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OMB APPROVAL
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5669
---------------------------------------------
Fifth Third Funds
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
----------------------------
Date of fiscal year end: 07/31/03
-----------------------
Date of reporting period: 07/31/03
-----------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to Rule
30e-1 under the Act (17 CFR 270.30e-1).
FIFTH THIRD FUNDS LOGO
STOCK AND BOND MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
-------------
JULY 31, 2003
NOTICE OF DELIVERY OF PROSPECTUSES,
SEMI-ANNUAL REPORTS AND ANNUAL REPORTS
In order to reduce expenses of the Fifth Third Funds incurred in connection with
the mailing of prospectuses, prospectus supplements, semi-annual reports and
annual reports to multiple shareholders at the same address, Fifth Third Funds
may in the future deliver one copy of a prospectus, prospectus supplement,
semi-annual report or annual report to a single investor sharing a street
address or post office box with other investors, provided that all such
investors have the same last name or are believed to be members of the same
family. If you share an address with another investor and wish to receive your
own prospectus, prospectus supplements, semi-annual reports and annual reports,
please call the Trust toll-free at 1-800-282-5706.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by a prospectus for the Funds, which contains facts
concerning the objectives and policies, management fees, expenses and other
information.
Fifth Third Asset Management Inc. serves as Investment Advisor to the Funds and
receives a fee for their services.
The Fifth Third Funds are distributed by Fifth Third Funds Distributor, Inc.
FIFTH THIRD FUNDS, LIKE ALL MUTUAL FUNDS:
O ARE NOT FDIC INSURED
O HAVE NO BANK GUARANTEE
O MAY LOSE VALUE
TABLE OF CONTENTS
Economic Outlook and
Commentary Section ................. 1
Management Discussion
of Fund Performance
Small Cap Growth Fund ................. 4
Mid Cap Growth Fund ................... 6
Large Cap Opportunity Fund ............ 8
Quality Growth Fund ................... 10
Large Cap Core Fund ................... 12
Equity Index Fund ..................... 14
Balanced Fund ......................... 16
Micro Cap Value Fund .................. 18
Small Cap Value Fund .................. 20
Multi Cap Value Fund .................. 22
Disciplined Large
Cap Value Fund ..................... 24
Fifth Third LifeModel
Aggressive FundSM .................. 26
Fifth Third LifeModel Moderately
Aggressive Fund SM ................. 28
Fifth Third LifeModel
Moderate Fund SM ................... 30
Fifth Third LifeModel Moderately
Conservative Fund SM ............... 32
Fifth Third LifeModel
Conservative Fund SM ............... 34
Strategic Income Fund ................. 36
Technology Fund ....................... 38
Worldwide Fund ........................ 40
International Equity Fund ............. 42
International GDP Fund ................ 44
Bond Fund ............................. 46
Intermediate Bond Fund ................ 48
Short Term Bond Fund .................. 50
U.S. Government Bond Fund ............. 52
Municipal Bond Fund ................... 54
Intermediate Municipal
Bond Fund .......................... 56
Ohio Municipal Bond Fund .............. 58
Michigan Municipal Bond Fund 60
Glossary of Terms ..................... 62
Schedules of Portfolio
Investments ........................ 65
Notes to Schedules
of Portfolio Investments ........... 120
Statements of Assets
and Liabilities .................... 126
Statements of
Operations ......................... 131
Statements of Changes
in Net Assets ...................... 136
Notes to Financial
Statements ......................... 152
Financial Highlights .................. 168
Notes to Financial
Highlights ......................... 192
Report of Independent
Auditors ........................... 194
Supplemental Information .............. 195
OUR MESSAGE TO YOU
FIFTH THIRD FUNDS LOGO
A TALE OF TWO MARKETS...
The fiscal year starting August 1, 2002 began with corporate scandal, concerns
about a lingering recession, increasing tensions with Iraq, falling consumer
confidence, plunging interest rates and a declining stock market. Stocks--as
measured by the S&P 500 Index1--fell 28% during the fiscal period ended July 31,
2002.
Almost all of those elements have changed during the past year. Stocks are
higher, bond yields are roughly unchanged from a year ago, consumer confidence
and economic activity is increasing, and Saddam Hussein is on the run.
Over the past 12-months ended July 31, 2003, the stock market (as measured by
the S&P 500 Index) experienced two lows in price--one on October 9, 2002 at
776.76 and another on March 11, 2003 at 800.73. The October low was slightly
lower, but both were equally nerve-wracking to investors. From mid-March, 2003
to the end of the recent fiscal year on July 31, the S&P 500 Index rose 23%,
leaving the benchmark index with a return of 10.64% for the fiscal year ended
July 31, 2003.
Bond investors also experienced heightened volatility during the fiscal year.
Bond yields moved to 45-year lows in mid-June, 2003. Since that time, however,
bond yields (as measured by the 10-year Treasury Note) have rebounded to show
almost no change for the 12-months through July 2003. The yield on the 10-year
Treasury started the fiscal year at 4.46% and ended the fiscal year at 4.41%.
The main bond benchmark index--the Lehman Brothers Aggregate Bond
Index1--returned 5.42% over the recent 12-month period.
U.S. economic activity, geopolitical events, investors' renewed sense of trust
and tax cuts all had a hand in bringing the stock market back to positive
returns for the fiscal year, and bringing bond yields back from
multi-generational lows in yield. A very potent mix of fiscal stimulus (via tax
cuts) and monetary stimulus (via growth in the money supply) currently supports
increased economic activity. This in turn is pushing corporate profits and bond
yields higher.
DISCIPLINE PAYS OFF FOR INVESTORS
Investing during the past 12-months required patience, discipline and clear-
headed decision-making. Looking back at pre-war conditions it took courage to
1PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
(Image S & P 500 STOCK INDEX CLOSING VALUES GRAPH)
THE ABOVE GRAPH REPRESENTS THE CLOSING VALUES OF THE STANDARD & POOR'S 500 STOCK
INDEX FOR THE TIME PERIODS INDICATED. SOURCE - BLOOMBERG.
1
be fully invested in a diversified stock portfolio in March 2003, however, that
strategy resulted in successful investment returns.
The financial markets reacted to changing financial conditions in a more
predictable way during this fiscal year than they did in the previous fiscal
year.
O WHEN CORPORATE EARNINGS SHOWED POSITIVE YEAR-OVER-YEAR GROWTH FOR THE QUARTER
ENDED SEPTEMBER 30, 2002, THE S&P 500 INDEX BOTTOMED OUT AND STARTED MOVING
HIGHER.
O WHEN THE UNCERTAINTY ABOUT THE IRAQI WAR BEGAN TO APPROACH IN EARLY 2003,
STOCKS AGAIN FADED.
O WHEN THE OUTCOME OF THE IRAQI WAR BECAME MORE CERTAIN, CORPORATE EARNINGS
KEPT MOVING HIGHER AND CONSUMER CONFIDENCE BEGAN TO TURN POSITIVE, STOCKS
MOVED SHARPLY HIGHER.
