,647,093 1,018,302 2,552,269
Net Assets...................... $ 17,577,004 $ 11,668,265 $ 29,245,269
Net Asset Value................. $ 10.67 $ 11.46 $ 11.46
Class I
Shares.......................... 2,679,390 35,022,078 37,508,732
Net Assets...................... $ 28,903,417 $407,077,769 $435,981,186
Net Asset Value................. $ 10.79 $ 11.62 $ 11.62
Unrealized Depreciation............ $ (1,062,892) $(79,501,525) $(80,564,417)
Undistributed Realized Capital Loss $(37,613,990) $ (8,551,277) $(46,165,267)
The AmSouth Value Fund retained its investment objective and financial
history after the reorganization.
3. 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 accounting principles generally accepted in the United
States ("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 Trust's Board of
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.
The value of each equity security is based either on the last sale price on
a national securities exchange, or in the absence of recorded sales, by
reference to the latest available bid and asked prices in the principal market
in which such securities are
Continued
102
AMSOUTH FUNDS
Notes to Financial Statements
3. Significant Accounting Policies (continued)
normally traded. Securities or other assets for which market quotations are not
readily available are valued by or at the direction of the Trust's Board of
Trustees.
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 Board of Trustees, or
by procedures approved by the Board of 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:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium or
discount. Dividend income is recorded on the ex-dividend date. Realized gains
or losses from sales of securities are determined by comparing the identified
cost of the security lot sold with the net sales proceeds.
Financial Futures Contracts:
The Enhanced Market, Select Equity, Large Cap, Capital Growth, Mid Cap,
International Equity, Limited Term Bond, 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 acquire repurchase agreements from member banks of the Federal
Deposit Insurance Corporation and from registered broker/dealers which AmSouth
Investment Management Company, LLC ("AIMCO"), deems creditworthy under
guidelines approved by the Board of Trustees, subject to the seller's agreement
to repurchase such securities at a mutually agreed upon date and price. The
repurchase price generally equals the price paid by the Funds plus interest
negotiated on the basis of current short-term rates, which may be more or less
than the rate on the underlying portfolio securities. The seller, under a
repurchase agreement, is required to maintain the value of collateral held
pursuant to the agreement at not less than the repurchase price (including
accrued interest). Securities subject to repurchase agreements are held by the
Funds' custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. All repurchase agreements are fully
collateralized by various U.S. government securities.
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.
Continued
103
AMSOUTH FUNDS
Notes to Financial Statements
3. Significant Accounting Policies (continued)
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.
Forward Currency Contracts:
The International Equity Fund may enter into a forward currency contract
("forward") which is an agreement between two parties to buy and sell a
currency at a set price on a future date. The market value of the forward
fluctuates with changes in currency exchange rates. The forward is
marked-to-market daily and the change in market value is recorded by the Fund
as unrealized appreciation or depreciation. When the forward is closed, the
Fund records a realized gain or loss equal to the difference between the value
at the time it was opened and the value at the time it was closed. The Fund
could be exposed to risk if a counterparty is unable to meet the terms of a
forward or if the value of the currency changes unfavorably.
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.
Financial Instruments:
The Select Equity, Enhanced Market, Large Cap, Capital Growth, Mid Cap,
International Equity, Balanced, and Bond Funds may write call options only on
securities that are owned by the Fund ("covered calls"). A written call option
gives a specified counter-party the right to require the writer of the option
to deliver the agreed upon securities, at the agreed upon price, up until the
expiration date specified in the contract. For this right, a premium is paid to
the writer of the option. The premium received by the Fund for writing the
option is booked as realized gains to the Fund. The risks associated with
writing a covered call option are diminished compared to writing an uncovered
call. The Fund does not bear the risk of having to purchase the securities in
the open market at a price greater than the call price should the call option
be exercised. Since the Fund owns the securities on which the call has been
written, the Fund bears the risk of not receiving the fair market value of a
security if the option is exercised. They would be required to sell the
securities at the agreed upon price, which would presumably be lower than the
fair market value of the securities if the option is exercised.
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 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.
Continued
104
AMSOUTH FUNDS
Notes to Financial Statements
3. Significant Accounting Policies (continued)
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 Board of Trustees and when, in the judgment of the Advisor, the
consideration which can be earned currently from such securities loans
justifies the attendant risks. Loans are subject to termination by the Funds or
the borrower at any time, and are, therefore, not considered to be illiquid
investments. As of July 31, 2003, the following Funds had securities on loan
(amounts in thousands):
Market
Market Value of
Value of Loaned
Collateral Securities
---------- ----------
Value Fund....................................... $ 78,576 $ 76,314
Enhanced Market Fund............................. 195 188
Large Cap Equity................................. 47,956 46,002
Capital Growth................................... 23,731 23,371
Mid Cap Equity................................... 4,773 4,664
Small Cap Fund................................... 19,647 20,121
International Equity Fund........................ 16,072 15,486
Balanced Fund.................................... 19,401 18,830
Government Income Fund........................... 69,495 67,676
Limited Term Bond Fund........................... 62,686 61,166
Bond Fund........................................ 191,636 185,843
Prime Money Market Fund.......................... 46,403 45,411
U.S. Treasury Money Market Fund.................. 29,251 29,232
Treasury Reserve Money Market Fund............... 16,969 16,944
Institutional Prime Obligations Money Market Fund 30,847 30,235
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 "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.
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 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
105
AMSOUTH FUNDS
Notes to Financial Statements
3. Significant Accounting Policies (continued)
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.
4. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 2003 were as follows (amounts in thousands):
Purchases Sales
--------- --------
Value Fund................................................ $603,125 $688,745
Select Equity Fund........................................ 38,843 2,825
Enhanced Market Fund...................................... 96,292 19,153
Large Cap Equity.......................................... 30,963 37,058
Capital Growth............................................ 379,137 403,571
Mid Cap Equity............................................ 119,137 52,192
Small Cap Fund............................................ 349,231 319,976
International Equity Fund................................. 81,374 36,267
Balanced Fund............................................. 125,576 130,487
Strategic Portfolios: Aggressive Growth Portfolio......... 27,348 22,761
Strategic Portfolios: Growth Portfolio.................... 32,737 25,609
Strategic Portfolios: Growth and Income Portfolio......... 110,684 101,734
Strategic Portfolios: Moderate Growth and Income Portfolio 41,225 36,206
Government Income Fund.................................... 113,889 125,266
Limited Term Bond Fund.................................... 105,537 56,262
Bond Fund................................................. 241,383 205,977
Municipal Bond Fund....................................... 26,175 56,825
Florida Tax-Exempt Fund................................... 5,296 3,660
Tennessee Tax-Exempt Fund................................. 10,774 11,808
Continued
106
AMSOUTH FUNDS
Notes to Financial Statements
5. Affiliated Party Transactions:
AIMCO serves as investment advisor for the Trust. Under the terms of the
investment advisory agreement, AIMCO, 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
Percentage of Average
Daily Net Assets
---------------------
Value Fund................................................ 0.80%
Select Equity Fund........................................ 0.80%
Enhanced Market Fund...................................... 0.45%
Large Cap................................................. 0.80%
Capital Growth............................................ 0.80%
Mid Cap Equity............................................ 1.00%
Small Cap Fund............................................ 1.20%
International Equity Fund................................. 1.25%
Balanced Fund............................................. 0.80%
Strategic Portfolios: Aggressive Growth Portfolio......... 0.20%
Strategic Portfolios: Growth Portfolio.................... 0.20%
Strategic Portfolios: Growth and Income Portfolio......... 0.20%
Strategic Portfolios: Moderate Growth and Income Portfolio 0.20%
Government Income Fund.................................... 0.65%
Limited Term Bond Fund.................................... 0.65%
Bond Fund................................................. 0.65%
Municipal Bond Fund....................................... 0.65%
Florida Tax-Exempt Fund................................... 0.65%
Tennessee Tax-Exempt Fund................................. 0.65%
Prime Money Market Fund................................... 0.40%
U.S. Treasury Money Market Fund........................... 0.40%
Treasury Reserve Money Market Fund........................ 0.40%
Tax-Exempt Money Market Fund.............................. 0.40%
Institutional Prime Obligations Money Market Fund......... 0.20%
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 the
International Equity Fund as the custodian.
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, the Administrator receives a fee 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 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 whom ASO receives a fee based on a percentage of each Fund's
average daily net assets.
Continued
107
AMSOUTH FUNDS
Notes to Financial Statements
Affiliated Party Transactions (continued)
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 value funds. For the year ended July 31, 2003, BISYS
received $2,962,534 from commissions earned on sales of shares of the Funds'
variable net asset value funds. BISYS reallowed $2,844 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 0.25% 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 period there were no commissions paid to affiliated brokers for
security transactions.
AIMCO, 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.
6. Concentration of Credit Risk
The 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.
7. 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.
Transactions in capital shares for the Funds were as follows (amounts in
thousands):
Continued
108
AMSOUTH FUNDS
Notes to Financial Statements
7. Capital Share Transactions (continued)
----------------------------------------
Class A Shares:
---------------------------------------
Proceeds Cost of Total
from shares Dividends shares Class A
issued reinvested redeemed Shares
----------- ---------- -------- -------
Value Fund
Year Ended July 31, 2003. $39,558(a) 4,804 (33,262) 11,100
Year Ended July 31, 2002. $55,652 10,874 (26,570) 39,956
Select Equity Fund
Year Ended July 31, 2003. $ 3,518 22 (1,523) 2,017
Year Ended July 31, 2002. $ 2,927 8 (913) 2,022
Enhanced Market Fund
Year Ended July 31, 2003. $ 6,711 123 (4,476) 2,358
Year Ended July 31, 2002. $ 6,196 350 (7,540) (994)
Large Cap Fund
Year Ended July 31, 2003. $44,810 2,565 (21,821) 25,554
Year Ended July 31, 2002. $32,795 3,488 (25,199) 11,084
Capital Growth Fund
Year Ended July 31, 2003. $11,310 -- (5,662) 5,648
Year Ended July 31, 2002. $63,690(d) -- (62,591) 1,099
Mid Cap Fund
Year Ended July 31, 2003. $ 4,350 7 (4,347) 10
Year Ended July 31, 2002. $ 2,640 -- (4,320) (1,680)
Small Cap Fund
Year Ended July 31, 2003. $12,165 -- (11,416) 749
Year Ended July 31, 2002. $23,941 -- (24,892) (951)
International Equity Fund
Year Ended July 31, 2003. $76,156 2 (76,657) (499)
Year Ended July 31, 2002. $23,798 -- (22,173) 1,625
Balanced Fund
Year Ended July 31, 2003. $17,167 2,508 (13,840) 5,835
Year Ended July 31, 2002. $36,964 3,681 (16,459) 24,186
Strategic Portfolios:
Aggressive Growth
Portfolio
Year Ended July 31, 2003. $ 5,884 1 (3,329) 2,556
Year Ended July 31, 2002. $ 8,969 450 (1,213) 8,206
Strategic Portfolios:
Growth Portfolio
Year Ended July 31, 2003. $ 7,283 67 (1,619) 5,731
Year Ended July 31, 2002. $ 4,690 188 (579) 4,299
Strategic Portfolios:
Growth & Income Portfolio
Year Ended July 31, 2003. $16,228 311 (3,905) 12,634
Year Ended July 31, 2002. $13,493 635 (4,314) 9,814
Strategic Portfolios:
Moderate Growth & Income
Portfolio
Year Ended July 31, 2003. $ 5,828 180 (1,760) 4,248
Year Ended July 31, 2002. $ 7,077 136 (771) 6,442
CAPITAL TRANSACTIONS (amounts in thousands):
-------------------------------------------------------------------------------------------------------
Class B Shares: Class I Shares:
-------------------------------------- -----------------------------------------
Proceeds Cost of Total Proceeds Cost of Total
from shares Dividends shares Class B from shares Dividends shares Class I
issued reinvested redeemed Shares issued reinvested redeemed Shares
----------- ---------- -------- ------- ----------- ---------- -------- -------
Value Fund
Year Ended July 31, 2003. 19,110(b) 595 (6,057) 13,648 123,675(c) 10,502 (171,990) (37,813)
Year Ended July 31, 2002. 11,633 1,064 (2,952) 9,745 187,113 22,992 (136,455) 73,650
Select Equity Fund
Year Ended July 31, 2003. 3,648 8 (1,194) 2,462 37,387 59 (5,212) 32,234
Year Ended July 31, 2002. 4,276 1 (779) 3,498 1,932 19 (351) 1,600
Enhanced Market Fund
Year Ended July 31, 2003. 2,347 8 (2,044) 311 98,456 135 (17,107) 81,484
Year Ended July 31, 2002. 1,458 158 (3,392) (1,776) 10,828 172 (16,790) (5,790)
Large Cap Fund
Year Ended July 31, 2003. 4,266 819 (4,573) 512 65,963 11,719 (98,249) (20,567)
Year Ended July 31, 2002. 7,098 1,482 (6,393) 2,187 83,707 20,143 (87,776) 16,074
Capital Growth Fund
Year Ended July 31, 2003. 962 -- (1,806) (844) 54,309 1 (92,454) (38,144)
Year Ended July 31, 2002. 4,235(e) -- (2,167) 2,068 114,640(f) -- (90,933) 23,707
Mid Cap Fund
Year Ended July 31, 2003. 501 -- (1,607) (1,106) 81,930 102 (11,094) 70,938
Year Ended July 31, 2002. 1,036 -- (2,906) (1,870) 40,396 -- (42,611) (2,215)
Small Cap Fund
Year Ended July 31, 2003. 334 -- (354) (20) 83,733 -- (54,410) 29,323
Year Ended July 31, 2002. 693 -- (759) (66) 108,660 -- (89,867) 18,793
International Equity Fund
Year Ended July 31, 2003. 1,247 -- (1,000) 247 211,555 196 (174,391) 37,360
Year Ended July 31, 2002. 245 -- (193) 52 365,870 52 (297,719) 68,203
Balanced Fund
Year Ended July 31, 2003. 5,980 482 (4,005) 2,457 7,572 2,204 (17,859) (8,083)
Year Ended July 31, 2002. 12,662 538 (3,453) 9,747 15,330 3,747 (42,740) (23,663)
Strategic Portfolios:
Aggressive Growth
Portfolio
Year Ended July 31, 2003. 1,299 -- (182) 1,117 3,307 2 (3,670) (361)
Year Ended July 31, 2002. 654 48 (68) 634 4,578 1,140 (9,341) (3,623)
Strategic Portfolios:
Growth Portfolio
Year Ended July 31, 2003. 2,822 7 (493) 2,336 2,438 100 (4,615) (2,077)
Year Ended July 31, 2002. 954 62 (414) 602 2,444 559 (6,139) (3,136)
Strategic Portfolios:
Growth & Income Portfolio
Year Ended July 31, 2003. 2,492 18 (455) 2,055 9,776 844 (17,353) (6,733)
Year Ended July 31, 2002. 666 80 (485) 261 9,646 3,144 (22,457) (9,667)
Strategic Portfolios:
Moderate Growth & Income
Portfolio
Year Ended July 31, 2003. 1,922 22 (217) 1,727 3,448 402 (5,056) (1,206)
Year Ended July 31, 2002. 608 43 (757) (106) 5,177 854 (6,137) (106)
--------------------
Total net increase
(decrease) from
capital transactions
--------------------
Value Fund
Year Ended July 31, 2003. $(13,065)
Year Ended July 31, 2002. $123,351
Select Equity Fund
Year Ended July 31, 2003. $ 36,713
Year Ended July 31, 2002. $ 7,120
Enhanced Market Fund
Year Ended July 31, 2003. $ 84,153
Year Ended July 31, 2002. $ (8,560)
Large Cap Fund
Year Ended July 31, 2003. $ 5,499
Year Ended July 31, 2002. $ 29,345
Capital Growth Fund
Year Ended July 31, 2003. $(33,340)
Year Ended July 31, 2002. $ 26,874
Mid Cap Fund
Year Ended July 31, 2003. $ 69,842
Year Ended July 31, 2002. $ (5,765)
Small Cap Fund
Year Ended July 31, 2003. $ 30,052
Year Ended July 31, 2002. $ 17,776
International Equity Fund
Year Ended July 31, 2003. $ 37,108
Year Ended July 31, 2002. $ 69,880
Balanced Fund
Year Ended July 31, 2003. $ 209
Year Ended July 31, 2002. $ 10,270
Strategic Portfolios:
Aggressive Growth
Portfolio
Year Ended July 31, 2003. $ 3,312
Year Ended July 31, 2002. $ 5,217
Strategic Portfolios:
Growth Portfolio
Year Ended July 31, 2003. $ 5,990
Year Ended July 31, 2002. $ 1,765
Strategic Portfolios:
Growth & Income Portfolio
Year Ended July 31, 2003. $ 7,956
Year Ended July 31, 2002. $ 408
Strategic Portfolios:
Moderate Growth & Income
Portfolio
Year Ended July 31, 2003. $ 4,769
Year Ended July 31, 2002. $ 6,230
- --------
(a)Proceeds from Shares Issued include $18,206 issued in connection with the
AmSouth Equity Income Fund Merger.
(b)Proceeds from Shares Issued include $17,577 issued in connection with the
AmSouth Equity Income Fund Merger.
(c)Proceeds from Shares Issued include $28,903 issued in connection with the
AmSouth Equity Income Fund Merger.
(d)Proceeds from Shares Issued include $2,993 issued in connection with the
AmSouth Growth Fund Merger.
(e)Proceeds from Shares Issued include $3,051 issued in connection with the
AmSouth Growth Fund Merger.
(f)Proceeds from Shares Issued include $3,939 issued in connection with the
AmSouth Growth Fund Merger.
