HomeMy WebLinkAbout2002 07 30 Regular Item A
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TRUSCO
CAPITAL
MANAGEMENT
. The City of Winter Springs
July 30, 2002
Timothy J. Nash '
Vice. President
(407) 237-4173
tim. nash @ truscocapital.com
Dianne Garcia
Vice President
(407) 237-4513
dianne.garcia @ suntrust.com
'I ' TRUSCO CAPITAL MANAGEMENT
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Table of Contents
I. Market Snapshot & Economic Overview
II. Cash Flow Summary and Portfolio Performance
III. Fund Fact Sheets
IV. Portfolio Holdings
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INVESTMENT POLICY STATEMENT
Summer 2002
TRUSCO CAPITAL MANAGEMENT
Trusco Capital Management Investment Policy Group
Douglas S Phillips, CF A - Chairman Alan M. Gayle, Managing Director
"I TRUSCO CAPITAL MANAGEMENT
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Market Snapshot: June 30,.2002
Close % CHG % CHG % CHG % CHG
EQUITY INDICIES 6/28/02 1-Mo 3-Mos 6-Mos 1-Yr
6/28/02 % CHG % CHG % CHG % CHG
FIXED INDICIES , Yield 1-Mo 3-Mos _ 6-Mos 1-Yr
MAJOR MARKET MAJOR MARKETS
S&P 500 989.81 (7,1 ) (13.4) (13,2) (18,0) Lehman Aggregate 5.27% 0.87 3.69 3.79 8,63
Dow Industrials 9243.26 (6,7) (10,8) (7,0) (10.4) Lehman Gov/Credit 4.96% 0.85 3.75 3.26 8,25
NASDAQ Compo 1463.21 (9.4 ) (20.7) (25,0) (32,3) Lehman G/C Interm. 4.51% 0.86 3.56 3.33 8,17
Wilshire 5000 9384.00 (7,1 ) (12,9) (12.4 ) (17.7) ML 1-5 Gov./Corp. 3.64% 0.87 3.05 2.94 7,62
Value Line Arith. 1158.78 (7,3) (11,5) (7,1 ) (7,7) SB 1-3 Treasury 2.99% 0,86 2.42 2,38 6.66
MSCI EAFE 1123.01 (4,1 ) (3,3) (2,8) (11,0)
SECTORS
STYLE Lehman Treasury 4.11% 1.41 4.52 3.61 8.49
Barra Growth 557.33 (7,1 ) (15.4) (16,1 ) (17.7) Lehman Agency 4.08% 1.38 4.30 4.08 9.39
Barra Value 609.66 (6,3) (10,6) (9.4) (18,1 ) Lehman Credit 6.05% 0.16 2.90 2,63 7.51
Barra MidCap Growth 209.54 (9,2) (13,0) (10.0) (12,5) Lehman ABS 4.22% 1.23 3.96 4,45 9.85
Barra MidCap Value 202.65 (5,6) (5,9) 3.5 3.1 Lehman MBS Fixed 5.82% 0.82 3.48 4.51 8,98
Barra Small Cap Growth 149.48 (5,8) (8,8) (5,6) (6,1 ) Lehman High Yield 12.44% (7,37) (6.41 ) (4,84) (3,60)
Barra SmallCap Value 191,64 (4,1 ) (4,0) 5,9 7.0 Lehman Muni-GO 3.79% 1.12 3.77 4,72 6,97
CAPITALIZATION TREASURY RETURNS
S&P 100 553.66 (7.2) (14.9) (15,5) (21,3) 3-Months 1,64% 0.15 0.47 0.90 2.65
S&P 400 MidCap 565,69 (7,3) (9,3) (3,2) (4,7) 6-Months 1,70% 0.23 0.72 1.15 3.31
S&P 600 SmallCap 246.88 (5,2) (6,5) (0,0) 0.3 2-Years 2.60% 0.97 2.71 2.57 7.05
5- Years 3.37% 1.66 4.91 3.91 9.12
S&P 500 SECTORS. 10-Years 4.80% 2.07 5.93 3.72 8.45
Cons. Disc ret ionary 217,17 (8,1 ) (12,1 ) (10.2) (16,5) 30- Years 5.51% 1.87 5.73 2.06 8.81
Cons umer Staples 228,52 (6,1 ) (3,6) 4.6 9.5
Energy 217,58 (0,3) (5,3) 3.0 (5,6) MUTUAL FUNDS INDEX
Financials 336,94 (4,9) (7,9) (5,2) (12.2) Domestic Equity Funds (7,3) (12,6) (12,3) (17,2)
Heal! h Care 319,20 (9,2) (16,7) (17,2) (14,3) Large-Cap Core (7,3) (13.4) (13.7) (19,1 )
Industrials 223.29 (5,9) (14,6) (16,0) (21,0) Mid-Cap Core (7.4) (10,5) (7.7) (11.3)
Information Tech. 241.37 (12,2) (26.0) (31,6) (39,2) Small-Cap Core (5.4) (7,8) (3.4) (4.0)
Materials 142,94 (2,2) (2,7) 7.5 5.1 Intermediate In\eSt. Grade Bond 0.2 2.7 2.5 6.7
Telecom. Sen.1ces 107,67 (12,6) (23,8) (36,0) (42,8) General Muni Funds 1.0 3.4 4.2 5.8
Utilities 122,93 (7.4) (17,7) (15,7) (34,2) Money Market Objecti\e 0.1 0.3 0.6 1.8
Total Return Unless Noted Source: FactSet Sources: Lehman Brothers, Merrill Lynch, Salomon Brothers, Lipper
I" TRUSCO CAPITAL MANAGEMENT
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Investment Overview.
· Concern about the pace of economic recovery, corporate earnings growth, the threat of terrorism and accounting scandals
put renewed downward pressure on stocks in the second quarter. The fixed-income markets generally benefited from
these developments, but were not immune to problems associated with individual companies. The S&P 500 stood at 989
on June 30 with a trailing Price/Earnings ratio of 22X, while the yield on the 1 a-year Treasury note fell to 4.8% and the 10-
year A-rated corporate note offered 6,3%,
· Consumer spending momentum eased in the second quarter slowing the pace of the fledgling economic recovery and
raising fears of a "double-dip" recession. However, new orders and production continued to move higher in the business
sector, though gains were not yet sufficient to stop net inventory liquidations, to significantly improve job growth or to
rekindle capital spending. Federal spending moved higher, particularly in defense, helping support the economy but raising
the federal deficit. The major inflation indexes remained comfortably low during the quarter, but the falling dollar and rising
commodity prices raised the risk of a future acceleration, The Federal Reserve kept short-term interest rates steady in the
second quarter and suggested that there was little need to raise interest rates over the near term, unwinding market fears
of higher rates that developed in the first quarter,
· In this environment, longer-term interest rates moved lower during the quarter. The yield on the 1 a-year Treasury note fell
to 4.8% from 5.4% on March 31, while the yield on the 3-month T-bill closed at 1.6%. The Lehman Aggregate Bond Index
gained 3.7% during the quarter led by the Treasury and Agency sectors, Selected credit problems in the corporate sector
increased quality yield spreads to recession levels and caused the corporate sector to underperform during the period,
· The S&P 500 fell (13.4%) during the second quarter, leaving the index down (13.2%) through the first half of the year. Pro-
cyclical sectors such as technology and industrials suffered the greatest declines, though all sectors fell. Volatility
remained high and investor confidence dropped. Small-cap stocks again outperformed large-cap stocks.
· The slower pace of economic growth during the second quarter is consistent with our forecast of a low-trajectory recovery.
Near-term inflation pressures are likely to remain muted over the near term keeping Fed policy stable for the foreseeable
future, but we will remain alert for evidence that current inflation pressures may be spreading. We believe corporate profits
growth is at a favorable inflection point and will be posting annual gains through the second half of the year and into 2003.
We recommend an overweighted position in equities where appropriate, particularly in light of the recent sell-off, We will
continue to be price-sensitive in our entry and exit points on individual stocks, focusing as always on company
fundamentals.
· In fixed-income portfolios, we continue to recommend a neutral duration relative to the benchmark. We believe that the
cyclical/secular decline in rates is near an end, and the recovery will eventually push inflation and yields higher in the
future. As the recovery continues credit concerns will diminish, so we are maintaining an overweight position in corporate
bonds and mortgage-backed securities as a way to benefit from a future decrease in yield spreads.
'I TRUSCO CAPITAL MANAGEMENT
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Consumer / Recovery Slowed in Q2...
Job Market Flat...
600
· Job growth has been slow to return
so far in the current recovery,
following the sharp cuts in 2001. Job
growth is the main driver of income
growth, and the present slow pace
resembles the "jobless recovery" of
1991.
400
200
o
-200
-400
-600
90 91 92 93 94 95 96 97 98 99 00 01 02
Nonfarm Jobs (Monthly Change) Source:SLS
.. .and Lower Confidence...
120
80
· Sluggish job growth, additional
terrorism threats, a weak stock
market and corporate scandals all
served to diminish consumer
confidence, though it remains above
the recession low last year.
100
60
90 91 92 93 94 95 96 97 98 99 00 01 02
Consumer Sentiment (Level) Source:U of Michigan
...Led to Slower Spending Growth
1,6%
01 02
Real PCE (% Change of 3-mo. Avg.)
Source: SEA
· As the stimulative effects of last
year's tax rebates / tax cuts, Fed rate
cuts and the home refinancing wave
began to fade, spending growth
slowed in Q2. Future spending gains
will be more closely tied to job and
real income growth.
1.2%
0,8%
0.4%
0,0%
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Business Recovery Steady" but Cautious
Orders Continued to Rise...
8%
. The business sector moved steadily
higher in Q2 paced by continued
growth in new orders. Technology
orders in particular began to show
improvement.
4%
0%
-4%
-8%
92 93 94 95 96 97 98 99 00 01 02
Manufact. Orders (3-mo. %) Source:Census
... Boosting Production...
3% 70
60
. The increase in orders was followed
by production gains. Surveys show
most manufacturers increasing
output.
2%
1%
0%
50
-1%
-2% _Ind. Prod, (L) -ISM Prod, (R)
-3% 30
92 93 94 95 96 97 98 99 00 01 02
Ind. Prod. (3-mo.%) & ISM Prod. Survey Source: FRS & ISM
40
...But Inventory Cuts Persisted
1.0%
. Businesses continued to reduce
inventories during Q2 reflecting a
conservative, more defensive stance.
Inventory rebuilding should begin in
H2 and will provide a boost to total
economic growth.
0.5%
0,0%
-0,5%
-1,0%
-1,5%
92 93 94 95 96 97 98 99 00 01 02
% Chg. Business Inventories Source:Census
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Government Spending a 5tabilizinq / Transforming Force
Fed. Spending Increasingly Important...
10%
· Federal spending was a fading
economic force during the record long
economic expansion. However, the
recession in 2001 and the 9/11
Tragedy have caused the government
to take on a more prominent and
stabilizing role.
· A leading element in the federal
spending resurgence has been in
defense, which was steadily
diminished during the decade of the
1990s.
· The cost of this stability and rebuilding
of defense capacity is a return to
federal deficits. This stimulus will tend
to put downward pressure on the U.S.
dollar and upward pressure on
interest rates over time.
9%
8%
7%
6%
5%
90 91 92 93 94 95 96 97 98 99 00 01 02
Federal Spending % of GDP Source: Commerce Dept.
.. .and Defense is a Leading Force...
30%
25%
20%
15%
10%
90 91 92 93 94 95 96 97 98 99 00 01 02
Defense % of Total Federal Spending Source: Treasury Dept.
.. .but Deficits Have Returned
400
300
200
100
o
-100
-200
-300
-400
90 91 92 93 94 95 96 97 98 99 00 01 02
Federal Deficit (12-mo. Total) Source: Treasury Dept.
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Main Inflation Gauges Low and Comfortable in Q2
CPII Core PCE Still Historically Low...
16%
4%
-CPI -Core
· Core inflation remained low in Q2, with
the CPI excluding food and energy
hovering at 2 1120/0, continuing the low-
inflation trend that began in the early
1 980s.
12%
8%
0%
· A key factor that has helped keep
inflation low has been the continued
gains in productivity. Output per worker
was up 40/0 during the past year, and
unit labor costs declined.
80 85 90 95 00
CPII PCE Core (Y/Y%) Source:BLS
...And Productivity Gains Held...
12
8
- Productivity -Unit Labor Costs
4
o
· The recession caused many
companies to cut production, idling
workers and machines. This excess
capacity keeps price competition high
and price increases contained.
However, while capacity utilization is
low, the recovery is causing it to move
slowly higher.
-4
80 85 90 95
Output/Hr. I Unit Labor Costs (Yr./Yr.%)
00
Source:Census
..Helped by Excess Industrial Capacity
90
85
80 -
75
70
80 85 90
Capacity Utilization Rate (%)
95
00
Source: FRB
'I TRUSCO CAPITAL MANAGEMENT
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...but Pressures Are Building
Companies are Paying More
80
70
60
50
40
30
20
99 00
ISM Price Index (Level)
01
02
Source:ISM
95
Industrial Commodity Prices Up
90
85
80
75
70
99 00 01
JOC Industrial Commodity (Level)
02
Source: JOe
Falling $Dollar Means Higher Prices
1,2 100
-$ / Euro (L)
-Yen / $ (R)
1,1
130
110
1,0
120
0,9
0,8
99 00
Exchange Rates (Level)
140
01
02
Source:FRB
'I TRUSCO CAPITAL MANAGEMENT
· While the current pace of inflation is
low, pressures are building. Recent
ISM surveys show more companies
paying higher prices.
· Commodity prices are also moving
higher.
· The value of the U.S. $Dollar has
come under downward pressure in
2002 following a long period of
strength. With more $Dollars required
to purchase the same amount of
foreign goods, import deflation could
become import inflation.
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Equity Markets Summary
· The S&P 500 declined (13.4%) on a total return basis in the second quarter, following gains of 0.3% and 10.7% in the
first quarter and fourth quarter, respectively.
· Reports of slower growth in consumer spending raised concerns that the anticipated turn in corporate profits and capital
spending might be delayed, and equity values may be excessive. These concerns were amplified and intensified by
additional confessions of earnings shortfalls by some companies, credit concerns and accounting scandals. Much of the
sell-off occurred in June.
· All ten major sectors in the S&P 500 lost ground during the second quarter, though the more cyclically oriented sectors
tended to experience the greatest weakness, including information technology, telecommunications, and industrials.
Consumer staples, energy, and materials, which were relatively strong in first quarter, recorded the smallest losses for
the second quarter.