Our managers had the discipline to be cautious during the first half of this
fiscal year, and were sufficiently opportunistic during the second half to
attempt to offer strong performance. Our mutual fund family grew by $1.8 billion
during the fiscal year. We appreciate the continued confidence of our customers,
and we will continue to work everyday to monitor financial markets to attempt to
identify risks and opportunities on behalf of our shareholders.
The Fifth Third Funds family now offers a broader array of investment choices,
encompassing multiple investment styles. These investments are designed to meet
the needs of our expanding customer base, helping them to structure diversified
portfolios that offer exposure to stocks, bond, cash and alternative investment
vehicles. We believe that diversified portfolios provide investors with the best
opportunity to build wealth over time with a reasonable level of risk.
Thank you for your continued confidence in the Fifth Third Funds.
Sincerely,
/S/ Keith Wirtz, CFA
Keith Wirtz, CFA
Chief Investment Officer
Fifth Third Asset Management Inc.
/S/ John Augustine, CFA
John Augustine, CFA
Director of Investment Strategy
Fifth Third Asset Management Inc.
2
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3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND+
AN INTERVIEW WITH
JOHN F. CLANCY, PORTFOLIO MANAGER
Q. FOR THE 12-MONTH PERIOD ENDED JULY 31, 2003 THE FUND LAGGED ITS BENCHMARK,
THE RUSSELL 2000(R) GROWTH INDEX. HOW DID YOU MANAGE THE FUND, AND WHAT FACTORS
AFFECTED ITS PERFORMANCE?
A. The Fund's returns suffered through mid-March from generally poor returns by
small-cap growth stocks. Such shares rebounded sharply during the spring,
helping the Fund post gains for the 12-month period ended July 31, 2003.
Small-cap growth stocks outperformed all other domestic size and style groups
during the period as a whole.
Beginning in September 2002, we shifted assets into shares of high-quality
technology and health care firms. That strategy helped the Fund outperform the
benchmark during the first three months of 2003, as investors favored the
relative stability of higher-quality stocks. However, those types of stocks
lagged the index during the stock-market rebound, as investors prized
higher-risk, lower-quality shares, resulting in the Fund trailing its benchmark
during the 12-month period ended July 31, 2003.
+SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Omnivision Technologies, Inc. ......... 1.43%
Kronos, Inc. .......................... 1.34%
Biosite, Inc. ......................... 1.31%
Cooper Cos., Inc. ..................... 1.27%
Zoran Corp. ........................... 1.25%
Silicon Laboratories, Inc. ............ 1.25%
Pharmaceutical Resources, Inc. ........ 1.24%
ITT Educational Services, Inc. ........ 1.19%
Foundry Networks, Inc. ................ 1.14%
United Online, Inc. ................... 1.03%
PORTFOLIO COMPOSITION
(PIE CHART)
COMMON STOCKS 85.9%
U.S. TREASURY OBLIGATIONS 0.4%
COLLATERAL FOR SECURITIES LENDING 12.5%
INVESTMENT COMPANIES 0.5%
MONEY MARKETS 0.7%
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LIPPER SMALL CAP
INSTITUTIONAL RUSSELL 2000 (R) CORE FUNDS
SHARES GROWTH INDEX AVERAGE
7/93 $10000.00 $10479.00 $10410.00
7/94 10776.00 10128.00 10418.00
7/95 12702.00 13548.00 12866.00
7/96 14052.00 13958.00 14171.00
7/97 19470.00 17483.00 19236.00
7/98 19655.00 17253.00 19644.00
7/99 21187.00 19756.00 20326.00
7/00 25125.00 23931.00 23979.00
7/01 23064.00 18353.00 24767.00
7/02 18267.00 12735.00 21178.00
7/03 21200.00 16297.00 25115.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 16.06% 1.52% 7.80% $ 21,200
------ ------ ------- -------------
Class A Shares* 9.98% 0.22% 7.00% $ 19,671
------ ------ ------- -------------
Class B Shares** 9.86% 0.12% 6.73% $ 19,174
------ ------ ------- -------------
Class C Shares*** 14.94% 0.50% 6.73% $ 19,187
------ ------ ------- -------------
Advisor Shares 15.47% 0.99% 7.26% $ 20,158
------ ------ ------- -------------
Russell 2000(R)
Growth Index2 27.97% -1.13% 5.01% $ 16,297
------ ------ ------- -------------
Lipper Small-Cap Core
Funds Average2 19.49% 5.45% 9.01% $ 25,115
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 2000(R) GROWTH INDEX AND THE
LIPPER SMALL-CAP CORE FUNDS AVERAGE. THE RUSSELL 2000(R) GROWTH INDEX TRACKS THE
PERFORMANCE OF COMMON STOCKS FOUND IN THE RUSSELL 2000(R) UNIVERSE WITH HIGHER
FORECASTED GROWTH VALUES. THE LIPPER SMALL-CAP CORE FUNDS AVERAGE IS THE AVERAGE
OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER,
INC. FALLING INTO THIS CATEGORY. THE RUSSELL INDEX IS UNMANAGED AND DOES NOT
REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT
MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER SMALL-CAP CORE FUNDS
AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE
VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH
THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER, 29, 2001, THE QUOTED PERFORMANCE OF THE SMALL
CAP GROWTH FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT SMALL
COMPANY GROWTH FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2,
1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR CLASS A SHARES
REFLECTS THE PERFORMANCE OF THE KENT SMALL COMPANY GROWTH INVESTMENT SHARES,
WITH AN INCEPTION DATE OF DECEMBER 4, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE.
THE INCEPTION DATE FOR CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001.
THE QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS THE
PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. ON OCTOBER 29,
2001, THE KENT SMALL COMPANY GROWTH FUND BECAME THE FIFTH THIRD SMALL CAP GROWTH
FUND. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR
REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS
NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
AN INTERVIEW WITH
STEVEN E. FOLKER, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK INDEX, THE RUSSELL MIDCAP(R) GROWTH
INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW WAS THE FUND MANAGED, AND
WHAT CONTRIBUTED TO THAT UNDERPERFORMANCE DURING THE PERIOD?
A. Early in the 12-month period ended July 31, 2003 the Fund was positioned
relatively conservatively among higher-quality mid-cap stocks. Such shares
trailed lower-quality stocks, which benefited from investors' optimism about
the improving economy. The Fund's relative performance was hurt by its
overweight position in financial stocks, which modestly underperformed the
benchmark as interest rates rebounded late in the period. The best-performing
sectors during the period included materials, telecommunications and utilities.
We had little exposure to these sectors, where many companies seemed to offer
insufficient growth potential and weak balance sheets.
The Fund's relative performance benefited from a more aggressive positioning of
the portfolio as the period progressed. In particular, we added shares of
technology and health care firms with higher growth prospects, and such shares
performed well.
The Fund's absolute performance benefited from strong stock market performance.