Continued
109
AMSOUTH FUNDS
Notes to Financial Statements
7. Capital Share Transactions (continued)
-------------------------------------
Class A Shares:
------------------------------------
Total
Class A
Issued Reinvested Redeemed Shares
------ ---------- -------- -------
Value Fund
Year Ended July 31, 2003..................... 3,327(a) 407 (2,737) 997
Year Ended July 31, 2002..................... 3,029 628 (1,580) 2,077
Select Equity Fund
Year Ended July 31, 2003..................... 321 2 (142) 181
Year Ended July 31, 2002..................... 252 1 (79) 174
Enhanced Market Fund
Year Ended July 31, 2003..................... 748 14 (498) 264
Year Ended July 31, 2002..................... 568 31 (702) (103)
Large Cap Fund
Year Ended July 31, 2003..................... 3,012 174 (1,451) 1,735
Year Ended July 31, 2002..................... 1,717 178 (1,334) 561
Capital Growth Fund
Year Ended July 31, 2003..................... 1,379 -- (713) 666
Year Ended July 31, 2002..................... 6,684(d) -- (6,419) 265
Mid Cap Fund
Year Ended July 31, 2003..................... 478 1 (484) (5)
Year Ended July 31, 2002..................... 242 -- (405) (163)
Small Cap Fund
Year Ended July 31, 2003..................... 1,914 -- (1,810) 104
Year Ended July 31, 2002..................... 2,829 -- (2,937) (108)
International Equity Fund
Year Ended July 31, 2003..................... 10,512 -- (10,473) 39
Year Ended July 31, 2002..................... 2,845 -- (2,625) 220
Balanced Fund
Year Ended July 31, 2003..................... 1,565 231 (1,274) 522
Year Ended July 31, 2002..................... 3,078 311 (1,407) 1,982
Strategic Portfolios: Aggressive Growth
Portfolio
Year Ended July 31, 2003..................... 861 -- (474) 387
Year Ended July 31, 2002..................... 1,028 52 (145) 935
Strategic Portfolios: Growth Portfolio
Year Ended July 31, 2003..................... 957 9 (215) 751
Year Ended July 31, 2002..................... 528 22 (69) 481
Strategic Portfolios: Growth & Income Portfolio
Year Ended July 31, 2003..................... 1,954 37 (471) 1,520
Year Ended July 31, 2002..................... 1,466 70 (487) 1,049
Strategic Portfolios: Moderate Growth &
Income Portfolio
Year Ended July 31, 2003..................... 670 21 (203) 488
Year Ended July 31, 2002..................... 773 15 (85) 703
SHARE TRANSACTIONS (amounts in thousands):
------------------------------------------------------------------------------------
Class B Shares: Class I Shares:
----------------------------------- ------------------------------------
Total Total
Class B Class I
Issued Reinvested Redeemed Shares Issued Reinvested Redeemed Shares
------ ---------- -------- ------- ------ ---------- -------- -------
Value Fund
Year Ended July 31, 2003..................... 1,665(b) 51 (518) 1,198 10,567(c) 892 (14,458) (2,999)
Year Ended July 31, 2002..................... 659 62 (188) 533 11,533 1,331 (7,697) 5,167
Select Equity Fund
Year Ended July 31, 2003..................... 335 1 (114) 222 3,447 5 (475) 2,977
Year Ended July 31, 2002..................... 374 -- (71) 303 167 2 (31) 138
Enhanced Market Fund
Year Ended July 31, 2003..................... 261 1 (235) 27 11,073 15 (1,893) 9,195
Year Ended July 31, 2002..................... 134 14 (319) (171) 963 15 (1,497) (519)
Large Cap Fund
Year Ended July 31, 2003..................... 294 58 (319) 33 4,431 791 (6,640) (1,418)
Year Ended July 31, 2002..................... 371 78 (352) 97 4,371 1,026 (4,505) 892
Capital Growth Fund
Year Ended July 31, 2003..................... 124 -- (242) (118) 6,892 -- (11,671) (4,779)
Year Ended July 31, 2002..................... 539(e) -- (245) 294 12,204(f) -- (9,367) 2,837
Mid Cap Fund
Year Ended July 31, 2003..................... 56 -- (182) (126) 9,201 11 (1,198) 8,014
Year Ended July 31, 2002..................... 96 -- (279) (183) 3,652 -- (3,862) (210)
Small Cap Fund
Year Ended July 31, 2003..................... 53 -- (58) (5) 12,769 -- (8,161) 4,608
Year Ended July 31, 2002..................... 85 -- (95) (10) 12,942 -- (10,553) 2,389
International Equity Fund
Year Ended July 31, 2003..................... 163 -- (130) 33 29,150 27 (23,678) 5,499
Year Ended July 31, 2002..................... 30 -- (23) 7 42,983 6 (34,647) 8,342
Balanced Fund
Year Ended July 31, 2003..................... 549 45 (371) 223 687 203 (1,663) (773)
Year Ended July 31, 2002..................... 1,071 46 (301) 816 1,270 316 (3,548) (1,962)
Strategic Portfolios: Aggressive Growth
Portfolio
Year Ended July 31, 2003..................... 185 -- (27) 158 472 -- (529) (57)
Year Ended July 31, 2002..................... 74 6 (9) 71 527 131 (1,092) (434)
Strategic Portfolios: Growth Portfolio
Year Ended July 31, 2003..................... 366 1 (67) 300 316 13 (603) (274)
Year Ended July 31, 2002..................... 110 7 (50) 67 280 64 (696) (352)
Strategic Portfolios: Growth & Income Portfolio
Year Ended July 31, 2003..................... 293 2 (55) 240 1,173 100 (2,076) (803)
Year Ended July 31, 2002..................... 71 9 (57) 23 1,053 343 (2,437) (1,041)
Strategic Portfolios: Moderate Growth &
Income Portfolio
Year Ended July 31, 2003..................... 222 3 (26) 199 397 46 (586) (143)
Year Ended July 31, 2002..................... 65 5 (84) (14) 571 92 (666) (3)
------------------
Total net increase
(decrease) from
share transactions
------------------
Value Fund
Year Ended July 31, 2003..................... (804)
Year Ended July 31, 2002..................... 7,777
Select Equity Fund
Year Ended July 31, 2003..................... 3,380
Year Ended July 31, 2002..................... 615
Enhanced Market Fund
Year Ended July 31, 2003..................... 9,486
Year Ended July 31, 2002..................... (793)
Large Cap Fund
Year Ended July 31, 2003..................... 350
Year Ended July 31, 2002..................... 1,550
Capital Growth Fund
Year Ended July 31, 2003..................... (4,231)
Year Ended July 31, 2002..................... 3,396
Mid Cap Fund
Year Ended July 31, 2003..................... 7,883
Year Ended July 31, 2002..................... (556)
Small Cap Fund
Year Ended July 31, 2003..................... 4,707
Year Ended July 31, 2002..................... 2,271
International Equity Fund
Year Ended July 31, 2003..................... 5,571
Year Ended July 31, 2002..................... 8,569
Balanced Fund
Year Ended July 31, 2003..................... (28)
Year Ended July 31, 2002..................... 836
Strategic Portfolios: Aggressive Growth
Portfolio
Year Ended July 31, 2003..................... 488
Year Ended July 31, 2002..................... 572
Strategic Portfolios: Growth Portfolio
Year Ended July 31, 2003..................... 777
Year Ended July 31, 2002..................... 196
Strategic Portfolios: Growth & Income Portfolio
Year Ended July 31, 2003..................... 957
Year Ended July 31, 2002..................... 31
Strategic Portfolios: Moderate Growth &
Income Portfolio
Year Ended July 31, 2003..................... 544
Year Ended July 31, 2002..................... 686
- --------
(a)Shares Issued include 1,563 issued in connection with the AmSouth Equity
Income Fund Merger.
(b)Shares Issued include 1,534 issued in connection with the AmSouth Equity
Income Fund Merger.
(c)Shares Issued include 2,487 issued in connection with the AmSouth Equity
Income Fund Merger.
(d)Shares Issued include 335 issued in connection with the AmSouth Growth Fund
Merger.
(e)Shares Issued include 359 issued in connection with the AmSouth Growth Fund
Merger.
(f)Shares Issued include 442 issued in connection with the AmSouth Growth Fund
Merger.
Continued
110
AMSOUTH FUNDS
Notes to Financial Statements
7. Capital Share Transactions (continued)
----------------------------------------
Class A Shares:
----------------------------------------
Proceeds Cost of Total
from shares Dividends shares Class A
issued reinvested redeemed Shares
----------- ---------- -------- -------
Government Income Fund
Year Ended July 31, 2003. $32,625(a) 672 (20,921) 12,376
Year Ended July 31, 2002. $11,811 268 (9,054) 3,025
Limited Term Bond Fund
Year Ended July 31, 2003. $50,401 907 (35,598) 15,710
Year Ended July 31, 2002. $31,115 590 (19,060) 12,645
Bond Fund
Year Ended July 31, 2003. $41,640 2,337 (28,589) 15,388
Year Ended July 31, 2002. $56,327 1,126 (39,185) 18,268
Municipal Bond Fund
Year Ended July 31, 2003. $ 8,975 361 (4,348) 4,988
Year Ended July 31, 2002. $ 7,654 317 (4,613) 3,358
Florida Tax-Exempt Fund
Year Ended July 31, 2003. $ 4,496 145 (1,595) 3,046
Year Ended July 31, 2002. $ 5,830 108 (5,302) 636
Tennessee Tax-Exempt Fund
Year Ended July 31, 2003. $11,462(d) 47 (5,575) 5,934
Year Ended July 31, 2002. $ 2,149 39 (2,556) (368)
CAPITAL TRANSACTIONS (amounts in thousands):
--------------------------------------------------------------------------------------------------------
Class B Shares: Class I Shares:
--------------------------------------- ------------------------------------------
Proceeds Cost of Total Proceeds Cost of Total
from shares Dividends shares Class B from shares Dividends shares Class I
issued reinvested redeemed Shares issued reinvested redeemed Shares
----------- ---------- -------- ------- ----------- ---------- --------- --------
Government Income Fund
Year Ended July 31, 2003. 8,586 (b) 244 (1,915) 6,915 117,972 (c) 7,062 (129,514) (4,480)
Year Ended July 31, 2002. 3,199 68 (1,390) 1,877 95,621 8,263 (147,390) (43,506)
Limited Term Bond Fund
Year Ended July 31, 2003. 15,766 387 (3,084) 13,069 103,771 1,776 (75,245) 30,302
Year Ended July 31, 2002. 7,823 151 (385) 7,589 69,321 2,152 (77,179) (5,706)
Bond Fund
Year Ended July 31, 2003. 3,069 395 (2,994) 470 172,275 11,759 (168,484) 15,550
Year Ended July 31, 2002. 4,361 274 (2,425) 2,210 190,908 9,856 (238,136) (37,372)
Municipal Bond Fund
Year Ended July 31, 2003. 1,416 57 (794) 679 50,653 726 (69,776) (18,397)
Year Ended July 31, 2002. 2,561 49 (609) 2,001 61,599 424 (78,531) (16,508)
Florida Tax-Exempt Fund
Year Ended July 31, 2003. 2,049 59 (899) 1,209 5,932 14 (9,949) (4,003)
Year Ended July 31, 2002. 1,835 29 (660) 1,204 12,870 32 (16,552) (3,650)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2003. 1,613 (e) 34 (533) 1,114 6,990 4 (16,505) (9,511)
Year Ended July 31, 2002. 594 31 (264) 361 2,920 7 (11,751) (8,824)
---------------------
Total net increase
(decrease) from
capital transactions
--------------------
Government Income Fund
Year Ended July 31, 2003. $ 14,811
Year Ended July 31, 2002. $(38,604)
Limited Term Bond Fund
Year Ended July 31, 2003. $ 59,081
Year Ended July 31, 2002. $ 14,528
Bond Fund
Year Ended July 31, 2003. $ 31,408
Year Ended July 31, 2002. $(16,894)
Municipal Bond Fund
Year Ended July 31, 2003. $(12,730)
Year Ended July 31, 2002. $(11,149)
Florida Tax-Exempt Fund
Year Ended July 31, 2003. $ 252
Year Ended July 31, 2002. $ (1,810)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2003. $ (2,463)
Year Ended July 31, 2002. $ (8,831)
(a)Proceeds from Shares Issued Include $6,985 issued in connection with the
AmSouth Limited Term U.S. Government Fund Merger.
(b)Proceeds from Shares Issued include $5,656 issued in connection with the
AmSouth Limited Term U.S. Government Fund Merger.
(c)Proceeds from Shares Issued include $32,828 issued in connection with the
AmSouth Limited Term U.S. Government Fund Merger.
(d)Proceeds from Shares Issued include $8,770 issued in connection with the
AmSouth Limited Term Tennessee Tax-Exempt Fund Merger.
(e)Proceeds from Shares Issued include $1,001 issued in connection with the
AmSouth Limited Term Tennessee Tax-Exempt Fund Merger.
Continued
111
AMSOUTH FUNDS
Notes to Financial Statements
7. 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 Issued
--------- ---------- ---------- -------- ------- ---------- -------- -------- ---------
Government Income Fund
Year Ended July 31, 2003 3,175 (a) 65 (2,035) 1,205 836 (b) 24 (187) 673 11,455 (c)
Year Ended July 31, 2002 1,158 26 (888) 296 314 7 (138) 183 9,397
Limited Term Bond Fund
Year Ended July 31, 2003 4,681 85 (3,313) 1,453 1,465 36 (286) 1,215 9,638
Year Ended July 31, 2002 2,934 56 (1,798) 1,192 738 14 (36) 716 6,532
Bond Fund
Year Ended July 31, 2003 3,585 203 (2,462) 1,326 265 34 (258) 41 14,844
Year Ended July 31, 2002 5,033 101 (3,513) 1,621 389 25 (216) 198 17,050
Municipal Bond Fund
Year Ended July 31, 2003 854 34 (414) 474 136 5 (76) 65 4,808
Year Ended July 31, 2002 748 31 (454) 325 251 5 (60) 196 6,057
Florida Tax-Exempt Fund
Year Ended July 31, 2003 412 13 (146) 279 187 5 (82) 110 544
Year Ended July 31, 2002 551 10 (501) 60 173 3 (62) 114 1,211
Tennessee Tax-Exempt Fund
Year Ended July 31, 2003 1,099 (d) 4 (531) 572 154 (e) 3 (50) 107 664
Year Ended July 31, 2002 209 4 (255) (42) 58 3 (26) 35 288
Prime Money Market Fund+
Year Ended July 31, 2003 425,086 3,333 (541,125) (112,706) 2,741 10 (3,075) (324) 1,595,328
Year Ended July 31, 2002 832,105 8,937 (854,262) (13,220) 5,186 20 (3,223) 1,983 2,486,495
U.S. Treasury Money
Market Fund+
Year Ended July 31, 2003 198,548 46 (241,151) (42,557) -- -- -- -- 352,826
Year Ended July 31, 2002 184,653 177 (188,921) (4,091) -- -- -- -- 399,964
Treasury Reserve Money
Market Fund+
Year Ended July 31, 2003 167,611 33 (219,473) (51,829) -- -- -- 330,764
Year Ended July 31, 2002 308,525 102 (309,821) (1,194) -- -- -- -- 523,281
Tax-Exempt Money Market
Fund+
Year Ended July 31, 2003 67,924 181 (65,765) 2,340 -- -- -- -- 250,044
Year Ended July 31, 2002 61,744 398 (71,460) (9,318) -- -- -- -- 260,876
Institutional Prime Obligations Money
Market Fund+
Year Ended July 31, 2003 1,137,073 1 (1,151,117) (14,043) 443,865 -- (562,072) (118,207) 815,952
Year Ended July 31, 2002 1,213,441 7 (1,367,574) (154,126) 554,286 -- (513,941) 40,345 555,259
---------------------------------------------------
Class I Shares:***
-------------------------------- ------------------
Total Total net increase
Class I (decrease) from
Reinvested Redeemed Shares share transactions
---------- ---------- -------- ------------------
Government Income Fund
Year Ended July 31, 2003 687 (12,569) (427) 1,451
Year Ended July 31, 2002 816 (14,477) (4,264) (3,785)
Limited Term Bond Fund
Year Ended July 31, 2003 165 (6,990) 2,813 5,481
Year Ended July 31, 2002 203 (7,271) (536) 1,372
Bond Fund
Year Ended July 31, 2003 1,021 (14,518) 1,347 2,714
Year Ended July 31, 2002 883 (21,189) (3,256) (1,437)
Municipal Bond Fund
Year Ended July 31, 2003 69 (6,633) (1,756) (1,217)
Year Ended July 31, 2002 42 (7,688) (1,589) (1,068)
Florida Tax-Exempt Fund
Year Ended July 31, 2003 1 (912) (367) 22
Year Ended July 31, 2002 3 (1,565) (351) (177)
Tennessee Tax-Exempt Fund
Year Ended July 31, 2003 -- (1,574) (910) (231)
Year Ended July 31, 2002 1 (1,158) (869) (876)
Prime Money Market Fund+
Year Ended July 31, 2003 616 (2,144,526) (548,582) (661,612)
Year Ended July 31, 2002 1,398 (2,463,080) 24,813 13,576
U.S. Treasury Money
Market Fund+
Year Ended July 31, 2003 261 (414,017) (60,930) (103,487)
Year Ended July 31, 2002 682 (429,720) (29,074) (33,165)
Treasury Reserve Money
Market Fund+
Year Ended July 31, 2003 97 (507,589) (176,728) (228,557)
Year Ended July 31, 2002 304 (571,920) (48,335) (49,529)
Tax-Exempt Money Market
Fund+
Year Ended July 31, 2003 39 (295,803) (45,720) (43,380)
Year Ended July 31, 2002 23 (237,662) 23,237 13,919
Institutional Prime Obligations Money
Market Fund+
Year Ended July 31, 2003 386 (890.651) (74,313) (206,563)
Year Ended July 31, 2002 564 (527,617) 28,206 (85,575)
- --------
+ Capital Transactions are done 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 681 issued in connection with the AmSouth Limited Term
U.S. Government Fund Merger.
(b)Shares Issued include 552 issued in connection with the AmSouth Limited Term
U.S. Government Fund Merger.
(c)Shares Issued include 3,202 issued in connection with the AmSouth Limited
Term U.S. Government Fund Merger.
(d)Shares Issued include 842 issued in connection with the AmSouth Limited Term
Tennessee Tax-Exempt Fund Merger.
(e)Shares Issued include 96 issued in connection with the AmSouth Limited Term
Tennessee Tax-Exempt Fund Merger.
