N-30D 1 form.txt WACHOVIA EQUITY FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--95.1% Basic Materials--2.1% 96,577 Alcoa, Inc. $3,378,263 29,039 Bowater, Inc. 1,521,063 Total 4,899,326 Capital Goods--7.4% 27,684 Avery Dennison Corp. 1,809,703 38,701 Boeing Co. 1,650,598 315,243 General Electric Co. 9,816,667 23,134 Illinois Tool Works, Inc. 1,643,208 38,693 Parker-Hannifin Corp. 1,895,957 Total 16,816,133 Communication Services--4.7% 56,961 CenturyTel, Inc. 1,765,791 67,461 SBC Communications, Inc. 2,313,238 21,097 Telephone and Data System, Inc. 1,599,153 118,420 Verizon Communications, Inc. 5,092,060 Total 10,770,242 Consumer Cyclicals--10.2% 35,505 Family Dollar Stores, Inc. 1,278,180 96,347 Home Depot, Inc. 4,016,706 57,211 (1)Jones Apparel Group, Inc. 2,280,430 164,295 Lowe's Cos., Inc. 7,748,152 90,973 McCormick & Co., Inc. 2,388,951 48,209 Starwood Hotels & Resorts Worldwide, Inc. 1,706,117 21,250 Target Corp. 880,813 55,023 Wal-Mart Stores, Inc. 2,976,744 Total 23,276,093 Consumer Durables--0.8% 99,048 Ford Motor Co. 1,748,197 Consumer Staples--10.4% 102,863 Coca-Cola Co. 5,715,068 38,919 Harley Davidson, Inc. 2,046,361 37,125 Hershey Foods Corp. 2,477,351 26,360 Kimberly-Clark Corp. 1,711,291 61,520 McDonald's Corp. 1,841,909 98,723 Philip Morris Cos., Inc. 5,651,892 26,080 Procter & Gamble Co. 2,335,464 72,394 SYSCO Corp. 2,016,173 Total 23,795,509 Energy--7.1% 22,466 Anadarko Petroleum Corp. 1,140,150 34,358 ChevronTexaco Corp. 2,997,736 136,757 Conoco, Inc. 3,676,028 42,098 EOG Resources, Inc. 1,726,018 164,405 Exxon Mobil Corp. 6,564,692 Total 16,104,624 Finance--21.2% 82,744 AFLAC, Inc. 2,661,047 82,663 American International Group, Inc. 5,535,941 65,003 BB&T Corp. 2,442,813 49,661 Bank of America Corp. 3,764,800 141,486 Citigroup, Inc. 6,109,365 72,939 (1)Concord EFS, Inc. $2,280,803 25,582 Freddie Mac 1,676,900 81,001 FleetBoston Financial Corp. 2,854,475 37,168 Hartford Financial Services Group, Inc. 2,453,088 60,185 Honeywell International, Inc. 2,359,252 96,431 J.P. Morgan Chase & Co. 3,466,694 35,093 Loew's Corp. 2,003,810 57,417 Morgan Stanley, Dean Witter & Co. 2,610,177 63,063 RenaissanceRe Holdings Ltd. 2,333,331 68,220 Wells Fargo & Co. 3,574,728 24,284 XL Capital Ltd. 2,149,620 Total 48,276,844 Health Care--12.4% 55,015 Abbott Laboratories 2,613,212 36,918 (1)Amgen, Inc. 1,758,404 28,487 (1)Boston Scientific Corp. 793,363 73,165 Johnson & Johnson 4,488,673 71,369 (1)Lincare Holdings, Inc. 2,118,232 60,088 Medtronic, Inc. 2,773,061 82,184 Merck & Co., Inc. 4,692,706 163,762 Pfizer, Inc. 5,666,165 55,130 Schering Plough Corp. 1,458,189 25,692 (1)Tenet Healthcare Corp. 1,914,054 Total 28,276,059 Technology--16.8% 204,940 (1)AOL Time Warner, Inc. 3,832,378 117,770 (1)Altera Corp. 2,123,393 45,610 (1)Applied Materials, Inc. 1,011,630 308,583 (1)Cisco Systems, Inc. 4,869,440 104,789 (1)CommScope, Inc. 1,484,860 100,431 (1)Dell Computer Corp. 2,696,572 21,030 First Data Corp., Class 1,665,576 84,433 (1)Integrated Circuit System, Inc. 1,759,584 194,025 Intel Corp. 5,358,971 38,718 International Business Machines Corp. 3,114,863 153,167 (1)Microsoft Corp. 7,797,732 145,084 (1)Oracle Corp. 1,149,065 83,167 (1)Siebel Systems, Inc. 1,517,798 Total 38,381,862 Utilities--2.0% 28,142 Allegheny Energy, Inc. 1,011,142 111,568 Duke Energy Corp. 3,571,292 Total 4,582,434 Total Common Stocks (identified cost 216,927,323 $200,284,003) (2) U.S. Treasury Obligation - 1.5% $3,300,000 United States Treasury Bill, 6/20/2002 3,297,360 (IDENTIFIED COST $3,296,961) registered investment company --1.9% 4,413,928 Evergreen Institutional Money Market Fund (AT 4,413,928 AMORTIZED COST) Total Investments (identified cost $207,994,892) $224,638,611 ================================================================================ (See Notes to Portfolios of Investments) Shares Value -------------------------------------------------------------------------------- WACHOVIA QUANTITATIVE EQUITY FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value -------------------------------------------------------------------------------- Common Stocks--95.4% Basic Materials--2.8% 30,259 Martin Marietta Materials, Inc. $1,210,360 158,339 Potlatch Corp. 5,423,111 87,623 Praxair, Inc. 4,906,888 Total 11,540,359 Capital Goods--8.2% 364,920 (1Corning, Inc. 1,751,616 60,207 General Dynamics Corp. 6,056,824 333,641 General Electric Co. 10,389,581 86,886 (1)Lexmark International Inc., Class A 5,426,031 173,772 Tyco International Ltd. 3,814,295 97,907 United Technologies Corp. 6,742,855 Total 34,181,202 Communication Services--3.2% 430,281 Sprint Corp. 7,078,122 143,973 Verizon Communications, Inc. 6,190,839 Total 13,268,961 Consumer Cyclicals--7.9% 84,274 (1)American Eagle Outfitters, Inc. 1,870,883 138,387 General Motors Corp. 8,600,752 45,623 Home Depot, Inc. 1,902,023 31,426 Lowe's Cos., Inc. 1,482,050 326,666 TJX Cos., Inc. 6,889,386 208,525 Target Corp. 8,643,361 68,619 Wal-Mart Stores, Inc. 3,712,288 Total 33,100,743 Consumer Staples--13.4% 135,541 Anheuser-Busch Cos., Inc. 6,995,271 460,773 (1)Liberty Media Corp., Class A 5,552,315 198,231 PepsiCo, Inc. 10,304,047 238,183 Philip Morris Cos., Inc. 13,635,977 11,902 Procter & Gamble Co. 1,065,824 331,998 SUPERVALU, Inc. 10,019,700 214,806 SYSCO Corp. 5,982,347 35,474 (1USA Interactive 1,011,009 18,507 (1Viacom, Inc., Class B 906,103 26,408 Walt Disney Co. 605,007 Total 56,077,600 Energy--5.4% 279,905 Conoco, Inc. 7,523,846 185,643 Exxon Mobil Corp. 7,412,725 284,206 Marathon Oil Corp. 7,792,929 Total 22,729,500 Finance--22.0% 223,246 Ambac Financial Group, Inc. 15,037,851 95,583 American International Group, Inc. 6,401,194 65,165 Bank of America Corp. 4,940,159 121,640 Bank of New York Co., Inc. 4,415,532 20,991 Bear Stearns Cos., Inc. $1,260,510 52,131 CIGNA Corp. 5,528,493 345,445 Citigroup, Inc. 14,916,315 277,165 J.P. Morgan Chase & Co. $9,964,082 47,939 Lehman Brothers Holdings, Inc. 2,924,279 159,559 Lennar Corp. 8,731,068 30,328 PMI Group, Inc. 2,596,077 108,607 PNC Financial Services Group 6,109,144 347,543 SouthTrust Corp. 9,025,692 Total 91,850,396 Health Care--12.8% 33,800 Abbott Laboratories 1,605,500 83,018 (1)Amgen, Inc. 3,954,147 20,386 Bard (C.R.), Inc. 1,123,269 178,290 Bristol-Myers Squibb Co. 5,548,385 130,328 (1Guidant Corp. 5,213,120 130,328 Johnson & Johnson 7,995,623 81,027 Lilly (Eli) & Co. 5,242,447 82,686 Merck & Co., Inc. 4,721,371 181,934 Pfizer, Inc. 6,294,916 34,755 Pharmacia Corp. 1,501,068 277,339 Schering Plough Corp. 7,335,617 42,114 (1Tenet Healthcare Corp. 3,137,493 Total 53,672,956 Restaurants--2.0% 252,531 (1)Brinker International, Inc. 8,472,415 Technology--12.6% 43,442 (1)AOL Time Warner, Inc. 812,365 64,585 (1Advanced Micro Devices, Inc. 738,207 59,388 Autodesk, Inc. 801,738 417,052 (1)Cisco Systems, Inc. 6,581,081 111,429 (1Compuware Corp. 821,232 434,428 (1)EMC Corp. 3,149,603 29,046 Electronic Data Systems Corp. 1,534,210 289,186 Intel Corp. 7,987,317 111,214 International Business Machines Corp. 8,947,166 39,984 (1Jabil Circuit, Inc. 918,033 34,263 (1Micron Technology, Inc. 807,922 192,755 (1)Microsoft Corp. 9,813,157 24,850 (1NVIDIA Corp. 831,481 260,657 (1)Oracle Corp. 2,064,403 608,200 (1)Sun Microsystems, Inc. 4,190,498 66,903 Texas Instruments, Inc. 1,918,109 43,442 (1)VERITAS Software Corp. 984,830 Total 52,901,352 Utilities--5.1% 252,244 Duke Energy Corp. 8,074,330 39,782 El Paso Corp. 1,020,408 150,471 Tidewater, Inc. 6,131,693 119,286 Valero Energy Corp. 4,711,797 108,607 Williams Cos., Inc. (The) 1,542,217 Total 21,480,445 Total Common Stocks (identified cost 399,275,929 $272,241,008) Shares or ---------- Principal Amount Value -------------------------------------------------------------------------------- (2) U.S. Treasury Obligation--0.6% $2,500,000 United States Treasury Bill, 6/20/2002 (identified cost $2,497,697) $2,498,000 REGISTERED INVESTMENT COMPANY--3.9% 16,267,016 Evergreen Institutional Money Market Fund (at 16,267,016 amortized cost) Total Investments (identified cost $291,005,721) $418,040,945 ================================================================================ (See Notes to Portfolios of Investments) WACHOVIA GROWTH & INCOME FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--93.6% Basic Materials--2.8% 96,735 Alcoa, Inc. $3,383,790 21,710 Bowater, Inc. 1,137,170 Total 4,520,960 Capital Goods--7.1% 20,473 Avery Dennison Corp. 1,338,320 28,933 Boeing Co. 1,233,992 197,690 General Electric Co. 6,156,067 17,108 Illinois Tool Works, Inc. 1,215,181 28,927 Parker-Hannifin Corp. 1,417,423 Total 11,360,983 Communication Services--5.1% 159,433 SBC Communications, Inc. 5,466,958 34,522 Telephone and Data System, Inc. 2,616,768 Total 8,083,726 Consumer Cyclicals--10.0% 26,257 Family Dollar Stores, Inc. 945,252 69,982 Ford Motor Co. 1,235,182 72,457 Home Depot, Inc. 3,020,732 42,771 (1Jones Apparel Group, Inc. 1,704,852 84,346 Lowe's Cos., Inc. 3,977,757 68,011 McCormick & Co., Inc. 1,785,969 32,000 Starwood Hotels & Resorts Worldwide, Inc. 1,132,480 15,887 Target Corp. 658,516 29,267 Wal-Mart Stores, Inc. 1,583,345 Total 16,044,085 Consumer Staples--10.3% 76,119 Coca-Cola Co. 4,229,172 19,453 Harley Davidson, Inc. 1,022,839 27,754 Hershey Foods Corp. 1,852,024 19,400 Kimberly-Clark Corp. 1,259,448 62,527 McDonald's Corp. 1,872,058 51,403 Philip Morris Cos., Inc. 2,942,822 19,287 Procter & Gamble Co. 1,727,151 54,732 SYSCO Corp. 1,524,286 Total 16,429,800 Energy--6.6% 16,198 Anadarko Petroleum Corp. 822,049 10,031 ChevronTexaco Corp. 875,205 64,363 Conoco, Inc. 1,730,077 31,472 EOG Resources, Inc. 1,290,352 148,120 Exxon Mobil Corp. 5,914,432 Total 10,632,115 Finance--20.9% 60,552 AFLAC, Inc. 1,947,352 62,487 American International Group, Inc. 4,184,754 47,514 BB&T Corp. 1,785,576 25,253 Bank of America Corp. 1,914,430 105,694 Citigroup, Inc. 4,563,867 54,533 (1Concord EFS, Inc. 1,705,247 60,556 FleetBoston Financial Corp. 2,133,993 19,496 Freddie Mac 1,277,963 27,786 Hartford Financial Services Group, Inc. $1,833,876 42,043 Honeywell International, Inc. 1,648,086 30,125 J.P. Morgan Chase & Co. 1,082,994 26,235 Loews Corp. 1,498,019 61,245 Morgan Stanley, Dean Witter & Co. 2,784,198 47,145 RenaissanceRe Holdings Ltd. 1,744,365 34,580 Wells Fargo & Co. 1,811,992 18,155 XL Capital Ltd. 1,607,081 Total 33,523,793 Health Care--12.9% 61,574 Abbott Laboratories 2,924,765 21,297 (1Boston Scientific Corp. 593,121 73,743 Johnson & Johnson 4,524,133 74,605 (1Lincare Holdings, Inc. 2,214,276 52,254 Medtronic, Inc. 2,411,522 94,527 Merck & Co., Inc. 5,397,492 43,000 Pfizer, Inc. 1,487,800 15,650 (1Tenet Healthcare Corp. 1,165,925 Total 20,719,034 Technology--15.0% 60,486 (1Altera Corp. 1,090,563 34,098 (1Applied Materials, Inc. 756,294 186,650 (1Cisco Systems, Inc. 2,945,337 77,254 (1CommScope, Inc. 1,094,689 114,238 (1Dell Computer Corp. 3,067,290 15,722 First Data Corp. 1,245,182 62,246 (1Integrated Circuit System, Inc. 1,297,207 188,525 Intel Corp. 5,207,061 40,541 International Business Machines Corp. 3,261,523 79,440 (1Microsoft Corp. 4,044,290 Total 24,009,436 Utilities--2.9% 21,039 Allegheny Energy, Inc. 755,931 121,708 (1Duke Energy Corp. 3,895,873 Total 4,651,804 Total Common Stocks (identified cost 149,975,736 $120,445,758) (2) U.S. Treasury OBLIGATION -0.6% $1,000,000 United States Treasury Bill, 6/20/2002 (IDENTIFIED 999,200 COST $999,082) REGISTERED INVESTMENT COMPANY--3.9% 6,147,076 Evergreen Institutional U.S. Government Money 6,147,076 Market Fund (AT AMORTIZED COST) Total Investments (identified cost $127,591,916) $157,122,012 ================================================================================ (See Notes to Portfolios of Investments) Shares Value -------------------------------------------------------------------------------- WACHOVIA EQUITY INDEX FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--97.5% Basic Materials--3.6% 8,074 3M Co. $1,012,722 4,678 Air Products & Chemicals, Inc. 234,602 6,610 Alcan, Inc. 251,841 17,455 Alcoa, Inc. 610,576 11,039 Barrick Gold Corp. 240,650 1,087 Bemis Co., Inc. 54,241 1,196 Boise Cascade Corp. 42,554 18,573 Dow Chemical Co. 619,224 21,112 Du Pont (E.I.) de Nemours & Co. 971,152 1,588 Eastman Chemical Co. 73,445 2,633 Ecolab, Inc. 125,541 2,673 Engelhard Corp. 83,184 2,965 (1) Freeport-McMoRan Copper & Gold, Inc., Class B 58,559 4,732 Georgia-Pacific Corp. 126,297 2,095 Goodrich (B.F.) Co. 69,994 1,034 Great Lakes Chemical Corp. 26,284 2,235 (1) Hercules, Inc. 28,139 3,753 (1) Inco Ltd. 85,043 1,953 International Flavors & Fragrances, Inc. 66,519 9,926 International Paper Co. 427,811 2,152 (1) Louisiana-Pacific Corp. 22,704 4,091 Meadwestvaco Corp. 129,112 5,497 Newell Rubbermaid, Inc. 187,723 8,068 Newmont Mining Corp. 251,802 1,601 Nucor Corp. 106,739 3,476 PPG Industries, Inc. 198,758 3,281 (1) Pactiv Corp. 76,021 1,621 (1) Phelps Dodge Corp. 63,235 6,763 Placer Dome, Inc. 91,977 3,312 Praxair, Inc. 185,472 4,539 Rohm & Haas Co. 171,030 1,725 (1) Sealed Air Corp. 77,194 1,510 Sigma-Aldrich Corp. 72,042 1,090 Temple-Inland, Inc. 60,691 2,029 USX-U.S. Steel Group, Inc. 41,676 2,087 Vulcan Materials Co. 99,821 2,193 (1) Watson Pharmaceuticals, Inc. 57,018 4,534 Weyerhaeuser Co. 296,977 1,759 Worthington Industries, Inc. 26,825 Total 7,425,195 Capital Goods--7.1% 4,057 (1) Allied Waste Industries, Inc. 45,438 1,478 (1) American Standard Cos. 111,589 2,262 Avery Dennison Corp. 147,867 1,129 Ball Corp. 46,944 17,247 Boeing Co. 735,585 7,072 Caterpillar, Inc. 369,653 1,928 Cooper Industries, Inc. 83,617 19,460 (1) Corning, Inc. 93,408 1,229 Crane Co. 34,080 3,066 Danaher Corp. $213,455 4,895 Deere & Co. 230,065 4,174 Dover Corp. 148,553 1,427 Eaton Corp. 115,330 8,663 Emerson Electric Co. 501,155 4,155 General Dynamics Corp. 417,993 204,609 General Electric Co. 6,371,524 1,926 Grainger (W.W.), Inc. 101,269 6,274 Illinois Tool Works, Inc. 445,642 3,459 Ingersoll-Rand Co. 174,161 1,805 Johnson Controls, Inc. 158,948 2,676 (1) Lexmark International, Class A 167,116 9,130 Lockheed Martin Corp. 566,516 9,451 Masco Corp. 251,964 984 (1) Millipore Corp. 38,947 2,272 Northrop Grumman Corp. 275,616 2,516 Pall Corp. 57,264 2,412 Parker-Hannifin Corp. 118,188 5,022 Pitney Bowes, Inc. 205,651 3,761 Plum Creek Timber Co., Inc. 114,222 3,780 Rockwell Collins 98,280 3,798 Rockwell Automation Corp. 83,328 2,909 Textron, Inc. 136,490 3,662 (1) Thermo Electron Corp. 67,234 1,198 (1) Thomas & Betts Corp. 26,140 41,112 Tyco International Ltd. 902,408 9,736 United Technologies Corp. 670,518 12,929 Waste Management, Inc. 354,901 Total 14,681,059 Communication Services--4.4% 72,861 AT&T Corp. 872,146 55,658 (1) AT&T Wireless Services, Inc. 451,386 6,401 Alltel Corp. 329,587 38,680 BellSouth Corp. 1,287,270 2,356 (1) Big Lots, Inc. 42,172 2,906 CenturyTel, Inc. 90,086 3,496 Cintas Corp. 182,526 5,768 Citizens Communications Co. 54,219 3,544 (1) Convergys Corp. 92,995 16,440 (1) NEXTEL Communications, Inc., Class A 79,898 34,288 Qwest Communications International, Inc. 176,926 69,030 SBC Communications, Inc. 2,367,039 18,277 Sprint Corp. 300,657 20,362 (1) Sprint Corp. (PCS Group) 212,579 4,715 (1) Univision Communications, Inc., Class A 188,600 55,900 Verizon Communications 2,403,700 Total 9,131,786 Consumer Cyclicals--10.4% 1,313 (1) American Greetings Corp., Class A 27,140 2,199 (1) AutoZone, Inc. 179,988 5,981 (1) Bed Bath & Beyond, Inc. 205,148 6,539 (1) Best Buy Co., Inc. 302,102 1,644 Black & Decker Corp. 78,567 3,763 Block (H&R), Inc. 168,959 12,076 Carnival Corp. 367,110 20,213 (1) Cendant Corp. 369,494 1,260 Centex Corp. 67,725 4,299 Circuit City Stores, Inc. $98,490 4,795 Clorox Co. 219,611 1,495 Cooper Tire & Rubber Co. 34,146 9,317 Costco Wholesale Corp. 365,879 851 Cummins Engine Co., Inc. 31,325 3,060 Dana Corp. 65,239 11,538 Delphi Auto Systems Corp. 181,723 1,367 Deluxe Corp. 61,843 1,724 Dillards, Inc., Class A 51,772 6,849 Dollar General Corp. 117,734 2,327 Donnelley (R.R.) & Sons Co. 67,087 1,737 Dow Jones & Co. 95,622 3,551 Family Dollar Stores, Inc. 127,836 3,948 (1) Federated Department Stores, Inc. 163,487 1,650 Fluor Corp. 62,040 37,293 Ford Motor Co. 658,221 5,454 Gannett Co., Inc. 413,413 17,811 Gap (The), Inc. 259,506 11,439 General Motors Corp. 710,934 3,580 Genuine Parts Co. 130,849 3,360 Goodyear Tire & Rubber Co. 73,651 3,558 Hasbro, Inc. 54,437 7,606 Hilton Hotels Corp. 108,005 48,258 Home Depot, Inc. 2,011,876 6,086 IMS Health, Inc. 128,110 1,820 ITT Industries, Inc. 121,940 7,777 Interpublic Group Cos., Inc. 256,641 2,584 (1) Jones Apparel Group, Inc. 102,998 1,036 KB HOME 53,385 1,731 Knight-Ridder, Inc. 113,952 6,898 (1) Kohl's Corp. 517,350 4,047 Leggett and Platt, Inc. 106,517 10,650 Limited, Inc. 223,543 2,167 Liz Claiborne, Inc. 66,375 15,946 Lowe's Cos., Inc. 752,013 4,963 Marriott International, Inc., Class A 200,704 6,033 May Department Stores Co. 212,241 1,581 Maytag Corp. 70,813 1,271 (1) McDermott International, Inc. 16,841 3,983 McGraw-Hill Cos., Inc. 251,447 1,017 Meredith Corp. 41,127 1,234 Navistar International Corp. 43,819 3,105 New York Times Co., Class A 156,088 5,519 Nike, Inc., Class B 296,646 2,768 Nordstrom, Inc. 68,148 6,322 (1) Office Depot, Inc. 115,566 3,827 Omnicom Group, Inc. 330,538 2,370 PACCAR, Inc. 104,849 7,718 Paychex, Inc. 267,429 5,433 Penney (J.C.) Co., Inc. 132,891 1,242 Pulte Homes Inc. 67,354 3,692 Radioshack Corp. 126,414 1,214 (1) Reebok International Ltd. 31,783 2,942 (1) Sabre Group Holdings, Inc. 115,915 6,643 Sears, Roebuck & Co. 392,269 3,181 Sherwin-Williams Co. 100,520 1,193 Snap-On Inc. $37,699 1,753 Stanley Works 74,643 9,507 (1) Staples, Inc. 200,408 7,874 (1) Starbucks Corp. 191,181 4,073 Starwood Hotels & Resorts Worldwide, Inc. 144,143 11,234 TJX Cos., Inc. 236,925 2,602 TRW, Inc. 142,850 18,592 Target Corp. 770,638 5,876 The Pepsi Bottling Group, Inc. 194,026 2,984 Tiffany & Co. 111,900 4,315 (1) Toys 'R' Us, Inc. 78,749 6,135 Tribune Co. 260,799 1,197 Tupperware Corp. 26,490 2,286 V.F. Corp. 97,155 2,685 Visteon Corp. 42,289 91,786 Wal-Mart Stores, Inc. 4,965,623 2,974 (1) Wellpoint Health Networks, Inc. 220,552 1,376 Whirlpool Corp. 98,246 Total Consumer Staples--12.2% 1,186 Alberto-Culver Co. 62,822 8,368 Albertsons, Inc. 294,303 18,210 Anheuser-Busch Cos., Inc. 939,818 13,480 Archer-Daniels-Midland Co. 196,134 4,864 Avon Products, Inc. 257,549 1,406 Brown-Forman Corp., Class B 110,666 1,807 Brunswick Corp. 48,066 8,048 CVS Corp. 257,777 8,437 Campbell Soup Co. 238,345 12,307 (1) Clear Channel Communications, Inc. 655,102 51,168 Coca-Cola Co. 2,842,894 9,159 Coca-Cola Enterprises, Inc. 199,208 11,361 Colgate-Palmolive Co. 615,766 19,460 (1) Comcast Corp., Class A 547,994 11,063 ConAgra, Inc. 272,260 743 Coors Adolph Co., Class B 49,588 3,617 Darden Restaurants, Inc. 90,895 3,059 Fortune Brands, Inc. 164,115 7,523 General Mills, Inc. 342,296 21,733 Gillette Co. 773,043 6,234 Harley Davidson, Inc. 327,784 2,310 (1) Harrah's Entertainment, Inc. 110,071 7,209 Heinz (H.J.) Co. 292,902 2,792 Hershey Foods Corp. 186,310 8,371 Kellogg Co. 307,216 10,814 Kimberly-Clark Corp. 702,045 16,484 Kroger Co. 368,417 8,889 Mattel, Inc. 188,802 26,472 McDonald's Corp. 792,572 36,030 PepsiCo, Inc. 1,872,839 44,619 Philip Morris Cos., Inc. 2,554,438 26,692 Procter & Gamble Co. 2,390,269 10,336 (1) Safeway, Inc. 420,158 16,174 Sara Lee Corp. 340,948 2,727 SUPERVALU Inc. 82,301 13,698 SYSCO Corp. 381,489 3,467 UST, Inc. $132,890 11,770 Unilever NV, ADR 771,170 36,519 (1) Viacom, Inc., Class B 1,787,970 21,044 Walgreen Co. 805,143 41,998 Walt Disney Co. 962,174 2,154 Wendy's International, Inc. 81,787 2,895 Winn-Dixie Stores, Inc. 56,192 4,638 Wrigley (Wm.), Jr. Co. 265,804 3,003 (1) Yum! Brands, Inc. 191,892 Total Energy--7.2% 1,826 Amerada-Hess Corp. 150,188 5,122 Anadarko Petroleum Corp. 259,942 2,823 Apache Corp. 157,185 1,428 Ashland, Inc. 54,250 6,917 Baker Hughes, Inc. 253,508 2,739 CMS Energy Corp. 49,466 21,969 Chevron Texaco Corp. 1,916,795 12,889 Conoco, Inc. 346,456 3,372 Constellation Energy Group 102,070 3,200 Devon Energy Corp. 167,200 7,222 Dynegy, Inc. 64,204 2,379 EOG Resources, Inc. 97,539 140,871 Exxon Mobil Corp. 5,624,979 8,843 Halliburton Co. 164,038 2,063 Kerr-McGee Corp. 119,840 6,372 Marathon Oil Corp. 174,720 2,902 (1) Nabors Industries, Inc. 127,398 2,721 (1) Noble Drilling Corp. 116,513 7,694 Occidental Petroleum Corp. 229,743 7,851 Phillips Petroleum Co. 451,825 6,140 Reliant Energy, Inc. 104,441 1,931 (1) Rowan Companies, Inc. 49,627 43,740 Royal Dutch Petroleum Co., ADR 2,405,700 11,866 Schlumberger Ltd. 612,760 4,267 Sempra Energy 106,718 1,558 Sunoco Inc. 55,402 5,459 TXU Corp. 280,210 6,565 Transocean Sedco Forex, Inc. 250,586 5,025 Unocal Corp. 185,021 7,590 Xcel Energy, Inc. 163,109 Total 14,841,433 Finance--19.5% 10,754 AFLAC, Inc. 345,849 5,345 Ace, Ltd. 184,990 14,684 Allstate Corp. 565,040 2,173 Ambac Financial Group, Inc. 146,373 27,477 American Express Co. 1,168,047 53,800 American International Group, Inc. 3,602,986 7,505 Amsouth Bancorporation 166,611 5,545 Aon Corp. 185,369 3,557 (1) Apollo Group, Inc., Class A 122,645 9,494 BB&T Corp. 356,785 24,032 Bank One Corp. 976,420 32,400 Bank of America Corp. 2,456,244 15,167 Bank of New York Co., Inc. 550,562 2,056 Bear Stearns Cos., Inc. 123,463 2,978 CIGNA Corp. $315,817 4,424 Capital One Financial Corp. 276,235 4,629 Charter One Financial, Inc. 167,570 3,496 Chubb Corp. 262,759 3,327 Cincinnati Financial Corp. 150,979 105,950 Citigroup, Inc. 4,574,921 3,667 Comerica, Inc. 235,055 10,466 (1) Concord EFS, Inc. 327,272 7,100 (1) Conseco, Inc. 19,809 2,527 Countrywide Credit Industries, Inc. 124,606 8,533 Equity Office Properties Trust 257,185 5,577 Equity Residential Properties Trust 161,398 20,573 Fannie Mae 1,646,046 12,007 Fifth Third Bancorp 782,496 2,608 First Tennessee National Corp. 101,582 21,495 FleetBoston Financial Corp. 757,484 5,383 Franklin Resources, Inc. 234,322 14,315 Freddie Mac 938,348 3,246 Golden West Financial Corp. 227,090 5,049 Hartford Financial Services Group, Inc. 333,234 16,747 Honeywell International, Inc. 656,482 9,425 Household International, Inc. 482,089 5,174 Huntington Bancshares, Inc. 103,325 40,631 J.P. Morgan Chase & Co. 1,460,684 3,099 Jefferson-Pilot Corp. 147,543 6,151 John Hancock Financial Services, Inc. 225,680 8,721 KeyCorp 238,083 5,029 Lehman Brothers Holdings, Inc. 306,769 3,902 Lincoln National Corp. 174,888 3,943 Loews Corp. 225,145 3,056 MBIA Inc. 171,472 17,542 MBNA Corp. 635,196 2,207 MGIC Investment Corp. 160,625 5,656 Marsh & McLennan Cos., Inc. 570,690 2,204 Marshall & Ilsley Corp. 136,846 9,095 Mellon Financial Corp. 337,424 17,343 Merrill Lynch & Co., Inc. 706,034 14,926 MetLife, Inc. 495,991 3,212 Moody's Corp. 154,690 22,686 Morgan Stanley, Dean Witter & Co. 1,031,306 12,508 National City Corp. 416,266 4,574 Northern Trust Corp. 237,025 5,930 PNC Financial Services Group 333,563 4,528 Progressive Corp., OH 268,103 5,853 (1) Providian Financial Corp. 47,702 4,684 Regions Financial Corp. 168,858 3,612 Robert Half International, Inc. 89,144 2,632 SAFECO Corp. 84,198 3,228 SLM Corporation 311,437 28,145 Schwab (Charles) Corp. 340,273 7,136 SouthTrust Corp. 185,322 4,272 St. Paul Cos., Inc. 182,030 6,686 State Street Corp. 310,632 4,559 Stilwell Financial, Inc. 98,474 5,943 SunTrust Banks, Inc. 405,907 5,999 Synovus Financial Corp. 159,873 2,540 T. Rowe Price Group, Inc. $91,719 2,558 Torchmark Corp. 103,241 39,303 U.S. Bancorp, Inc. 929,516 4,985 UNUM Provident 126,121 2,829 Union Planters Corp. 141,931 28,026 Wachovia Corp. 1,075,358 19,834 Washington Mutual, Inc. 770,948 34,910 Wells Fargo & Co. 1,829,284 2,732 XL Capital Ltd. 241,837 1,889 Zions Bancorp 104,027 Total Health Care--13.3% 32,056 Abbott Laboratories 1,522,660 2,981 Aetna Inc. 142,641 2,695 Allergan, Inc. 170,054 2,140 AmerisourceBergen Corp. 164,973 21,577 (1) Amgen, Inc. 1,027,713 1,052 Bard (C.R.), Inc. 57,965 1,105 Bausch & Lomb, Inc. 41,736 12,157 Baxter International, Inc. 652,831 5,327 Becton, Dickinson & Co. 200,295 3,046 (1) Biogen, Inc. 151,934 5,561 Biomet, Inc. 156,987 8,307 (1) Boston Scientific Corp. 231,350 39,846 Bristol-Myers Squibb Co. 1,240,008 9,256 Cardinal Health, Inc. 615,154 3,903 (1) Chiron Corp. 141,289 3,679 (1) Forest Laboratories, Inc. 271,621 4,370 (1) Genzyme Corp. 139,971 6,276 (1) Guidant Corp. 251,040 10,607 HCA / Healthcare Co. 521,122 8,079 (1) HealthSouth Corp. 114,318 4,979 (1) Health Management Association, Class A 102,518 3,475 (1) Humana, Inc. 52,889 11,216 (1) Immunex Corp. 283,092 63,169 Johnson & Johnson 3,875,418 5,059 (1) King Pharmaceuticals, Inc. 136,846 23,147 Lilly (Eli) & Co. 1,497,611 2,109 (1) Manor Care, Inc. 54,623 5,920 McKesson Corp. 222,000 5,098 (1) Medimmune, Inc. 165,787 24,931 Medtronic, Inc. 1,150,566 46,844 Merck & Co., Inc. 2,674,792 129,466 Pfizer, Inc. 4,479,524 26,716 Pharmacia, Inc. 1,153,864 2,464 (1) Quintiles Transnational Corp. 35,013 30,151 Schering Plough Corp. 797,494 1,793 St. Jude Medical, Inc. 151,329 4,048 Stryker Corp. 220,859 6,702 (1) Tenet Healthcare Corp. 499,299 6,420 UnitedHealth Group, Inc. 582,936 27,167 Wyeth 1,507,768 3,992 (1) Zimmer Holdings, Inc. 139,640 Total Technology--16.2% 16,348 (1) ADC Telecommunications, Inc. 54,766 91,160 (1) AOL Time Warner, Inc. 1,704,692 4,881 Adobe System, Inc. $176,204 6,999 (1) Advanced Micro Devices, Inc. 79,999 9,550 (1) Agilent Technologies, Inc. 251,833 1,653 Allegheny Technologies, Inc. 29,027 7,933 (1) Altera Corp. 143,032 7,514 (1) Analog Devices, Inc. 275,163 1,684 (1) Andrew Corp. 29,015 7,278 (1) Apple Computer, Inc. 169,577 4,378 Applera Corp. 79,680 33,770 (1) Applied Materials, Inc. 749,019 6,165 (1) Applied Micro Circuits Corp. 37,915 2,258 Autodesk, Inc. 30,483 12,773 Automatic Data Processing, Inc. 663,174 7,413 (1) Avaya, Inc. 51,298 5,000 (1) BMC Software, Inc. 84,550 5,403 (1) Broadcom Corp. 121,838 6,770 (1) CIENA Corp. 38,318 151,052 (1) Cisco Systems, Inc. 2,383,601 3,866 (1) Citrix Systems, Inc. 41,250 11,892 Computer Associates International, Inc. 206,445 3,519 (1) Computer Sciences Corp. 166,695 7,690 (1) Compuware Corp. 56,675 3,836 (1) Comverse Technology, Inc. 45,457 5,265 (1) Conexant Systems, Inc. 37,645 53,688 (1) Dell Computer Corp. 1,441,523 45,627 EMC Corp.-Mass 330,796 6,013 Eastman Kodak Co. 200,053 9,901 Electronic Data Systems Corp. 522,971 2,984 Equifax, Inc. 82,448 7,856 First Data Corp. 622,195 6,672 (1) Gateway, Inc. 35,762 62,176 Hewlett-Packard Co. 1,186,940 138,224 Intel Corp. 3,817,747 35,475 International Business Machines Corp. 2,853,964 1,843 (1) International Game Technology 115,187 4,381 (1) Intuit, Inc. 191,581 27,952 (1) JDS Uniphase Corp. 98,112 4,061 (1) Jabil Circuit, Inc. 93,241 3,852 (1) KLA-Tencor Corp. 200,805 7,555 (1) LSI Logic Corp. 86,127 6,536 Linear Technology Corp. 243,466 70,492 (1) Lucent Technologies, Inc. 327,788 6,710 (1) Maxim Integrated Products, Inc. 308,660 1,704 (1) Mercury Interactive Corp. 57,697 12,361 Micron Technology, Inc. 291,472 111,518 (1) Microsoft Corp. 5,677,381 4,002 Molex, Inc. 151,075 45,836 Motorola, Inc. 732,918 2,001 (1) NCR Corp. 73,137 2,978 (1) NVIDIA Corp. 99,644 3,659 (1) National Semiconductor Corp. 112,331 6,876 (1) Network Appliance, Inc. 89,457 65,995 (1) Nortel Networks Corp. 145,849 7,468 (1) Novell, Inc. 25,615 2,951 (1) Novellus Systems, Inc. 125,358 113,206 (1) Oracle Corp. 896,592 3,400 (1) PMC-Sierra, Inc. $48,348 11,893 (1) Palm, Inc. 18,910 5,355 (1) Parametric Technology Corp. 18,635 6,238 (1) Peoplesoft, Inc. 128,066 2,529 PerkinElmer, Inc. 35,330 1,624 (1) Power-One, Inc. 14,600 1,913 (1) Qlogic Corp. 87,462 15,799 (1) Qualcomm, Inc. 499,880 4,004 (1) Rational Software Corp. 45,566 8,051 Raytheon Co. 355,854 10,768 (1) Sanmina Corp. 123,832 3,222 Scientific-Atlanta, Inc. 62,668 9,522 (1) Siebel Systems, Inc. 173,777 16,900 (1) Solectron Corp. 136,552 66,897 (1) Sun Microsystems, Inc. 460,920 4,704 Symbol Technologies, Inc. 40,313 2,277 (1) TMP Worldwide, Inc. 61,502 1,895 (1) Tektronix, Inc. 38,431 8,444 (1) Tellabs, Inc. 81,569 3,719 (1) Teradyne, Inc. 100,711 35,756 Texas Instruments, Inc. 1,025,125 6,642 (1) Unisys Corp. 75,984 8,256 (1) Veritas Software Corp. 187,164 4,124 (1) Vitesse Semiconductor Corp. 20,740 2,694 (1) Waters Corp. 71,822 14,828 (1) Xerox Corp. 133,007 6,910 (1) Xilinx, Inc. 243,647 11,977 (1) Yahoo, Inc. 191,872 Total Transportation--0.8% 3,189 AMR Corp. 66,810 7,914 Burlington Northern Santa Fe 223,966 4,405 CSX Corp. 151,532 2,539 Delta Air Lines, Inc. 66,649 6,143 (1) FedEx Corp. 331,415 7,961 Norfolk Southern Corp. 168,534 1,250 Ryder Systems, Inc. 37,375 15,791 Southwest Airlines Co. 268,921 5,115 Union Pacific Corp. 313,243 Total 1,628,445 Utilities--2.8% 10,978 (1) AES Corp. 71,906 2,576 Allegheny Energy, Inc. 92,556 2,835 Ameren Corp. 123,946 6,636 American Electric Power Co., Inc. 283,556 4,027 (1) American Power Conversion Corp. 56,217 3,223 (1) BJ Services Co. 120,927 4,138 Burlington Resources, Inc. 168,003 7,647 (1) Calpine Corp. 73,717 3,424 Cinergy Corp. 124,805 4,371 Consolidated Edison Co. 191,319 3,350 DTE Energy Co. 156,780 5,696 Dominion Resources, Inc. 368,987 17,011 Duke Energy Corp. 544,522 6,710 (1) Edison International 125,209 10,510 El Paso Corp. 269,582 4,552 Entergy Corp. 200,197 -------------------------------------------------------------------------------- 6,608 Exelon Corp. $353,462 3,924 (1) FIserv, Inc. 166,927 3,621 FPL Group, Inc. 228,087 6,129 FirstEnergy Corp. 211,512 2,865 KeySpan Corp. 108,469 2,546 Kinder Morgan, Inc. 110,114 8,253 (1) Mirant Corp. 78,403 912 NICOR, Inc. 43,831 4,274 NiSource, Inc. 103,559 7,989 (1) P G & E Corp. 171,763 3,019 PP & L Resources, Inc. 106,842 731 Peoples Energy Corp. 28,787 1,744 Pinnacle West Capital Corp. 69,952 4,504 Progress Energy, Inc. 233,532 4,239 Public Service Enterprises Group, Inc. 191,942 14,316 Southern Co. 386,532 2,877 TECO Energy, Inc. 71,637 10,627 Williams Cos., Inc. (The) 150,903 Total TOTAL COMMON STOCKS (IDENTIFIED COST 201,586,529 $106,823,425) (2) U.S. Treasury Obligation --1.6% $3,400,000 United States Treasury Bill, 6/20/2002 3,397,280 (IDENTIFIED COST $3,396,869) REGISTERED INVESTMENT COMPANY--0.8% 1,676,942 Evergreen Institutional Money Market Fund (AT 1,676,942 AMORTIZED COST) Total Investments (IDENTIFIED COST $111,897,236) $206,660,751 ================================================================================ (See Notes to Portfolios of Investments) Shares or Principal Amount Value -------------------------------------------------------------------------------- WACHOVIA EMERGING MARKETS FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--84.2% Brazil--3.2% 20,000 Companhia Cervajaria Brahma, ADR $378,000 27,000 Companhia Vale Do Rio Doce 814,179 75,000 Petroleo Brasileiro SA, ADR 1,785,750 100,000 Tele Centro Oeste Celular Participacoes SA, ADR 514,000 20,000 Telemig Celular Participacoes SA, ADR 491,000 30,000 Unibanco Uniao de Bancos Brasileiros SA, GDR 622,500 Total 4,605,429 China--1.7% 4,000,000 Beijing Datang Power Generation Co., Ltd., Class H 1,641,057 3,600,000 PetroChina Co. Ltd., Class H 752,322 Total 2,393,379 Croatia--0.4% 40,000 (3)Pliva D.D., GDR 563,228 Czech Republic--0.9% 75,710 Ceska Sporitelna AS 866,207 50,000 Cesky Telecom AS 476,073 Total 1,342,280 Hong Kong--4.7% 3,500,000 Brilliance China Automotive Holdings Ltd. 587,832 60,000 Cheung Kong (Holdings) Ltd. 555,780 1,250,000 China Everbright Ltd. 785,272 1,650,000 China Merchants Holdings International Co., Ltd. 1,300,987 410,000 (1)China Mobile (Hong Kong) Ltd. 1,295,730 1,420,000 (1)China Unicom Ltd. 1,319,897 138,000 Henderson China Holding Ltd. 61,924 95,000 Hutchison Whampoa Ltd. 794,727 180,000 Roadshow Holdings Ltd. 60,001 Total 6,762,150 Hungary--2.5% 25,000 MOL Magyar Olaj, GDR 491,250 50,000 Magyar Tavkozlesi Rt (Matav), ADR 902,000 200,000 OTP Bank RT 1,740,203 30,000 OTP Bank RT, GDR 522,000 Total 3,655,453 India--2.7% 35,000 Aventis Pharma Ltd. 299,867 60,000 BSES Ltd., GDR 885,000 37,000 Bajaj Auto Ltd. 365,810 241,000 Bank of Baroda 242,426 35,000 Cipla Ltd. 706,534 49,000 ITC Ltd. 611,075 50,000 Reliance Industries Ltd. 269,792 47,400 (3)Reliance Industries Ltd., GDR 554,580 Total 3,935,084 Indonesia--2.9% 400,000 PT Gudang Garam 498,994 2,375,000 PT Hanjaya Mandala Sampoerna 1,249,281 517,500 PT Indosat 699,123 3,633,800 PT Telekomunikasi Indonesia 1,702,528 Total 4,149,926 Israel--1.6% 16,000 (1)Check Point Software Technologies Ltd. $260,160 75,000 (1)RADWARE Ltd. 727,425 20,000 Teva Pharmaceutical Industries Ltd. 1,323,580 Total 2,311,165 Korea, Republic of--21.7% 185,000 (1)Daewoo Shipbuilding & Marine Engineering Co., Ltd. 1,179,198 65,000 Honam Petrochem Corp. 1,169,604 74,000 Hyundai Motor Co. 2,452,854 89,000 KT Corp., ADR 2,109,300 66,520 Kookmin Bank 3,434,739 78,000 Korea Electric Power Corp. 1,618,710 32,000 LG Household & Health Care Ltd. 1,001,400 15,100 Pacific Corp. 1,616,569 20,000 Pohang Iron and Steel Co., Ltd. 2,297,620 8,570 SK Telecom Co., Ltd. 1,909,071 42,660 SK Telecom Co. Ltd., ADR 1,057,115 26,727 Samsung Electronics Co. 7,527,492 27,000 Samsung SDI Co., Ltd. 2,127,893 11,200 Shinsegae Co., Ltd. 1,650,992 Total 31,152,557 Malaysia--2.0% 250,000 Genting Berhad 986,842 915,000 Malakoff Berhad 905,368 250,000 Malaysian International Shipping Berhad 467,105 200,000 Tanjong PLC 526,316 Total 2,885,631 Mexico--9.9% 75,000 America Movil SA de CV, Class L, ADR 1,311,750 270,299 (1)Cemex SA de CV 1,617,924 75,000 Coca-Cola Femsa SA, ADR 1,912,500 50,000 Fomento Economico Mexicano, SA de CV, ADR 2,112,500 1,500,000 Grupo Financiero BBVA Bancomer, SA de CV 1,297,987 280,000 Grupo Modelo SA de CV, Class C 700,436 20,000 (1)Grupo Televisa SA, GDR 839,000 200,000 Kimberly-Clark de Mexico 599,502 70,000 Telefonos de Mexico, Class L, ADR 2,436,000 600,000 Wal-Mart de Mexico SA de CV 1,487,861 Total 14,315,460 Peru--0.9% 20,000 Cia de Minas Buenaventura SA, ADR 597,000 45,000 Compania de Minas Buenaventura SA 705,248 Total 1,302,248 Poland--1.0% 50,000 (1)Bank Pekao SA 1,374,891 Russia--5.2% 50,000 Gazprom, ADR 862,500 60,000 (1)JSC Mining and Smelting Co. Norilsk Nickel, ADR 1,343,490 100,000 (1)RAO Unified Energy System, Class S, RDC 1,367,000 30,000 (1)Sun Interbrew Ltd., Class A, GDR, Registered 190,500 180,000 (1)Sun Interbrew Ltd., Class B, GDR 1,143,000 50,000 Surgutneftegaz, ADR 1,071,750 10,000 YUKOS, ADR 1,546,455 Total 7,524,695 Singapore--0.1% 60,000 City Developments Ltd. 198,064 Slovak Republic of--0.2% 55,000 (3)Slovakofarma AS, GDR $72,875 195,000 (3)Slovakofarma AS, GDR, Registered 253,500 Total 326,375 South Africa--6.0% 300,000 ABSA Group Ltd. 983,637 60,000 Anglogold Ltd., ADR 1,923,600 112,312 Bidvest Group Ltd. 568,744 10,000 Impala Platinum Holdings Ltd. 654,326 800,000 Sanlam Ltd. 718,571 50,000 Sappi Ltd. 725,835 70,000 Sasol Ltd. 778,418 650,000 Standard Bank Investment Corp., Ltd. 2,260,216 Total 8,613,347 Taiwan, Republic of China--9.5% 50,000 Ambit Microsystems Corp. 223,529 388,750 Asustek Computer, Inc. 1,292,022 343,351 (1)Chinatrust Financial Holding Co., Ltd. 318,105 324,625 Delta Electronics, Inc. 572,868 500,000 Far Eastern Textile Ltd. 213,235 416,000 Hon Hai Precision Industry Co., Ltd. 1,896,471 450,000 Quanta Computer, Inc. 1,363,235 1,092,570 Taiwan Cellular Corp. 1,368,926 1,592,000 Taiwan Semiconductor Manufacturing Co. 4,003,412 1,647,500 United Microelectronics Corp. 2,195,051 301,300 Yageo Corp. 178,121 Total 13,624,975 Thailand--2.0% 500,000 Advanced Info Service PCL 543,222 50,000 Advanced Info Service PCL 52,551 120,000 BEC World PCL 697,213 200,000 PTT Exploration and Production PCL 604,629 600,000 (1)PTT PCL 480,043 1,236,000 (1)Shin Corp. PCL 502,107 Total 2,879,765 Turkey--0.1% 32,404,162 Haci Omer Sabanci Holding AS 90,168 United Kingdom--5.0% 40,000 Anglo American PLC 734,531 160,000 Anglo American PLC, ADR 2,992,000 250,000 BHP Billiton PLC 1,425,937 44,136 HSBC Holdings PLC 536,150 175,000 South African Breweries PLC 1,480,570 Total 7,169,188 Total Common Stocks (identified cost 121,175,458 $91,998,927) Preferred Stocks--2.6% Brazil--1.9% 8,000,000 Banco Itau SA, Pfd. 551,111 110,000,000 Companhia Paranaense de Energia-Copel, Pfd., 635,119 (Series B) 72,081,404 Telemar Norte Leste SA, Pfd., (Series A) 1,544,315 Total 2,730,545 Russia--0.7% 4,000,000 Surgutneftegaz, Pfd. 940,000 Total Preferred Stocks (identified cost 3,670,545 $3,273,643) CORPORATE BOND--0.0% -------------------------------------------------- Brazil--0.0% $53,500 Companhia Vale Do Rio Doce, Deb. (IDENTIFIED COST $229) $0 registered investment company--16.2% United States--16.2% 23,359,399 Evergreen Institutional U.S. Government Money 23,359,399 Market Fund (AT AMORTIZED COST) Total Investments (identified cost $118,632,198) $148,205,402 =============================================================================== (See Notes to Portfolios of Investments) WACHOVIA PERSONAL EQUITY FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value ------------------------------------------------------------------------------- Common Stocks--87.8% Basic Materials--2.7% 146,485 Alcoa, Inc. $5,124,045 31,001 Bowater, Inc. 1,623,832 Total 6,747,877 Capital Goods--6.8% 29,881 Avery Dennison Corp. 1,953,321 41,315 Boeing Co. 1,762,085 297,866 General Electric Co. 9,275,547 24,970 Illinois Tool Works, Inc. 1,773,619 41,306 Parker-Hannifin Corp. 2,023,994 Total 16,788,566 Communication Services--3.4% 60,809 CenturyTel, Inc. 1,885,079 72,018 SBC Communications, Inc. 2,469,497 22,522 Telephone and Data System, Inc. 1,707,168 53,075 Verizon Communications, Inc. 2,282,225 Total 8,343,969 Consumer Cyclicals--10.5% 38,323 Family Dollar Stores, Inc. 1,379,628 106,907 Ford Motor Co. 1,886,909 103,466 Home Depot, Inc. 4,313,498 61,076 Jones Apparel Group, Inc. 2,434,489 (1) 179,586 Lowe's Cos., Inc. 8,469,276 97,118 McCormick & Co., Inc. 2,550,319 48,380 Starwood Hotels & Resorts Worldwide, Inc. 1,712,168 22,686 Target Corp. 940,335 41,979 Wal-Mart Stores, Inc. 2,271,064 Total 25,957,686 Consumer Staples--9.7% 109,180 Coca-Cola Co. 6,066,041 27,778 Harley-Davidson, Inc. 1,460,567 39,633 Hershey Foods Corp. 2,644,710 34,508 Kimberly-Clark Corp. 2,240,259 89,287 McDonald's Corp. 2,673,253 73,509 Philip Morris Cos., Inc. 4,208,390 28,150 Procter & Gamble Co. 2,520,833 79,013 SYSCO Corp. 2,200,512 Total 24,014,565 Energy--6.6% 23,130 Anadarko Petroleum Corp. 1,173,848 14,325 ChevronTexaco Corp. 1,249,856 64,535 Conoco, Inc. 1,734,701 44,942 EOG Resources, Inc. 1,842,622 260,427 Exxon Mobil Corp. 10,398,850 Total 