Those market gains resulted from improving economic data and corporate earnings,
as well as the resolution of investor uncertainty regarding the likelihood of
war in Iraq.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
T. Rowe Price Group, Inc. ............. 4.34%
Microchip Technology, Inc. ............ 4.14%
Analog Devices, Inc. .................. 3.86%
BEA Systems, Inc. ..................... 3.52%
Fiserv, Inc. .......................... 3.29%
Forest Laboratories, Inc. ............. 2.85%
Chico's Fas, Inc. ..................... 2.77%
Integrated Circuit Systems, Inc. ...... 2.66%
Biomet, Inc. .......................... 2.58%
Varco International, Inc. ............. 2.46%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 83.9%
Collateral for Securities Lending 13.5%
Money Markets 2.6%
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
Mountain Chart
RUSSELL MIDCAP (R) LIPPER MID-CAP
INSTITUTIONAL SHARES GROWTH INDEX GROWTH FUNDS AVERAGE
7/93 $10000.00 $10581.00 $10555.00
7/94 10507.00 10524.00 10270.00
7/95 13180.00 13761.00 13907.00
7/96 13347.00 14758.00 15008.00
7/97 19642.00 20616.00 19580.00
7/98 20759.00 22334.00 21046.00
7/99 22354.00 27179.00 24613.00
7/00 29205.00 39073.00 36989.00
7/01 26303.00 26643.00 26270.00
7/02 18408.00 19001.00 18806.00
7/03 21607.00 23400.00 21784.00
AVERAGE ANNUAL TOTAL RETURN 1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 17.38% 0.80% 8.01% $ 21,607
------ ------ ------- -------------
Class A Shares* 11.19% -0.53% 7.29% $ 20,212
------ ------ ------- -------------
Class B Shares** 11.13% -0.62% 6.87% $ 19,426
------ ------ ------- -------------
Class C Shares*** 15.99% -0.20% 7.02% $ 19,704
------ ------ ------- -------------
Advisor Shares 16.75% 0.26% 7.58% $ 20,773
------ ------ ------- -------------
Russell MidCap(R)
Growth Index2 23.15% 0.94% 8.87% $ 23,400
------ ------ ------- -------------
Lipper Mid-Cap Growth
Funds Average2 15.98% 1.01% 7.44% $ 21,784
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL MIDCAP(R) GROWTH INDEX AND
THE LIPPER MID-CAP GROWTH FUNDS AVERAGE. THE RUSSELL INDEX MEASURES THE
PERFORMANCE OF THOSE RUSSELL MIDCAP(R) COMPANIES WITH HIGHER PRICE-TO-BOOK
RATIOS AND HIGHER FORECASTED GROWTH VALUES. THE STOCKS ARE ALSO MEMBERS OF THE
RUSSELL 1000(R) GROWTH INDEX. THE LIPPER MID-CAP GROWTH FUNDS AVERAGE IS THE
AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY
LIPPER, INC., FALLING INTO THIS CATEGORY. THE RUSSELL MIDCAP(R) GROWTH INDEX
DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER MID-CAP
GROWTH FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES
FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX,
ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES
OF THE MID CAP GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 24, 1996
AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE
REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP OPPORTUNITY FUND
AN INTERVIEW WITH
STEVEN E. FOLKER, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARKS, THE RUSSELL 1000(R) GROWTH INDEX AND
THE RUSSELL 1000(R) INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW WAS
THE FUND MANAGED, AND WHAT CONTRIBUTED TO THAT UNDERPERFORMANCE DURING THE
PERIOD?
A. We positioned the Fund conservatively during much of the 12-month period
ended July 31, 2003 because we were concerned about the strength of the
economic recovery. As the period progressed, we positioned the Fund to take
advantage of a recovery in the economy and in corporate earnings. We favored
shares of high-quality large-cap companies, which under-performed lower-quality
stocks during the period.
We held an overweight position in consumer staples stocks, which do not benefit
from economic recovery as much as other sectors. We eventually reduced that
stake to a neutral position relative to the Fund's benchmark, but our exposure
to consumer staples stocks put a damper on performance. The Fund was hurt by
its overweight position in financial services stocks. We believed such stocks
offered attractive valuations and solid earnings growth, but the sector
declined as interest rates rebounded late in the period. The Fund's underweight
position in consumer discretionary stocks also hurt relative performance, as
such stocks performed well during the period.
The Fund's relative performance benefited from its exposure to the technology
sector. Early in the period the Fund's technology exposure was positioned too
conservatively to fully participate in the strong gains in that sector, however
we increased that stake to an overweight position by the end of the period.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Microsoft Corp. ....................... 4.52%
Marsh & McLennan Cos., Inc. ........... 3.77%
Goldman Sachs Group, Inc. ............. 3.62%
Hewlett-Packard Co. ................... 3.36%
Unitedhealth Group, Inc. .............. 3.25%
Amgen, Inc. ........................... 3.22%
Wells Fargo Co. ....................... 3.20%
Nextel Communications, Inc. ........... 3.06%
AutoZone, Inc. ........................ 3.06%
Clear Channel Communications, Inc. .... 3.04%
PORTFOLIO COMPOSITION
(Pie Chart)
Collateral for Securities Lending 3.8%
Common Stocks 92.7%
Money Markets 3.5%
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP OPPORTUNITY FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL RUSSELL 1000 (R) RUSSELL 1000 (R) LIPPER MULTI-CAP CORE
SHARES GROWTH INDEX INDEX FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10000.00 $10000.00
7/94 10035.00 10502.00 10431.00 10545.00
7/95 12466.00 13804.00 13159.00 13045.00
7/96 15278.00 15946.00 15231.00 14367.00
7/97 22208.00 24214.00 22898.00 20478.00
7/98 27363.00 29037.00 27217.00 22718.00
7/99 32134.00 36018.00 32563.00 26545.00
7/00 33443.00 44799.00 36085.00 30839.00
7/01 22987.00 29092.00 30781.00 28809.00
7/02 16299.00 20728.00 23730.00 22945.00
7/03 16398.00 23141.00 26386.00 25808.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 0.61% -9.73% 5.07% $ 16,398
------ ------ ------- -------------
Class A Shares* -4.68% -10.88% 4.40% $ 15,386
------ ------ ------- -------------
Class B Shares** -5.43% -10.88% 4.09% $ 14,926
------ ------ ------- -------------
Class C Shares*** -0.40% -10.55% 4.09% $ 14,926
------ ------ ------- -------------
Russell 1000(R)
Growth Index2 11.64% -4.44% 8.75% $ 23,141
------ ------ ------- -------------
Russell 1000(R) Index2 11.19% -0.62% 10.19% $ 26,386
------ ------ ------- -------------
Lipper Multi-Cap
Core Funds Average2 11.04% 0.81% 9.01% $ 25,808
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 1000(R) GROWTH INDEX, THE
RUSSELL 1000(R) INDEX AND THE LIPPER MULTI-CAP CORE FUNDS AVERAGE. THE RUSSELL
1000(R) GROWTH INDEX MEASURES THE PERFORMANCE OF THE 1,000 SECURITIES FOUND IN
THE RUSSELL UNIVERSE WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED
GROWTH VALUES. THE RUSSELL 1000(R) INDEX MEASURES THE PERFORMANCE OF THE 1,000
LARGEST COMPANIES IN THE RUSSELL 3000(R) INDEX, WHICH REPRESENT APPROXIMATELY
92% OF THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000(R) INDEX. THE LIPPER
MULTI-CAP CORE FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL
OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC., FALLING INTO THIS CATEGORY. THE
RUSSELL INDICES ARE UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF FEES
ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING
FEES. HOWEVER, THE LIPPER MULTI-CAP CORE FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES. THE FUND HAS CHANGED ITS STANDARDIZED
BENCHMARK FROM THE RUSSELL 1000(R) GROWTH INDEX TO THE RUSSELL 1000(R) INDEX TO
PROVIDE A MORE APPROPRIATE MARKET COMPARISON FOR THE FUND'S PERFORMANCE.