· The largest capitalization stocks again tended to bear the brunt of the market decline. The S&P Mega-Cap 100 fell
(14.9%) in the second quarter, while the S&P 400 MidCap and the S&P 600 SmallCap indexes fell (9.3%) and (6.5%),
respectively. The value style of investing outperformed the growth style for the period, but the performance over the past
four quarters was relatively similar in large-cap stocks.
· The worst of the news on corporate profits appears to be over, and we believe that profits growth is now at a favorable
inflection point, helped by the combination of continued recovery and easier comparisons. We forecast a 12% rise in
S&P 500 operating profits this year and 14% in 2003, though legal and regulatory changes being discussed could cause
companies to adopt more conservative reporting practices. Valuations for stocks are also more attractive than earlier in
the year as a result of both the sell-off and the decline in bond yields. Longer-term valuations may again be at risk if
inflation accelerates and the Federal Reserve reacts by raising interest rates.
· We believe that the prospects for a recovering economy and higher earnings will support the stock market in the second
half of this year. We shifted to an overweighted allocation to equities following the September 11 Tragedy due to the
aggressive Fed rate cuts and steeper yield curve. We became more cautious as a result of the market rebound of 20%+
and the 125 basis points rise in interest rates. The stock market has now given up those gains and interest rates have
declined 75 basis points; so we believe that there are now opportunities where company share price declines do not
reflect fundamental earnings power or business models.
'I TRUSCO CAPITAL MANAGEMENT
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Stocks Experience Difficult Q2
All Sectors Declined in Q2 Valuations Moderated in Q2
20 35
10
10
90 91 92 93 94 95 96 97 98 99 00 01 02
Source: FactSet Trailing PIE Ratio Source: Baseline
o
(10)
(20)
(30)
(40)
(50)
[)sc Stpl Engy
Rn Hlth lnd Tech Mat Tel Util
(4.9) (9.2) (5.9) (12.2) (2.2) (12,6) (7.4)
(7.9) (16.7) (14,6) (26.0) (2,7) (23.8) (17.7)
(5.2) (17.2) (16,0) (31,6) 7,5 (36.0) (15.7)
(12,2) (14,3) (21.0) (39,2) 5,1 (42.8) (34,2)
. HJo (8,1) (6,1) (0,3)
.3-M:> (12.1) (3,6) (5,3)
. YTD (10,2) 4,6 3,0
E11-Yr (16.5) 9,5 (5.6)
Sector Performance S&P 500
Profits Growth at Inflection Point
40%
30%
20%
10%
0%
-10%
-20%
-30%
90 91 92 93 94 95 96 97 98 99 00 01 02 03
S&P Op. Earnings (YOY%) - Red is est. Source: Trusco Capital
30
25
20
15
10%
ort PIEs
-10-Yr. Yield-CPI (%YOY)
8%
6%
4%
2%
0%
90 91 92 93 94 95 96 97 98 99 00 01 02
CPI (YN%) & 1o-Yr. Treasury (Mo. Avg.) Source: FRB & BLS
I' TRUSCO CAPITAL MANAGEMENT
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"Irrational Exuberance" Gone from Current Equitv Market
S&P Level Similar to 5 Years Ago...
· The level of S&P 500 in early July was
close to the level five years ago (July
1997). While investor sentiment was
clearly more positive then, the
economy, earnings, and interest rate
environment are decidedly more
favorable now. The economy is over
250/0 larger in nominal terms,
estimated S&P 500 operating earnings
are up 11 % and interest rates are
lower. All of these factors support a
stronger stock market.
· The Federal Reserve developed a
simple model to value the equity
market, by comparing the earnings
yield of the S&P 500 (inverse of
Price/Earnings Ratio) to the yield on
the 1 a-year Treasury note. While the
market was over-valued five years ago
(Greenspan's "irrational exuberance"
speech was in December 1996), that
same formula shows equities
undervalued relative to bonds.
Forecast
1997 2002 Chanqe
S&P 500 (July) 925 921 *
Nominal GDP $8.3T $10.6T 28%
S&P 500 Op. EPS $45.06 $50.00 11%
1 O-Yr. Treasury 6.40% 4.70% (1.7% Pts)
Fed Funds 5.50% 1.75% (3.75% pts)
30-Yr. Mortgage 7.60% 6.10% (1.5% Pts)
Output/Hour 107 123 15%
'July 12, 2002
Sources: US Govt. Stats., Thomson Finel., Prudential, S&P
.. .but Equity Valuations More Attractive
80
60
40
20
o
-20
-40
80 85 90 95 00
FRS Valuation Model - Over/(Under) Source:NDR, FRS
'I TRUSCO CAPITAL MANAGEMENT
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Fixed Income Markets Summary
· The fixed-income markets, in aggregate, benefited from a weaker economy, stable short-term rates and a
weaker stock market. Yields fell and the Lehman Aggregate Bond Index gained 3.69% on a total return
basis during the second quarter, following a relatively flat performance in the first quarter. However, the
performance gains among the major sectors were uneven.
· Short-term yields held relatively steady during the second quarter due to the stable interest rate policy from
the Fed, but longer-term yields declined in response to weaker consumer spending, continued low inflation,
and hints that Fed policy will be neutral for the foreseeable future. The yield on the 3-month Treasury biil
was 1.64% on June 30, while the 1 O-year Treasury note declined just over 60 basis points to 4.80%. This
caused the yield curve to flatten somewhat, but it remained steep by historical standards.
· The weaker economic news was accompanied by revelations of selected corporate credit problems and
accounting scandals. These problems tended to be primarily focused on the telecom sector, but the
deterioration was enough to affect overall sector averages. The quality yield spread between 1 O-year A-
rated corporate bonds and 1 O-year Treasury notes widened to 152 basis points by the end of the quarter;
close to the levels of the previous recession. Treasury and Agency securities benefited from a "flight to
quality", while the corporate sector lagged and high yield bonds declined.
· We were bullish on bonds early in the year given the excessive yield increases in the fourth quarter.
However now that rates have declined significantly, we have shifted to a neutral portfolio duration position.
While we believe that the Fed is in no hurry to raise short-term rates in the current environment, the secular
decline in yields is near an end, and the lagged effect of Fed easing, fiscal stimulus and corporate re-
structuring in a recovering economy will begin to push inflation higher. We still believe that yield spreads are
wide, and thus offer opportunities in spread product including corporates and mortgage backed securities.
'I TRUSCO CAPITAL MANAGEMENT
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Fixed Income Markets Stronger in Q2
Inter. Yields Rallied on Weak Economy... ...but Widened Credit Spreads
6,0 180
5,0
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4.0
3.0
2,0
-6/28/02
-12/31/01
- 3/28/02
. . . . . . ,6/29/01
1,0
o 5 10
Treasury Yield Curve
15
20 25
Source: Bloomberg
Long Maturities Led Rally in Q2
10
160
140
120
100
80
40
90 91 92 93 94 95 96 97 98 99 00 01 02
1o-Yr. "A"-Rated Corp. vs. Treasury Source: Merrill Lynch
Uncertainty Favored Quality in Q2
15
10
5
0
(5)
(10)
Agg
. Hv'o 0,87
G/Cr In,G/C Treas
Agcy Credit ABS M3S HiVld Mmi
1,38 0.16 1,23 0,82 (7,37) 1.12
4.30 2,90 3,96 3.48 (6.41 ) 3,77
4.08 2.63 4.45 4,51 (4,84) 4,72
9,39 7.51 9,85 8,98 (3,60) 6,97
Source:Bloomberg
0,85
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. VID 3,79 3,26
13 1. V r, 8.63 8,25
Sector Returns
0,86 1.41
3,56 4,52
3,33 3,61
8,17 8.49
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Summary of Investment Outlook.& Strategy
· Stocks experienced a second difficult quarter amid evidence of a slowing economic recovery, continued
earnings shortfalls and downgrades, renewed terrorism fears and accounting scandals, while fixed-income
investments generally benefited from the same news. Businesses saw increased orders and expanded
production, while fiscal policy was stimulative and monetary policy was stable.
· Our outlook for the economy remains positive, but we reiterate our view that the recoverylexpansion will
move along a low-trajectory path for the foreseeable future. Inflation pressures are likely to increase in the
second half of the year, but not at a rate that would prompt a near-term tightening by the Federal Reserve.
Federal spending wiii continue to be a positive, stabilizing force with particular emphasis on defense
spending. Consumer spending growth will be moderate, while business will increase production and slowly
rebuild inventories. We believe that corporate profits growth is at a favorable inflection point and will provide
fuel for a moderate capital spending rebound beginning late this year or early 2003.
· We believe that the second quarter sell-off in stocks amid a continuing economic and earnings recovery
represents an attractive buying opportunity for equities, and we recommend an overweighted position in
equities for investors with balanced portfolios. However, we also recognize that a return to growth will not
benefit all companies equally and that individual stock selection will remain important during this shake out
period.
· In fixed-income portfolios our more bullish position early in the year, prompted by the excessive yield
increases in the fourth quarter of last year, has shifted to neutral now that rates have declined significantly.
While we believe that the Fed is in no hurry to raise short-term rates in the current environment, the secular
decline in yields is near an end, and the lagged effect of Fed easing, fiscal stimulus and corporate re-
structuring in a recovering economy will begin to push inflation higher. We still believe that yield spreads
are wide given the generally improving economy, and thus offer opportunities in spread product including
corporates and mortgage backed securities.
I' TRUSCO CAPITAL MANAGEMENT
"'-
I.....
~ ~ _ _ _ ~ ........... i__ ~ ~__ _ ~
. 'I
---'---'
. I
-.,J,____._ ._
Account Summary - Period Ending 06/30/02
Quarter End Cash Flow Fiscal Year to Date Cash Flow ,
Portfolio Value on 09/30/01
Beginning Accrued Income
Portfolio Value
Contributions
Withdrawls
Gain (Loss)
Interest and Dividends
Net Accrued Income
Market Value
Ending Accrued Income
Portfolio Value on 06/30/02
$6,098,505 Portfolio Value on 09/30/01
$76 Beginning Accrued Income
$6,098,582 Portfolio Value
$190,070 Contributions
-$39,887 Withdrawls
-$372,831 Gain (Loss)
$1,176 Interest and Dividends
$3 Net Accrued Income
$5,877,034 Market Value
$79 Ending Accrued Income
$5,877,113 Portfolio Value on 06/30/02
$5,267,026
$158
$5,267,184
$603,510
-$109,935
$112,649
$3,783
-$79
$5,877,034
$78
$5,877,113
'I" TRUSCO CAPITAL MANAGEMENT
1
. a...- '
-
i..--
L-.....
'"---
--~-:..
-~--
Performance Report - Period Ending 06/30/02
Fiscal Year to Date
3 Months 9 Months 12 Months 36 Months 60 Months
- - ------
City of Winter Springs Defined Benefit Plan -6.01 % 2.57% -5.42% 3.67% 6.87%
----------------.
Total Equity -10.58% 2.28% -12.49% 1.30% 5.58%
SunTrust High Grade Growth Fund -10.89% 2.50% -11.47% -1.35% 9.80%
Russell 1000 Growth Index -18.67% -8.78% -26.49% -16.15% -0.28%
S & P 500 Index -13.40% -3.88% -17.99% -9.18% 3.66%
SunTrust High Grade Equity Income -8.15% 3.57% -5.50% -2.61% 4.90%
SunTrust Relative Value Fund -10.37% -1.24% -11.95% -4.32% 4.90%
Russell 1000 Value Index -8.52% 2.25% -8.95% -2.92% 6.52%
SunTrust US Limited Cap Fund -13.42% 1.86% -19.52% 6.91% 14.29%
Russell 2000 Index -8.35% 15.39% -8.60% 1.67% 4.44%
S&P Mid Cap 400 Index -9.31 % 14.20% -4.72% 6.66% 12.57%
STllnternational Equity Fund -2.51 % 2.41% -9.16% -5.91% -1.54%
MSCI EAFE Index -2. 13% 5.23% -9.42% -6.85% -1.60%
Fixed Income 4.18% 3.47% 8.81% 7.77% 7.74%
SunTrust High Grade Bond Fund 4.21% 3.63% 8.97% 7.76% 7.75%
Lehman Govt Credit Bond Index 3.75% 3.33% 8.25% 7.86% 7.48%
Lehman Aggregate Bond Index 3.69% 3.84% 8.63% 8.11% 7.57%
I TRUSCO CAPITAL MANAGEMENT
2
.
.... L...J _Il~u_ L.....L__ __~_
_...____... _~ _'~_- __1.. _ __~ _
- T
----'
Asset Allocation - Period Ending 06/30/02
Portfolio Allocation
For the Period Ending June 30, 2002
City of Winter Springs Defined Benefit Plan
US Limited Cap
17%
High Grade Bond
35%
I
High Grade Equity
Income
16%
Inti Equity Fund
2%
Relative Value
2%
Cash & Equivalents
1%
High Grade Growth
27%
Total - $5,877,033.81
I TRUSCO CAPITAL MANAGEMENT
3
Sun Trust High Grade Growth Fund
June 30, 2002
Equity Style
Fund Description
Value Blend Growth
Large
Medium
NAV:
Assets (mil):
Small
Fund Philosophy
~
Large Growth
Composition
The fund seeks capital appreciation by Cash:
$49.16 investing primarily in the large, well- U.S. Stocks:
$151.20 established companies in the top three Non-U.S, Stocks:
quality rating categories of major credit
rating agencies, including Value Line,
Moody's or Standard & Poor's,
Top Ten Holdings
5,9%
94,1 % ...w.~.:"'"
0,0% .c~'
H\
us 5tlc~
''''
Industry Concentration , . ::, '
Security % Equity Security
American Inti Group 3,7% Harley Da'v1dson
Pfizer Inc 3.4% Freddie Mac
Microsoft Corp 3.2% General Elec Co
Johnson & Johnson 3.2% Marsh & McLennan Cas
Union Pac Corp 3.1 % Masco Corp
Portfolio Characteristics
Characteristics
Di\1dend Yield (Current)
EPS Growth (5 Year Estimate)
Market Capitalization ($bil)
Price-to-Book
PIE (12 months trailing)
Return on Equity
Fund
0.9%
16.3%
66.5
3.9x
17.6x
18.2%
% Equity
2,8%
2.7%
2.6%
2,5%
2.4%
S&P 500 Index
1.6%
13,8%
85.1
3.0x
16,Ox
16,7%
Consumer
Discretionary
Consumer
Staples
Energy
Financials
Healthcare
Industrials
Information
TeChnOlogy
Materials
Telecom
Services
3.220/0
0.000/0
4.060/00
20.460/0
13.63C;:X:>
17.980/0
20.000/0.