16,399,877 Finance--19.9% 88,724 AFLAC, Inc. 2,853,364 87,401 American International Group, Inc. 5,853,245 69,698 BB&T Corp. 2,619,251 36,061 Bank of America Corp. $2,733,784 149,518 Citigroup, Inc. 6,456,187 77,861 (1Concord EFS, Inc. 2,434,714 28,317 Freddie Mac 1,856,179 86,472 FleetBoston Financial Corp. 3,047,273 39,678 Hartford Financial Services Group, Inc. 2,618,748 60,037 Honeywell International, Inc. 2,353,450 56,999 J.P. Morgan Chase & Co. 2,049,114 37,463 Loews Corp. 2,139,137 76,608 Morgan Stanley, Dean Witter & Co. 3,482,600 67,323 RenaissanceRE Holdings Ltd. 2,490,951 76,456 Wells Fargo & Co. 4,006,294 25,925 XL Capital Ltd., Class A 2,294,881 Total 49,289,172 Health Care--12.5% 50,591 Abbott Laboratories 2,403,073 31,123 (1Amgen, Inc. 1,482,389 30,412 (1Boston Scientific Corp. 846,974 132,220 Johnson & Johnson 8,111,697 76,190 (1Lincare Holdings, Inc. 2,261,319 64,992 Medtronic, Inc. 2,999,381 90,340 Merck & Co., Inc. 5,158,414 176,852 Pfizer, Inc. 6,119,079 22,360 (1)Tenet Healthcare Corp. 1,665,820 Total 31,048,146 Technology--13.0% 89,977 (1Altera Corp. 1,622,285 48,692 (1Applied Materials, Inc. 1,079,989 292,255 (1)Cisco Systems, Inc. 4,611,784 99,613 (1CommScope, Inc. 1,411,516 100,017 (1Dell Computer Corp. 2,685,456 22,451 First Data Corp., Class 1,778,119 91,821 (1Integrated Circuit System, Inc. 1,913,550 190,430 Intel Corp. 5,259,677 42,112 International Business Machines Corp. 3,387,910 148,655 (1)Microsoft Corp. 7,568,026 44,220 (1Siebel Systems, Inc. 807,015 Total 32,125,327 Utilities--2.7% 30,043 Allegheny Energy, Inc. 1,079,445 171,270 Duke Energy Corp. 5,482,353 Total 6,561,798 Total Common Stocks (identified cost 217,276,983 $171,436,095) (2) U.S. Treasury Obligation--0.8% 2,000,000 United States Treasury Bill, 6/20/2002 1,998,400 (identified cost $1,998,163) REGISTERED INVESTMENT COMPANY--9.3% 23,025,998 Evergreen Institutional Money Market Fund (AT 23,025,998 AMORTIZED COST) Total Investments (identified cost $196,460,256) $242,301,381 ================================================================================ (See Notes to Portfolio of Investments) -------------------------------------------------------------------------------- WACHOVIA BALANCED FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--54.6% Basic Materials--3.4% 25,600 3M Co. $3,211,008 33,219 Alcoa, Inc. 1,162,001 27,924 Du Pont (E.I.) de Nemours & Co. 1,284,504 47,700 PPG Industries, Inc. 2,727,486 32,692 Praxair, Inc. 1,830,752 35,700 Weyerhaeuser Co. 2,338,350 Total 12,554,101 Capital Goods--4.2% 215,799 General Electric Co. 6,719,981 22,800 Illinois Tool Works, Inc. 1,619,484 22,721 (1)Lexmark International, Inc. 1,418,926 15,800 Northrop Grumman Corp. 1,916,698 5,984 SPX Corp. 822,800 39,056 United Technologies Corp. 2,689,787 Total 15,187,676 Communication Services--1.1% 47,900 BellSouth Corp. 1,594,112 53,689 Verizon Communications, Inc. 2,308,627 Total 3,902,739 Consumer Cyclicals--6.7% 23,101 Centex Corp. 1,241,679 111,400 Delphi Corp. 1,754,550 49,200 Family Dollar Stores, Inc. 1,771,200 11,800 Gannett Co., Inc. 894,440 15,600 General Motors Corp. 969,540 17,100 (1)Kohl's Corp. 1,282,500 61,000 Kraft Foods, Inc., Class A 2,623,610 140,592 Lowe's Cos., Inc. 6,630,319 23,800 (1)Navistar International Corp. 845,138 97,900 (1)Starbucks Corp. 2,377,012 77,500 Wal-Mart Stores, Inc. 4,192,750 Total 24,582,738 Consumer Staples--5.3% 29,100 Anheuser-Busch Cos., Inc. 1,501,851 16,924 Avon Products, Inc. 896,126 59,500 Coca-Cola Co. 3,305,820 45,256 Harley-Davidson, Inc. 2,379,560 57,200 PepsiCo, Inc. 2,973,256 22,400 Philip Morris Cos., Inc. 1,282,400 37,100 Procter & Gamble Co. 3,322,305 40,700 SYSCO Corp. 1,133,495 28,000 The Walt Disney Co. 641,480 42,276 (1)Viacom, Inc., Class B 2,069,833 Total 19,506,126 Energy--3.4% 12,134 Anadarko Petroleum Corp. 615,800 30,500 Devon Energy Corp. 1,593,625 145,866 Exxon Mobil Corp. 5,824,429 68,400 Ocean Energy, Inc. 1,520,532 15,500 Phillips Petroleum Co. 892,025 40,600 Schlumberger Ltd. $2,096,584 Total 12,542,995 Finance--11.6% 36,074 American Express Co. 1,533,506 73,113 American International Group, Inc. 4,896,378 44,025 Bank of America Corp. 3,337,535 24,054 Bank of New York Co., Inc. 873,160 14,900 Capital One Financial Corp. 930,356 194,365 Citigroup, Inc. 8,392,681 43,900 (1)Concord EFS, Inc. 1,372,753 18,500 Fifth Third Bancorp 1,205,645 69,151 Freddie Mac 4,532,848 19,700 Loews Corp. 1,124,870 38,213 MBNA Corp. 1,383,693 2,228 Marsh & McLennan Cos., Inc. 224,805 60,700 Mellon Financial Corp. 2,251,970 39,500 MetLife, Inc. 1,312,585 34,743 Morgan Stanley, Dean Witter & Co. 1,579,417 26,396 PNC Financial Services Group 1,484,775 30,991 (1)Prudential Financial, Inc. 1,068,880 13,500 State Street Corp. 627,210 51,562 Wells Fargo Co. 2,701,849 15,400 XL Capital Ltd., Class A 1,363,208 Total 42,198,124 Health Care--7.8% 40,225 (1)Amgen, Inc. 1,915,917 50,500 Baxter International, Inc. 2,711,850 25,544 Bristol-Myers Squibb Co. 794,929 13,200 Eli Lilly & Co. 854,040 64,836 Johnson & Johnson 3,977,689 35,200 (1)Laboratory Corporation of America Holdings 1,726,560 28,985 Medtronic, Inc. 1,337,658 28,304 Merck & Co., Inc. 1,616,158 155,074 Pfizer, Inc. 5,365,560 41,700 Pharmacia Corp. 1,801,023 12,100 (1)St. Jude Medical, Inc. 1,021,240 22,799 (1)Tenet Healthcare Corp. 1,698,525 9,100 UnitedHealth Group, Inc. 826,280 50,337 Wyeth 2,793,703 Total 28,441,132 Technology--9.0% 57,900 (1)Affiliated Computer Services, Inc., Class A 3,221,556 58,400 (1)Altera Corp. 1,052,952 20,591 Automatic Data Processing, Inc. 1,069,085 167,477 (1)Cisco Systems, Inc. 2,642,787 61,400 (1)Dell Computer Corp. 1,648,590 73,699 (1)EMC Corp. Mass 534,318 19,000 First Data Corp. 1,504,800 98,915 Intel Corp. 2,732,032 27,900 International Business Machines Corp. 2,244,555 20,276 (1)KLA-Tencor Corp. 1,056,988 30,173 (1)Microchip Technology, Inc. 902,173 118,625 (1)Microsoft Corp. 6,039,199 57,500 (1)Oracle Corp. 455,400 46,800 Raytheon Co. 2,068,560 112,667 Texas Instruments, Inc. $3,230,163 29,300 (1)USA Interactive 835,050 29,953 (1)Veritas Software Corp. 679,034 24,200 (1)Xilinx, Inc. 853,292 Total 32,770,534 Transportation--0.9% 79,400 Burlington Northern Santa Fe 2,247,020 51,900 (1)Swift Transportation Co. 1,087,824 Total 3,334,844 Utilities--1.2% 40,764 (1)BJ Services Co. 1,529,465 9,000 Dominion Resources, Inc. 583,020 51,058 Duke Energy Corp. 1,634,367 19,100 Pinnacle West Capital Corp. 766,101 Total 4,512,953 Total Common Stocks (identified cost 199,533,962 $162,831,366) Asset-Backed Securities--1.9% $2,000,000 American Express Credit Account Master Trust 2,020,000 1997-1, Class A, 6.40%, 4/15/2005 2,025,000 Carco Auto Loan Master Trust 1999-4, Class A, 2,063,845 6.43%, 11/15/2004 1,400,000 Discover Card Master Trust I 1999-6, Class A, 1,482,250 6.85%, 7/17/2007 1,200,000 MBNA Master Credit Card Trust 1999-J, Class A, 1,335,744 7.00%, 2/15/2012 Total asset-backed securities (identified cost 6,901,839 $6,835,867) Corporate Bonds--13.6% Communication Services--0.5% 475,000 AT&T Wireless Services, Inc., Note, 8.125%, 463,087 5/1/2012 1,500,000 SBC Communications, Inc., Unsecd. Note, 5.875%, 1,478,220 2/1/2012 Total 1,941,307 Finance--10.4% 1,250,000 American General Finance Corp., Note, 5.75%, 1,266,475 3/15/2007 1,100,000 Associates Corp. of North America, Sr. Note, 1,137,378 5.75%, 11/1/2003 865,000 Bankers Trust Corp., Sub. Note, 7.375%, 5/1/2008 937,072 1,000,000 Barnett Banks, Inc., Sub. Note, 6.90%, 9/1/2005 1,074,330 500,000 Caterpillar Financial Services Corp., Note, Series 517,115 F, 6.09%, 3/1/2004 2,000,000 Citigroup, Inc., Sr. Note, 6.75%, 12/1/2005 2,139,800 1,000,000 Distribution Financial Services RV Trust, 6.48%, 1,040,584 10/15/2013 2,155,000 DLJ Mortgage Acceptance Corp. 1999-CG3, Class A1B, 2,353,191 7.34%, 10/10/2032 1,000,000 Ford Motor Credit Co., Note, 7.375%, 10/28/2009 1,033,660 1,000,000 GTE North, Inc., Deb., 5.65%, 11/15/2008 968,480 2,500,000 General Electric Capital Corp., Note, 8.85%, 2,787,425 4/1/2005 1,250,000 General Motors Acceptance Corp., Note, 6.38%, 1,290,650 1/30/2004 1,085,000 Goldman Sachs Group, Inc., Note, Series MTNB, 1,155,644 7.35%, 10/1/2009 1,500,000 Hartford Life, Inc., Note, 7.10%, 6/15/2007 1,590,315 1,340,000 Household Finance Corp., 6.40%, 6/17/2008 1,344,074 1,000,000 J.P. Morgan Chase & Co., Sub. Note, 6.75%, 2/1/2011 1,031,780 1,000,000 Key Bank, N.A., Sub. Note, 7.00%, 2/1/2011 1,056,040 800,000 Kinder Morgan Energy Partners LP, Bond, 7.40%, 815,752 3/15/2031 2,290,000 LB Commercial Conduit Mortgage Trust 1999-C1, 2,437,744 Class A2, 6.78%, 6/15/2031 1,340,000 Residential Asset Mortgage Products, Inc. 1,344,796 2002-RZ1, Class A2, 4.30%, 4/25/2023 1,000,000 Salomon Smith Barney Holdings, Inc., Note, 5.875%, 1,036,310 3/15/2006 1,250,000 Simon DeBartolo Group, Inc., Sr. Note, 6.875%, 1,290,387 10/27/2005 1,000,000 (3)Sprint Capital Corp., 8.375%, 3/15/2012 994,790 2,380,000 Union Planters Corp., Sub. Note, 6.50%, 3/15/2018 2,424,554 2,000,000 Washington Mutual, Inc., Unsecd. Note, 5.625%, 2,037,460 1/15/2007 1,700,000 Wells Fargo Bank, N.A., Sub. Note, 6.45%, 2/1/2011 1,761,676 1,000,000 Wells Fargo Financial, Inc., Sr. Note, 6.625%, 7/15/2004 $1,060,000 Total 37,927,482 Industrial Services--0.1% 400,000 Petroleum Geo-Services ASA, Note, 7.50%, 3/31/2007 326,468 Technology--0.2% 825,000 ---------- H861,275l International, Inc., 6.875%, 10/3/2005 Transportation--0.6% 780,000 Norfolk Southern Corp., Bond, 7.25%, 2/15/2031 812,183 1,000,000 United Parcel Service, Deb., 8.375%, 4/1/2020 1,194,270 Total 2,006,453 Utilities--1.8% 680,000 GTE California, Inc., Deb., Series G, 5.50%, 550,488 1/15/2009 1,250,000 Georgia Power Co., Note, 6.20%, 2/1/2006 1,286,000 3,060,000 National Fuel Gas Co., Note, 6.303%, 5/27/2008 3,022,546 1,500,000 Ontario Hydro, Sr. Note, 6.10%, 1/30/2008 1,573,560 Total 6,532,594 Total Corporate Bonds (identified cost 49,595,579 $48,422,216) Mortgage Backed Securities--20.3% Federal Home Loan Bank--0.3% 1,000,000 5.40%, 3/1/2004 1,036,230 Federal Home Loan Mortgage Corporation--5.0% 2,320,000 5.50%, 8/15/2011 2,385,837 2,563,971 5.50%, 12/1/2031 2,469,412 1,262,134 5.50%, 12/1/2031 1,215,586 1,699,601 5.50%,1/1/2032 1,636,919 1,025,000 5.75%, 3/15/2009 1,057,554 799,143 6.00%, 8/1/2013 816,868 2,390,000 6.00%, 9/15/2014 2,489,517 3,415,000 6.00%, 3/15/2015 3,512,533 1,500,000 6.00%, 12/15/2020 1,548,270 1,300,000 6.00%, 7/1/2032 1,289,444 Total 18,421,940 Federal National Mortgage Association--11.6% 2,560,000 5.50%, 5/25/2012 2,628,620 3,061,762 6.00%, 12/1/2012 3,138,612 994,111 6.00%, 1/1/2013 1,019,063 2,084,633 6.00%, 4/1/2013 2,134,122 1,308,620 6.00%, 7/1/2013 1,339,686 2,100,000 6.00%, 9/25/2014 2,125,578 1,430,000 6.00%, 6/25/2026 1,454,567 2,149,667 6.00%, 10/1/2031 2,131,524 1,650,537 6.334%, 9/1/2008 1,720,372 1,445,630 6.50%, 7/1/2013 1,500,290 8,397,015 6.50%, 2/1/2029 8,543,963 476,102 6.54%, 12/1/2007 503,917 1,801,564 6.56%, 12/1/2007 1,908,329 1,523,198 7.00%, 12/25/2021 1,566,990 2,354,024 7.06%, 8/1/2006 2,535,701 180,488 7.50%, 9/1/2022 190,413 2,302,225 7.50%, 12/1/2030 2,408,703 2,052,714 7.50%, 11/25/2031 2,158,408 2,953,955 7.50%, 3/1/2032 3,090,575 70,898 8.00%, 6/1/2022 76,177 55,597 8.00%, 1/1/2023 59,737 8,147 8.50%, 8/1/2016 $8,775 79,682 8.50%, 7/1/2024 85,035 5,601 8.50%, 10/1/2024 5,977 65,577 8.50%, 12/1/2024 69,983 Total 42,405,117 Government National Mortgage Association--3.4% 2,489,468 6.00%, 2/15/2029 2,484,081 2,779,248 6.00%, 2/15/2029 2,766,213 4,674,780 6.00%, 3/15/2029 4,652,855 317,277 6.50%, 10/15/2008 331,453 520,816 6.50%, 12/15/2012 543,597 492,564 6.50%, 2/15/2013 514,108 392,133 6.50%, 2/15/2013 409,285 615,247 7.50%, 8/15/2027 650,242 Total 12,351,834 Total Mortgage Backed Securities (identified 74,215,121 cost $73,208,595) U.S. TREASURY OBLIGATIONS--2.0% U.S. Treasury bond--1.7% 5,855,000 6.25%, 8/15/2023 6,188,911 U.S. Treasury Note--0.3% 925,000 6.125%, 8/15/2007 997,011 Total U.S. Treasury obligations (identified 7,185,922 cost $6,994,931) REGISTERED INVESTMENT COMPANIES--6.0% 44,000 2002 Target Term Trust, Inc. 645,920 30,600 Blackrock Advantage Term Trust 347,616 222,900 Blackrock Strategic Term Trust, Inc. 2,182,191 17,429,232 Evergreen Institutional Money Market Fund 17,429,232 12,500 TCW/DW Term Trust 2002 133,000 124,800 TCW/DW Term Trust 2003 1,344,096 TOTAL REGISTERED INVESTMENT COMPANIES 22,082,055 (IDENTIFIED COST $21,508,083) Total Investments (identified cost $319,801,058 ) $359,514,478 ================================================================================ (See Notes to Portfolios of Investments) Shares Value -------------------------------------------------------------------------------- WACHOVIA BLUE CHIP VALUE FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value Common Stocks--72.9% Basic Materials--1.6% 775 Alcoa, Inc. $27,110 498 (1)Watson Pharmaceuticals, Inc. 12,948 Total 40,058 Capital Goods--5.1% 828 (1)Lexmark International, Inc. 51,709 320 Textron, Inc. 15,014 848 United Technologies Corp. 58,402 Total 125,125 Communication Services--5.3% 2,038 SBC Communications, Inc. 69,883 1,363 Verizon Communications, Inc. 58,609 Total 128,492 Consumer Cyclicals--5.0% 2,097 Ford Motor Co. 37,012 1,193 Lowe's Cos., Inc. 56,262 793 Starwood Hotels & Resorts Worldwide, Inc. 28,064 Total Consumer Staples--9.1% 1,747 (1)Comcast Corp., Class A 49,196 553 Kimberly-Clark Corp. 35,901 1,685 Philip Morris Cos., Inc. 96,466 794 (1)Viacom, Inc., Class B 38,874 Total 220,437 Energy--8.0% 558 Apache Corp. 31,069 1,694 Conoco, Inc., Class A 45,535 907 ENSCO International, Inc. 29,704 2,194 Exxon Mobil Corp. 87,606 Total 193,914 Finance--19.5% 794 Bank of America Corp. 60,193 284 Bank of New York Co., Inc. 10,309 2,350 Citigroup, Inc. 101,473 1,010 Freddie Mac 66,206 442 Honeywell International, Inc. 17,327 1,108 J.P. Morgan Chase & Co. 39,833 395 MBIA, Inc. 22,163 1,094 Morgan Stanley, Dean Witter & Co. 49,733 533 PNC Financial Services Group 29,981 1,502 Wells Fargo Co. 78,705 Total Health Care--5.1% 445 Bristol-Myers Squibb Co. 13,849 441 Johnson & Johnson 27,055 962 Pfizer, Inc. 33,285 1,139 Pharmacia Corp. 49,193 Total 123,382 Technology--4.5% 949 (1)Celestica, Inc. 28,015 663 Electronic Data Systems Corp. 35,020 2,063 Hewlett-Packard Co. 39,383 739 (1)Solectron Corp. 5,971 Total 108,389 Transportation--1.6% 1,398 Burlington Northern Santa Fe Corp. 39,563 Utilities--8.1% 1,094 (1)BJ Services Co. 41,047 1,361 (1)Calpine Corp. 13,120 2,117 Duke Energy Corp. 67,765 579 El Paso Corp. 14,851 746 Tidewater, Inc. 30,400 746 Valero Energy Corp. 29,467 Total 196,650 Total Common Stocks (identified cost 1,773,271 $1,879,304) Registered Investment CompanIES--13.9% 267,588 Evergreen Institutional Money Market Fund 267,588 1,333 iShares S&P 500/BARRA Value 70,862 tOTAL REGISTERED INVESTMENT COMPANIES 338,450 (IDENTIFIED COST $340,279) Total Investments (identified cost $2,219,583) $2,111,721 =============================================================================== (See Notes to Portfolios of Investments) Shares Value -------------------------------------------------------------------------------- WACHOVIA NEW HORIZONS FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value -------------------------------------------------------------------------------- Common Stocks--85.8% Basic Materials--3.9% 350 Praxair, Inc. $19,600 600 Rohm & Haas Co. 22,608 Total 42,208 Capital Goods--5.2% 1,140 General Electric Co. 35,500 300 Illinois Tool Works, Inc. 21,309 Total 56,809 Consumer Cyclicals--6.6% 350 ITT Industries, Inc. 23,450 500 Lowe's Cos., Inc. 23,580 300 Paychex, Inc. 10,395 600 (1Starbucks Corp. 14,568 Total 71,993 Consumer Staples--5.2% 500 Coca-Cola Co. 27,780 550 Harley Davidson, Inc. 28,919 Total 56,699 Energy--4.0% 450 Devon Energy Corp. 23,513 400 (1Weatherford International, Inc. 20,140 Total 43,653 Finance--2.8% 699 Citigroup, Inc. 30,183 Health Care--24.9% 700 Bristol-Myers Squibb Co. 21,784 300 (1Gilead Sciences, Inc. 10,698 1,012 Ivax Corp. 13,237 760 Johnson & Johnson 46,626 1,401 Medtronic, Inc. 64,656 1,437 Pfizer, Inc. 49,720 500 Pharmacia Corp. 21,595 763 Wyeth 42,347 Total 270,663 Retail--4.9% 600 (1Bed Bath & Beyond, Inc. 20,580 900 Family Dollar Stores, Inc. 32,400 Total 52,980 Technology--28.3% 400 (1Affiliated Computer Services, Inc., Class A 22,256 2,282 (1Cisco Systems, Inc. 36,010 400 (1Electronic Arts, Inc. 25,600 1,195 Intel Corp. 33,006 300 International Business Machines Corp. 24,135 300 (1International Game Technology 18,750 600 (1L-3 Communications Holdings, Inc. 37,860 898 (1Microchip Technology, Inc. 26,850 943 (1Microsoft Corp. 48,008 300 (1NVIDIA Corp. 10,038 914 Texas Instruments, Inc. 26,203 Total 308,716 Total Common Stocks (identified cost $971,933) $933,904 registered investment company--8.0% 87,425 Evergreen Institutional Money Market Fund (AT 87,425 AMORTIZED COST) Total Investments (identified cost $1,059,358) $1,021,329 ================================================================================ (See Notes to Portfolio of Investments) Shares Value ------------------------------------------------------------------------------- WACHOVIA INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Shares Value COMMON STOCKS--96.3% Brazil--2.3% 1,300 Brasil Telecom Participacoes SA, ADR $44,525 3,700 Companhia Vale Do Rio Doce, ADR 108,965 2,200 Petroleo Brasileiro SA, ADR 52,382 Total 205,872 Canada--11.2% 10,500 Brascan Corp., Class A 243,810 11,200 Brookfield Properties Corp. 231,504 12,300 (1Kingsway Financial Services, Inc. 150,798 7,518 Manulife Financial Corp. 223,811 5,400 Petro-Canada 148,770 Total 998,693 Finland--1.6% 9,700 Stora Enso Oyj, ADR 138,225 France--6.8% 1,500 Aventis SA, ADR 104,580 1,357 Dassault Systemes SA, ADR 55,366 10,635 L'Air Liquide, SA, ADR 336,619 1,389 TotalFinaElf SA, Class B, ADR 107,884 Total 604,449 Germany, Federal Republic Of--1.4% 2,400 E.On AG, ADR 125,856 Hong Kong--3.5% 22,700 Johnson Electric Holdings Ltd., ADR 311,412 Italy--5.8% 20,768 Luxottica Group SpA, ADR 412,452 1,300 Telecom Italia SpA, ADR 103,675 Total 516,127 Japan--12.9% 9,560 Canon, Inc., ADR 370,928 7,540 Honda Motor Co. Ltd., ADR 163,769 6,300 (1Millea Holdings, Inc., ADR 269,640 3,200 Sony Corp., ADR 185,952 2,878 Toyota Motor Corp., ADR 159,355 Total 1,149,644 Korea, Republic Of--3.2% 10,670 KT Corp., ADR 252,879 700 (1Kookmin Bank, ADR 36,169 Total 289,048 Mexico--7.2% 5,068 Cemex SA de CV, ADR 152,192 3,300 Fomento Economico Mexicano, SA de CV, ADR 139,425 3,600 Pepsi-Gemex, ADR 36,144 2,700 Telefonos de Mexico SA de CV, Class L, ADR 93,960 7,800 Wal-Mart de Mexico SA de CV, ADR 225,217 Total 646,938 Netherlands--2.2% 4,419 Akzo Nobel NV, ADR 198,855 Peru--1.1% 3,400 Cia de Minas Buenaventura SA, ADR 101,490 Russia--1.5% 6,100 Surgutneftegaz, ADR 130,357 South Africa--0.7% 4,100 Sappi Ltd., ADR $59,860 Sweden--3.1% 3,500 Swedish Match AB, ADR 277,900 Switzerland--8.6% 14,633 Adecco SA, ADR 238,811 3,600 Nestle SA, ADR 218,571 5,394 Novartis AG, ADR 230,971 4,000 Serono SA, ADR 81,800 Total 770,153 United Kingdom--23.2% 4,900 AstraZeneca PLC, ADR 214,228 5,500 (1BT Group PLC, ADR 224,345 800 Barclays PLC, ADR 28,520 14,700 British American Tobacco PLC, ADR 351,624 11,830 Cadbury Schweppes PLC, ADR 348,394 3,700 Diageo PLC, ADR 188,071 2,100 GlaxoSmithKline PLC, ADR 85,575 5,377 HSBC Holdings PLC, ADR 335,471 9,349 Pearson PLC, ADR 117,610 2,180 Smith & Nephew PLC, ADR 125,328 1,002 WPP Group PLC, ADR 51,793 Total 2,070,959 TOTAL COMMON STOCKS (IDENTIFIED COST 8,595,838 $7,628,797) REGISTERED INVESTMENT COMPANY--0.2% $22,966 Evergreen Institutional U.S. Government Money 22,966 Market Fund (AT AMORTIZED COST) Total Investments (IDENTIFIED COST $7,651,763) $8,618,804 ================================================================================ (See Notes to Portfolios of Investments) -------------------------------------------------------------------------------- WACHOVIA FIXED INCOME FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount Asset-Backed Securities--3.1% Finance--2.1% $5,000,000 Distribution Financial Services RV Trust, 6.48%, 10/15/2013 $5,202,921 3,250,000 Distribution Financial Services Trust 1999-1, 3,341,007 Class A5, 5.97%, 8/15/2013 2,400,000 MBNA Master Credit Card Trust 2000-L, Class A, 2,507,232 6.50%, 4/15/2010 Total 11,051,160 Utilities--1.0% 4,855,000 Detroit Edison Securitization Funding LLC 2001-1, 4,944,478 Class A5, 6.42%, 3/1/2015 Total Asset-Backed Securities (identified cost 15,995,638 $15,615,727) Collateralized Mortgage Obligations--2.8% Finance--2.8% 2,370,000 DLJ Commercial Mortgage Corp. 1998-CF1, Class A1B, 2,587,964 7.34%, 10/10/2032 3,717,885 Nomura Asset Securities Corp. 1998-D6, Class ACS, 10,173 3/15/2030 6,375,000 Residential Asset Mortgage Products, Inc. 6,434,590 2002-RS2, Class AI5, 6.03%, 3/25/2032 5,500,000 Residential Asset Securities, Corp., Class A16, 5,544,326 5.96%, 9/25/2031 Total Collateralized Mortgage Obligations 14,577,053 (identified cost $14,375,805) Corporate Bonds--25.0% Basic Materials--0.2% 1,000,000 Du Pont (E.I.) de Nemours & Co., Unsecd. Note, 1,012,480 Series G, 6.47%, 9/26/2002 Capital Goods--1.1% 5,670,000 Ingersoll-Rand Co., Note, 6.13%, 11/18/2027 5,790,828 Communication Services--2.0% 3,000,000 AT&T Corp., Global Bond, 6.50%, 3/15/2029 2,178,810 1,575,000 AT&T Wireless Services, Inc., Note, 8.125%, 1,535,499 5/1/2012 5,000,000 SBC Communications, Inc., Unsecd. Note, 5.875%, 4,927,400 2/1/2012 1,500,000 Verizon New Jersey, Inc., Deb., 5.875%, 1/17/2012 1,438,680 Total 10,080,389 Consumer Staples--0.8% 2,000,000 Avon Products, Inc., Note, 6.90%, 11/15/2004 2,107,740 2,000,000 McDonald's Corp., Sr. Note, 6.00%, 6/23/2012 2,003,840 Total 4,111,580 Finance--17.5% 2,000,000 American General Finance Corp., MTN, 5.75%, 2,026,360 3/15/2007 1,900,000 American General Finance Corp., MTN, 5.91%, 1,966,158 6/12/2006 2,600,000 Bank One Corp., Note, 6.50%, 2/1/2006 2,752,620 5,000,000 BankUnited Financial Corp., Note, 5.40%, 2/2/2004 5,142,950 1,880,000 Bankers Trust Corp., Sub. Note, 7.375%, 5/1/2008 2,036,642 2,050,000 Bear Stearns Cos., Inc., Sr. Note, 6.15%, 3/2/2004 2,112,833 1,000,000 Caterpillar Financial Services Corp., Note, Series 1,034,230 F, 6.09%, 3/1/2004 2,000,000 Citigroup, Inc., Sr. Note, 6.75%, 12/1/2005 2,139,800 2,500,000 Commercial Credit Co., Unsecd. Note, 7.375%, 2,698,000 4/15/2005 3,200,000 Ford Motor Credit Co., Note, 7.375%, 10/28/2009 3,307,712 2,500,000 General Electric Capital Corp., Note, 8.85%, 2,787,425 4/1/2005 2,000,000 General Motors Acceptance Corp., Note, 6.38%, 2,065,040 1/30/2004 3,115,000 Goldman Sachs Group, Inc., MTN, Series B, 7.35%, 3,317,818 10/1/2009 2,000,000 Hartford Life, Inc., Note, 7.10%, 6/15/2007 2,120,420 5,250,000 Household Finance Corp., Unsecd. Note, 5.75%, 5,196,713 1/30/2007 2,000,000 International Lease Finance Corp., MTN, Series M, 2,042,698 5.54%, 3/21/2005 3,000,000 J.P. Morgan Chase & Co., Sub. Note, 6.75%, 2/1/2011 3,095,340 1,000,000 Key Bank, N.A., Sub. Note, 7.00%, 2/1/2011 1,056,040 $2,330,000 Kinder Morgan Energy Partners, LP, Bond, 7.40%, 3/15/2031 $2,375,878 2,500,000 Merrill Lynch & Co., Inc., MTN, Series B, 5.36%, 2,512,075 2/1/2007 1,100,000 Metropolitan Life Insurance Co., 7.00%, 11/1/2005 1,172,611 2,000,000 National City Corp., Sub. Note, 5.75%, 2/1/2009 1,971,960 2,075,000 National City Corp., Sub. Note, 6.875%, 5/15/2019 2,103,967 2,000,000 NationsBank Corp., Sub. Note, 6.875%, 2/15/2005 2,132,320 3,000,000 Salomon Smith Barney Holdings, Inc., Note, 5.875%, 3,108,930 3/15/2006 2,100,000 Salomon, Inc., Note, 6.375%, 10/1/2004 2,221,380 2,250,000 Simon DeBartolo Group, Inc., Sr. Note, 6.875%, 2 ,322,698 10/27/2005 1,750,000 Sprint Capital Corp., Note, 8.375%, 3/15/2012 1,740,883 3,500,000 Sprint Capital Corp., Company Guarantee, 6.875%, 2,764,055 11/15/2028 5,000,000 SunTrust Banks, Inc., Sub. Note, 6.00%, 2/15/2026 5,151,050 4,700,000 Union Planters Corp., Sub. Note, 6.50%, 3/15/2018 4,787,984 3,500,000 Washington Mutual, Inc., Sr. Note, 5.625%, 3,565,555 1/15/2007 3,300,000 Wells Fargo Bank, N.A., Sub. Note, 6.45%, 2/1/2011 3,419,724 1,750,000 Wells Fargo Financial, Inc., Sr. Note, 6.625%, 1,855,000 7/15/2004 Total 90,104,869 Technology--0.8% 4,201,000 Honeywell International, Inc., Note, 6.875%, 4,385,718 10/3/2005 Transportation--0.7% 1,150,000 Norfolk Southern Corp., Bond, 7.25%, 2/15/2031 1,197,449 2,000,000 United Parcel Service, Deb., 8.375%, 4/1/2020 2,388,540 Total 3,585,989 Utilities--1.9% 1,500,000 Consolidated Natural Gas Co., Sr. Note, 6.85%, 1,546,755 4/15/2011 3,250,000 Georgia Power Co., Note, 6.20%, 2/1/2006 3,343,600 5,000,000 National Fuel Gas Co., Note, 6.303%, 5/27/2008 4,938,800 Total 9,829,155 Total Corporate Bonds (identified cost 128,901,008 $143,845,479) Foreign Bonds--1.0% Finance--0.6% 3,000,000 Hanson Overseas B.V., Sr. Note, 7.375%, 1/15/2003 3,075,990 Utilities--0.4% 1,135,000 Ontario Hydro, Sr. Note, 6.10%, 1/30/2008 1,190,660 1,000,000 Petroleum Geo-Services ASA, Note, 7.50%, 3/31/2007 816,170 Total 2,006,830 Total foreign Bonds (identified cost 5,082,820 $5,272,783) U.S. Government Agencies--54.2% Federal Farm Credit Bank--0.3% 1,700,000 5.73%, 7/28/2003 1,758,055 Federal Home Loan Bank--0.6% 2,000,000 5.72%, 8/25/2003 2,071,980 1,000,000 6.52%, 4/2/2003 1,034,700 Total 3,106,680 Federal Home Loan Mortgage Corporation--12.2% 1,000,000 5.25%, 2/15/2004 1,034,230 8,270,000 5.50%, 8/15/2011 8,504,684 5,502,501 5.50%, 12/1/2031 5,299,569 3,912,570 5.50%, 1/1/2032 3,768,275 7,170,000 6.00%, 9/15/2014 7,468,550 5,326,042 6.00%, 2/1/2032 5,282,741 20,830,000 6.00%, 7/1/2032 20,660,860 1,000,000 6.05%, 9/15/2022 1,032,500 1,000,000 6.375%, 11/15/2003 1,048,480 $952,024 6.50%, 8/1/2013 $985,935 5,000,000 6.625%, 9/15/2009 5,402,600 2,000,000 6.75%, 3/15/2031 2,118,140 277,149 7.50%, 2/1/2023 292,392 121 8.00%, 1/1/2008 127 36 8.00%, 12/1/2008 38 16 8.00%, 1/1/2009 17 36 8.00%, 2/1/2009 37 248 8.00%, 4/1/2009 261 224 8.25%, 10/1/2007 237 14 8.50%, 7/1/2017 15 2 8.50%, 8/1/2017 2 2 9.50%, 2/1/2019 2 6 11.00%, 10/1/2010 6 304 11.00%, 10/1/2015 346 Total 62,900,044 Federal National Mortgage Association--35.6% 4,000,000 5.25%, 1/15/2009 4,018,640 2,000,000 5.50%, 3/15/2011 1,997,140 8,270,000 5.50%, 5/25/2012 8,491,676 19,720,904 5.50%, 2/1/2017 19,646,952 657,269 5.50%, 4/1/2017 654,805 6,494,394 5.897%, 4/1/2012 6,598,953 6,514,483 6.00%, 4/1/2013 6,669,136 1,125,640 6.00%, 6/1/2013 1,152,363 7,582,472 6.00%, 7/1/2013 7,762,479 2,284,926 6.00%, 8/1/2013 2,339,171 2,229,000 6.00%, 9/25/2014 2,256,149 9,000,000 6.00%, 12/25/2024 9,168,750 3,908,486 6.00%, 10/1/2031 3,875,498 3,323,516 6.10%, 3/1/2008 3,454,156 2,436,380 6.10%, 8/1/2008 2,536,102 957,682 6.20%, 9/1/2008 1,000,143 2,865,577 6.29%, 4/1/2008 3,003,129 1,843,117 6.445%, 6/1/2009 1,948,434 2,700,494 6.468%, 6/1/2009 2,830,708 2,467,244 6.489%, 6/1/2009 2,589,427 8,200,000 6.50%, 11/25/2007 8,474,126 4,186,133 6.50%, 7/1/2013 4,344,411 2,400,000 6.50%, 1/25/2014 2,504,232 11,459,834 6.50%, 2/1/2029 11,660,381 5,405,000 6.50%, 4/25/2031 5,445,116 4,905,000 6.625%, 9/15/2009 5,294,948 6,089,860 6.90%, 4/1/2006 6,514,889 4,269,216 6.935%, 4/1/2004 4,459,144 4,921,567 7.00%, 12/25/2021 5,063,062 3,453,459 7.10%, 12/1/2006 3,731,016 2,389,157 7.16%, 1/1/2010 2,621,337 299,656 7.50%, 12/1/2022 316,134 138,171 7.50%, 6/1/2023 145,771 642,090 7.50%, 1/1/2023 677,398 111,399 7.50%, 6/1/2023 117,526 303,446 7.50%, 5/1/2026 319,377 20,413,030 7.50%, 11/1/2031 21,357,129 $7,464,413 7.50%, 11/25/2031 $7,848,755 558,856 8.00%, 7/1/2025 596,752 829 8.00%, 11/1/2008 877 2,193 8.00%, 1/1/2009 2,330 11,802 8.00%, 9/1/2009 12,538 19,788 8.00%, 6/1/2022 21,261 136 8.50%, 2/1/2019 147 21 9.50%, 7/1/2016 23 Total 183,522,491 Government National Mortgage Association--5.4% 659,906 6.00%, 5/15/2009 675,368 5,482,993 6.00%, 1/15/2029 5,464,132 7,772,808 6.00%, 2/15/2029 7,742,601 533,251 6.50%, 5/15/2009 557,322 6,711,852 6.50%, 1/15/2029 6,841,861 2,828,129 6.50%, 3/15/2029 2,879,375 3,445,907 7.00%, 9/15/2029 3,568,650 1 7.50%, 12/15/2022 1 33 9.00%, 8/15/2016 36 Total 27,729,346 Total U.S. GOVERNMENT AGENCIES (identified 279,016,616 cost $256,567,181) U.S. Treasury obligations--8.2% U.S. Treasury Bond--3.1% 14,715,000 United States Treasury Bond, 6.25%, 8/15/2023 15,554,196 U.S. Treasury Notes--5.1% 12,500,000 United States Treasury Note, 4.75%, 2/15/2004 12,870,500 9,875,000 United States Treasury Note, 5.875%, 11/15/2004 10,431,950 2,850,000 United States Treasury Note, 6.125%, 8/15/2007 3,071,873 Total 26,374,323 Total U.S. TREASURY OBLIGATIONS (identified 41,928,519 cost $42,022,718) REGISTERED INVESTMENT COMPANIES-8.2% 226,000 2002 Target Term Trust, Inc. 3,317,680 70,900 Blackrock Strategic Term Trust, Inc. 694,111 32,868,613 Evergreen Institutional Money Market Fund 32,868,613 184,400 TCW/DW Term Trust 2002 1,962,016 333,600 TCW/DW Term Trust 2003 3,592,872 Total registered investment companies 42,435,292 (identified cost $41,916,607) Total Investments (identified cost $519,616,300) $527,936,946 ================================================================================ (See Notes to Portfolios of Investments) -------------------------------------------------------------------------------- WACHOVIA INTERMEDIATE FIXED INCOME FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount Asset-Backed Securities--6.9% Finance--6.9% $203,342 CIT Equipment Collateral 2001-1, Class A2, 5.02%, 4/20/2003 $203,952 1,500,000 Chase Manhattan Auto Owner Trust 2001-A, Class A4, 1,540,732 5.07%, 2/15/2008 1,345,000 DaimlerChrysler Auto Trust 2001-B, Class A4, 1,388,621 5.32%, 9/6/2006 1,135,000 Discover Card Master Trust I 1998-7, Class A, 1,170,106 5.600%, 5/16/2006 1,150,000 Discover Card Master Trust I 1999-6, Class A, 1,217,562 6.850%, 7/17/2007 1,475,000 Distribution Financial Services RV Trust 1999-1, 1,516,303 Class A5, 5.970%, 8/15/2013 1,000,000 Ford Credit Auto Owner Trust 2000-G, Class A4, 1,021,560 6.620%, 7/15/2004 605,000 MBNA Credit Card Master Note Trust 2001-C3, Class 615,019 C3, 6.550%, 12/15/2008 Total Asset-Backed Securities (identified cost 8,673,855 $8,501,933) Collateralized Mortgage Obligations--3.8% 2,000,000 (4) Credit Suisse First Boston USA, Inc., 2.110%, 2,001,114 8/25/2003 600,000 DLJ Mortgage Acceptance Corp. 1998-CG3, Class A1B, 655,181 7.340%, 10/10/2032 818,435 LB UBS Commercial Mortgage Trust, Class A1, 877,206 7.180%, 9/15/2019 1,073,875 Nomura Asset Securities Corp. 1998-D6, Class ACS1, 2,938 1.910% 3/17/2028 1,210,000 Residential Asset Mortgage Products, Inc. 1,214,331 2002-RZ1, Class A2, 4.300%, 4/25/2023 Total Collateralized Mortgage Obligations 4,750,770 (identified cost $4,739,655) Corporate Bonds--28.6% Basic Materials--0.5% 625,000 (3) Weyerhaeuser Co., Unsecd. Note, 5.500%, 3/15/2005 636,538 Communication Services--3.5% 300,000 AT&T Wireless Services, Inc., Note, 8.125%, 292,476 5/1/2012 375,000 CPC International, Inc., Unsecd. Note, 6.150%, 393,401 1/15/2006 1,000,000 GTE North, Inc., Deb., 5.650%, 11/15/2008 968,480 1,250,000 SBC Communications, Inc., Unsecd. Note, 5.875%, 1,231,850 2/1/2012 750,000 Verizon New Jersey, Inc., Deb., 5.875%, 1/17/2012 719,340 1,000,000 WorldCom, Inc., Sr. Note, 6.250%, 8/15/2003 810,000 Total 4,415,547 Consumer Cyclicals--0.6% 750,000 Coca-Cola Enterprises, Inc., 5.750%, 11/1/2008 760,477 Banking & Finance--16.8% 1,000,000 American General Finance Corp., MTN, 5.910%, 1,034,820 6/12/2006 1,000,000 Bank One Corp., Note, 6.500%, 2/1/2006 1,058,700 500,000 Citigroup, Inc., Sr. Note, 6.750%, 12/1/2005 534,950 425,000 DaimlerChrysler North America Holding Corp. , 448,277 Company Guarantee, 7.300%, 1/15/2012 2,000,000 Fleet Credit Card LLC, Sub. Note, 7.000%, 8/1/2003 2,089,140 1,255,000 Ford Motor Credit Co., Note, 7.375%, 10/28/2009 1,297,243 1,000,000 Ford Motor Credit Co., Sr. Unsub., 7.200%, 1,044,600 6/15/2007 750,000 General Electric Capital Corp., MTN, (Series A), 760,785 5.375%, 3/15/2007 1,300,000 General Motors Acceptance Corp., Note, 6.875%, 1,320,098 9/15/2011 790,000 Goldman Sachs Group, Inc., MTN, 7.350%, 10/1/2009 841,437 1,250,000 Household Finance Corp., Unsecd., Note, 5.750%, 1,237,313 1/30/2007 750,000 International Lease Finance Corp., MTN, (Series 766,012 M), 5.540%, 3/21/2005 660,000 Merrill Lynch & Co., Inc., MTN, (Series B), 663,188 5.360%, 2/1/2007 1,800,000 (3)(Morgan Stanley Tracer, Note, 5.870%, 3/1/2007 1,834,470 1,400,000 Morgan Stanley, Dean Witter & Co., Bond, 5.800%, 1,428,512 4/1/2007 1,000,000 Salomon Smith Barney Holdings, Inc., Note, 5.875%, 1,036,310 3/15/2006 750,000 (3) Sprint Capital Corp., Note, 8.375%, 3/15/2012 746,093 1,000,000 Union Planters Corp., Sub. Note, 6.500%, 3/15/2018 1,018,720 $1,000,000 Washington Mutual, Inc., Unsecd. Note, 5.625%, 1/15/2007 $1,018,730 900,000 Wells Fargo & Co., Sub. Note, 6.875%, 4/1/2006 973,674 Total 21,153,072 Health Care--1.0% 1,300,000 Smithkline Beecham Corp., Note, (Series A), 1,316,796 6.625%, 10/1/2005 Real Estate--0.4% 450,000 Simon DeBartolo Group, Inc., Sr. Note, 6.875%, 464,540 10/27/2005 Recreation--2.7% 3,250,000 Disney (Walt) Co., Sr. Note, (Series B), 6.750%, 3,445,032 3/30/2006 Technology--1.0% 460,000 AOL Time Warner, Inc., Note, 6.125%, 4/15/2006 455,165 825,000 Honeywell International, Inc., Note, 6.875%, 861,275 10/3/2005 Total 1,316,440 Utilities--2.1% 1,350,000 Dominion Resources, Inc., Sr. Note, 7.625%, 1,359,625 7/15/2005 200,000 Petroleum Geo-Services ASA, Note, 7.500%, 3/31/2007 163,234 1,000,000 SCANA Corp., MTN, (Series B), 7.440%, 10/19/2004 1,074,690 Total 2,597,549 Total Corporate Bonds (identified cost 36,105,991 $35,596,854) Government Agencies--31.9% Federal Farm Credit --0.9% 1,080,000 5.750%, 9/1/2005 1,130,123 Federal Home Loan Bank System--5.7% 2,000,000 4.790%, 8/27/2004 2,013,420 1,000,000 5.280%, 1/6/2004 1,033,470 1,000,000 5.575%, 2/17/2009 1,021,950 2,000,000 5.625%, 2/21/2006 2,046,080 1,030,000 8.090%, 12/28/2004 1,139,098 Total 7,254,018 Federal Home Loan Mortgage Corporation--5.7% 2,420,000 5.500%, 8/15/2011 2,488,674 1,207,204 5.500%, 11/1/2031 1,162,683 1,046,675 5.500%, 1/1/2032 1,008,074 1,530,000 6.000%, 7/1/2032 1,517,576 885,000 6.500%, 1/15/2031 903,116 130,000 6.500%, 5/15/2031 131,898 Total 7,212,021 Federal National Mortgage Association--15.5% 2,955,000 5.625%, 5/14/2004 3,084,754 2,207,116 6.000%, 8/1/2013 2,259,513 2,420,000 6.000%, 12/25/2014 2,484,941 905,000 6.000%, 3/25/2017 891,986 1,172,546 6.000%, 10/1/2031 1,162,649 1,775,000 6.500%, 11/25/2007 1,834,338 1,826,652 6.500%, 7/1/2013 1,895,718 1,398,893 6.740%, 1/1/2004 1,450,565 1,214,659 7.000%, 9/1/2027 1,256,407 1,639,221 7.500%, 11/1/2031 1,715,035 1,408,908 7.500%, 11/25/2031 1,481,453 Total 19,517,359 Government National Mortgage Association--3.2% 1,121,319 6.000%, 2/15/2029 1,116,060 1,004,403 6.000%, 2/15/2029 1,002,230 1,886,092 6.000%, 3/15/2029 1,877,246 Total 3,995,536 Student Loan Marketing Association--0.9% 1,173,970 1.970%, 10/25/2010 $1,173,970 Total Government Agencies (identified cost 40,283,027 $39,480,041) (2) U.S. Treasury OBLIGATIONS--22.5% United States Treasury Notes --22.5% 1,000,000 5.875%, 9/30/2002 1,013,510 2,380,000 5.875%, 11/15/2004 2,514,232 5,375,000 6.000%, 8/15/2009 5,760,656 12,435,000 6.125%, 8/15/2007 13,403,065 2,000,000 6.250%, 2/15/2003 2,058,360 3,705,000 6.375%, 8/15/2002 3,739,716 Total U.S. Treasury OBLIGATIONS (identified 28,489,539 cost $28,265,861) REGISTERED INVESTMENT COMPAnies-6.5% 26,155 2002 Target Term Trust, Inc. 383,955 155,667 Blackrock Strategic Term Trust, Inc. 1,523,980 2,201,826 Evergreen Institutional Money Market Fund 2,201,826 23,100 Hyperion 2002 Term Trust 228,690 50,000 TCW/DW Term Trust 2002 532,000 314,400 TCW/DW Term Trust 2003 3,386,088 Total REGISTERED INVESTMENT COMPANIES 8,256,539 (identified cost $7,577,832) Total Investments (identified cost $124,162,176 ) $126,559,721 ================================================================================ (See Notes to Portfolios of Investments) ------------------------------------------------------------------------------- WACHOVIA SHORT-TERM FIXED INCOME FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount Asset-Backed Securities--1.9% $500,000 MBNA Master Credit Card Trust 1998-J, Class A, 5.250%, 2/15/2006 $509,530 317,854 West Penn Funding LLC 1999-A, Class A2, 6.630%, 327,647 12/26/2005 Total Asset-Backed Securities (identified cost 837,177 $841,546) Collateralized Mortgage Obligations--1.1% Finance--1.1% 450,000 DLJ Mortgage Acceptance Corp. 1998-CF1, 7.340%, 491,386 10/10/2032 (IDENTIFIED COST $487,547) Corporate Bonds--42.1% Capital Goods--4.7% 2,000,000 Eaton Corp., Note, 7.050%, 9/4/2002 2,023,408 Communication Services--0.9% 400,000 SBC Communications, Inc., Note, 5.875%, 2/1/2012 394,192 Consumer Staples--2.4% 1,000,000 Avon Products, Inc., Note, 6.900%, 11/15/2004 1,053,870 Finance--24.9% 450,000 American General Finance Corp., Note, 5.750%, 455,931 3/15/2007 2,000,000 Bank of America Corp., Sr. Note, 7.125%, 9/15/2006 2,179,320 450,000 Citigroup, Inc., Sr. Note, 6.750%, 12/1/2005 481,455 1,000,000 Distribution Financial Services RV Trust, 6.480%, 1,040,583 10/15/2013 2,000,000 Ford Motor Credit Co., Note, 7.600%, 8/1/2005 2,104,060 2,000,000 General Motors Acceptance Corp., Note, 6.380%, 2,065,040 1/30/2004 1,000,000 Household Finance Corp., Sr. Note, 6.125%, 1,003,110 7/15/2002 700,000 International Lease Finance Corp., Note, 5.500%, 715,757 6/7/2004 225,000 Merrill Lynch & Co., Inc., Note, 5.360%, 2/1/2007 226,087 550,000 Morgan Stanley, Dean Witter & Co., 5.800%, 4/1/2007 561,201 Total 10,832,544 Technology--4.5% 1,945,000 BellSouth Telecommunications, Inc., Note, 6.000%, 1,945,973 6/15/2002 Utilities--4.7% 1,000,000 Dominion Resources, Inc., Sr. Note, 7.600%, 1,039,160 7/15/2003 1,000,000 Gulf Power Co., Sr. Note, Series C, 4.690%, 1,011,630 8/1/2003 Total 2,050,790 Total Corporate Bonds (identified cost 18,300,777 $17,836,907) u.s. Government Agencies--21.5% Federal Home Loan Bank--15.3% 6,000,000 5.735%, 7/22/2003 6,208,320 415,000 6.000%, 9/15/2014 432,280 Total 6,640,600 Federal National Mortgage Association--6.2% 790,000 5.750%, 1/25/2013 816,514 600,000 6.000%, 9/25/2014 607,308 495,064 6.585%, 6/1/2009 527,050 699,789 7.500%, 11/25/2031 735,821 Total 2,686,693 Total u.s. Government Agencies (identified 9,327,293 cost $9,103,729) U.S. Treasury obligations--28.5% United States Treasury Notes--28.5% 10,610,000 2.750%, 9/30/2003 10,628,143 $960,000 5.250%, 5/15/2004 $997,642 695,000 