1 FOR THE PERIOD PRIOR TO MARCH 6, 1998 THE QUOTED PERFORMANCE OF THE FUND
REFLECTS THE PERFORMANCE OF THE CLASS A SHARES OF THE PINNACLE FUND. ON MARCH 6,
1998, THE PINNACLE FUND, A REGISTERED OPEN-END INVESTMENT COMPANY MANAGED BY
HEARTLAND CAPITAL MANAGEMENT, INC., WAS MERGED INTO THE FIFTH THIRD LARGE CAP
OPPORTUNITY FUND (FORMERLY THE FIFTH THIRD PINNACLE FUND). THE INCEPTION DATES
FOR THE INSTITUTIONAL, CLASS B AND CLASS C SHARES OF THE FUND ARE AUGUST 11,
1998, OCTOBER 11, 2000 AND MARCH 9, 1998, RESPECTIVELY. PRIOR TO SUCH DATES,
QUOTED PERFORMANCE REFLECT THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT
EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
AN INTERVIEW WITH
STEVEN E. FOLKER, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARKS, THE S&P 500 INDEX AND THE RUSSELL
1000(R) GROWTH INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003. HOW WAS
THE FUND MANAGED DURING THE PERIOD, AND WHAT CONTRIBUTED TO THAT
UNDER-PERFORMANCE?
A. The Fund's portfolio was positioned among high-quality large-cap growth
stocks. This positioning hurt the Fund's relative performance somewhat as such
shares lagged stocks of lower-quality firms. For example, the Fund was
underweight in both telecommunications and materials stocks, which both
performed well. The Fund had a neutral weighting in the industrial sector,
which underperformed. Industrial companies have been slower in coming back than
other areas of the economy.
The Fund benefited from its overweight positioning in the technology and
consumer discretionary sectors. Those areas benefited from stronger earnings and
from an improving economy and stock market. We began the period with an
overweight position in financial services stocks, which performed well as
interest rates fell. We reduced that position during the period to a neutral
weighting relative to the Fund's benchmark. We believe that helped performance
as interest rates bottomed out and began to rise late in the 12-month period
ended July 31, 2003.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Cisco Systems, Inc. ................... 5.31%
Intel Corp. ........................... 5.08%
Amgen, Inc. ........................... 4.98%
Microsoft Corp. ....................... 4.48%
Mellon Financial Corp. ................ 4.24%
Target Corp. .......................... 4.08%
Bank of New York Co., Inc. ............ 3.64%
Home Depot, Inc. ...................... 3.20%
Marsh & McLennan Cos., Inc. ........... 3.20%
Analog Devices, Inc. .................. 3.01%
PORTFOLIO COMPOSITION
(Pie Chart)
Collateral for Securities Lending 2.3%
Common Stocks 97.0%
Money Markets 0.7%
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL RUSSELL 1000 (R) LIPPER LARGE-CAP CORE
SHARES GROWTH INDEX S&P 500 INDEX FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10379.00 $10378.00
7/94 10318.00 10502.00 10515.00 10514.00
7/95 12712.00 13804.00 13256.00 12978.00
7/96 14325.00 15946.00 15451.00 14650.00
7/97 22058.00 24214.00 23502.00 21464.00
7/98 25174.00 29037.00 28039.00 24801.00
7/99 31920.00 36018.00 33704.00 29331.00
7/00 37607.00 44799.00 36726.00 32977.00
7/01 30112.00 29092.00 31466.00 27440.00
7/02 21710.00 20728.00 24035.00 20858.00
7/03 23932.00 23141.00 26592.00 22555.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 10.23% -1.01% 9.12% $ 23,932
------ ------ ------- -------------
Class A Shares* 4.46% -2.26% 8.43% $ 22,464
------ ------ ------- -------------
Class B Shares** 4.13% -2.39% 7.98% $ 21,545
------ ------ ------- -------------
Class C Shares*** 9.12% -1.90% 8.21% $ 22,023
------ ------ ------- -------------
Advisor Shares 9.65% -1.49% 8.71% $ 23,061
------ ------ ------- -------------
Russell 1000(R)
Growth Index2 11.64% -4.44% 8.75% $ 23,141
------ ------ ------- -------------
S&P 500 Index2 10.64% -1.05% 10.27% $ 26,592
------ ------ ------- -------------
Lipper Large-Cap Core
Funds Average2 8.19% -2.18% 8.29% $ 22,555
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE S&P 500 INDEX, THE RUSSELL 1000(R)
GROWTH INDEX AND THE LIPPER LARGE-CAP CORE FUNDS AVERAGE. THE S&P 500 INDEX
MEASURES THE PERFORMANCE OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED
ON THE NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A
WHOLE. THE RUSSELL 1000(R) GROWTH INDEX MEASURES THE PERFORMANCE OF 1,000
SECURITIES FOUND IN THE RUSSELL UNIVERSE WITH HIGHER PRICE-TO-BOOK RATIOS AND
HIGHER FORECASTED GROWTH VALUES. THE LIPPER LARGE-CAP CORE FUNDS AVERAGE IS THE
AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY
LIPPER, INC. FALLING INTO THIS CATEGORY. THE S&P 500 INDEX AND THE RUSSELL
1000(R) GROWTH INDEX ARE UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF FEES
ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING
FEES. HOWEVER, THE LIPPER LARGE-CAP CORE FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES
OF THE QUALITY GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996
AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE
REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
AN INTERVIEW WITH
ALLAN J. MEYERS, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARKS, THE RUSSELL 1000(R) INDEX AND THE
S&P 500 INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW WAS THE FUND
MANAGED DURING THE PERIOD, AND WHAT CONTRIBUTED TO THAT UNDERPERFORMANCE?
A. We maintained a disciplined strategy of investing in high-quality stocks of
the larger companies in the Fund's benchmarks. Large, high-quality companies'
stocks did not keep pace with shares of lower-quality smaller companies in the
Fund's benchmark index. The Fund's energy holdings put a damper on performance
for the 12-month period ended July 31 2003. Energy stocks suffered losses late
in the period as investors became concerned that falling oil prices would hurt
the industry's profit outlook.