13.9300/0
_ Fund
- S&P 500
Cumulative & Annualized Total Return Performance as of June 30, 2002 .
Fund
S& P 500 Index
Lipper Growth Funds Index
Three
Months
-10.9%
-13.4%
-14.1 %
I TRUSCO CAPITAL MANAGEMENT
Utilities
0.000/0
3.090/0
Year-
to-Date
-8.8%
-13.2%
-15.9%
One II
Year
-11.5%
-18.0%
-22.8%
Three
Years
-1.3%
-9.2%
-11.1%
Annualized
Fi\€ Se\€n
Years Years
9.8% 15.0%
3.7% 10.7%
1.9% 7.5%
Inception II
04/1990
13.9%
11.6%
9.7%
The second quarter of this year was a
very disappointing one for both the
economy and the securities markets.
The rebound in economic growth was
lower than expected as consumer and
business spending rates were below
forecasts. More importantly for the
securities markets was a drop in
investors' confidence, as corporate
accounting scandals continued. The
Fund return for the quarter was -
10.9% versus -13.4% for the S&P
500 Index. Even though our heaviest
sector exposures were Consumer
Discretionary, Technology and
Healthcare, all of which were hard
hit, the high quality of the individual
stocks cushioned the fall. We remain
underweight in Energy and Materials,
which did relatively well in the
quarter, but in which we see limited
earnings growth. While we expect
volatility to remain fairly high in the
second half of the year, we also are
optimistic that the market decline is
near an end. We believe stocks will
recover nicely with the leaders being
the ones with superior earnings
growth. Fund Manager: Elliott
Perny, CFA.
1995 1996 1997 1998 1999 2000 2001 2002
First Quarter 9.3% 5.6% 2.6% 15.4% 5.6% 0.2% -4.8% 2.4%
Second Quarter 6.6% 5.6% 18.8% 5.7% 5.1% 0.6% 5,8% -1 0.9%
Third Quarter 6.8% 3.7% 7.3% -12.4% -7.7% 2.6% -13.6%
Fourth Quarter ' 6.0% 4.7% 3.7% '25.9% 14.8% -1.7% 12.3%
Fund 31.9% 21,0% 35.5% 34,7% 17,6% 1,6% -2,3% -8,8%
S& P 500 Index 37,5% 23.0% 33.4% 28,8% 21,1% -9.2% -11 ,9% -13,2%
Lipper Growth Funds Index 32.6% 17.5% 28.1% 25,7% 28.0% -10,9% -18,0% -15,9%
Growth of $10,000 from 07-31-90 to 06-30-2002 . , , . '. .: ~ ;;'~
$60,000
$50.000
$40,000
$30.000
$20,000
~_........
$10.000
$0
Jun-90 Jun-91 Jun-92 JlIn-93 Jun.94 JLlI1~95 Jun-96 JUI1-97 Jun-gO Jun-g9 ..lUll-DO JUIl-Q 1 Jun-02
-Fund -S&P 500
MPT Statistics/Other Measurements
3 Year
II Alpha Beta R-Squared Sharpe Ratio Std. Deviation II
Fund 0.53 0.80 81.99 -0.01 15.01
S&P 500 Index 0.00 1.00 100.00 -0.14 15.79
I TRUSCO CAPITAlMANAGEMENl
.....,..-..
......-." - ..---. -...
~
SunTrust High Grade Equity Income Fund
June 30, 2002
Equity Style
Fund Description
Value Blend Growth
Large
Medium
NAV:
Assets (mil):
$26.99
$44.51
Small
Top Ten Holdings
Fund Philosophy
Composition
~
Large Value
4.5%
95.5% N;l~~;;'
0,0%.'0":
Cash
4.5%
U.S. SloCKs
95.5",.
Industry Concentration , ~
Cumulative & Annualized Total Return Performance as of June 30, 2002 ' . ,
Security
Verizon Comm.
SBC Communicatio
Citigroup Inc,
Gannett Co,
American Inti Gr
% Equity Security
2.9% Exxon Mobil Corp
2.7% Chubb Corpl
2,7% Phillips Petroleum
2,6% Masco Corp
2,3% Kimberly-Clark Corp,
% Equity
2,2%
2,1%
2,1%
2,1%
2,0%
Portfolio Characteristics
Characteristics
Di'..1dend Yield (Current)
EPS Growth (5 Year Estimate)
Market Capitalization ($bil)
P rice-to-Book
PIE (12 months forward)
Fund S&P Barra Value
2.2% 2.0%
11.3% 12.1%
41.6 62,7
2.5x 2.0x
17.4x 15,8x
The fund invests in a diversified portfolio Cash:
of high quality, blue chip equities to U.S. Stocks:
provide an above-average total return Non-U.S, Stocks:
through capital growth and moderate
income.
Consumer Discretionary
. S&P Barra Value
. Fund
23.6%
32.50/0
Annualized
Three Year- One II Three Five Seven Inception II
Months to-Date Year Years Years Years 04/1993
-8.2% -3.8% -5.5% -2,7% 4.9% 10,9% 11.4%
-1 0.7% -9.5% -18.1% -5.7% 4.1% 10.4% 10,8%
-9.4% -6.7% -9'.8% -3.2% 4.1% 9.4% 9.4%
Fund
S&P 500 Barra Value Index
Lipper Equity Income Average
Consumer Staples
Energy
Financials
Healthcare
Industrials
11.6%
10,3%
"I TRUSCO CAPITAL MANAGEMENT
Information Technology
Materials
Telecom Services
Utilities
Sun Trust High Grade Equity Income Fund .
June 30, 2002
Manager's Qtrly Perspective
The High Grade Equity Income
Fund performed well on a
relative basis during the
second quarter of 2002. The
Fund returned -8.20/0 for the
quarter versus -10.7% for the
S&P Barra Value Index.
Although the stock market
would suggest otherwise the
economy is recovering with first
quarter GDP up a healthy
6.10/0. However there are
obstacles that remain, such as
a "spent up" and "levered up"
consumer, abundant unused
plant capacity and concerns
over corporate governance. As
the markets and economy
move through this phase we
believe those companies with
strong balance sheets, good
operating leverage and most
importantly, solid dividend
policies will be the best
performers. The Fund is
positioned to benefit from these
types of companies. Fund
Manger: Mills Riddick, CFA.
Historical Quarterly/Calendar Returns
1995 1996 1997 1998 1999 2000 2001 2002
First Quarter 10.8% 5.3% 3.1% 12.3% -1,6% -3.7% -4,7% 4,7%
Second Quarter 6.7% 4.1% 12,6% -3.8% 14.9% -2.3% 5,9% -8,2%
Third Quarter 8,0% 2.9% 8.9% -9,0% -12.0% 6,6% -8.8%
Fourth Quarter 8.4% 5.9% 0.5% 13.2% -2,3% 12.1% 7,7%
Fund 38.4% 19.4% 27,0% 11,3% -2,8% 12.4% -0.7% -3,8%
S&P 500 Barra Value 37.0% 22,0% 30,0% 14,7% 12,7% 6,1% -11 ,7% -9.5%
Lipper Equity Income A\19rage 29,7% 17.9% 27.5% 11.7% 4,2% 7,5% -5,2% -6,7%
Growth of $10,000 from 04-01-93 to 06-30-02 . ,
$40,000 ...,
$35,000
$30,000
$25,000
,
$20.000 J
I
I
$10.000 -,
,
$5,000 ;
,
,
so -,...------------- -,----.~~. ~._- .. -...-..:...-- -------r---------~~.---
Jun-93 ..1un-94 ..1un-96 ..1un-96 .Jun~97 Jun-9a ..1un-99
~
..1un-02
..1un-OO Jun-01
- Fund - 80.,.,-0. Value
MPT Statistics/Other Measurements
Fund
S&P 500 Barra Value Index
Alpha
0.24
0.00
3 Year
R-Squared Sharpe Ratio
74,71 -0.02
100.00 -0,08
Std. De\oiation I
16.78
15,52
Beta
0,91
1.00
'I TRUSCO CAPITAL MANAGEMENT'
~
~
--.
....-.--.
~
---...,...,
..---.,
,......--,
"
,.......-,
--- ..--...,
~
r-i
-
STI Classic Growth and Income Fund
June 30, 2002
Equit~ Style
Value Blend Growth
Large
Medium
Small
~
Large Value
Fund Description
Fund Philosophy
Composition
Ticker:
Expense Ratio:
NAV:
Assets (mil):
CRVAX
0.99%
$12.95
$852.2
The fund seeks to provide long-term
capital appreciation and, as a secondary
objective, current income, by investing
primarily in domestic and foreign
common stocks of companies with
market capitalization of at least $1 billion.
Cash:
Stocks:
1.2%
98.8%
_Cash
,0/.
Top Ten Holdings
Secu ritv
Cooper Industries
Duke Energy
Berkshire Hathaway
Chevron Texaco
International Paper
% Equity
3.2%
2.9%
2.6%
2.6%
2.6%
Industry Concentration . ,
Security % Equitv
Honeywell Inti 2.5% Consumer Discretionary
Newell Rubbermaid 2.5%
Exxon Mobil 2.4%
Wells Fargo 2.4%
Conoco 2.3%
Energy
32,6%
Consumer Staples
. Fund
. Barra Value
21,9%
Financials
Portfolio Characteristics.
Cumulative & Annualized Total Return Performance as of June 30,2002 .
Characteristics
Dividend Yield (Current)
EPS Growth (5 Year Estimate)
Market Capitalization ($bil)
Price-to-Book
PIE (12 months Trailing)
Return on Equity
Healthcare
Fund Barra Value
1.9% 2.0%
8% 4%
53.0 B 62.7 B
2.8x 2.0x
20.1x 19.7x
14.9% 9.3%
Industrials
17.1%
Information Technology
10.3%
12,2%
Materials
Telecom Services
7,9%
Utilities
*Factset
~ Annualized Inception ~
Th ree One Th ree Five Seven
Months Year Years Years Years 1 0/92
Fund (10.4%) (12.0%) (4.3%) 4.9% 10.4% 10.6%
Barra Value (10.7%) (18.1%) (5.7%) 4.1% 10.4% 11.6%
11 TRUSCO CAPITAL MANAGEMENT
Ongoing disclosures of corporate
malfeasance and a 2Q economic pace
that decelerated from robust 1 Q levels
weighed heavily upon US equity market
results. Equities suffered one of the
worst quarters since World War II, with
no sector, style, nor size strategies
escaping unscathed. The Fund again
performed better than its Index and
slightly better than its peer group,
although measured against an extremely
negative yardstick is viewed with
absolute disappointment. While
impending doom and growing pessimism
are becoming pervasive, sentiment
belies an investment backdrop that
continues its slow, grinding
improvement. We believe that economic
progress, profit recovery, valuation, and
generally stable interest rates and
inflation can revive the market during the
second half, and have positioned the
Fund accordingly.
Fund Manager:
Jeffrey E. Markunas, CFA
First Quarter 8.5% 4.9% 0.0% 12.6% 2.6% 1.0% -7,7% 1.9%
Second Quarter 6.0% 4.2% 17.4% 0.6% 9.9% -1.4% 4,9% -10.4%
Third Quarter 7.3% 1.8% 9,1% -10.4% -7,2% 5.0% -10,8%
Fourth Quarter 4.8% 7.1% -0.2% 16.4% 9,1% -3,1% 8.1%
Fund 29.4% 19,1% 27,7% 18,2% 14,2% 1.4% -6,6% -8,7%
Barra Value 37,0% 22,0% 30,0% 14,7% 12,7% 6,1% -11 ,7% -9,5%
Growth of $10,000 from 10/01/1992 to 6/30/02 . _ ". ,'i
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000 -'-' -----
$10,000
$5,000 '
$0 __._.+_...___~__..._~u_._.___~._._.___~.___._~..~_:-.+~T.,"''":','-'--;';---rr-r---'~'l''; ;-,',.;,....~-:-....-;-!-..,r'.;
92 93 94 95 96 97 98 99 00 01 02
- Fund - Barra Value
MPT Statistics/Other Measurements
Fund
Alpha
-1.09
3 Year
Beta R-Squared rlSharpe Ratio Std, De\1ationll
0,762 80.464 -0,66 13,26
I TRUSCO CAPITAL MANAGEMENT'
--,
-
---,
----,
Large
NAV:
Assets (mil):
$22.1
$55,2
Medium
Small
Top Ten Holdings
The fund seeks long-term capital growth
through investment in a diversified
portfolio of stocks of companies with a
market capitalization between $100
million and $10 billion
Cash:
U,S, Stocks:
Non-U.S, Stocks:
3,7%
96 3 Non-U,S.
, % Stocks
0,0% .0,0% ~.~:/~
U,S, Stocks
96,3%
Industry Concentration , .
Cumulative & Annualized Total Return Performance as of June 30, 2002 " '.~ ,
Security % EQuity Security % EQuity
SouthTrust Corp, 2,3% Heartland Express Inc, 1,8%
Dean Foods 00 2,0% Hbernia Corp 1,8%
Attston Co, 1.9% Renal Care Group 1,7%
/'brth Fork Bancorp 1.9% 8ectronics Boutique Hldgs 1,6%
M3.rshall & Isley Corp 1,8% Too Inc, 1,5%
Portfolio Characteristics
Characteristics
Di'.1dend Yield (Current)
EPS Growth (5 Year Estimate)
Market Capitalization ($bil)
Price-to-Book
PIE (12 months forward)
Return on Equity
Fund
0.5%
19.1%
3.1
2.7x
20.5x
11.4%
S&P Mid Cap 400
1.1%
16,2%
2,9
2,3x
18,6x
11.4%
Fund
50% S&P Mid Cap 400/ 50% S&P 600 Index
Lipper Mid Cap Core Index
Three
Months
-13.4%
-6.5%
-10.6%
Consumer
Disc retionary
Consumer
Staples
Energy
Financials
Healthcare
Industrials
Information
TeChnology
Materials
Telecom
Services
Utilities
Year-
to-Date
-18.3%
-0.1%
-7.3%
15.40/0
19.40/0
18.90/0
15_20/0
0.00/0
. Fund
. S&P Mid Cap 400
7.00/0
One II
Year
-19,5%
-0.7%
-11.6%
Annualized
Five Seven
Years Years
14.3%
10.9%
7.5%
Inception II
12/1996
15.4%.