6.125%, 8/15/2007 749,106 Total U.S. Treasury obligations (identified cost $12,327,817) $12,374,891 REGISTERED INVESTMENT COMPANY--3.8% 1,629,313 Evergreen Institutional Money Market Fund (AT 1,629,313 AMORTIZED COST) Total Investments (identified cost $42,226,859) $42,960,837 ================================================================================ (See Notes to Portfolios of Investments) -------------------------------------------------------------------------------- WACHOVIA GEORGIA MUNICIPAL BOND FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount Credit Rating* Long-Term Municipals--95.8% Georgia--92.6% $935,000 Athens-Clarke County, GA, Water & Sewage, Refunding Revenue Bonds, 2.55% (Original Issue Yield: 2.55%), 1/1/2004 AA- $939,871 1,255,000 Athens-Clarke County, GA, Water & Sewage, 1,293,993 Refunding Revenue Bonds, 4.00% (Original Issue Yield: 2.90%), 1/1/2005 AA- 1,000,000 Atlanta & Fulton County, GA, Recreation 1,023,400 Authority, Revenue Bonds, 5.375% (MBIA INS)/(Original Issue Yield: 5.70%), 12/1/2021 AAA 1,300,000 Atlanta, GA, Airport Facilities Refunding 1,490,879 Revenue Bonds, (Series A) , 6.50% (AMBAC INS), 1/1/2009 AAA 1,000,000 Atlanta, GA, Airport Facilities Revenue 1,153,270 Bonds, (Series A), 6.50% (AMBAC INS)/(Original Issue Yield: 5.85%), 1/1/2010 AAA 2,000,000 Atlanta, GA, Downtown Development 2,066,500 Authority, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.10%), 10/1/2006 AA 1,500,000 Atlanta, GA, Downtown Development 1,670,220 Authority, Revenue Bonds, 6.75% (Trust Co. Bank LOC)/(Original Issue Yield: 6.95%), 11/1/2014 Aa3 1,000,000 Atlanta, GA, Water & Sewer, (Series A), 1,077,590 5.00% (FGIC INS)/(Original Issue Yield: 4.32%), 11/1/2008 AAA 2,000,000 Atlanta, GA, Water & Sewer, Refunding 2,200,560 Revenue Bonds, 6.00% (FGIC INS)/(Original Issue Yield: 4.75%), 1/1/2006 AAA 510,000 Atlanta, GA, Urban Residential Finance 545,980 Authority, Dormitory Facility Refunding Revenue Bonds, 5.70% (Morehouse College)/(MBIA INS), 12/1/2010 AAA 2,250,000 Augusta, GA, Water & Sewage, Revenue Bonds, 2,355,075 5.15% (FSA INS), 10/1/2015 AAA 1,980,000 Augusta, GA, Water & Sewage, Revenue Bonds, 2,062,150 5.25% (FSA INS), 10/1/2017 AAA 250,000 Burke County, GA, Development Authority, 266,290 Refunding Revenue Bonds, 7.80% (MBIA INS)/(Original Issue Yield: 7.917%), 1/1/2008 AAA 700,000 Carrollton, GA, (GO UT), 3.75%, 7/1/2008 Aa2 704,340 1,500,000 Cherokee County, GA, School System, GO UT, 1,581,765 5.00% (Original Issue Yield: 4.47%), 2/1/2013 AA 1,000,000 Cherokee County, GA, School System, GO UT, 1,052,780 5.25%, 8/1/2016 AA 1,285,000 Clayton County, GA, Development Authority, 1,329,435 (Series A), 5.375% (MBIA INS)/(Original Issue Yield: 4.96%), 7/1/2020 Aaa 1,760,000 Clayton County, GA, Water Authority, 1,854,917 Revenue Bonds, 5.00%, 5/1/2013 AA 1,000,000 Cobb County, GA, Refunding Revenue Bonds, 1,065,800 5.125% (Original Issue Yield: 5.55%), 7/1/2008 AAA 1,250,000 Cobb-Marietta, GA, Coliseum & Exhibit Hall 1,376,087 Authority, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.60%), 10/1/2012 AAA 2,000,000 Coweta County, GA, Development Authority, 2,184,760 Refunding Revenue Bonds, 5.75% (Newnan, GA, Water Sewage & Light Commission Public Utility)/(Original Issue Yield: 5.29%), 1/1/2015 Aaa 1,000,000 Dalton, GA, Building Authority, Refunding 1,064,380 Revenue Bonds, 5.00% (Original Issue Yield: 3.78%), 7/1/2005 A+ 1,000,000 DeKalb County, GA, Development Authority, 1,014,990 (Series A), 5.25% (Emory University Project - GO of University LOC)/(Original Issue Yield: 4.65%), 11/1/2002 AA 3,075,000 DeKalb County, GA, Development Authority, 3,328,780 Refunding Bonds (Series A), 6.00% (Original Issue Yield: 6.086%), 10/1/2014 AA 2,000,000 DeKalb County, GA, School District, GO UT 2,305,880 Bonds, (Series A), 6.25%, 7/1/2010 AA 1,000,000 DeKalb County, GA, School District, GO UT 1,057,450 Refunding Bonds, 5.60% (Original Issue Yield: 5.70%), 7/1/2008 AA 750,000 DeKalb County, GA, Special Recreation Tax 797,588 District, GO UT, 5.00% (Original Issue Yield: 4.12%), 12/1/2013 AA+ $1,000,000 DeKalb County, GA, Water & Sewer, Refunding Revenue Bonds, 5.375% (Original Issue Yield: 5.40%), 10/1/2018 AA $1,046,230 1,000,000 DeKalb County, GA, Water & Sewer, Refunding 1,040,870 Revenue Bonds, 5.375% (Original Issue Yield: 5.45%), 10/1/2019 AA 1,000,000 DeKalb County, GA, Water & Sewer, Refunding 1,031,770 Revenue Bonds, 5.375% (Original Issue Yield: 5.48%), 10/1/2020 AA 5,020,000 DeKalb County, GA, Water & Sewer, Revenue 5,408,498 Bonds, 5.625% (Original Issue Yield: 5.32%), 10/1/2017 AA 500,000 Fayette County, GA, School District, GO UT, 519,295 4.625% (Original Issue Yield: 4.73%), 3/1/2011 AA 1,600,000 Fayette County, GA, School District, GO UT, 1,747,040 6.25%, 3/1/2005 Aa3 875,000 Floyd County, GA, Refunding Revenue Bonds, 962,780 5.50% (MBIA INS)/(Original Issue Yield: 4.38%), 7/1/2012 1,000,000 Forsyth County, GA, 5.50% (Original Issue 1,046,740 Yield: 5.80%), 3/1/2020 AA- 1,000,000 Forsyth County, GA, School District, GO UT, 1,214,940 6.75%, 7/1/2016 AA- 1,880,000 Fulton County, GA, Building Authority, 1,960,220 Refunding Bonds (Series A), 5.80% (Original Issue Yield: 5.90%), 1/1/2005 AA 1,200,000 Fulton County, GA, Development Authority, 1,335,984 (Series A), 5.75% (Original Issue Yield: 4.80%), 11/1/2013 AA+ 1,000,000 Fulton County, GA, Facilities Corp. 1,057,870 Certificates of Participation, 5.50% (Original Issue Yield: 5.88%), 11/1/2018 AAA 1,800,000 Fulton County, GA, School District, GO UT, 1,936,764 5.25%, 1/1/2014 AA 1,000,000 Fulton County, GA, School District, GO UT, 1,074,910 5.25%, 1/1/2015 AA 2,015,000 Gainesville, GA, Water & Sewer, Revenue 2,185,711 Bonds, 5.50% (FSA INS), 11/15/2014 AAA 2,175,000 Georgia Municipal Association, Certificates 2,339,582 of Participation, 5.50% (AMBAC INS)/(Original Issue Yield: 5.22%), 12/1/2016 AAA 2,220,000 Georgia Municipal Association, Certificates 2,376,110 of Participation, 5.50% (AMBAC INS)/(Original Issue Yield: 5.28%), 12/1/2017 AAA 2,500,000 Georgia Municipal Association, Certificates 2,658,100 of Participation, 5.50% (AMBAC INS)/(Original Issue Yield: 5.32%), 12/1/2018 AAA 1,780,000 Georgia State, (Series A), 6.00%, 4/1/2015 AAA 2,050,257 1,000,000 Georgia State, (Series B), 5.75%, 3/1/2010 AAA 1,118,740 1,000,000 Georgia State, (Series C), 5.00% (Original 1,076,130 Issue Yield: 5.20%), 7/1/2009 AAA 1,970,000 Georgia State, (Series C), 6.00% (Original 2,218,752 Issue Yield: 5.17%), 7/1/2012 AAA 1,140,000 Georgia State, (Series C), 6.25% (Original 1,324,224 Issue Yield: 5.60%), 8/1/2011 AAA 1,250,000 Georgia State, (Series C), 6.25% (Original 1,466,100 Issue Yield: 4.95%), 8/1/2013 AAA 1,000,000 Georgia State, (Series C), 7.25% (Original 1,128,960 Issue Yield: 4.95%), 7/1/2005 AAA 1,750,000 Georgia State, (Series C), 7.25% (Original 2,084,530 Issue Yield: 5.25%), 7/1/2008 AAA 1,200,000 Georgia State, (Series D), 5.25% (Original 1,300,380 Issue Yield: 4.33%), 10/1/2014 AAA 2,000,000 Georgia State, GO UT, (Series D), 6.80%, 2,239,300 8/1/2005 AAA 1,005,000 Georgia State, GO UT, (Series B), 7.20%, 1,148,062 3/1/2006 AAA 765,000 Georgia State, GO UT, (Series C), 7.25%, 841,033 7/1/2004 AAA 500,000 Georgia State, GO UT, (Series C), 6.50% 560,875 (Original Issue Yield: 6.63%), 4/1/2006 AAA 4,150,000 Georgia State HFA, Refunding Revenue Bonds, 4,183,034 5.45% (Original Issue Yield: 5.449%), 12/1/2022 AAA 750,000 Griffin-Spalding County, GA, School System, 762,683 GO UT, 4.00% (Original Issue Yield: 3.84%), 2/1/2008 AA 1,000,000 Gwinnett County, GA, Certificates of 1,011,230 Participation, 8.50% (Original Issue Yield: 6.50%), 8/1/2002 AAA 1,820,000 Gwinnett County, GA, Housing Authority, 1,903,684 Refunding Revenue Bonds (Series A), 5.50% (FNMA COL), 4/1/2026 AAA 2,000,000 Gwinnett County, GA, Water and Sewer 2,039,500 Authority, 5.00% (Original Issue Yield: 5.25%), 8/1/2017 AAA $1,000,000 Henry County, GA, School District, GO UT, 5.125% (Original Issue Yield: 4.64%), 8/1/2014 AA- $1,051,520 1,000,000 Henry County, GA, School District, GO UT 1,154,830 (Series A), 6.45%, 8/1/2011 AA- 1,000,000 Henry County, GA, Water & Sewer Authority, 1,039,210 Refunding Revenue Bonds, 5.625% (FGIC INS)/(Original Issue Yield: 5.87%), 2/1/2030 AAA 1,000,000 Macon-Bibb County, GA, Hospital Authority, 1,085,690 Refunding Revenue Bonds, (Series A), 5.30% (FGIC INS), 8/1/2011 AAA 500,000 Meriwether County, GA, School District, GO 577,085 UT, 7.00% (FSA INS), 2/1/2007 AAA 1,000,000 Metropolitan Atlanta Rapid Transit 1,160,410 Authority, (Series P), 6.25% (AMBAC INS)/(Original Issue Yield: 6.35%), 7/1/2011 AAA 1,000,000 Municipal Electric Authority of Georgia, 1,072,580 (Series A), 5.25% (MBIA INS)/(Original Issue Yield: 4.64%), 1/1/2013 AAA 1,000,000 Paulding County, GA, School District, GO 1,162,690 UT, (Series A), 6.625% (Original Issue Yield: 6.75%), 2/1/2009 A 300,000 Peachtree County GA, Water & Sewer 13,833 Authority, (Series A), 5.45% (Original Issue Yield: 5.55%), 3/1/2017 AA 1,150,000 Private Colleges & Universities Facilities 3,182,292 of GA, (Series A), 5.50% (Original Issue Yield: 5.76%), 11/1/2025 AA 1,000,000 Private Colleges & Universities Facilities 1,105,550 of GA, (Series A), 5.75% (Original Issue Yield: 5.30%), 11/1/2012 AA 1,000,000 Private Colleges & Universities Facilities 1,089,570 of GA, (Series A), 5.75% (Original Issue Yield: 5.45%), 11/1/2017 AA 1,000,000 Private Colleges & Universities Facilities 1,017,630 of GA, Refunding Revenue Bonds, 5.625% (Agnes Scott College Project)/(Original Issue Yield: 5.70%), 6/1/2023 AA 1,000,000 Private Colleges & Universities Facilities 1,018,240 of GA, Refunding Revenue Bonds, 6.00% (MBIA INS)/(Original Issue Yield: 6.00%), 11/1/2002 AAA 2,000,000 Richmond County, GA, Public Facilities, 2,208,860 Inc., Certificates of Participation, 6.10% (AMBAC INS), 11/1/2020 Aaa 1,000,000 Rockdale County, GA, School District, GO 1,094,180 UT, 6.20%, 1/1/2006 A1 1,500,000 Rockdale County, GA, School District, GO 1,649,505 UT, 6.30%, 1/1/2007 A1 Total 117,249,293 Maryland--1.5% 850,000 Howard County, MD, (Series A), 5.25% 911,030 (Original Issue Yield: 4.40%), 8/15/2014 AAA 1,000,000 Maryland State Transportation Authority, 1,047,780 Revenue Bonds, 5.375% (AMBAC INS)/(Original Issue Yield: 4.75%), 3/1/2015 AAA Total 1,958,810 South Carolina--1.7% 2,195,000 Tobacco Settlement Revenue Management 2,168,528 Authority, SC, (Series B), 6.00% (Original Issue Yield: 6.159%), 5/15/2022 A Total Long-Term Municipals (IDENTIFIED 121,376,631 COST $117,496,185) registered investment company--3.9% 4,954,082 Evergreen Institutional Municipal Money 4,954,082 Market Fund (AT AMORTIZED COST) Total Investments (identified cost $122,450,267) $126,330,713 ================================================================================ (See Notes to Portfolios of Investments) Shares Value -------------------------------------------------------------------------------- WACHOVIA NORTH CAROLINA MUNICIPAL BOND FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal ---------- Credit Amount Rating* Value -------------------------------------------------------------------------------- Long-Term Municipals--99.5% North Carolina--80.5% $1,375,000 Brunswick County, NC, GO UT, 5.00% (FGIC INS)/(Original Issue Yield: 4.89%), 5/1/2016 AAA $1,424,569 1,030,000 Buncombe County, NC, GO UT Bonds, 4.90% 1,064,134 (Original Issue Yield: 5.15%), 4/1/2014 AA 1,650,000 Burlington, NC, GO UT, 5.20% (AMBAC 1,767,348 INS)/(Original Issue Yield: 5.10%), 2/1/2013 AAA 1,500,000 Cabarrus County, NC, Refunding Revenue 1,609,425 Bonds, 5.50% (Original Issue Yield: 4.90%), 4/1/2015 AA- 1,400,000 Carteret County, NC, GO UT Bonds, 5.40% 1,469,328 (MBIA INS)/(Original Issue Yield: 5.60%), 5/1/2015 AAA 1,300,000 Carteret County, NC, GO UT School 1,373,437 Improvements, 5.40% (MBIA INS)/(Original Issue Yield: 5.55%), 5/1/2013 AAA 1,305,000 Carteret County, NC, GO UT School 1,373,878 Improvements, 5.40% (MBIA INS)/(Original Issue Yield: 5.55%), 5/1/2014 AAA 1,000,000 Cary, NC, GO UT, 5.00% (Original Issue 1,052,250 Yield: 4.66%), 3/1/2014 AAA 1,340,000 Charlotte, NC Water & Sewer System , 1,438,262 Revenue Bonds, 5.00% (Original Issue Yield: 4.70%), 6/1/2008 AA+ 2,000,000 Charlotte, NC Water & Sewer System , 2,118,240 Revenue Bonds, 5.125% (Original Issue Yield: 5.15%), 6/1/2013 AA+ 1,000,000 Charlotte, NC, GO UT, 5.25% (Original Issue 1,064,810 Yield: 4.85%), 2/1/2013 AAA 1,000,000 Charlotte, NC, GO UT, 5.50% (Original Issue 1,092,950 Yield: 5.35%), 6/1/2014 AAA 1,600,000 Charlotte, NC, GO UT, 5.50% (Original Issue 1,739,632 Yield: 5.41%), 6/1/2015 AAA 4,490,000 Charlotte, NC, GO UT, 5.60% (Original Issue 4,744,358 Yield: 5.77%), 6/1/2025 AAA 1,000,000 Charlotte, NC, COPs (Series B), 5.00% 1,064,460 (Original Issue Yield: 4.03%), 6/1/2011 AA+ 1,100,000 Charlotte, NC (Series C), 4.80%, 7/1/2012 1,110,912 (@100) AAA 7,655,000 Charlotte, NC, 5.25% (Original Issue Yield: 7,903,941 5.03%), 2/1/2020 AAA 7,290,000 Charlotte, NC, 5.25% (Original Issue Yield: 7,508,773 5.05%), 2/1/2021 AAA 3,695,000 Charlotte, NC, COPs, 5.50% (Original Issue 3,851,816 Yield: 5.55%), 12/1/2020 AA+ 3,000,000 Charlotte, NC, COPs, 5.50% (Original Issue 3,093,390 Yield: 5.61%), 6/1/2025 AA+ 1,090,000 Charlotte, NC, COPs, Public Safety 1,134,319 Facilities (Series D), 5.50% (Original Issue Yield: 5.55%), 6/1/2020 AA+ 840,000 Charlotte, NC, GO UT Refunding Bonds, 5.00% 896,675 (Original Issue Yield: 5.15%), 2/1/2012 AAA 3,000,000 Charlotte, NC, GO UT Refunding Bonds, 3,156,660 5.40%, 6/1/2012 AAA 2,205,000 Charlotte, NC, GO UT Refunding Bonds, 5.50% 2,234,260 (Original Issue Yield: 5.55%), 7/1/2004 AAA 1,525,000 Charlotte, NC, Storm Water Fee, 5.25%, 1,611,849 6/1/2016 AA+ 715,000 Charlotte, NC, Storm Water Fee, 5.25%, 751,301 6/1/2017 AA+ 1,000,000 Charlotte, NC, Storm Water Fee, 6.00%, 1,145,650 6/1/2025 AA+ 1,000,000 Charlotte-Mecklenburg Hospital Authority, 995,330 NC, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.30%), 1/15/2017 AA 1,000,000 Charlotte-Mecklenburg Hospital Authority, 1,066,710 NC, Revenue Bonds, 5.60% (Original Issue Yield: 5.70%), 1/15/2009 AA 3,750,000 Columbus County, NC Industrial Facilities & 3,708,262 Pollution Control Financing Authority, Revenue Bonds (Series 1996A), 5.85% (International Paper Co.), 12/1/2020 BBB 2,375,000 Concord, NC (Series B), 5.00% (Original 2,418,629 Issue Yield: 5.12%), 12/1/2017 AAA 1,000,000 Dare County, NC, 5.125% (AMBAC 1,024,520 INS)/(Original Issue Yield: 5.25%), 6/1/2018 AAA 1,000,000 Durham County, NC, COPs, 6.00% (Original Issue Yield: 6.15%), 5/1/2014 AA+ $1,107,910 1,500,000 Durham County, NC, Refunding Bond, 5.00% 1,552,965 (Original Issue Yield: 5.18%), 5/1/2014 AA+ 1,000,000 Durham County, NC, Refunding Bond, 5.00%, 1,072,880 5/1/2007 AA+ 2,130,000 Durham County, NC, Refunding Bonds, 5.00%, 2,262,465 5/1/2005 AA+ 1,640,000 Durham, NC, 5.00% (Original Issue Yield: 1,737,760 4.47%), 4/1/2011 AA+ 1,270,000 Durham, NC, 5.25% (Original Issue Yield: 1,354,823 4.70%), 4/1/2013 AA+ 1,020,000 Durham, NC, 5.25% (Original Issue Yield: 1,071,490 4.90%), 4/1/2015 AA+ 2,000,000 Durham, NC, GO UT Revenue Bonds, 5.80% 2,117,960 (Original Issue Yield: 5.95%), 2/1/2012 AAA 2,000,000 Forsyth County, NC , Public Facility & 2,053,540 Equipment Project, 5.125% (Original Issue Yield: 4.98%), 10/1/2017 AA+ 1,475,000 Gaston County, NC, GO UT, 5.50% (FGIC LOC), 1,626,084 3/1/2014 AAA 1,100,000 Gaston County, NC, GO UT Bonds, 5.20% 1,144,451 (AMBAC INS)/(Original Issue Yield: 5.40%), 3/1/2015 AAA 2,115,000 Gaston County, NC, GO UT Bonds, 5.20% 2,193,022 (AMBAC INS)/(Original Issue Yield: 5.40%), 3/1/2016 AAA 2,000,000 Gaston County, NC, GO UT, 5.25% (AMBAC 2,091,020 INS), 6/1/2018 AAA 2,000,000 Gaston County, NC, GO UT, 5.25% (AMBAC 2,078,820 INS), 6/1/2019 AAA 1,500,000 Gaston County, NC, GO UT, 5.25% (AMBAC 1,544,880 INS), 6/1/2020 AAA 2,000,000 Greensboro, NC, COP (Series A), 5.625% 2,247,220 (Original Issue Yield: 6.05%), 12/1/2015 A1 1,065,000 Greensboro, NC Enterprise System (Series 1,092,402 A), 5.00% (Original Issue Yield: 5.04%), 6/1/2016 AA- 1,465,000 Greensboro, NC Enterprise System, Revenue 1,632,376 Bonds, 6.50%, 6/1/2006 AA- 1,000,000 Greensboro, NC Enterprise System, Water & 1,031,090 Sewer Improvements (Series A), 5.30% (MBIA INS)/(Original Issue Yield: 5.518%), 6/1/2015 AAA 6,650,000 Greensboro, NC Enterprise System, Water & 6,801,886 Sewer Improvements (Series A), 5.375% (Original Issue Yield: 5.594%), 6/1/2019 AA- 1,500,000 Greenville, NC, Recreational Facility 1,518,630 Improvements, 4.875% (Original Issue Yield: 5.03%), 6/1/2016 AAA 550,000 Guilford County, NC (Series B), 5.10% 584,435 (Original Issue Yield: 5.23%), 10/1/2014 AAA 1,875,000 Harnett County, NC, 5.375%, 12/1/2017 AAA 1,989,019 2,150,000 Haywood County, NC Industrial Faculties & 2,069,654 Pollution Control Financing Authority (Series A) Revenue Bonds, 5.75% (Champion International Corp.)/(Original Issue Yield: 5.975%), 12/1/2025 BBB 1,630,000 Henderson County, NC, 5.00% (Original Issue 1,689,593 Yield: 4.80%), 3/1/2015 AAA 2,025,000 Henderson, NC Enterprise System, 5.25% 2,100,775 (AMBAC INS)/(Original Issue Yield: 5.02%), 5/1/2018 AAA 1,980,000 Iredell County, NC Iredell Memorial 2,067,476 Hospital, 5.125% (AMBAC INS)/(Original Issue Yield: 5.30%), 10/1/2013 AAA 5,000,000 Iredell County, NC, COP, 6.125% (FGIC 5,118,100 INS)/(Original Issue Yield: 6.23%), 6/1/2007 AAA 1,000,000 Johnston County, NC, GO UT, 5.00% (FGIC 1,053,950 INS)/(Original Issue Yield: 4.83%), 6/1/2014 AAA 1,130,000 Lee County, NC, GO UT, 5.00% (MBIA 1,197,947 INS)/(Original Issue Yield: 5.05%), 4/1/2009 AAA 1,725,000 Lee County, NC, GO UT, 5.00% (MBIA 1,821,014 INS)/(Original Issue Yield: 5.15%), 4/1/2010 AAA 2,700,000 Lee County, NC, GO UT, 5.00% (MBIA 2,847,960 INS)/(Original Issue Yield: 5.20%), 4/1/2011 AAA 5,000,000 Martin County, NC IFA (Series 1993), Weekly 5,000,000 VRDNs (Weyerhaeuser Co.) BBB 4,975,000 Martin County, NC IFA, PCR Bonds, 6.80% 5,200,069 (Weyerhaeuser Co.), 5/1/2024 BBB 5 3,500,000 Mecklenburg County, NC, (Series B), 4.40% 3,495,695 (Original Issue Yield: 4.65%), 2/1/2014 AAA 6,500,000 Mecklenburg County, NC, (Series D), 5.00%, 4/1/2013 AAA $6,880,510 4,405,000 Mecklenburg County, NC, GO UT Bonds, 4.80% 4,615,515 (Original Issue Yield: 4.90%), 3/1/2009 AAA 7,175,000 Mecklenburg County, NC, GO UT, 4.40%, 7,384,080 2/1/2010 AAA 1,175,000 Moore County, NC, GO UT Public 1,214,762 Improvements, 4.90% (MBIA INS)/(Original Issue Yield: 4.95%), 6/1/2015 AAA 1,600,000 Moore County, NC, GO UT Public Improvement, 1,662,720 4.90% (MBIA INS)/(Original Issue Yield: 4.90%), 6/1/2014 AAA 1,640,000 New Hanover County, NC, COPs, 5.25% (AMBAC 1,700,975 INS)/(Original Issue Yield: 4.84%), 12/1/2011 (@101) AAA 1,195,000 New Hanover County, NC, COPs, 4.80% 1,269,544 (Original Issue Yield: 4.90%), 12/1/2009 AAA 1,250,000 New Hanover County, NC, COPs, 4.90% (MBIA 1,320,200 INS)/(Original Issue Yield: 5.00%), 12/1/2010 AAA 1,315,000 New Hanover County, NC, COPs, 5.00% (MBIA 1,387,706 INS)/ -------------------------------------------- (Original Issue Yield: 5.05%), 12/1/2011 AAA 2,475,000 New Hanover County, NC, GO UT Bonds, 4.80%, 1,494,330 2/1/2017 AA- 1,000,000 North Carolina Eastern Municipal Power 2,134,030 Agency, (Series B), 7.00% (Original Issue Yield: 6.25%), 1/1/2008 A 100,000 North Carolina Educational Facilities 103,977 Finance Agency, Refunding Revenue Bonds, 6.00% (Davidson College)/(Original Issue Yield: 6.20%), 12/1/2012 AA 895,000 North Carolina HFA, (Series 10-B), 4.90% 906,948 (AMBAC INS)/(Original Issue Yield: 4.90%), 7/1/2015 AAA 5,000,000 North Carolina HFA, (Series 9-A), 5.80% 5,142,250 (Original Issue Yield: 5.799%), 1/1/2010 (@100) AA 5,750,000 North Carolina HFA, (Series 9-A), 5.875% 5,876,558 (Original Issue Yield: 5.874%), 1/1/2010 (@100) AA 1,600,000 North Carolina HFA, Revenue Bond, (Series 1,607,696 14-A), 4.70% (AMBAC INS), 7/1/2013 AAA 915,000 North Carolina HFA, Revenue Bond, (Series 919,383 14-A), 4.80% (AMBAC INS), 7/1/2014 AAA 2,135,000 North Carolina HFA, Revenue Bond, (Series 2,144,650 14-A), 5.35% (AMBAC INS), 1/1/2022 AAA 770,000 North Carolina Medical Care Commission, 809,763 Refunding Revenue Bond, 5.00% (Original Issue Yield: 5.03%), 10/1/2004 AA 2,000,000 North Carolina Medical Care Commission, 2,091,080 Refunding Revenue Bond, 5.40% (Original Issue Yield: 5.75%), 2/15/2011 A+ 5,000,000 North Carolina Medical Care Commission, 5,056,300 Refunding Revenue Bond, 5.50% (Original Issue Yield: 6.10%), 5/1/2015 AA- 2,550,000 North Carolina Medical Care Commission, 2,626,271 Refunding Revenue Bond, 6.375% (FSA INS)/(Original Issue Yield: 6.49%), 8/15/2012 AAA 1,355,000 North Carolina Medical Care Commission, 1,399,837 Refunding Revenue Bonds, 4.625% (REX Healthcare)/(Original Issue Yield: 4.93%), 6/1/2011 AAA 1,750,000 North Carolina Medical Care Commission, 1,744,715 Refunding Revenue Bonds, 5.25% (Original Issue Yield: 5.70%), 5/1/2021 AA- 1,525,000 North Carolina Medical Care Commission, 1,611,376 Revenue Refunding Bonds, 5.20% (Wilson Memorial Hospital)/(AMBAC INS)/(Original Issue Yield: 5.35%), 11/1/2010 AAA 10,000,000 North Carolina Municipal Power Agency No. 1,007,800 1, Refunding Revenue Bonds, 5.50% (Original Issue Yield: 7.00%), 1/1/2013 AAA 4,120,000 North Carolina State, GO UT, 4.60% 4,227,738 (Original Issue Yield: 4.63%), 4/1/2013 AAA 15,600,000 North Carolina State (Series A), 4.75% 16,334,292 (Original Issue Yield: 4.73%), 4/1/2011 AAA 13,010,000 North Carolina State (Series A), 5.00% 13,475,758 (Original Issue Yield: 5.00%), 4/1/2016 AAA 2,300,000 North Carolina State (Series A), 5.20% 2,417,691 (Original Issue Yield: 5.40%), 3/1/2014 AAA 170,000 North Carolina State (Series A), 5.25% 179,194 (Original Issue Yield: 5.45%), 3/1/2016 AAA 5,000,000 North Carolina State, GO UT (Series A), 5.20% (Original Issue Yield: 5.45%), 3/1/2015 AAA $5,235,350 1,000,000 North Carolina State, GO UT Refunding Bonds 1,020,730 (Series C), 4.80% (North Carolina Prison Facilities)/(Original Issue Yield: 4.85%), 3/1/2009 AAA 11,035,000 North Carolina State, GO UT, 4.75% 11,331,290 (Original Issue Yield: 4.93%), 4/1/2014 AAA 1,000,000 North Carolina State, GO UT, 5.10%, 3/1/2008 AAA 1,070,160 4,000,000 North Carolina State, GO, 4.60%, 4/1/2012 AAA 4,135,760 1,000,000 North Carolina State, Public Improvement GO 1,060,090 UT Bonds (Series 1999A), 5.25% (Original Issue Yield: 5.38%), 3/1/2015 AAA 1,325,000 Orange County, NC, GO UT, 5.30% (Original 1,423,249 Issue Yield: 5.25%), 4/1/2014 AA+ 1,115,000 Orange County, NC, GO UT, 5.30%, 4/1/2015 AA+ 1,190,764 2,945,000 Orange County, NC, GO UT, 5.25% (Original 3,188,728 Issue Yield: 4.40%), 2/1/2013 AA+ 3,000,000 Pitt County, NC, Refunding Bonds, 5.25% 3,046,470 (Pitt County Memorial Hospital)/(Original Issue Yield: 5.85%), 12/1/2021 Aaa 3,000,000 Pitt County, NC, Refunding Bonds, 5.30% 3,200,310 (Pitt County Memorial Hospital)/(Original Issue Yield: 5.40%), 12/1/2009 Aaa 3,635,000 Pitt County, NC, Refunding Revenue Bonds, 3,889,450 5.20% (Pitt County Memorial Hospital)/(Original Issue Yield: 5.30%), 12/1/2008 Aaa 1,000,000 Raleigh & Durham, NC Airport Authority 1,097,570 (Series A), 5.50% (FGIC INS)/(Original Issue Yield: 4.04%), 11/1/2008 AAA 1,025,000 Sanford, NC, GO UT Bonds, 4.90% (MBIA INS), 1,076,804 3/1/2009 AAA 2,750,000 Union County, NC, GO UT, 4.75% (Original 2,801,260 Issue Yield: 4.76%), 3/1/2015 AA- 1,785,000 University of North Carolina at Chapel Hill 1,925,033 (Series A), 5.00% (Original Issue Yield: 3.97%), 12/1/2008 AA+ 3,200,000 University of North Carolina at Chapel 1,282,400 Hill, Utility Refunding Bonds, 5.00% (Original Issue Yield: 5.60%), 8/1/2010 AA 1,300,000 University of North Carolina, Pool, 5.00% 3,398,150 (AMBAC INS)/(Original Issue Yield: 4.80%), 10/1/2008 AAA 1,255,000 University of North Carolina, Refunding 1,392,372 Revenue Bonds, 5.75% (AMBAC INS)/(Original Issue Yield: 5.20%), 10/1/2013 AAA 7,630,000 Wake County, NC Industrial Facilities & 7,781,913 PCFA, Refunding Revenue Bonds, 5.375% (Carolina Power & Light Co.), 2/1/2017 BBB+ 7,500,000 Wake County, NC (Series B), 4.50% (Original 7,564,050 Issue Yield: 4.70%), 2/1/2014 AAA 1,000,000 Wake County, NC (Series B), 5.25% (Original 1,057,600 Issue Yield: 4.91%), 2/1/2017 AAA 3,000,000 Wake County, NC, GO UT Bonds, 4.50% 3,097,950 (Original Issue Yield: 4.72%), 3/1/2010 AAA 5,960,000 Wake County, NC, GO UT Bonds, 4.60% 6,140,409 (Original Issue Yield: 4.87%), 3/1/2012 AAA 1,050,000 Winston Salem, NC COPs, 5.00% (Original 1,107,908 Issue Yield: 4.41%), 6/1/2013 AA+ 1,050,000 Winston Salem, NC COPs, 5.00% (Original 1,079,085 Issue Yield: 4.70%), 6/1/2016 AA+ 1,250,000 Winston Salem, NC COPs, Series A, 5.00%, 1,296,613 6/1/2015 AA+ 2,745,000 Winston-Salem, NC Water & Sewer System, 2,839,895 Revenue Bonds, 4.80% (Original Issue Yield: 4.90%), 6/1/2013 AAA 3,350,000 Winston-Salem, NC Water & Sewer System, 3,455,190 Revenue Bonds, 4.875% (Original Issue Yield: 4.95%), 6/1/2014 AAA 1,980,000 Winston-Salem, NC (Series C), 5.25% 2,073,238 (Original Issue Yield: 4.90%), 6/1/2015 AA+ Total 344,586,879 District Of Columbia--1.0% 4,125,000 Metropolitan Washington, DC Airports 4,421,918 Authority, Revenue Bond (Series A), 5.75% (FGIC INS), 10/1/2016 AAA Florida--1.2% 5,000,000 South Broward Hospital District, FL, 5,005,800 Refunding Revenue Bonds, 5.60% (Original Issue Yield: 5.60%), 5/1/2012 (@101) A+ -------------------------------------------- Illinois--2.5% 10,000,000 Chicago, IL O'Hare International Airport (Series A) Revenue Refunding Bonds, 5.75%, 1/1/2017 AAA $10,506,800 Kentucky--0.6% 2,500,000 Kentucky State Property & Buildings 2,664,725 Commission, Refunding Revenue Bonds, 5.375% (FSA LOC), 2/1/2015 AAA Maryland--1.2% 5,000,000 Maryland Health & Higher Educational 5,125,900 Facilities Authority, Refunding Revenue Bonds, 5.75% (Original Issue Yield: 5.18%), 7/1/2011 (@100) A Oregon--0.7% 150,000 Klamath Falls, OR Intercommunity Hospital, 151,595 Refunding Revenue Bonds, 5.20% (Original Issue Yield: 5.20%), 9/1/2009 BBB 305,000 Klamath Falls, OR Intercommunity Hospital, 308,318 Refunding Revenue Bonds, 5.35% (Original Issue Yield: 5.35%), 9/1/2010 BBB 400,000 Klamath Falls, OR Intercommunity Hospital, 404,528 Refunding Revenue Bonds, 5.50% (Original Issue Yield: 5.50%), 9/1/2011 BBB 550,000 Klamath Falls, OR Intercommunity Hospital, 556,446 Refunding Revenue Bonds, 5.60% (Original Issue Yield: 5.60%), 9/1/2012 BBB 875,000 Klamath Falls, OR Intercommunity Hospital, 887,845 Refunding Revenue Bonds, 5.80% (Original Issue Yield: 5.80%), 9/1/2012 (@101) BBB 825,000 Klamath Falls, OR Intercommunity Hospital, 835,535 Refunding Revenue Bonds, 5.90% (Original Issue Yield: 5.90%), 9/1/2012 (@101) BBB Total 83,144,267 Pennsylvania--2.0% 8,125,000 Central Bucks, PA School District, GO UT, 8,713,737 5.50% (FGIC INS)/(Original Issue Yield: 4.73%), 5/15/2016 AAA Puerto Rico--2.7% 5,000,000 Commonwealth of Puerto Rico (Series A), 5,430,750 5.50% (MBIA INS)/(Original Issue Yield: 4.72%), 7/1/2021 AAA 5,650,000 Puerto Rico Highway and Transportation 5,926,455 Authority, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 6.10%), 7/1/2016 (@100) AAA Total 11,357,205 South Carolina--4.3% 2,500,000 Georgetown County, SC Environmental 2,549,400 Improvements, Refunding Revenue Bonds, 5.70% (Original Issue Yield: 5.70%), 4/1/2014 BBB 8,700,000 Greenville County, SC School District, 9,232,266 Refunding Revenue Bonds, 6.00% (Original Issue Yield: 5.57%), 12/1/2012 (@101) AA- 6,500,000 Tobacco Settlement Revenue Management 6,421,610 Authority, SC, (Series B), 6.00% (Original Issue Yield: 6.159%), 5/15/2011 (@101) A Total 18,203,276 Texas--1.4% 2,000,000 San Antonio, TX Water System, Refunding 2,125,180 Revenue Bonds, 5.50% (FSA INS)/(Original Issue Yield: 4.83%), 5/15/2012 (@100) AAA 2,000,000 San Antonio, TX Water System, Refunding 2,112,160 Revenue Bonds, 5.50% (FSA INS)/(Original Issue Yield: 4.90%), 5/15/2012 (@100) AAA 1,500,000 San Antonio, TX Water System, Revenue 1,601,265 Refunding Bonds (Series 2002), 5.50% (FSA INS), 5/15/2016 AAA Total 5,838,605 Washington--0.9% 3,780,000 Port of Seattle, WA (Series C) Revenue 4,045,885 Refunding Bonds, 5.625% (FGIC INS), 12/1/2013 AAA Wisconsin--0.5% 2,000,000 Badger, WI Tobacco Asset Securitization 1,967,340 Corp., Refunding Revenue Bonds, 6.125%, 6/1/2012 (@100) A Total Long-Term Municipals (identified cost $413,171,308) $425,582,337 -------------------------------------------------------------------------------- REGISTERED INVESTMENT COMPANY--2.9% 12,570,079 Evergreen Institutional Municipal Money 12,570,079 Market Fund (at AMORTIZED COST) Total Investments (identified cost $425,741,387) $438,152,416 ================================================================================ (See Notes to Portfolios of Investments) WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Credit Value Amount Rating* Long-Term Municipals--96.0% South Carolina--91.9% $1,695,000 Anderson County, SC, Water System, Refunding Revenue Bonds, 5.50% (FSA INS)/(Original Issue Yield: 4.84%), 8/1/2019 AAA $1,820,803 850,000 Barnwell County, SC, School District No. 898,059 45, GO UT, 5.40% (Original Issue Yield: 5.45%), 2/1/2009 AAA 1,300,000 Beaufort County, SC, GO UT, 5.00% (FGIC 1,362,361 INS)/(Original Issue Yield: 4.75%), 2/1/2013 AAA 1,000,000 Beaufort County, SC, GO UT, 5.00% (FGIC 1,040,880 INS)/(Original Issue Yield: 4.85%), 2/1/2014 AAA 1,160,000 Beaufort County, SC, GO UT, 5.25% (FGIC 1,204,927 INS)/(Original Issue Yield: 5.10%), 2/1/2017 AAA 1,600,000 Beaufort County, SC, School District, GO 1,656,640 UT, (Series A), 5.00% (Original Issue Yield: 4.80%), 3/1/2015 Aa1 2,395,000 Beaufort County, SC, School District, GO 2,462,323 UT, (Series A), 5.00% (Original Issue Yield: 4.89%), 3/1/2016 Aa1 2,685,000 Beaufort County, SC, School District, GO 2,725,678 UT, (Series A), 5.00% (Original Issue Yield: 5.03%), 3/1/2018 Aa1 750,000 Berkeley County, SC, Pollution Control 782,033 Facilities, 6.50% (South Carolina Electric and Gas), 10/1/2014 A- 1,100,000 Berkeley County, SC, School District, 5.50% 1,184,414 (FSA INS), 1/15/2016 Aaa 2,270,000 Berkeley County, SC, School District, 2,406,768 Certificates of Participation, 5.15% (MBIA INS)/(Original Issue Yield: 5.15%), 2/1/2008 AAA 2,000,000 Berkeley County, SC, School District, GO 2,120,420 UT, 5.375% (Original Issue Yield: 5.45%), 4/1/2015 AA+ 4,500,000 Berkeley County, SC, School District, GO 4,740,525 UT, 5.375% (Original Issue Yield: 5.50%), 4/1/2016 AA+ 5,000,000 Berkeley County, SC, School District, GO 4,237,050 UT, 5.375% (Original Issue Yield: 5.55%), 4/1/2017 AA+ 2,200,000 Berkeley County, SC, School District, GO 5,345,948 UT, 5.375%, 4/1/2014 AA+ 3,705,000 Berkeley County, SC, School District, GO 2,860,906 UT, 5.375%, 4/1/2018 AA+ 5,500,000 Berkeley County, SC, School District, GO 3,705,920 UT, 5.375%, 4/1/2019 AA+ 8,715,000 Berkeley County, SC, School District, GO 5,267,357 UT, 5.50% (FSA INS), 1/15/2018 Aaa 1,570,000 Berkeley County, SC, School District, GO 9,714,456 UT, 5.50% (FSA INS)/(Original Issue Yield: 4.42%), 1/15/2014 Aaa 1,500,000 Berkeley County, SC, Water & Sewer, 1,564,200 Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.55%), 6/1/2013 AAA 2,420,000 Berkeley County, SC, Water & Sewer, 2,525,633 Refunding Revenue Bonds, 5.55% (MBIA INS)/(Original Issue Yield: 5.60%), 6/1/2014 AAA 1,000,000 Camden, SC, Public Utility, Refunding 1,027,970 Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.80%), 3/1/2022 AAA 1,105,000 Charleston County, SC, Airport District, 1,104,978 Airport System Refunding Revenue Bonds, 4.75% (MBIA INS), 7/1/2015 AAA 1,670,000 Charleston County, SC, School District, GO 1,707,809 UT, 5.00% (South Carolina State Educational Assistance Authority LOC), 2/1/2017 AA+ 1,250,000 Charleston County, SC, GO UT, 5.50%, 1,364,262 6/1/2014 AA+ 4,000,000 Charleston County, SC, (Series A), 5.125% 4,195,720 (FSA INS)/(Original Issue Yield: 4.88%), 8/15/2015 AAA 5,500,000 Charleston County, SC, 5.50% (Charleston 5,651,690 Public Facilities Corp.)/(MBIA INS)/(Original Issue Yield: 5.70%), 12/1/2015 AAA 3,495,000 Charleston County, SC, 6.00% (MBIA 3,971,963 INS)/(Original Issue Yield: 5.40%), 12/1/2009 AAA 1,500,000 Charleston, SC, Waterworks and Sewer, 1,603,470 Refunding Revenue Bonds, 5.00% (Original Issue Yield: 3.84%), 1/1/2009 AA- 3,700,000 Charleston, SC, Waterworks and Sewer, Refunding Revenue Bonds, 5.125% (Original Issue Yield: 4.30%), 1/1/2010 AA- $3,971,099 3,205,000 Charleston, SC, Waterworks and Sewer, 3,375,089 Refunding Revenue Bonds, 5.125% (Original Issue Yield: 4.73%), 1/1/2016 AA- 1,000,000 Charleston, SC, Waterworks and Sewer, 1,033,040 Refunding Revenue Bonds, 5.25% (Original Issue Yield: 4.86%), 1/1/2018 AA- 4,295,000 Charleston, SC, Waterworks and Sewer, 4,576,666 Refunding Revenue Bonds, 5.125%, 1/1/2013 AA- 1,245,000 Charleston, SC, GO UT, (Series B), 5.00%, 1,328,739 7/1/2011 AA+ 1,155,000 Chester County, SC, School District, GO UT, 1,174,704 5.30% (AMBAC INS)/(Original Issue Yield: 5.45%), 2/1/2011 AAA 1,140,000 Chester County, SC, School District, GO UT, 1,158,764 5.30% (AMBAC INS)/(Original Issue Yield: 5.50%), 2/1/2012 AAA 1,245,000 Citadel Military College, Refunding Revenue 1,269,414 Bonds, 5.125% (AMBAC INS)/(Original Issue Yield: 5.35%), 4/1/2017 AAA 1,785,000 Clemson University, Revenue Bonds, 6.00% 1,983,206 (AMBAC INS), 5/1/2013 AAA 2,000,000 Columbia, SC, Parking Facilities Refunding 2,151,940 Revenue Bonds, 5.875% (AMBAC INS)/(Original Issue Yield: 6.006%), 12/1/2013 AAA 500,000 Columbia, SC, Waterworks & Sewer System, 548,845 Refunding Revenue Bonds, 5.50% (Original Issue Yield: 5.65%), 2/1/2009 AA 3,970,000 Columbia, SC, Waterworks & Sewer System, 4,412,973 Refunding Revenue Bonds, 5.70%, 2/1/2010 AA 1,065,000 Dorchester County, SC, School District No. 1,097,184 002, GO UT, 5.125% (FGIC INS)/(Original Issue Yield: 5.25%), 2/1/2012 AAA 2,250,000 Dorchester County, SC, School District No. 2,283,323 002, GO UT, 5.20% (FGIC INS)/(Original Issue Yield: 5.35%), 2/1/2017 AAA 3,000,000 Dorchester County, SC, School District No. 3,035,790 002, GO UT, 5.20% (FGIC INS), 2/1/2018 AAA 870,000 Edgefield County, SC, School District, GO 914,379 UT, 6.40% (FSA INS)/(Original Issue Yield: 6.60%), 2/1/2009 AAA 2,000,000 Fairfield County, SC, PCR Bonds, 6.50% 2,079,400 (South Carolina Electric and Gas), 9/1/2014 A 1,000,000 Fairfield County, SC, PCR Bonds, 6.50% 1,041,150 (South Carolina Electric and Gas)/(MBIA INS), 9/1/2014 AAA 1,205,000 Fairfield County, SC, School District, 1,282,867 Certificates of Participation, 5.50% (Fairfield Primary Geiger)/(Asset Guaranty GTD)/(Original Issue Yield: 5.60%), 3/1/2007 AA 1,000,000 Florence County, SC, Hospital, Refunding 1,035,570 Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.457%), 11/1/2009 AAA 1,485,000 Florence County, SC, Law Enforcement 1,528,808 Control Project, 5.70% (AMBAC INS)/(Original Issue Yield: 5.90%), 3/1/2003 AAA 1,220,000 Florence County, SC, Law Enforcement 1,280,549 Control Project, 6.00% (AMBAC INS)/(Original Issue Yield: 6.15%), 3/1/2006 AAA 1,600,000 Florence, SC, Water & Sewer, Refunding 1,666,784 Revenue Bonds, 5.20% (AMBAC INS)/(Original Issue Yield: 5.35%), 3/1/2007 AAA 2,000,000 Georgetown County, SC, GO UT, 5.75%, 2,224,120 3/1/2013 AA+ 4,115,000 Grand Strand Water & Sewage Authority, SC, 4,339,638 Refunding Revenue Bonds, 5.375% (FSA INS)/(Original Issue Yield: 4.71%), 6/1/2017 AAA 4,335,000 Grand Strand Water & Sewage Authority, SC, 4,539,915 Refunding Revenue Bonds, 5.375% (FSA INS)/(Original Issue Yield: 4.80%), 6/1/2018 AAA 3,805,000 Grand Strand Water & Sewage Authority, SC, 4,453,068 Refunding Revenue Bonds, 6.375% (South Carolina Waterworks & Sewer System)/(MBIA INS)/(Original Issue Yield: 6.509%), 6/1/2012 AAA 1,800,000 Grand Strand Water & Sewage Authority, SC, 1,800,000 Waterworks & Sewer System, Refunding Revenue Bonds, 6.00% (MBIA INS)/(Original Issue Yield: 6.596%), 6/1/2019 AAA 1,120,000 Greenville County, SC, GO UT, 5.40%, 1,155,549 4/1/2021 AAA 2,700,000 Greenville County, SC, GO UT, 5.50%, 2,790,369 4/1/2025 AAA 980,000 Greenville County, SC, GO UT, (Library Project), 5.35% (Original Issue Yield: 5.45%), 4/1/2019 AAA $1,016,299 2,840,000 Greenville, SC, Hospital System Facilities, 2,954,054 Refunding Revenue Bonds, (Series A), 5.00% (Original Issue Yield: 5.15%), 5/1/2004 AA 1,000,000 Greenville, SC, Hospital System Facilities, 1,044,460 Refunding Revenue Bonds, (Series A), 5.75% (Original Issue Yield: 6.00%), 5/1/2014 AA 1,080,000 Greenville, SC, Sewer System, Refunding 1,139,065 Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 4.90%), 4/1/2019 AAA 5,000,000 Greenville County, SC, School District, 5,322,500 Refunding Revenue Bonds, 6.00% (Original Issue Yield: 5.54%), 12/1/2020 AA- 1,735,000 Greenville, SC, Waterworks Revenue, Revenue 1,821,403 Bonds, 5.25% (Original Issue Yield: 4.67%), 2/1/2012 (@100) AAA 2,170,000 Greenville, SC, Waterworks Revenue, Revenue 1,262,572 Bonds, 5.25% (Original Issue Yield: 4.75%), 2/1/2012 (@100) AAA 2,000,000 Greenville, SC, Waterworks Revenue, Revenue 2,058,800 Bonds, 5.50% (Original Issue Yield: 5.60%), 2/1/2022 AAA 1,400,000 Greenwood SC, Combined Public Utility, 2,478,302 Refunding Revenue Bonds, 5.35% (AMBAC INS)/(Original Issue Yield: 5.45%), 12/1/2005 AAA 1,320,000 Greenwood SC, Combined Public Utility, 1,411,146 Refunding Revenue Bonds, 5.70% (AMBAC INS), 12/1/2010 AAA 1,500,000 Greenwood, SC, Hospital System Facilities, 1,464,135 Refunding Revenue Bonds, 5.50% (Original Issue Yield: 5.52%), 10/1/2021 A+ 1,125,000 Greer SC, Combined Utility System, Revenue 1,168,605 Bonds, 4.75% (AMBAC INS)/(Original Issue Yield: 4.85%), 9/1/2011 AAA 1,000,000 Hilton Head, SC Public Facilities Corp., 1,057,620 Certificates of Participation, 5.40% (AMBAC INS)/(Original Issue Yield: 5.60%), 3/1/2009 AAA 2,000,000 Hilton Head, SC, Public Services District 2,091,620 No. 1, Waterworks & Sewer, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.80%), 8/1/2015 AAA 4,000,000 Hilton Head, SC, Public Services District 4,098,000 No. 1, Waterworks and Sewer Systems, Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.85%), 8/1/2020 AAA 585,000 Horry County, SC, Hospitality Fee, Special 613,911 Obligation, 4.75% (Original Issue Yield: 4.87%), 4/1/2007 A 1,000,000 Kershaw County, SC, School District, GO UT, 1,090,900 5.50% (Original Issue Yield: 5.55%), 2/1/2011 AA+ 1,030,000 Laurens County, SC, Health Care Systems, GO 1,072,611 UT, 5.70% (MBIA INS), 1/1/2008 AAA 1,025,000 Laurens County, SC, School District No. 1,092,660 055, GO UT, 5.50% (FGIC INS), 3/1/2016 AAA 2,000,000 Lexington, SC, Water & Sewer, Refunding 2,171,700 Revenue Bonds, 5.50% (Asset Guarantee INS)/(Original Issue Yield: 5.68%), 4/1/2029 AAA 1,000,000 North Charleston, SC, GO UT, 5.50%, 8/1/2005 AA- 1,049,980 1,670,000 North Charleston, SC, GO UT, 5.50% 1,747,187 (Original Issue Yield: 5.60%), 8/1/2006 AA- 2,000,000 North Charleston, SC, Sewer District, 2,007,440 Refunding Revenue Bonds (Series A), 6.00% (MBIA INS)/(Original Issue Yield: 6.593%), 7/1/2018 AAA 3,750,000 North Charleston, SC, Sewer District, 4,392,788 Refunding Revenue Bonds, (Series A), 6.375% (MBIA INS)/(Original Issue Yield: 6.508%), 7/1/2012 AAA 2,500,000 Oconee County, SC, PCR Refunding Bonds, 2,590,525 5.80% (Duke Energy Corp.), 4/1/2014 AA- 275,000 Oconee County, SC, School District, GO UT, 284,114 5.10% (MBIA INS)/(Original Issue Yield: 5.50%), 9/1/2013 AAA 1,000,000 Oconee County, SC, School District, GO UT, 1,044,220 5.00% (Original Issue Yield: 5.35%), 9/1/2010 AAA 1,155,000 Oconee County, SC, School District, GO UT, 1,205,381 5.10% (Original Issue Yield: 5.40%), 9/1/2011 AAA 1,090,000 Oconee County, SC, School District, GO UT, 1,132,336 5.10% (Original Issue Yield: 5.45%), 9/1/2012 AAA 1,665,000 Orangeburg County, SC, Consolidated School District, GO UT, 5.25% (Original Issue Yield: 5.31%), 3/1/2017 AA+ $1,721,044 695,000 Piedmont Municipal Power Agency, SC, 68,093 Escrowed to Maturity, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.60%), 1/1/2013 AAA 1,695,000 Piedmont Municipal Power Agency, SC, 7,874,806 Escrowed to Maturity, Refunding Revenue Bonds, 5.60% (MBIA INS)/(Original Issue Yield: 5.67%), 1/1/2009 AAA 290,000 Piedmont Municipal Power Agency, SC, 146,103 Escrowed to Maturity, Refunding Revenue Bonds, 6.50% (FGIC INS)/(Original Issue Yield: 6.625%), 1/1/2014 AAA 500,000 Piedmont Municipal Power Agency, SC, 398,130 Refunding Revenue Bonds, 6.75% (FGIC INS)/(Original Issue Yield: 6.78%), 1/1/2019 AAA 2,435,000 Richland County, SC, Hospital Facilities, 5,617,576 Refunding Revenue Bonds (Series PG-A), 7.10% (Community Provider Pooled Loan Program)/(CGIC INS), 7/1/2005 AAA 975,000 Richland County, SC, School District No. 289,274 001, GO UT, 5.00% (Original Issue Yield: 5.35%), 3/1/2016 AA+ 1,000,000 Richland County, SC, School District No. 9,083,460 001, 5.75%, 3/1/2016 AA+ 2,980,000 Richland County, SC, GO UT, (Series A), 3,066,688 5.00% (Original Issue Yield: 4.55%), 3/1/2016 AA+ 1,645,000 Richland County, SC, GO UT, (Series C), 1,711,310 5.80% (Original Issue Yield: 5.85%), 3/1/2007 AA 105,000 Rock Hill, SC, Housing Development Corp., 106,763 Multi-Family Refunding Revenue Bonds, 7.50%, 7/1/2010 Aaa 2,630,000 Rock Hill, SC, Utility System, Refunding 2,728,441 Revenue Bonds, 5.25% (AMBAC INS)/(Original Issue Yield: 5.40%), 1/1/2008 AAA 1,745,000 Rock Hill, SC, Utility System, (Series C), 1,866,731 5.00% (FSA INS)/(Original Issue Yield: 4.72%), 1/1/2007 AAA 1,500,000 South Carolina Job Development Authority, 1,534,905 Revenue Bonds, 5.25% (Anderson Area Medical Center, Inc.)