Continued
112
AMSOUTH FUNDS
Notes to Financial Statements
8. Eligible Distributions:
The AmSouth Funds designate the following eligible distributions for the
dividends received deductions for corporations for the year ended July 31, 2003:
Percentage
----------
Value Fund............................................... 100.00%
Select Equity Fund....................................... 100.00%
Enhanced Market Fund..................................... 100.00%
Large Cap Fund........................................... 100.00%
Mid Cap Fund............................................. 100.00%
Balanced Fund............................................ 43.61%
Stategic Portfolios: Growth Portfolio.................... 33.83%
Stategic Portfolios: Growth and Income Portfolio......... 5.70%
Stategic Portfolios: Moderate Growth and Income Portfolio 12.51%
9. Exempt-Interest Income Designations:
The AmSouth Funds designate the following exempt-interest dividends for the
taxable year ended July 31, 2003 (amounts in thousands):
Tax-Exempt
Distribution
------------
Municipal Bond Fund......... $12,498
Florida Tax-Exempt Fund..... 2,170
Tennessee Tax-Exempt Fund... 1,524
Tax-Exempt Money Market Fund 1,151
10. Federal Income Tax Information:
The accompanying table details distributions from long-term capital gains
for the following funds for the year ended July 31, 2003 (amounts in thousands):
Long-Term Capital
Gains
-----------------
Value Fund................................................ $21,984
Select Equity Fund........................................ 3
Large Cap Fund............................................ 19,502
Balanced Fund............................................. 2,170
Strategic Portfolios: Moderate Growth and Income Portfolio 97
Government Income Fund.................................... 4,336
Bond Fund................................................. 10,151
Municipal Bond Fund....................................... 1,374
Florida Tax-Exempt Fund................................... 6
Continued
113
AMSOUTH FUNDS
Notes to Financial Statements
10. Federal Income Tax Information (Continued)
As of July 31, 2003 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............................................... $ 1,059 2006
284 2007
4,005 2008
25,113 2009
4,926 2010
6,939 2011
Enhanced Market Fund..................................... 392 2010
5,604 2011
Large Cap Fund........................................... 4,493 2011
Capital Growth Fund...................................... 1,283 2009
15,143 2009
42,600 2010
55,985 2011
Mid Cap Fund............................................. 315 2007
3,640 2008
3,898 2009
18,622 2010
2,982 2011
Small Cap Fund........................................... 10,492 2009
35,914 2010
29,777 2011
International Equity Fund................................ 37 2009
13,504 2010
24,219 2011
Strategic Portfolios Aggressive Growth Portfolio......... 59 2010
1,912 2011
Strategic Portfolios Growth Portfolio.................... 2,498 2011
Strategic Portfolios Growth and Income Portfolio......... 6,515 2011
Strategic Portfolios Moderate Growth and Income Portfolio 2,544 2011
Limited Term Bond Fund................................... 4 2004
304 2005
117 2006
338 2007
50 2008
518 2009
38 2010
Prime Money Market Fund.................................. 2 2007
Tax-Exempt Money Market Fund............................. 117 2006
92 2007
75 2009
15 2011
Continued
114
AMSOUTH FUNDS
Notes to Financial Statements
10. Federal Income Tax Information (Continued)
The tax character of distributions paid during the fiscal year ended July
31, 2003 was as follows (amounts in thousands):
Distributions paid from
------------------------
Net Net Total Tax Tax Return Total
Investment Long Term Taxable Exempt of Distributions
Income Capital Gains Distributions Distributions Capital Paid
---------- ------------- ------------- ------------- ---------- -------------
Value Fund....................................... $ 6,394 $21,984 $28,378 -- -- $28,378
Select Equity Fund............................... 153 3 156 -- -- 156
Enhanced Market Fund............................. 569 -- 569 -- -- 569
Large Cap........................................ 841 19,503 20,344 -- 91 20,435
Capital Growth................................... 6 -- -- -- 6
Mid Cap Equity................................... 156 -- 156 -- 156
Small Cap Fund................................... -- -- -- -- -- --
International Equity Fund........................ 428 -- 428 -- -- 428
Balanced Fund.................................... 3,525 1,996 5,521 -- -- 5,521
Strategic Portfolios: Aggressive Growth Portfolio 3 -- -- -- -- 3
Strategic Portfolios: Growth Portfolio........... 177 -- 177 -- -- 177
Strategic Portfolios: Growth and Income Portfolio 1,195 -- 1,195 -- -- 1,195
Strategic Portfolios: Moderate Growth and Income
Portfolio...................................... 511 97 608 -- -- 608
Limited Term Bond Fund........................... 8,085 -- 8,085 -- -- 8,085
Government Income Fund........................... 11,880 3,843 15,723 -- -- 15,723
Bond Fund........................................ 30,195 8,620 38,815 -- -- 38,815
Municipal Bond Fund.............................. 16 1,175 1,191 12,498 -- 13,689
Florida Tax-Exempt Fund.......................... -- 6 6 2,170 -- 2,176
Tennessee Tax-Exempt Fund........................ -- -- -- 1,524 -- 1,524
Prime Money Market Fund.......................... 6,176 -- 6,176 -- -- 6,176
U.S. Treasury Money Market Fund.................. 1,122 -- 1,122 -- -- 1,122
Treasury Reserve Money Market Fund............... 1,197 -- 1,197 -- -- 1,197
Tax-Exempt Money Market Fund..................... 49 -- 49 1,054 -- 1,103
Institutional Prime Obligations Money Market
Fund........................................... 5,274 -- 5,274 -- -- 5,274
Continued
115
AMSOUTH FUNDS
Notes to Financial Statements
10. Federal Income Tax Information (Continued)
As of July 31, 2003 the components of accumulated earnings/(deficit) on a
tax basis was as follows (The differences between book-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 Accumulated
Undistributed Undistributed Long-Term Capital Unrealized
Tax-Exempt Ordinary Capital Accumulated Distributions and Other Appreciation/
Income Income Gains Earnings Payable Losses Depreciation
------------- ------------- ------------- ----------- ------------- ----------- -------------
Value Fund...................... $ -- $ 337 $ -- $ 337 $ -- $(145,902) $ 79,632
Select Equity Fund.............. -- -- 333 333 -- -- 3,556
Enhanced Market Fund............ -- 35 -- 35 -- (6,232) 1,446
Large Cap....................... -- -- -- -- -- (4,493) 137,257
Capital Growth.................. -- -- -- -- -- (131,987) 22,323
Mid Cap Equity.................. -- -- -- -- -- (29,490) 14,482
Small Cap Fund.................. -- -- -- -- -- (85,568) 28,074
International Equity Fund....... -- 2,663 -- 2,663 -- (37,857) 10,646
Balanced Fund................... -- 100 -- 100 -- (3,870) 20,737
Strategic Portfolios: Aggressive
Growth Portfolio............... -- -- -- -- -- (6,545) (654)
Strategic Portfolios: Growth
Portfolio...................... -- 23 -- 23 -- (3,631) (157)
Strategic Portfolios: Growth and
Income Portfolio............... -- 117 -- 117 -- (9,169) (437)
Strategic Portfolios: Moderate
Growth and Income
Portfolio...................... -- 53 -- 53 -- (2,544) 1,033
Limited Term Bond Fund.......... -- 193 -- 193 (1,369) 4,984
Government Income Fund.......... -- 361 313 674 -- -- 9,558
Bond Fund....................... -- 676 5,008 5,684 -- -- 29,848
Municipal Bond Fund............. 596 -- 325 921 -- -- 21,256
Florida Tax-Exempt Fund......... 47 -- 26 73 -- -- 2,737
Tennessee Tax-Exempt Fund....... 82 -- 101 183 -- -- 1,703
Prime Money Market Fund......... -- 203 -- 203 (203) (2) --
U.S. Treasury Money Market
Fund........................... -- 34 -- 34 (27) -- --
Treasury Reserve Money Market
Fund........................... -- 25 -- 25 (21) -- --
Tax-Exempt Money Market
Fund........................... 26 -- -- 26 (26) (299) --
Institutional Prime Obligations
Money Market Fund.............. -- 298 -- 298 (267) -- --
Total
Accumulated
Earnings/
(Deficit)
-----------
Value Fund...................... $ (65,933)
Select Equity Fund.............. 3,889
Enhanced Market Fund............ (4,751)
Large Cap....................... 132,764
Capital Growth.................. (109,664)
Mid Cap Equity.................. (15,008)
Small Cap Fund.................. (57,494)
International Equity Fund....... (24,548)
Balanced Fund................... 16,967
Strategic Portfolios: Aggressive
Growth Portfolio............... (7,199)
Strategic Portfolios: Growth
Portfolio...................... (3,765)
Strategic Portfolios: Growth and
Income Portfolio............... (9,489)
Strategic Portfolios: Moderate
Growth and Income
Portfolio...................... (1,458)
Limited Term Bond Fund.......... 3,808
Government Income Fund.......... 10,232
Bond Fund....................... 35,532
Municipal Bond Fund............. 22,177
Florida Tax-Exempt Fund......... 2,810
Tennessee Tax-Exempt Fund....... 1,886
Prime Money Market Fund......... (2)
U.S. Treasury Money Market
Fund........................... 7
Treasury Reserve Money Market
Fund........................... 4
Tax-Exempt Money Market
Fund........................... (299)
Institutional Prime Obligations
Money Market Fund.............. 31
Continued
116
AMSOUTH FUNDS
Notes to Financial Statements
10. Federal Income Tax Information (Continued)
Under current tax law, capital losses realized after October 31, within the
Fund's fiscal year may be deferred and treated as occurring 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, 2004 (amounts in
thousands):
Value Fund................................................ $103,576
Enhanced Market Fund...................................... 236
Capital Growth Fund....................................... 16,975
Mid Cap Fund.............................................. 33
Small Cap Fund............................................ 9,385
International Equity Fund................................. 97
Balanced Fund............................................. 3,870
Strategic Portfolios: Aggressive Growth Portfolio......... 4,673
Strategic Portfolios: Growth Portfolio.................... 1,132
Strategic Portfolios: Moderate Growth And Income Portfolio 2,655
For the Fiscal Year Ended July 31, 2003, dividends paid by the AmSouth Funds
may be subject to a maximum tax rate of 15% as provided for by the Jobs and
Growth Tax Relief Act of 2003. The funds designate the maximum amount allowable
as taxed at a rate of 15%. Completed information will be reported in
conjunction with the 2003 Form 1099-Div. (amounts in thousands):
Qualified
Dividends Paid
- --------------
Value Fund................................................ $3,760
Select Equity Fund........................................ 75
Enhanced Market Fund...................................... 434
Large Cap Fund............................................ 578
Mid Cap Fund.............................................. 121
Balanced Fund............................................. 845
Strategic Portfolios: Growth Portfolio.................... 43
Strategic Portfolios: Growth and Income Portfolio......... 119
Strategic Portfolios: Moderate Growth and Income Portfolio 36
Continued
117
AMSOUTH FUNDS
Financial Highlights
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Realized
Net Asset Net and Unrealized Net Realized Net Asset
Value, Investment Gains (Losses) Total from Net Gains from Value,
Beginning Income from Investments Investment Investment Investment Total End
of Period (Loss) and Futures Activities Income Transactions Dividends of Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
VALUE FUND
Year Ended July 31, 2003...... $12.76 0.14 0.81 0.95 (0.13) (0.52) (0.65) $13.06
Year Ended July 31, 2002...... $20.38 0.09 (6.01) (5.92) (0.09) (1.61) (1.70) $12.76
Year Ended July 31, 2001+..... $19.54 0.11 3.64 3.75 (0.14) (2.77) (2.91) $20.38
Year Ended July 31, 2000...... $25.25 0.23 (2.21) (1.98) (0.23) (3.50) (3.73) $19.54
Year Ended July 31, 1999...... $24.60 0.20 3.11 3.31 (0.19) (2.47) (2.66) $25.25
SELECT EQUITY FUND
Year Ended July 31, 2003...... $10.98 0.05 0.91 0.96 (0.05) -- (0.05) $11.89
Year Ended July 31, 2002...... $11.23 0.02 (0.25) (0.23) (0.02) -- (0.02) $10.98
Year Ended July 31, 2001+..... $ 8.72 0.01 2.51 2.52 (0.01) -- (0.01) $11.23
Year Ended July 31, 2000+..... $11.88 0.07 (2.35) (2.28) (0.07) (0.81) (0.88) $ 8.72
Period Ended July 31, 1999(a). $10.00 0.04 1.91 1.95 (0.06) (0.01) (0.07) $11.88
ENHANCED MARKET FUND
Year Ended July 31, 2003...... $ 9.16 0.08 0.70 0.78 (0.07) -- (0.07) $ 9.87
Year Ended July 31, 2002...... $12.27 0.04 (2.96) (2.92) (0.03) (0.16) (0.19) $ 9.16
Year Ended July 31, 2001+..... $14.64 0.03 (2.15) (2.12) (0.03) (0.22) (0.25) $12.27
Year Ended July 31, 2000...... $13.86 0.07 1.23 1.30 (0.07) (0.45) (0.52) $14.64
Period Ended July 31, 1999(a). $10.00 0.09 3.89 3.98 (0.09) (0.03) (0.12) $13.86
LARGE CAP FUND
Year Ended July 31, 2003...... $15.45 0.01 1.53 1.54 (0.02) (0.63) (0.65) $16.34
Year Ended July 31, 2002...... $21.22 (0.01) (4.57) (4.58) -- (1.19) (1.19) $15.45
Year Ended July 31, 2001+..... $28.14 (0.04) (2.82) (2.86) -- (4.06) (4.06) $21.22
Period Ended July 31, 2000(b). $28.02 (0.01) 0.14 0.13 (0.01) -- (0.01) $28.14
Year Ended December 31,
1999+........................ $27.55 0.03 5.07 5.10 (0.03) (4.60) (4.63) $28.02
Period Ended December 31,
1998(c)...................... $23.01 0.05 5.79 5.84 (0.05) (1.25) (1.30) $27.55
Year Ended February 28, 1998.. $16.68 0.11 6.48 6.59 (0.11) (0.15) (0.26) $23.01
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, 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
Year Ended July 31, 2000...... (8.19)% 1.07% 1.35% 1.35% 17% $ 45,255
Year Ended July 31, 1999...... 14.92% 0.82% 1.33% 1.34% 18% $ 70,740
SELECT EQUITY FUND
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
Year Ended July 31, 2000+..... (19.86)% 0.67% 1.44% 1.96% 25% $ 2,512
Period Ended July 31, 1999(a). 19.44%^ 0.43%^^ 1.13%^^ 1.81%^^ 10% $ 10,258
ENHANCED MARKET FUND
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
Year Ended July 31, 2000...... 9.46% 0.48% 1.01% 1.22% 30% $ 20,555
Period Ended July 31, 1999(a). 39.93%^ 0.79%^^ 0.88%^^ 1.52%^^ 36% $ 14,365
LARGE CAP FUND
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
Period Ended July 31, 2000(b). 0.45%^ (0.07)%^^ 1.14%^^ 1.37%^^ 10% $ 81,099
Year Ended December 31,
1999+........................ 18.85% 0.12% 1.04% 1.39% 15% $ 79,211
Period Ended December 31,
1998(c)...................... 25.83%^ 0.21%^^ 1.03%^^ 1.03%^^ 3% $ 57,772
Year Ended February 28, 1998.. 39.74% 0.54% 0.99% (d) 6% $715,631
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(b)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(c)For the period from March 1, 1998 through December 31, 1998. In conjunction
with the reorganization of the ISG Funds, the Fund changed its fiscal year
end to December 31.
(d)There were no fee reductions in this period.
See notes to financial statements.
118
AMSOUTH FUNDS
Financial Highlights
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
----------------------------------- --------------------------------
Net Realized
and Unrealized
Gains (Losses)
from
Net Asset Net Investments, Net Realized
Value, Investment Futures, and Total from Net Gains from
Beginning Income Foreign Investment Investment Investment Total Redemption
of Period (Loss) Currencies Activities Income Transactions Dividends Fees
--------- ---------- -------------- ---------- ---------- ------------ --------- ----------
CAPITAL GROWTH FUND
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) -- (1.16) (1.16) --
Period Ended July 31, 2000(a).. $14.37 (0.04) 0.64 0.60 -- -- -- --
Year Ended December 31, 1999+.. $14.20 (0.04) 2.97 2.93 -- (2.76) (2.76) --
Year Ended December 31, 1998... $12.80 (0.01) 3.89 3.88 -- (2.48) (2.48) --
MID CAP FUND
Year Ended July 31, 2003....... $ 9.39 0.01 1.03 1.04 (0.01) -- (0.01) --
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) -- -- -- --
Period Ended July 31, 2000(a)+. $17.33 (0.13) (0.53) (0.66) -- -- -- --
Period Ended December 31,
1999(b)+...................... $10.00 (0.14) 7.47 7.33 -- -- -- --
SMALL CAP FUND
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) -- (1.21) (1.21) --
Year Ended July 31, 2000....... $ 8.40 (0.08) 4.20 4.12 -- -- -- --
Year Ended July 31, 1999....... $ 9.14 (0.10) (0.64) (0.74) -- -- -- --
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2003....... $ 7.81 0.01 0.87 0.88 (0.01) -- (0.01) 0.01
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) (0.03) (0.36) (0.39) --
Period Ended July 31, 2000(a)+. $13.27 0.05 (0.96) (0.91) -- -- -- --
Year Ended December 31, 1999... $10.58 0.02 2.81 2.83 (0.14) -- (0.14) --
Period Ended December 31,
1998(c)....................... $10.46 0.03 0.12 0.15 (0.03) -- (0.03) --
Period Ended February 28,
1998(d)....................... $10.00 (0.02) 0.49 0.47 (0.01) -- (0.01) --
Ratios (to average net assets)/Supplemental Data
-----------------------------------------------------------
Total
Net Asset Return Expenses Net Assets,
Value, (Excluding Net (before Portfolio End of
End Sales Investment Net Reductions/ Turnover Period
of Period Charge) Income Expenses Reimbursements) Rate* (000's)
--------- ---------- ---------- -------- --------------- --------- -----------
CAPITAL GROWTH FUND
Year Ended July 31, 2003....... $ 8.75 9.92% (0.47)% 1.31% 1.38% 151% $23,915
Year Ended July 31, 2002....... $ 7.96 (26.70)% (0.76)% 1.31% 1.37% 115% $16,457
Year Ended July 31, 2001+...... $10.86 (21.27)% (0.67)% 1.30% 1.36% 100% $19,574
Period Ended July 31, 2000(a).. $14.97 4.18%^ (0.49)%^^ 1.32%^^ 1.37%^^ 91% $14,137
Year Ended December 31, 1999+.. $14.37 21.85% (0.33)% 1.32% 1.33% 178% $10,310
Year Ended December 31, 1998... $14.20 32.05% (0.19)% 1.28% 1.29% 152% $ 4,631
MID CAP FUND
Year Ended July 31, 2003....... $10.42 11.08% 0.08% 1.15% 1.65% 59% $ 9,085
Year Ended July 31, 2002....... $ 9.39 (22.14)% (1.31)% 1.66% 1.83% 221% $ 8,234
Year Ended July 31, 2001+...... $12.06 (27.65)% (1.17)% 1.57% 1.65% 120% $12,546
Period Ended July 31, 2000(a)+. $16.67 (3.81)%^ (1.27)%^^ 1.62%^^ 1.65%^^ 39% $11,536
Period Ended December 31,
1999(b)+...................... $17.33 73.30%^ (1.62)%^^ 2.28%^^ 2.29%^^ 20% $ 2,357
SMALL CAP FUND
Year Ended July 31, 2003....... $ 7.22 1.26% (1.25)% 1.60% 1.78% 221% $ 5,929
Year Ended July 31, 2002....... $ 7.13 (29.55)% (1.25)% 1.61% 1.77% 227% $ 5,114
Year Ended July 31, 2001+...... $10.12 (10.33)% (1.22)% 1.61% 1.77% 220% $ 8,346
Year Ended July 31, 2000....... $12.52 49.05% (1.11)% 1.53% 1.85% 318% $ 8,408
Year Ended July 31, 1999....... $ 8.40 (8.10)% (1.07)% 1.66% 2.68% 208% $ 1,073
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2003....... $ 8.69 11.35% 1.25% 1.36% 1.86% 18% $ 4,711
Year Ended July 31, 2002....... $ 7.81 (17.70)% 0.35% 1.60% 1.89% 160% $ 3,932
Year Ended July 31, 2001+...... $ 9.49 (20.62)% 0.52% 1.62% 1.89% 45% $ 2,685
Period Ended July 31, 2000(a)+. $12.36 (6.78)%^ 0.69%^^ 1.69%^^ 2.01%^^ 32% $ 1,799
Year Ended December 31, 1999... $13.27 26.77% 0.26% 1.59% 2.12% 40% $ 1,033
Period Ended December 31,
1998(c)....................... $10.58 1.42%^ 0.71%^^ 1.81%^^ 2.16%^^ 62% $ 149
Period Ended February 28,
1998(d)....................... $10.46 4.71%^ (0.48)%^^ 1.77%^^ 2.27%^^ 21% $26,533
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from May 4, 1999 (commencement of operations) through
December 31, 1999.
(c)For the period from March 1, 1998 through December 31, 1998. In conjunction
with the reorganization of the ISG Funds, the Fund changed its fiscal year
end to December 31.
(d)For the period from August 15, 1997 (commencement of operations) through
February 28, 1998.
See notes to financial statements.