The Fund was overweighted in the energy sector, and intends to maintain this
overweight position as long as the earnings estimates for the group continue to
improve. The Fund's modest overweight position in consumer staples stocks also
helped performance early in the period. We then reduced this position to a
modest underweight, and boosted exposure to the technology sector. The Fund
benefited from its overweight positions in the health care and information
technology sector.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Pfizer, Inc. .......................... 2.87%
General Electric Corp. ................ 2.78%
Citigroup, Inc. ....................... 2.64%
Exxon Mobil Corp. ..................... 2.62%
Microsoft Corp. ....................... 2.51%
Johnson & Johnson ..................... 1.98%
Intel Corp. ........................... 1.90%
Cisco Systems, Inc. ................... 1.63%
American International Group, Inc. .... 1.60%
Wal-Mart Stores, Inc. ................. 1.53%
PORTFOLIO COMPOSITION
(Pie Chart)
Collateral for Securities Lending 0.4%
Common Stocks 98.6%
Money Markets 1.0%
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
GROWTH OF A $10,000 INVESTMENT
Mountain Chart
INSTITUTIONAL RUSSELL 1000 (R) LIPPER LARGE-CAP CORE
SHARES INDEX S&P 500 INDEX FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10379.00 $10000.00
7/94 10315.00 10431.00 10515.00 10514.00
7/95 12735.00 13159.00 13256.00 12978.00
7/96 14873.00 15231.00 15451.00 14650.00
7/97 20798.00 22898.00 23502.00 21464.00
7/98 24341.00 27216.00 28039.00 24801.00
7/99 29134.00 32562.00 33704.00 29331.00
7/00 30932.00 35084.00 36726.00 32977.00
7/01 26140.00 30781.00 31466.00 27440.00
7/02 19848.00 23730.00 24035.00 20858.00
7/03 21196.00 26386.00 26592.00 22555.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 6.79% -2.73% 7.80% $ 21,196
------ ------ ------- -------------
Class A Shares* 1.26% -3.95% 7.02% $ 19,701
------ ------ ------- -------------
Class B Shares** 0.90% -4.06% 6.72% $ 19,157
------ ------ ------- -------------
Class C Shares*** 5.72% -3.71% 6.72% $ 19,170
------ ------ ------- -------------
Russell 1000(R) Index2 11.19% -0.62% 10.19% $ 26,386
------ ------ ------- -------------
S&P 500 Index2 10.64% -1.05% 10.27% $ 26,592
------ ------ ------- -------------
Lipper Large-Cap Core
Funds Average2 8.19% -2.18% 8.29% $ 22,555
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE S&P 500 INDEX, THE RUSSELL 1000(R)
INDEX AND THE LIPPER LARGE-CAP CORE FUNDS AVERAGE. THE S&P 500 INDEX MEASURES
THE PERFORMANCE OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED ON THE
NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A WHOLE.
THE RUSSELL 1000(R) INDEX MEASURES THE PERFORMANCE OF THE 1,000 LARGEST
COMPANIES IN THE RUSSELL 3000(R) INDEX, WHICH REPRESENT APPROXIMATELY 92% OF THE
TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000(R) INDEX. THE LIPPER LARGE-CAP
CORE FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE
MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE S&P 500
INDEX AND THE RUSSELL 1000(R) INDEX ARE UNMANAGED AND DO NOT REFLECT THE
DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT
AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER LARGE CAP-CORE FUNDS AVERAGE AND
THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED
SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST
IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE LARGE
CAP CORE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT GROWTH
AND INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992.
PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES
REFLECTS PERFORMANCE OF THE KENT GROWTH AND INCOME FUND INVESTMENT SHARES, WITH
AN INCEPTION DATE OF DECEMBER 1, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE
INCEPTION DATE OF CLASS B AND CLASS C SHARES IS OCTOBER 29, 2001. THE QUOTED
PERFORMANCE OF CLASS B AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. ON OCTOBER 29, 2001, THE KENT GROWTH AND
INCOME FUND BECAME THE FIFTH THIRD LARGE CAP CORE FUND (FORMERLY NAMED THE FIFTH
THIRD LARGE CAP VALUE FUND). DURING THE PERIOD SHOWN, THE ADVISOR AND/OR
AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS
AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
AN INTERVIEW WITH
BRIAN J. SMOLINSKI, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE S&P 500 INDEX, DURING THE
12-MONTH PERIOD ENDED JULY 31, 2003. HOW DID YOU MANAGE THE FUND DURING THE
PERIOD, AND WHAT CONTRIBUTED TO THE FUND'S UNDERPERFORMANCE?
A. The Fund, which seeks to match the returns of the S&P 500 Index, lagged the
index by a small margin during the 12-month period ended July 31, 2003. The
Fund closely follows its benchmark index. The index during a typical 12-month
period has approximately 28 additions and deletions, although the 12 months
ended July 31, 2003 saw only 10 additions and deletions to the Index. The
Fund's absolute returns during the period benefited from a rebound in the stock
market late in the period. Uncertainty about the possibility of a U.S. war with
Iraq caused stocks to fall during the first quarter of 2003, but the markets
rebounded significantly following the decision to attack Iraq. We believe the
resolution of the war, as well as improving economic data and Bush's proposed
tax cut helped to bolster the markets and boost the Fund's return.1
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
General Electric Corp. ................ 3.04%
Microsoft Corp. ....................... 3.03%
Pfizer, Inc. .......................... 2.84%
Wal-Mart Stores, Inc. ................. 2.62%
Exxon Mobil Corp. ..................... 2.55%
Citigroup, Inc. ....................... 2.47%
American International Group, Inc. .... 1.79%
Intel Corp. ........................... 1.74%
Johnson & Johnson ..................... 1.64%
IBM Corp. ............................. 1.50%
PORTFOLIO COMPOSITION
(Pie Chart)
Collateral for Securities Lending 2.1%
Common Stocks 95.6%
Money Markets 2.3%
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LIPPER S&P 500
Institutional Shares S&P 500 Index Index Objective Funds Average
7/93 $10000.00 $10379.00 $10000.00
7/94 10459.00 10515.00 10474.00
7/95 13075.00 13256.00 13148.00
7/96 15153.00 15451.00 15266.00
7/97 22870.00 23502.00 23108.00
7/98 27185.00 28039.00 27465.00
7/99 32611.00 33704.00 32920.00
7/00 35383.00 36726.00 35756.00
7/01 30229.00 31466.00 30549.00
7/02 23028.00 24035.00 23254.00
7/03 25381.00 26592.00 25637.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- --------------
Institutional Shares 10.22% -1.36% 9.76% $25,381
------ ------ ------- --------------
Class A Shares* 4.43% -2.62% 8.93% $23,525
------ ------ ------- --------------
Class B Shares** 4.14% -2.73% 8.72% $23,070
------ ------ ------- --------------
Class C Shares*** 9.14% -2.35% 8.72% $23,076
------ ------ ------- --------------
Advisor Shares 9.68% -1.84% 9.28% $24,279
------ ------ ------- --------------
S&P 500 Index2 10.64% -1.05% 10.27% $26,592
------ ------ ------- --------------
Lipper S&P 500 Index Objective
Funds Average2 9.88% -1.57% 9.87% $25,637
------ ------ ------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE S&P 500 INDEX AND THE LIPPER S&P 500
INDEX OBJECTIVE FUNDS AVERAGE. THE S&P 500 INDEX MEASURES THE PERFORMANCE OF 500
SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE,
AND IS A MEASURE OF THE U.S. STOCK MARKET AS A WHOLE. THE LIPPER S&P 500 INDEX
OBJECTIVE FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF
THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE S&P
500 INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED
WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES.