12,1%
8.6%
Three
Years'
6,9%
8,3%
3.8%
14.3%
11.0%
I TRUSCO CAPITAL MANAGEMENT
SunTrust u.s. Limited Capitalization Equity Fund
June 30,2002
Small and mid-cap stocks
outperformed large-cap stocks
in the second quarter of 2002 as
the S&P 600 Small-Cap Index
returned -6.5%, the S&P 400
Mid-Cap Index returned -9.3%
and the S&P 500 Index
returned -13.4%. The
SunTrust U.S. Limited Cap
Fund returned -13.4%. Growth
35,000.00 ~
significantly underperformed
Value in the quarter and the
Fund's current tilt toward
growth had a negative impact 25.000,00 _u______ ___.m__________
on performance relative to the 20.000_00 m_._ .__. __._ ___ u__
benchmark. The Fund remains
positioned to benefit from a
continuing economic recovery.
The Fund's focus is on
companies already showing
earnings progress in the
improved economic
environment. Fund Manger:
John Hamlin.
Manager's Qtrly Perspective
Historical Quarterly/Calendar Returns
1995
2000 2001
-1.2% 13.8% -0.6% 21.5% -11.7% -5.5%
14.5% -1.3% 19.1% -1.5% 16.5% -13.4%
16.7% -17.9% -3.1% 6.0% -21.0%
-0.5% 25.9% 35.8% -11.6% 24.5%
", ..
... ...
.
~..
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Fund 31.4% 16,0% 55.9% 12,2% 1,2% -18.3%
50% S&P Mid Cap 400 / 50% S&P 600 Index 30,5% 20,3% 28,9% 8,9% 13,5% 14,7% 3,0% -0,1%
Lipper Mid Cap Core Index 25.4% 17.9% 22.2% 7.8% 28.2% 6,3% -4.9% -7.3%
Growth of $10,000 from 12-31-1996 to 06-30-2002
30.000_00
\ff'
, 5.000.00
- -. - . - ~----_. ---- ----- -- ____un _____
----J---".-V~"--/-
'1 0.000.00 -------------------~.---..-~-.-~--.---.
Jun-97 Jun-9B Jun-99 Jun-OO
Jun-01
Jun-02
_ Fund ~ SP 400tSP 600
MPT Statistics/Other Measurements
Fund
S~P Mid Cap 400 Index
II Alpha
0,01
0,00
3 Year
R-Squared
77,89
1 00,00
Sharpe
0,11
0,12
Std. Deviation II
28,59
21,05
Beta
1,17
1,00
"( TRUSCO CAPITAL MANAGEMENt
~l
,............,
............
--
~ ~~
STI Classic International Equity Fund
June 30, 2002
Equity Style
. - : -. .
. . . .-
Fund Description
Ticker:
Expense Ratio:
NAV:
Medium Assets (mil):
Small
STITX
1.48%
$8.93
$265.64
Top Ten Holdings
Security
BP PLC
Novartis AG
Royal Bank of Scotland Gr
TotalFinaEff SA
BNP Pari bas SA
% Eauity
3.22%
2.34%
1.86%
1.85%
1.80%
Security % Eauity
Shell Transport & Tradir 1.79%
Lafarge SA 1.68%
G!aY.oSnithKline PLC 1.55%
Nestle SA 1.52%
Northern Rock PLC 1.41 %
Portfolio Characteristic~
Characteristics
Di~dend Yield (Current)
EPS Growth (5 Year Estimate)
Market Capitalization ($bil)
Price-ta-Book
PIE (12 months trailing)
Return on Equity
Fund
2,2%
11,5%
37,6
2,1x
23,5x
12,9%
MSCI EAFE
2,3%
10,6%
42
2,Ox
31.00
11,7%
~
Foreign Stock
Fund Philosophy
Composition
The fund seeks long-term capital Cash: 1.8%
appreciation by investing primarily in a Stocks: 98.2%
diversified portfolio of equity securities
of foreign issuers.
Cash
1.8%
Industry Concentration
Industrials
Materials
Infonnation Technology
Consumer Discretionary
13,2%
13,6%
. STI International Equity Fund
. MSCI EAFE
Energy
Telecommunication Ser.;ces
Financials
25,2%
24.4%
Consumer Staples
Health Care
Utilities
Cumulative & Annualized Total Return Performance as of June 30, 2002
Fund
MSCI EAFE Index
Lipper International Funds Objective
Three
Months
-2.5%
-2.1%
-2.9%
Annualized
Five Seven
Years Years
-1.5% N/A
-1.6% 2.4%
-0.7% 3,7%
Inception
to Date
4,9%
2,2%
N/A
One
Year
-9.2%
-9,5%
-10.2%
Three
Years
-5.9%
-6,8%
-5.3%
'I TRUSCO CAPITAL MANAGEMENT
The MSCI EAFE was down 2.1 %
during the second quarter of 2002. The
STI Classic International Equity Fund
was down 2.5% during the same period.
The Fund underperformed mainly due
to a higher exposure to cyclical
companies that were expected to benefit
from the current economic recovery.
Relative to US stocks, many
international stocks are still well
undervalued, and we believe this
valuation disparity will continue to
narrow. Although international markets
are likely to be characterized by
volatility in the short term, we are
confident that long-term investors
should continue to be rewarded for their
patience. We continue to look for
companies with a positive earnings
outlook trading at attractive valuations
relative to their global peers.
Fund Manager: Chad Deakins, CFA
Historical Quarterly/Calendar Returns .
1996 1997 1998 1999 2000 2001 2002
Fi rst Quarter 4.7% 4.1% 15.2% 0.2% -1.4% -11,7% 1.1%
Second OJarter 5.5% 12,2% 1.1% 2,8% 5.3% 1,1% -2,5%
Third Quarter 1,2% 5.3% -18.3% 0.4% -8.1% -11 .3%
Fourth Quarter 9,2% -7.8% 16,9% 6,0% 1,1% 3.9%
Fund 22,1% 31,1% 11,2% 9,5% -3,5% - 1 7.7% -1.4%
MSCI EAFE Index 6.4% 2,1% 20.3% 27.3% -14,0% -21.2% -1.4%
Lipper International Funds Objective 12,7% 6.2% 13.5% 41.7% -15,3% -21.7% -1,7%
Growth of $10,000 from 02-01-1995 to 06-30-2002 .
$30.000
$25,000
$20.000
",/"/'-...-.""~'-.
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$15.000
$10,000
$5.000
$0
Feb-95
Feb-98
Feb..OO
Feb-01
Feb-02
Feb-99
Feb..96
Feb-97
- STI Classic International Equity - MSCI EAFE Index
MPT Statistics/Other Measurements
Fund
MSCI EAFE Index
Lipper International Funds Objective
Alpha
-0,09
0,00
1.07
R-Sauared ~
0,67
1,00
0,59
3 Year
Sharpe Ratio Std, Deviation
-0.69 14,36
-0,73 15,07
NlA 22.01
Beta
0,78
1,00
0,90
I TRUSCO CAPITAL MANAGEMENT
--,
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Cumulative & Annualized Total Return Performance as of June 30, 2002 .' '
NAV:
Assets (mil):
$27.79
$307,94
Medium
Low
Distribution by Market Sector
Corporate Bond
Agency
Mortgages
US Treasury
ABS
Cash
Fund
39,5%
6,1%
ML A Rtd GIC
31,1%
22,0%
0.0%
56,9%
0.0%
0,0%
20.3%
24.8%
2.8%
6.5%
Portfolio Characteristics
Characteristics
A~rage Rating
A ~rage Coupon
Current Yield
Yield to Maturity
A~rage Maturity (Years)
Effecti~ Duration (Years)
Fund
AA1
6,3%
5,9%
4,9%
8,6
5 1
ML A Rtd G/C
AAA
6,3%
5,8%
4,5%
8.4
5 1
Fund
Lehman Aggregate
Merrill Lynch A Rated and Abo\.e GIG.
I TRUSCO CAPITAL MANAGEMENT
Three
Months
4.2%
3.7%
4.4%
The fund seeks to provide a high level of
total return through current income and Cash:
capital appreciation by investing in Bonds
corporate investment grade bonds rated
A or higher by major credit rating
agencies and U,S, Government
securities.
6,5%
93,5%
Distribution by Maturity , _ '.. :
0-3 Years
35,70/0
3-5 Years
5-7 Years
7-10 Years
10-20 Years
20+ Years
. ML A RId G/C
. Fund
Year-
to-Date
3.7%
3.8%
3.8%
One II
Year
9.0%
8.6%
9.0%
Annualized
Fi\.e Se\.en
Years Years
7.8% 7.3%
7.6% 7.3%
7.7% 7.2%
8.3%
8.2%
8.1%
Inception II
Three
Years
7.8%
8.1%
8.1%
Despite the economy continuing to
grow in the second quarter, a flight to
quality took place in the fixed income
markets as interest rates declined, the
yield curve steepened and higher
quality securities outperformed. This
flight to quality was caused by investor
concerns about the pace and
character of economic growth,
credibility and credit problems with
some corporations, and international
unrest. As the economy slowed from
a 6.1 % growth rate in the first quarter,
expectations of Federal Reserve
tightening were pushed out toward
year end or early next year. This led
the Treasury yield curve to steepen
from 208 basis points to 263 basis
points as the two year yield declined
by 86 basis points versus the 31 basis
point decline in thirty year yields.
Treasury indexes performed best
followed by agencies, mortgages and
corporates respectively. Mortgages,
after having a very good first half of
the year lagged in June as higher
volatility and prepayment expectations
hurt their performance. Corporates
had a poor quarter overall but followed
the overall theme of higher quality
outperforming lower quality issues.
Fund Manager:
Earl Dennev. CFA
1995 1996 1997 1998 1999 2000 2001 2002
First Quarter 4.4% -1.8% -0.7% 1.7% -0.4% 2.3% 3.2% -0.5%
Second Quarter 6.1% 0.5% 3.5% 2.7% -1.0% 0.7% 0.2% 4.2%
Third Quarter 1.9% 1.5% 3.4% 5.2% 0.9% 2.5% 5.2%
Fourth Quarter 4.6% 2.8% 3.5% 0.2% -0.5% 4.9% -0.1%
Fund 18,1% 3,1% 10,0% 10.0% -1.1% 10,7% 8.6%
Lehman Aggregate 18.5% 3.6% 9,7% 8,7% -0,8% 11.6% 8.4%
Merrill Lynch A Rated and Above G/C 18.9% 2.8% 9.7% 9.7% -2.2% 12.4% 8.2%
Growth of $10,000 from 09-01-1989 to 06/30/2002
$30,000
$25.000
$20.000
$15,000
$10.000
$5.000
$0
Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec-
89 90 91 92 93 94 95 96 97 98 99 00 01 02
-- Fund ------- ML A Atd G/C
- SunTrust High Grade Bond Fund - ML A Rtd G/C
I' TRUSCO CAPITAL MANAGEMENT
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STATEMENT OF ASSETS Page 1 of 3
SunTrust Hi~h Grade Growth Fund
1109900 190241 40100034
June 30 2002
SHARESI SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
'Cash and Equivalents
CASH 0,000 8,947,305.17 0,000 8,947,305,17 5,92%
'Cash and Equivalents 8,947,305,17 8,947,305,17 5.92%
Consumer Discretionary
84.900 BED BATH & BEYOND INC 32,631 2,770,368,19 37.740 3,204,126,00 2,12%
91,250 BEST BUY COMPANY INC 37.539 3,425,410,00 36,300 3,312,375,00 2,19%
61,000 FAMILY DOLLAR STORES 31,772 1.938,109,01 35,250 2,150,250,00 1.42%
40,300 GANNETT INC 76,362 3,077,376,23 75,900 3,058,770,00 2,02%
76.200 HARLEY DAVIDSON INC 49,624 3,781,324,09 51,270 3,906,774,00 2,59%
68,500 HOME DEPOT INC 44,062 3,018,276,26 36,730 2,516,005,00 1,67%
37.500 KOHLS CORPORATION 67,589 2,534,574.20 70,080 2,628,000,00 1,74%
49,900 LIMITED INC 20.836 1,039,710.47 21,300 1,062,870,00 0,70%
69,700 LOWES COS INC 30,155 2,101,812,25 45.400 3,164,380,00 2,09%
35,700 MCGRAW-HILL COMPANIES INC 61,024 2,178,556,96 59,700 2,131,290,00 1.41%
116,000 OFFICE DEPOT INC 16,640 1,930,273,53 16,800 1,948,800,00 1,29%
Consumer Discretionary 27,795,791,19 29,083,640,00 19,25%
Consumer Staples
43,900 CLOROX CO 47,174 2,070,949.86 41.350 1,815,265,00 1,20%
115,600 SARA LEE CORP 20,863 2,411,741,06 20.640 2,385,984,00 1,58%
Consumer Staples 4,482,690,92 4,201,249,00 2,78%
Energy
42.600 ANADARKO PETE CORP 51,720 2,203,271,57 49,300 2,100,180,00 1,39%
37,530 APACHE CORP 51,987 1,951,085.75 57.480 2,157,224.40 1.43%
78.100 EXXON MOBIL CORPORATION 40,101 3,131,887.51 40,920 3,195,852,00 2,11%
Energy 7,286,244,83 7,453,256.40 4,93%
L-.-.