119
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 Net Asset
Value, Investment and Unrealized Total from Net Gains from Value,
Beginning Income Gains (Losses) Investment Investment Investment Total End
of Period (Loss) from Investments* Activities Income Transactions Dividends of Period
--------- ---------- ----------------- ---------- ---------- ------------ --------- ---------
BALANCED FUND
Year Ended July 31, 2003..... $10.89 0.22 0.66 0.88 (0.26) (0.14) (0.40) $11.37
Year Ended July 31, 2002..... $12.46 0.30 (1.20) (0.90) (0.31) (0.36) (0.67) $10.89
Year Ended July 31, 2001+.... $12.48 0.36 1.28 1.64 (0.39) (1.27) (1.66) $12.46
Year Ended July 31, 2000..... $14.93 0.44 (0.64) (0.20) (0.47) (1.78) (2.25) $12.48
Year Ended July 31, 1999..... $15.19 0.41 0.93 1.34 (0.40) (1.20) (1.60) $14.93
STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO
Year Ended July 31, 2003..... $ 7.04 -- 0.69 0.69 -- -- -- $ 7.73
Year Ended July 31, 2002..... $ 9.91 (0.02) (2.21) (2.23) -- (0.64) (0.64) $ 7.04
Year Ended July 31, 2001+.... $11.53 0.08 (0.39) (0.31) (0.15) (1.16) (1.31) $ 9.91
Period Ended July 31, 2000(a) $11.54 0.02 (0.01) 0.01 (0.02) -- (0.02) $11.53
Period Ended December 31,
1999(b).................... $10.00 0.09 1.60 1.69 (0.11) (0.04) (0.15) $11.54
STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO
Year Ended July 31, 2003..... $ 7.59 0.07 0.62 0.69 (0.07) -- (0.07) $ 8.21
Year Ended July 31, 2002..... $ 9.38 0.08 (1.48) (1.40) (0.09) (0.30) (0.39) $ 7.59
Year Ended July 31, 2001+.... $10.47 0.23 (0.42) (0.19) (0.23) (0.67) (0.90) $ 9.38
Period Ended July 31, 2000(a) $10.58 0.07 (0.11) (0.04) (0.07) -- (0.07) $10.47
Period Ended December 31,
1999(c).................... $ 9.93 0.14 0.73 0.87 (0.14) (0.08) (0.22) $10.58
STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO
Year Ended July 31, 2003..... $ 8.33 0.12 0.56 0.68 (0.13) -- (0.13) $ 8.88
Year Ended July 31, 2002..... $ 9.76 0.18 (1.14) (0.96) (0.19) (0.28) (0.47) $ 8.33
Year Ended July 31, 2001+.... $10.54 0.24 (0.07) 0.17 (0.32) (0.63) (0.95) $ 9.76
Period Ended July 31, 2000(a) $10.48 0.14 0.04 0.18 (0.12) -- (0.12) $10.54
Period Ended December 31,
1999(d).................... $10.10 0.11 0.41 0.52 (0.11) (0.03) (0.14) $10.48
STRATEGIC
PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO
Year Ended July 31, 2003..... $ 8.58 0.16 0.50 0.66 (0.17) (0.03) (0.20) $ 9.04
Year Ended July 31, 2002..... $ 9.74 0.21 (0.94) (0.73) (0.23) (0.20) (0.43) $ 8.58
Year Ended July 31, 2001+.... $10.06 0.32 0.15 0.47 (0.34) (0.45) (0.79) $ 9.74
Period Ended July 31, 2000(a) $ 9.96 0.14 0.10 0.24 (0.14) -- (0.14) $10.06
Period Ended December 31,
1999(e).................... $ 9.86 0.17 0.16 0.33 (0.17) (0.06) (0.23) $ 9.96
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)
------------- ---------- -------- ---------------- --------- -------------
BALANCED FUND
Year Ended July 31, 2003..... 8.34% 2.03% 1.34% 1.42% 86% $78,679
Year Ended July 31, 2002..... (7.55)% 2.57% 1.34% 1.41% 34% $69,674
Year Ended July 31, 2001+.... 13.93% 2.90% 1.31% 1.38% 14% $54,978
Year Ended July 31, 2000..... (1.05)% 3.28% 1.35% 1.37% 16% $21,951
Year Ended July 31, 1999..... 9.40% 2.67% 1.34% 1.35% 23% $43,223
STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO
Year Ended July 31, 2003..... 9.81% (0.02)% 0.66% 1.09% 100% $11,310
Year Ended July 31, 2002..... (23.76)% (0.31)% 0.71% 1.12% 50% $ 7,565
Year Ended July 31, 2001+.... (3.42)% 0.78% 0.79% 1.20% 36% $ 1,393
Period Ended July 31, 2000(a) 0.06%^ 0.26%^^ 0.86%^^ 1.24%^^ 22% $ 476
Period Ended December 31,
1999(b).................... 16.92%^ 1.65%^^ 0.96%^^ 6.10%^^ 95% $ 450
STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO
Year Ended July 31, 2003..... 9.18% 0.94% 0.61% 1.06% 128% $10,978
Year Ended July 31, 2002..... (15.49)% 0.96% 0.71% 1.14% 63% $ 4,448
Year Ended July 31, 2001+.... (2.04)% 2.31% 0.78% 1.22% 38% $ 981
Period Ended July 31, 2000(a) (0.43)%^ 1.27%^^ 0.86%^^ 1.25%^^ 97% $ 763
Period Ended December 31,
1999(c).................... 8.85%^ 2.44%^^ 0.94%^^ 9.41%^^ 76% $ 164
STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO
Year Ended July 31, 2003..... 8.30% 1.51% 0.62% 0.86% 135% $28,745
Year Ended July 31, 2002..... (10.17)% 2.04% 0.60% 0.82% 69% $14,312
Year Ended July 31, 2001+.... 1.61% 2.44% 0.63% 0.87% 51% $ 6,535
Period Ended July 31, 2000(a) 1.69%^ 2.15%^^ 0.72%^^ 0.88%^^ 21% $ 271
Period Ended December 31,
1999(d).................... 5.21%^ 2.44%^^ 0.95%^^ 2.27%^^ 57% $ 535
STRATEGIC
PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO
Year Ended July 31, 2003..... 7.85% 1.87% 0.64% 1.07% 136% $10,988
Year Ended July 31, 2002..... (7.80)% 2.48% 0.65% 1.07% 65% $ 6,236
Year Ended July 31, 2001+.... 4.91% 3.26% 0.77% 1.20% 62% $ 231
Period Ended July 31, 2000(a) 2.43%^ 2.85%^^ 0.91%^^ 1.26%^^ 21% $ 48
Period Ended December 31,
1999(e).................... 3.37%^ 3.32%^^ 0.93%^^ 9.78%^^ 124% $ 172
+ Net investment income (loss) is based on average shares outstanding during
the period.
* 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from January 13, 1999 (commencement of operations) through
December 31, 1999.
(c)For the period from February 11, 1999 (commencement of operations) through
December 31, 1999.
(d)For the period from March 8, 1999 (commencement of operations) through
December 31, 1999.
(e)For the period from February 9, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements.
120
AMSOUTH FUNDS
Financial Highlights
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------ --------------------------------
Net Realized
Net Asset and Unrealized Net Realized Net Asset
Value, Net Gains (Losses) Total from Net Gains from Value,
Beginning Investment from Investment Investment Investment Total End of
of Period Income Investments Activities Income Transactions Dividends Period
--------- ---------- -------------- ---------- ---------- ------------ --------- ---------
GOVERNMENT INCOME FUND
Year Ended July 31, 2003.. $10.26 0.41 (0.05) 0.36 (0.42) (0.15) (0.57) $10.05
Year Ended July 31, 2002.. $10.10 0.48 0.20 0.68 (0.52) -- (0.52) $10.26
Year Ended July 31, 2001+. $ 9.60 0.55 0.50 1.05 (0.55) -- (0.55) $10.10
Year Ended July 31, 2000.. $ 9.62 0.56 (0.04) 0.52 (0.54) -- (0.54) $ 9.60
Year Ended July 31, 1999.. $ 9.88 0.54 (0.28) 0.26 (0.52) -- (0.52) $ 9.62
LIMITED TERM BOND FUND
Year Ended July 31, 2003.. $10.70 0.36 0.01 0.37 (0.42) -- (0.42) $10.65
Year Ended July 31, 2002.. $10.55 0.48 0.18 0.66 (0.51) -- (0.51) $10.70
Year Ended July 31, 2001+. $10.13 0.57 0.43 1.00 (0.58) -- (0.58) $10.55
Year Ended July 31, 2000.. $10.29 0.59 (0.13) 0.46 (0.62) -- (0.62) $10.13
Year Ended July 31, 1999.. $10.43 0.57 (0.15) 0.42 (0.56) -- (0.56) $10.29
BOND FUND
Year Ended July 31, 2003.. $11.43 0.46 0.11 0.57 (0.52) (0.15) (0.67) $11.33
Year Ended July 31, 2002.. $11.13 0.53 0.36 0.89 (0.56) (0.03) (0.59) $11.43
Year Ended July 31, 2001+. $10.52 0.58 0.62 1.20 (0.59) -- (0.59) $11.13
Year Ended July 31, 2000.. $10.63 0.58 (0.06) 0.52 (0.61) (0.02) (0.63) $10.52
Year Ended July 31, 1999.. $11.05 0.61 (0.32) 0.29 (0.58) (0.13) (0.71) $10.63
Ratios (to average net assets)/Supplemental Data
------------------------------------------------------------
Total Return
(Excluding Net Expenses (before Portfolio Net Assets,
Sales Investment Net Reductions/ Turnover End of Period
Charge) Income Expenses Reimbursements) Rate* (000's)
------------ ---------- -------- ---------------- --------- -------------
GOVERNMENT INCOME FUND
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
Year Ended July 31, 2000.. 5.55% 5.77% 0.85% 1.30% 42% $ 5,879
Year Ended July 31, 1999.. 2.62% 5.35% 0.70% 1.90% 27% $ 5,436
LIMITED TERM BOND FUND
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
Year Ended July 31, 2000.. 4.59% 5.60% 0.96% 1.24% 34% $ 7,913
Year Ended July 31, 1999.. 4.01% 5.49% 0.81% 1.23% 39% $ 2,716
BOND FUND
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
Year Ended July 31, 2000.. 5.10% 5.54% 0.91% 1.21% 27% $ 9,500
Year Ended July 31, 1999.. 2.58% 5.46% 0.81% 1.20% 18% $ 7,070
+ 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.
See notes to financial statements.
121
AMSOUTH FUNDS
Financial Highlights
A SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Asset Net Realized Net Realized Net Asset
Value, Net and Unrealized Total from Net Gains from Value,
Beginning Investment Gains (Losses) Investment Investment Investment Total End of
of Period Income from Investments Activities Income Transactions Dividends Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
MUNICIPAL BOND FUND
Year Ended July 31, 2003.. $10.38 0.35 (0.05) 0.30 (0.33) (0.03) (0.36) $10.32
Year Ended July 31, 2002.. $10.18 0.37 0.23 0.60 (0.39) (0.01) (0.40) $10.38
Year Ended July 31, 2001+. $ 9.76 0.39 0.41 0.80 (0.38) -- (0.38) $10.18
Year Ended July 31, 2000.. $ 9.87 0.40 (0.06) 0.34 (0.40) (0.05) (0.45) $ 9.76
Year Ended July 31, 1999.. $10.13 0.41 (0.17) 0.24 (0.39) (0.11) (0.50) $ 9.87
FLORIDA TAX-EXEMPT
FUND
Year Ended July 31, 2003.. $10.79 0.36 (0.08) 0.28 (0.37) -- (0.37) $10.70
Year Ended July 31, 2002.. $10.51 0.39 0.27 0.66 (0.38) -- (0.38) $10.79
Year Ended July 31, 2001+. $10.16 0.40 0.35 0.75 (0.40) -- (0.40) $10.51
Year Ended July 31, 2000.. $10.22 0.44 (0.06) 0.38 (0.41) (0.03) (0.44) $10.16
Year Ended July 31, 1999.. $10.45 0.41 (0.18) 0.23 (0.40) (0.06) (0.46) $10.22
TENNESSEE TAX-EXEMPT
FUND
Year Ended July 31, 2003.. $10.37 0.29 (0.05) 0.24 (0.28) -- (0.28) $10.33
Year Ended July 31, 2002.. $10.10 0.31 0.27 0.58 (0.31) -- (0.31) $10.37
Year Ended July 31, 2001+. $ 9.74 0.36 0.36 0.72 (0.36) -- (0.36) $10.10
Period Ended July 31,
2000(a).................. $ 9.55 0.21 0.18 0.39 (0.20) -- (0.20) $ 9.74
Year Ended December 31,
1999..................... $10.19 0.33 (0.64) (0.31) (0.33) -- (0.33) $ 9.55
Year Ended December 31,
1998..................... $10.18 0.35 0.08 0.43 (0.35) (0.07) (0.42) $10.19
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)
------------- ---------- -------- ---------------- --------- -------------
MUNICIPAL BOND FUND
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
Year Ended July 31, 2000.. 3.62% 4.12% 0.82% 1.20% 9% $ 6,516
Year Ended July 31, 1999.. 2.31% 4.01% 0.71% 1.20% 21% $ 2,694
FLORIDA TAX-EXEMPT
FUND
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
Year Ended July 31, 2000.. 3.99% 4.10% 0.74% 1.30% 11% $ 2,655
Year Ended July 31, 1999.. 2.06% 4.00% 0.59% 1.26% 34% $12,195
TENNESSEE TAX-EXEMPT
FUND
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
Period Ended July 31,
2000(a).................. 4.15%^ 3.78%^^ 1.13%^^ 1.27%^^ 23% $ 2,919
Year Ended December 31,
1999..................... (3.07)% 3.34% 1.25% 1.26% 64% $ 3,324
Year Ended December 31,
1998..................... 4.25% 3.37% 1.20% 1.20% 155% $ 2,919
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
See notes to financial statements.
122
AMSOUTH FUNDS
Financial Highlights
A SHARES+
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------
Less
Net Asset Net Realized Dividends Net Asset
Value, Net and Unrealized Total from from Net Value, Total Return
Beginning Investment Gains (Losses) Investment Investment End (Excluding
of Period Income from Investments Activities Income of Period Sales Charge)
--------- ---------- ---------------- ---------- ---------- --------- -------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003...... $1.000 0.006 -- 0.006 (0.006) $1.000 0.63%
Year Ended July 31, 2002...... $1.000 0.015 -- 0.015 (0.015) $1.000 1.53%
Year Ended July 31, 2001...... $1.000 0.049 -- 0.049 (0.049) $1.000 5.03%
Year Ended July 31, 2000...... $1.000 0.051 -- 0.051 (0.051) $1.000 5.20%
Year Ended July 31, 1999...... $1.000 0.044 -- 0.044 (0.044) $1.000 4.48%
U.S. TREASURY MONEY MARKET FUND
Year Ended July 31, 2003...... $1.000 0.004 0.004 (0.004) $1.000 0.45%
Year Ended July 31, 2002...... $1.000 0.014 0.014 (0.014) $1.000 1.41%
Year Ended July 31, 2001...... $1.000 0.046 -- 0.046 (0.046) $1.000 4.71%
Year Ended July 31, 2000...... $1.000 0.046 -- 0.046 (0.046) $1.000 4.73%
Year Ended July 31, 1999...... $1.000 0.040 -- 0.040 (0.040) $1.000 4.06%
TREASURY RESERVE MONEY MARKET
FUND
Year Ended July 31, 2003...... $1.000 0.006 -- 0.006 (0.006) $1.000 0.56%
Year Ended July 31, 2002...... $1.000 0.015 -- 0.015 (0.015) $1.000 1.53%
Year Ended July 31, 2001...... $1.000 0.048 -- 0.048 (0.048) $1.000 4.95%
Period Ended July 31, 2000(a). $1.000 0.030 -- 0.030 (0.030) $1.000 3.07%^
Year Ended December 31, 1999.. $1.000 0.043 -- 0.043 (0.043) $1.000 4.38%
Year Ended December 31, 1998.. $1.000 0.046 -- 0.046 (0.046) $1.000 4.68%
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2003...... $1.000 0.005 -- 0.005 (0.005) $1.000 0.48%
Year Ended July 31, 2002...... $0.999 0.009 (0.001) 0.008 (0.009) $0.998 0.87%
Year Ended July 31, 2001...... $0.998 0.028 0.001 0.029 (0.028) $0.999 2.83%
Year Ended July 31, 2000...... $1.000 0.031 (0.002) 0.029 (0.031) $0.998 3.11%
Year Ended July 31, 1999...... $1.000 0.026 -- 0.026 (0.026) $1.000 2.66%
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2003...... $1.000 0.009 -- 0.009 (0.009) $1.000 0.93%
Year Ended July 31, 2002...... $1.000 0.018 -- 0.018 (0.018) $1.000 1.83%
Year Ended July 31, 2001...... $1.000 0.052 -- 0.052 (0.052) $1.000 5.31%
Year Ended July 31, 2000...... $1.000 0.054 -- 0.054 (0.054) $1.000 5.55%
Period Ended July 31, 1999(b). $1.000 0.020 -- 0.020 (0.020) $1.000 1.96%^
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------
Net Expenses (before Net Assets,
Investment Net Reductions/ End of Period
Income Expenses Reimbursements) (000's)
---------- -------- ---------------- -------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003...... 0.64% 0.80% 0.97% $439,061
Year Ended July 31, 2002...... 1.53% 0.79% 0.94% $551,767
Year Ended July 31, 2001...... 4.96% 0.77% 0.94% $564,977
Year Ended July 31, 2000...... 5.35% 0.75% 0.94% $645,275
Year Ended July 31, 1999...... 4.40% 0.78% 0.94% $136,078
U.S. TREASURY MONEY MARKET FUND
Year Ended July 31, 2003...... 0.48% 0.96% 1.03% $ 54,476
Year Ended July 31, 2002...... 1.39% 0.95% 1.00% $ 97,033
Year Ended July 31, 2001...... 3.73% 0.92% 0.98% $101,125
Year Ended July 31, 2000...... 4.72% 0.85% 0.96% $ 11,817
Year Ended July 31, 1999...... 4.03% 0.79% 0.95% $ 4,390
TREASURY RESERVE MONEY MARKET
FUND
Year Ended July 31, 2003...... 0.60% 0.84% 1.01% $ 46,753
Year Ended July 31, 2002...... 1.54% 0.79% 0.96% $ 98,582
Year Ended July 31, 2001...... 4.90% 0.72% 0.95% $ 99,777
Period Ended July 31, 2000(a). 5.21%^^ 0.65%^^ 0.86%^^ $143,901
Year Ended December 31, 1999.. 4.28% 0.60% 0.70% $143,208
Year Ended December 31, 1998.. 4.56% 0.77% 0.78% $167,475
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2003...... 0.48% 0.79% 0.97% $ 33,748
Year Ended July 31, 2002...... 0.87% 0.81% 0.96% $ 31,408
Year Ended July 31, 2001...... 2.84% 0.80% 0.96% $ 40,728
Year Ended July 31, 2000...... 3.14% 0.71% 0.97% $ 51,260
Year Ended July 31, 1999...... 2.64% 0.59% 0.98% $ 22,844
INSTITUTIONAL PRIME OBLIGATIONS
MONEY MARKET FUND
Year Ended July 31, 2003...... 0.92% 0.51% 0.66% $193,468
Year Ended July 31, 2002...... 1.91% 0.50% 0.64% $207,511
Year Ended July 31, 2001...... 5.00% 0.50% 0.65% $361,629
Year Ended July 31, 2000...... 5.69% 0.45% 0.66% $180,873
Period Ended July 31, 1999(b). 4.45%^^ 0.49%^^ 0.72%^^ $ 26,000
+ Represents Class 2 Shares for Institutional Prime Obligations Money Market
Fund.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from February 19, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
123
AMSOUTH FUNDS
Financial Highlights
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Realized
Net Asset Net and Unrealized Net Realized Net Asset
Value, Investment Gains (Losses) Total from Net Gains from Value,
Beginning Income from Investments Investment Investment Investment Total End
of Period (Loss) and Futures Activities Income Transactions Dividends of Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
VALUE FUND
Year Ended July 31, 2003...... $12.57 0.05 0.79 0.84 (0.06) (0.52) (0.58) $12.83
Year Ended July 31, 2002...... $20.15 (0.02) (5.93) (5.95) (0.02) (1.61) (1.63) $12.57
Year Ended July 31, 2001+..... $19.41 (0.03) 3.58 3.55 (0.04) (2.77) (2.81) $20.15
Year Ended July 31, 2000...... $25.14 0.07 (2.19) (2.12) (0.11) (3.50) (3.61) $19.41
Year Ended July 31, 1999...... $24.55 0.02 3.10 3.12 (0.06) (2.47) (2.53) $25.14
SELECT EQUITY FUND
Year Ended July 31, 2003...... $10.77 (0.02) 0.88 0.86 (0.02) -- (0.02) $11.61
Year Ended July 31, 2002...... $11.08 (0.03) (0.28) (0.31) -- -- -- $10.77
Year Ended July 31, 2001+..... $ 8.64 (0.08) 2.52 2.44 -- -- -- $11.08
Year Ended July 31, 2000+..... $11.83 (0.01) (2.34) (2.35) (0.03) (0.81) (0.84) $ 8.64
Period Ended July 31, 1999(a). $ 9.98 0.02 1.86 1.88 (0.02) (0.01) (0.03) $11.83
ENHANCED MARKET FUND
Year Ended July 31, 2003...... $ 8.99 0.01 0.69 0.70 (0.01) -- (0.01) $ 9.68
Year Ended July 31, 2002...... $12.11 (0.05) (2.91) (2.96) -- (0.16) (0.16) $ 8.99
Year Ended July 31, 2001+..... $14.55 (0.06) (2.14) (2.20) (0.02) (0.22) (0.24) $12.11
Year Ended July 31, 2000...... $13.82 (0.04) 1.22 1.18 -- (0.45) (0.45) $14.55
Period Ended July 31, 1999(a). $10.30 0.03 3.55 3.58 (0.03) (0.03) (0.06) $13.82
LARGE CAP FUND
Year Ended July 31, 2003...... $14.94 (0.09) 1.46 1.37 -- (0.63) (0.63) $15.68
Year Ended July 31, 2002...... $20.70 (0.15) (4.42) (4.57) -- (1.19) (1.19) $14.94
Year Ended July 31, 2001+..... $27.74 (0.21) (2.77) (2.98) -- (4.06) (4.06) $20.70
Period Ended July 31, 2000(b). $27.75 (0.13) 0.12 (0.01) -- -- -- $27.74
Year Ended December 31,
1999+........................ $27.54 (0.23) 5.04 4.81 -- (4.60) (4.60) $27.75
Period Ended December 31,
1998(c)...................... $25.98 -- 1.56 1.56 -- -- -- $27.54
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, 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
Year Ended July 31, 2000...... (8.86)% 0.32% 2.10% 2.11% 17% $ 7,949
Year Ended July 31, 1999...... 14.03% 0.05% 2.08% 2.09% 18% $12,394
SELECT EQUITY FUND
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
Year Ended July 31, 2000+..... (20.47)% (0.08)% 2.21% 2.72% 25% $ 715
Period Ended July 31, 1999(a). 18.83%^ (0.49)%^^ 1.99%^^ 2.58%^^ 10% $ 1,933
ENHANCED MARKET FUND
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
Year Ended July 31, 2000...... 8.65% (0.31)% 1.77% 1.93% 30% $17,095
Period Ended July 31, 1999(a). 34.85%^ (0.12)%^^ 1.73%^^ 2.28%^^ 36% $ 6,132
LARGE CAP FUND
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
Period Ended July 31, 2000(b). (0.04)%^ (0.93)%^^ 2.00%^^ 2.07%^^ 10% $24,655
Year Ended December 31,
1999+........................ 17.78% (0.79)% 1.98% 2.00% 15% $18,584
Period Ended December 31,
1998(c)...................... 6.02%^ 0.23%^^ 1.10%^^ 2.11%^^ 3% $ 100
+ 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.