HOWEVER, THE LIPPER S&P 500 INDEX OBJECTIVE FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE EQUITY
INDEX FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX
EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992.
PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES
REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INVESTMENT SHARES, WITH
AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE
INCEPTION DATE FOR THE CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001.
PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES
REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT
EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES.
ON OCTOBER 29, 2001, THE KENT INDEX EQUITY FUND BECAME THE FIFTH THIRD EQUITY
INDEX FUND. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR
REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS
NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
AN INTERVIEW WITH
JAMES E. RUSSELL AND JOHN L. CASSADY III, PORTFOLIO MANAGERS
Q. THE FUND SLIGHTLY UNDERPERFORMED ITS BENCHMARK INDEX, THE S&P 500 INDEX AND
OUTPERFORMED THE LEHMAN BROTHERS AGGREGATE BOND INDEX, FOR THE 12-MONTH PERIOD
ENDED JULY 31, 2003. HOW WAS THE FUND MANAGED, AND WHAT CONTRIBUTED TO THE
PERFORMANCE DURING THE PERIOD?
A. The equity portion of the Fund was hurt somewhat by its individual stock
selection in the financial services, information technology and industrial
sectors. The Fund benefited from its stock selection in several sectors,
including retail, biotechnology and utilities. The Fund's emphasis on
high-quality stocks hurt relative performance late in the period when
lower-quality small-company shares led a recovery in the stock market.
The fixed-income portion of the Fund's portfolio maintained a high average
credit quality. This approach hurt the Fund's relative performance as
historically low interest rates led bond investors to higher-yielding
lower-quality issues. The Fund's fixed-income portfolio during much of the
12-month period ended July 31, 2003 had a duration shorter than that of its
benchmark, the Lehman Brothers Aggregate Bond Index. This approach hurt the
Fund's relative performance as rates continued to fall. We extended duration
towards the end of the period, although, ultimately this move hampered the
Fund's performance as rates finally began to rise in mid-June.
The Fund's performance benefited from an overweight position among asset-backed
securities, which posted strong returns during the period. The Fund's
underweight position among agency bonds also benefited relative performance as
agency rates rose relative to Treasuries.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Pfizer, Inc. .......................... 2.45%
Wal-Mart Stores, Inc. ................. 2.24%
Microsoft Corp. ....................... 2.17%
Marsh & McLennan Cos., Inc. ........... 1.98%
Omnicom Group, Inc. ................... 1.93%
Fastenal Co. .......................... 1.84%
Mellon Financial Corp. ................ 1.82%
General Electric Corp. ................ 1.82%
Avery Dennison Corp. .................. 1.71%
Walgreen Co. .......................... 1.58%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 58.7%
Commercial Paper 3.9%
Corporate Bonds 12.5%
Collateral for Securities Lending 3.4%
U.S. Government Agencies 16.2%
U.S. Treasury Obligations 2.2%
Money Markets 3.1%
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL LEHMAN BROTHERS LIPPER BALANCED
SHARES S&P 500 INDEX AGGREGATE BOND INDEX FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10000.00 $10000.00
7/94 10204.00 10515.00 10009.00 10243.00
7/95 12180.00 13256.00 11021.00 11933.00
7/96 12974.00 15451.00 11632.00 13105.00
7/97 17965.00 23502.00 12884.00 17122.00
7/98 19476.00 28039.00 13897.00 18950.00
7/99 22299.00 33704.00 14243.00 21028.00
7/00 26447.00 36726.00 15093.00 22443.00
7/01 23370.00 31466.00 17009.00 22206.00
7/02 19552.00 24035.00 18290.00 19309.00
7/03 20713.00 26592.00 19281.00 21060.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------- ------- --------------
Institutional Shares 5.94% 1.24% 7.55% $ 20,713
------ ------- ------- --------------
Class A Shares* 0.30% -0.05% 6.87% $ 19,439
------ ------- ------- --------------
Class B Shares** -0.13% -0.16% 6.44% $ 18,660
------ ------- ------- --------------
Class C Shares*** 4.90% 0.36% 6.63% $ 18,998
------ ------- ------- --------------
Advisor Shares 5.39% 0.58% 6.94% $ 19,558
------ ------- ------- --------------
S&P 500 Index2 10.64% -1.05% 10.27% $ 26,592
------ ------- ------- --------------
Lehman Brothers
Aggregate Bond Index2 5.42% 6.77% 6.79% $ 19,281
------ ------- ------- --------------
Lipper Balanced
Funds Average2 8.21% 1.66% 7.57% $ 21,060
------ ------- ------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE S&P 500 INDEX, THE LEHMAN BROTHERS
AGGREGATE BOND INDEX AND THE LIPPER BALANCED FUNDS AVERAGE. THE S&P 500 INDEX
MEASURES THE PERFORMANCE OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED
ON THE NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A
WHOLE. THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS GENERALLY REPRESENTATIVE OF
THE BOND MARKET AS A WHOLE. THE LIPPER BALANCED FUNDS AVERAGE IS THE AVERAGE OF
THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC.
FALLING INTO THIS CATEGORY. THE S&P 500 INDEX AND THE LEHMAN BROTHERS AGGREGATE
BOND INDEX ARE UNMANAGED INDICES AND DO NOT REFLECT THE DEDUCTION OF FEES
ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING
FEES. HOWEVER, THE LIPPER BALANCED FUNDS AVERAGE AND THE FUND'S PERFORMANCE
REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT
INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN THE UNDERLYING
SECURITIES.
1 THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES
ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996 AND OCTOBER 29, 2001,
RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE
OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR
CLASS B, CLASS C AND ADVISOR SHARES.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND+
AN INTERVIEW WITH
DENIS J. AMATO, PORTFOLIO MANAGER
Q. THE FUND SIGNIFICANTLY OUTPERFORMED ITS BENCHMARK, THE RUSSELL 2000(R) VALUE
INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW DID YOU MANAGE THE FUND,
AND WHAT CONTRIBUTED TO ITS OUTPERFORMANCE?