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STATEMENT OF ASSETS Page 2 of 3
SunTrust Hi~h Grade Growth Fund
1109900 190241 40100034
June 30 2002
SHARESI SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Financials
68,600 AMER!CAN EXPRESS COMPANY 39,954 2,740,824,02 36.320 2,491,552,00 1,65%
76,417 AMERICAN INTL GROUP INC 66.440 5,077,177.51 68,230 5.213,931,91 3.45%
86,267 CITIGROUP INC 45,990 3,967,377,37 38,750 3,342,833.22 2,21%
33,800 FANNIE MAE 71,948 2,431,843,27 73,750 2,492,750,00 1,65%
61,700 FREDDIE MAC 52,979 3,268,801,08 61,200 3,776,040,00 2,50%
36,500 MARSH & MCLENNAN COS INC 99,976 3,649,110,53 96,600 3,525,900,00 2,33%
54,000 MBNA CORPORATION 25,754 1,390,724,20 33.070 1,785,780,00 1,18%
26,200 SLM CORP 63,641 1,667,404.87 96.900 2,538,780,00 1,68%
Financials 24,193,262,84 25,167,567,13 16,66%
Health Care
27,100 ALLERGAN INC 17 .409 471,782,18 66.750 1,808,925,00 1,20%
30,400 GUIDANT CORP 47,262 1,436,764.92 30.230 918,992,00 0,61%
113,200 HEALTH MANAGEMENT ASSOCIATION 17,376 1,966,908,79 20.150 2,280,980,00 1,51%
85,700 JOHNSON & JOHNSON 41,606 3,565,633,37 52.260 4,478,682,00 2,96%
84,300 KING PHARMACEUTICALS INC 24,774 2,088,438,27 22.250 1,875,675.00 1,24%
139,200 PFIZER INC 42,821 5,960,671,97 35,000 4,872,000,00 3,22%
22,300 TENET HEAL THCARE CORP 41,839 932,999,52 71.550 1,595,565,00 1,06%
19,700 UNITEDHEAL TH GROUP INC 60,522 1,192,279,67 91,550 1,803,535,00 1,19%
33,900 WELLPOINT HEALTH NETWORKS 51,080 1,731,617,16 77,810 2,637,759,00 1,75%
Health Care 19,347,095,87 22,272,113,00 14,74%
Industrials
40,000 APOLLO GROUP INC-CL A 25,699 1,027,949,36 39,420 1,576,800,00 1,04%
21,800 GENERAL DYNAMIC CORP 82,579 1,800,231,17 106.350 2,318,430,00 1,53%
125,100 GENERAL ELEC CO 37,176 4,650,669,80 29,050 3,634,155,00 2.41%
36,900 ILLINOIS TOOLS WORKS 71.481 2,637,633.80 68.300 2,520,270,00 1,67%
28,900 LOCKHEED MARTIN CORP 39,689 1,147,017,56 69.500 2,008,550,00 1,33%
126,500 MASCO CORP 26,938 3,407,594.49 27,110 3,429,415,00 2.27%
109,100 NORFOLK SOUTHERN CORP, 22,807 2,488,232.78 23.380 2,550,758,00 1,69%
42,700 SABRE HOLDINGS CORP 45,008 1,921,828,74 35,800 1,528,660,00 1,01%
69,500 UNION PAC CORP 52,784 3,668,489.68 63,280 4,397,960,00 2,91%
-
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I...--.
STATEMENT OF ASSETS Page 3 of 3
SunTrust Hi~h Grade Growth Fund
1109900 190241 40100034
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Industrials - cant.
23,400 UNITED TECHNOLOGIES CORP 71,654 1,676,714,57 67,900 1,588,860.00 1,05%
Industrials 24.426,361,95 25,553,858,00 16,91%
Information Technology
92,900 ADOBE SYSTEMS INC 35,695 3,316,035,16 28,500 2,647,650,00 1,75%
153,300 BMC SOFTWARE INC, 24,892 3,815,924,68 16,600 2,544,780,00 1,68%
210,600 CISCO SYS INC 16.065 3,383,185,04 13,950 2,937,870,00 1,94%
71 ,100 ELECTRONIC DATA SYS CORP NEW 59,577 4,235,942,69 37,150 2,641.365,00 1,75%
121,400 INTEL CORP 31,353 3,806,257,22 18,270 2,217,978,00 1,47%
39,400 lEXMARK INTERNATIONAL INC 48,419 1,907,691,80 54.400 2,143,360,00 1.42%
78,196 MICROCHIP TECHNOLOGY INC 24.724 1,933,352.45 27.430 2,144,916,28 1.42%
82,600 MICROSOFT CORP 56,658 4,679,947,19 54,700 4,518,220,00 2,99%
177,900 ORACLE CORP 13,847 2.463,371,00 9.470 1,684,713,00 1,11%
258.400 SUN MICROSYSTEMS INC, 12,755 3,295,967,79 5,010 1,294,584,00 0,86%
100,100 TEXAS INSTRUMENTS INC, 34,700 3,473.456.48 23,700 2.372,370,00 1,57%
57,000 XILlNX INC 35,743 2,037,362,18 22,430 1,278,510,00 0,85%
Information Technology 38,348.493,67 28.426,316,28 18,81 %
154,827,246,44 151,105,304,98 100,00%
l:q_:~.....u.
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--...
,
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STATEMENT OF ASSETS Page 1 of 4
SunTrust Highwade Equity Income Fund
110990 5 90230 30100034
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
'Cash and Equivalents
CASH 0,000 1,988,273,78 0,000 1,988,273,78 4.48%
.Cash and Equivalents 1,988,273,78 1,988,273,78 4.48%
Consumer Discretionary
22,200 DISNEY WALT HLDG CO 24,818 550,955.14 18,900 419,580,00 0,94%
39,300 FORD MTR CO DEL 18,089 710,897.65 16.000 628,800,00 1.42%
15,200 GANNETT INC 56,207 854,351,28 75.900 1,153,680,00 2,60%
15,700 GENUINE PARTS CO 25,970 407,729,50 34,870 547,459,00 1,23%
29,900 INTERPUBLlC GROUP COS INC. 27,759 829,989.35 24.760 740,324,00 1,67%
24,200 LIMITED INC 16,814 406,909.93 21.300 515,460,00 1,16%
17 ,200 MCDONALDS CORP 27,320 469,896.47 28.450 489,340,00 1,10%
8,700 MCGRAW-HILL COMPANIES INC 56.920 495,207,17 59.700 519,390,00 1,17%
15,200 NEWELL RUBBERMAID INC 26,896 408,813,33 35,060 532,912,00 1,20%
Consumer Discretionary 5,134,749,82 5,546,945,00 12,49%
Consumer Staples
9,200 CLOROX CO 36,036 331,530,29 41,350 380,420,00 0,86%
10,400 ESTEE LAUDER COMPANIES-CL A 32,100 333,843.92 35.200 366,080,00 0,82%
13,200 HEINZ CO, 40,793 538,469.66 41.100 542,520,00 1,22%
14,300 KIMBERL Y-CLARK CORPORATION 58,823 841,169,99 62,000 886,600.00 2,00%
17,300 PEPSICO INC 45,244 782,722,49 48.200 833,860,00 1,88%
Consumer Staples 2,827,736,36 3,009,480,00 6,77%
Energy
12,900 ANADARKO PETE CORP 50.401 650,167,53 49,300 635,970,00 1.43%
25,265 CONOCO WI CL B 25,172 635,964,01 27,800 702,367,00 1,58%
24,900 DIAMOND OFFSHORE DRILLNG INC 28.274 704,020,06 28.500 709,650,00 1,60%
24,000 EXXON MOBIL CORPORATION 39,128 939,080,32 40,920 982,080,00 2,21%
15,500 PHILLIPS PETE CO 57,218 886,875,57 58,880 912,640,00 2,05%
'---...
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,
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--.....-.".- - -- .--
STATEMENT OF ASSETS Page 2 of 4
SunTrust Hitwade Equity Income Fund
110990 5 90230 30100034
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Energy - cont.
14,700 VALERO ENERGY CORPORATION 41.461 609,483,34 37.420 550,074,00 1,24%
Energy 4,425,590,84 4,492,781,00 10,11%
Financials
9,500 AFLAC INC 28,917 274,711,98 32,000 304,000,00 0,68%
22,700 ALLSTATE CORP 26,504 601,632.32 36,980 839,446,00 1,89%
6,000 AMBAC FINANCIAL GROUP INC. 55.499 332,991.64 67,200 403,200,00 0,91%
12,700 AMERICAN EXPRESS COMPANY 41,392 525,682,08 36,320 461,264,00 1,04%
15,285 AMERICAN INTL GROUP INC 61,345 937,655,39 68.230 1,042,895,55 2,35%
21,603 AMSOUTH BANCORPORATION 16,238 350.796,74 22,380 483,475,14 1,09%
6,400 BANK OF AMERICA CORP 45,053 288.341,93 70.360 450,304,00 1,01%
12,900 CHUBB CORPORATION 52,114 672.276,81 70,800 913,320,00 2,06%
30,400 CITIGROUP INC 48,505 1,474,543,63 38,750 1,178,000,00 2,65%
16,622 FLEET BOSTON FINANCIAL CORP 29,908 497,129.41 32,350 537,721,70 1,21%
11,200 JEFFERSON PILOT CORP 47,014 526,557.74 47.000 526,400,00 1,18%
23,775 JP MORGAN CHASE & CO 47,389 1,126,672,24 33,920 806,448,00 1,82%
13,900 KEYCORP NEW 23,448 325.926,09 27,300 379,470,00 0.85%
11,400 LINCOLN NATIONAL CORP 45,756 521,613.47 42,000 478,800,00 1,08%
10,500 MERRILL LYNCH & CO INC 45,709 479.940,37 40,500 425,250,00 0,96%
11,400 MORGAN ST ANL Y ON WTTR DISCVR 57,963 660,775,11 43,080 491,112,00 1,11%
6,100 PNC FINANCIAL SERVICES GROUP 46,354 282,760,24 52,280 318,908,00 0,72%
11,700 TORCHMARK CORP, 30,758 359,865,06 38,200 446,940,00 1,01%
Financials 10,239.872.25 10,486,954,39 23,60%
Health Care
23,300 BECTON DICKINSON & CO 33,287 775,598,36 34.450 802,685,00 1,81%
24,100 BRISTOL MYERS SQUIBB CO 43,693 1,053,003.29 25,700 619,370,00 1.39%
20,311 PHARMACIA CORPORATION 50,839 1,032,585,43 37.450 760,646,95 1,71%
14,400 SCHERING PLOUGH CORP 35,690 513,935,87 24,600 354,240,00 0,80%
Health Care 3,375.122,95 2,536,941,95 5,71%
Industrials
2,800 3MCO 94,975 265,930,65 123,000 344,400,00 0,78%
,-.-.--....
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_. --J ~_ _~
STATEMENT OF ASSETS Page 3 of 4
SunTrust Hi8h~rade Equity Income Fund
110990 5 90230 30100034
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Industrials - cont.
20,200 DELTA AIR LINES INC DEL 28,812 581,993,97 20.000 404,000,00 0.91%
25,000 DOVER CORP 43,635 1,090,887,31 35,000 875,000,00 1,97%
17,200 HONEYWELL INTERNATIONAL INC 34,721 597,203,80 35,230 605,956,00 1,36%
33,600 MAS CO CORP 23,344 784,373,39 27.110 910,896,00 2.05%
23,300 NORFOLK SOUTHERN CORP. 21,180 493,484.63 23,380 544,754,00 1,23%
13,900 PALL CORP 19,139 266,037,60 20,750 288,425,00 0,65%
9,400 PARKER HANNI FIN CORP 40.452 380,251,33 47,790 449,226,00 1,01%
18,300 ROCKWELL COLLINS 21.712 397,325,51 27,420 501,786,00 1,13%
12,651 TEXTRON INC 39.850 504,146,97 46,900 593,331.90 1,34%
Industrials 5,361,635.16 5,517,774,90 12.42%
Information Technology
13,600 AVNETINC 19.313 262,654,22 21,990 299,064,00 0,67%
11,300 ELECTRONIC DATA SYS CORP NEW 53,170 600,822.32 37.150 419,795,00 0,94%
40,500 HEWLETT PACKARD CO 22,914 928.030,39 15,280 618,840,00 1,39%
46,700 MOTOROLA INC 13.907 649,453.11 14,590 681,353,00 1,53%
Information Technology 2,440,960,04 2,019,052,00 4,54%
Materials
16,800 ALCOA INC 26,095 438,403,30 33.150 556,920.00 1,25%
18,276 EASTMAN CHEM CO 39,509 722,074.60 46,900 857,144.40 1.93%
19,800 INTERNATIONAL PAPER CO 34,144 676,049,97 43,580 862,884,00 1,94%
5,700 PRAXAIR INC 35,927 204,785.28 56,970 324,729.00 0,73%
13,400 ROHM AND HAAS 31,799 426,102,71 40.490 542,566,00 1,22%
Materials 2,467,415,86 3,144,243.40 7,08%
Telecommuincalion Services
9,900 ALL TEL CORP 52,630 521,037,53 47,000 465,300,00 1,05%
16,400 SELLSOUTH CORP 31,621 518,584,83 31,500 516,600,00 1,16%
17,200 CENTURY TELEPHONE ENTERPRISE 28,245 485,812.40 29,500 507,400,00 1,14%
38,800 SSC COMMUNICATIONS INC 39,770 1,543,057,30 30,500 1,183,400,00 2,66%
SHARESI
PAR VAL
-',--
_.!"._~ -
SECURITY
DESCRIPTION
Telecommuincation Services - cont.
31,740 VERIZON COMMUNICATIONS
T elecommuincation Services
Utilities
10,300
9.900
12.400
9.000
Utilities
ALLEGHENY ENERGY
FPL GROUP INC
PPL CORPORATION
PROGRESSENERGYINC
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STATEMENT OF ASSETS
SunTrust Highgrade Equity Income Fund
11099005190230
June 30 2002
Page 4 of 4
30100034
UNIT
COST
TOTAL
COST
LAST
PRICE
MARKET
VALUE
PERCENT
ASSETS
41,824
1,327,498,94
40,150
1,274,361,00
3,947,061,00
8,88%
2,87%
4,395,990.99
35,325 363,845.41 25,750 265,225,00 0,60%
54,428 538,839,33 59,990 593,901,00 1,34%
34,126 423,157.31 33,080 410,192,00 0,92%
46,558 419,025,60 52,010 468,090,00 1,05%
1,744,867.65 1,737,408,00 3,91%
44,402,215,69 44,426,915.42 100,00%
-._--..... ._---~~_:.. -----~ --~ -~...- H ~~ -" .....;:~~;;-... ... .