^ Not annualized.
^^Annualized.
(a)For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
(b)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(c)For the period from December 15, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements.
124
AMSOUTH FUNDS
Financial Highlights
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
-------------------------------------- --------------------------------
Net Realized
and Unrealized
Gains (Losses)
Net Asset Net from Investments, Net Realized Net Asset
Value, Investment Futures, and Total from Net Gains from Value,
Beginning Income Foreign Investment Investment Investment Total End of
of Period (Loss) Currencies Activities Income Transactions Dividends Period
--------- ---------- ----------------- ---------- ---------- ------------ --------- ---------
CAPITAL GROWTH FUND
Year Ended July 31, 2003....... $ 7.56 (0.10) 0.79 0.69 -- -- -- $ 8.25
Year Ended July 31, 2002....... $10.39 (0.27) (2.56) (2.83) -- -- -- $ 7.56
Year Ended July 31, 2001+...... $14.46 (0.17) (2.74) (2.91) -- (1.16) (1.16) $10.39
Period Ended July 31, 2000(a).. $13.93 (0.09) 0.62 0.53 -- -- -- $14.46
Year Ended December 31, 1999+.. $13.92 (0.14) 2.91 2.77 -- (2.76) (2.76) $13.93
Period Ended December 31,
1998(b)....................... $13.10 (0.05) 3.35 3.30 -- (2.48) (2.48) $13.92
MID CAP FUND
Year Ended July 31, 2003....... $ 9.13 (0.07) 1.01 0.94 -- -- -- $10.07
Year Ended July 31, 2002....... $11.83 (0.25) (2.45) (2.70) -- -- -- $ 9.13
Year Ended July 31, 2001+...... $16.52 (0.27) (4.42) (4.69) -- -- -- $11.83
Period Ended July 31, 2000(a)+. $17.28 (0.20) (0.56) (0.76) -- -- -- $16.52
Period Ended December 31,
1999(c)+...................... $10.00 (0.19) 7.47 7.28 -- -- -- $17.28
SMALL CAP FUND
Year Ended July 31, 2003....... $ 6.89 (0.12) 0.15 0.03 -- -- -- $ 6.92
Year Ended July 31, 2002....... $ 9.85 (0.17) (2.79) (2.96) -- -- -- $ 6.89
Year Ended July 31, 2001+...... $12.31 (0.22) (1.03) (1.25) -- (1.21) (1.21) $ 9.85
Year Ended July 31, 2000....... $ 8.31 (0.14) 4.14 4.00 -- -- -- $12.31
Year Ended July 31, 1999....... $ 9.11 (0.14) (0.66) (0.80) -- -- -- $ 8.31
INTERNATIONAL EQUITY FUND
Year Ended July 31, 2003....... $ 7.64 -- 0.85 0.85 -- -- -- $ 8.49
Year Ended July 31, 2002....... $ 9.35 (0.03) (1.68) (1.71) -- -- -- $ 7.64
Year Ended July 31, 2001+...... $12.25 (0.05) (2.49) (2.54) -- (0.36) (0.36) $ 9.35
Period Ended July 31, 2000(a)+. $13.21 -- (0.96) (0.96) -- -- -- $12.25
Period Ended December 31,
1999(d)....................... $10.66 (0.02) 2.69 2.67 (0.12) -- (0.12) $13.21
Ratios (to average net assets)/Supplemental Data
------------------------------------------------------------
Total
Return Net Assets,
(Excluding Net Expenses (before Portfolio End of
Redemption Investment Net Reductions/ Turnover Period
Charge) Income Expenses Reimbursements) Rate* (000's)
---------- ---------- -------- ---------------- --------- -----------
CAPITAL GROWTH FUND
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
Period Ended July 31, 2000(a).. 3.80%^ (1.11)%^^ 1.96%^^ 2.07%^^ 91% $ 8,939
Year Ended December 31, 1999+.. 21.11% (0.93)% 1.92% 1.93% 178% $ 7,704
Period Ended December 31,
1998(b)....................... 26.86%^ (0.95)%^^ 2.04%^^ (e)^^ 152% $ 2,854
MID CAP FUND
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
Period Ended July 31, 2000(a)+. (4.40)%^ (2.00)%^^ 2.33%^^ 2.37%^^ 39% $12,912
Period Ended December 31,
1999(c)+...................... 72.80%^ (2.17)%^^ 2.86%^^ 2.86%^^ 20% $ 2,177
SMALL CAP FUND
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
Year Ended July 31, 2000....... 48.13% (1.99)% 2.39% 2.59% 318% $ 2,619
Year Ended July 31, 1999....... (8.78)% (1.83)% 2.41% 3.42% 208% $ 929
INTERNATIONAL EQUITY FUND
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
Period Ended July 31, 2000(a)+. (7.19)%^ (0.04)%^^ 2.47%^^ 2.72%^^ 32% $ 595
Period Ended December 31,
1999(d)....................... 25.98%^ (0.54)%^^ 2.45%^^ 2.73%^^ 40% $ 228
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from February 5, 1998 (commencement of operations) through
December 31, 1998.
(c)For the period from May 4, 1999 (commencement of operations) through
December 31, 1999.
(d)For the period from February 2, 1999 (commencement of operations) through
December 31, 1999.
(e)There was no fee reduction in this period.
See notes to financial statements.
125
AMSOUTH FUNDS
Financial Highlights
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
-------------------------------------- --------------------------------
Net Asset Net Net Realized Net Realized Net Asset
Value, Investment and Unrealized Total from Net Gains from Value,
Beginning Income Gains (Losses) Investment Investment Investment Total End
of Period (Loss) from Investments* Activities Income Transactions Dividends of Period
--------- ---------- ----------------- ---------- ---------- ------------ --------- ---------
BALANCED FUND
Year Ended July 31, 2003..... $10.86 0.14 0.66 0.80 (0.18) (0.14) (0.32) $11.34
Year Ended July 31, 2002..... $12.42 0.22 (1.19) (0.97) (0.23) (0.36) (0.59) $10.86
Year Ended July 31, 2001+.... $12.45 0.28 1.26 1.54 (0.30) (1.27) (1.57) $12.42
Year Ended July 31, 2000..... $14.90 0.34 (0.64) (0.30) (0.37) (1.78) (2.15) $12.45
Year Ended July 31, 1999..... $15.16 0.29 0.95 1.24 (0.30) (1.20) (1.50) $14.90
STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2003..... $ 6.87 (0.03) 0.65 0.62 -- -- -- $ 7.49
Year Ended July 31, 2002..... $ 9.77 (0.07) (2.19) (2.26) -- (0.64) (0.64) $ 6.87
Year Ended July 31, 2001+.... $11.42 0.06 (0.44) (0.38) (0.11) (1.16) (1.27) $ 9.77
Period Ended July 31, 2000(a) $11.47 (0.03) (0.02) (0.05) -- -- -- $11.42
Period Ended December 31,
1999(b).................... $10.03 0.07 1.50 1.57 (0.09) (0.04) (0.13) $11.47
STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO
Year Ended July 31, 2003..... $ 7.55 0.01 0.62 0.63 (0.02) -- (0.02) $ 8.16
Year Ended July 31, 2002..... $ 9.34 0.02 (1.48) (1.46) (0.03) (0.30) (0.33) $ 7.55
Year Ended July 31, 2001+.... $10.44 0.15 (0.41) (0.26) (0.17) (0.67) (0.84) $ 9.34
Period Ended July 31, 2000(a) $10.57 0.03 (0.12) (0.09) (0.04) -- (0.04) $10.44
Period Ended December 31,
1999(c).................... $ 9.84 0.12 0.81 0.93 (0.12) (0.08) (0.20) $10.57
STRATEGIC PORTFOLIOS: GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2003..... $ 8.32 0.06 0.56 0.62 (0.08) -- (0.08) $ 8.86
Year Ended July 31, 2002..... $ 9.77 0.12 (1.16) (1.04) (0.13) (0.28) (0.41) $ 8.32
Year Ended July 31, 2001+.... $10.53 0.24 (0.12) 0.12 (0.25) (0.63) (0.88) $ 9.77
Period Ended July 31, 2000(a) $10.50 0.10 0.02 0.12 (0.09) -- (0.09) $10.53
Period Ended December 31,
1999(b).................... $10.00 0.08 0.53 0.61 (0.08) (0.03) (0.11) $10.50
STRATEGIC PORTFOLIOS: MODERATE GROWTH
AND INCOME PORTFOLIO
Year Ended July 31, 2003..... $ 8.56 0.09 0.50 0.59 (0.11) (0.03) (0.14) $ 9.01
Year Ended July 31, 2002..... $ 9.71 0.17 (0.95) (0.78) (0.17) (0.20) (0.37) $ 8.56
Year Ended July 31, 2001+.... $10.04 0.25 0.15 0.40 (0.28) (0.45) (0.73) $ 9.71
Period Ended July 31, 2000(a) $ 9.96 0.13 0.07 0.20 (0.12) -- (0.12) $10.04
Period Ended December 31,
1999(d).................... $10.00 0.13 0.02 0.15 (0.13) (0.06) (0.19) $ 9.96
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)
---------- ---------- -------- ---------------- --------- -------------
BALANCED FUND
Year Ended July 31, 2003..... 7.55% 1.27% 2.09% 2.17% 86% $20,004
Year Ended July 31, 2002..... (8.17)% 1.81% 2.09% 2.16% 34% $16,742
Year Ended July 31, 2001+.... 13.03% 2.20% 2.06% 2.12% 14% $ 9,004
Year Ended July 31, 2000..... (1.80)% 2.54% 2.10% 2.12% 16% $ 7,072
Year Ended July 31, 1999..... 8.66% 1.93% 2.09% 2.10% 23% $10,131
STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2003..... 9.02% (0.78)% 1.40% 1.83% 100% $ 2,014
Year Ended July 31, 2002..... (24.43)% (1.04)% 1.46% 1.87% 50% $ 761
Year Ended July 31, 2001+.... (4.06)% 0.58% 1.52% 1.93% 36% $ 386
Period Ended July 31, 2000(a) (0.43)%^ (0.44)%^^ 1.56%^^ 1.94%^^ 22% $ 390
Period Ended December 31,
1999(b).................... 15.70%^ 0.92%^^ 1.52%^^ 7.86%^^ 95% $ 456
STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO
Year Ended July 31, 2003..... 8.39% 0.19% 1.36% 1.81% 128% $ 4,491
Year Ended July 31, 2002..... (16.13)% 0.22% 1.45% 1.89% 63% $ 1,886
Year Ended July 31, 2001+.... (2.82)% 1.53% 1.53% 1.97% 38% $ 1,710
Period Ended July 31, 2000(a) (0.84)%^ 0.46%^^ 1.56%^^ 1.97%^^ 97% $ 1,241
Period Ended December 31,
1999(c).................... 9.48%^ 2.14%^^ 1.55%^^ 6.75%^^ 76% $ 998
STRATEGIC PORTFOLIOS: GROWTH AND INCOME
PORTFOLIO
Year Ended July 31, 2003..... 7.45% 0.76% 1.37% 1.61% 135% $ 3,839
Year Ended July 31, 2002..... (10.98)% 1.31% 1.35% 1.58% 69% $ 1,607
Year Ended July 31, 2001+.... 1.09% 2.40% 1.37% 1.60% 51% $ 1,656
Period Ended July 31, 2000(a) 1.13%^ 1.58%^^ 1.40%^^ 1.57%^^ 21% $ 1,613
Period Ended December 31,
1999(b).................... 6.10%^ 1.74%^^ 1.52%^^ 4.26%^^ 57% $ 1,725
STRATEGIC PORTFOLIOS: MODERATE GROWTH
AND INCOME PORTFOLIO
Year Ended July 31, 2003..... 7.02% 1.12% 1.40% 1.82% 136% $ 2,812
Year Ended July 31, 2002..... (8.38)% 1.74% 1.39% 1.81% 65% $ 970
Year Ended July 31, 2001+.... 4.09% 2.59% 1.51% 1.92% 62% $ 1,231
Period Ended July 31, 2000(a) 2.00%^ 2.19%^^ 1.55%^^ 1.88%^^ 21% $ 832
Period Ended December 31,
1999(d).................... 1.50%^ 2.80%^^ 1.54%^^ 6.90%^^ 124% $ 941
+ Net investment income (loss) is based on average shares outstanding during
the period.
* 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from January 27, 1999 (commencement of operations) through
December 31, 1999.
(c)For the period from February 15, 1999 (commencement of operations) through
December 31, 1999.
(d)For the period from January 28, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements.
126
AMSOUTH FUNDS
Financial Highlights
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
----------------------------------- --------------------------------
Net Realized
Net Asset and Unrealized Net Realized Net Asset
Value, Net Gains (Losses) Total from Net Gains from Value,
Beginning Investment from Investment Investment Investment Total End of
of Period Income Investments Activities Income Transactions Dividends Period
--------- ---------- -------------- ---------- ---------- ------------ --------- ---------
GOVERNMENT INCOME FUND
Year Ended July 31, 2003...... $10.26 0.33 (0.06) 0.27 (0.34) (0.15) (0.49) $10.04
Year Ended July 31, 2002...... $10.10 0.42 0.19 0.61 (0.45) -- (0.45) $10.26
Year Ended July 31, 2001+..... $ 9.61 0.47 0.51 0.98 (0.49) -- (0.49) $10.10
Period Ended July 31, 2000(a). $ 9.48 0.18 0.10 0.28 (0.15) -- (0.15) $ 9.61
LIMITED TERM BOND FUND
Year Ended July 31, 2003...... $10.69 0.28 0.01 0.29 (0.34) -- (0.34) $10.64
Year Ended July 31, 2002...... $10.54 0.42 0.17 0.59 (0.44) -- (0.44) $10.69
Year Ended July 31, 2001+..... $10.13 0.49 0.42 0.91 (0.50) -- (0.50) $10.54
Year Ended July 31, 2000...... $10.27 0.48 (0.10) 0.38 (0.52) -- (0.52) $10.13
Period Ended July 31, 1999(b). $10.58 0.27 (0.30) (0.03) (0.28) -- (0.28) $10.27
BOND FUND
Year Ended July 31, 2003...... $11.40 0.37 0.11 0.48 (0.43) (0.15) (0.58) $11.30
Year Ended July 31, 2002...... $11.10 0.43 0.37 0.80 (0.47) (0.03) (0.50) $11.40
Year Ended July 31, 2001+..... $10.50 0.50 0.61 1.11 (0.51) -- (0.51) $11.10
Year Ended July 31, 2000...... $10.60 0.49 (0.05) 0.44 (0.52) (0.02) (0.54) $10.50
Year Ended July 31, 1999...... $11.04 0.50 (0.31) 0.19 (0.50) (0.13) (0.63) $10.60
Ratios (to average net assets)/Supplemental Data
-------------------------------------------------------
Total Net
Return Assets,
(Excluding Net Expenses (before Portfolio End of
Redemption Investment Net Reductions/ Turnover Period
Charge) Income Expenses Reimbursements) Rate* (000's)
---------- ---------- -------- ---------------- --------- -------
GOVERNMENT INCOME FUND
Year Ended July 31, 2003...... 2.61% 3.08% 1.76% 1.98% 43% $10,228
Year Ended July 31, 2002...... 6.18% 4.00% 1.75% 1.96% 18% $ 3,542
Year Ended July 31, 2001+..... 10.36% 4.65% 1.74% 1.95% 25% $ 1,635
Period Ended July 31, 2000(a). 2.98%^ 4.77%^^ 1.75%^^ 1.98%^^ 42% $ 520
LIMITED TERM BOND FUND
Year Ended July 31, 2003...... 2.76% 2.52% 1.73% 1.97% 32% $23,190
Year Ended July 31, 2002...... 5.69% 3.78% 1.75% 1.96% 29% $10,307
Year Ended July 31, 2001+..... 9.20% 4.66% 1.75% 1.97% 44% $ 2,614
Year Ended July 31, 2000...... 3.85% 4.79% 1.76% 1.99% 34% $ 1,815
Period Ended July 31, 1999(b). (0.33%)^ 4.61%^^ 1.69%^^ 1.96%^^ 39% $ 1,599
BOND FUND
Year Ended July 31, 2003...... 4.27% 3.24% 1.74% 1.97% 33% $10,168
Year Ended July 31, 2002...... 7.43% 3.90% 1.74% 1.95% 35% $ 9,796
Year Ended July 31, 2001+..... 10.77% 4.55% 1.73% 1.95% 24% $ 7,342
Year Ended July 31, 2000...... 4.30% 4.72% 1.74% 1.96% 27% $ 3,636
Year Ended July 31, 1999...... 1.58% 4.63% 1.71% 1.95% 18% $ 2,521
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from March 13, 2000 (commencement of operations) through July
31, 2000.