A. The Fund benefited primarily from its strategy of investing in the stock
market's smallest companies. Small-cap and micro-cap stocks performed very well
during the period, as investors took note of such shares' relatively low
valuations. Small company shares also benefited from the fact that such firms
have avoided the major accounting scandals that have plagued the large-cap
sector in recent years.
The Fund also benefited by investing in companies with solid balance sheets and
significantly lower debt-to-capital ratios than the overall market. Such
companies' shares were appealing to investors in search of stability in the
financial markets. A number of the Fund's information technology holdings
performed well. Investors recognized that their valuations had declined to very
attractive levels, and began to anticipate increased corporate spending on
technology. In addition, a number of the Fund's holdings were acquired at a
premium by other companies.
The Fund held an underweight position in the financial sector during the
12-month period ended July 31, 2003, which slightly reduced the Fund's
performance relative to its benchmark. Many financial companies and their shares
benefited from falling rates during much of the period--and a late rebound in
rates did not fully reverse those gains. The Fund's cash holdings equaled
roughly 14% of the portfolio for much of the period, as significant market
advances made it more difficult to find investments that met our value criteria.
That cash position also hurt performance as yields on cash remained at very low
levels.++
+MICRO CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Symmetricom, Inc. ..................... 2.41%
Comstock Resources, Inc. .............. 2.14%
Sonicwall, Inc. ....................... 1.79%
Hologic, Inc. ......................... 1.62%
KVH Industries, Inc. .................. 1.60%
Bombay Co., Inc. ...................... 1.60%
Rocky Shoes & Boots, Inc. ............. 1.60%
Sea Containers, Ltd. .................. 1.55%
BKF Capital Group ..................... 1.54%
Pharmacopeia, Inc. .................... 1.52%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 84.0%
Preferred Stocks 2.2%
Repurchase Agreements 12.0%
Investment Companies 1.8%
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL RUSSELL 2000 (R) LIPPER SMALL-CAP
SHARES VALUE INDEX VALUE FUNDS AVERAGE
2/1/98 $10000.00 $10000.00 $10000.00
7/98 9800.00 9803.00 9787.00
7/99 12151.00 9790.00 9996.00
7/00 12415.00 10265.00 10538.00
7/01 14370.00 12703.00 13257.00
7/02 13990.00 12004.00 12408.00
7/03 19622.00 14239.00 14507.00
AVERAGE ANNUAL TOTAL RETURN1
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 3
---------- -------- ------- ---------- --------
Institutional Shares 2/1/98 40.26% 14.90% 13.06% $19,622
---------- -------- ------- ---------- --------
Class A Shares* 2/1/98 32.81% 13.58% 11.90% $18,547
---------- -------- ------- ---------- --------
Class B Shares** 2/1/98 33.70% 13.70% 11.99% $18,631
---------- -------- ------- ---------- --------
Class C Shares*** 2/1/98 38.70% 14.28% 12.46% $19,064
---------- -------- ------- ---------- --------
Advisor Shares 2/1/98 39.60% 14.50% 12.66% $19,243
---------- -------- ------- ---------- --------
Russell 2000(R)
Value Index2 18.62% 7.75% 6.64% $14,239
---------- -------- ------- ---------- --------
Lipper Small-Cap
Value Funds Average 2 16.92% 8.17% 6.65% $14,507
---------- -------- ------- ---------- --------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 2000(R) VALUE INDEX AND THE
LIPPER SMALL-CAP VALUE FUNDS AVERAGE. THE RUSSELL 2000(R) VALUE INDEX MEASURES
THE PERFORMANCE OF THOSE RUSSELL 2000(R) COMPANIES WITH A LESS-THAN-AVERAGE
GROWTH ORIENTATION. THE LIPPER SMALL-CAP VALUE FUNDS AVERAGE IS THE AVERAGE OF
THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC.
FALLING INTO THIS CATEGORY. THE RUSSELL 2000(R) VALUE INDEX IS UNMANAGED AND
DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER SMALL-CAP
FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE
VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH
THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MICRO
CAP VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH
THIRD/MAXUS AGGRESSIVE VALUE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
FEBRUARY 1, 1998. THE INCEPTION DATE FOR CLASS A, CLASS B AND CLASS C SHARES IS
AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A, CLASS B
AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS
ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS A, CLASS B
AND CLASS C SHARES. FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED
PERFORMANCE OF THE MICRO CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE
OF THE FIFTH THIRD/MAXUS AGGRESSIVE VALUE FUND INVESTOR SHARES WITH AN INCEPTION
DATE OF FEBRUARY 1, 1998. ON AUGUST 13, 2001, THE FIFTH THIRD/MAXUS AGGRESSIVE
VALUE FUND BECAME THE FIFTH THIRD MICRO CAP VALUE FUND. DURING THE PERIOD SHOWN,
THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND+
AN INTERVIEW WITH
MICHAEL M. HAYS (FIFTH THIRD ASSET MANAGEMENT INC.) AND DAVID C. DALRYMPLE
(CHARTWELL INVESTMENT PARTNERS L.P.), PORTFOLIO MANAGERS
(THE FIFTH THIRD SMALL CAP VALUE FUND IS CO-MANAGED BY FIFTH THIRD ASSET
MANAGEMENT INC. AND CHARTWELL INVESTMENT PARTNERS L.P.)
Q. FROM ITS INCEPTION ON APRIL 1, 2003 THROUGH THE PERIOD END OF JULY 31, 2003,
THE FUND UNDER-PERFORMED ITS BENCHMARK, THE RUSSELL 2000(R) VALUE INDEX. HOW
WAS THE FUND MANAGED, AND WHAT CONTRIBUTED TO THE UNDERPERFORMANCE DURING THIS
STARTUP PERIOD?
A. The portion of the portfolio managed by Fifth Third Asset Management Inc.,
was hurt in the period from April 1, to July 31, 2003 by an overweight position
in the energy sector and disappointing near-term results from stock selection
in the industrial and telecommunication services sectors. In addition, the
portfolio held an underweight position in industrial stocks, which outperformed
the benchmark.
The portion of the portfolio advised by Fifth Third Asset Management Inc. held
an overweight position in the health care and technology sectors. This benefited
performance as both sectors outperformed the benchmark. The decision to
underweight utilities also helped relative performance, as did strong individual
stock selection within the financial services sector.
The portion of the portfolio advised by Chartwell Investment Partners L.P. was
hurt by an underweight position in the technology and health care sectors. We
positioned our portion of the Fund among stocks of firms with relatively high
returns on equity, low debt-to-capital ratios and better growth characteristics
than the index. That bias hurt performance as there was a shift towards shares
of low-quality firms with weak balance sheets.
In absolute terms, the Fund's investments benefited during the period from low
interest rates, the weakened U.S. dollar, tax cuts and a swift conclusion to the
military phase of the war with Iraq. We believe these factors combined to
establish the beginnings of an economic recovery and had the added benefit of
reducing investor's aversion to risk. This benefited the shares of small
companies, whose businesses are historically economically sensitive and whose
price appreciation is highly correlated to investor's tolerance for risk.