STI Classic Growth & Income Fund
% Equity Portfolio Holdings as of 6/30/01 %
Consumer Staples of Type Market Value Price Unit Cost Total Cost Yield of Type Market Value Price Unit Cost Total Cost Yield
400,000 Heinz 1,7% $16,356,000 40,89 42,12 $16,847,430 3,8% Technology
300,000 Hershey Foods 1.9% $18,513,000 61,71 45.34 $13,601,990 1,8% 800,000 Compaq Computer 1,3% $12,256,000 15,32 22,61 $18,087,700 0.7%
575,000 McCormick & Co, 2,5% $24,161,500 4202 33,62 $19,333,334 1,9% 700,000 Computer Assoc, 2,6% $25,200,000 36,00 29,11 $20,378,605 0,2%
175,000 Proctor & Gamble 1,2% $11,165,000 63,80 57,61 $10,082,248 2,2% 200,000 EMC Corp, 0.6% $5,850,000 29,25 36,90 $7,380,950 0,0%
150,000 Quaker Oats 1.4% $13,687,500 91,25 36,89 $5,534,025 1,3% 550,000 Intel Corp, 1,7% $16,087,500 29.25 21,87 $12,027,296 0,3%
1,100,000 Sara Lee 2,0% $18,940,000 18.94 17,37 $17,372,280 3,1% 175,000 IBM 2,0% $19,775,000 113,00 79.39 $13,893,769 0,5%
Total 10,8% $102,823,000 $82,771,306 2,3% 1,550,000 Lucent Technologies 1.0% $9,625,500 6,21 11,53 $17,865,415 1,3%
Consumer Cycllcals 325,000 Microsoft 2,5% $23,725,000 73.00 53,02 $17,230,128 0,0%
200,000 AOL Time Warner 1,1% $10,600,000 53,00 39,35 $7,869,390 0,0% 800,000 Motorola 1.4% $13,248,000 16,56 20,83 $16,666,845 1.0%
725,000 Brunswick Corp, 1,8% $17,421,750 24,03 20,55 $14,899,192 2,1% 600,000 Sun Microsystems 1,0% $9,432,000 15,72 17,14 $10,283,810 0.0%
1,000,000 Circuit City 1,9% $18,000,000 18,00 12,22 $12,215,300 0.4% 300,000 Tellabs 0,6% $5,814,000 19,38 39,08 $11,725,275 0,0%
200,000 Gannett Inc 1.4% $13,180,000 65,90 55,22 $11,043,373 1,3% Total 14.8% $141,013,000 $145,539,793 0,4%
635,000 Hasbro Inc, 1.0% $9,175,750 14.45 15,11 $9,594,352 0,8% Capital Goods
200,000 Johnson ClIs 1,5% $14,494,000 72.47 61,83 $12.366,379 1,7% 425,000 Boeing Co. 2,5% $23,630,000 55,60 39,06 $16,600,876 1,2%
325,000 Lennar 1.4% $13,552,500 41,70 37,83 $12,294,522 0,1% 300,000 Cooper Industries 1,2% $11,877,000 39,59 34,70 $10,409,693 3.5%
550,000 Target Corp 2,0% $19,030,000 34,60 23,55 $12,950,630 0.6% 175,000 General Electric 0,9% $8,531,250 48,75 16.41 $2,871,646 1,3%
705,300 Walt Disney 2.1% $20,376,117 28.89 27,06 $19,086,307 0,7% 130,000 Illinois Tool Works 0,9% $8,229,000 63,30 64,16 $8,340,635 1.3%
Total 14,2% $135,830,117 $112,319,444 0.9% 400,000 Ingersoll Rand 1,7% $16,480,000 41,20 32,89 $13,154,767 1,7%
Healthcare 400,000 Lockheed Martin 1,5% $14,820,000 37,05 35,59 514,235,006 1.2%
500,000 Abbott Labs 2,5% $24,000,000 48,00 42,51 $21,255,155 1,8% 225,000 Textron Inc, 1,3% $12,384,000 55.04 45,83 $10,312,028 2.4%
616,500 Johnson & Johnson 3.2% $30,825,000 50,00 34,71 $21,396,079 1.4% Total 10,0% $95,951,250 $75,924,652 1,8%
200,000 Merck & Co, 1.3% $12,782,000 63,91 57,36 $11,472,985 2.1% Flnanclals
400,000 Watson Pharm. 2.6% $24,656,000 61,64 36,92 $14,766,014 0.0% 250,000 American Inll Group 2,2% $21,252,500 85,01 37.71 $9,427,271 0,2%
Total 9.7% $92,263,000 $68,890,233 1.3% 450,000 Bank One Corp 1.7% $16,110,000 35.80 34.06 $15,327,760 2.4%
Energy 12,000 Berkshire Hathaway 2,9% $27,600,000 2300,00 1703.30 $20,439,602 0,0%
200,000 Conoco CI B 0,6% $5,780,000 28.90 28,61 $5,721,760 2,6% 575,000 Citigroup 3,2% $30,383,000 52,84 41,64 $23,945,466 1,1%
275,000 Exxon Mobil 2.5% $24,021,250 87,35 46,06 $14,144,104 2,2% 250,000 Fannie Mae 2,2% $21,257,500 85,03 45,73 $11,432,308 1.4%
200,000 Royal Dutch 1,2% $11,654,000 58,27 57,91 $11,581,070 2.1% 225,000 Fifth Third Bank 1.4% $13,511,250 60,05 53,40 $12,015,636 1,3%
200,000 Texaco Inc. 1.4% $13,332,000 66,66 51.36 $10,271,060 2.7% 425,000 Jefferson Pilot 2.2% $20,536,000 48,32 41,64 $17,696,223 2.3%
Total 5.7% $54,787,250 $40,241,294 2.4% 250,000 Merrill Lynch 1,6% $14,812,500 59,25 65,98 $16,495,587 1,1%
Utilities 150,000 MGIC Invt Corp, 1,1% $10,896,000 72.64 57.23 $8,584,060 0.1%
400,000 Duke Energy 1.6% $15,604,000 39,01 18,16 $7,262,535 2,8% 1,500,000 Sovereign Bancorp 2,0% $19,500,000 13,00 9,00 $13,484,985 0.8%
200,000 Exelon Corp, 1.3% $12,824,000 64,12 56,68 $11,336,247 2,6% 450,000 Wells Fargo 2,2% $20,893,500 46.43 39,85 $17,932,074 2,1%
Total 3,0% $28,428,000 $18,598,782 2,7% Total 22,7% $216,752,250 $166,780,972 1,2%
Communication Services
600,000 AT & T Corp, 1.4% $13,200,000 22.00 22.42 $13,449,592 0.7% Basic Materials
300,000 SBC Comm 1,2% $12,018,000 40,06 42,76 $12,826,995 2,6% 650,000 International Paper 2.4% $23,205,000 35,70 36,52 $23,738,511 2.8%
400,000 Verizon 2,2% $21,400,000 53,50 49,57 $19,827,133 2,9% Total 2,4% $23,205,000 $23,738,511 2,8%
1,050,000 Worldcom Inc 1,6% $14,910,000 14,20 19,95 $20,943,498 0,0%
135,000 Worldcom GA MCI 0.2% $2,173,500 16.10 17,21 $2,323,856 14,9%
Total 6.6% $63,701,500 $67,271,074 2,1% TOTAL EQUITIES $954,754,367 $804,176,061
II TRUSCO CAPITAL MANAGEMENT
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STATEMENT OF ASSETS Page 1 of 5
SunTrust US Limited Capitalization
11099005122000 40100036
June 30 2002
SHARES/ SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
'Cash and Equivalents
CASH 0,000 2,054,154.43 0,000 2,054,154.43 3,77%
'Cash and Equivalents 2,054,154.43 2,054,154.43 3,77%
Consumer Discretionary
80,428 CHARMING SHOPPES 7,500 07/15/06 6,870 552,540,36 -0,000 -0,00 -0.00%
31,200 ABERCROMBIE & FITCH CO - CLASS A 27,615 861,595,70 24.120 752,544,00 1,38%
10,200 AMERICAN EAGLE OUTFITTERS 24,028 245,089,20 21,140 215,628,00 0.40%
5,900 BRINKER INTERNATIONAL INC 23,054 136.021,54 31,750 187,325,00 0,34%
23,000 CBRL GROUP INC 29,055 668,254.95 30.430 699,890,00 1,28%
4,300 CHEESECAKE FACTORY (THE) 22,833 98,179,75 35.480 152,564,00 0,28%
1,500 COLUMBIA SPORTSWEAR COMPANY 33,311 49,966,05 31,999 47,998,50 0,09%
26,450 DARDEN REST, 21,121 558,657,78 24,700 653,315,00 1,20%
250,000 DR HORTON INC 05/11/21 52.478 131,195,00 72.625 181,562,50 0,33%
27,700 ELECTRONICS BOUTIQUE HLDGS 29.918 828,734,93 29,300 811,610,00 1.49%
18,400 EMMIS COMMUNICATIONS CLASS A 26,311 484,115,18 21,190 389,896,00 0,71%
5,900 ENTERCOM COMMUNICATIONS CORP 49,626 292,794,17 45,900 270,810,00 0,50%
12,100 GTECH HOLDINGS CORP 28,622 346,328.70 25,540 309,034,00 0,57%
23,000 HISPANIC BROADCASTING CORP 19,192 441,424,51 26,100 600,300,00 1,10%
215,000 LENNAR CORP 04/04/21 36.346 78,143,90 47,625 102,393,75 0,19%
9,600 MOHAWK INDUSTRIES INC 55,582 533,586,27 61,530 590,688,00 1,08%
27,400 RADIO ONE INC CLASS 0 19,984 547,565,55 14,870 407,438,00 0,75%
44,550 REX STORES CORPORATION 12,870 573,337,67 13,810 615,235,50 1.13%
30,500 SIX FLAGS INC 20.744 632,698,48 14.450 440,725,00 0,81%
7,900 SUPERIOR INDUSTRIES INTL 45,579 360,074,54 46,250 365,375,00 0,67%
25,000 TOO INC 28,513 712,818,29 30,800 770,000.00 1.41%
13,500 UL TIMATE ELECTRONICS INC 26,186 353,515,86 25,910 349,785,00 0,64%
Consumer Discretionary 9,486,638.37 8,914,117,25 16,34%
Consumer Staples
27,600 DEAN FOODS CO 25,253 696,977.63 37,300 1,029,480,00 1,89%
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STATEMENT OF ASSETS Page 2 of 5
Sun Trust US Limited Capitalization
11099005122000 40100036
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Consumer Staples - cont.
33,800 SENSIENT TECHNOLOGIES CORP 18.424 622,723.13 22,760 769,288.00 1.41%
Consumer Staples 1,319,700,76 1,798,768,00 3,30%
Energy
12,700 CAL DIVE INTERNATIONAL INC 22,251 282,591,75 22.000 279.400,00 0,51%
8.400 COOPER CAMERON CORP 53,626 450,461,16 48.420 406,728,00 0,75%
16,000 ENSCO INTERNATIONAL 25,316 405,048,10 27,260 436,160,00 0,80%
19,100 EQUITABLE RESOURCES INC 28,154 537,736,82 34,300 655,130,00 1,20%
6,900 EVERGREEN RESOURCES 41,569 286,825,11 42,500 293,250,00 0,54%
13,700 OCEAN ENERGY INC. 15,680 214,815,62 21,670 296,879,00 0,54%
9,300 PRIDE INTERNATIONAL INC 27,681 257.436,09 15,660 145,638,00 0,27%
2,000 SMITH INTERNATIONAL INC 69.969 139,937.60 68,190 136,380,00 0,25%
6.400 SPINNAKER EXPORATION CO 29,250 187,200.00 36.020 230,528,00 0.42%
2,400 TOM BROWN INC 23,801 57,121.44 28,350 68,040,00 0,12%
23,700 VARCO INTERNATIONAL 19,291 457,192,79 17,540 415,698,00 0,76%
Energy 3,276,366.48 3.363,831,00 6,17%
Financials
14,300 AMERICREDIT CORP 27,151 388,258,00 28,050 401,115,00 0,74%
12,300 EVEREST RE GROUP 64,896 798,226,54 55,950 688,185.00 1.26%
46.800 HIBERNIA CORP 9,929 464,666,17 19,790 926,172.00 1,70%
9,512 HUDSON UNITED BANCORP 22,582 214,800,56 28,560 271,662.72 0,50%
5,000 INVESTORS FINANCIAL SERVICES CP 33,854 169,268,50 33,540 167,700,00 0,31%
8,400 M & T BANK CORPORATION 69,597 584,611,23 85,760 720,384,00 1,32%
31,000 MARSHALL & ILSLEY CORP 24,847 770,259,97 30.930 958,830,00 1,76%
24,400 NATIONAL COMMERCE FINANCIAL CORP 26,009 634,619,78 26,300 641,720,00 1,18%
10,300 NEW YORK COMMUNITY BANCORP 26,668 274,683,88 27,100 279,130,00 0,51%
24,600 NORTH FORK BANCORP INC N Y 16,870 415,001,00 39,810 979,326,00 1,80%
46,600 SOUTHTRUST CORP 12,885 600.433.48 26,120 1,217,192,00 2,23%
40,500 SOVEREIGN BANCORP INC, 9,172 371.449,57 14,950 605,475,00 1,11%
4,000 TCF FINANCIAL CORP 45.452 181,807.58 49,100 196.400,00 0,36%
Financials 5,868,086,26 8,053,291,72 14,76%
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STATEMENT OF ASSETS Page 3 of 5
SunTrust US Limited Capitalization
11099005122000 40100036
June 30 2002
SHARES/ SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Health Care
10,400 HEALTH NET INC 28,554 296,959,80 26.770 278,408,00 0,51%
180,000 AMERISOURCE HEALTH CORP 5,000 12/01/07 152.460 277,791,39 160,250 288,450,00 0,53%
29,200 ADVANCEPS 29,221 853,254,92 23,940 699,048,00 1,28%
3,500 AFFYMETRIX INC 26,945 94,305.75 23.990 83,965.00 0,15%
5,200 ALBANY MOLECULAR RESEARCH 25,355 131,843,53 21.140 109,928,00 0,20%
9,800 BARR LABORATORIES INC 55,521 544,103,28 63,530 622,594,00 1,14%
26,300 CAREMARK RX INC 17,343 456.108,41 16,500 433,950,00 0,80%
8,500 CEPHALON INC 59.529 505,997,52 45,200 384,200,00 0,70%
340,000 GILEAD SCIENCES 5,000 12/15/07 147,511 507,228,51 153,250 521,050,00 0,96%
13,400 HEALTH MANAGEMENT ASSOCIATION 14.778 198,028,29 20,150 270,010,00 0,50%
10,600 IDEC PHARMACEUTICALS CORP 56,315 596,943,76 35.450 375,770,00 0.69%
29,800 IMPAX LABORATORIES 6,877 204,943,54 7,490 223,202,00 0.41%
34,145 KING PHARMACEUTICALS INC 29.151 995,352.28 22,250 759,726,29 1,39%
8,400 lIFEPOINT HOSPITALS INC 36,616 307,575.00 36,310 305,004,00 0,56%