(b)For the period from January 21, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
127
AMSOUTH FUNDS
Financial Highlights
B SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Asset Net Realized and Net Realized Net Asset
Value, Net Unrealized Total from Net Gains from Value,
Beginning Investment Gains (Losses) Investment Investment Investment Total End of
of Period Income from Investments Activities Income Transactions Dividends Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
MUNICIPAL BOND FUND
Year Ended July 31, 2003...... $10.36 0.27 (0.04) 0.23 (0.25) (0.03) (0.28) $10.31
Year Ended July 31, 2002...... $10.17 0.30 0.22 0.52 (0.32) (0.01) (0.33) $10.36
Year Ended July 31, 2001+..... $ 9.75 0.32 0.41 0.73 (0.31) -- (0.31) $10.17
Year Ended July 31, 2000...... $ 9.87 0.31 (0.05) 0.26 (0.33) (0.05) (0.38) $ 9.75
Period Ended July 31, 1999(a). $10.28 0.14 (0.41) (0.27) (0.14) -- (0.14) $ 9.87
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2003...... $10.76 0.29 (0.08) 0.21 (0.29) -- (0.29) $10.68
Year Ended July 31, 2002...... $10.49 0.29 0.28 0.57 (0.30) -- (0.30) $10.76
Year Ended July 31, 2001+..... $10.15 0.32 0.34 0.66 (0.32) -- (0.32) $10.49
Year Ended July 31, 2000...... $10.20 0.32 (0.01) 0.31 (0.33) (0.03) (0.36) $10.15
Period Ended July 31, 1999(b). $10.52 0.12 (0.30) (0.18) (0.14) -- (0.14) $10.20
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2003...... $10.38 0.20 (0.04) 0.16 (0.20) -- (0.20) $10.34
Year Ended July 31, 2002...... $10.12 0.24 0.26 0.50 (0.24) -- (0.24) $10.38
Year Ended July 31, 2001+..... $ 9.76 0.29 0.36 0.65 (0.29) -- (0.29) $10.12
Period Ended July 2000(c)..... $ 9.57 0.17 0.18 0.35 (0.16) -- (0.16) $ 9.76
Year Ended December 31, 1999.. $10.21 0.27 (0.64) (0.37) (0.27) -- (0.27) $ 9.57
Period Ended December 31,
1998(d)...................... $10.22 0.26 0.06 0.32 (0.26) (0.07) (0.33) $10.21
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)
---------- ---------- -------- ---------------- --------- -------------
MUNICIPAL BOND FUND
Year Ended July 31, 2003...... 2.19% 2.61% 1.64% 1.96% 7% $4,496
Year Ended July 31, 2002...... 5.20% 2.95% 1.64% 1.95% 10% $3,844
Year Ended July 31, 2001+..... 7.60% 3.12% 1.64% 1.95% 5% $1,777
Year Ended July 31, 2000...... 2.75% 3.30% 1.64% 1.96% 9% $ 889
Period Ended July 31, 1999(a). (2.60)%^ 3.17%^^ 1.60%^^ 1.87%^^ 21% $ 16
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2003...... 1.91% 2.61% 1.59% 2.00% 6% $3,807
Year Ended July 31, 2002...... 5.56% 2.90% 1.62% 2.01% 13% $2,647
Year Ended July 31, 2001+..... 6.61% 3.03% 1.64% 2.04% 7% $1,385
Year Ended July 31, 2000...... 3.14% 3.22% 1.62% 2.05% 11% $ 729
Period Ended July 31, 1999(b). 1.77%^ 3.06%^^ 1.49%^^ 2.00%^^ 34% $ 569
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2003...... 1.56% 1.95% 1.82% 2.09% 21% $2,936
Year Ended July 31, 2002...... 4.98% 2.29% 1.82% 2.07% 60% $1,839
Year Ended July 31, 2001+..... 6.75% 2.85% 1.84% 2.08% 123% $1,432
Period Ended July 2000(c)..... 3.74%^ 3.07%^^ 1.83%^^ 1.96%^^ 23% $1,054
Year Ended December 31, 1999.. (3.65)% 2.72% 1.84% 1.85% 64% $1,288
Period Ended December 31,
1998(d)...................... 3.17%^ 2.50%^^ 1.95%^^ (e) 155% $1,397
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from February 3, 1999 (commencement of operations) through
July 31, 1999.
(b)For the period from March 16, 1999 (commencement of operations) through July
31, 1999.
(c)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(d)For the period from February 24, 1998 (commencement of operations) through
December 31, 1998.
(e)There were no fee reductions in this period.
See notes to financial statements.
128
AMSOUTH FUNDS
Financial Highlights
B SHARES+
Selected data for a share outstanding throughout the period indicated.
Less
Net Asset Dividends Net Asset
Value, Net from Net Value,
Beginning Investment Investment End of Total
of Period Income Income Period Return
--------- ---------- ---------- --------- ------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003....................... $1.000 0.003 (0.003) $1.000 0.26%
Year Ended July 31, 2002....................... $1.000 0.008 (0.008) $1.000 0.77%
Year Ended July 31, 2001....................... $1.000 0.042 (0.042) $1.000 4.25%
Year Ended July 31, 2000....................... $1.000 0.042 (0.042) $1.000 4.31%
Year Ended July 31, 1999....................... $1.000 0.035 (0.035) $1.000 3.55%
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Year Ended July 31, 2003....................... $1.000 0.007 (0.007) $1.000 0.68%
Year Ended July 31, 2002....................... $1.000 0.016 (0.016) $1.000 1.58%
Year Ended July 31, 2001....................... $1.000 0.049 (0.049) $1.000 5.04%
Year Ended July 31, 2000....................... $1.000 0.052 (0.052) $1.000 5.29%
Period Ended July 31, 1999(a).................. $1.000 0.018 (0.018) $1.000 1.84%^
Ratios (to average net assets)/Supplemental Data
-------------------------------------------------
Net Assets,
Net Expenses (before End of
Investment Net Reductions/ Period
Income Expenses Reimbursements) (000's)
---------- -------- ---------------- -----------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003....................... 0.26% 1.18% 1.72% $ 3,567
Year Ended July 31, 2002....................... 0.71% 1.54% 1.69% $ 3,891
Year Ended July 31, 2001....................... 3.75% 1.52% 1.69% $ 1,908
Year Ended July 31, 2000....................... 4.35% 1.61% 1.69% $ 727
Year Ended July 31, 1999....................... 4.51% 1.69% 1.70% $ 224
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Year Ended July 31, 2003....................... 0.77% 0.76% 0.91% $ 91,824
Year Ended July 31, 2002....................... 1.50% 0.75% 0.89% $210,031
Year Ended July 31, 2001....................... 4.81% 0.75% 0.90% $169,676
Year Ended July 31, 2000....................... 5.43% 0.71% 0.91% $114,401
Period Ended July 31, 1999(a).................. 4.22%^^ 0.74%^^ 0.97%^^ $ 13,575
+ Represents Class 3 Shares for Institutional Prime Obligations Money Market
Fund.
^ Not annualized.
^^ Annualized.
(a)For the period from February 22, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
129
AMSOUTH FUNDS
Financial Highlights
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Realized
Net Asset and Unrealized Net Realized Net Asset
Value, Net Gains (Losses) Total from Net Gains from Value,
Beginning Investment from Investments Investment Investment Investment Total End
of Period Income and Futures Activities Income Transactions Dividends of Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
VALUE FUND
Year Ended July 31, 2003...... $12.74 0.16 0.81 0.97 (0.15) (0.52) (0.67) $13.04
Year Ended July 31, 2002...... $20.34 0.11 (5.99) (5.88) (0.11) (1.61) (1.72) $12.74
Year Ended July 31, 2001+..... $19.53 0.15 3.59 3.74 (0.16) (2.77) (2.93) $20.34
Year Ended July 31, 2000...... $25.27 0.28 (2.24) (1.96) (0.28) (3.50) (3.78) $19.53
Year Ended July 31, 1999...... $24.57 0.26 3.16 3.42 (0.25) (2.47) (2.72) $25.27
SELECT EQUITY FUND
Year Ended July 31, 2003...... $11.01 0.07 0.91 0.98 (0.06) -- (0.06) $11.93
Year Ended July 31, 2002...... $11.25 0.04 (0.25) (0.21) (0.03) -- (0.03) $11.01
Year Ended July 31, 2001+..... $ 8.73 0.02 2.52 2.54 (0.02) -- (0.02) $11.25
Year Ended July 31, 2000+..... $11.89 0.09 (2.36) (2.27) (0.08) (0.81) (0.89) $ 8.73
Period Ended July 31, 1999(a). $11.52 0.04 0.38 0.42 (0.04) (0.01) (0.05) $11.89
ENHANCED MARKET FUND
Year Ended July 31, 2003...... $ 9.17 0.08 0.71 0.79 (0.08) -- (0.08) $ 9.88
Year Ended July 31, 2002...... $12.28 0.06 (2.97) (2.91) (0.04) (0.16) (0.20) $ 9.17
Year Ended July 31, 2001+..... $14.65 0.06 (2.17) (2.11) (0.04) (0.22) (0.26) $12.28
Year Ended July 31, 2000...... $13.86 0.10 1.23 1.33 (0.09) (0.45) (0.54) $14.65
Period Ended July 31, 1999(b). $12.18 0.07 1.71 1.78 (0.07) (0.03) (0.10) $13.86
LARGE CAP FUND
Year Ended July 31, 2003...... $15.49 0.03 1.54 1.57 (0.03) (0.63) (0.66) $16.40
Year Ended July 31, 2002...... $21.25 0.02 (4.58) (4.56) (0.01) (1.19) (1.20) $15.49
Year Ended July 31, 2001+..... $28.14 -- (2.83) (2.83) -- (4.06) (4.06) $21.25
Period Ended July 31, 2000(c). $28.01 -- 0.14 0.14 (0.01) -- (0.01) $28.14
Year Ended December 31, 1999+. $27.54 0.03 5.07 5.10 (0.03) (4.60) (4.63) $28.01
Year Ended December 31,
1998(d)...................... $25.52 -- 2.02 2.02 -- -- -- $27.54
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, 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
Year Ended July 31, 2000...... (8.11)% 1.30% 1.13% 1.15% 17% $560,804
Year Ended July 31, 1999...... 15.43% 1.07% 1.08% 1.09% 18% $960,660
SELECT EQUITY FUND
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
Year Ended July 31, 2000+..... (19.72)% 0.88% 1.25% 1.78% 25% $ 5,100
Period Ended July 31, 1999(a). 3.63%^ 0.65%^^ 0.99%^^ 1.58%^^ 10% $ 10,420
ENHANCED MARKET FUND
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
Year Ended July 31, 2000...... 9.73% 0.65% 0.81% 0.98% 30% $ 31,622
Period Ended July 31, 1999(b). 14.71%^ 0.90%^^ 0.74%^^ 1.29%^^ 36% $ 14,273
LARGE CAP FUND
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
Period Ended July 31, 2000(c). (0.50)%^ 0.00%^^ 1.07%^^ 1.22%^^ 10% $694,107
Year Ended December 31, 1999+. 18.84% 0.11% 1.04% 1.14% 15% $706,313
Year Ended December 31,
1998(d)...................... 7.92%^ 0.20%^^ 1.04% ^^ 1.09%^^ 3% $786,462
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from December 3, 1998 (commencement of operations) through
July 31, 1999.
(b)For the period from December 11, 1998 (commencement of operations) through
July 31, 1999.
(c)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(d)For the period from December 14, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements.
130
AMSOUTH FUNDS
Financial Highlights
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
-------------------------------------- -------------------------------- ----------
Net Realized
and Unrealized
Gains (Losses)
Net Asset Net from Investments, Net Realized
Value, Investment Futures, and Total from Net Gains from
Beginning Income Foreign Investment Investment Investment Total Redemption
of Period (Loss) Currencies Activities Income Transactions Dividends Fees
--------- ---------- ----------------- ---------- ---------- ------------ --------- ----------
CAPITAL GROWTH FUND
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) -- (1.16) (1.16) --
Period Ended July 31,
2000(a).................. $14.27 (0.02) 0.64 0.62 -- -- -- --
Year Ended December 31,
1999+.................... $14.09 (0.01) 2.95 2.94 -- (2.76) (2.76) --
Year Ended December 31,
1998..................... $12.69 0.01 3.88 3.89 (0.01) (2.48) (2.49) --
MID CAP FUND
Year Ended July 31, 2003.. $ 9.40 0.02 1.04 1.06 (0.02) -- (0.02) --
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) -- -- -- --
Period Ended July 31,
2000(a)+................. $17.37 (0.11) (0.56) (0.67) -- -- -- --
Period Ended December 31,
1999(b)+................. $10.00 (0.12) 7.49 7.37 -- -- -- --
SMALL CAP FUND
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) -- (1.21) (1.21) --
Year Ended July 31, 2000.. $ 8.44 (0.07) 4.24 4.17 -- -- -- --
Year Ended July 31, 1999.. $ 9.15 (0.03) (0.68) (0.71) -- -- -- --
INTERNATIONAL EQUITY
FUND
Year Ended July 31, 2003.. $ 7.83 0.02 0.89 0.91 (0.02) -- (0.02) 0.01
Year Ended July 31, 2002.. $ 9.50 0.04 (1.70) (1.66) (0.01) -- (0.01) --
Year Ended July 31, 2001+. $12.37 0.06 (2.53) (2.47) (0.04) (0.36) (0.40) --
Period Ended July 31,
2000(a)+................. $13.27 0.06 (0.96) (0.90) -- -- -- --
Year Ended December 31,
1999..................... $10.58 0.08 2.75 2.83 (0.14) -- (0.14) --
Period Ended December 31,
1998(c).................. $10.05 (0.01) 0.54 0.53 -- -- -- --
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------------
Net Net
Asset Assets,
Value, Net Expenses (before Portfolio End of
End of Total Investment Net Reductions/ Turnover Period
Period Return Income Expenses Reimbursements) Rate* (000's)
------ ------ ---------- -------- ---------------- --------- --------
CAPITAL GROWTH FUND
Year Ended July 31, 2003.. $ 8.74 10.08% (0.31)% 1.16% 1.28% 151% $224,798
Year Ended July 31, 2002.. $ 7.94 (26.62)% (0.48)% 1.15% 1.27% 115% $242,193
Year Ended July 31, 2001+. $10.82 (21.11)% (0.50)% 1.11% 1.26% 100% $299,177
Period Ended July 31,
2000(a).................. $14.89 4.36%^ (0.26)%^^ 1.11%^^ 1.22%^^ 91% $298,771
Year Ended December 31,
1999+.................... $14.27 22.09% (0.09)% 1.07% 1.08% 178% $241,810
Year Ended December 31,
1998..................... $14.09 32.40% 0.07% 1.02% 1.03% 152% $173,542
MID CAP FUND
Year Ended July 31, 2003.. $10.44 11.26% 0.23% 0.99% 1.54% 59% $117,498
Year Ended July 31, 2002.. $ 9.40 (22.06)% (1.16)% 1.51% 1.73% 221% $ 30,453
Year Ended July 31, 2001+. $12.06 (27.78)% (1.03)% 1.42% 1.55% 120% $ 41,611
Period Ended July 31,
2000(a)+................. $16.70 (3.86)%^ (1.08)%^^ 1.46%^^ 1.53%^^ 39% $ 63,696
Period Ended December 31,
1999(b)+................. $17.37 73.70%^ (1.47)%^^ 2.18%^^ 2.18%^^ 20% $ 37,186
SMALL CAP FUND
Year Ended July 31, 2003.. $ 7.31 1.39% (1.11)% 1.45% 1.68% 221% $174,741
Year Ended July 31, 2002.. $ 7.21 (29.45)% (1.11)% 1.46% 1.67% 227% $139,099
Year Ended July 31, 2001+. $10.22 (10.16)% (1.07)% 1.46% 1.67% 220% $172,735
Year Ended July 31, 2000.. $12.61 49.41% (1.01)% 1.42% 1.70% 318% $162,215
Year Ended July 31, 1999.. $ 8.44 (7.76)% (0.82)% 1.39% 2.38% 208% $ 21,777
INTERNATIONAL EQUITY
FUND
Year Ended July 31, 2003.. $ 8.73 11.73% 1.52% 1.21% 1.76% 18% $254,736
Year Ended July 31, 2002.. $ 7.83 (17.49)% 0.56% 1.45% 1.79% 160% $185,374
Year Ended July 31, 2001+. $ 9.50 (20.50)% 0.59% 1.47% 1.79% 45% $145,744
Period Ended July 31,
2000(a)+................. $12.37 (6.71)%^ 0.83%^^ 1.59%^^ 1.88%^^ 32% $105,034
Year Ended December 31,
1999..................... $13.27 26.72% 0.80% 1.56% 1.84% 40% $ 46,104
Period Ended December 31,
1998(c).................. $10.58 5.27%^ (1.47)%^^ 1.61%^^ 1.89%^^ 62% $ 27,977
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from May 4, 1999 (commencement of operations) through
December 31, 1999.
(c)For the period from December 14, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements.
