April 5, 2004 — The STI Classic Fds Small Cap Value Equity/T Fund (SCETX) will close to new investors at the end of the month to keep its assets from growing to the point where they hurt its performance.

As a result of the closing, STI Classic Funds said it will waive all but the portion of the fund’s marketing and distribution, or 12b-1 fee, related to servicing shareholder accounts, thereby reducing the fee to 0.25%.

Closing the fund will “stabilize” its cash inflows and “ensure” that its “investment process and performance are not compromised” by its size, the company said. The fund had combined assets of about $742 million at the end of last month.

For the three years ended in February, the fund gained an average annualized 17.8%, versus 13.4% for its small-cap value peers. The portfolio is ranked 5 Stars by Standard & Poor’s.