/(MBIA INS)/(Original Issue Yield: 5.63%), 2/1/2015 AAA 340,000 South Carolina Resources Authority, Local 344,838 Government Program, Revenue Bonds, (Series A), 7.00%, 6/1/2003 AA 1,000,000 South Carolina State Educational Assistance 1,061,660 Authority, Refunding Revenue Bonds, (Series A-3), 5.80% (Original Issue Yield: 5.90%), 9/1/2004 AAA 1,000,000 South Carolina State Educational Assistance 1,064,120 Authority, Refunding Revenue Bonds, (Series B), 5.70% (Original Issue Yield: 5.75%), 9/1/2005 A 2,685,000 South Carolina State Housing Finance & 2,843,120 Development Authority, Refunding Revenue Bonds, (Series A), 6.15%, 7/1/2008 AA 1,000,000 South Carolina State Housing Finance & 1,025,730 Development Authority, Refunding Revenue Bonds, 5.50% (Original Issue Yield: 5.00%), 7/1/2025 Aaa 500,000 South Carolina State Ports Authority, 512,485 Revenue Bonds, 6.50% (AMBAC INS)/(Original Issue Yield: 6.75%), 7/1/2006 AAA 500,000 South Carolina State Ports Authority, 512,535 Revenue Bonds, 6.625% (AMBAC INS)/(Original Issue Yield: 6.823%), 7/1/2011 AAA 1,000,000 South Carolina State Public Service 1,026,940 Authority, Refunding Revenue Bonds, (Series A), 5.00% (MBIA INS)/(Original Issue Yield: 5.15%), 1/1/2014 AAA 2,500,000 South Carolina State Public Service 2,529,775 Authority, Refunding Revenue Bonds, (Series C), 5.00% (AMBAC INS)/(Original Issue Yield: 5.25%), 1/1/2014 AAA 1,000,000 South Carolina State Public Service 1,020,720 Authority, (Series A), 5.25% (FSA INS)/(Original Issue Yield: 4.89%), 1/1/2012 (@101) AAA 1,480,000 South Carolina State Public Service 1,583,289 Authority, (Series A), 5.50% (FSA INS)/(Original Issue Yield: 5.10%), 1/1/2017 AAA 1,615,000 South Carolina State Public Service 1,716,228 Authority, (Series A), 5.50% (FSA INS)/(Original Issue Yield: 5.15%), 7/1/2012 (@101) AAA 4,185,000 South Carolina State Public Service 4,417,770 Authority, (Series A), 5.50% (FSA INS)/(Original Issue Yield: 5.18%), 7/1/2012 (@101) AAA 4,095,000 South Carolina State Public Service 4,465,638 Authority, (Series A), 5.50% (Original Issue Yield: 4.87%), 7/1/2012 (@101) AAA 2,500,000 South Carolina State Public Service 2,737,725 Authority, (Series A), 5.75% (MBIA INS)/(Original Issue Yield: 5.51%), 1/1/2014 AAA 3,045,000 South Carolina State Public Service Authority, (Series B), 5.00% (MBIA INS)/(Original Issue Yield: 5.16%), 1/1/2018 AAA $3,078,373 2,000,000 South Carolina State Public Service 2,183,420 Authority, (Series A), 5.75% (MBIA INS), 1/1/2015 AAA 2,385,000 South Carolina State, (Series A), 4.60% 2,479,565 (Original Issue Yield: 4.45%), 5/1/2011 AAA 350,000 South Carolina State, GO UT, 6.00% (Medical 357,221 University of South Carolina)/(Original Issue Yield: 6.132%), 3/1/2003 AAA 375,000 South Carolina State, GO UT, 6.00% (Medical 382,736 University of South Carolina)/(Original Issue Yield: 6.25%), 3/1/2004 AAA 5,475,000 South Carolina Transportation 5,479,763 Infrastructure Bank, Revenue Bonds, (Series A), 4.50% (MBIA INS), 10/1/2014 AAA 2,000,000 South Carolina Transportation 1,947,320 Infrastructure Bank, Revenue Bonds, (Series A), 4.50% (MBIA INS), 10/1/2016 AAA 1,040,000 South Carolina Transportation 1,122,337 Infrastructure Bank, Revenue Bonds, (Series A), 5.00% (MBIA INS), 10/1/2007 AAA 5,000,000 South Carolina Transportation 5,203,900 Infrastructure Bank, Revenue Bonds, (Series A), 5.375% (MBIA INS), 10/1/2018 AAA 1,000,000 South Carolina Transportation 1,049,020 Infrastructure Bank, Revenue Bonds, (Series A), 5.00% (Original Issue Yield: 4.35%), 10/1/2012 AAA 2,595,000 Spartanburg County, SC, Health Services 2,689,536 District, Inc., Refunding Revenue Bonds, 5.00% (AMBAC INS)/(Original Issue Yield: 5.60%), 4/15/2011 AAA 3,000,000 Spartanburg County, SC, Health Services 3,123,780 District, Inc., Refunding Revenue Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 5.70%), 4/15/2015 AAA 1,035,000 Spartanburg County, SC, Health Services 1,096,800 District, Inc., Refunding Revenue Bonds, 5.50% (FSA INS)/(Original Issue Yield: 4.78%), 4/15/2012 (@100) AAA 500,000 Spartanburg County, SC, Health Services 523,430 District, Inc., Refunding Revenue Bonds, 5.50% (FSA INS)/(Original Issue Yield: 4.98%), 4/15/2012 (@100) AAA 1,000,000 Spartanburg County, SC, School District No. 1,086,770 005, GO UT, 5.25% (Original Issue Yield: 5.30%), 5/1/2011 AA+ 1,000,000 Spartanburg County, SC, School District No. 1,039,840 007, GO UT, 5.00% (Original Issue Yield: 4.59%), 3/1/2016 AA+ 1,000,000 Spartanburg County, SC, 5.375% (State Aid 1,039,840 Withholding LOC)/(Original Issue Yield: 5.54%), 4/1/2019 AA 1,005,000 Spartanburg County, SC, 5.375% (State Aid 1,037,732 Withholding LOC)/(Original Issue Yield: 5.57%), 4/1/2020 AA 450,000 Spartanburg, SC, Leased Housing Corp., 465,129 Refunding Revenue Bonds, 7.50%, 10/1/2011 A2 1,035,000 Sumter County, SC, Hospital Facilities, 1,057,087 6.50% (MBIA INS)/(Original Issue Yield: 6.80%), 11/15/2002 AAA 6,900,000 Tobacco Settlement Revenue Management 6,816,786 Authority, SC, (Series B), 6.00% (Original Issue Yield: 6.159%), 5/15/2011 (@101) A 1,300,000 University of South Carolina, Revenue 1,377,922 Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 4.85%), 5/1/2012 (@100) AAA 575,000 University of South Carolina, Revenue 117,469 Bonds, (Series A), 5.50% (Original Issue Yield: 5.40%), 6/1/2014 Aa3 605,000 University of South Carolina, (Series A), 645,898 5.50% (Original Issue Yield: 5.50%), 6/1/2010 (@100) Aa3 1,425,000 University of South Carolina, Refunding 1,488,612 Revenue Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 4.97%), 5/1/2020 AAA 1,015,000 University of South Carolina, Refunding 1,066,663 Revenue Bonds, 5.60% (AMBAC INS)/(Original Issue Yield: 5.70%), 6/1/2017 Aaa 3,465,000 University of South Carolina, Refunding 3,592,062 Revenue Bonds, 5.70% (MBIA INS), 6/1/2020 AAA 1,000,000 Western Carolina Regional Sewer Authority, 1,046,800 SC, Refunding Revenue Bonds, 5.375% (FSA INS), 3/1/2017 AAA 2,940,000 Western Carolina Regional Sewer Authority, 3,060,452 SC, Refunding Revenue Bonds, 5.375% (FSA INS), 3/1/2018 2,090,000 Western Carolina Regional Sewer Authority, SC, Refunding Revenue Bonds, 5.40% (FGIC INS)/(Original Issue Yield: 5.465%), 3/1/2007 AAA $2,183,757 2,300,000 Western Carolina Regional Sewer Authority, 2,404,397 SC, Sewer System Revenue Bonds, 5.50% (FGIC INS)/(Original Issue Yield: 5.627%), 3/1/2010 AAA 1,020,000 Winnsboro, SC, Utility Revenue, Refunding 1,099,264 Revenue Bonds, 5.25% (MBIA INS)/(Original Issue Yield: 4.85%), 8/15/2013 AAA 3,410,000 York County, SC, School District 003, GO 3,633,219 UT, 5.00%, 3/1/2012 AA+ 1,000,000 York County, SC, School District 004, GO 1,025,390 UT, 5.125% (Original Issue Yield: 5.15%), 3/1/2018 AA+ Total 309,050,626 District Of Columbia--1.3% 4,000,000 Metropolitan Washington, DC, Airports 4,261,120 Authority, Revenue Bonds, (Series A), 5.75% (FGIC INS), 10/1/2017 AAA Georgia--1.3% 2,895,000 Fulton County, GA, Development Authority, 3,093,134 Refunding Revenue Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 5.06%), 10/1/2017 AAA 1,300,000 Georgia State, HFA, Refunding Revenue 1,310,348 Bonds, 5.45% (Original Issue Yield: 5.449%), 12/1/2011 (@100) AAA Total 4,403,482 Puerto Rico--1.5% 2,000,000 Puerto Rico Public Building Authority, 2,038,380 (Series B), 5.25% (FSA INS)/(Original Issue Yield: 5.65%), 7/1/2021 AAA 3,000,000 Puerto Rico Public Finance Corp., (Series 3,189,510 A), 5.50% (MBIA INS)/(Original Issue Yield: 4.91%), 8/1/2011 (@100) AAA Total 5,227,890 Total Long-Term Municipals (identified 322,943,118 cost $310,947,973) Registered investment company--4.3% 14,308,561 Evergreen Institutional Municipal Money 14,308,561 Market Fund (AT AMORTIZED COST) Total Investments (identified cost $325,256,534) $337,251,679 ================================================================================ (See Notes to Portfolios of Investments) WACHOVIA MONEY MARKET FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount (5) CERTIFICATES OF DEPOSIT--16.5% Banking & Finance--16.5% $15,860,000 Abbey National Bank PLC, London, 1.920% - 2.050%, 6/4/2002 - 10/10/2002 $15,860,291 3,172,000 Deutsche Bank AG, 3.960%, 7/11/2002 3,172,034 7,930,000 Rabobank Nederland, Utrecht, 1.780%, 6/11/2002 7,930,022 7,930,000 SouthTrust Bank, 2.000%, 6/5/2002 7,930,009 4,758,000 Toronto Dominion Holdings (USA), Inc., 2.340%, 4,758,286 1/9/2003 15,860,000 UBS AG, 1.830% - 1.870%, 6/13/2002 - 7/31/2002 15,860,222 TOTAL CERTIFICATES OF DEPOSIT 55,510,864 (5) COMMERCIAL PAPER--31.1% Finance--31.1% 12,500,000 Asset One Securitization, 1.810%, 6/13/2002 12,492,458 12,500,000 Atlantis One Funding Corp., 1.800%, 6/6/2002 12,496,875 7,000,000 Bavaria Finance Funding, 1.850%, 6/14/2002 6,995,323 6,940,000 Check Point Charlie, Inc., Years 3&4, 1.900%, 6,938,169 6/6/2002 12,500,000 Crown Point Capital Co., 1.870%, 6/4/2002 12,498,052 12,500,000 Morgan Stanley, Dean Witter & Co., 1.800%, 6/6/2002 12,496,875 12,500,000 Salomon Smith Barney Holdings, Inc., 1.750%, 12,492,101 6/14/2002 12,500,000 Three Pillars Funding Corp., 1.800%, 6/14/2002 12,491,875 6,344,000 Verizon Global Funding, 2.050%, 10/17/2002 6,294,147 9,016,000 Victory Receivable Corp., Years 3&4, 1.850%, 9,011,367 6/11/2002 TOTAL COMMERCIAL PAPER 104,207,242 CORPORATE BONDS--4.7% Finance--4.7% 6,344,000 Bear Stearns Co., Inc. 2.610%, 2/28/2003 6,344,000 9,516,000 Countrywide Home Loan, Inc., 2.666%, 2/28/2003 9,518,162 TOTAL CORPORATE BONDS 15,862,162 CORPORATE NOTES--0.5% Finance--0.5% 1,586,000 Liberty Lighthouse US Capital Co., 2.910%, 1,586,000 6/18/2002 (4) NOTES - VARIABLE--28.2% Finance--28.2% 15,860,000 ABN AMRO Bank, NV, New York, 2.150%, 7/3/2002 15,860,000 5,000,000 Abacas Investments LLC, 1.900%, 6/26/2002 5,000,000 19,032,000 American Express Credit Corp., 1.820% - 1.900%, 19,030,914 6/19/2002 - 6/26/2002 7,930,000 Chase Manhattan Corp., (Series C), 1.960%, 7,931,244 6/10/2002 15,860,000 Merrill Lynch & Co., Inc., 1.810% - 1.820%, 15,860,000 6/10/2002 7,930,000 National Rural Utilities Cooperative Finance 7 ,930,000 Corp., (Series MTNC), 1.853%, 6/3/2002 15,000,000 Sigma Finance, Inc., 1.827%, 6/15/2002 15,000,000 7,930,000 Westdeutsche Landesbank, 1.777%, 6/24/2002 7,926,768 TOTAL NOTES - VARIABLE 94,538,926 (6) Repurchase Agreement--19.2% 64,335,255 Deutsche Bank Alex Brown, Inc., 1.840%, dated 64,335,255 5/31/2002, due 6/3/2002 TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $336,040,449 ================================================================================ (See Notes to Portfolios of Investments) WACHOVIA TAX-FREE MONEY MARKET FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount SHORT-TERM MUNICIPALS--100.6% Alabama--10.7% $1,481,000 DCH Health Care Authority Weekly VRDNs $1,481,000 571,000 Infirmary Health Systems, Inc. (Series A), Weekly 571,000 VRDNs 704,000 Jefferson County, AL Sewer, Refunding Revenue 704,000 Bonds Weekly VRDNs (FGIC LOC) 829,000 The Board of Trustees of the University of 829,000 Alabama, University & College Improvements (Series B), Weekly VRDNs 24,000 Tuscaloosa County, AL, Port Authority (Series 24,000 1989A), Weekly VRDNs (Capstone Hotel Ltd.)/(SouthTrust Bank of Alabama, Birmingham LOC) Total 3,609,000 Arizona--2.4% 823,000 Arizona School District, 3.25% TANs, 7/31/2002 823,926 Colorado--3.3% 1,111,000 Arapahoe County, CO HFA Weekly VRDNs 1,111,000 Florida--4.7% 192,000 Eustis Health Facilities Authority, FL (Series 192,000 1985), Weekly VRDNs (Waterman Medical Center)/(Banque Paribas COL) 18,000 Florida HFA, Revenue Bonds Weekly VRDNs 18,000 815,000 Palm Beach County, FL, Refunding Revenue Bonds 815,000 Weekly VRDNs (AMBAC INS) 37,000 Polk County, FL, IDA, Refunding Revenue Bonds 37,000 Monthly VRDNs (Florida Convalescent Centers, Inc.)/(Toronto Dominion Bank LOC) 204,000 Riviera Beach, FL, IDA Weekly VRDNs (Rainbow 204,000 Valley Landfill Project)(Bank of America LOC) 304,000 Southeast Volusia Hospital District, FL, Revenue 304,000 Bonds (Series 1995), Weekly VRDNs (Bert Fish Medical Center (FL))/(SouthTrust Bank of Alabama, Birmingham LOC) Total 1,570,000 Georgia--5.8% 741,000 Clayton County, GA Development Authority (Series 41,000 A), Weekly VRDNs (Delta Air Lines, Inc.)/(Commerzbank, AG LOC) 636,000 De Kalb Private Hospital Authority, GA, Revenue 736,000 Anticipation Certificates (Series 1994B), Weekly VRDNs (Egleston Children's Hospital at Emory University, Inc.)/(SunTrust Bank, Atlanta LOC) 329,000 De Kalb Private Hospital Authority, GA, Revenue 629,000 Anticipation Certificates (Series 1995B), Weekly VRDNs (Egleston Children's Hospital at Emory University, Inc.)/(SunTrust Bank, Atlanta LOC) 207,000 Lowndes County, GA, Residential Care Facilities 307,000 for the Elderly Authority Weekly VRDNs (South Georgia Health Alliance Project) 57,000 Macon-Bibb County, GA, Urban Development 27,000 Authority, Refunding Revenue Bonds (Series 1995), Weekly VRDNs (Macon Hotel Investors)/(Bank One, Michigan LOC) Total 51,970,000 Idaho--1.1% 370,000 Idaho State (GO UT), 3.75% Bonds, 6/28/2002 370,307 Illinois--13.3% 852,000 Illinois Development Finance Authority Weekly VRDNs 852,000 55,000 Illinois Development Finance Authority, Revenue 55,000 Bonds Weekly VRDNs (Aurora Central Catholic High School) 74,000 Illinois Development Finance Authority, Revenue 74,000 Bonds Weekly VRDNs (Lake Forest Academy)/(Northern Trust Corp. LOC) 86,000 Illinois Development Finance Authority, Revenue 86,000 Bonds Weekly VRDNs (Little City Foundation) 81,000 Illinois Development Finance Authority, Revenue 281,000 2 Bonds Weekly VRDNs (St. Ignatius College) $105,000 Illinois Development Finance Authority, Revenue Bonds Weekly VRDNs (St. Paul's House)/(Lasalle National Bank, Chicago LOC) $105,000 341,000 Illinois Development Finance Authority, IDB, TV 341,000 Association (Series A), Weekly VRDNs (Chicago, IL Board of Education) 481,000 Illinois Development Finance Authority, IDB, 481,000 Variable/Fixed Rate Demand Revenue Bonds (Series 1996), Weekly VRDNs (Chicago Symphony Orchestra Project)/(Bank of America, IL LOC) 807,000 Illinois Development Finance Authority, PCR 807,000 (Series 1994B), Weekly VRDNs (Commonwealth Edison Co.)/(ABN AMRO Bank N.V., Amsterdam LOC) 415,000 Illinois Educational Facilities Authority, Revenue 415,000 Bonds Weekly VRDNs (Field Museum of Natural History) 459,000 Illinois State Toll Highway Authority (Series 459,000 1993B), Weekly VRDNs (MBIA INS)/(Societe Generale, Paris LIQ)/(Societe Generale, Paris LOC) 74,000 Orland Hills, IL, Multi-family Mortgage Revenue 74,000 Bonds, Weekly VRDNs (Lasalle National Corp. LOC) 455,000 Will County, IL, Environmental Revenue Bonds, 455,000 Daily VRDNs (ExxonMobil Project) Total 4,485,000 Iowa--1.8% 593,000 Iowa School Corporations (Series A), 3.75% Bonds, 593,348 6/21/2002 Kansas--1.2% 415,000 Wichita, KS Multi-family Housing, Weekly VRDNs 415,000 Kentucky--4.6% 741,000 Kenton County, KY Airport Board (Series B), Weekly 741,000 VRDNs (Commerzbank, AG LOC) 815,000 Kentucky Association of Counties Advance Revenue, 815,499 3.50% TRANs, 6/28/2002 Total 1,556,499 Louisiana--3.7% 126,000 Calcasieu Parish, LA, IDB, PCR Weekly VRDNs (Citgo 126,000 Petroleum Corp.) 208,000 Lake Charles, LA Harbor & Terminal District, 208,000 Revenue Bonds Weekly VRDNs (Citgo Petroleum Corp.) 445,000 Louisiana PFA, 3.25% Bonds, 8/29/2002 445,475 461,000 Louisiana State, Series A, 6.00% Bonds, 8/1/2002 463,545 Total 1,243,020 Massachusetts--0.2% 74,000 Commonwealth of Massachusetts (Series B), Weekly 74,000 VRDNs (Toronto Dominion Bank LOC) 7,000 Massachusetts HEFA (Series P-1), Weekly VRDNs 7,000 (Partners Healthcare Systems)/(FSA INS) Total 81,000 Michigan--1.0% 326,000 Green Lake Township, MI, Refunding Revenue Bonds 326,000 Weekly VRDNs (Lasalle National Corp. LOC) Mississippi--0.5% 173,000 Jackson County, MS, Weekly VRDNs (Chevron Corp. 173,000 GTD) Missouri--0.4% 132,000 Kansas City, MO, IDA, IDRB, Weekly VRDNs 132,000 (Mid-American Health Services) Multi State--5.1% 111,000 Macon Trust Pool Weekly VRDNs 111,000 1,600,000 Morgan Keegan Municipal Products, Inc. (Series C), 1,600,000 Weekly VRDNs Total 1,711,000 Nevada--1.7% 578,000 Clark County, NV, School District, Weekly VRDNs 578,000 New York--3.2% 1,067,000 New York City, NY (1994 B-2), Daily VRDNs 1,067,000 (J.P.Morgan Chase Bank LOC) 7,000 New York City, NY (1994 E-3), Daily VRDNs 7,000 (Westdeutsche Landesbank LOC) Total 1,074,000 North Carolina--1.8% 608,000 Mecklenburg County, NC (Series E), Weekly VRDNs 608,000 (Bank of America NA LOC) Ohio--2.1% $66,000 Centerville, OH, Health Care Revenue Bonds Weekly VRDNs (Bethany Lutheran Village) $66,000 652,000 Lorain County, OH (Series A), Weekly VRDNs 652,000 Total 718,000 Oregon--1.1% 370,000 Oregon State, Veteran's Welfare Bonds (Series 370,000 73F), Weekly VRDNs (Morgan Guaranty Trust Co., New York LOC) Pennsylvania--0.9% 319,000 Allegheny County, PA, IDA, Revenue Bonds (Series 319,000 A), Weekly VRDNs (United Jewish Federation of Greater Pittsburgh VRDB)/(PNC Bank, NA LOC) South Carolina--2.2% 741,000 South Carolina Transportation Infrastructure Bank 741,000 (Class A), Weekly VRDNs (AMBAC INS) Tennessee--7.0% 1,005,000 Clarksville, TN, Public Building Authority, 1,005,000 Adjustable Rate Pooled Financing Revenue Bonds (Series 1997), Weekly VRDNs (Tennessee Municipal Bond Fund)/(Nationsbank, NA, Charlotte LOC) 74,000 Clarksville, TN, Public Building Authority, Public 74,000 Improvement Revenue Bonds Weekly VRDNs 262,000 Metropolitan Government Nashville & Davidson 262,000 County, TN IDB, Refunding Revenue Bonds Weekly VRDNs 128,000 Metropolitan Government Nashville & Davidson 128,000 County, TN IDB, Refunding Revenue Bonds Weekly VRDNs 562,000 Metropolitan Nashville TN Airport Authority 562,000 (Series 1993), Weekly VRDNs (FGIC INS)/(Societe Generale, Paris LIQ)/(Societe Generale, Paris LOC) 314,000 Metropolitan Nashville TN Airport Authority 314,550 (Series A), 5.00% Bonds (FGIC LOC), 7/1/2002 Total 2,345,550 Texas--7.6% 785,000 Lower Neches Valley, TX, Refunding Revenue Bonds, 785,000 3.45% TOBs (Chevron U.S.A., Inc.), Optional Tender 8/16/2002 889,000 Northside, TX, ISD (Series A), 1.63% TOBs (Texas 889,581 Permanent School Fund Guarantee Program GTD)/(Dexia Credit Local LIQ), Mandatory Tender 8/1/2002 889,000 Texas State (Series A), 3.75% TRANs, 8/29/2002 891,750 Total 2,566,331 Wisconsin--13.2% 1,230,000 Wisconsin HEFA (Series A), Revenue Bonds Weekly 1,230,000 VRDNs (Felician Health Care, Inc.)/(AMBAC INS) 370,000 Wisconsin HEFA, Revenue Bond Weekly VRDNs 370,000 (University Wisconsin Medical Foundation) 808,000 Wisconsin HEFA, Revenue Bonds (Series 1994), 808,000 Weekly VRDNs (Felician Health Care, Inc.)/(LaSalle Bank, NA LOC) 1,203,000 Wisconsin State, (Class A) Weekly VRDNs 1,203,000 830,000 Wisconsin State (Series A), 1.50% CP (Bank of Nova 830,000 Scotia, Toronto and Commerzbank AG, Frankfurt LIQs), Mandatory Tender 6/6/2002 Total 4,441,000 TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $33,930,981 ================================================================================ (See Notes to Portfolios of Investments) WACHOVIA U.S. TREASURY MONEY MARKET FUND PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Principal Value Amount U.S. GOVERNMENT OBLIGATIONS--85.2% U.S. Treasury Bills--51.9% $30,000,000 1.600% - 1.660%, 6/6/2002 $29,993,125 U.S. Treasury Notes--33.3% 4.250% - 6.250%, 7/31/2002 - 3/31/2003 19,266,456 Total U.S. Government Obligations 49,259,581 (6) REPURCHASE AGREEMENT--15.4% 8,940,907 Deutsche Bank Alex Brown, Inc., 1.790%, dated 8,940,907 5/31/2002, due 6/3/2002 TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $58,200,488 ================================================================================ (See Notes to Portfolios of Investments) NOTES TO PORTFOLIOS OF INVESTMENTS * Please refer to the Appendix of the Statement of Additional Information for an explanation of the credit ratings. Current credit ratings are unaudited. (1) Non-income producing. (2) Represents securities held as collateral within a margin account, used to ensure the fund is able to satisfy the obligations of its outstanding long futures contracts. (3) Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At May 31, 2002, the Emerging Markets Fund, Balanced Fund, and Intermediate Fixed Income Fund held restricted securities amounting to $2,587,183, $994,790 and $3,217,101, respectively, which represents 1.8%, 0.3% and 2.5%, respectively, of net assets. (4) Denotes variable rate securities with current rate and next demand date shown. (5) Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. (6) The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The following abbreviations are used in these portfolios: ADR--American Depositary Receipt LIQ(s)-- Liquidity Agreement(s) AMBAC--American Municipal Bond Assurance LOC(s)-- Letter(s) of Credit Corporation CGIC--Capital Guaranty Insurance Corporation MBIA--Municipal Bond Insurance Association COL--Collateralized MTGS--Mortgages COPs--Certificates of MTN--Medium Term Note Participation FGIC--Financial Guaranty Insurance Corporation PCFA--Pollution Control Finance Authority FHA--Federal Housing Administration PCL--Public Company Limited FNMA--Federal National Mortgage Association PCR--Pollution Control Revenue FSA--Financial Security Assurance PFA--Public Facility Authority GDR--Global Depositary Receipt PRF--Prerefunded GO--General Obligation TANs--Tax Anticipation Notes GTD--Guaranteed TOBs--Tender Option Bonds HFA--Housing Finance Authority TRANs--Tax and Revenue Anticipation Notes HEFA--Health and Education Facilities Authority UT-- Unlimited Tax IDA-- Industrial Development Authority VA-- Veterans Administration IDB--Industrial Development Bond VRDB--Variable Rate Demand Bond IDRB-- Industrial Development Revenue Bond VRDNs--Variable Rate Demand Notes IFA-- Industrial Finance Authority INS - Insured ISD--Independent School District
------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- Net Unrealized Gross Gross Cost of Appreciation/ Unrealized Unrealized Investments (Depreciation) Appreciation Depreciation For Federal for Federal for Federal for Federal Total Net Fund Tax Purposes Tax Purposes Tax Purposes Tax Purposes Assets** ------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- Equity Fund 207,994,892 16,643,719 31,365,061 14,721,342 228,128,836 Quantitative Equity Fund 291,005,721 127,035,224 154,671,294 27,636,070 418,423,239 Growth and Income Fund 127,591,916 29,530,096 33,076,146 3,546,050 160,194,245 Equity Index Fund 111,897,236 94,763,515 112,369,097 17,605,582 206,867,564 Emerging Markets Fund 118,632,198 29,573,204 38,534,589 8,961,385 143,872,471 Personal Equity Fund 196,460,256 45,841,125 52,359,448 6,518,323 247,409,837 Balanced Fund 319,852,807 39,661,671 46,595,196 6,933,525 365,558,425 Blue Chip Value Fund 2,219,583 (107,862) 104,997 212,859 2,432,538 New Horizons Fund 1,059,358 (38,029) 58,455 96,484 1,088,794 International Equity Fund 7,651,763 967,041 1,040,680 73,639 8,928,471 Fixed Income Fund 519,616,300 8,052,478 9,695,874 1,643,396 514,946,218 Intermediate Fixed Income Fund 124,142,746 2,416,975 2,852,644 435,669 126,311,706 Short-Term Fixed Income Fund 42,226,859 731,208 741,335 10,127 43,429,937 Georgia Municipal Bond Fund 122,450,267 3,889,136 3,889,136 155,077 126,671,562 North Carolina Municipal Bond 425,442,681 12,709,735 13,116,466 406,731 427,893,760 Fund South Carolina Municipal Bond 325,256,534 11,995,145 12,315,393 320,248 336,316,696 Fund Virginia Municipal Bond Fund 118,669,997 4,375,140 4,469,167 94,027 122,557,309 Money Market Fund 336,040,449 -- -- -- 335,403,255 Tax-Free Money Market Fund 33,930,981 -- -- -- 33,738,356 U.S. Treasury Money Market Fund 58,200,488 -- -- -- 57,839,345
** The categories of investments are shown as a percentage of net assets at May 31, 2002. At May 31, 2002, the following Funds had investments that were subject to alternative minimum tax: Percentage of total market Fund value subject to alternative minimum tax ------------------------------------------------------------- Georgia Municipal Bond Fund 0.8% North Carolina Municipal Bond 8.3% Fund South Carolina Municipal Bond 0.9% Fund Virginia Municipal Bond Fund 1.7% (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Statements of Assets and Liabilities May 31, 2002 (unaudited)
Wachovia Wachovia Quantitative Wachovia Wachovia Equity Equity Growth & Equity Fund Fund Income Fund Index Fund ------------------------------------------------------------------------------- Assets: Investments in securities, at value $224,638,611 $418,040,945 $157,122,012 $206,660,751 Cash denominated in foreign currencies (identified - - - cost $39,054) -- - - - Income receivable 314,958 657,260 220,779 315,486 Receivable for daily variation margin 8,500 31,025 11,475 6,800 Receivable for investments sold 3,261,083 -- 2,927,413 -- Receivable for shares sold 90,380 13,357 10,618 45,726 Receivable for foreign currency sold -- -- -- -- Prepaid expenses -- -- -- -- ------------- ------------- ---------------- ----------- Total assets 228,313,532 418,742,587 160,292,297 207,028,763 ------------- ------------- ---------------- ----------- Liabilities: Payable for investments purchased -- -- -- 33,866 Payable to adviser 119,414 240,676 80,217 28,926 Payable for dollar roll transactions -- -- -- -- Payable to bank -- -- -- -- Accrued expenses 65,282 78,672 17,835 98,407 ------------- ------------- ---------------- ----------- Total liabilities 184,696 319,348 98,052 161,199 ------------- ------------- ---------------- ----------- Net Assets Consist of: Paid in capital 260,703,427 266,438,403 124,489,158 106,036,299 Net unrealized appreciation (depreciation) of investments, futures contracts, and translation of assets and liabilities in foreign currency 16,238,579 125,481,463 29,480,607 94,454,953 Accumulated net realized gain(loss) on investments, futures, and foreign currency transactions (48,964,386) 26,074,516 5,884,018 6,537,247 Undistributed net investment income (Distributions in excess of net investment income) 151,216 428,857 340,462 (160,935) ------------- ------------- ---------------- ------------ Total Net Assets $ 228,128,836 $ 418,423,239 $ 160,194,245 $ 206,867,564 ------------- ------------- ---------------- ------------ Net Assets: Class A Shares $ 43,288,419 $ 39,552,924 $ 41,486,807 $ 106,749,050 ------------- ------------- ---------------- ------------ Class B Shares $ 6,885,671 $ 14,228,513 $ 113,847 $ 1,383,750 ------------- ------------- ---------------- ------------ Class C Shares $ 344,125 $ -- $ 2,070 $ 2,730,906 ------------- ------------- ---------------- ------------ Class Y Shares $ 177,610,621 $ 364,641,802 $ 118,591,521 $ 96,003,858 ------------- ------------- ---------------- ------------ Shares Outstanding Class A Shares 3,683,659 2,727,315 3,397,565 5,482,617 Class B Shares 596,566 998,400 9,409 71,192 Class C Shares 29,521 -- 171 140,429 Class Y Shares 15,109,394 25,091,475 9,692,470 4,921,867 ------------- ------------- ---------------- ------------ Total Shares Outstanding 19,419,140 28,817,190 13,099,615 10,616,105 Net Asset Value Per Share Class A Shares $ 11.75 $ 14.50 $ 12.21 $ 19.47 ---------------- ------------- ------------- ------------ Class B Shares $ 11.54 $ 14.25 $ 12.10 $ 19.44 ------------- ------------- ---------------- ------------ Class C Shares $ 11.66 $ -- $ 12.11 $ 19.45 ------------- ------------- ---------------- ------------ Class Y Shares $ 11.75 $ 14.53 $ 12.24 $ 19.51 ------------- ------------- ---------------- ------------ Offering Price Per Share* Class A Shares $ 12.47 ** $ 15.38 ** $ 12.95 ** $ 20.66 ** ------------- ------------- ---------------- ----------- Class B Shares $ 11.54 $ 14.25 $ 12.10 $ 19.44 ------------- ------------- ---------------- ------------ Class C Shares $ 11.78 *** $ -- $ 12.23 *** $ 19.65 *** ------------- ------------- ---------------- ------------ Class Y Shares $ 11.75 $ 14.53 $ 12.24 $ 19.51 ------------- ------------- ---------------- ------------ Redemption Proceeds Per Share* Class A Shares $ 11.75 $ 14.50 $ 12.21 $ 19.47 ------------- ------------- ---------------- ------------ Class B Shares $ 10.96 ****$ 13.54 ***$ 11.50 ****$ 18.47 **** ------------- ------------- ---------------- ------------ Class C Shares $ 11.54 ****$ -- $ 11.99 ****$ 19.26 ***** ------------- ------------- ---------------- ------------ Class Y Shares $ 11.75 $ 14.53 $ 12.24 $ 19.51 ------------- ------------- ---------------- ------------ Investments, at identified cost $ 207,994,892 $ 291,005,721 $ 127,591,916 $ 111,897,236 ============= ============= ================ ============ Wachovia Wachovia Wachovia Emerging Personal Wachovia Blue Markets Equity Balanced Chip Value Fund Fund Fund Fund Assets: Investments in securities, at value $ 148,205,402 $ 242,301,381 $ 359,514,478 $ 2,111,721 Cash denominated in foreign currencies 40,203 - - - (identified cost $39,054) - - - Income receivable 666,413 362,697 1,568,382 3,162 Receivable for daily variation margin -- 36,550 -- -- Receivable for investments sold 1,594,952 4,808,292 7,380,473 415,180 Receivable for shares sold 3,257 60,044 236 -- Receivable for foreign currency sold 2,863 -- -- -- Prepaid expenses -- -- -- 57,416 Total assets 150,513,090 247,568,964 368,463,569 2,587,479 Liabilities: Payable for investments purchased 6,402,890 -- 2,553,885 154,766 Payable to adviser 125,487 139,064 184,858 -- Payable for dollar roll transactions -- -- 1,848 -- Payable to bank -- -- -- 175 Accrued expenses 112,242 20,063 164,553 -- Total liabilities 6,640,619 159,127 2,905,144 154,941 Net Assets Consist of: Paid in capital 155,888,210 199,619,036 357,399,264 2,552,614 Net unrealized appreciation (depreciation) of investments, futures contracts, and translation of assets and liabilities in foreign currency 29,564,450 45,359,447 39,713,420 (107,862) Accumulated net realized gain(loss) on investments, futures, and foreign currency transactions (41,565,907) 2,186,392 (31,495,473) (12,418) Undistributed net investment income (Distributions in excess of net investment income) (14,282) 244,962 (58,786) 204 Total Net Assets $ 143,872,471 $ 247,409,837 $ 365,558,425 $ 2,432,538 Net Assets: Class A Shares $ 10,757,995 $ 658,098 $ 79,051,009 $ 385,940 Class B Shares $ 3,051 $ 33,648 $ 18,358,872 $ 121,974 Class C Shares $ 34,657 $ -- $ 172,599 $ 16,133 Class Y Shares $ 133,076,768 $ 246,718,091 $ 267,975,945 $ 1,908,491 Shares Outstanding Class A Shares 998,535 94,858 7,336,802 42,799 Class B Shares 284 4,889 1,707,678 13,624 Class C Shares 3,227 -- 16,017 1,798 Class Y Shares 12,338,285 35,512,367 24,849,180 211,326 Total Shares Outstanding 13,340,331 35,612,114 33,909,677 269,547 Net Asset Value Per Share Class A Shares $ 10.77 $ 6.94 $ 10.77 $ 9.02 Class B Shares $ 10.74 $ 6.88 $ 10.75 $ 8.95 Class C Shares $ 10.74 $ -- $ 10.78 $ 8.97 Class Y Shares $ 10.79 $ 6.95 $ 10.78 $ 9.03 Offering Price Per Share* Class A Shares $ 11.43 ** $ 7.36 ** $ 11.43 ** $ 9.57 Class B Shares $ 10.74 $ 6.88 $ 10.75 $ 8.95 Class C Shares $ 10.85 *** $ -- $ 10.89 *** $ 9.06 Class Y Shares $ 10.79 $ 6.95 $ 10.78 $ 9.03 Redemption Proceeds Per Share* Class A Shares $ 10.77 $ 6.94 $ 10.77 $ 9.02 Class B Shares $ 10.20 ****$ 6.54 ***$ 10.21 ****$ 8.50 Class C Shares $ 10.63 ****$ -- $ 10.67 ****$ 8.88 Class Y Shares $ 10.79 $ 6.95 $ 10.78 $ 9.03 Investments, at identified cost $ 118,632,198 $ 196,460,256 $ 319,801,058 $ 2,219,583
* See "What do Shares Cost" in the Prospectus. **Computation of Offering Price: 100/94.25 of net asset value. ***Computation of Offering Price: 100/99 of net asset value. ****Computation of Redemption Price: 95/100 of net asset value. *****Computation of Redemption Price: 99/100 of net asset value. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Statements of Assets and Liabilities - continued May 31, 2002 (unaudited)
Wachovia Wachovia Wachovia Wachovia Wachovia New International Wachovia Intermediate Short-Term Georgia Horizons Equity Fixed Fixed Fixed Municipal Income Income Income Fund Fund Fund Fund Fund Bond Fund --------------------------------------------------------------------------------------------------- Assets: Investments in securities, at $1,021,329 $42,960,837 value $ 8,618,804 $527,936,946 $126,559,721 $ 126,330,713 Investments in repurchase - - - - - - agreements, at amortized cost and value - - - - - - Cash 38 -- 7 -- -- -- Income receivable 881 37,858 4,344,397 1,336,543 503,254 1,785,994 Receivable for investments sold -- 266,366 6,266,280 949,822 -- -- Receivable for shares sold -- 33,918 2,167,027 402 1,466 -- Prepaid Expenses 86,578 -- -- -- -- -- ----------- ----------- ------------ ----------- ------------ ---------- Total assets 1,108,826 8,956,946 540,714,657 128,846,488 43,465,557 128,116,707 ----------- ----------- ------------ ----------- ------------ ---------- Liabilities: Payable for investments - - 25,435,644 2,464,549 - 955,448 purchased - - - Payable to adviser -- -- 235,079 50,901 1,438 44,386 Payable for dollar roll - - 14,959 2,022 - - transactions - - - - Payable to bank -- 1,401 -- -- -- 925 Income distribution payable -- -- -- -- -- 418,135 Accrued expenses 20,032 27,074 82,757 17,310 34,182 26,251 ----------- ----------- ------------ ----------- ------------ ---------- Total liabilities 20,032 28,475 25,768,439 2,534,782 35,620 1,445,145 ----------- ----------- ------------ ----------- ------------ ---------- Net Assets Consist of: Paid in capital 1,836,058 9,601,844 501,083,322 123,729,887 44,971,793 122,729,839 Net unrealized appreciation (depreciation) of investments, futures contracts, and translation of assets and liabilities in (38,029) 967,090 8,320,646 2,397,545 733,978 3,880,446 foreign currency Accumulated net realized gain(loss) on investments, futures, and (706,381) (1,631,157) 5,591,331 148,673 (2,362,105) 447,118 foreign currency transactions Undistributed net investment income Distributions in excess of net (2,854) (9,306) (49,081) 35,601 86,271 14,159 ( investment income) ----------- ----------- ------------ ----------- ------------ ---------- Total Net Assets $ 1,088,794 $ 8,928,471 $514,946,218 $126,311,706 $43,429,937 $ 126,671,562 ----------- ----------- ------------ ----------- ------------ ---------- Net Assets: Class A Shares $ 121,673 $ 4,598,155 $18,587,772 $2,656,116 $7,068,723 $ 4,669,469 ----------- ----------- ------------ ----------- ------------ ---------- Class B Shares $ 72,839 $ 1,886 $1,059,739 $-- $110,826 $ -- ----------- ----------- ------------ ----------- ------------ ---------- Class C Shares $ 86,408 $ 92,441 $79,080 $20,921 $5,999 $ -- ----------- ----------- ------------ ----------- ------------ ---------- Class Y Shares $ 807,874 $ 4,235,989 $495,219,627 $123,634,669 $36,244,389 $ 122,002,093 ----------- ----------- ------------ ----------- ------------ ---------- Shares Outstanding Class A Shares $ 22,956 518,004 1,840,945 266,364 703,143 416,864 Class B Shares $ 13,897 213 104,972 -- 11,031 -- Class C Shares $ 16,471 10,504 7,835 2,100 597 -- Class Y Shares $ 152,083 475,493 49,056,797 12,414,734 3,611,380 10,891,575 ----------- ----------- ------------ ----------- ------------ ---------- Total Shares Outstanding 205,407 1,004,214 51,010,549 12,683,198 4,326,151 11,308,439 Net Asset Value Per Share Class A Shares $ 5.30 $ 8.88 $10.10 $9.97 $10.05 $ 11.20 ----------- ------------ ---------- ----------- ----------- ------------ Class B Shares $ 5.24 $ 8.85 $10.10 $-- $10.05 $ -- ----------- ----------- ------------ ----------- ------------ ---------- Class C Shares $ 5.25 $ 8.80 $10.09 $9.96 $10.05 $ -- ----------- ----------- ------------ ----------- ------------ ---------- Class Y Shares $ 5.31 $ 8.91 $10.09 $9.96 $10.04 $ 11.20 ----------- ----------- ------------ ----------- ------------ ---------- Offering Price Per Share Class A Shares $ 5.62 *** $ 9.42 *** $10.58 **** $10.44 **** $10.31 ** $ 11.73 **** ----------- ----------- ------------ ----------- ------------ ---------- Class B Shares $ 5.24 $ 8.85 $10.10 $-- $10.05 $ -- ----------- ----------- ------------ ----------- ------------ ---------- Class C Shares $ 5.30 *****$ 8.89 *****$10.19 *****$10.06 *****$10.15 ****$*-- ----------- ----------- ------------ ----------- ------------ ---------- Class Y Shares $ 5.31 $ 8.91 $10.09 $9.96 $10.04 $ 11.20 ----------- ----------- ------------ ----------- ------------ ---------- Redemption Proceeds Per Share Class A Shares $ 5.30 $ 8.88 $10.10 $9.97 $10.05 $ 11.20 ----------- ----------- ------------ ----------- ------------ ---------- Class B Shares $ 4.98 *****$ 8.41 *****$9.60 *****$-- $9.55 ****$ -- ----------- ----------- ------------ ----------- ------------ ---------- Class C Shares $ 5.20 *****$* 8.71 *****$9.99 *****$9.86 *****$9.95 ****$*-- ----------- ----------- ------------ ----------- ------------ ---------- Class Y Shares $ 5.31 $ 8.91 $10.09 $9.96 $10.04 $ 11.20 ----------- ----------- ------------ ----------- ------------ ---------- Investments, at identified cost $ 1,059,358 $ 7,651,763 $519,616,300 $124,162,176 $42,226,859 $ 122,450,267 =========== =========== ============ =========== ============ ==========