131
AMSOUTH FUNDS
Financial Highlights
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
------------------------------------- --------------------------------
Net Asset Net Net Realized Net Realized Net Asset
Value, Investment and Unrealized Total from Net Gains from Value,
Beginning Income Gains (Losses) Investment Investment Investment Total End
of Period (Loss) from Investments Activities Income Transactions Dividends of Period
--------- ---------- ---------------- ---------- ---------- ------------ --------- ---------
BALANCED FUND
Year Ended July 31, 2003.......... $10.90 0.23 0.66 0.89 (0.27) (0.14) (0.41) $11.38
Year Ended July 31, 2002.......... $12.45 0.32 (1.18) (0.86) (0.33) (0.36) (0.69) $10.90
Year Ended July 31, 2001+......... $12.47 0.40 1.26 1.66 (0.41) (1.27) (1.68) $12.45
Year Ended July 31, 2000.......... $14.93 0.46 (0.64) (0.18) (0.50) (1.78) (2.28) $12.47
Year Ended July 31, 1999.......... $15.18 0.44 0.95 1.39 (0.44) (1.20) (1.64) $14.93
STRATEGIC PORTFOLIOS:
AGGRESSIVE GROWTH
PORTFOLIO
Year Ended July 31, 2003.......... $ 7.03 -- 0.70 0.70 -- -- -- $ 7.73
Year Ended July 31, 2002.......... $ 9.90 (0.02) (2.21) (2.23) -- (0.64) (0.64) $ 7.03
Year Ended July 31, 2001+......... $11.51 0.14 (0.44) (0.30) (0.15) (1.16) (1.31) $ 9.90
Period Ended July 31, 2000(a)..... $11.53 0.02 (0.02) -- (0.02) -- (0.02) $11.51
Period Ended December 31, 1999(b). $10.05 0.12 1.52 1.64 (0.12) (0.04) (0.16) $11.53
STRATEGIC PORTFOLIOS:
GROWTH PORTFOLIO
Year Ended July 31, 2003.......... $ 7.62 0.07 0.62 0.69 (0.07) -- (0.07) $ 8.24
Year Ended July 31, 2002.......... $ 9.42 0.09 (1.50) (1.41) (0.09) (0.30) (0.39) $ 7.62
Year Ended July 31, 2001+......... $10.51 0.24 (0.42) (0.18) (0.24) (0.67) (0.91) $ 9.42
Period Ended July 31, 2000(a)..... $10.61 0.08 (0.11) (0.03) (0.07) -- (0.07) $10.51
Period Ended December 31, 1999(c). $10.00 0.16 0.69 0.85 (0.16) (0.08) (0.24) $10.61
STRATEGIC PORTFOLIOS:
GROWTH AND INCOME PORTFOLIO
Year Ended July 31, 2003.......... $ 8.36 0.14 0.55 0.69 (0.14) -- (0.14) $ 8.91
Year Ended July 31, 2002.......... $ 9.80 0.20 (1.16) (0.96) (0.20) (0.28) (0.48) $ 8.36
Year Ended July 31, 2001+......... $10.56 0.32 (0.12) 0.20 (0.33) (0.63) (0.96) $ 9.80
Period Ended July 31, 2000(a)..... $10.51 0.14 0.03 0.17 (0.12) -- (0.12) $10.56
Period Ended December 31, 1999(d). $ 9.85 0.13 0.69 0.82 (0.13) (0.03) (0.16) $10.51
STRATEGIC PORTFOLIOS:
MODERATE GROWTH AND
INCOME PORTFOLIO
Year Ended July 31, 2003.......... $ 8.61 0.17 0.49 0.66 (0.17) (0.03) (0.20) $ 9.07
Year Ended July 31, 2002.......... $ 9.76 0.23 (0.95) (0.72) (0.23) (0.20) (0.43) $ 8.61
Year Ended July 31, 2001+......... $10.08 0.34 0.14 0.48 (0.35) (0.45) (0.80) $ 9.76
Period Ended July 31, 2000(a)..... $ 9.98 0.18 0.07 0.25 (0.15) -- (0.15) $10.08
Period Ended December 31, 1999(e). $ 9.88 0.20 0.16 0.36 (0.20) (0.06) (0.26) $ 9.98
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, 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
Year Ended July 31, 2000.......... (0.90)% 3.50% 1.13% 1.17% 16% $166,797
Year Ended July 31, 1999.......... 9.74% 2.93% 1.09% 1.10% 23% $319,016
STRATEGIC PORTFOLIOS:
AGGRESSIVE GROWTH
PORTFOLIO
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
Period Ended July 31, 2000(a)..... 0.01%^ 0.38%^^ 0.75%^^ 1.09%^^ 22% $ 20,485
Period Ended December 31, 1999(b). 16.31%^ 3.23%^^ 0.73%^^ 2.10%^^ 95% $ 18,847
STRATEGIC PORTFOLIOS:
GROWTH PORTFOLIO
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
Period Ended July 31, 2000(a)..... (0.29)%^ 1.28%^^ 0.76%^^ 1.10%^^ 97% $ 19,495
Period Ended December 31, 1999(c). 8.59%^ 4.82%^^ 0.73%^^ 3.14%^^ 76% $ 11,372
STRATEGIC PORTFOLIOS:
GROWTH AND INCOME PORTFOLIO
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
Period Ended July 31, 2000(a)..... 1.64%^ 2.39%^^ 0.58%^^ 0.72%^^ 21% $ 87,453
Period Ended December 31, 1999(d). 8.40%^ 3.43%^^ 0.70%^^ 0.98%^^ 57% $ 86,700
STRATEGIC PORTFOLIOS:
MODERATE GROWTH AND
INCOME PORTFOLIO
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
Period Ended July 31, 2000(a)..... 2.50%^ 3.03%^^ 0.74%^^ 1.03%^^ 21% $ 20,081
Period Ended December 31, 1999(e). 3.64%^ 4.46%^^ 0.73%^^ 1.87%^^ 124% $ 21,384
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(b)For the period from January 28, 1999 (commencement of operations) through
December 31, 1999.
(c)For the period from February 1, 1999 (commencement of operations) through
December 31, 1999.
(d)For the period from February 8, 1999 (commencement of operations) through
December 31, 1999.
(e)For the period from February 10, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements.
132
AMSOUTH FUNDS
Financial Highlights
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
-------------------------------------- --------------------------------
Net Asset Net Realized Net Realized Net Asset
Value, Net and Unrealized Total from Net Gains from Value,
Beginning Investment Gains (Losses) Investment Investment Investment Total End Total
of Period Income from Investments Activities Income Transactions Dividends of Period Return
--------- ---------- ---------------- ---------- ---------- ------------ --------- --------- ------
GOVERNMENT INCOME FUND
Year Ended July 31, 2003.. $10.26 0.42 (0.05) 0.37 (0.43) (0.15) (0.58) $10.05 3.62%
Year Ended July 31, 2002.. $10.10 0.49 0.21 0.70 (0.54) -- (0.54) $10.26 7.12%
Year Ended July 31, 2001+. $ 9.61 0.56 0.50 1.06 (0.57) -- (0.57) $10.10 11.30%
Year Ended July 31, 2000.. $ 9.62 0.57 (0.03) 0.54 (0.55) -- (0.55) $ 9.61 5.91%
Year Ended July 31, 1999.. $ 9.87 0.54 (0.26) 0.28 (0.53) -- (0.53) $ 9.62 2.72%
LIMITED TERM BOND FUND
Year Ended July 31, 2003.. $10.70 0.38 0.02 0.40 (0.44) -- (0.44) $10.66 3.76%
Year Ended July 31, 2002.. $10.55 0.50 0.18 0.68 (0.53) -- (0.53) $10.70 6.57%
Year Ended July 31, 2001+. $10.13 0.58 0.43 1.01 (0.59) -- (0.59) $10.55 10.26%
Year Ended July 31, 2000.. $10.29 0.59 (0.12) 0.47 (0.63) -- (0.63) $10.13 4.71%
Year Ended July 31, 1999.. $10.43 0.59 (0.16) 0.43 (0.57) -- (0.57) $10.29 4.14%
BOND FUND
Year Ended July 31, 2003.. $11.43 0.49 0.10 0.59 (0.54) (0.15) (0.69) $11.33 5.19%
Year Ended July 31, 2002.. $11.13 0.53 0.37 0.90 (0.57) (0.03) (0.60) $11.43 8.34%
Year Ended July 31, 2001+. $10.52 0.60 0.61 1.21 (0.60) -- (0.60) $11.13 11.79%
Year Ended July 31, 2000.. $10.63 0.59 (0.06) 0.53 (0.62) (0.02) (0.64) $10.52 5.24%
Year Ended July 31, 1999.. $11.05 0.61 (0.30) 0.31 (0.60) (0.13) (0.73) $10.63 2.68%
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, 2003.. 4.08% 0.86% 1.13% 43% $253,447
Year Ended July 31, 2002.. 4.88% 0.85% 1.11% 18% $263,211
Year Ended July 31, 2001+. 5.62% 0.84% 1.10% 25% $302,099
Year Ended July 31, 2000.. 5.68% 0.85% 1.13% 42% $356,642
Year Ended July 31, 1999.. 5.44% 0.60% 1.65% 27% $ 3,150
LIMITED TERM BOND FUND
Year Ended July 31, 2003.. 3.52% 0.83% 1.12% 32% $181,187
Year Ended July 31, 2002.. 4.71% 0.86% 1.12% 29% $151,819
Year Ended July 31, 2001+. 5.59% 0.86% 1.12% 44% $155,261
Year Ended July 31, 2000.. 5.74% 0.82% 1.07% 34% $177,323
Year Ended July 31, 1999.. 5.60% 0.71% 0.98% 39% $109,554
BOND FUND
Year Ended July 31, 2003.. 4.14% 0.84% 1.12% 33% $599,249
Year Ended July 31, 2002.. 4.77% 0.84% 1.10% 35% $588,979
Year Ended July 31, 2001+. 5.47% 0.84% 1.10% 24% $609,708
Year Ended July 31, 2000.. 5.66% 0.78% 1.03% 27% $501,550
Year Ended July 31, 1999.. 5.57% 0.71% 0.95% 18% $380,226
+ 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.
See notes to financial statements.
133
AMSOUTH FUNDS
Financial Highlights
I SHARES
Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from
----------------------------------- --------------------------------
Net Realized
Net Asset and Unrealized Net Realized Net Asset
Value, Net Gains (Losses) Total from Net Gains from Value,
Beginning Investment from Investment Investment Investment Total End of
of Period Income Investments Activities Income Transactions Dividends Period
--------- ---------- -------------- ---------- ---------- ------------ --------- ---------
MUNICIPAL BOND FUND
Year Ended July 31, 2003...... $10.38 0.37 (0.04) 0.33 (0.35) (0.03) (0.38) $10.33
Year Ended July 31, 2002...... $10.19 0.40 0.21 0.61 (0.41) (0.01) (0.42) $10.38
Year Ended July 31, 2001+..... $ 9.77 0.41 0.41 0.82 (0.40) -- (0.40) $10.19
Year Ended July 31, 2000...... $ 9.87 0.41 (0.05) 0.36 (0.41) (0.05) (0.46) $ 9.77
Year Ended July 31, 1999...... $10.14 0.42 (0.18) 0.24 (0.40) (0.11) (0.51) $ 9.87
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2003...... $10.80 0.38 (0.09) 0.29 (0.38) -- (0.38) $10.71
Year Ended July 31, 2002...... $10.52 0.40 0.27 0.67 (0.39) -- (0.39) $10.80
Year Ended July 31, 2001+..... $10.16 0.41 0.36 0.77 (0.41) -- (0.41) $10.52
Year Ended July 31, 2000...... $10.22 0.42 (0.02) 0.40 (0.43) (0.03) (0.46) $10.16
Year Ended July 31, 1999...... $10.46 0.43 (0.20) 0.23 (0.41) (0.06) (0.47) $10.22
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2003...... $10.36 0.31 (0.05) 0.26 (0.30) -- (0.30) $10.32
Year Ended July 31, 2002...... $10.10 0.33 0.26 0.59 (0.33) -- (0.33) $10.36
Year Ended July 31, 2001+..... $ 9.74 0.38 0.36 0.74 (0.38) -- (0.38) $10.10
Period Ended July 31, 2000(a). $ 9.55 0.22 0.18 0.40 (0.21) -- (0.21) $ 9.74
Year Ended December 31, 1999.. $10.19 0.35 (0.64) (0.29) (0.35) -- (0.35) $ 9.55
Year Ended December 31, 1998.. $10.18 0.37 0.08 0.45 (0.37) (0.07) (0.44) $10.19
Ratios (to average net assets)/Supplemental Data
--------------------------------------------------------
Net
Assets,
Net Expenses (before Portfolio End of
Total Investment Net Reductions/ Turnover Period
Return Income Expenses Reimbursements) Rate* (000's)
------ ---------- -------- ---------------- --------- --------
MUNICIPAL BOND FUND
Year Ended July 31, 2003...... 3.21% 3.51% 0.74% 1.11% 7% $351,021
Year Ended July 31, 2002...... 6.10% 3.89% 0.75% 1.10% 10% $371,126
Year Ended July 31, 2001+..... 8.52% 4.04% 0.74% 1.10% 5% $380,330
Year Ended July 31, 2000...... 3.85% 4.25% 0.68% 1.02% 9% $387,511
Year Ended July 31, 1999...... 2.30% 4.11% 0.61% 0.95% 21% $321,293
FLORIDA TAX-EXEMPT FUND
Year Ended July 31, 2003...... 2.72% 3.51% 0.69% 1.15% 6% $ 50,536
Year Ended July 31, 2002...... 6.54% 3.80% 0.72% 1.16% 13% $ 54,901
Year Ended July 31, 2001+..... 7.72% 3.95% 0.75% 1.19% 7% $ 57,181
Year Ended July 31, 2000...... 4.02% 4.19% 0.65% 1.11% 11% $ 61,877
Year Ended July 31, 1999...... 2.16% 4.10% 0.49% 1.01% 34% $ 63,548
TENNESSEE TAX-EXEMPT FUND
Year Ended July 31, 2003...... 2.47% 2.86% 0.92% 1.24% 21% $ 39,569
Year Ended July 31, 2002...... 5.93% 3.18% 0.93% 1.21% 60% $ 49,148
Year Ended July 31, 2001+..... 7.70% 3.77% 0.94% 1.23% 123% $ 56,693
Period Ended July 31, 2000(a). 4.26%^ 3.95%^^ 0.95%^^ 1.11%^^ 23% $ 65,160
Year Ended December 31, 1999.. (2.83)% 3.57% 1.00% 1.00% 64% $ 75,537
Year Ended December 31, 1998.. 4.52% 3.65% 0.95% 0.95% 155% $ 91,687
+ 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.
^ Not annualized.
^^ Annualized.
(a)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
See notes to financial statements.
134
AMSOUTH FUNDS
Financial Highlights
I SHARES+
Selected data for a share outstanding throughout the period indicated.
Investment Activities
--------------------------------------
Less
Net Asset Net Realized Dividends Net Asset
Value, Net and Unrealized Total from from Net Value,
Beginning Investment Gains (Losses) Investment Investment End Total
of Period Income from Investments Activities Income of Period Return
--------- ---------- ---------------- ---------- ---------- --------- ------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003.......... $1.000 0.008 -- 0.008 (0.008) $1.000 0.78%
Year Ended July 31, 2002.......... $1.000 0.017 -- 0.017 (0.017) $1.000 1.68%
Year Ended July 31, 2001.......... $1.000 0.051 -- 0.051 (0.051) $1.000 5.18%
Year Ended July 31, 2000.......... $1.000 0.052 -- 0.052 (0.052) $1.000 5.31%
Year Ended July 31, 1999.......... $1.000 0.045 -- 0.045 (0.045) $1.000 4.59%
U.S. TREASURY MONEY MARKET FUND
Year Ended July 31, 2003.......... $1.000 0.006 0.006 (0.006) $1.000 0.59%
Year Ended July 31, 2002.......... $1.000 0.015 0.015 (0.015) $1.000 1.56%
Year Ended July 31, 2001.......... $1.000 0.048 -- 0.048 (0.048) $1.000 4.87%
Year Ended July 31, 2000.......... $1.000 0.048 -- 0.048 (0.048) $1.000 4.86%
Year Ended July 31, 1999.......... $1.000 0.041 -- 0.041 (0.041) $1.000 4.16%
TREASURY RESERVE MONEY MARKET FUND
Year Ended July 31, 2003.......... $1.000 0.007 -- 0.007 (0.007) $1.000 0.71%
Year Ended July 31, 2002.......... $1.000 0.017 -- 0.017 (0.017) $1.000 1.68%
Year Ended July 31, 2001.......... $1.000 0.049 -- 0.049 (0.049) $1.000 5.06%
Period Ended July 31, 2000(b)..... $1.000 0.031 -- 0.031 (0.031) $1.000 3.10%^
Year Ended December 31, 1999...... $1.000 0.043 -- 0.043 (0.043) $1.000 4.39%
Year Ended December 31, 1998...... $1.000 0.048 -- 0.048 (0.048) $1.000 4.93%
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2003.......... $0.999 0.006 0.001 0.007 (0.006) $1.000 0.62%
Year Ended July 31, 2002.......... $0.998 0.010 0.001 0.011 (0.010) $0.999 1.02%
Year Ended July 31, 2001.......... $0.998 0.029 -- 0.029 (0.029) $0.998 2.98%
Year Ended July 31, 2000.......... $1.000 0.032 (0.002) 0.030 (0.032) $0.998 3.23%
Year Ended July 31, 1999.......... $1.000 0.027 -- 0.027 (0.027) $1.000 2.76%
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Year Ended July 31, 2003........... $1.000 0.012 -- 0.012 (0.012) $1.000 1.19%
Year Ended July 31, 2002........... $1.000 0.021 -- 0.021 (0.021) $1.000 2.09%
Year Ended July 31, 2001........... $1.000 0.054 -- 0.054 (0.054) $1.000 5.57%
Year Ended July 31, 2000........... $1.000 0.057 -- 0.057 (0.057) $1.000 5.82%
Period Ended July 31, 1999(c)...... $1.000 0.042 -- 0.042 (0.042) $1.000 4.31%^
Ratios (to average net assets)/Supplemental Data
---------------------------------------------------
Net Expenses (before Net Assets,
Investment Net Reductions/ End of Period
Income Expenses Reimbursements) (000's)
---------- -------- ---------------- -------------
PRIME MONEY MARKET FUND
Year Ended July 31, 2003.......... 0.83% 0.65% 0.87% $221,937
Year Ended July 31, 2002.......... 1.68% 0.64% 0.84% $770,519
Year Ended July 31, 2001.......... 5.06% 0.63% 0.84% $745,662
Year Ended July 31, 2000.......... 5.24% 0.67% 0.76% $731,762
Year Ended July 31, 1999.......... 4.51% 0.68% 0.69% $536,899
U.S. TREASURY MONEY MARKET FUND
Year Ended July 31, 2003.......... 0.63% 0.81% 0.93% $109,413
Year Ended July 31, 2002.......... 1.60% 0.79% 0.90% $170,343
Year Ended July 31, 2001.......... 4.82% 0.76% 0.87% $199,416
Year Ended July 31, 2000.......... 4.74% 0.73% 0.77% $286,872
Year Ended July 31, 1999.......... 4.10% 0.69% 0.70% $320,847
TREASURY RESERVE MONEY MARKET FUND
Year Ended July 31, 2003.......... 0.78% 0.68% 0.90% $ 41,676
Year Ended July 31, 2002.......... 1.70% 0.65% 0.86% $218,404
Year Ended July 31, 2001.......... 4.99% 0.62% 0.85% $266,738
Period Ended July 31, 2000(b)..... 5.24%^^ 0.61%^^ 0.76%^^ $280,546
Year Ended December 31, 1999...... 4.31% 0.59% 0.60% $341,803
Year Ended December 31, 1998...... 4.78% 0.53% (a) $309,979
TAX-EXEMPT MONEY MARKET FUND
Year Ended July 31, 2003.......... 0.63% 0.65% 0.87% $129,415
Year Ended July 31, 2002.......... 1.02% 0.66% 0.86% $175,135
Year Ended July 31, 2001.......... 2.95% 0.65% 0.86% $151,905
Year Ended July 31, 2000.......... 3.28% 0.59% 0.80% $141,874
Year Ended July 31, 1999.......... 2.71% 0.49% 0.73% $ 73,880
INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND
Year Ended July 31, 2003........... 1.20% 0.26% 0.41% $175,778
Year Ended July 31, 2002........... 2.08% 0.25% 0.39% $250,091
Year Ended July 31, 2001........... 5.12% 0.25% 0.40% $221,876
Year Ended July 31, 2000........... 5.73% 0.21% 0.41% $138,779
Period Ended July 31, 1999(c)...... 4.82%^^ 0.22%^^ 0.45%^^ $ 69,458
+ Represents Class 1 Shares for Institutional Prime Obligations Money Market
Fund.