12,300 MYLAN LABORATORIES 30.507 375.233,78 31,350 385,605,00 0,71%
19,200 PROVINCE HEAL THCARE CO 19,132 367,343,08 22,360 429,312,00 0,79%
8,100 QUEST DIAGNOSTICS INC 70,043 567,352,34 86,050 697,005,00 1,28%
29,100 RENAL CARE GROUP INC 18,879 549,383,81 31,150 906,465,00 1,66%
4,700 UNIVERSAL HEALTH SERVICES B 40,063 188,294.06 49.000 230,300,00 0.42%
Health Care 8,018,043,05 8,003,992,29 14.67%
Industrials
13,500 APOLLO GROUP INC-CL A 25,170 339,798,85 39,420 532,170,00 0,98%
30,800 CASELLA WASTE SYSTEMS INC - A 11,047 340,241.44 12,010 369,908.00 0.68%
12,300 DST SYSTEMS INC 47,130 579,700.43 45,710 562,233.00 1,03%
11,600 EDUCATION MANAGEMENT CORP 40,446 469,176,60 40,730 472,468,00 0,87%
4,100 EXPEDIA INC -CL A 74,874 306,984,22 59,290 243,089,00 0.45%
7,400 EXPEDITORS INTL WASH INC 23,210 171,754,00 33,160 245,384,00 0.45%
18,200 FLOUR CORP 40,026 728,474,86 38,950 708,890,00 1,30%
39,737 HEARTLAND EXPRESS INC 19,818 787,511,03 23,930 950.906.41 1.74%
4,300 HOTELS,COM-CL A 55,847 240,141,86 42,230 181,589,00 0,33%
11,100 HUNTTRANSPRTSVCSINC 26,788 297,347,90 29,520 327,672.00 0,60%
20,600 JACOBS ENGINEERING GROUP INC 31,996 659,124.19 34,780 716,468,00 1.31%
10,600 L-3 COMMUNICATIONS CORP, 54,310 575,688,99 54,000 572,400,00 1,05%
27,700 REPUBLIC SERVICES GROUP 20.786 575,760,82 19,070 528,239,00 0,97%
~- _.~,,->'- -- -~~'---"-- ...'""-"'.......~ - -~--- -'---'--~- --~,.-..- -- -_.......=--.. -------
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STATEMENT OF ASSETS Page 4 of 5
SunTrust US limited Capitalization
11099005122000 40100036
June 30 2002
SHARES! SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Industrials - cont,
4,300 SPX CORP 109,013 468,756,86 117,500 505,250,00 0,93%
Industrials 6,540,462,05 6,916,666.41 12,68%
Information Technology
4,500 ACTEL CORP 22,671 102,021,07 21,020 94,590,00 0,17%
14,200 ACTlVISION INC 30,128 427,822,48 29,060 412,652,00 0,76%
26,800 ACXIOM CORP 16,030 429,600,50 17.4 90 468,732,00 0,86%
10,800 AFFILIATED COMPUTER SVCS-A 50,003 540,030,39 47.480 512,784,00 0,94%
17,900 CADENCE DESIGN SYS INC 20,134 360,396,36 16,120 288,548,00 0,53%
5,400 CERNER CORP 43,731 236,149,24 47,830 , 258,282,00 0.47%
94,700 CONCURRENT COMPUTER CORP 6,889 652,435,25 4,650 :440,355,00 0,81%
8,900 ELECTRONIC ARTS INC 51,425 457,684,73 66,050 587,845,00 1.08%
38,200 ESS TECHNOLOGY 16,567 632,858,05 17,540 670,028,00 1,23%
10,200 FAIRCHILD SEMI COM INTL -CL A 24,684 251,775,80 24,300 247,860,00 0.45%
30,000 INTEGRATED CIRCUIT SYSTEMS 17,251 517,529,32 20.190 605,700,00 1,11%
15,000 INTEGRATED DEFENSE TECHNOLOGIES 22,000 330,000,00 29,430 441,450,00 0,81%
18,000 INTERSIL HOLDING CORP 28,851 519,320,17 21,380 384,840,00 0,71%
7,400 INTUIT INC, 46.249 342,245,25 49,720 367,928,00 0,67%
23,400 KOPIN CORP 10.354 242,291,63 6,600 154,440,00 0.28%
5,600 LAM RESEARCH CORPORATION 22,993 128,761.36 17,980 100,688,00 0,18%
14,250 MICROCHIP TECHNOLOGY INC 28.256 402,646,79 27,430 390,877,50 0,72%
10,400 MIDWAY GAMES INC 13,219 137,474,48 8,500 88,400,00 0.16%
14,300 NETWORKS ASSOCIATES INC 16,088 230,056,66 19,270 275,561,00 0,51%
32,100 POWERWAVE TECHNOLOGIES INC 15.649 502,347.33 9,160 294,036,00 0,54%
5.700 OLOGIC CORP 34,689 197,730.00 38,100 217,170,00 0.40%
16,400 RETEKINC 24,195 396,797,11 24,300 398,520,00 0,73%
10,800 SEMTECH CORP 33,373 360,430,36 26,700 288,360,00 0,53%
9,900 SUNGUARD DATA SYSTEMS 31,947 316,278.77 26.480 262,152,00 0.48%
7,300 SYMANTEC CORP 36,054 263,194,22 32,850 239,805,00 0.44%
11 ,200 THO INC 31,904 357,328,96 29,820 333,984,00 0,61%
12,300 UTSTARCOM INC 25,943 319,097,88 20.170 248,091,00 0.45%
30,075 ZORAN CORP 22,877 688,018,65 22,910 689,018,25 1,26%
Information Technology 10,342,322,80 9,762,696,75 17,90%
Materials
18,400 AIRGAS INC 16,831 309,697,24 17,300 318,320,00 0,58%
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STATEMENT OF ASSETS Page 5 of 5
SunTrust US limited Capitalization 40100036
11099005122000
June 30 2002
SHARESI SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Materials - cont.
9,600 80W....,TER INC 51,563 495,002,74 54,370 521.952,00 0,96%
49,900 CROMPTON CORPORATION 9,902 494,085,64 12,750 636.225,00 1,17%
25,000 FULLER H B CO 22,226 555,652,64 29,290 732,250,00 1,34%
11,000 PRAXAIR INC 37,599 413,593,09 56,970 626,670,00 1,15%
25,200 RPM INCIOHIO 15,388 387,773.15 15,250 384,300,00 0,70%
31,800 STILLWATER MINING COMPANY 26.433 840,579,74 16,280 517,704,00 0,95%
12,900 UNITED STATES STEEL CORP 15,825 204,138,64 19,890 256,581,00 0.47%
Materials 3,700,522,87 3,994,002,00 7,32%
Services
13,800 COP ART INC 16.363 225,812,83 16,230 223,974,00 0.41%
41,100 PITTSTON BRINK'S GROUP 16.319 670,703,50 24,000 986,400,00 1,81%
Services 896,516,33 1,210,374,00 2,22%
Telecommuincalion Services
16,000 CENTURY TELEPHONE ENTERPRISE 29,359 469,740,64. 29,500 472,000,00 0,87%
Telecommuincation Services 469,740,64 472,000,00 0,87%
51,972,554,05 54,543,893,85 100,00%
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Account: 4175 Created: 26-Jul-02 11:44 AM
STlINT'L EQUITY FUND
June 28, 2002
Security Description Shares I Par Price (USD) Market Value (USD) % Market
0015402 KIDDE PLC 708,495,0000 1,310898 928,764,69 0,354%
0040374 SIGNET GROUP PLC 763,336,0000 1.444274 1,102,466,54 0,420%
0041838 POWDERJECT 171,445.0000 6,402060 1,097,601.19 0,418%
0056650 BHP BILLlTON PLC, 295,988,0000 5.449373 1,612.948,89 0.614%
0096162 BICC PLC 546,841,0000 3,566862 1,950,506.41 0,743%
0145279 NORTHERN ROCK 339,559,0000 10,388105 3,527,374.42 1,343%
0164199 EASY JET PLC 136.290,0000 5.243592 714,649,16 0,272%
0237400 DIAGEO . NEW 174,989,0000 12,987036 2,272,588.47 0,865%
0287580 BRITISH AMERICAN TOBACCO 197,895.0000 10,746315 2,126,642,03 0,810%
0343006 COBHAM PLC 46,673,0000 15,601211 728.155,31 0,277%
0385785 MISYS 47,751,0000 3,688806 176,144,18 0,067%
0709954 PRUDENTIAL CORP 255,212,0000 9,145800 2,334,117,94 0,889%
0719210 VODAFONE GROUP PLC 2,080,572,0000 1,371870 2,854,274,34 1,087%
0724076 RANK GROUP 71,009,0000 4.077503 289,539,39 0,110%
0729457 ALLIED DOMECQ PLC 163,200,0000 6.558301 1.070.314,69 0.408%
0730835 REED ELSEVIER PLC 115,022.0000 9,504011 1,093.170,31 0.416%
0732712 RENTOKIL GROUP 431,518,0000 4,069881 1,756,226.93 0,669%
0736015 GAME GROUP PLC 380,491,0000 1,867268 710,478.49 0,271%
0754783 ROYAL BANK OF SCOTLAND 164.841,0000 28,351980 4,673.568,79 1,780%
0798059 BP AMOCO 960,367,0000 8,398893 8,066,019,77 3,072%
0803414 SHELL TRANS & TRADING 595,712,0000 7,545285 4,494,816.87 1,712%
0812357 SKYEPHARMA PLC 1,614,437.0000 0.967931 1.562.662,84 0,595%
0870612 LLOYDS TSB GROUP 232,827.0000 9,953679 2,317,485,25 0.883%
0884709 TESCO 558,924,0000 3,635456 2,031,943.35 0.774%
0925288 GLAXOSMITHKLlNE PLC 180,101,0000 21,614574 3,892,806.44 1.482%
0963590 P&O PRINCESS CRUISES PLC 203,972,0000 6.325845 1,290,295,27 0.491%
0971344 WIMPEY(GEORGE) 202,599,0000 4,085124 827.642,05 0.315%
0989529 ASTRAZENECA 46,692,0000 41,399988 1,933,048,26 0,736%
3058750 HBOS PLC 274,055,0000 10.822530 2,965,968.49 1.129%
3060625 BANK OF IRELAND (EUR) 2,0000 12.453636 24.91 0,000%
3091357 BT GROUP PLC 490.218,0000 3,841236 1.883,043.05 0,717%
3119248 LONMIN PLC 47,685.0000 17.529450 835,891,83 0,318%
3127489 MARKS & SPENCER GROUP NEW 344,245,0000 5,681828 1,955,940,99 0.745%
3134865 BARCLAYS 226,370,0000 8.414136 1,904,707.99 0,725%
3160484 EASY JET PLC NIL PAID RTS 49,560,0000 1.219440 60,435.45 0.023%
4076836 INTESABCI SPA 972,357,0000 3,051684 2.967,326,30 1,130%
4280132 DRAKA HOLDING 15,071,0000 23,702400 357,218.87 0,136%
4325419 BAYER VEREINSBK 32,300,0000 32.492040 1.049,492,89 0.400%
4441155 IHC CALAND NV NTFL2 47,589,0000 59.799180 2,845,783,18 1,084%
4502706 LAFARGE SA 42,205,0000 99,747600 4,209,847.46 1,603%
4588825 DANSKE BANK AlS 56.800,0000 18.412901 1,045,852.78 0,398%
464287465 ISHARES MSCI EAFE INDEX 74,000,0000 118,550000 8,772,700,00 3.341%
4732495 Telenor ASA 174,400.0000 3,544634 618,184,24 0,235%
4736817 AVENTIS (FRANCE) 35,877.0000 70,860300 2,542,254,98 0,968%
4768768 SAIPEM 411,381,0000 7,189728 2,957,717,50 1,126%
Page 1 of 4
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4834777 VIVENDI UNIVERSAL 31,987,0000 21,608688 691,197,10 0,263%
4846288 SAP 14,200.0000 98,760000 1,402,392,00 0,534%
4874160 TECHNIP-COFLEXIP S,A 20,429,0000 105.278160 2,150,727,53 0,819%
4905413 TOTAL FINA ELF 28,541,0000 162,361440 4,633,957.86 1,765%
4913223 UNION FENOSA SA 67,048.0000 18,369360 1,231,628,85 0.469%
5048566 SWEDISH MATCH 28,200,0000 8,269409 233,197.32 0,089%
5069211 BAYER 23,700,0000 31.701960 751,336.45 0.286%
5086577 BASF AG 40,500,0000 46,367820 1,877,896,71 0,715%
5183359 NUTRECO HOLDING 28,434,0000 34,052448 968,247,31 0,369%
5184716 UNIQUE INTL NV 143,996.0000 19,850760 2,858,430,04 1,089%
5231485 ALLlANZ AG-REG 8,900,0000 200,285280 1,782,538,99 0.679%
5247374 AUTOLlV INC, 65,600.0000 24,372994 2,086,326,27 O.795Oio
5250769 ABN AMRO HLDGS 122,013,0000 18,161964 2,215,995,71 0,844%
5297506 TELECOM ITALlA SPPA 229,727,0000 7,831668 1,799,145,60 0,685%
5330047 DASSAULT SYSTEMS 18,721,0000 45,676500 855,109,76 0,326%
5444012 AL TADIS 59,686.0000 20,640840 1,231,969.18 0.469%
5458314 AKZO N08EL 47,174,0000 43,543284 2,054,110,88 0,782%
5479702 TIETO CORP B SHRS 66,020,0000 24,690000 1,630,033,80 0,621%
5695188 STINNES AG 20,453,0000 28,837920 589,821,98 0,225%
5705946 BANCO SANT. CENT, HISP, 135,218,0000 7,940304 1,073,672,03 0.409%
5727973 SIEMENS AG 50,100,0000 59,996700 3,005,834,67 1,145%
5729065 AGUAS DE BARCElONA 46,536,0000 11,772192 547,830,73 0.209%
5732524 TELEFONICA 264,724,0000 8,394600 2,222,252,09 0.846%
5733486 BUDERUS AG 51,767,0,000 22,616040 1,170,764,54 0.446%
5738298 SOL MELIA 234,569,0000 7,594644 1,781,468,05 0.678%
5750355 DEUTSCHE BK -REG 41,100,0000 69.477660 2,855,531,83 1.087%
5756029 BAYERISCHE MOTOREN WERKE 54,300,0000 41,232300 2,238,913,89 0.853%
5842359 DEUTSCHE TELEKOM 88,200,0000 9.401952 829,252,17 0,316%
5902941 NOKIA OYJ INOKlV,HE 172,600,0000 14,636232 2,526,213,64 0,962%
5959378 ERICSSON LM-B 423,500,0000 1,512431 640,514,66 0,244%
5962332 STMICROELECTRONI 32,800,0000 24,936900 817,930,32 0,311%
5963108 SANDVIK AB 93,000,0000 24,971438 2,322,343,72 0,884%
5975006 ALCATEl A 40,271,0000 6.952704 279,992.34 0,107%