Wachovia Wachovia South Wachovia Wachovia Money Wachovia Wachovia North Carolina Virginia Market Fund Tax-Free Money U.S. Narolina Municipal Bond Municipal Bond Market Fund Treasury Municipal Fund Fund Money Bond Fund Market Fund Assets: Investments in repurchase $438,152,416 $337,251,679 $123,043,137 $271,705,194 $43,930,981 $49,259,581 agreements, at amortized cost and value Cash -- -- -- 64,335,255 -- 8,940,907 Income receivable -- -- -- -- 354,107 -- Receivable for investments sold 6,268,723 4,650,581 1,947,432 921,885 206,266 258,677 Receivable for shares sold -- -- -- -- -- -- Prepaid Expenses -- -- -- -- -- -- Total assets -- -- -- -- -- -- Liabilities: 444,421,139 341,902,260 124,990,569 336,962,334 34,491,354 58,459,165 Payable for investments purchased Payable to adviser 14,706,903 4,226,120 1,965,146 -- -- -- Payable for dollar roll 166,812 123,395 39,947 8,594 27,228 31,746 transactions Payable to bank -- -- -- -- -- -- Income distribution payable -- -- 779 -- -- -- Accrued expenses 1,594,496 1,188,707 413,624 1,103,826 610,001 511,233 Total liabilities 59,168 47,342 13,764 446,659 115,769 76,841 Net Assets Consist of: 16,527,379 5,585,564 2,433,260 1,559,079 752,998 619,820 Paid in capital Net unrealized appreciation 413,557,266 321,912,988 117,751,098 335,403,255 33,738,356 57,839,345 (depreciation) of investments, futures contracts, and translation of assets and liabilities in foreign currency 12,411,029 11,995,145 4,353,074 -- -- -- Accumulated net realized gain(loss) on investments, futures, and foreign currency transactions Undistributed net investment 1,468,813 2,226,183 429,198 - - - income - - - (Distributions in excess of net investment income) Total Net Assets 456,652 182,380 23,939 -- -- -- Net Assets: $427,893,760 $336,316,696 $122,557,309 $335,403,255 $33,738,356 $57,839,345 Class A Shares -- -- -- Class B Shares $6,416,218 $49,998,326 $6,929,868 $296,875,683 + $33,738,355 + $47,215,122 Class C Shares $-- $-- $-- $-- $-- $-- Class Y Shares $-- $-- $-- $-- $-- $-- Shares Outstanding $421,477,542 $286,318,370 $115,627,441 $38,527,572 ++ $1 ++ $10,624,223 Class A Shares Class B Shares 574,183 4,505,129 667,718 296,875,683 + 33,738,355 + 47,215,122 Class C Shares -- -- -- -- -- -- Class Y Shares -- -- -- -- -- -- Total Shares Outstanding 37,718,038 25,798,726 11,141,053 38,527,572 ++ 1 ++ 10,624,223 Net Asset Value Per Share 38,292,221 30,303,855 11,808,771 335,403,255 33,738,356 57,839,345 Class A Shares Class B Shares $11.17 $11.10 $10.38 $1.00 + $1.00 + $1.00 Class C Shares $-- $-- $-- $-- $-- $-- Class Y Shares $-- $-- $-- $-- $-- $-- Offering Price Per Share $11.17 $11.10 $10.38 $1.00 ++ $1.00 ++ $1.00 Class A Shares Class B Shares $11.70 **** $11.62 **** $10.87 **** $1.00 + $1.00 + $1.00 Class C Shares $-- $-- $-- $-- $-- $-- Class Y Shares $-- $-- $-- $-- $-- $-- Redemption Proceeds Per Share $11.17 $11.10 $10.38 $1.00 ++ $1.00 ++ $1.00 Class A Shares Class B Shares $11.17 $11.10 $10.38 $1.00 + $1.00 + $1.00 Class C Shares $-- $-- $-- $-- $-- $-- Class Y Shares $-- $-- $-- $-- $-- $-- Investments, at identified cost $11.17 $11.10 $10.38 $1.00 ++ $1.00 ++ $1.00 $425,741,387 $325,256,534 $118,690,063 $336,040,449 $33,930,981 $58,200,488
* See "What Do Shares Cost" in the Prospectus. **Computation of Offering Price: 100/97.50 of net asset value. ***Computation of Offering Price: 100/94.25 of net asset value. ****Computation of Offering Price: 100/95.50 of net asset value. *****Computation of Redemption Proceeds: 95/100 of net asset value. ******Computation of Offering Price: 100/99 of net asset value. *******Computation of Redemption Proceeds: 99/100 of net asset value. + Investment Shares ++ Institutional Shares (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Statements of Operations Six Months Ended May 31, 2002 (unaudited)
Wachovia Wachovia Quantitative Wachovia Wachovia Equity Equity Growth & Equity Fund Fund Income Fund Index Fund --------------------------------------------------------------------------- Investment Income: Dividends $1,544,197 (1) $3,224,987 (2) $1,089,689 (3)$1,641,854 (4) Interest 173,179 216,800 62,971 137,204 -------------- -------------- --------------- --------------- Total income 1,717,376 3,441,787 1,152,660 1,779,058 -------------- -------------- --------------- --------------- Expenses: Investment adviser fee 913,375 1,603,876 639,594 374,963 Administrative personnel and services fee 100,819 177,234 70,637 96,329 Custodian fees 25,722 40,602 18,274 24,510 Transfer and dividend disbursing agent fees 15,306 16,569 19,195 8,246 and expenses Directors'/Trustees' fees 6,785 6,304 6,110 5,725 Auditing fees 13,070 13,034 13,082 12,627 Legal fees 4,309 3,730 4,255 4,507 Portfolio accounting fees 1,468 917 1,000 6,483 Distribution services fee - Class B Shares 29,621 60,044 463 5,212 Distribution services fee - Class C Shares 1,570 -- 10 10,225 Shareholder services fee - Class A Shares 70,286 58,558 62,274 140,056 Shareholder services fee - Class B Shares 9,874 20,015 154 1,737 Shareholder services fee - Class C Shares 523 -- 3 3,408 Share registration costs 30,084 37,235 28,093 37,320 Printing and postage 8,159 7,405 5,122 5,156 Insurance premiums 1,706 2,259 1,368 1,837 Miscellaneous 3,080 3,426 1,770 2,176 -------------- -------------- --------------- --------------- Total expenses 1,235,757 2,051,208 871,404 740,517 -------------- -------------- --------------- --------------- Waivers and reimbursement- Waiver of investment adviser fee (47,102) (56,677) (59,261) (67,430) Reimbursement of other operating expenses -- -- -- -- -------------- -------------- --------------- --------------- Total waivers and reimbursement (47,102) (56,677) (59,261) (67,430) -------------- -------------- --------------- --------------- Net expenses 1,188,655 1,994,531 812,143 673,087 -------------- -------------- --------------- --------------- Net investment income 528,721 1,447,256 340,517 1,105,971 -------------- -------------- --------------- --------------- Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions: Net realized gain (loss) on investments and foreign currency transactions (1,609,023) 26,594,828 6,527,801 8,343,719 Net realized gain (loss) on futures contracts 194,946 (189,889) 606,907 (332,959) Net change in unrealized appreciation (depreciation) of investments, futures contracts and translation (59,137,604) (28,291,536) (79,752,988) of assets and liabilities in foreign currency(23,319,546) -------------- -------------- --------------- --------------- Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency (24,733,623) (32,732,665) (21,156,828) (71,742,228) transactions -------------- -------------- --------------- --------------- Change in net assets resulting from operations $(24,204,902) $(31,285,409) $(20,816,311) $(70,636,257) ============== ============== =============== ===============
Wachovia Wachovia Wachovia Emerging Personal Wachovia Blue Markets Equity Balanced Chip Value Fund Fund Fund Fund Investment Income: Dividends $ 1,449,252 (5)$ 1,576,193 (6) $1,520,409 $ 16,698 Interest 15,135 166,696 5,050,755 982 Total income 1,464,387 1,742,889 6,571,164 17,680 Expenses: Investment adviser fee 737,805 966,515 1,434,213 8,967 Administrative personnel and services fee 57,112 106,770 158,521 992 Custodian fees 173,680 26,943 36,966 256 Transfer and dividend disbursing agent fees 13,386 4,002 4,833 and expenses 7,024 Directors'/Trustees' fees 3,400 5,446 9,282 378 Auditing fees -- 12,798 13,829 13,494 Legal fees 6,510 3,610 2,708 6,066 Portfolio accounting fees 2,691 755 6,363 738 Distribution services fee - Class B Shares 5 130 75,246 536 Distribution services fee - Class C Shares 99 -- 1,097 59 Shareholder services fee - Class A Shares 13,447 882 128,949 488 Shareholder services fee - Class B Shares 2 44 25,082 179 Shareholder services fee - Class C Shares 33 -- 366 20 Share registration costs 30,580 29,518 30,788 22,124 Printing and postage 8,537 4,902 7,229 2,937 Insurance premiums 12 1,694 2,415 773 Miscellaneous 2,380 1,875 4,342 2,231 Total expenses 1,049,679 1,165,884 1,942,229 67,262 Waivers and reimbursement- Waiver of investment adviser fee -- (46,432) (154,370) (8,967) Reimbursement of other operating expenses -- -- -- (46,253) Total waivers and reimbursement -- (46,432) (154,370) (55,220) Net expenses 1,049,679 1,119,452 1,787,859 12,042 Net investment income 414,708 623,437 4,783,305 5,638 Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions: Net realized gain (loss) on investments and foreign currency transactions (2,731,448) 2,505,115 (4,185,579) 121,826 Net realized gain (loss) on futures contracts -- 51,050 -- -- Net change in unrealized appreciation (depreciation) of investments, futures contracts and 28,698,820 (32,836,797) translation of assets and liabilities in foreign currency (50,787) Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency 25,967,372 (30,280,632) (19,220,975) transactions 71,039 Change in net assets resulting from operations$ 26,382,080 $ (29,657,195) $(14,437,670) $ 76,677
(1) Net of foreign taxes withheld of $6,114 (2) Net of foreign taxes withheld of $3,331. (3) Net of foreign taxes withheld of $7,171. (4) Net of foreign taxes withheld of $11,710. (5) Net of foreign taxes withheld of $167,045. (6) Net of foreign taxes withheld of $10,492. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Statements of Operations - continued Six Months Ended May 31, 2002 (unaudited)
Wachovia Wachovia Wachovia New International Wachovia Intermediate Horizons Equity Fixed Income Fixed Income Fund Fund Fund Fund ------------------------------------------------------------------ Investment Income: Dividends $2,962 $96,768 (1)$ 877,462 $171,220 Interest 334 4,623 15,453,690 (2) 3,424,344 (3) ------------- --------------- ------------- -------------- Total income 3,296 101,391 16,331,152 3,595,564 ------------- --------------- ------------- -------------- Expenses: Investment adviser fee 4,267 49,872 1,612,892 384,572 Administrative personnel and services fee 471 3,857 207,879 49,618 Custodian fees 122 2,493 45,580 12,819 Transfer and dividend disbursing agent fees and 5,386 1,624 1,751 7,926 expenses Directors'/Trustees' fees 20 53 7,718 3,181 Auditing fees 12,967 -- 13,724 14,044 Legal fees 4,319 2,133 6,546 2,709 Portfolio accounting fees 1,306 924 12,075 2,877 Distribution services fee - Class B Shares 300 6 4,305 -- Distribution services fee - Class C Shares 350 338 294 78 Shareholder services fee - Class A Shares 163 6,499 33,395 3,321 Shareholder services fee - Class B Shares 100 2 1,435 -- Shareholder services fee - Class C Shares 117 113 98 26 Share registration costs 47,370 50,375 39,840 37,390 Printing and postage 2,409 3,362 9,521 3,971 Insurance premiums 782 109 2,883 1,269 Miscellaneous 1,984 1,044 2,443 2,642 ------------- --------------- ------------- -------------- Total expenses 82,433 122,804 2,002,379 526,443 ------------- --------------- ------------- -------------- Waivers and reimbursement - Waiver of investment adviser fee (4,267) (34,555) (54,265) (48,714) Reimbursement of other operating expenses (72,016) ------------- --------------- ------------- -------------- Total waivers and reimbursement (76,283) (34,555) (54,265) (48,714) ------------- --------------- ------------- -------------- Net expenses 6,150 88,249 1,948,114 477,729 ------------- --------------- ------------- -------------- Net investment income (net (2,854) 13,142 14,383,038 3,117,835 operating loss) ------------- --------------- ------------- -------------- Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Futures Contracts: Net realized gain (loss) on investments and foreign currency transactions (366,882) (1,001,517) 8,734,241 290,244 Net realized gain (loss) on futures contracts -- -- 438,708 (22,675) Net change in unrealized appreciation (depreciation ) of investments, futures contracts and translation of assets 137,857 1,145,229 (13,601,549) (1,398,039) and liabilities in foreign currency ------------- --------------- ------------- -------------- Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions (229,025) 143,712 (4,428,600) (1,130,470) ------------- --------------- ------------- -------------- Change in net assets resulting from operations $(231,879) $156,854 $ 9,954,438 $1,987,365 ============= =============== ============= ============== Wachovia Wachovia Wachovia Wachovia Short-Term Georgia North South Carolina Carolina Fixed Income Municipal Municipal Municipal Fund Bond Fund Bond Fund Bond Fund Investment Income: Dividends $-- $ -- $ -- $ -- Interest 1,178,163 2,952,162 10,023,013 8,169,593 Total income 1,178,163 2,952,162 10,023,013 8,169,593 Expenses: Investment adviser fee 121,646 489,595 1,601,844 1,253,233 Administrative personnel and services fee 17,117 50,538 165,395 129,400 Custodian fees 4,423 13,056 38,270 31,298 Transfer and dividend disbursing agent fees and 6,425 1,664 5,970 5,823 expenses Directors'/Trustees' fees 1,164 826 1,855 4,638 Auditing fees 13,962 13,958 14,060 9,574 Legal fees 4,579 3,063 5,381 2,859 Portfolio accounting fees 709 5,554 11,663 6,855 Distribution services fee - Class B Shares 470 -- -- -- Distribution services fee - Class C Shares 23 -- -- -- Shareholder services fee - Class A Shares 8,627 5,747 8,080 65,321 Shareholder services fee - Class B Shares 157 -- -- -- Shareholder services fee - Class C Shares 7 -- -- -- Share registration costs 42,174 16,144 14,079 10,859 Printing and postage 2,943 3,312 5,459 4,083 Insurance premiums 964 1,220 2,339 1,393 Miscellaneous 1,531 316 3,326 2,207 Total expenses 226,921 604,993 1,877,721 1,527,543 Waivers and reimbursement - Waiver of investment adviser fee (78,298) (207,572) (588,250) (493,065) Reimbursement of other operating expenses Total waivers and reimbursement (78,298) (207,572) (588,250) (493,065) Net expenses 148,623 397,421 1,289,471 1,034,478 Net investment income (net 1,029,540 2,554,741 8,733,542 7,135,115 operating loss) Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Futures Contracts: Net realized gain (loss) on investments and foreign currency transactions 349,046 72,945 1,975,807 2,266,689 Net realized gain (loss) on futures contracts -- -- -- -- Net change in unrealized appreciation (depreciation ) of investments, futures contracts and translation of assets (640,816) 253,962 (399,301) (2,231,400) and liabilities in foreign currency Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions (291,770) 326,907 1,576,506 35,289 Change in net assets resulting from operations $737,770 $ 2,881,648 $ 10,310,048 $ 7,170,404 (1) Net of foreign tax withheld $15,046. (2) Net of dollar roll expense of $44,327 (3) Net of dollar roll expense of $4,703. (See Notes which are an integral part of the Financial Statements)
(1) Net of foreign tax withheld $15,046. (2) Net of dollar roll expense of $44,327 (3) Net of dollar roll expense of $4,703. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Statements of Operations - continued Six Months Ended May 31, 2002 (unaudited) ------- -------
------- ------- Wachovia Wachovia Wachovia Wachovia Virginia Money Tax-Free U.S. Treasury Municipal Market Money Market Money Market Bond Fund Fund Fund Fund -------------------------------------------------------------------------- Investment Income: Interest $2,952,308 $13,074,740 $4,171,033 $6,154,373 ---------------- ---------------- ----------------- --------------- Expenses: Investment adviser fee 458,944 3,131,025 1,305,164 1,485,259 Administrative personnel and services fee 48,014 482,373 201,617 228,905 Custodian fees 12,404 81,232 44,398 47,868 Transfer and dividend disbursing agent fees and 4,033 3,922 2,999 745 expenses Directors'/Trustees' fees 2,771 29,573 9,928 2,846 Auditing fees 13,421 13,702 14,388 6,221 Legal fees 2,865 4,733 6,069 2,915 Portfolio accounting fees 6,560 1,243 752 1,328 Distribution services fee - Investment Shares -- 1,632,109 438,685 343,489 Shareholder services fee - Class A Shares 8,643 -- -- -- Share registration costs 13,743 33,498 10,838 11,979 Printing and postage 1,154 95,957 15,249 19,035 Insurance premiums 1,220 5,771 2,896 3,224 Miscellaneous 1,870 -- 6,276 2,384 ---------------- ----------------- --------------- ---------------- Total expenses 575,642 5,515,138 2,059,259 2,156,198 ---------------- ---------------- ----------------- --------------- Waivers--- Waiver of investment adviser fee (194,884) (1,500,063) (993,891) (1,099,408) ---------------- ---------------- ----------------- --------------- Net expenses 380,758 4,015,075 1,065,368 1,056,790 ---------------- ---------------- ----------------- --------------- Net investment income 2,571,550 9,059,665 3,105,665 5,097,583 ---------------- ---------------- ----------------- --------------- Realized and Unrealized Gain (Loss) on Investments: Net realized gain on investments 469,121 -- -- -- Net change in unrealized appreciation 104,627 - - - (depreciation) of investments - - - ---------------- ---------------- ----------------- --------------- Net realized and unrealized gain on investments 573,748 -- -- -- ---------------- ---------------- ----------------- --------------- Change in net assets resulting from operations $3,145,298 $9,059,665 $3,105,665 $5,097,583 ================ ================ ================= ===============
(See Notes which are an integral part of the Financial Statements) The Wachovia Funds Statements of Changes in Net Assets
Wachovia Wachovia Wachovia Equity Fund Quantitative Equity Fund Growth & Income Fund Six Months Year Ended Six Months Year Ended Six Months Year Ended Ended Ended Ended (unaudited) November (unaudited) November 30, (unaudited) November 30, 30, May 31, 2002 2001 May 31, 2002 2001 May 31, 2002 2001 Increase (Decrease) in Net Assets Operations- Net investment income $ 528,721 $ 1,577,832 $ 1,447,256 $ 3,025,434 $ 340,517 $390,982 Net realized gain (loss) on 1,414,077) 51,465,868 6,404,939 2,994,534 ,134,708 ,236,449 investments and futures contracts ( ( ) 2 2 7 7 Change in net assets resulting 23,319,546) 37,662,036 59,137,604) 149,214,181 28,291,536) 70,652,786) from operations ( ( ) ( ( ) ( ( (24,204,902) (87,550,072) (31,285,409) (123,194,213) (20,816,311) (63,025,355) Distributions to Shareholders: Distributions from net investment income Class A Shares (74,856) (355,339) (109,870) (180,210) (44) --- Class B Shares --- (88) --- (194) --- --- Class C Shares --- (1) --- --- --- --- Class Y Shares (475,305) (1,530,015) (1,420,738) (2,487,171) (390,994) --- Distributions from net realized gain on investments and futures contracts Class A Shares --- (3,196,835) (2,511,178) (5,242,031) (2,329,144) (5,840,719) Class B Shares --- (315,341) (859,805) (1,491,392) (5,557) (17) Class C Shares --- (7) (6) (15) (150) (17) Class Y Shares --- (7,696,729) (20,422,918) (34,703,350) (6,141,624) (14,178,075) Change in net assets from (550,161) (13,094,355) (25,324,515) (44,104,363) (8,867,513) (20,018,828) distributions to shareholders Share Transactions: Proceeds from sale of shares 39,199,348 87,348,658 4,539,163 31,939,513 5,112,625 23,161,193 Net asset value of shares issued to 288,823 9,595,570 22,562,017 39,276,174 4,910,110 11,199,924 shareholders in payment of dividends declared Cost of shares redeemed (84,768,409) (100,504,987) (34,372,079) (103,547,085) (21,276,221) (36,129,286) Change in net assets from share (45,280,238) (3,560,759) (7,270,899) (32,331,398) (11,253,486) (1,768,169) transactions Change in net assets (70,035,301) (104,205,186) (63,880,823) (199,629,974) (40,937,310) (84,812,352) Net Assets: Beginning of period 298,164,137 402,369,323 482,304,062 681,934,036 201,131,555 285,943,907 ------------------------------------------ End of period 228,128,836 $ 298,164,137 $ 418,423,239 $ 482,304,062 $ 160,194,245 $201,131,555 ========================================== Undistributed net investment income $ 151,216 $ 172,656 $ 428,857 $ 512,209 $ 340,462 $390,983 included in net assets at end of period
========================================== (See Notes which are an integral part of the Financial Statements)
The Wachovia Funds Statements of Changes in Net Assets Wachovia Wachovia Wachovia Equity Index Fund Emerging Markets Fund Personal Equity Fund ------------------------------ ------------------------------ ----------------------------- Six Months Ended Year Six Months Year Ended Six Months Year Ended (unaudited) Ended Ended November 30, Ended November 30, November (unaudited) (unaudited) 30, May 31, 2002 2001 May 31, 2002 2001 May 31, 2002 2001 ---------------------------------------------------------------------- ------------------------------ ----------------------------- Increase (Decrease) in Net Assets Operations- Net investment income 1,105,971 $ 4,099,810 $ 414,708 $ 2,152,192 $ 623,437 $ 1,009,667 Net realized gain (loss) on investments, futures contracts and foreign currency transactions 8,010,760 (2,287,556) (2,731,448) (21,294,449) 2,556,165 (898,725) Net realized gain on capital gain -- -- 501,537 -- -- distribution from other investment companies --- - - - - Net change in unrealized appreciation (depreciation) of investments, futures contracts and translation of (58,571,172) 28,698,820 10,243,807 (32,836,797) (83,662,892) assets and liabilities in foreign currency (79,752,988) ------------------ ----------- --------------- ------------- -------------- -------------- Change in net assets resulting from (56,758,918) 26,382,080 (8,396,913) (29,657,195) (83,551,950) operations (70,636,257) ------------------ ----------- --------------- ------------- -------------- -------------- Distributions to Shareholders: Distributions from net investment income Class A Shares (405,087) (1,284,364) (101,851) (49,960) (570) ---- Class B Shares (126) (1,539) (5) (1) ---- ---- Class C Shares (266) (3,178) (98) (36) (1) ---- Class Y Shares (861,427) (3,466,342) (1,702,024) (965,790) (744,500) (707,200) Distributions from net realized gain on investments, futures contracts, and foreign currency transactions Class A Shares (724,857) --- ---- ---- (416) (7,721) Class B Shares (8,859) --- ---- ---- (20) (2) Class C Shares (17,970) --- ---- ---- (2) (2) Class Y Shares (1,689,090) --- ---- ---- (165,387) (3,348,179) ------------------ ----------- --------------- ------------- -------------- -------------- Change in net assets from (4,755,423) (1,803,978) (1,015,787) (910,896) 4,063,104) distributions to shareholders (3,707,682) ------------------ ----------- --------------- ------------- -------------- -------------- Share Transactions: Proceeds from sale of shares 104,687,875 107,975,122 74,309,188 112,786,996 8,640,483 24,087,784 Net asset value of shares issued to 4,341,303 648,058 358,278 158,999 3,217,615 shareholders in payment of dividends declared 3,342,114 Cost of shares redeemed (192,490,427) (172,414,331)(108,759,508) (123,943,674) (29,128,233) (37,862,105) ------------------ ----------- --------------- ------------- -------------- -------------- Change in net assets from share (60,097,906) (33,802,262) (10,798,400) (20,328,751) (10,556,706) transactions (84,460,438) ------------------ ----------- --------------- ------------- -------------- -------------- Change in net assets (158,804,377) (121,612,247)(9,224,160) (20,211,100) (50,896,842) (98,171,760) Net Assets: Beginning of period 365,671,941 487,284,188 153,096,631 173,307,731 298,306,679 396,478,439 ---------------------------------------------------------- ----------- --------------- ------------- -------------- -------------- End of period 206,867,564 $ 365,671,94$ 143,872,471 $ 153,096,631 $ 247,409,837 $ 298,306,679 ========================================================== =========== =============== ============= ============== ============== Undistributed (Distributions in excess of) net investment income included in net assets at end of period(160,935) $ -- $ (14,282) $ 1,374,988 $ 244,962 $ 366,596 ========================================================== =========== =============== ============= ============== ==============
(See Notes which are an integral part of the Financial Statements) The Wachovia Funds Statements of Changes in Net Assets
Wachovia Wachovia Wachovia Balanced Fund Blue Chip Value Fund New Horizons Fund Six Months ear Ended Six Months eriod Ended Six Months eriod Ended Ended Yovember 30, Ended Povember 30, Ended Povember 30, (unaudited) N (unaudited) N (unaudited) N -------------------------------------------------------------------- -------------- ---------------------------------------------- May 31, 2002 2001 May 31, 2002 2001(1) May 31, 2002 2001(2) -------------------------------------------------------------------- -------------- ---------------------------------------------- Increase (Decrease) in Net Assets Operations- Net investment income (net operating loss) $ 4,783,305 $ 13,869,785 $ 5,638 $ 5,757$ (2,854) $ (5,594) Net realized gain (loss) on (25,595,952) investments (4,185,579) 121,826 (134,244) (366,882) (339,499) Net change in unrealized appreciation (44,248,803) (depreciation) of investments (15,035,396) (50,787) (57,075) 137,857 (175,886) --------------- ------------- -------------- ---------------------------- ----------------- Change in net assets resulting from (55,974,970) operations (14,437,670) 76,677 (185,562) (231,879) (520,979) --------------- ------------- -------------- ---------------------------- ----------------- Distributions to Shareholders: Distributions from net investment income Class A Shares (1,361,214) (4,632,239) (1,042) (48) ---- ---- Class B Shares (154,038) (387,948) ---- ---- ---- ---- Class C Shares (2,407) (4,429) ---- ---- ---- ---- Class Y Shares (3,638,370) (10,029,961) (7,716) (2,385) ---- ---- Distributions from net realized gain on investments Class A Shares --- (12,709,960) ---- ---- ---- ---- Class B Shares --- (1,497,512) ---- ---- ---- ---- Class C Shares --- (15) ---- ---- ---- ---- Class Y Shares --- (25,041,683) ---- ---- ---- ---- --------------- ------------- -------------- ---------------------------- ----------------- Change in net assets from (5,156,029) (54,303,747) (8,758) (2,433) ---- ---- distributios to shareholders --------------- ------------- -------------- ---------------------------- ----------------- Share Transactions: Proceeds from sale of shares 16,787,254 77,025,868 771,001 2,219,360 179,600 1,988,914 Net asset value of shares issued to shareholders in payment of dividends declared 2,481,596 45,252,140 6,324 2,049 ---- Cost of shares redeemed (112,971,683) (157,538,317) (364,018) (82,102) (199,844) (127,018) --------------- ------------- -------------- ---------------------------- ----------------- Change in net assets from share (35,260,309) transactions (93,702,833) 413,307 2,139,307 (20,244) 1,861,896 --------------- ------------- -------------- ---------------------------- ----------------- Change in net assets (113,296,532) (145,539,026) 481,226 1,951,312 (252,123) 1,340,917 Net Assets: Beginning of period 478,854,957 624,393,983 1,951,312 ---- 1,340,917 ---- ------------------------------------------------------ ------------- -------------- ---------------------------- ----------------- End of period $ 365,558,425 $ 478,854,957 $ 2,432,538 $ 1,951,312$ 1,088,794 $ 1,340,917 ====================================================== ============= ============== ============================ ================= Undistributed (Distributions in excess of) net investment income included in net assets at end of period $ (58,786) $ 880,187 $ 204 $ 3,324$ (2,854) $ --- ====================================================== ============= ============== ============================ =================
(1) Reflects operations for the period from December 26, 2000 (date of initial public investment) to November 30, 2001. (2) Reflects operations for the period from December 22, 2000 (date of initial public investment) to November 30, 2001. The Wachovia Funds Statements of Changes in Net Assets
Wachovia Wachovia Wachovia International Equity Fund Fixed Income Fund Intermediate Fixed Income Fund ----------------------------- ---------------------------- ------------------------------- Six Months Period Six Months Year Ended Six Year Ended Ended Ended Ended November 30, Months (unaudited) November 30, (unaudited) Ended (unaudited) November 30, May 31, 2002 2001(1) May 31, 2002 2001 May 31, 2001 2002 -------------------------------------------------------------------- ---------------------------- ------------------------------- Increase (Decrease) in Net Assets Operations- Net investment income 13,142 $ (26,108) $ 14,383,038 $ 34,476,806 $ 3,117,83$ 7,354,250 Net realized gain (loss) on investments(1,001,517) (629,640) 9,172,949 6,891,398 267,569 1,905,330 Net change in unrealized appreciation (178,139) (13,601,549) 20,196,191 (1,398,039) 3,741,386 (depreciation) of investments 1,145,229 --------------- ------------- ------------- ------------- --------- ---------------- Change in net assets resulting from (833,887) 9,954,438 61,564,395 5,987,361 3,000,966 operations 156,854 --------------- ------------- ------------- ------------- --------- ---------------- Distributions to Shareholders: Distributions from net investment income Class A Shares ---- ---- (806,974) (3,052,718) (63,419) (165,551) Class B Shares ---- ---- (28,541) (42,277) (4) (10) Class C Shares ---- ---- (1,887) (2,359) (426) (582) Class Y Shares ---- ---- (14,977,254) (30,251,988) (3,209,620) (7,180,082) Distributions from net realized gain on investments Class A Shares ---- ---- --- --- (17,663) --- Class B Shares ---- ---- --- --- (1) --- Class C Shares ---- ---- --- ---- (139) --- Class Y Shares ---- ---- --- --- (856,254) --- ------------- ------------- --------- ---------------- --------------- ------------- Change in net assets from ---- ---- (15,814,656) (33,349,342) (4,147,526) (7,346,225) distributions to shareholders --------------- ------------- ------------- ------------- --------- ---------------- Share Transactions: Proceeds from sale of shares 5,352,389 16,175,179 61,850,874 179,206,866 12,759,823 58,331,605 Net asset value of shares issued to --- 3,549,248 10,294,673 476,353 660,892 shareholders in payment of dividends declared ---- - Cost of shares redeemed (6,981,018) (4,941,046) (166,706,859) (176,067,240) (23,111,444) (58,690,984) --------------- ------------- ------------- ------------- --------- ---------------- Change in net assets from share 11,234,133 (101,306,737) 13,434,299 (9,875,268) 301,513 transactions (1,628,629) --------------- ------------- ------------- ------------- --------- ---------------- Change in net assets (1,471,775) 10,400,246 (107,166,955) 41,649,352 (12,035,429) 5,956,254 Net Assets: Beginning of period 10,400,246 ---- 622,113,173 580,463,821 138,347,135 132,390,881 ------------------------------------------------------ ------------- ------------- ------------- --------- ---------------- End of period 8,928,471 $ 10,400,246 $ 514,946,218 $ 622,113,173 $ 126,311,$06 138,347,135 ====================================================== ============= ============= ============= ========= ================ Undistributed (Distributions in excess of) net investment income included in net assets at end of period (9,306) $ (22,448) $ (49,081) $ 1,740,566 $ 35,601 $ 175,682 ====================================================== ============= ============= ============= ========= ================
(1) Reflects operations for the period from March 2, 2001 (date of initial public investment) to November 30, 2001. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds The Wachovia Municipal Funds Statements of Changes in Net Assets
wachovia Wachovia Wachovia Short-Term Fixed Income Fund Georgia Municipal Bond Fund North Carolina Municipal Bond Fund Six Months Six Months Ende Year Ended Ended Year Ended Six Months Ended Year Ended (unaudited) November 30, (unaudited) November 30, (unaudited) November 30, Increase (Decrease) in Net Assets May 31, 2002 2001 May 31, 2002 2001 May 31, 2002 2001 Operations- Net investment income 1,029,540 $ 2,518,295 $ 2,554,741 $5,100,868 $ 8,733,542 $18,409,069 Net realized gain on investments 349,046 401,357 72,945 1,775,438 1,975,807 8,756,346 Net change in unrealized appreciation 1,397,824 253,962 1,616,883 (399,301) 5,491,643 (depreciation) of investments (640,816) ----------------- -------------- ------------------------------ ------------------------------- Change in net assets resulting from 4,317,476 2,881,648 8,493,189 10,310,048 32,657,058 operations 737,770 ----------------- -------------- ------------------------------ ------------------------------- Distributions to Shareholders: Distributions from net investment income Class A Shares (163,498) (427,424) (84,299) (191,715) (129,168) (292,509) Class B Shares (2,591) (2,701) --- --- --- --- Class C Shares (118) (36) --- --- --- --- Class Y Shares (938,044) (2,016,758) (2,464,730) (4,914,062) (8,932,305) (17,945,967) Distributions from net realized gain on investments Class A Shares -- --- (1,003) --- (104,617) --- Class Y Shares -- --- (27,583) --- (6,871,722) --- ------------- -------------- ------------------------------ ----------------------------------- Change in net assets from (2,446,919) (2,577,615) (5,105,777) (16,037,812) (18,238,476) distributions to shareholders (1,104,251) ----------------------- -------------- ------------------------------ ------------------------- Share Transactions: Proceeds from sale of shares 11,106,053 9,568,985 6,579,252 30,827,769 18,266,698 35,199,106 Net asset value of shares issued to 1,649,371 144,460 286,628 5,692,705 395,623 shareholders in payment of dividends declared 703,706 Cost of shares redeemed (15,065,317) (13,741,206) (10,883,270) (15,582,910) (20,912,370) (45,106,698) ----------------------- -------------- -------------------------------------------------------- Change in net assets from share (2,522,850) (4,159,558) 15,531,487 3,047,033 (9,511,969) transactions (3,255,558) ----------------------- -------------- ------------------------------ ------------------------ Change in net assets (3,622,039) (652,293) (3,855,525) 18,918,899 (2,680,731) 4,906,613 Net Assets: Beginning of period 47,051,976 47,704,269 130,527,087 111,608,188 430,574,491 425,667,878 ------------------------------------------------------------ -------------- ------------------------------ ------------------------- End of period 43,429,937 $ 47,051,976 $ 126,671,562 $130,527,087 $ 427,893,760 $430,574,491 ============================================================ ============== ============================== ========================= Undistributed (Distributions in excess of) net investment income included in net assets at end of period 86,271 $ 83,358 $ 14,159 $(75) $ 456,652 $326,574 ============================================================ ============== ============================== =========================
(See Notes which are an integral part of the Financial Statements) The Wachovia Municipal Funds Statements of Changes in Net Assets
Wachovia Wachovia South Carolina Municipal Virginia Municipal Bond Fund Bond Fund Six Months Year Ended Six Months Year Ended Ended November 30, Ended November 30, (unaudited) (unaudited) May 31, 2002 2001 May 31, 2002 2001 ------------------------------------------------------- ----- Increase (Decrease) in Net Assets Operations- Net investment income $ 7,135,115 $ 15,346,693 $ 2,571,550 $ 5,835,641 Net realized gain on investments 2,266,689 2,979,756 469,121 2,826,234 Net change in unrealized appreciation (depreciation) of investments (2,231,400) 7,056,471 104,627 1,570,392 Change in net assets resulting from operations 7,170,404 25,382,920 3,145,298 10,232,267 Distributions to Shareholders: Distributions from net investment income Class A Shares (1,073,678) (2,353,108) (135,391) (282,501) Class Y Shares (6,140,741) (13,056,838) (2,440,804) (5,545,985) Distributions from net realized gain on investments Class A Shares (305,734) ---- (59,886) ---- Class Y Shares (1,582,352) ---- (998,450) ---- Change in net assets from distributions to shareholders (9,102,505) (15,409,946) (3,634,531) (5,828,486) Share Transactions: Proceeds from sale of shares 13,960,415 21,864,980 4,557,532 10,281,041 Net asset value of shares issued to shareholders in payment of dividends declared 1,942,701 1,638,738 252,138 386,026 Cost of shares redeemed (16,423,807) (28,327,374) (10,925,581) (17,706,973) Change in net assets from share transactions (520,691) (4,823,656) (6,115,911) (7,039,906) Change in net assets (2,452,792) 5,149,318 (6,605,144) (2,636,125) Net Assets: Beginning of period 338,769,488 333,620,170 129,162,453 131,798,578 ------------------------------------------------------- ----- End of period $ 336,316,696 $ 338,769,488 $ 122,557,309 $ 129,162,453 =========================================================== Undistributed net investment income included in net $ 182,380 $ 24,178 $ 23,939 $ 7,204 assets at end of period ===========================================================