^ Not annualized.
^^ Annualized.
(a)There were no fee reductions in this period.
(b)For the period from January 1, 2000 through July 31, 2000. In conjunction
with the reorganization of the AmSouth Funds, the Fund changed its fiscal
year end to July 31.
(c)For the period from September 15, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
135
AMSOUTH FUNDS
Report of Independent Auditors
The Shareholders and
Board of Trustees of AmSouth Funds
We have audited the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, 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 Bond Fund, AmSouth Limited Term Bond Fund, AmSouth
Government Income Fund, AmSouth Municipal Bond Fund, AmSouth Florida Tax-Exempt
Fund, AmSouth Tennessee Tax-Exempt Fund, AmSouth Prime Money Market Fund,
AmSouth U.S. Treasury 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") as of July 31, 2003, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years then ended, and the financial
highlights for each of the four years or periods 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. The financial
highlights presented herein for each of the respective years or periods ended
July 31, 1999 and December 31, 1999 were audited by other auditors whose
reports dated September 21, 1999 and February 22, 2000, respectively, expressed
unqualified opinions.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of July 31, 2003, by correspondence with
the custodians and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our 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, 2003, the results of their operations for the year
then ended, the changes in their net assets for each of the two years then
ended, and their financial highlights for each of the four years or periods
then ended, in conformity with accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
Columbus, Ohio
September 22, 2003
136
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited)
Position
Held
with Term of Office and Other
Name, Address AmSouth Length of Time Number of Funds Directorships
and Date of Birth Funds Served* Overseen Held
- ----------------- -------- ------------------ -------------------------- -------------
INDEPENDENT TRUSTEES:
Dick D. Briggs, Jr., M.D....... Trustee Since 1992 Trustee of AmSouth Funds N/A
459 DER Building (consisting of 24
1808 7th Avenue South portfolios).
UAB Medical Center
Birmingham, AL 35294
Date of Birth: 1/28/1934
Wendell D. Cleaver............. Trustee Since 1992 Trustee of AmSouth Funds N/A
225 Lakewood Drive West (consisting of 24
Mobile, AL 36608 portfolios).
Date of Birth: 9/23/1934
James H. Woodward, Jr.......... Trustee Since 1987 Trustee of AmSouth Funds N/A
University of North Carolina (consisting of 24
at Charlotte portfolios). Trustee of
Charlotte, NC 28223 Variable Insurance Funds
Date of Birth: 11/24/1939 (consisting of 15
portfolios, 7 of which are
advised by AIMCO).
Edward P. Farley............... Trustee Since 2001 Trustee of AmSouth Funds
2910 Oak Hollow Drive, SE (consisting of 24
Grand Rapids, MI 49506 portfolios).
Date of Birth: 5/3/1946
Samuel W. Jackson, Jr.......... Trustee Since 2003 Trustee of Amsouth Funds N/A
3921 10th Avenue South (consisting of 24
Birmingham, AL 35222 portfolios).
Date of Birth: 12/1/1951
Robert J. McMullan............. Trustee Since 2003 Trustee of Amsouth Funds N/A
Spring Valley Road (consisting of 24
Morristown, NJ 07960 portfolios).
Date of Birth: 3/31/1954
Name, Address Principal Occupation(s) During
and Date of Birth the Past Five Years
- ----------------- -------------------------------------------
INDEPENDENT TRUSTEES:
Dick D. Briggs, Jr., M.D....... From March 1997 to present, Chief Medical
459 DER Building officer, Best Doctors(TM) Worldwide
1808 7th Avenue South Healthcare Services; from September 1967
UAB Medical Center to present, Emeritus Professor and Eminent
Birmingham, AL 35294 Scholar Chair, Univ. of Alabama at
Date of Birth: 1/28/1934 Birmingham; from October 1971 to present,
Physician, University of Alabama Health
Services Foundation; from 1981 to 1995,
Professor and Vice Chairman, Dept. of
Medicine, Univ. of Alabama at Birmingham
School of Medicine; from 1988 to 1992,
President, CEO and Medical Director,
Univ. of Alabama Health Services
Foundation.
Wendell D. Cleaver............. From September 3, 1993 to present, retired;
225 Lakewood Drive West form December 1988 to August 1993,
Mobile, AL 36608 Executive Vice President, Chief Operating
Date of Birth: 9/23/1934 Officer and Director, Mobile Gas Service
Corporation.
James H. Woodward, Jr.......... From 1992 to present, Trustee, J.A. Jones,
University of North Carolina Inc., Construction Company; from July
at Charlotte 1989 to present, Chancellor, The University
Charlotte, NC 28223 of North Carolina at Charlotte; from August
Date of Birth: 11/24/1939 1984 to July 1989, Senior Vice President,
University College, University of Alabama
at Birmingham.
Edward P. Farley............... Retired, 1999; Executive Vice President,
2910 Oak Hollow Drive, SE Old Kent Bank from January 1981-March
Grand Rapids, MI 49506 1999. Director, Kent Funds, an open-end
Date of Birth: 5/3/1946 investment management company, for
which BISYS Fund Services L.P. serves as
distributor, from March 1999 until
December 2001.
Samuel W. Jackson, Jr.......... From 1997 to present, Principal, Jackson
3921 10th Avenue South Fowlkes & Co., Inc.; from 1994-1996 Vice
Birmingham, AL 35222 President for Financial Affairs and
Date of Birth: 12/1/1951 Administration-University of Alabama at
Birmingham.
Robert J. McMullan............. From 1998 to present, Chief Financial
Spring Valley Road Officer GlobeSpanVirata, Inc.; from 1989
Morristown, NJ 07960 through 1998, Executive Vice President &
Date of Birth: 3/31/1954 Chief Financial Officer The BISYS Group,
Inc.
137
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Position
Held
with Term of Office and Other
Name, Address AmSouth Length of Time Number of Funds Directorships
and Date of Birth Funds Served* Overseen Held
- ----------------- -------- ------------------ ------------------------ -------------
INTERESTED TRUSTEES:
J. David Huber, Jr.......... Chairman Since 1987 Chairman and Trustee of N/A
3435 Stelzer Road and AmSouth Funds
Columbus, OH 43219 Trustee (consisting of 24
Date of Birth: 5/3/1946 portfolios).
Geoffrey von Kuhn........... Trustee Since 2002 Trustee of AmSouth Funds N/A
Wealth Management Group (consisting of 24
AmSouth Bank portfolios).
AmSouth Harbert Plaza -
Upper Lobby
1901 Sixth Avenue
North Birmingham, AL
35203
Date of Birth: 10/26/1951
ADVISORY TRUSTEES:
Norma A. Coldwell........... Advisory Since 2002 Advisory Trustee of N/A
3330 Southwestern Blvd. Trustee AmSouth Funds
Dallas, TX 75225 (consisting of 24
Date of Birth: 6/23/1925 portfolios).
Homer H. Turner, Jr......... Advisory Since 2002 Advisory Trustee of N/A
751 Cary Drive Trustee AmSouth Funds
Auburn, AL 36830-2505 (consisting of 24
Date of Birth: 2/18/1928 portfolios).
Name, Address Principal Occupation(s) During
and Date of Birth the Past Five Years
- ----------------- --------------------------------------------
INTERESTED TRUSTEES:
J. David Huber, Jr.......... From June 1987 to present, employee of
3435 Stelzer Road BISYS Fund Services L.P.
Columbus, OH 43219
Date of Birth: 5/3/1946
Geoffrey von Kuhn........... From April 2001 to present, Senior
Wealth Management Group Executive Vice President, AmSouth
AmSouth Bank Bancorporation and AmSouth Bank, Head,
AmSouth Harbert Plaza - Wealth Management Group; April 2000 to
Upper Lobby April 2001, Head U.S. Private Bank,
1901 Sixth Avenue Cititgroup; February 1998 to April 2000,
North Birmingham, AL Senior Managing Director and Vice
35203 Chairman, Banc One Capital Markets; May
Date of Birth: 10/26/1951 1996 to February 1998, Senior Managing
Director, Bank One Institutional Investment
Services, Inc.
ADVISORY TRUSTEES:
Norma A. Coldwell........... Trustee, AmSouth Funds 2000-2002;
3330 Southwestern Blvd. International Economist and Consultant;
Dallas, TX 75225 Executive Vice President of Coldwell
Date of Birth: 6/23/1925 Financial consultants; Trustee and Treasurer
of Meridian International Center
(International Education and Cultural
Group); Member of the Board of Advisors
of Meridian International Center and
Emerging Capital Markets, SA
(Montevideo, Uruguay); formerly, Chief
International Economist of Riggs National
Bank, Washington, DC.
Homer H. Turner, Jr......... Formerly, Trustee, AmSouth Funds; from
751 Cary Drive June 1991 to present, retired; until June
Auburn, AL 36830-2505 1991, Vice President, Birmingham
Date of Birth: 2/18/1928 Division, Alabama Power Company.
- --------
* There is no defined term of office for Trustees of AmSouth Funds.
Messrs. Huber and von Kuhn are considered to be interested persons (as
defined in the 1940 Act) of AmSouth Funds. Mr. Huber is considered an
interested person on the basis of his employment with BISYS Fund Services L.P.,
AmSouth Funds' Distributor. Mr. von Kuhn is considered to be an interested
person on the basis of his employment by AmSouth Bank, the Advisor's parent
company.
138
Trustees and Officers of AmSouth Funds (Unaudited) (Continued)
Executive Officers.
Position
Held
with Term of Office and Other
AmSouth Length of Time Number of Funds Directorships
Name and Date of Birth Funds Served* Overseen Held
- ---------------------- --------- ------------------ ----------------------- -------------
John F. Calvano............ President Since 1999 President of AmSouth N/A
Date of Birth: 3/30/1960 Funds (consisting of 24
portfolios).
Walter B. Grimm............ Vice Since 1994 Vice President of N/A
Date of Birth: 6/30/1945 President AmSouth Funds
(consisting of 24
portfolios).
Trent Statczar............. Treasurer Since 2003 Treasurer of Amsouth N/A
Date of Birth: 8/31/1971 Funds (consisting of 24
portfolios).
Rodney L. Ruehle........... Secretary Since 1999 Secretary of AmSouth N/A
Date of Birth: 4/26/1968 Funds (consisting of 24
portfolios).
Principal Occupation(s) During
Name and Date of Birth the Past Five Years
- ---------------------- -----------------------------------------
John F. Calvano............ From September 1999 to present, Senior
Date of Birth: 3/30/1960 Vice President, AmSouth Bank; from
October 1994 to September 1999, employee
of BISYS Fund Services Limited
Partnership; from July 1992 to August
1994, investment representative, BA
Investment Services; and from October
1986 to July 1994, Marketing Manager,
Great Western Investment Management.
Walter B. Grimm............ From June 1992 to present, employee of
Date of Birth: 6/30/1945 BISYS Fund Services L.P.; from 1990 to
1992, President and CEO, Security
Bancshares; from July 1981 to 1990,
President of Leigh Investments Consulting
(investment firm).
Trent Statczar............. From June 1993 to present, employee of
Date of Birth: 8/31/1971 BISYS Fund Services.
Rodney L. Ruehle........... From August 1990 to August 1995,
Date of Birth: 4/26/1968 Assistant Treasurer of the Cardinal Group
of Funds; from August 1995 to present,
Director Administration Services, BISYS
Fund Services L.P. From 1999-present,
Vice President and Secretary, Fifth Third
Funds, an open-end management
investment company for which BISYS
Fund Services, LP serves as distributor.
139
Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Position
Held
with Term of Office and Other
AmSouth Length of Time Number of Funds Directorships
Name and Date of Birth Funds Served* Overseen Held
- ---------------------- --------- ------------------ -------------------------- -------------
Alaina V. Metz............ Assistant Since 1995 Assistant Secretary of N/A
Date of Birth: 4/7/1967 Secretary AmSouth Funds
(consisting of 24
portfolios). Secretary of
Variable Insurance Funds
(consisting of 15
portfolios, 7 of which are
advised by AIMCO).
Principal Occupation(s) During
Name and Date of Birth the Past Five Years
- ---------------------- --------------------------------------------
Alaina V. Metz............ From June 1995 to Present, Chief
Date of Birth: 4/7/1967 Administrator, Administrative and
Regulatory Services, BISYS Fund Services
Limited Partnership; from May 1989 to
June 1995, Supervisor, Mutual Fund Legal
Department, Alliance Capital Management.
Currently, Chairman, Gartmore Mutual
Funds, LEADER Mutual Funds, Shay Asset
Management Fund; Alpine Equity Trust,
and Barr Rosenberg Variable Insurance
Trust; Vice President, Pacific Capital
Funds; Secretary, Variable Insurance Funds
and Signal Funds; Assistant Secretary,
BB&T Funds, BNY Hamilton Funds, Inc.,
Brenton Mutual Funds, Citizens Funds,
Counter Bond Fund, The Empire Builder
Tax Free Bond Fund, Eureka Funds,
Gartmore Variable Insurance Trust,
Governor Funds, Hirtle Callaghan Trust,
HSBC Advisor Funds Trust (Class Y--
Offshore Feeder Funds), HSBC Family of
Funds, HSBC Investor Funds, Kensington
Funds, Kent Funds, Metamarkets.com,
Meyers Investment Trust, MMA Praxis
Mutual Funds, Mutual Fund Group--Chase
Vista Funds, Mutual Fund Investment
Trust--Chase Funds, Mutual Master
Investment Trust, Mutual Fund Select
Group--Chase Vista Funds, Mutual Fund
Select Trust--Chase Vista Funds, Mutual
Fund Trust--Chase Vista Funds,
Nationwide Asset Allocation Trust
(NAAT), Old Westbury Funds, One Group
Mutual Funds, RBC Funds, Shay--
Institutional Investors Capital Appreciation
Fund, Inc., Shay--M.S.B. Fund, Inc.,
Summit Investment Trust, The Shelby
Funds, United American Cash Reserves,
USAllianz Funds, USAllianz Variable
Insurance Products Trust, UST of Boston,
Valiant Fund, Van Ness Funds, Victory
Portfolios, Victory Variable Insurance, The
Williamette Funds, Oak Value, Old
National Funds, ProFunds, 1st Source
Monogram Funds, Ambassador Funds,
American Independence Funds Trust, and
American Performance; and Treasurer,
Legacy Funds Group.
- --------
* There is no defined term of office for officers of AmSouth Funds.
The officers of AmSouth Funds are interested persons (as defined in the 1940
Act) and receive no compensation directly from AmSouth Funds for performing the
duties of their offices.
The Statement of Additional Information ("SAI") includes additional
information about the Trust's Directors and Officers. To obtain a copy of the
SAI, without charge, call (800) 451-8382.
140
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 for and for providing fund accounting
services to the Trust. Messrs. Grimm, Ruehle, and Statczar and Ms. Metz are
employees of BISYS Fund Services Limited Partnership.
COMPENSATION TABLE (1)
Pension or
Retirement Total
Aggregate Benefits Estimated Compensation
Compensation Accrued as Annual from AmSouth
from AmSouth Part of Fund Benefits upon Mutual Funds
Name Fund Expenses Expenses Retirement Paid to Trustee
- ---- ------------- ------------ ------------- ---------------
J. David Huber........... None None None None
Geoffrey A. von Kuhn..... None None None None
James H. Woodward, Jr.... $25,250 None None $25,250
*Homer H. Turner......... $24,000 None None $24,000
Wendell D. Cleaver....... $25,250 None None $25,250
Dick D. Briggs, Jr., M.D. $25,250 None None $25,250
*Norma S. Coldwell....... $24,000 None None $24,000
Edward P. Farley......... $25,250 None None $25,250
**Samuel W. Jackson, Jr.. $ 7,250 None None $ 7,250
**Robert J. McMullan..... $ 7,250 None None $ 7,250
- --------
(1)Figures are for the Trust's fiscal year ended July 31, 2003.
* Mr. Turner and Ms. Coldwell retired from the Board of Trustees and assumed
"Advisory Trustee" status in March, 2002.
** On June 18, 2003, Messrs. Jackson and McMullan were appointed by the Board
to serve as Trustees of the Trust.
141
[LOGO] AMSOUTH FUNDS(R)
ANNUAL REPORT
JULY 31, 2003
Investment Advisor
- ------------------------------------------
AmSouth Investment Management Company, LLC
1901 6th Avenue
North Birmingham AL 35203
Investment Subadvisors
- ------------------------------------------
AmSouth Asset Management, Inc.
1901 6th Avenue North
Birmingham AL 35203
.. Bond Fund
.. Capital Growth Fund
.. Large Cap Fund
.. Value Fund
OakBrook Investments, LLC
701 Warrenville Road, Suite 135
Lisle IL 60532
.. Enhanced Market Fund
.. Mid Cap Fund
.. Select Equity Fund
Sawgrass Asset Management, LLC
1579 The Greens Way, Suite 20
Jacksonville FL 32250
.. Small Cap Fund
Dimensional Fund Advisors, Inc.
1299 Ocean Avenue Santa Monica CA 90401
.. 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
9/03
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.
On September 23, 2003, 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 10 (a)(1).
Item 3. Audit Committee Financial Expert.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving
on its audit committee; or
(ii) Does not have an audit committee financial expert serving
on its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is "independent."
In order to be considered "independent" for purposes of this Item, a
member of an audit committee may not, other than in his or her
capacity as a member of the audit committee, the board of directors,
or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
3(a)(1) The registrant's board of trustees has determined that the registrant
has two audit committee financial experts serving on its audit committee.
3(a)(2) 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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
Only required for annual reports with periods ending on or after December 15,
2003.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved]
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. [Reserved]
Item 9. 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)).
In the opinion of the principal executive officer and principal financial
officer, based on their evaluation, the registrant's disclosure controls and
procedures are adequately designed and are operating effectively to ensure (i)
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to them by others within those entities,
particularly during the period in which this report is being prepared; and (ii)
that information required to be disclosed by the registrant on Form N-CSR is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.
(b) 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 registrant's last fiscal half-year (the registrant's second
fiscal half-year in the case of an annual 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 registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
have materially affected or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10. 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
under the Act (17 CFR 270.30a-2). Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 are attached hereto.
(b) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(b) under
the Act of 1940. Certifications pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AmSouth Mutual Funds
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By (Signature and Title)* /s/ Trent Statczar Trent Statczar, Treasurer
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Date 10/2/03
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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/ John F. Calvano John F. Calvano, President
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Date 10/2/03
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By (Signature and Title)* /s/ Trent Statczar Trent Statczar, Treasurer
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Date 10/2/03
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* Print the name and title of each signing officer under his or her signature.