5986622 PHILIPS ELECTRONICS NV 65,821,0000 27,919452 1,837,686,25 0,700%
5988930 THOMSON MUL TIMED 86,985,0000 23.653020 2,057,457,95 0,784%
6019419 AIFUL CORPORATION 12,100,0000 65,576506 793,475,72 0,302%
6030506 HANG LUNG PROPERTIES 638,000,0000 1,141026 727,974,36 0,277%
6055208 ASAHI GLASS 70,000.0000 6,399132 447,939,26 0,171%
6065586 AUST & NZ BANK 145,076,0000 10.829406 1,571,086.91 0,598%
6066608 AMCOR LIMITED 392,282.0000 4,625936 1,814,671,43 0,691%
6087289 TELSTRA CORPORATION 152,357.0000 2.616124 398,584,80 0,152%
6144690 BHP BILlITON LIMITED 82,306,0000 5,782420 475,927,86 0,181%
6172323 CANON INC, 73,100.0000 37,794093 2,762,748,21 1,052%
6187071 CHALLENGER INTL 718,085.0000 1,560692 1,120,709,52 0.427%
6195609 CHUBU ELEC POWER 125,300.0000 17,562156 2,200,538,13 0,838%
6209908 COLES MYER 109,598,0000 3,722082 407,932,74 0.155%
6290571 SKY PERFECT COMMUNICATION 442,0000 984.481896 435,141,00 0,166%
6307200 EISAI CO, L TO 34,800,0000 25,696646 894,243,28 0.341%
6321642 ESPRIT HOLDING 512,000.0000 1,916667 981,333,33 0,374%
6335171 MITSUBISHI TOKYO FINANCE 296,0000 6,741,198064 1,995,394,63 0.760%
6335223 UFJ HOLDINGS INC, 337,0000 2,419.489404 815,367.93 0.311%
6356525 FUJI PHOTO FILM CO 54,000,0000 32,287669 1,743,534,12 0.664%
6356934 FANUC LTD 20,400,0000 50,225263 1,024,595,36 0.390%
Page 2 of 4
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6357733 FUTABA CORPORATION 40,700,0000 29.200734 ' 1,188,469,88 0,453%
6429104 HITACHI 223,000.0000 6.465877 1,441,890,54 0.549%
6435145 HONDA MOTOR 54,900,0000 40,547305 2,226,047,05 0,848%
6435327 HONG KONG ELEC HLDGS 286,500,0000 3,737179 1,070,701.92 0.408%
6448068 HUTCHISON WHAMPOA 136,700,0000 7.467949 1,020,868,59 0,389%
6451055 HYUNDAI MOTOR CO L TO 25,460,0000 30,049875 765,069,83 0,291%
6467803 ITOCHU CORP 138,000,0000 3,504088 483,564,16 0.184%
6475497 JAPAN TELECOM 368,0000 2,861.671951 1,053,095,28 0.401 %
6483809 KAO CORPORATION 119,000,0000 23,026865 2,740,196,90 1,044%
6490263 KEPPEL 900,100,0000 2,331899 2,098,942,72 0,799%
6496454 HANA BANK 59,190,0000 14,297589 846,274,31 0,322%
6513126 M!LLEA HOLDINGS INC 49,0000 6,209.57784 i 402,269,31 O.153t'/o
6550167 MIM HOLDINGS 1,039,690,0000 0,729820 758,786,56 0,289%
6572707 MATSUSHITA ELECTRIC 95,000,0000 13,640914 1,295,886,87 0,493%
6597067 MITSUBISHI HEAVY INDUS 330,000,0000 3,028533 999,415,99 0,381%
6597302 MITSUI & CO L TO 191,000,0000 6,691140 1,278,007,68 0,487%
6597368 MITSUI CHEMICAL 110,000.0000 4,997497 549,724,68 0,209%
6597603 MITSUI REAL ESTATE 119,000,0000 8,843651 1,052,394.46 0.401 %
6624608 NATL AUSTRALIA BANK 115,008,0000 19,873560 2,285,618,39 0,870%
6640381 DENSO CORP 59,100,0000 15,626564 923,529.95 0,352%
6640466 NKK CORPORATION 1,355,000,0000 0,967796 1,311,363,26 0.499%
6641373 NTT CORP 422,0000 4,113,131987 1,735,741,70 0,661%
6641801 NITTO DENKO CORP 50,800,0000 32,788253 1,665,643,25 0,634%
6642406 MINEBEA 189,000,0000 5,873519 1,110,095,11 0.423%
6642860 NISSAN MOTORS 169,000,0000 6,924746 1,170,282,00 0.446%
6643108 NOMURA SECURITIES 60,000,0000 14.683798 881,027.87 0,336%
6658801 OL YMPUS OPTICAL 100,000,0000 13,966294 1,396,629.40 0,532%
6738220 RICOH 134,000,0000 17.311864 2,319,789,75 0,883%
6771720 SAMSUNG ELECTRONIC 2,430,0000 273.482959 664,563.59 0,253%
6821506 SONY CORPORATION 47,400,0000 52,811614 2,503,270.48 0,953%
6858526 SUMITOMO MITSUI BANKING 353,000,0000 4,880694 1,722,885,03 0,656%
6858560 SUMITOMO CHEMICAL CO, 641,000,0000 4.546971 2,914,608,71 1,110%
6870100 TAISEI CORP, 300,000,0000 2,302686 690,805,94 0,263%
6870445 TAKEDA CHEMICAL 38,000,0000 43,884532 1,667,612,21 0,635%
6873262 T ABCORP HLDGS L TO 179,302,0000 7,017500 1,258,251,79 0.479%
6886925 NEWSCORP 125,367,0000 5.434352 681,288.41 0,259%
6895675 TOKYO ELECTRON 8,600,0000 65.159353 560,370.43 0,213%
6897217 TOSHIBA CORP 310,000,0000 4,071417 1,262,139,16 0.481%
6900643 TOYOTA MOTOR CORP 50,400,0000 26,530953 1,337,160,02 0,509%
6957995 WEST JAPAN RAILWAY 113,0000 4,038,044385 456,299,02 0.174%
6985026 YAMADA DENKI 12,300,0000 87,602203 1,077,507,09 0.410%
6986063 SOMPO JAPAN INSURANCE INC 90,000,0000 6,123811 551,143,00 0,210%
7070396 NORSKE SKOG, ASA - A 67,600,0000 18,655971 1,261,143,61 0.480%
7103065 NOVARTIS, REGISTERED 133,252,0000 43.976349 5,859,936.44 2,232%
7103526 PEUGEOT 24,883,0000 51,898380 1,291,387,39 0.492%
7118047 L YONNAISE DES EAUX 63,891,0000 26.665200 1,703,666,29 0,649%
7123870 NESTLE SA 16,317,0000 233,151918 3,804,339,85 1.449%
7126114 UBS AG - REGISTERED 45,100,0000 50,292280 2,268,181.82 0,864%
7128369 PARMALAT FINANZ 959,440,0000 3,091188 2,965,809.42 1,129%
7145056 ENISPA 167,550,0000 15,900360 2,664,105,32 1,015%
7154182 ING GROUP 87,192,0000 25.677600 2,238,881,30 0,853%
7171589 CREDIT SUISSE, REG 70,684.0000 31.747632 2,244,049.59 0,855%
7266117 FORTIS GROUP-UNIFIED SHR 42,392,0000 21,312408 903,475.60 0,344%
Page 3 of 4
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7266139 FORTIS GROUP-UNIFIED SHR 103,900,0000 21,411168' 2,224,620,36 0,847%
7309681 BANQUE NATL PARIS A 81,718,0000 55,305600 4,519,463.02 1,721%
7380482 CIE DE ST GOBAIN 52,708,0000 44,886420 2,365,873.43 0,901%
874039100 TAIWAN SEMI 45,100,0000 13,000000 586,300,00 0,223%
Total 262,592,031,72 100,000%
Page 4 of 4
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STATEMENT OF ASSETS Page 1 of 3
SunTrust Hit Grade Bond Fund
1109900 117210 20100056
June 30 2002
SHARES/ SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
.Cash and Equivalents
CASH 0,000 23,267,228,26 0,000 23,267,228,26 7,66%
.Cash and Equivalents 23,267,228,26 23,267,228,26 7,66%
Asset Back Securities
6,525,000 GECMC 2002-1A A3 6,269 12/10/35 100,495 6,576,630,11 104,062 6,790,033,10 2,24%
1,650,000 GMACC 2002-C2 A3 5,713 06/15/12 100.499 1,665,046.44 100.499 1,658,238.45 0.55%
Asset Back Securities 8,241,676.56 8,448,271,55 2,78%
Financials
4,500,000 AON CORPORATION 6,900 07/01/04 99,870 4,494,150,00 105,378 4,741,996,50 1,56%
2,800,000 BOEING CAPITAL CORP 5,650 05/15/06 99,093 2,780,624,89 103,254 2,891,106.40 0,95%
6,300,000 COMPUTER SCIENCES CORP 7,50 08/08/05 7,500 08/08/05 99,721 6,282,423,00 108,919 6,861,865,50 2,26%
1,600,000 DUKE ENERGY 6,250 01/15/12 98.388 1,594,763.56 101,974 1,631,584,00 0,54%
6,550,000 GOLDMAN SACHS 6.600 01/15/12 100,906 6,616,822,00 101,861 6,671,875,85 2.20%
2,750,000 HOUSEHOLD FIN CO 5,750 01/30/07 99,036 2,723,476,25 98,914 2,720,132,25 0.90%
6,500,000 INTERNATIONAL LEASE FINANCE CORP 5,950 06/06/05 100.000 6,500,000,00 103,935 6,755,788,00 2,22%
3,000,000 JP MORGAN CHASE 5,350 03/01/07 99,880 2,996,400,00 101,241 3,037,221,00 1,00%
6,400,000 MERRILL LYNCH 5.350 06/15/04 103.000 6,647,164,44 102,891 6,584,998.40 2,17%
3,000,000 MORGAN STANLEY DEAN WITTER 6,750 04/15/11 100,313 3,019,515,00 102,869 3,086,067,00 1,02%
2,650,000 MORGAN STANLEY DEAN WITTER 7,250 04/01/32 99,903 2,647,429,50 101,922 2,700,940,95 0,89%
5,750,000 SALOMON SMITH BARNEY HLD 6,500 02/15/08 102,503 5,975,691,66 106,873 6,145,203,25 2,02%
3,325,000 TEXACO CAPITAL INC 5,500 01/15/09 98.499 3,310,740,33 101,967 3,390,392,78 1,12%
2,500,000 W ACHOVIA CORP 6,800 06/01/05 105.814 2,685,488,89 108,291 2,707,277,50 0,89%
3,000,000 DLJ 6,150 05/04/04 99,920 2,997,600,00 104,586 3,137,574,00 1,03%
6,750,000 COUNTRYWIDE HOME 6,510 02/11/05 99,789 6,735,757,50 105,633 7,130,247,75 2,35%
Financials 68,008,047,02 70,194,271,13 23,11 %
Industrials
5,200,000 CARDINAL HEALTH INC 6,750 02/15/11 103,056 5,410,587,00 106,992 5,563,604,80 1.83%
3,500,000 COCA-COLA 8,500 02/01/22 114,168 4,076,290,33 120.455 4,215,914,50 1,39%
2,800,000 COCA COLA ENTERPRISES 5,375 08/15/06 99,589 2,788,492,00 102,909 2,881,449,20 0,95%
4,250,000 WALT DISNEY COMPANY 5,500 12/29/06 99.770 4,240,225,00 101,246 4,302,942,25 1.42%
,.
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STATEMENT OF ASSETS Page 2 of 3
SunTrust Hi~h Grade Bond Fund
11 09900 117210 20100056
June 30 2002
SHARESI SECURITY UNIT TOTAL LAST MARKET PERCENT
PAR VAL DESCRIPTION COST COST PRICE VALUE ASSETS
Industrials - cont,
8,600,000 GENERAL ELECTRIC CAP 6,750 03/15/32 98.463 8,471,542,50 98,227 8,447,547,80 2,78%
3,175,000 VIACOM INC 5,625 05/01/07 99,913 3,172,227,75 102,384 3,250,692,00 1,07%
5.000,000 PHILIP MORRIS 7,500 04/01/04 99,527 4,982,600.00 106,589 5,329,435,00 1,75%
Industrials 33,141,964,58 33,991,585,55 11 , 19%
Mortgage Back Securities
4.143,915 FGCI POOL E01127 6,500 02/01/17 102.719 4,270,045,57 103,800 4,301,367.60 1.42%
35 FNMA POOL# 303689 (04/01/17) 8,500 04/01/17 105,085 37,35 108,734 38.42 0,00%
13,843,572 GNSF POOL 570142 6,000 12/15/31 99,313 13,748,397,28 100,087 13,855,643,99 4,56%
16,326,742 GNSF POOL# 781334 8.000 08/15/31 105,289 17,281,041.92 106,504 17,388,665,04 5,73%
13,290.006 GNSF POOL 781430 8,000 04/15/32 105,750 14,136,875,19 106,504 14,154,333,05 4,66%
10,865,893 GNMA 30 YR POOL # 781289 8,500 04/15/31 104.406 11,416,506,90 107,728 11,705,640,48 3,85%
Mortgage Back Securities 60.852,904,22 61,405,688,57 20,22%
U,S, Government
8,175.000 FEDERAL HOME LOAN BANK 4,125 01/14/05 99.738 8,153,581,50 101,656 8,310,398.44 2,74%
8.775,000 FED NTL MTG ASSOC 7,125 01/15/30 111,771 9,853,895.67 111,969 9,825,257,81 3,23%
U,S, Government 18,007,477,17 18,135,656,25 5,97%
United States Treasury Bills
32.500,000 US TREASURY 7,500 11/15/16 116,972 38,648,509,42 120,344 39,111,718,75 12,88%
13,100,000 USTREASURYTNOTE"BOND 6,250 05/15/30 108,613 14,389,917,58 108,313 14,188,937,50 4,67%
12,300,000 USTREASURYTNOTE"BOND 5,750 11/15/05 106.594 13,176,375,00 106.719 13,126,406,25 4.32%
8,100,000 USTREASURYTNOTE"BOND 4,375 05/15/07 99,305 8,043,679,69 101,375 8,211,375,00 2,70%
United States Treasury Bills 74,258,481.69 74,638,437,50 24,57%
Utilities
6,550,000 VERIZON NJ INC 5,875 01/17112 99,205 6,497,927.50 93.415 6,118,708.70 2,01%
-\. -'
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-.---- --- - .
STATEMENT OF ASSETS
Sun Trust High Grade Bond Fund
11099005117210
June 30 2002
SHARES/
P AR VAL
SECURITY
DESCRIPTION
UNIT
COST
Utilities - conI.
7,500,000 WISCONSIN ENERGY
5,500
12/01/08
99,664
Utilities
TOTAL
COST
LAST
PRICE
7,474,800,00 100,375
13,972,727,50
299,750,507,00
MARKET
VALUE
7,528,110.00
13,646,818,70
303,727,957,51
PERCENT
ASSETS
100,00%
Page 3 of 3
20100056
2.48%
4.49%