(See Notes which are an integral part of the Financial Statements) The Wachovia Funds Statements of Changes in Net Assets
Wachovia Wachovia Wachovia Money Market Tax-Free Money Market U.S. Treasury Money Market Fund Fund Fund -------------------------- ---------------------------- ----------------------------- Six Year Ended Six Year Ended Six Months Year Ended Months Months Ended Ended Ended (unaudited) November (unaudited) November 30, (unaudited) November 30, May 31, 30, May 31, 2001 May 31, 2002 2001 2002 2001 2002 ----------------------------------------- -------------------------- ---------------------------- ----------------------------- --- Increase (Decrease) in Net Assets Operations- Net investment income 9,059,665 $ 61,120,563 $ 3,105,665 $ 14,529,831 $ 5,097,583 $ 27,621,981 ----------- ------------- ----------- -------------- -------------- ----------- Distributions to Shareholders: Distributions from net investment income Investment Shares (5,319,516) (34,904,673) (1,053,937) (5,347,529) (1,229,026) (7,206,781) Institutional Shares (3,740,149) (26,215,890) (2,051,728) (9,182,302) (3,868,557) (20,415,200) ----------- ------------- ----------- -------------- -------------- -------------- Change in net assets from distributions (9,059,665) (61,120,563) (3,105,665) to shareholders (14,529,831) (5,097,583) (27,621,981) ----------- ------------- ----------- -------------- -------------- -------------- Share Transactions: Proceeds from sale of shares 885,904,433 1,960,774,879 378,792,720 785,150,470 537,609,229 1,629,169,720 Net asset value of shares issued to shareholders in payment of dividends declared 1,930,423 13,395,782 157,279 948,837 378,768 2,486,619 Cost of shares redeemed (2,001,243,999)(1,926,461,289) (859,124,342) (757,936,761) (1,127,746,337) (1,670,146,117) ----------- ------------- ----------- -------------- -------------- -------------- Change in net assets from share (1,113,409,143) 47,709,372 (480,174,343) (589,758,340) transactions 28,162,546 (38,489,778) ----------- ------------- ----------- -------------- -------------- -------------- Change in net assets (1,113,409,143)47,709,372 (480,174,343) 28,162,546 (589,758,340) (38,489,778) Net Assets: Beginning of period 1,448,812,3981,401,103,026 513,912,699 485,750,153 647,597,685 686,087,463 -------------------------------------- ----------- ------------- ----------- -------------- -------------- -------------- --- End of period 335,403,255 $1,448,812,398 $33,738,356 $ 513,912,699 $ 57,839,345 $ 647,597,685 ================================================== ============= =========== ============== ============== ============== (See Notes which are an integral part of the Financial Statements)
The Wachovia Funds and The Wachovia Municipal Funds Financial Highlights - Class A Shares (For a share outstanding throughout each period)
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Net Asset Net Net Realized Total from Distributions Distributions Value, and from Net from Net Beginning Unrealized Investment Realized Gain of period Gain/(Loss) Income on Investment on investments, Transactions, Futures Futures Contracts, Contracts Investment and Foreign and Ended Income/ Currency Investment Foreign November (Operating Transactions Operations Currency 30,200 Loss) Transactions ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 $14.81 0.14 (3) 2.43 2.57 (0.13) (1.86) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 $15.39 0.13 (3) 2.21 2.34 (0.14) (1.68) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 $15.91 0.06 3.41 3.47 (0.07) (1.89) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $17.42 0.05 0.22 (4) 0.27 (0.04) (0.51) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $17.14 0.04 (3) (3.64) (3.60) (0.05) (0.48) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $13.01 0.04 (1.29) (1.25) (0.01) ---- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 $15.67 0.18 (3) 4.14 4.32 (0.20) (0.79) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 $19.00 0.11 (3) 3.12 3.23 (0.19) (1.75) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 $20.29 0.09 3.16 3.25 (0.12) (2.42) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $21.00 0.05 0.70 0.75 (0.04) ---- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $21.71 0.06 (3) (3.97) (3.91) (0.04) (1.33) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $16.43 0.06 (1.13) (1.07) (0.04) (0.82) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Growth & Income Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 $16.41 0.13 4.44 4.57 (0.13) (0.25) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 $20.60 0.11 3.94 4.05 (0.10) (1.01) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 $23.54 0.05 4.24 4.29 (0.08) (2.89) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $24.86 (0.03) (0.56) (0.59) (0.01) (4.26) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $20.00 0.00 (3)(8(4.26) (4.26) ---- (1.40) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $14.34 0.01 (3) (1.53) (1.52) ---- (0.61) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Equity Index Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 $15.98 0.25 (3) 3.85 4.10 (0.28) (0.91) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 $18.89 0.26 (3) 3.90 4.16 (0.24) (0.40) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 $22.41 0.27 4.13 4.40 (0.26) (0.37) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $26.18 0.22 (3) (1.39) (1.17) (0.24) (0.53) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $24.24 0.19 (3) (3.30) (3.11) (0.21) ---- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $20.92 0.08 (1.31) (1.23) (0.08) (0.14) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 $11.67 0.03 (3) (0.47) (0.44) (0.11) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 $11.12 0.09 (3) (2.68) (2.59) (0.10) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 $8.43 0.04 (3) 3.32 3.36 (0.05) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $11.74 0.01 (1.88) (1.87) (0.11) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $9.76 0.10 (3) (0.64) (0.54) (0.04) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $9.18 0.02 (3) 1.65 1.67 (0.08) ------ ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Personal Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (9) $10.00 0.01 0.67 0.68 (0.01) ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 $10.67 0.00 (8) (0.49) (0.49) (0.01) (0.19) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 $9.98 0.00 (3)(8(2.13) (2.13) 0.00 (9) (0.08) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (6) $7.77 0.01 (3) (0.83) (0.82) (0.01) 0.00 (8) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Rations to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 (1.99) $15.39 20.22% 1.14% 0.95% 0.07% $39,494 124% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 (1.82) $15.91 17.34% 1.12% 0.91% ---- $53,103 150% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (1.96) $17.42 24.31% 1.09% 0.49% ---- $118,967 45% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (0.55) $17.14 1.47% 1.08% 0.27% ---- $114,873 41% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (0.53) $13.01 (21.65)% 1.07% 0.31% 0.00% (5) $82,500 34% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.01) $11.75 (9.59)% 1.07% (70.24% (7) 0.04% (7) $43,288 48% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 (0.99) $19.00 29.38% 1.11% 1.09% 0.07% $35,413 74% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 (1.94) $20.29 18.98% 1.11% 0.95% ---- $82,682 38% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (2.54) $21.00 16.60% 1.11% 0.48% ---- $89,140 34% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (0.04) $21.71 3.58% 1.06% 0.22% ---- $86,191 14% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (1.37) $16.43 (19.07)% 1.06% 0.35% 0.00% (5) $51,100 23% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.86) $14.50 (6.96)% 1.06% (70.44% (7) 0.02% (7) $39,553 11% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Growth & Income Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 (0.38) $20.60 28.50% 1.30% 0.70% 0.30% $338,724 13% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 (1.11) $23.54 20.77% 1.21% 0.59% 0.08% $130,306 24% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (2.97) $24.86 20.40% 1.09% 0.24% ---- $94,674 44% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (4.27) $20.00 (3.57)% 1.07% (0.12)% ---- $82,937 22% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (1.40) $14.34 (22.77)% 1.07% (0.01)% 0.03% $54,790 47% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.61) $12.21 (11.07)% 1.07% (70.19% (7) 0.06% (7) $41,487 58% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Equity Index Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 (1.19) $18.89 27.55% 0.72% 1.46% 0.02% $50,917 4% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 (0.64) $22.41 22.74% 0.70% 1.23% ---- $131,594 29% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (0.63) $26.18 19.97% 0.69% 1.07% ---- $182,697 11% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (0.77) $24.24 (4.70)% 0.66% 0.83% ---- $159,714 12% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (0.21) $20.92 (12.88)% 0.66% 0.83% 0.01% $107,526 5% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.22) $19.47 (5.97)% 0.66% (70.78% (7) 0.06% (7) $106,749 4% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1997 (0.11) $11.12 (3.82)% 1.79% 0.26% ---- $7,996 60% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1998 (0.10) $8.43 (23.46)% 1.68% 0.90% ---- $8,677 51% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (0.05) $11.74 40.07% 1.60% 0.37% ---- $16,007 56% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (0.11) $9.76 (16.18)% 1.52% 0.28% ---- $15,578 45% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (0.04) $9.18 (5.56)% 1.57% 1.02% ---- $13,724 64% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.08) $10.77 18.31% 1.65% (70.34% (7) ---- $10,758 13% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Personal Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 1999 (0.01) $10.67 6.75% 1.15% (70.39% (7) 0.01% (7) $110 11% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2000 (0.20) $9.98 (4.73)% 1.06% (0.09)% ---- $910 22% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (0.08) $7.77 (21.47)% 1.06% 0.05% 0.02% $734 49% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (0.01) $6.94 (10.56)% 1.07% (70.22% (7) 0.03% (7) $658 49% ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) Per share information is based on average shares outstanding. (4) The amount shown in this caption for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss "on investments, futurees contracts, and foreign currency for the period ended due to the timing of sales and repurchases of Fund shares in " relation to fluctuating market values of the investments of the Fund. (5) Less than 0.01% per share. (6) "For six-months ended May 31, 2002 (unaudited)" (7) Computed on an annualized basis. (8) Less than $0.01 per share. (9) "Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999." (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Financial Highlights - Class A Shares - continued (For a share outstanding throughout each period) ----------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Net Asset Net Realized Value, End Beginning Unrealized Distributions of period Gain/(Loss) from Net Realized Gain Investments, on Investment Futures Transactions, Contracts, Futures Net And Foreign Total Contracts Investment Currency from and Income/ Transactions Investment Foreign Year Ended (Operating Operations Currency November 30, Loss) Transactions ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Balanced Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1997 $13.30 0.34 (3) 1.40 1.74 (0.34) (1.44) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1998 $13.26 0.24 (3) 1.50 1.74 (0.38) (0.90) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1999 $13.72 0.29 1.44 1.73 (0.31) (1.69) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2000 $13.45 0.32 0.35 0.67 (0.32) (0.09) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 $13.71 0.29 (3) (1.51) (1.22) (0.28) (0.90) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $11.31 0.12 (3) (0.54) (5) (0.42) (0.12) ----- (5) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Blue Chip Value Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 (7) $10.00 0.02 (3) (1.23) (1.21) (0.01) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $8.78 0.01 (3) 0.25 0.26 (0.02) ---- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia New Horizons Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 (8) $10.00 (0.04) (3) (3.61) (3.65) --- --- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $6.35 (0.02) (3) (1.03) (1.05) ---- ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia International Equity Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 (9) $10.00 (0.05) (3) (1.20) (1.25) --- --- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $8.75 0.00 0.13 0.13 --- --- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Fixed Income Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1997 $9.83 0.54 (3) 0.04 0.58 (0.56) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1998 $9.85 0.53 (3) 0.30 0.83 (0.54) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1999 $10.14 0.51 (0.58) (0.07) (0.51) (0.04) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2000 $9.52 0.55 (3) 0.19 0.74 (0.55) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 $9.71 0.58 0.42 1.00 (0.53) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $10.18 0.54 (5) (0.34) (5) 0.20 (0.28) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Intermediate Fixed Income Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1997 $9.96 0.54 0.06 0.60 (0.53) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1998 $10.03 0.47 0.40 0.87 (0.52) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1999 $10.38 0.50 (0.61) (0.11) (0.50) (0.20) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2000 $9.57 0.52 (3) 0.16 0.68 (0.52) (0.01) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 $9.72 0.51 0.43 0.94 (0.52) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4) $10.14 0.23 (3) (0.09) (5) 0.14 (0.24) (0.07) (5) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Short-Term Fixed Income Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1997 $9.79 0.50 (3) (0.01) 0.49 (0.51) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1998 $9.77 0.52 (3) 0.14 0.66 (0.51) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1999 $9.92 0.48 (0.25) 0.23 (0.52) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2000 $9.63 0.52 (3) 0.11 0.63 (0.53) ----- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 $9.73 0.55 0.34 0.89 (0.50) ---- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4)$10.12 0.28 (5) (0.12(5)0.16 (0.23) ---- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Wachovia Georgia Municipal Bond Fund ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1997 $11.00 0.44 0.13 0.57 (0.44) (0.02) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1998 $11.11 0.42 0.27 0.69 (0.42) (0.00) (11) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 1999 $11.38 0.43 (0.74) (0.31) (0.43) (0.03) ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2000 $10.61 0.48 0.23 0.71 (0.48) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2001 $10.84 0.45 0.33 0.78 (0.45) ------ ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- 2002 (4)$11.17 0.20 (5) 0.03 (5)0.23 (0.20) 0.00 -----------------------------------------------------------------------------------------
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---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Rations to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------ Wachovia Balanced Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1997 (1.78) $13.26 15.17% 1.02% 2.77% 0.16% $50,968 143% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1998 (1.28) $13.72 14.36% 1.01% 2.88% 0.09% $119,093 124% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1999 (2.00) $13.45 13.95% 1.01% 2.26% 0.08% $205,167 66% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2000 (0.41) $13.71 4.94% 1.01% 2.25% 0.05% $202,280 66% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (1.18) $11.31 (9.71%) 1.01% 2.41% 0.05% $152,840 88% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.12) $10.77 (3.72%) 1.01% (6) 2.24% (5)(60.08% (6) $79,051 60% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia Blue Chip Value Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (0.01) $8.78 (12.15%) 1.09% (6) 0.30% (6) 8.30% (6) $389 70% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.02) $9.02 3.01% 1.09% (6) 0.28% (6) 4.31% (6) $386 37% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia New Horizons Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 --- $6.35 1.03% (6) (0.61)% (6) 8.06% (6) $148 85% (36.50)% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 ---- $5.30 (16.54)% 1.09% (6) (0.55)% (6) 12.52% (6) $122 63% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia International Equity Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 --- $8.75 (12.50%) 1.85% (6) (0.76%) (6) 2.35% (6) $5,498 55% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 --- $8.88 1.49% 1.88% (6) 0.15% (6) 0.69% (6) $4,598 73% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia Fixed Income Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1997 (0.56) $9.85 6.14% 0.98% 5.65% 0.11% $10,039 174% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1998 (0.54) $10.14 8.65% 0.97% 5.30% 0.05% $24,624 111% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1999 (0.55) $9.52 (0.77%) 0.97% 5.34% 0.03% $69,475 49% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2000 (0.55) $9.71 8.03% 0.96% 5.78% 0.00% (10)$64,039 73% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (0.53) $10.18 10.57% 0.96% 5.51% 0.01% $53,436 106% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.28) $10.10 2.01% 0.96% (6) 5.20% (5)(60.02% (6) $18,588 130% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia Intermediate Fixed Income Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1997 (0.53) $10.03 6.32% 1.04% 5.50% 0.30% $96,626 81% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1998 (0.52) $10.38 9.39% 1.06% 5.39% 0.14% $4,759 57% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1999 (0.70) $9.57 (1.03%) 0.99% 5.16% 0.04% $3,205 89% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2000 (0.53) $9.72 7.34% 0.99% 5.49% 0.01% $3,413 58% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (0.52) $10.14 9.89% 0.99% 5.20% 0.03% $3,405 96% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.31) $9.97 1.41% 0.99% (6) 4.62% (5)(60.08% (6) $2,656 100% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia Short-Term Fixed Income Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1997 (0.51) $9.77 5.10% 0.87% 5.49% 0.19% $7,233 215% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1998 (0.51) $9.92 6.93% 0.88% 5.22% 0.10% $10,437 135% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1999 (0.52) $9.63 2.44% 0.88% 4.97% 0.14% $10,409 25% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2000 (0.53) $9.73 6.82% 0.88% 5.44% 0.17% $8,959 92% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (0.50) $10.12 9.38% 0.88% 5.20% 0.20% $8,373 58% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.23) $10.05 1.66% 0.88% (6) 4.45% (5)(60.35% (6) $7,069 73% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Wachovia Georgia Municipal Bond Fund ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1997 (0.46) $11.11 5.41% 1.14% 4.03% 1.11% $6,531 25% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1998 (0.42) $11.38 6.35% 1.17% 3.72% 0.34% $6,900 14% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1999 (0.46) $10.61 (2.83%) 1.07% 3.87% 0.30% $5,450 48% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2000 (0.48) $10.84 6.86% 0.85% 4.49% 0.32% $4,731 66% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2001 (0.45) $11.17 7.28% 0.85% 4.03% 0.31% $4,770 66% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 (0.20) $11.20 2.13% 0.85% (6) 3.67% (5)(60.32% (6) $4,670 25% ------------------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) Per share information is based on average shares outstanding. (4) "For six-months ended May 31, 2002 (unaudited)" (5) "Effective December 1, 2001, the following Funds adopted the provisions of the American Institute of Certified Public Accountants (""AICPA"")" Audit and Accounting Guide for Investment Companies and began accreting discount and amortizing premium on long-term "debt securities. The effect of the change for the six months ended May 31, 2002 was as follows:" -------------------------------------------------------------------------- Increase (Decrease) -------------------------------------------------------------------------- -------------------------------------------------------------------------- Fund Net Net Ratio of Net Investment Investment Realized/Unrealized Income to Income Per Gain/Loss per Average Net Share Share Assets -------------------------------------------------------------------------- -------------------------------------------------------------------------- Balanced Fund ----- ----- (0.04)% -------------------------------------------------------------------------- -------------------------------------------------------------------------- Fixed Income Fund ($0.02) $0.02 (0.19)% -------------------------------------------------------------------------- -------------------------------------------------------------------------- Intermediate Fixed Income Fund ----- ----- (0.01)% -------------------------------------------------------------------------- -------------------------------------------------------------------------- Short-Term Fixed Income Fund ----- ----- (0.14)% -------------------------------------------------------------------------- -------------------------------------------------------------------------- Georgia Municipal Bond ----- ----- ----- Fund -------------------------------------------------------------------------- "Per share, ratios and supplemental data for periods prior to December 1, 2001 have not been restated to reflect this " change in presentation. (6) Computed on an annualized basis. (7) "Reflects operations for the period from December 26, 2000 (date of initial public investment) to November 30, 2001." (8) "Reflects operations for the period from December 22, 2000 (date of initial public investment) to November 30, 2001." (9) "Reflects operations for the period from March 2, 2001 (date of initial public investment) to November 30, 2001." (10) Less than 0.01% per share. (11) Less than $0.01 per share. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Financial Highlights - Class A Shares - continued (For a share outstanding throughout each period) -------------------------------------------------------------------------- -------------------------------------------------------------------------- --------------------------------------------------------------------------
-------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Net Asset Net Realized Value, And Beginning Unrealized Distributions Distributions of period Gain/(Loss) from Net from Net Realized on Investments, Investment Gained on Futures Income Investment Contracts, Transactions, Net And Foreign Total Futures Contracts Investment Currency from and Foreign Income Transactions Investment Currency Year Ended Operations Transaction November 30, ----------------------------------------------------------- ----------------------------------------------------------- Wachovia North Carolina Municipal Bond Fund -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $11.03 0.43 0.14 0.57 (0.43) (0.02) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $11.15 0.43 0.32 0.75 (0.43) (0.01) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $11.46 0.42 (0.68) (0.26) (0.42) (0.06) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $10.72 0.46 0.24 0.70 (0.45) (0.01) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $10.96 0.45 0.37 0.82 (0.45) --- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $11.33 0.21 (40.03 (40.24 (0.22) (0.18) -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Wachovia South Carolina Municipal Bond Fund -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $11.05 0.53 0.11 0.64 (0.52) (0.05) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $11.12 0.51 0.24 0.75 (0.51) (0.00) (6) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $11.36 0.50 (0.77) (0.27) (0.50) (0.02) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $10.57 0.49 0.27 0.76 (0.49) (0.00) (6) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $10.84 0.48 0.32 0.80 (0.48) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $11.16 0.23 (4----- (40.23 (0.23) (0.06) -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Wachovia Virginia Municipal Bond Fund -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $10.15 0.46 0.13 0.59 (0.45) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $10.29 0.48 0.14 0.62 (0.42) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $10.49 0.45 (0.65) (0.20) (0.45) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $9.84 0.44 0.25 0.69 (0.45) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $10.08 0.43 0.33 0.76 (0.43) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $10.41 0.20 (40.06 (40.26 (0.20) (0.09) -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Wachovia Money Market Fund (Investment Shares) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $1.00 0.06 ----- 0.06 (0.06) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $1.00 0.01 ----- 0.01 (0.01) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Wachovia Tax-Free Money Market Fund (Investment Shares) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $1.00 0.02 ----- 0.02 (0.02) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $1.00 0.01 ----- 0.01 (0.01) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Wachovia U.S. Treasury Money Market Fund (Investment Shares) -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1997 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1998 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 1999 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2000 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2001 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- 2002 (3) $1.00 0.01 ----- 0.01 (0.01) ----- --------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Rations to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate --------------------------------------------------------------------------------------- Wachovia North Carolina Municipal Bond Fund ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.45) $11.15 5.36% 1.07% 3.91% 0.44% $11,563 17% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.44) $11.46 6.82% 1.10% 3.80% 0.16% $9,533 9% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.48) $10.72 (2.34)1.02% 3.73% 0.20% $8,644 11% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.46) $10.96 6.71% 0.85% 4.26% 0.26% $7,511 37% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.45) $11.33 7.54% 0.85% 3.99% 0.26% $6,613 51% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.40) $11.17 2.24% 0.85% (4)(53.84% (5) 0.28% (5)$6,416 42% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Wachovia South Carolina Municipal Bond Fund ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.57) $11.12 6.01% 0.81% 4.79% 0.48% $64,696 12% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.51) $11.36 6.88% 0.83% 4.52% 0.36% $67,458 6% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.52) $10.57 (2.49)0.83% 4.50% 0.35% $59,655 9% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.49) $10.84 7.45% 0.83% 4.68% 0.29% $52,568 26% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.48) $11.16 7.49% 0.83% 4.30% 0.29% $54,867 35% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.29) $11.10 2.08% 0.83% (5) 4.06% (4)(5)0.30% (5)$49,998 26% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Wachovia Virginia Municipal Bond Fund ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.45) $10.29 5.97% 0.96% 4.50% 0.40% $111,160 15% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.42) $10.49 6.76% 0.95% 4.35% 0.33% $8,835 15% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.45) $9.84 (2.01%0.90% 4.36% 0.29% $7,682 29% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.45) $10.08 7.24% 0.85% 4.59% 0.30% $6,496 25% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.43) $10.41 7.61% 0.85% 4.12% 0.28% $7,164 54% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.29) $10.38 2.54% 0.85% (4)(53.91% (5) 0.31% (5)$6,930 25% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Wachovia Money Market Fund (Investment Shares) ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.05) $1.00 4.95% 0.78% 4.85% 0.28% $320,480 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.05) $1.00 4.92% 0.78% 4.80% 0.26% $482,128 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.04) $1.00 4.44% 0.78% 4.38% 0.24% $613,978 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.06) $1.00 5.71% 0.78% 5.57% 0.22% $786,969 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.04) $1.00 4.04% 0.78% 3.96% 0.22% $867,429 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.01) $1.00 0.65% 0.78% (5) 1.29% (5) 0.24% (5)$296,876 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Wachovia Tax-Free Money Market Fund (Investment Shares) ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.03) $1.00 2.99% 0.64% 2.93% 0.45% $85,852 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.03) $1.00 2.88% 0.64% 2.83% 0.41% $133,211 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.03) $1.00 2.58% 0.64% 2.56% 0.39% $144,436 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.03) $1.00 3.47% 0.64% 3.42% 0.38% $191,890 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.02) $1.00 2.39% 0.64% 2.40% 0.36% $211,248 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.01) $1.00 0.54% 0.64% (5) 0.94% (5) 0.38% (5)$33,738 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Wachovia U.S. Treasury Money Market Fund (Investment Shares) ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1997 (0.05) $1.00 4.89% 0.64% 4.80% 0.41% $117,495 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1998 (0.05) $1.00 4.83% 0.64% 4.74% 0.40% $198,771 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1999 (0.04) $1.00 4.35% 0.64% 4.28% 0.38% $208,021 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2000 (0.05) $1.00 5.51% 0.64% 5.38% 0.37% $190,523 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2001 (0.04) $1.00 3.79% 0.64% 3.75% 0.37% $184,716 ----- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 2002 (0.01) $1.00 0.71% 0.64% (5) 1.41% (5) 0.37% (5)$47,215 ----- ------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) "For six-months ended May 31, 2002 (unaudited)" (4) "Effective December 1, 2001, the following Funds adopted the provisions of the American Institute of Certified Public Accountants (""AICPA"")" Audit and Accounting Guide for Investment Companies and began accreting discount and amortizing premium on long-term "debt securities. The effect of the change for the six months ended May 31, 2002 was as follows:" -------------------------------------------------------------------- Increase (Decrease) -------------------------------------------------------------------- -------------------------------------------------------------------- Fund Net Net Ratio of Net Investment Investment Realized/Unrealized Income to Income Gain/Loss per Average Per Share Share Net Assets -------------------------------------------------------------------- -------------------------------------------------------------------- North Carolina Municipal Income Fund ----- ----- ----- -------------------------------------------------------------------- -------------------------------------------------------------------- South Carolina Municipal Income Fund ----- ----- (0.03)% -------------------------------------------------------------------- -------------------------------------------------------------------- Virginia Municipal Bond ----- ----- ----- Fund -------------------------------------------------------------------- "Per share, ratios and supplemental data for periods prior to December 1, 2001 have not been restated to reflect this " change in presentation. (5) Computed on an annualized basis. (6) Less than $0.01 per share. (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Financial Highlights - Class B Shares (For a share outstanding throughout the period) --------------------------------------------------------------------------------
-------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Net Asset Net Realized Value, And Beginning Unrealized Distributions Distributions of period Gain/(Loss) from Net from Net Realized on Investments, Investment Gained on Futures Income Investment Contracts, Transactions, Net And Foreign Total Futures Contracts Investment Currency from and Foreign Income Transactions Investment Currency Year Ended Operations Transaction November 30, ----------------------------------------------------------- Wachovia Equity Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1997 $14.79 0.04 2.42 2.46 (0.04) (1.86) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1998 $15.35 0.03 2.20 2.23 (0.03) (1.68) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1999 $15.87 (0.04) 3.38 3.34 (0.00) (3)(1.89) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2000 $17.32 (0.09)(4) 0.23 (5) 0.14 ---- (0.51) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 $16.95 (0.06)(4) (3.60) (3.66) (0.00) (0.48) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $12.81 (0.05) (1.22) (1.27) ---- ---- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1997 $15.65 0.08 4.10 4.18 (0.09) (0.79) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1998 $18.95 0.05 3.04 3.09 (0.06) (1.75) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1999 $20.23 (0.05) 3.16 3.11 (0.01) (2.42) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2000 $20.91 (0.12) 0.70 0.58 ---- ---- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 $21.49 (0.07)(4) (3.91) (3.98) 0.00 (1.33) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $16.18 (0.07) (1.04) (1.11) ---- (0.82) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Growth & Income Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (9) $21.33 (0.10)(4) (5.56) (5.66) ---- (1.40) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $14.27 (0.03)(4) (1.53) (1.56) ---- (0.61) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Equity Index Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (9) $25.47 0.02 (4) (4.45) (4.43) (0.14) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $20.90 0.00 (1.32) (1.32) --- (0.14) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (9) $10.51 0.09 (4) (1.39) (1.30) (0.06) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $9.15 (0.02)(4) 1.66 1.64 (0.05) ---- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Personal Equity Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (9) $10.63 (0.05)(4) (2.76) (2.81) (0.01) (0.08) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $7.73 (0.02)(4) (0.83) (0.85) ----- 0.00 (3) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Balanced Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1997 $13.29 0.26 1.38 1.64 (0.26) (1.44) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1998 $13.23 0.28 1.37 1.65 (0.29) (0.90) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1999 $13.69 0.20 1.42 1.62 (0.21) (1.69) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2000 $13.41 0.22 0.35 0.57 (0.22) (0.09) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 $13.67 0.20 (4) (1.49) (1.29) (0.19) (0.90) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $11.29 0.08 (4)(10(0.54) (10(0.46) (0.08) ---- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Blue Chip Value Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (11)$10.00 (0.04)(4) (1.23) (1.27) ----- ------ -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $8.73 (0.02)(4) 0.24 0.22 ----- ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia New Horizons Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (11)$10.00 (0.08)(4) (3.61) (3.69) ----- ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $6.31 (0.04)(4) (1.03) (1.07) ---- ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia International Equity Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (12)$10.00 (0.09)(4) (1.16) (1.25) ----- ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $8.75 (0.01) 0.11 0.10 ----- ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Fixed Income Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1997 $9.83 0.48 0.01 0.49 (0.48) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1998 $9.84 0.47 0.30 0.77 (0.47) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 1999 $10.14 0.43 (0.58) (0.15) (0.43) (0.04) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2000 $9.52 0.48 (4) 0.18 0.66 (0.47) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 $9.71 0.47 0.46 0.93 (0.46) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $10.18 0.21 (10) (0.05) (100.16 (0.24) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Intermediate Fixed Income Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (9) $9.76 0.48 0.42 0.90 (0.54) ---- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (14)$10.12 0.20 (4)((0.12) (100.08 (0.22) (0.07) -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- Wachovia Short-Term Fixed Income Fund -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2001 (12)$9.77 0.46 0.36 0.82 (0.46) ----- -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2002 (7) $10.13 0.21 (10)(0.08) (100.13 (0.21) ----- --------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Rations to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate --------------------------------------------------------------------------------------- Wachovia Equity Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (1.90) $15.35 19.27% 1.90% 0.18% 0.06% $3,448124% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (1.71) $15.87 16.52% 1.87% 0.17% ---- $5,725150% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (1.89) $17.32 23.37% 1.84% (0.26)% ---- $8,99245% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.51) $16.95 0.69% 1.83% (0.49)% ---- $11,1541% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.48) $12.81 (22.23)% 1.82% (0.44)% 0.00% (6)$8,38234% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 ----- $11.54 (9.91)% 1.82% (8)(0.51)% (8)0.04% (8)$6,88648% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.88) $18.95 28.33% 1.85% 0.31% 0.07% $6,56474% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (1.81) $20.23 18.15% 1.86% 0.20% ---- $19,5338% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (2.43) $20.91 15.85% 1.86% (0.27%) ---- $24,6534% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 ---- $21.49 2.77% 1.81% (0.53%) ---- $24,3114% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (1.33) $16.18 (19.67)% 1.81% (0.39)% 0.00% (6)$17,0923% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.82) $14.25 (7.28)% 1.81% (8)(0.31)% (8)0.02% (8)$14,2211% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Growth & Income Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (1.40) $14.27 (27.95)% 1.82% (8)(0.70)% (8)0.03% (8)$129 47% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.61) $12.10 (11.41)% 1.82% (8)(0.55)% (8)0.06% (8)$114 58% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Equity Index Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.14) $20.90 (17.45%) 1.41% (8)0.11% (8)0.02% (8)$1,2965% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.14) $19.44 (6.35%) 1.41% (8)0.02% (8)0.06% (8)$1,3844% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.06) $9.15 (12.37)% 2.31% (8)0.98% (8)---- $1 64% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.05) $10.74 18.06% 2.40% (8)(0.31%) (8)---- $3 13% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Personal Equity Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.09) $7.73 (26.61)% 1.81% (8)(0.65)% (8)0.02% (8)$35 49% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 ----- $6.88 (10.95)% 1.82% (8)(0.53)% (8)0.03% (8)$34 49% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Balanced Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (1.70) $13.23 14.19% 1.78% 2.01% 0.16% $5,916143% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (1.19) $13.69 13.56% 1.76% 2.13% 0.09% $13,96124% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (1.90) $13.41 13.08% 1.76% 1.50% 0.08% $20,9266% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.31) $13.67 4.19% 1.76% 1.50% 0.05% $23,5266% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (1.09) $11.29 (10.28%) 1.76% 1.67% 0.05% $21,6388% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.08) $10.75 (4.08%) 1.76% (8)1.49% (8)0.08% (8)$18,3560% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Blue Chip Value Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 ------ $8.73 (12.70%) 1.84% (8)(0.44) (8)7.94% (8)$148 70% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 ----- $8.95 2.52% 1.84% (8)(0.48) (8)4.31% (8)$122 37% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia New Horizons Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 ----- $6.31 (36.90)% 1.78% (8)(1.38)% (8)9.03% (8)$92 85% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 ----- $5.24 (16.96)% 1.84% (8)(1.30)% (8)12.52%(8)$73 63% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia International Equity Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 ----- $8.75 (12.50)% 2.60% (8)(1.43%) (8)2.35% (8)$1 55% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 ----- $8.85 1.14% 2.63% (8)(0.44%) (8)0.69% (8)$2 73% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Fixed Income Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.48) $9.84 5.21% 1.75% 4.89% 0.11% $140 174% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.47) $10.14 7.97% 1.72% 4.55% 0.05% $533 111% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.47) $9.52 (1.51%) 1.72% 4.57% 0.03% $819 49% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.47) $9.71 7.23% 1.71% 5.03% 0.00% (6)$771 73% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.46) $10.18 9.75% 1.71% 4.76% 0.01% $1,355106% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.24) $10.10 1.63% 1.71% (8)4.36% (8)0.02% (8)$1,060130% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Intermediate Fixed Income Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.54) $10.12 9.49% 0.60% (8)5.03% (8)---- (8)$0 96% (13) -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.29) $9.91 0.78% 0.54% (8)4.74% (8)0.07% (8)$0 100% (13) -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Short-Term Fixed Income Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.46) $10.13 8.52% 1.63% 4.40% 0.20% $174 58% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.21) $10.05 1.27% 1.63% (8)3.71% (8)0.35% (8)$111 73% --------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) Less than $0.01 per share. (4) Per share information based on average shares outstanding (5) The amount shown in this caption for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) "on investments, futures contracts, and foreign currency for the period ended due to the timing of sales and repurchases of Fund shares in " relation to fluctuating market values of the investments of the Fund. (6) Less than 0.01%. (7) "For six-months ended May 31, 2002 (unaudited)" (8) Computed on an annualized basis. (9) "Reflects operations for the period December 12, 2000 (date of initial public investment) to November 30, 2001" (10) "Effective December 1, 2001, the following Funds adopted the provisions of the American Institute of Certified Public Accountants (""AICPA"")" Audit and Accounting Guide for Investment Companies and began accreting discount and amortizing premium on long-term "debt securities. The effect of the change for the six months ended May 31, 2002 was as follows:" --------------------------------------------------------------- Increase (Decrease) --------------------------------------------------------------- --------------------------------------------------------------- Net Net Ratio of Net Investme Investment Income Realized/Unr Income to Per Gain/Loss Average Net Share nt per Share ealiAssets --------------------------------------------------------------- --------------------------------------------------------------- Fund --------------------------------------------------------------- --------------------------------------------------------------- Balanced Fund ----- ----- (0.04)% --------------------------------------------------------------- --------------------------------------------------------------- Fixed Income Fund ($0.01) $0.01 (0.19)% --------------------------------------------------------------- --------------------------------------------------------------- Intermediate Fixed Income Fund ----- ----- (0.02)% --------------------------------------------------------------- --------------------------------------------------------------- Short-Term Fixed ----- ----- (0.14)% Income Fund --------------------------------------------------------------- "Per share, ratios and supplemental data for periods prior to December 1, 2001 have not been restated to reflect this " change in presentation. (11) "Reflects operations for the period December 26, 2000 (date of initial public investment) to November 30, 2001" (12) "Reflects operations for the period from March 2, 2001 (date of initial public investment) to November 30, 2001." (13) "Less than $1,000" (14) "Reflects operations for the period ended April 30, 2002 (last day of operations for the class)(unaudited)." (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Funds Financial Highlights - Class C Shares (For a share outstanding throughout each period)
-------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Net Asset Net Realized Value, And Beginning Unrealized Distributions Distributions of period Gain/(Loss) from Net from Net Realized on Investments, Investment Gained on Futures Income Investment Contracts, Transactions, Net And Foreign Total Futures Contracts Investment Currency from and Foreign Income Transactions Investment Currency Year Ended Operations Transaction November 30, ----------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Equity Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (3) $18.51 (0.06) (4) (5.00) (5.06) (0.03) (0.48) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (7) $12.94 (0.05) (1.23) (1.28) ---- ---- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 2001 (3) $22.66 (0.08) (4) (4.78) (4.86) (0.02) (1.33) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 2002 (9) $16.45 0.03 (0.94) (0.91) (0.03) (0.82) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- Wachovia Growth & Income Fund -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 2001 (3) $21.33 (0.11) (4) (5.54) (5.65) ---- (1.40) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 2001 (3) $21.33 0.03 (5.68) (5.65) ---- (1.40) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 2002 (7) $14.28 (0.04) (4) (1.52) (1.56) ---- (0.61) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Wachovia Equity Index Fund --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2001 (3) $25.47 0.02 (4) (4.46) (4.44) (0.12) ---- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2002 (7) $20.91 0.00 (1.32) (1.32) --- (0.14) --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2001 (3) $10.51 (0.02) (4) (1.27) (1.29) (0.06) ---- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2002 (7) $9.16 (0.01) (4) 1.65 1.64 (0.06) ---- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Wachovia Personal Equity Fund --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2001 (3) $10.63 0.01 (4) (2.76) (2.75) (0.02) (0.08) --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 2002 (9) $7.78 0.00 (4) (0.78) (0.78) (0.02) (0.00) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Balanced Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (3) $14.39 0.19 (4) (2.14) (1.95) (0.23) (0.90) ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (7) $11.31 0.08 (4)(10) (0.53) (10) (0.45) (0.08) ---- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia Blue Chip Value Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (11) $10.00 (0.04) (4) (1.21) (1.25) ----- ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (7) $8.75 (0.02) (4) 0.24 0.22 ----- ----- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Wachovia New Horizons Fund ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2001 (10) $10.00 (0.09) (4) (3.60) (3.69) ----- --- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- 2002 (7) $6.31 (0.04) (4) (1.02) (1.06) ---- ---- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- Wachovia International Equity Fund ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 2001 (12) $10.00 (0.08) (4) (1.21) (1.29) --- --- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 2002 (7) $8.71 (0.02) 0.11 0.09 --- --- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- Wachovia Fixed Income Fund ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 2001 (3) $9.78 0.52 0.36 0.88 (0.48) ---- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 2002 (7) $10.18 0.22 (10) (0.07) (10) 0.15 (0.24) ---- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ Wachovia Intermediate Fixed Income Fund ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 2001 (3) $9.76 0.47 0.37 0.84 (0.47) ---- ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 2002 (7) $10.13 0.19 (4)(10) (0.09) (10) 0.10 (0.20) (0.07) ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ Wachovia Short-Term Fixed Income Fund ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 2001 (3) $9.77 0.53 0.34 0.87 (0.53) ----- ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 2002 (7) $10.11 0.20 (10) 0.06 (10) 0.14 (0.20) ----- ------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate --------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Equity Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.51) $12.94 (27.94)% 1.83% (5) (0.45%(5) 0.00% (5)(6)$468 34% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 ---- $11.66 (9.89%) 1.82% (5) (0.51%(5) 0.04% (5) $344 48% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Quantitative Equity Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (1.35) $16.45 (22.51)% 1.81% (5) (0.44)(5) 0.00% (5)(6)$0 (8) 23% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.85) 14.69 (5.91) 1.81% (5) 0.79% (5) 0.02% (5) $0 (8) 11% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Growth & Income Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (1.40) $14.28 (27.90)% 1.82% (5) 0.72% (5) 0.00% (5)(6)$3 47% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (1.40) $14.28 (27.90)% 1.79% (5) 0.69% (5) 0.00% (5)(6)$3 47% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.61) $12.11 (11.40)% 1.82% (5) 0.60% (5) (0.06)%(5) $2 58% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Equity Index Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.12) $20.91 (17.47%) 1.41% (5) 0.11% (5) 0.02% (5) $2,624 5% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.14) $19.45 (6.35%) 1.41% (5) 0.02% (5) 0.06% (5) $2,731 4% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Emerging Markets Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.06) $9.16 (12.27)% 2.31% (5) (0.18)(5) ---- (5) $14 64% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.06) $10.74 18.06% 2.40% (5) (0.15)(5) ---- (5) $35 13% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Personal Equity Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.10) $7.78 (26.02)% 0.83% (5) 0.08% (5) 0.00% (5)(6)----- (8) 49% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.00) $6.98 (10.00)% 0.46% (5) 0.55% (5) 0.00% (5)(6)$0 49% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Balanced Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (1.13) $11.31 (14.33%) 1.76% (5) 1.71% (5) 0.05% (5) $421 88% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.08) $10.78 (4.03%) 1.76% (5) 1.45% (5)(10).08% (5) $173 60% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Blue Chip Value Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 ----- $8.75 (12.50%) 1.84% (5) (0.45%(5) 5.90% (5) $15 70% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 ----- $8.97 2.51% 1.84% (5) (0.48%(5) 4.31% (5) $16 37% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia New Horizons Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 --- $6.31 (36.90)% 1.78% (5) (1.38)(5) 7.88% (5) $103 85% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 ---- $5..25 (16.80)% 1.84% (5) (1.30)(5) 12.52% (5) $86 63% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia International Equity Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 --- $8.71 (12.90)% 2.60% (5) (1.16)(5) 2.35% (5) $92 55% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 --- $8.80 1.03% 2.63% (5) (0.56)(5) 0.69% (5) $92 73% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Fixed Income Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.48) $10.18 9.24% 1.71% (5) 4.75% (5) 0.01% (5) $78 106% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.24) $10.09 1.55% 1.71% (5) 4.35% (5)(10)0.02% (5) $79 130% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Intermediate Fixed Income Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.47) $10.13 8.82% 1.73% (5) 4.45% (5) 0.03% (5) $21 96% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.27) $9.96 1.05% 1.74% (5) 3.87% (5)(10)0.08% (5) $21 100% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Wachovia Short-Term Fixed Income Fund ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2001 (0.53) $10.11 9.10% 1.63% (5) 4.75% (5) 0.20% (5) $6 58% ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- 2002 (0.20) $10.05 1.36% 1.63% (5) 3.72% (5)(10) 0.35% (5) $6 73% -----------------------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) "Reflects operations for the period from December 12, 2000 (date of initial public investment) to November 30, 2001." (4) Per share information is based on average shares outstanding. (5) Computed on an annualized basis. (6) Less than 0.01%. (7) "For six-months ended May 31, 2002 (unaudited)" (8) "Less than $1,000." (9) "Reflects operations for the period ended April 30, 2002 ( last day of operations for the class) ( unaudited)" (10) "Effective December 1, 2001, the following Funds adopted the provisions of the American Institute of Certified Public Accountants (""AICPA"")" Audit and Accounting Guide for Investment Companies and began accreting discount and amortizing premium on long-term "debt securities. The effect of the change for the six months ended May 31, 2002 was as follows:" -------------------------------------------------------------------- Increase (Decrease) -------------------------------------------------------------------- -------------------------------------------------------------------- Fund Net Net Ratio of Net Investment Investment Realized/Unrealized Income to Income Gain/Loss Average Net Per Share per Share Assets -------------------------------------------------------------------- -------------------------------------------------------------------- Balanced Fund ----- ----- (0.04)% -------------------------------------------------------------------- -------------------------------------------------------------------- Fixed Income Fund ($0.02) $0.02 (0.19)% -------------------------------------------------------------------- -------------------------------------------------------------------- Intermediate Fixed Income Fund ----- ----- (0.01)% -------------------------------------------------------------------- -------------------------------------------------------------------- Short-Term Fixed ----- ----- (0.14)% Income Fund -------------------------------------------------------------------- "Per share, ratios and supplemental data for periods prior to December 1, 2001 have not been restated to reflect this " change in presentation. (11) "Reflects operations for the period from December 26, 2000 (date of initial public investment) to November 30, 2001." (12) "Reflects operations for the period from March 2, 2001 (date of initial public investment) to November 30, 2001." (See Notes which are an integral part of the Financial Statements) The Wachovia Funds and The Wachovia Municipal Financial Highlights - Class Y Shares - continued (For a share outstanding throughout each period) --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------- Net Asset Net Realized Value, And Beginning Unrealized Distributions Distributions of period Gain/(Loss) from Net from Net Realized on Investments, Investment Gained on Futures Income Investment Contracts, Transactions, Net And Foreign Total Futures Contracts Investment Currency from and Foreign Income Transactions Investment Currency Year Ended Operations Transaction November 30, -------------------------------------------------------------------------------- Wachovia North Carolina Municipal Bond Fund -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1997 $11.03 0.46 0.13 0.59 (0.45) (0.02) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $11.15 0.46 0.32 0.78 (0.46) (0.01) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $11.46 0.45 (0.68) (0.23) (0.45) (0.06) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $10.72 0.48 0.25 0.73 (0.48) (0.01) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $10.96 0.48 0.37 0.85 (0.48) 0.00 (3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $11.33 0.23 (5)0.03 (5)0.26 (0.24) (0.18) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Wachovia South Carolina Municipal Bond Fund -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1997 $11.05 0.55 0.12 0.67 (0.55) (0.05) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $11.12 0.54 0.24 0.78 (0.54) (0.00) (3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $11.36 0.52 (0.77) (0.25) (0.52) (0.02) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $10.57 0.52 0.27 0.79 (0.52) (0.00) (3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $10.84 0.51 0.32 0.83 (0.51) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $11.16 0.24 (5)----- (5)0.24 (0.24) (0.06) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Wachovia Virginia Municipal Bond Fund -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $10.34 0.32 0.15 0.47 (0.32) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $10.49 0.47 (0.65) (0.18) (0.47) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $9.84 0.48 0.24 0.72 (0.48) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $10.08 0.45 0.33 0.78 (0.45) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $10.41 0.21 (5)0.06 (5)0.27 (0.21) (0.09) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Wachovia Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1997 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $1.00 0.06 ----- 0.06 (0.06) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $1.00 0.01 ----- 0.01 (0.01) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Wachovia Tax-Free Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1997 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $1.00 0.03 ----- 0.03 (0.03) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $1.00 0.01 ----- 0.01 (0.01) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Wachovia U.S. Treasury Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1997 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1998 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1999 $1.00 0.05 ----- 0.05 (0.05) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2000 $1.00 0.06 ----- 0.06 (0.06) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2001 $1.00 0.04 ----- 0.04 (0.04) ----- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2002 (4) $1.00 0.01 ----- 0.01 (0.01) ----- -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Year Ended Total Net Total Expenses Net Expense Net Portfolio Distribution Asset Investment Waiver/ Assets, Value, Income Reimbursement end of end of (2) period (000 November 30, period Return(1) omitted) Turnover Rate --------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia North Carolina Municipal Bond Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.47) $11.15 5.57% 0.85% 4.16% 0.42% $44,1017% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.47) $11.46 7.09% 0.85% 4.05% 0.16% $56,769% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.51) $10.72 (2.09)% 0.66% 4.27% 0.30% $434,511% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.49) $10.96 6.98% 0.60% 4.51% 0.26% $418,137% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.48) $11.33 7.81% 0.60% 4.24% 0.26% $423,951% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.42) $11.17 2.37% 0.60% (64.09% (5) 0.28% (6)$421,442% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia South Carolina Municipal Bond Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.60) $11.12 6.23% 0.58% 5.01% 0.48% $43,8812% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.54) $11.36 7.15% 0.58% 4.77% 0.36% $54,776% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.54) $10.57 (2.24)% 0.58% 4.85% 0.35% $288,89% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.52) $10.84 7.71% 0.58% 4.93% 0.29% $281,026% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.51) $11.16 7.76% 0.58% 4.55% 0.29% $283,935% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.30) $11.10 2.22% 0.58% (6) 4.31% (5) 0.30% (6)$286,326% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Virginia Municipal Bond Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.32) $10.49 4.61% 0.68% (64.62% (6) 0.33% (6)$99,1515% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.47) $9.84 (1.76%) 0.65% 4.64% 0.29% $129,829% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.48) $10.08 7.51% 0.60% 4.84% 0.30% $125,325% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.45) $10.41 7.88% 0.60% 4.37% 0.28% $121,954% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.30) $10.38 2.66% 0.60% (6) 4.16% (5) 0.31% (6)$115,625% -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.05) $1.00 5.37% 0.38% 5.24% 0.28% $157,438----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.05) $1.00 5.33% 0.38% 5.20% 0.26% $181,282----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.05) $1.00 4.86% 0.38% 4.79% 0.24% $365,750----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.06) $1.00 6.13% 0.38% 5.99% 0.22% $614,134----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.04) $1.00 4.46% 0.38% 4.46% 0.22% $581,383----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.01) $1.00 0.85% 0.38% (6) 1.70% (6) 0.24% (6)$38,528----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia Tax-Free Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.03) $1.00 3.41% 0.24% 3.34% 0.45% $182,473----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.03) $1.00 3.29% 0.24% 3.24% 0.42% $275,323----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.03) $1.00 2.99% 0.24% 2.95% 0.39% $225,466----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.04) $1.00 3.89% 0.24% 3.79% 0.38% $293,860----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.03) $1.00 2.80% 0.24% 2.81% 0.36% $302,665----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.01) $1.00 0.75% 0.24% (61.35% (6) 0.38% (6)$0 (7)----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Wachovia U.S. Treasury Money Market Fund (Institutional Shares) -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1997 (0.05) $1.00 5.31% 0.24% 5.20% 0.41% $510,323----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1998 (0.05) $1.00 5.25% 0.24% 5.15% 0.40% $466,538----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 1999 (0.05) $1.00 4.77% 0.24% 4.65% 0.38% $448,758----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2000 (0.06) $1.00 5.94% 0.24% 5.72% 0.37% $495,565----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2001 (0.04) $1.00 4.20% 0.24% 4.11% 0.37% $462,881----- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- 2002 (0.01) $1.00 0.91% 0.24% (6) 1.82% (6) 0.37% (6)$10,624----- -------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------
(1) "Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable." (2) This contractual expense decrease is reflected in both the expense and net investment income ratios. (3) Less than $0.01 per share. (4) "For six-months ended May 31, 2002 (unaudited)" (5) "Effective December 1, 2001, the following Funds adopted the provisions of the American Institute of Certified Public Accountants (""AICPA"")" Audit and Accounting Guide for Investment Companies and began accreting discount and amortizing premium on long-term "debt securities. The effect of the change for the six months ended May 31, 2002 was as follows:" -------------------------------------------------------------------------- Increase (Decrease) -------------------------------------------------------------------------- -------------------------------------------------------------------------- Fund Net Net Ratio of Net Investment Investment Realized/Unrealized Income to Income Per Gain/Loss per Average Net Share Share Assets -------------------------------------------------------------------------- -------------------------------------------------------------------------- North Carolina Municipal Income Fund ----- ----- ----- -------------------------------------------------------------------------- -------------------------------------------------------------------------- South Carolina Municipal Income Fund ----- ----- (0.03)% -------------------------------------------------------------------------- -------------------------------------------------------------------------- Virginia Municipal Bond ----- ----- ----- Fund -------------------------------------------------------------------------- "Per share, ratios and supplemental data for periods prior to December 1, 2001 have not been restated to reflect this " change in presentation. (6) Computed on an annualized basis. (7) "Less than $1,000." (See Notes which are an integral part of the Financial Statements) The Wachovia Funds The Wachovia Municipal Funds Combined Notes to Financial Statements May 31, 2002 (unaudited) -------------------------------------------------------------------------------- 1. Organization The Wachovia Funds and The Wachovia Municipal Funds (individually referred to as the "Trust" or collectively as the "Trusts") are registered under the Investment Company Act of 1940, as amended (the "Act"), as open-end management investment companies. The Trusts consist of twenty-two portfolios. The financial statements of the following 20 portfolios (individually referred to as the "Fund" or collectively as the "Funds") are presented herein: THE WACHOVIA FUNDS Portfolio Investment Objective ---------- -------------------- Wachovia Equity Fund ("Equity Seeks to produce growth of principal and Fund") income. Wachovia Quantitative Equity Fund Seeks to provide growth of principal and ("Quantitative Equity Fund") income. Wachovia Growth & Income Fund Seeks to provide total return through growth ("Growth & Income Fund") of capital and current income. Wachovia Equity Index Fund Seeks to provide a total return that ("Equity Index Fund") approximates that of the stock market as measured by the S&P 500 Index. Wachovia Emerging Markets Fund Seeks to produce long-term capital ("Emerging Markets Fund") appreciation. Wachovia Personal Equity Fund Seeks growth of principal and income, while ("Personal Equity Fund") minimizing the impact of taxes on shareholder returns. Wachovia Balanced Fund Seeks to provide long-term growth of ("Balanced Fund") principal and current income. Wachovia Blue Chip Value Fund Seeks to produce growth of principal and ("Blue Chip Value Fund") income. Wachovia New Horizons Fund ("New Seeks to produce capital appreciation. Horizons Fund") Wachovia International Equity Seeks to produce capital appreciation. ("International Equity Fund") Wachovia Fixed Income Fund Seeks a high level of total return. ("Fixed Income Fund") Wachovia Intermediate Fixed Income Seek current income consistent with Fund ("Intermediate Fixed Income preservation of capital. Fund") Wachovia Short-Term Fixed Income Seeks produce a high level of current income. Fund ("Short-Term Fixed Income Fund") Wachovia Money Market Fund To provide current income consistent with ("Money Market Fund") stability of principal and liquidity. Wachovia Tax-Free Money Market To provide current income exempt from Fund federal regular income tax consistent with ("Tax-Free Fund") stability of principal and liquidity. Wachovia U.S. Treasury Money To provide current income consistent with Market Fund stability of principal and liquidity. ("U.S. Treasury Money Market Fund") THE WACHOVIA MUNICIPAL FUNDS Portfolio Investment Objective ---------- -------------------- Wachovia Georgia Municipal Bond Seeks to provide current income which is Fund ("Georgia Municipal Bond exempt from federal regular income tax and Fund")** the income taxes imposed by the State of Georgia. Wachovia North Carolina Municipal Seek to provide current income which is Bond Fund ("North Carolina exempt from federal regular income tax and Municipal Bond Fund")** the income taxes imposed by the State of North Carolina. Wachovia South Carolina Municipal Seek to provide current income which is Bond Fund ("South Carolina exempt from federal regular income tax and Municipal Bond Fund")** South Carolina state income taxes. Wachovia Virginia Municipal Bond Seeks to provide a high level of current Fund ("Virginia Municipal Bond income that is exempt Fund")** from federal regular income tax and the income tax imposed by the Commonwealth of Virginia as is consistent with the preservation of capital. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. ** Non-diversified portfolio. 2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP"). Investment Valuations - Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue, and any other factors or market data the pricing service deems relevant. U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, unlisted securities and private placement securities are generally valued at the latest bid prices as furnished by an independent pricing service. Listed equity securities and investments in closed-end investment companies are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of sixty days or less at the time of purchase may be valued at amortized cost, which approximates fair market value, in accordance with Rule 2a-7 under the Act. The Money Market Fund, Tax-Free Money Market Fund and U.S. Treasury Money Market Fund use the amortized cost method to value their portfolio securities in accordance with Rule 2a-7 under the Act. Investments in other open-end regulated investment companies are valued at net asset value. With respect to valuation of foreign securities, trading in foreign cities may be completed at times which vary from the closing of the New York Stock Exchange. Therefore, foreign securities are valued at the latest closing price on the exchange on which they are traded prior to the closing of the New York Stock Exchange. Foreign securities quoted in foreign currencies are translated into U.S. dollars at the foreign exchange rate in effect at noon, Eastern Time, on the day the value of the foreign security is determined. Securities for which no quotations are readily available are valued as determined in good faith using methods approved by the Board of Trustees (the "Trustees"). Repurchase Agreements - It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. The Funds, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements. Investment Income, Expenses and Distributions - Interest income and expenses are accrued daily. All discounts/premiums are accreted/amortized for financial reporting purposes, as required. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Certain dividends from foreign securities may be recorded after the ex-dividend date based upon when the Fund is reasonably able to obtain information. Non-cash dividends included in dividend income if any, are recorded at fair value. The Funds offer multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the respective Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. As required effective December 1, 2001, each Trust have adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies (the "Guide") and began accreting discount and amortizing premiums and discounts on long-term debt securities. Prior to December 1, 2001, the Funds did not amortize long-term premiums and discounts on debt securities. The cumulative effect of this accounting change had no impact on total net assets on the Funds, but resulted in adjustments to the financial statements as follows: ----------------------------------------------------------------------------- Undistributed (Distributions in Excess of) Net Net Realized Cost of Investment Income Loss Investments ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Balanced Fund ($566,249) $336,134 ($230,115) ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Fixed Income Fund (358,029) (353,884) (711,913) ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Intermediate Fixed Income 15,553 --- 15,553 Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Short-Term Fixed Income Fund 77,624 (73,533) 4,091 ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Georgia Municipal Bond Fund 8,522 --- 8,522 ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- North Carolina Municipal 458,009 --- 458,009 Bond Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- South Carolina Municipal 237,506 --- 237,506 Bond Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Virginia Municipal Bond Fund 21,380 --- 21,380 ----------------------------------------------------------------------------- The effect of this change for the six-month period ended May 31, 2002 was as follows: ----------------------------------------------------------------------------- Undistributed Net Realized Net Unrealized (Distributions in Excess of) Net Investment Income Gain/Loss Appreciation/ Depreciation ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Balanced Fund $(82,123) $260,489 $(178,366) ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Fixed Income Fund (511,064) 954,809 (443,745) ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Intermediate Fixed Income (7,352) 11,229 (3,877) Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Short-Term Fixed Income (31,152) 24,291 6,861 Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Georgia Municipal Bond 5,637 (5,469) (168) Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- North Carolina Municipal (1,354) (157,949) 159,303 Bond Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- South Carolina Municipal (55,119) 24,842 30,277 Bond Fund ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Virginia Municipal Bond 2,560 (1,874) (686) Fund ----------------------------------------------------------------------------- The Statement of Changes in Net Assets and Financial Highlights for prior period have not been restated to reflect this change in presentation. For the Funds of the Trusts not indicated above, the adoption of the Guide did not have any effect on their financial statements. Federal Taxes - It is the Funds' policy to comply with the provisions of the Internal Revenue Code, as amended, (the "Code") applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal tax is necessary. Withholding taxes on foreign interest, dividends and capital gains in the Funds have been provided for in accordance with the applicable country's tax rules and rates. At November 30, 2001, the Funds listed below, for federal tax purposes, had capital loss carryforwards, as noted, which will reduce each Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax.
Total Amount Amount Amount Amount Amount Amount Amount Tax Loss Expiring Expiring Expiring Expiring Expiring Expiring Expiring Fund Carryforward In 2002 In 2003 In 2004 In 2005 In 2006 In 2008 In 2009 ---- ------------ ------- ------- ------- ------- ------- ------- ------- Equity Fund $46,147,083 $ $ $ $ $ $ $46,147,083 --- --- --- --- --- --- Emerging Markets 37,989,555 17,036,882 20,952,673 Fund --- --- --- --- --- Balanced Fund 25,048,766 25,048,766 --- --- --- --- --- --- Blue Chip Value 123,968 123,968 Fund --- --- --- --- --- --- New Horizons Fund 303,383 303,383 --- --- --- --- --- --- International 549,796 549,796 Equity Fund --- --- --- --- --- --- Fixed Income Fund 3,559,819 3,559,819 --- --- --- --- --- --- Short-Term Fixed 2,637,618 1,833,583 250,580 467,184 86,271 Income Fund --- --- ---
When-Issued and Delayed Delivery Transactions - The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract. Dollar Roll Transactions - Balanced Fund, Fixed Income Fund and Intermediate Fixed Income Fund enter into dollar roll transactions, with respect to mortgage securities issued by GNMA, FNMA and FHLMC, in which the Fund sells mortgage securities to financial institutions and simultaneously agrees to accept substantially similar (same type, coupon and maturity) securities at a later date at an agreed upon price. Dollar roll transactions involve "to be announced" securities and are treated as short-term financing arrangements which will not exceed 12 months. The Fund will use the proceeds generated from the transactions to invest in short-term investments, which may enhance the Fund's current yield and total return. Futures Contracts - The Funds listed below purchase stock index or bond futures contracts to manage cashflows, enhance yield, and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Funds listed below are required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Funds receive from or pay to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Funds recognize a realized gain or loss. For the six months ended May 31, 2002, the following Funds had realized gains (losses) on futures contracts as follows: Realized Gain Fund (Loss) on Futures Contracts Equity Fund $ 194,946 Quantitative Equity Fund (189,889) Growth & Income Fund 606,907 Equity Index Fund (332,959) Personal Equity Find 51,050 Balanced Fund 98,104 Fixed Income Fund 438,708 Intermediate Fixed Income Fund (22,675) Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities. At May 31, 2002, the Funds had outstanding futures contracts as set forth below:
EQUITY FUND Contracts to Unrealized Expiration Deliver Depreciation Date Position June 2002 20 S&P Index Futures Long $(405,140) QUANTITATIVE EQUITY FUND Contracts to Unrealized Expiration Deliver Depreciation Date Position June 2002 73 S&P Index Futures Long $(1,553,761) GROWTH & INCOME FUND Contracts to Unrealized Expiration Deliver Depreciation Date Position June 2002 27 S&P 500 Index Futures Long $(49,489) EQUITY INDEX FUND Contracts to Unrealized Expiration Deliver Depreciation Date Position June 2002 16 S&P Index Futures Long $(308,562) PERSONAL EQUITY FUND Contracts to Unrealized Expiration Deliver Depreciation Date Position June 2002 86 S&P 500 Index Futures Long $(481,677) Foreign Exchange Contracts- Emerging Markets Fund and International Equity Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. Emerging Markets Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the securities against currency fluctuations. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency translations are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. At May 31, 2002, International Equity Fund had no outstanding foreign currency commitments. At May 31, 2002, the Emerging Markets Fund had outstanding foreign currency exchange contracts as set forth below: Net Unrealized Contracts to In Contracts Appreciation Settlement Date Deliver/Receive Exchange for at Value (Depreciation) Contracts Purchased: June 3, 2002 764,916 Hong Kong Dollar $98,072 $98,068 $ (4) June 4, 2002 190,608 Hong Kong Dollar 24,438 24,437 (1) June 5, 2002 17,344,635 Hungarian 67,188 66,836 (352) Forint June 3, 2002 4,854,520 Mexican Peso 501,500 503,685 2,185 June 4, 2002 46,440,214 Thailand Baht 1,095,805 1,096,840 1,035 ---------------- Net Unrealized Appreciation on Foreign $2,863 Exchange Contracts ================ ================
Foreign Currency Translation - The accounting records of Emerging Markets Fund and International Equity Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. 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 gain or loss from investments. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, 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 other than investments in securities at fiscal year end, resulting from changes in the exchange rate. Restricted Securities - Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Funds' pricing committee. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. Other - Investment transactions are accounted for on a trade date basis. 3. Shares of Beneficial Interest The Declarations of Trust of The Wachovia Funds and The Wachovia Municipal Funds permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in capital stock were as follows:
---------------------------------------------------------------------------------------------------------------------- Equity Fund Quantitative Equity Fund ------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ----------------------------------------------------------------------------------------------------------------------- Shares sold 323,364 $4,082,098 2,404,910 $34,384,5394,777 $1,466,546 1,073,066 $18,865,379 Shares issued to 5,536 72,521 211,214 3,465,728 159,403 2,514,149 263,850 5,223,606 shareholders in payment of distributions declared Shares redeemed (2,988,454) (38,713,191) (2,973,838) (42,313,64(636,577) (9,758,277) (2,196,602)(38,358,376) ----------- ------------ ----------- ------------------- ----------- ----------------------- Net change resulting from (2,659,554) $(34,558,572) (357,714) $(4,463,38(382,397) $(5,777,582)(859,686) $(14,269,391) =========== ============= ========= =================== ===================== ============ Class A Share transactions Six Months Ended Year Ended Six Months Ended Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 --------------------------------------------------------------------------------------------------- Class B Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ----------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 13,608 $170,748 83,109 $1,229,7767,981 $121,916 46,303 $839,227 Shares issued to shareholders in --- --- 18,936 310,354 53,993 838,515 73,882 1,453,247 payment of distributions declared Shares redeemed (71,375) (869,101) (105,640) (1,454,461(119,831) (1,809,322) (194,905) (3,333,502) -------- --------- --------- ------------------- ----------- --------- ----------- Net change resulting from (57,767) $(698,353) (3,595) $85,669 (57,857) $(848,891) (74,720) $(1,041,028) ======== ========== ======= ======= ======== ========== ======== ============ Class B Share transactions Six Months Ended Period Ended November Period Ended Period Ended 30, November 30, May 31, 2002 2001 (1) April 30, 2002 (5) 2001 (1) Class C Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ----------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 72 $923 39,272 $634,679 --- $ 4,785 $93,658 -- Shares issued to shareholders in --- --- -- --- --- 4 --- -- payment of distributions declared Shares redeemed (6,764) (86,135) (3,059) (41,943) (7) (110) (4,778) (88,153) ------- -------- ------- -------- --- ----- ------- -------- Net change resulting from (6,692) $(85,212) 36,213 $592,736 (7) $(106) 7 $5,505 ======= ========= ====== ======== === ====== = ====== Class C Share transactions Equity Fund (continued) Quantitative Equity Fund (continued) ---------------------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ----------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 2,795,435 $34,945,579 3,537,322 $51,099,66189,931 $2,950,701 701,978 $12,141,249 Shares issued to shareholders in 16,534 216,302 356,421 5,819,488 1,215,706 19,209,349 1,641,134 32,599,321 payment of distributions declared Shares redeemed (3,595,637) (45,099,982) (4,115,637) (56,694,93(1,464,770) (22,804,370)(3,471,458)(61,767,054) ----------- ------------ ----------- --------------------- ----------------------------------- Net change resulting from (783,668) $(9,938,101) (221,894) $224,221 (59,133) $(644,320) (1,128,346)$(17,026,484) ========= ============ ========= ======== ======== ========== ======================== Class Y Share transactions Net change resulting from (3,507,681) $(45,280,238) (546,990) $(3,560,75(499,394) $(7,270,899)(2,062,745)$(32,331,398) =========== ============= ========= =================== ==================================== fund share transactions
Growth & Income Fund --------------------------------------------------------------------------------- Six Months Ended Year Ended May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 84,042 $1,201,457 686,072 $10,712,959 Shares issued to shareholders in 164,659 2,267,360 313,706 5,706,315 payment of distributions declared Shares redeemed (671,205) (8,776,021) (1,325,749) (20,372,057) --------- ----------- ----------- ------------ Net change resulting from (422,504) $(5,307,204) (325,971) $(3,952,783) ========= ============ ========= ============ Class A Share transactions Six Months Ended Period Ended November 30, May 31, 2002 2001 (1) Class B Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 132 $1,784 9,540 $165,913 Shares issued to shareholders in 406 5,555 1 14 payment of distributions declared Shares redeemed (182) (2,342) (488) (7,379) ----- ------- ----- ------- Net change resulting from 356 $4,997 9,053 $158,548 === ====== ===== ======== Class A Share transactions Six Months Ended Period Ended November 30, May 31, 2002 2001 (1) Class C Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold -- $ -- 278 $5,200 Shares issued to shareholders in 11 148 1 14 payment of distributions declared Shares redeemed (84) (1,099) (35) (574) ---- ------- ---- ----- Net change resulting from (73) $(951) 244 $4,640 ==== ====== === ====== Class A Share transactions Six Months Ended Year Ended November 30, May 31, 2002 2001 Class Y Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 292,596 $3,909,384 753,710 $12,277,121 Shares issued to shareholders in 191,229 2,637,047 301,514 5,493,581 payment of distributions declared Shares redeemed (948,927) (12,496,759) (1,026,116) (15,749,276) --------- ------------ ----------- ------------ Net change resulting from (465,102) $(5,950,328) 29,108 $2,021,426 ========= ============ ====== ========== Class Y Share transactions Net change resulting from (887,323) $(11,253,486) (287,566) $(1,768,169) ========= ============= ========= ============ fund share transactions Equity Index Fund --------------------------------------------------------------------------------- --------------------------------------------------------------------------------- Six Months Ended Year Ended May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 1,256,451 $51,788,972 1,156,476 $25,581,572 Shares issued to shareholders in 51,066 1,071,925 53,871 1,222,716 payment of distributions declared Shares redeemed (963,808) (19,797,723) (2,660,428) (58,360,000) --------- ------------ ----------- ------------ Net change resulting from 343,709 $33,063,174 (1,450,081) $(31,555,712) ======= =========== =========== ============= Class A Share transactions Class A Share transactions Six Months Ended Period Ended May 31, 2002 November 30, 2001 (1) Class B Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 13,874 $620,563 64,105 $1,384,795 Shares issued to shareholders in 428 8,964 69 1,524 payment of distributions declared Shares redeemed (5,137) (104,105) (2,147) (46,798) ------- --------- ------- -------- Net change resulting from 9,165 $525,422 62,027 $1,339,521 ===== ======== ====== ========== Class B Share transactions Class B Share transactions Equity Index Fund (continued) --------------------------------- Six Months Ended Period Ended May 31, 2002 November 30, 2001 (1) Class C Shares Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 21,127 $1,095,909 137,554 $2,971,186 Shares issued to shareholders in 870 18,210 146 3,156 payment of distributions declared Shares redeemed (7,098) (144,153) (12,170) (290,870) ------- --------- -------- --------- Net change resulting from 14,899 $969,966 125,530 $2,683,472 ====== ======== ======= ========== Class C Share transactions Class C Share transactions Six Months Ended Year Ended May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------- -------------------- Shares sold 948,828 $51,182,431 3,491,191 $78,037,569 Shares issued to shareholders in 106,852 2,243,015 137,406 3,113,907 payment of distributions declared Shares redeemed (8,261,193) (172,444,446) (4,994,565) (113,716,663) ----------- ------------- ----------- ------------- Net change resulting from (7,205,513) $(119,019,000) (1,365,968) $(32,565,187) =========== ============== =========== ============= Class Y Share transactions Net change resulting from (6,837,740) $(84,460,438) (2,628,492) $(60,097,906) =========== ============= =========== ============= fund share transactions
-------------------------------------------------------------------------------------------------------------------- Emerging Markets Fund Personal Equity Fund -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars -------------------------------------------------------------------------------------------------------------------- ------------------- Shares sold 2,309,113 $23,249,924 8,348,016 $79,238,190 3,275 $23,960 278,678 $2,360,482 Shares issued to shareholders in 10,817 100,381 5,460 48,365 22 170 67 payment of 653 distributions declared Shares redeemed (2,817,319) (28,514,846) (8,453,344) (81,274,476) (2,915) (20,805) (275,406) (2,184,209) ----------- ------------ ----------- ------------ ------- -------- --------- ----------- Net change resulting from (497,389) $(5,164,541) (99,868) $(1,987,921) 382 $3,325 3,339 $176,926 ========= ============ ======== ============ === ====== ===== ======== Class A Share transactions Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001 (1) May 31, 2002 November 30, 2001 (1) Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class B Shares -------------------------------------------------------------------------------------------------------------------- ------------------- Shares sold 195 $2,100 850 $9,047 405 $3,000 4,505 $40,250 Shares issued to shareholders in 1 6 -- -- 3 20 --* 2 payment of distributions declared Shares redeemed (15) (159) (747) (7,568) (15) (104) (9) (75) ---- ----- ----- ------- ---- ----- --- ---- Net change resulting from 181 $1,947 103 $1,479 393 $2,916 4,496 $40,177 === ====== === ====== === ====== ===== ======= Class B Share transactions Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001(1) May 31, 2002 November 30, 2001 (1) Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class C Shares -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 1,701 $16,995 1,837 $17,752 --- $ 24 $250 -- Shares issued to shareholders in 11 97 4 35 --- --- --* 2 payment of distributions declared Shares redeemed (14) (159) (312) (2,755) (15) (106) (9) (76) ---- ----- ----- ------- ---- ----- --- ---- Net change resulting from 1,698 $16,933 1,529 $15,032 (15) $(106) 15 $176 ===== ======= ===== ======= ==== ====== == ==== Class C Share transactions Six Months Ended Year Ended Six Months Ended Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class Y Shares -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 5,005,592 $51,040,169 3,500,483 $33,522,007 1,139,008$8,613,523 2,587,857 $21,686,802 Shares issued to shareholders in 59,006 547,574 32,995 309,878 20,338 158,809 330,688 3,216,958 payment of distributions declared Shares redeemed (7,861,072) (80,244,344) (4,494,228) (42,658,875) (3,870,807) (29,107,218)(4,268,878) (35,677,745) ----------- ------------ ----------- ------------ ------------------------------------------ Net change resulting from (2,796,474) $(28,656,601) (960,750) $(8,826,990) (2,711,461) $(20,334,886)(1,350,333)$(10,773,985) =========== ============= ========= ============ =========================================== Class Y Share transactions Net change resulting from (3,291,984) $(33,802,262) (1,058,986) $(10,798,400) (2,710,701)($20,328,751)(1,342,483) $(10,556,706) =========== ============= =========== ============= =========================================== fund share transactions Blue Chip Value Fund New Horizons Fund ------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------- Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001 (2) May 31, 2002 November 30, 2001 (3) Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 4,991 $44,442 46,320 $431,817 4,045 $22,218 27,277 $219,442 Shares issued to shareholders in 115 1,031 5 48 --- --- -- -- payment of distributions declared Shares redeemed (6,556) (59,123) (2,076) (18,097) (4,399) (25,052) (3,967) (25,748) ------- -------- ------- -------- ------- -------- ------- -------- Net change resulting from (1,450) $(13,650) 44,249 $413,768 (354) $(2,834) 23,310 $193,694 ======= ========= ====== ======== ===== ======== ====== ======== Class A Share transactions Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001 (2) May 31, 2002 November 30, 2001 (2) Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class B Shares -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 9 $75 17,459 $166,510 67 $375 16,179 $120,570 Shares redeemed (3,292) (29,138) (552) (4,664) (724) (4,390) (1,625) (9,644) ------- -------- ----- ------- ----- ------- ------- ------- Net change resulting from (3,283) $(29,063) 16,907 $161,846 (657) $(4,015) 14,554 $110,926 ======= ========= ====== ======== ===== ======== ====== ======== Class B Share transactions Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001 (2) May 31, 2002 November 30, 2001 (2) Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class C Shares -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 67 $594 7,680 $77,845 101 $594 22,854 $179,019 Shares redeemed (15) (128) (5,934) (54,646) (15) (78) (6,469) (44,145) ---- ----- ------- -------- ---- ---- ------- -------- Net change resulting from 52 $466 1,746 $23,199 86 $516 16,385 $134,874 == ==== ===== ======= == ==== ====== ======== Class C Share transactions Six Months Ended Period Ended Six Months Ended Period Ended May 31, 2002 November 30, 2001 (2) May 31, 2002 November 30, 2001 (2) Shares Dollars Shares Dollars Shares Dollars Shares Dollars Class Y Shares -------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 81,637 $725,890 159,469 $1,543,188 25,738 $156,413 164,374 $1,469,883 Shares issued to shareholders in 590 5,293 215 2,001 --- --- -- -- payment of distributions declared Shares redeemed (30,045) (275,629) (540) (4,695) (30,481) (170,324) (7,548) (47,481) -------- --------- ----- ------- -------- --------- ------- -------- Net change resulting from 52,182 $455,554 159,144 $1,540,494 (4,743) $(13,911) 156,826 $1,422,402 ====== ======== ======= ========== ======= ========= ======= ========== Class Y Share transactions Net change resulting from 47,501 $413,307 222,046 $2,139,307 (5,668) $(20,244) 211,075 $1,861,896 ====== ======== ======= ========== ======= ========= ======= ========== fund share transactions
International Equity Fund --------------------------------------------------------------------- --------------------------------------------------------------------- Six Months Ended Period Ended May 31, 2002 November 30, 2001 (4) Class A Shares Shares Dollars Shares Dollars --------------------------------------------------------------------------------------------- ------------------------- Shares sold 525,604 $4,532,157 1,137,315 $10,163,770 Shares redeemed (635,936) (5,513,111) (508,979) (4,334,312) --------- ----------- --------- ----------- Net change resulting from (110,332) $(980,954) 628,336 $5,829,458 ========= ========== ======= ========== Class A Share transactions Six Months Ended Period Ended May 31, 2002 November 30, 2001 (4) Shares Dollars Shares Dollars Class B Shares --------------------------------------------------------------------------------------------- ------------------------- Shares sold 88 $768 150 $1,370 Shares redeemed (25) (217) -- -- ---- ----- -- -- Net change resulting from 63 $551 150 $1,370 == ==== === ====== Class B Share transactions Six Months Ended Period Ended May 31, 2002 November 30, 2001 (4) Shares Dollars Shares Dollars Class C Shares --------------------------------------------------------------------------------------------- ------------------------- Shares sold -- $ 11,013 $109,150 -- Shares redeemed (25) (216) (484) (4,177) ---- ----- ----- ------- Net change resulting from (25) ($216) 10,529 $104,973 ==== ====== ====== ======== Class C Share transactions Six Months Ended Period Ended May 31, 2002 November 30, 2001 (4) Shares Dollars Shares Dollars Class Y Shares --------------------------------------------------------------------------------------------- ------------------------- Shares sold 94,804 $819,464 622,036 $5,900,889 Shares redeemed (167,925) (1,467,474) (73,423) (602,557) --------- ----------- -------- --------- Net change resulting from (73,121) $(648,010) 548,613 $5,298,332 ======== ========== ======= ========== Class Y Share transactions Net change resulting from (183,415) $(1,628,629) 1,187,628 $11,234,133 ========= ============ ========= =========== fund share transactions
Balanced Fund Fixed Income Fund ----------------------------------------------------------------------------------------------------- Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------ Shares sold 682,738 $7,519,489 4,050,028 $48,489,865 790,146 $7,914,909 6,311,942 $63,281,074 Shares issued to shareholders in 119,190 1,336,398 1,352,185 17,072,787 79,483 794,189 302,238 3,020,154 payment of distributions declared Shares redeemed (6,976,590) (77,974,977)(6,643,603) (79,049,859)(4,278,826) (42,806,795) (7,957,138) (79,677,185) ----------- ----------------------- ----------------------- --------------------------------- Net change resulting from (6,174,662) $(69,119,090)(1,241,390) $(13,487,207)(3,409,197) $(34,097,697)(1,342,958) $(13,375,957) =========== ======================= ======================= ================================== Class A Share transactions Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class B Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------- Shares sold 18,147 $199,491 362,717 $4,407,636 23,824 $240,201 74,406 $747,742 Shares issued to shareholders in payment 12,975 145,299 144,625 1,829,522 1,533 15,321 2,408 24,126 of distributions declared Shares redeemed (240,286) (2,650,862) (311,947) (3,621,332) (53,497) (539,569) (23,096) (230,059) --------- ----------- --------- ----------- -------- --------- -------- --------- Net change resulting from (209,164) $(2,306,072)195,395 $2,615,826 (28,140) $(284,047) 53,718 $541,809 ========= =================== ========== ======== ========== ====== ======== Class B Share transactions Six Months Ended, Period Ended Six Months Ended, Period Ended May 31, 2002 November 30, 2001 (1) May 31, 2002 November 30, 2001 (1) Class C Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------- Shares sold --- $ 43,219 $524,105 252 $2,554 8,458 $84,408 -- Shares issued to shareholders in payment 214 2,407 336 4,005 189 1,887 234 2,356 of distributions declared Shares redeemed (21,452) (234,175) (6,300) (72,655) (265) (2,665) (1,033) (10,648) -------- --------- ------- -------- ----- ------- ------- -------- Net change resulting from (21,238) $(231,768) 37,255 $455,455 176 $1,776 7,659 $76,116 ======== ========== ====== ======== === ====== ===== ======= Class C Share transactions Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------ Shares sold 827,181 $9,068,274 2,014,492 $23,604,262 5,345,734 $53,693,210 11,516,174 $115,093,642 Shares issued to shareholders in 89,014 997,492 2,070,268 26,345,826 274,214 2,737,851 724,007 7,248,037 payment of distributions declared Shares redeemed (2,911,384) (32,111,669)(6,272,997) (74,794,471)(12,301,934) (123,357,830) (9,609,051 (96,149,348) ----------- ----------------------- ----------------------- --------------------------------- Net change resulting from (1,995,189) $(22,045,903(2,188,237) $(24,844,383)(6,681,986) $(66,926,769) 2,631,130 $26,192,331 =========== ======================= ====================== ==================== =========== Class Y Share transactions Net change resulting from (8,400,253) $(93,702,833(3,196,977) $(35,260,309) (10,119,147) $(101,306,737) 1,349,549 $13,434,299 =========== ======================= ======================= ==================== =========== fund share transactions fund shares transactions Intermediate Fixed Income Fund Short-Term Fixed Income Fund ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------ Shares sold 121,441 $1,210,135 3,535,016 $35,264,99511,858 $5,134,687 325,648 $3,261,826 Shares issued to shareholders in 7,018 69,437 12,905 128,610 15,251 152,524 41,408 412,481 payment of distributions declared Shares redeemed (198,073) (1,994,450) (3,563,103) (35,531,52(651,147) (6,532,411)(460,669) (4,605,632) --------- ----------- ----------- ------------------- -------------------- ----------- Net change resulting from (69,614) $(714,878) (15,182) $(137,922)(124,038) $(1,245,200)(93,613) $(931,325) ======== ========== ======== =================== =================== ========== Class A Share transactions Period Ended, Period Ended Six Months Ended, Period Ended April 30, November 30, 2001 (1) May 31, 2002 November 30, 2001 (1) 2002 (5) Class B Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------ Shares sold -- $ 25 $250 125 $1,246 21,783 $218,152 -- Shares issued to shareholders in -- 3 1 8 259 2,591 269 2,699 payment of distributions declared Shares redeemed (16) (160) (10) (104) (6,493) (65,179) (4,912) (48,871) ---- ----- ---- ----- ------- -------- ------- -------- Net change resulting from (16) $(157) 16 $154 (6,109) $(61,342) 17,140 $171,980 ==== ====== == ==== ======= ========= ====== ======== Class B Share transactions Six Months Ended, Period Ended Six Months Ended, Period Ended May 31, 2002 November 30, 2001 (1) May 31, 2002 November 30, 2001(1) Class C Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- ------------------------ Shares sold -- $ 2,011 $19,951 2 -- 609 $6,192 -- Shares issued to shareholders in 57 563 58 580 9 116 3 33 payment of distributions declared Shares redeemed (16) (159) (10) (104) (16) (161) (10) (104) ---- ----- ---- ----- ---- ----- ---- ----- Net change resulting from 41 $404 2,059 $20,427 (5) $(45) 602 $6,121 == ==== ===== ======= === ===== === ====== Class C Share transactions Intermediate Fixed Income Fund (continued) Short-Term Fixed Income Fund (continued) Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 1,163,156 $11,549,688 2,308,634 $23,046,412 596,024 $5,970,120 612,332 $6,082,815 Shares issued to shareholders in 41,128 406,350 53,305 531,694 54,958 548,475 123,901 1,234,158 payment of distributions declared Shares redeemed (2,116,711) (21,116,675) (2,315,301) (23,159,252) (847,283) (8,467,566) (911,704) (9,086,599) ----------- ------------ ----------- ------------------- ----------- --------- ----------- Net change resulting from (912,427) $(9,160,637) 46,638 $418,854 (196,301) $(1,948,971)(175,471) $(1,769,626) ========= ============ ====== ======== ========= ===================== ============ Class Y Share transactions Net change resulting from (982,016) $(9,875,268) 33,531 $301,513 (326,453) $(3,255,558)(251,342) $(2,522,850) ========= ============ ====== ========= ========= ===================== ============ fund share transactions Georgia Municipal Bond Fund North Carolina Municipal Bond Fund --------------------------------------------------------------------------------------------------------- Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars ---------------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 6,619 $73,527 45,488 $507,639 3,158 $35,157 82,968 $930,319 Shares issued to shareholders in 5,338 59,434 13,683 152,824 14,989 165,212 18,097 204,575 payment of distributions declared Shares redeemed (21,958) (242,306) (68,816) (771,184) (27,713) (307,515) (202,811) (2,289,661) -------- --------- -------- --------- -------- --------- --------- ----------- Net change resulting from (10,001) $(109,345) (9,645) $(110,721) (9,566) $(107,146) (101,746) $(1,154,767) ======== ========== ======= ========== ======= ========== ========= ============ Class A Share transactions Six Months Ended, Year Ended Six Months Ended, Year Ended May 31, 2002 November 30, 2001 May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars Shares Dollars Shares Dollars --------------------------------------------------------------------------------------------------------------------------- -------------------- Shares sold 587,815 $6,505,725 2,702,274 $30,320,130 1,638,790 $18,231,541 3,037,731 $34,268,787 Shares issued to shareholders in 7,656 85,026 11,964 133,804 504,665 5,527,493 16,890 $191,048 payment of distributions declared Shares redeemed (958,468) (10,640,964) (1,321,765) (14,811,72 (1,851,702) (20,604,855)(3,791,575(42,817,037) --------- ------------ ----------- --------------------- ---------------------------------- Net change resulting from (362,997) $(4,050,213) 1,392,473 $15,642,208 291,753 3,154,179 (736,954) $(8,357,202) ========= ============ ========= ================= ========= ========= ============ Class Y Share transactions Net change resulting from (372,998) $(4,159,558) 1,382,828 $15,531,487 282,187 $3,047,033 (838,700) $(9,511,969) ========= ============ ========= ================= ========== ========= ============ fund share transactions
South Carolina Municipal Bond Fund -------------------------------------------------------------- Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 84,793 $936,014 445,888 $4,958,851 Shares issued to shareholders in 72,142 794,286 134,990 1,505,236 payment of distributions declared Shares redeemed (567,419) (6,279,833) (516,003) (5,754,372) --------- ----------- --------- ----------- Net change resulting from (410,484) $(4,549,533) 64,875 $709,715 --------- ------------ ------ -------- Class A Share transactions Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 1,176,218 $13,024,401 1,517,093 $16,906,129 Shares issued to shareholders in 105,014 1,148,415 11,972 133,502 payment of distributions declared Shares redeemed (917,591) (10,143,974) (2,027,810) (22,573,002) --------- ------------ ----------- ------------ Net change resulting from 363,641 $4,028,842 (498,745) $(5,533,371) ======= ========== ========= ============ Class Y Share transactions Net change resulting from (46,843) $(520,691) (433,870) $(4,823,656) ======== ========== =============== ============ fund share transactions Virginia Municipal Bond Fund -------------------------------------------------------------- Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Class A Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 16,048 $166,062 61,143 $636,348 Shares issued to shareholders in 13,661 140,011 21,086 219,225 payment of distributions declared Shares redeemed (49,948) (516,472) (38,544) (401,647) -------- --------- -------- --------- Net change resulting from (20,239) $(210,399) 43,685 $453,926 ======== ========== ====== ======== Class A Share transactions Virginia Municipal Bond Fund (continued) Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Class Y Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 426,168 $4,391,470 927,482 $9,644,693 Shares issued to shareholders in 10,942 112,127 16,045 166,801 payment of distributions declared Shares redeemed (1,012,300) (10,409,109) (1,656,487) (17,305,326) ----------- ------------ ----------- ------------ Net change resulting from (575,190) $(5,905,512) (712,960) $(7,493,832) ========= ============ ========= ============ Class Y Share transactions Net change resulting from (595,429) $(6,115,911) (669,275) $(7,039,906) ========= ============ ========= ============ fund share transactions Money Market Fund -------------------------------------------------------------- Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Investment Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 313,444,797 $313,444,797 1,088,376,406 $1,088,376,406 Shares issued to shareholders in 1,686,825 1,686,825 12,588,768 12,588,768 payment of distributions declared Shares redeemed (885,685,304) (885,685,304) (1,020,505,301)(1,020,505,301) ------------- ------------- --------------- -------------- Net change resulting from (570,553,682) $(570,553,682) 80,459,873 $80,459,873 ============= ============== ========== =========== Class A Share transactions Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Institutional Shares Dollars Shares Dollars Shares -------------------------------------------------------------------------------- -------------------- Shares sold 572,459,636 $572,459,636 872,398,473 $872,398,473 Shares issued to shareholders in 243,598 243,598 807,014 807,014 payment of distributions declared Shares redeemed (1,115,558,695)(1,115,558,695)(905,955,988) (905,955,988) ------------------------------------------- ------------- Net change resulting from (542,855,461) $(542,855,461) (32,750,501) $(32,750,501) ------------- -------------- ------------ ------------- Class Y Share transactions Net change resulting from (1,113,409,143)$(1,113,409,14347,709,372 $47,709,372 ======================================== =========== fund share transactions Tax-Free Money Market Fund -------------------------------------------------------------- Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Investment Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 216,686,915 $216,686,915 360,330,597 $360,330,597 Shares issued to shareholders in 157,279 157,279 948,837 948,837 payment of distributions declared Shares redeemed (394,354,027) (394,354,027) (341,921,032) (341,921,032) ------------- ------------- ------------- ------------- Net change resulting from (177,509,833) $(177,509,833) 19,358,402 $19,358,402 ============= ============== ========== =========== Class A Share transactions Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Institutional Shares Dollars Shares Dollars Shares -------------------------------------------------------------------------------- -------------------- Shares sold 162,105,805 $162,105,805 424,819,873 $424,819,873 Shares issued to shareholders in --- --- ---- ---- payment of distributions declared Shares redeemed (464,770,315) (464,770,315) (416,015,729) (416,015,729) ------------- ------------- ------------- ------------- Net change resulting from (302,664,510) $(302,664,510) 8,804,144 $8,804,144 ============= ============== ========= ========== Class Y Share transactions Net change resulting from (480,174,343) $(480,174,343) 28,162,546 $28,162,546 ============= ============== ========== =========== fund share transactions U.S. Treasury Money Market Fund -------------------------------------------------------------- Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Investment Shares Shares Dollars Shares Dollars -------------------------------------------------------------------------------- -------------------- Shares sold 111,464,601 $111,464,601 296,905,614 $296,905,614 Shares issued to shareholders in 294,018 294,018 2,256,261 2,256,261 payment of distributions declared Shares redeemed (249,259,689) (249,259,689) (304,968,441) (304,968,441) ------------- ------------- ------------- ------------- Net change resulting from (137,501,070) $(137,501,070) (5,806,566) $(5,806,566) ============= ============== =========== ============ Class A Share transactions U.S. Treasury Money Market Fund (continued) Six Months Ended, Year Ended May 31, 2002 November 30, 2001 Institutional Shares Dollars Shares Dollars Shares -------------------------------------------------------------------------------- -------------------- Shares sold 426,144,628 $426,144,628 1,332,264,106 $1,332,264,106 Shares issued to shareholders in 84,750 84,750 230,358 230,358 payment of distributions declared Shares redeemed (878,486,648) (878,486,648) (1,365,177,676) (1,365,177,676) ------------- ------------- --------------- ------------- Net change resulting from (452,257,270) $(452,257,270) (32,683,212) $(32,683,212) ------------- -------------- ------------ ------------- Class Y Share transactions Net change resulting from (589,758,340) $(589,758,340) (38,489,778) $(38,489,778) ============= ============== ============= ============= fund share transactions (1) Reflects operations for the period from December 12, 2000 (date of initial public investment) to November 30, 2001. (2) Reflects operations for the period from December 26, 2000 (date of initial public investment) to November 30, 2001. (3) Reflects operations for the period from December 22, 2000 (date of initial public investment) to November 30, 2001. (4) Reflects operations for the period from March 2, 2001 (date of initial public investment) to November 30, 2001. (5) Reflects operations for the period ended April 30, 2002 (last day of operations for the class). * Rounds to less than 1 share. 4. Investment Adviser Fee and Other Transactions with Affiliates Investment Adviser Fee - Effective January 2, 2002, Evergreen Investment Management Company, LLC ("EIMC"), an indirect wholly owned subsidiary of Wachovia Corporation (formerly First Union Corporation), became the interim investment adviser to the Funds and receives for its services an annual investment adviser fee based on a percentage of each Fund's average daily net assets as listed below. Prior to January 2, 2002, Wachovia Fund Advisers (formerly, Wachovia Asset Management), a subsidiary of Wachovia Bank, N.A. served as the Fund's investment adviser and received a fee at the same rate. Fund Annual Rate Equity Fund 0.70% Quantitative Equity Fund 0.70% Growth & Income Fund 0.70% Equity Index Fund 0.30% Emerging Markets Fund 1.00% Personal Equity Fund 0.70% Balanced Fund 0.70% Blue Chip Value Fund 0.70% New Horizons Fund 0.70% International Equity Fund 1.00% Fixed Income Fund 0.60% Intermediate Fixed Income 0.60% Fund Short-Term Fixed Income Fund 0.55% Georgia Municipal Bond Fund 0.75% North Carolina Municipal 0.75% Bond Fund South Carolina Municipal 0.75% Bond Fund Virginia Municipal Bond Fund 0.74% Money Market Fund 0.50% Tax-Free Money Market Fund 0.50% U.S. Treasury Money Market 0.50% Fund As a result of contractual obligations, the adviser may be required to waive any portion of its fee. Sub Adviser Fee - Effective January 2, 2002, Tattersall Advisory Group, Inc. ("TAG"), an indirect wholly owned subsidiary of Wachovia Corporation became the interim sub-adviser for Fixed Income Fund, Intermediate Fixed Income Fund, Short-Term Fixed Income Fund and the fixed income portion of Balanced Fund . TAG is paid by EIMC for its services to the Funds. Prior to January 2, 2002, Twin Capital Management, Inc. served as sub-adviser to Quantitative Equity Fund and Simms Capital Management, Inc. served as sub-adviser to International Equity Fund and were both paid by the adviser. . Administrative Fee, and Transfer and Dividend Disbursing Agent and Portfolio Accounting Fees - Federated Services Company ("FServ") provides the Funds with certain administrative personnel and portfolio accounting services. Effective May 20, 2002, Evergreen Service Company, LLC, an indirect wholly owned subsidiary of Wachovia Corporation became the transfer and dividend disbursing agent for the Funds. Prior to May 20, 2002, FServ, through its subsidiary Federated Shareholder Services Company, served as transfer and dividend disbursing agent for the Funds. Distribution Services Fee - The Wachovia Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds compensate Federated Securities Corp. ("FSC"), the principal distributor, from their respective net assets to finance certain activities intended to result in the sale of The Wachovia Funds' Class B Shares and Class C Shares and the Investment Shares of Money Market Fund, Tax-Free Money Market Fund, and U.S. Treasury Money Market Fund. The Plan provides that each Fund may incur distribution expenses up to 0.75% for The Wachovia Funds' Class B Shares and Class C Shares and 0.40% for the Money Market Fund, Tax-Free Money Market Fund, and U.S. Treasury Money Market Fund Investment Shares based on the average daily net assets of each Fund, to compensate FSC. FSC may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Funds. FSC can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. Shareholder Services Fee - Under the terms of a Shareholder Services Agreement with Federated Administrative Services, ("FAS"), the Funds (excluding Money Market Fund, Tax-Free Money Market Fund, and U.S. Treasury Money Market Fund) pay FAS up to 0.25% of average daily net assets of each Fund's Class A Shares, Class B Shares and Class C Shares for the period. The fee paid to FAS is used to finance certain services for shareholders and to maintain shareholder accounts. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. Custodian Fees - Effective May 20, 2002, State Street Bank and Trust became the custodian for the Funds. Prior to May 20, 2002, Wachovia Bank, N.A. served as custodian to the Funds. 5. Investment Transactions Purchases and sales of investments, excluding short-term securities and long-term U.S. government securities (and in-kind contributions), for the six-months ended May 31, 2002, were as follows: Fund Purchases Sales ------------------------------ ---------------- ---------------- Equity Fund $ $ 1 - 117,376,445 152,406,004 ---------------- ---------------- Quantitative Equity Fund 46,487,012 83,878,475 ---------------- ---------------- Growth & Income Fund 101,083,828 119,777,529 ---------------- ---------------- Equity Index Fund 10,729,725 35,185,276 ---------------- ---------------- Emerging Markets Fund 18,328,113 64,456,958 ---------------- ---------------- Personal Equity Fund 127,667,475 166,594,683 ---------------- ---------------- Balanced Fund 237,950,289 336,092,431 ---------------- ---------------- Blue Chip Value Fund 854,090 974,503 ---------------- ---------------- New Horizons Fund 715,677 886,846 ---------------- ---------------- International Equity Fund 6,872,774 8,292,615 ---------------- ---------------- Fixed Income Fund 105,938,754 130,357,680 ---------------- ---------------- Intermediate Fixed Income 29,262,710 46,454,679 Fund ---------------- ---------------- Short-Term Fixed Income Fund 4,449,763 12,915,185 ---------------- ---------------- Georgia Municipal Bond Fund 31,058,681 33,431,399 ---------------- ---------------- North Carolina Municipal 175,006,588 173,294,518 Bond Fund ---------------- ---------------- South Carolina Municipal 83,872,187 98,671,488 Bond Fund ---------------- ---------------- Virginia Municipal Bond Fund 29,809,277 33,979,123 ---------------- ---------------- Purchases and sales of long-term U.S. government securities for the period ended May 31, 2002, were as follows: Fund Purchases Sales ------------------------------ ---------------- ---------------- ------------------------------ Personal Equity Fund $ 3,483,626 $ 3,000,000 ---------------- ---------------- Balanced Fund 92,925,985 99,389,841 ---------------- ---------------- Fixed Income Fund 615,622,392 756,468,591 ---------------- ---------------- ---------------- Intermediate Fixed Income 94,413,761 81,681,292 Fund ---------------- ---------------- ---------------- ---------------- Short-Term Fixed Income Fund 25,383,717 18,563,793 ---------------- ---------------- 6. Concentration of Credit Risk Funds whose investments are concentrated in a specific industry, sector or geographic area may be subject to a higher degree of market risk than funds whose investments are diversified. Emerging Markets Fund and International Equity Fund invests in securities of non-U.S. issuers. Although the Funds maintain diversified investment portfolios, the political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. At May 31, 2002, the diversification of the industries for the Funds were as follows: Emerging Markets Fund Industry % of Net Assets -------- --------------- Basic Materials 11.6 % Capital Goods 1.1 % Open End Funds 16.2 % Communication 14.5 % Services Consumer Cyclical 7.2 % Consumer Staples 3.2 % Energy 6.9 % Financial Services 15.3 % Health Care 3.5 % Multi-Industry 1.4 % Technology 13.9 % Transportation 1.8 % Utilities 3.4 % International Equity Fund Industry % of Net Assets -------- --------------- Basic Materials 4.9 % Capital Goods 1.7 % Communication 8.6 % Services Consumer Cyclical 23.4 % Consumer Staples 2.5 % Energy 6.1 % Financial Services 13.5 % Health Care 16.4 % Other 3.5 % Real Estate 5.3 % Technology 10.3 % Utilities 3.8 % Since The Wachovia Municipal Funds invest a substantial portion of their assets in issuers located in one state, they will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at May 31, 2002 the securities in the portfolio of investments are backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies, as indicated below. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency is also indicated below. % of Portfolio % of Portfolio Backed by Largest Fund Guaranteed/Insured Guarantor/Insurer ---- ------------------ ----------------- Georgia Municipal Bond Fund 29.52% 11.43% North Carolina Municipal 21.79% 6.65% Bond Fund South Carolina Municipal 56.29% 22.69% Bond Fund Virginia Municipal Bond Fund 17.48% 6.74% 7. Subsequent Events Effective on the close of business on June 7, 2002, the net assets and liabilities of each Fund listed below were acquired by the Evergreen fund listed below in a tax-free exchange of shares. Each Evergreen fund is an open-end management investment company registered under the Act. Wachovia Fund Evergreen Fund Balanced Fund Balanced Fund Fixed Income Fund Core Bond Fund Intermediate Fixed Income Fund Fixed Income Fund Short-Term Fixed Income Fund Fixed Income Fund Georgia Municipal Bond Fund Georgia Municipal Bond Fund North Carolina Municipal Bond Fund North Carolina Municipal Bond Fund South Carolina Municipal Bond Fund South Carolina Municipal Bond Fund Virginia Municipal Bond Fund Virginia Municipal Bond Fund Effective on the close of business on June 14, 2002, the net assets and liabilities of each Fund listed below were acquired by the Evergreen fund listed below in a tax-free exchange of shares. Each Evergreen fund is an open-end management investment company registered under the Act. Wachovia Fund Evergreen Fund Equity Fund Core Equity Fund Quantitative Equity Fund Stock Selector Fund Growth & Income Fund Core Equity Fund Equity Index Fund Equity Index Fund Emerging Markets Fund Emerging Markets Growth Fund Personal Equity Fund Core Equity Fund Blue Chip Value Fund Value Fund New Horizons Fund Omega Fund International Equity Fund International Growth Fund Additional Information (unaudited) On April 29, 2002, a Special Meeting of shareholders of each Fund listed below was held to consider a number of proposals. On February 28, 2002, the record date of the meeting, each Fund had the following
North South Georgia Carolina Carolina Virginia Municipal Municipal Municipal Bond Fund Bond Fund Bond Fund Municipal Bond Fund Record Date Shares outstanding 11,892,491.26 38,506,401.96 30,492,225.55 12,017,141.33 Shares present at meeting 10,690,412.06 23,994,878.21 25,123,053.32 10,363,655.18 Percent of Record Date Shares present 89.892% 62.314% 82.392% 86.241% 1. To consider and act upon an Agreement and Plan of Reorganization for each Fund. Number of Shares Voted South Georgia North Carolina Carolina Virginia Municipal Municipal Municipal Municipal Bond Fund Bond Fund Bond Fund Bond Fund Affirmative 10,501,097.062 23,490,653.213 22,775,696.749 10,167,023.318 Against 4,726.000 73,594.000 231,119.038 2,118.588 Abstain 151,715.000 34,438.000 66,880.537 15,317.271 Broker Non Votes 168,874.000 396,193.000 2,049,357.000 179,196.000 ---------------------------------------------------------- ---------------------------------------------------------- Total 10,826,412.062 23,994,878.213 25,123,053.32410,363,655.177 ------------------------------------------------------------------------------ 2. To consider and act upon the Investment Advisory Agreement between The Wachovia Municipal Funds, on behalf of each Fund, and Evergreen Investment Management Company, LLC, ("EIMC"). Number of Shares Voted --------------------------------------------------------------- South Georgia North Carolina Carolina Virginia Municipal Bond Municipal Municipal Municipal Fund Bond Fund Bond Fund Bond Fund Affirmative 10,669,971.062 23,886,846.213 24,841,055.678 10,345,423.620 Against 18,001.000 73,594.000 231,119.038 2,118.588 Abstain 2,440.000 34,438.000 50,878.608 16,112.969 --------------------------------------------------------------- --------------------------------------------------------------- Total 25,123,053.324 10,690,412.062 23,994,878.213 10,363,655.177 3. To consider and vote upon such other matters as may properly come before said meeting and any adjournments thereof. Number of Shares Voted Georgia North Carolina South Carolina Virginia Municipal Municipal Bond Municipal Municipal Bond Fund Fund Bond Fund Bond Fund Affirmative1,047,856.062 1,239,121.213 4,734,055.477 680,907.408 Against 9,640,116.000 22,714,334.000 20,291,591.329 9,640,021.950 Abstain 2,440.000 41,423.000 97,406.518 42,725.819 --------------------------------------------------------------- --------------------------------------------------------------- Total 10,690,412.062 23,994,878.213 25,123,053.324 10,363,655.177 ------------------------------------------------------------------------------ On May 13, 2002 a Special Meeting of shareholders of each of the Funds listed below was held to consider a number of proposals. On February 28, 2002, the record date of the meeting, the each Fund had the following: Quantitative Growth & Equity Index Equity Fund Equity Fund Income Fund Fund Record Date Shares outstanding 20,424,559.259 29,953,407.866 13,949,463.646 11,097,957.415 Shares present at meeting 17,274,279.374 24,975,698.445 11,397,004.295 6,465,490.004 Percent of Record Date Shares present 84.576% 83.382% 81.702% 58.258% Emerging Markets Personal Blue Chip New Horizons Fund Equity Fund Value Fund Fund Record Date Shares outstanding 14,100,952.714 37,085,033.816 299,951.169 215,589.226 Shares present at meeting 10,882,325.623 32,960,583.547 277,624.396 214,583.821 Percent of Record Date Shares present 77.174% 88.878% 92.557% 99.534% International Fixed Income Intermediate Equity Fund Balanced Fund Fund Fixed Income Fund Record Date Shares outstanding 1,213,790.244 36,525,635.837 52,772,974.321 13,028,445.639 Shares present at meeting 1,062,082.000 26,069,527.286 45,654,807.176 10,405,893.411 Percent of Record Date Shares present 87.501% 71.373% 86.512% 79.871% Short-Term Fixed Income Fund Record Date Shares outstanding 4,508,644.561 Shares present at meeting 2,292,138.002 Percent of Record Date Shares present 50.839% 1. To consider and act upon an Agreement and Plan of Reorganization for each Fund. Number of Shares Voted --------------------------------------------------------------------------- Quantitative Growth & Equity Fund Equity Fund Income Fund Equity Index Fund Affirmative 14,731,782.561 22,007,811.507 9,629,319.843 4,509,306.018 Against 256,931.918 165,796.938 58,859.835 21,477.000 Abstain 70,117.895 34,150.000 188,665.617 54,177.986 Broker Non-votes 2,215,447.000 2,767,940.000 1,520,159.000 1,880,529.000 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Total 17,274,279.374 24,975,698.445 11,397,004.295 6,465,490.004 Number of Shares Voted ---------------------------------------------------------------------------- Emerging Markets Personal Equity Blue Chip Fund Fund Value Fund New Horizons Fund Affirmative 10,153,784.986 32,277,568.025 227,227.396 177,711.821 Against 18,099.914 41,433.000 - 82.000 Abstain 6,318.723 1,543.522 649.000 - Broker Non-votes 704,122.000 640,039.000 49,748.000 36,790.000 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 10,882,325.623 32,960,583.547 277,624.396 214,583.821 Number of Shares Voted ---------------------------------------------------------------------------- International Fixed Income Intermediate Fixed Equity Fund Balanced Fund Fund Income Fund Affirmative 611,784.000 21,119,456.923 44,424,794.862 10,021,382.832 Against 4,331.000 171,368.133 123,606.056 50,732.000 Abstain 4,037.000 97,039.230 38,227.258 12,248.579 Broker Non-votes 441,930.000 4,681,663.000 1,068,179.000 321,530.000 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 1,062,082.000 26,069,527.286 45,654,807.176 10,405,893.411 Number of Shares Voted -------------------------------------- Short-Term Fixed Income Fund Affirmative 1,952,557.915 Against 63,535.910 Abstain 18,800.177 Broker Non-votes 257,244.000 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 2,292,138.002 2. To consider and act upon the Investment Advisory Agreement between The Wachovia Funds, on behalf of each Fund, and Evergreen Investment Management Company, LLC, ("EIMC"). Number of Shares Voted ---------------------------------------------------------------------------- Quantitative Growth & Equity Fund Equity Fund Income Fund Equity Index Fund Affirmative 16,948,076.561 24,782,542.507 11,168,131.293 6,384,135.018 Against 256,793.918 166,325.938 42,021.823 28,406.000 Abstain 69,408.895 26,830.000 186,851.179 52,948.986 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 17,274,279.374 24,975,698.445 11,397,004.295 6,465,490.004 Number of Shares Voted ---------------------------------------------------------------------------- Emerging Markets Personal Blue Chip Fund Equity Fund Value Fund New Horizons Fund Affirmative 10,857,514.619 32,917,607.025 276,975.396 214,501.821 Against 18,492.281 41,433.000 - 82.000 Abstain 6,318.723 1,543.522 649.000 - ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 10,882,325.623 32,960,583.547 277,624.396 214,583.821 Number of Shares Voted ---------------------------------------------------------------------------- International Fixed Income Intermediate Fixed Equity Fund Balanced Fund Fund Income Fund Affirmative 1,053,714.000 25,800,892.923 45,495,802.862 10,344,360.832 Against 4,331.000 172,095.133 127,330.056 49,284.000 Abstain 4,037.000 96,539.230 28,686.258 12,248.579 Broker Non-votes 2,988.000 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 1,062,082.000 26,069,527.286 45,654,807.176 10,405,893.411 Number of Shares Voted -------------------------------------- Short-Term Fixed Income Fund Affirmative 2,209,776.915 Against 63,560.910 Abstain 18,800.177 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 2,292,138.002 3. To consider and act upon the Investment Sub-Advisory Agreement for each of the following Funds between EIMC and Tattersall Advisory Group, Inc. Number of Shares Voted ---------------------------------------------------------------------------- Intermediate Fixed Income Fixed Income Short-Term Fixed Balanced Fund Fund Fund Income Fund Affirmative 25,776,874.923 45,477,171.949 10,343,193.997 2,209,686.915 Against 162,203.972 120,708.329 50,143.000 63,650.910 Abstain 130,448.391 53,938.898 12,556.414 18,800.177 Broker Non-votes 0 2,988.000 0 0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 26,069,527.286 45,654,807.176 10,405,893.411 2,292,138.002 4. To consider and vote upon such other matters as may properly come before said meeting and any adjournments thereof. Number of Shares Voted ---------------------------------------------------------------------------- Quantitative Growth & Equity Fund Equity Fund Income Fund Equity Index Fund Affirmative 16,945,536.135 24,754,276.507 11,140,651.866 6,137,156.018 Against 234,204.444 136,365.000 36,897.966 265,148.000 Abstain 94,538.795 85,056.938 219,454.463 63,185.986 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 17,274,279.374 24,975,698.445 11,397,004.295 6,465,490.004 Number of Shares Voted ---------------------------------------------------------------------------- Emerging Markets Personal Blue Chip Fund Equity Fund Value Fund New Horizons Fund Affirmative 10,855,074.471 32,897,024.025 276,975.396 214,501.821 Against 16,317.606 41,433.000 0 82.000 Abstain 10,933.546 22,126.522 649.000 0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 10,882,325.623 32,960,583.547 277,624.396 214,583.821 Number of Shares Voted ---------------------------------------------------------------------------- International Fixed Income Intermediate Fixed Equity Fund Balanced Fund Fund Income Fund Affirmative 1,053,200.000 8,404,500.690 3,203,239.822 639,532.436 Against 4,331.000 17,559,968.205 42,401,856.369 9,751,751.396 Abstain 4,551.000 105,058.391 49,710.985 14,609.579 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 1,062,082.000 26,069,527.286 45,654,807.176 10,405,893.411 Number of Shares Voted -------------------------------------- Short-Term Fixed Income Fund Affirmative 633,305.915 Against 1,640,031.910 Abstain 18,800.177 --------------------- --------------------- Total 2,292,138.002
BOARD OF TRUSTEES AND TRUST OFFICERS The following tables give information about each Board member and the senior officers of the Trusts. The tables separately list Board members who are "interested persons" of the Trusts (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). The Wachovia Fund Complex consists of 22 investment company portfolios. Unless otherwise noted, each Board member oversees all portfolios in the Wachovia Fund Complex; and serves for an indefinite term. Interested trustees background--term of office: indefinite Name Principal Occupation(s), Previous Positions and Other Birth Date Directorships Held Address Positions Held with Trust Date Service Began Charles S. Way, Principal Occupations and Previous Positions: Chairman and Jr.* CEO, The Beach Company and its various affiliated companies December 18, 1937 and partnerships; serves as Secretary of Commerce for the 211 King Street State of South Carolina. Suite 300 ----------------------------------------------------------- Charleston, SC Trustee Other Directorships Held: None Began serving: March 2000 * Reasons for Interested Status: Mr. Way is a shareholder of Wachovia Corporation. ------------------------------------------------------------------------------ Independent trustees background--term of office: indefinite Name Principal Occupation(s), Previous Positions and Other Birth Date Directorships Held Address Positions Held with Trust Date Service Began James A. Hanley Principal Occupations and Previous Positions: Retired; Vice August 13, 1931 President and Treasurer, Abbott Laboratories (health care 4272 Sanctuary Way products) (until 1992). Bonita Springs, FL ---------------------------------------------------------- Trustee Began serving: Other Directorships Held: None March 2000 Samuel E. Hudgins Principal Occupations and Previous Positions: Managing March 4, 1929 Partner, Pilot Partners, LLC (management consulting); 715 Whitemere Hudgins Consulting, LLC (independent consultant)(until Court, N.W. December 2000); President, Percival Hudgins & Company, LLC Atlanta, GA (investment bankers/financial consultants)(until September Trustee 1997); Director, Atlantic American Corporation (insurance Began serving: holding company). March 2000 ---------------------------------------------------------- Other Directorships Held: Director, Atlantic American Corporation (insurance holding company). D. Dean Kaylor Principal Occupations and Previous Positions: Retired; June 29, 1930 Executive Vice President and Chief Financial Officer, NBD 2835 Greenbriar Bank, N.A. and NBD Bancorp, Inc. (bank and bank holding Harbor Springs, MI company) (until 1990). Trustee ---------------------------------------------------------- Began serving: March 2000 Other Directorships Held: None Alvin J. Principal Occupations and Previous Positions: Director, Schexnider, Ph.D. Office of Health Policy Development, Wake Forest University May 26, 1945 School of Medicine (since February 2000); Chancellor, 3174 Turkey Hill Winston-Salem State University (1996 to January 2000); Road Formerly, Vice Provost, Virginia Commonwealth University Winston-Salem, NC (1987 to 1996). Trustee ---------------------------------------------------------- Began serving: March 2000 Other Directorships Held: None ------------------------------------------------------------------------------ Officers Name Principal Occupation(s) and Previous Positions Birth Date Address Positions Held with Trust John W. McGonigle Executive Vice President and Secretary of the Federated Fund October 26, 1938 Complex; Executive Vice President, Secretary and Director, Federated Investors Federated Investors, Inc.; Trustee, Federated Investment Tower Management Company and Federated Investment Counseling; 1001 Liberty Avenue Director, Federated Global Investment Management Corp, Pittsburgh, PA Federated Services Company and Federated Securities Corp. President and -------------------------------------------------------- Treasurer R. Edward Bowling Senior Vice President, Wachovia Bank, N.A; Manager, Product March 25, 1958 Development and Investment Solutions, Wachovia Fund Advisers. Wachovia Bank, N.A. -------------------------------------------------------- 100 North Main Winston-Salem, NC Vice President James Ostrowski Assistant Vice President, Federated Services Company. November 17, 1959 Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA Vice President and Assistant Treasurer Gail C. Jones Vice President and Corporate Counsel, Federated Services October 26, 1953 Company. Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA Secretary ------------------------------------------------------------------------------