+SMALL-CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISKS SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
L-3 Communications Holdings, Inc. ..... 2.03%
ElkCorp. .............................. 1.68%
Sovereign Bancorp., Inc. .............. 1.55%
Independence Community Bank Corp. ..... 1.49%
International Multi-Foods Corp. ....... 1.48%
Adolph Coors Co. ...................... 1.45%
BankAtlantic Bancorp., Inc. ........... 1.40%
O'Reilly Automotive, Inc. ............. 1.38%
RPM International, Inc. ............... 1.38%
West America Bank Corp. ............... 1.38%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 90.8%
Money Markets 5.8%
Foreign Common Stocks 0.4%
Repurchase Agreements 3.0%
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL RUSSELL 2000 (R) LIPPER MID-CAP
SHARES VALUE INDEX VALUE FUNDS AVERAGE
4/1/2003 $10000.00 $10000.00 $10000.00
4/30/2003 10327.00 10950.00 10839.00
5/31/2003 11027.00 12068.00 11849.00
6/30/2003 11240.00 12272.00 12016.00
7/31/2003 11687.00 12884.00 12382.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE2
-------------- --------------- -------------
Institutional Shares 4/1/03 16.87% $ 11,687
-------------- --------------- -------------
Class A Shares* 4/1/03 10.89% $ 11,089
-------------- --------------- -------------
Class B Shares** 4/1/03 11.47% $ 11,147
-------------- --------------- -------------
Class C Shares*** 4/1/03 15.47% $ 11,547
-------------- --------------- -------------
Advisor Shares 4/1/03 16.67% $ 11,667
-------------- --------------- -------------
Russell 2000(R)
Value Index1 28.84% $ 12,884
-------------- --------------- -------------
Lipper Mid-Cap
Value Funds Average1 23.82% $ 12,382
-------------- --------------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 2000(R) VALUE INDEX AND THE
LIPPER MID-CAP VALUE FUNDS AVERAGE. THE RUSSELL 2000(R) VALUE INDEX IS COMPRISED
OF THE SECURITIES IN THE RUSSELL 2000(R) INDEX WITH A LESS-THAN-AVERAGE GROWTH
ORIENTATION. COMPANIES IN THIS INDEX GENERALLY HAVE LOW PRICE-TO-BOOK AND
PRICE-TO-EARNINGS RATIOS. THE LIPPER MID-CAP VAUE FUNDS AVERAGE IS THE AVERAGE
OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER,
INC. FALLING INTO THIS CATEGORY. THE RUSSELL 2000(R) INDEX INDEX IS UNMANAGED
AND DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER MID-CAP
VALUE FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR
THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX,
ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
AN INTERVIEW WITH
DENIS J. AMATO, PORTFOLIO MANAGER
Q. THE FUND OUTPERFORMED ITS BENCHMARKS, THE RUSSELL 3000(R) VALUE INDEX AND
THE RUSSELL MIDCAP(R) VALUE INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003.
HOW DID YOU MANAGE THE FUND, AND WHAT CONTRIBUTED TO ITS OUTPERFORMANCE?
A. The Fund benefited largely from its small-cap exposure as such stocks
performed very well during the 12-month period ended July 31, 2003. The Fund's
strong performance was due to attractive valuations in the small-cap market
after years of poor returns. The Fund benefited from strong individual stock
selection. For example, the Fund took advantage of bargains among out-of-favor
stocks in the consumer discretionary sector. Those shares rebounded from their
lows to help boost the Fund's performance.
The Fund's industrial holdings hurt performance, as firms in that sector posted
weak earnings due to economic instability and increased foreign competition. The
Fund's cash holdings rose during the period as money flows into the Fund
increased the cash allocation of the portfolio. That put a slight damper on
performance as market advances made it more difficult to find investment
opportunities that met the Fund's valuation criteria.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Scientific-Atlanta, Inc. .............. 2.04%
Ameritrade Holding Corp. .............. 1.79%
Liberty Media Corp. ................... 1.59%
Transocean Sedco Forex, Inc. .......... 1.53%
Foot Locker, Inc. ..................... 1.49%
SUPERVALU, Inc. ....................... 1.48%
Humana, Inc. .......................... 1.44%
Borg Warner, Inc. ..................... 1.44%
Pall Corp. ............................ 1.41%
Hewlett-Packard Co. ................... 1.33%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 79.2%
Convertible Preferred Stocks 0.5%
Investment Companies 4.0%
Repurchase Agreements 9.8%
Collateral for Securities Lending 6.5%
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
RUSSELL RUSSELL
INSTITUTIONAL 3000 (R) MIDCAP (R) LIPPER MULTI-CAP
SHARES VALUE INDEX VALUE INDEX VALUE FUNDS AVERAGE
7/93 $10000.00 $10364.00 $10341.00 $10372.00
7/94 10699.00 10398.00 10371.00 10675.00
7/95 12806.00 12522.00 12463.00 12961.00
7/96 13508.00 14442.00 13929.00 14570.00
7/97 19711.00 21381.00 20104.00 20901.00
7/98 19624.00 24933.00 22340.00 23025.00
7/99 21170.00 28350.00 24235.00 25705.00
7/00 23432.00 27118.00 23427.00 25744.00
7/01 27100.00 29754.00 28255.00 29045.00
7/02 23166.00 24872.00 26083.00 23777.00
7/03 27782.00 27681.00 29622.00 26385.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE3
------ ------ ------- -------------
Institutional Shares 19.92% 7.20% 10.76% $ 27,782
------ ------ ------- -------------
Class A Shares* 13.55% 5.81% 10.04% $ 26,044
------ ------ ------- -------------
Class B Shares** 13.74% 6.34% 10.48% $ 27,080
------ ------ ------- -------------
Class C Shares*** 18.61% 6.63% 10.47% $ 27,056
------ ------ ------- -------------
Advisor Shares 19.26% 6.82% 10.56% $ 27,298
------ ------ ------- -------------
Russell 3000(R)
Value Index2 11.29% 2.11% 10.72% $ 27,681
------ ------ ------- -------------
Russell MidCap(R)
Value Index2 13.57% 5.81% 11.47% $ 29,622
------ ------ ------- -------------
Lipper Multi-Cap Value
Funds Average2 10.98% 2.63% 9.79% $ 26,385
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 3000(R) VALUE INDEX, THE
RUSSELL MIDCAP(R) VALUE INDEX AND THE LIPPER MULTI-CAP VALUE FUNDS AVERAGE. THE
RUSSELL 3000(R) VALUE INDEX MEASURES THE PERFORMANCE OF THOSE COMPANIES IN THE
RUSSELL 3000(R) INDEX WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES. THE RUSSELL MIDCAP(R) VALUE INDEX MEASURES THE PERFORMANCE OF
THOSE RUSSELL MIDCAP(R) COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. THE LIPPER MULTI-CAP VALUE FUNDS AVERAGE IS THE
AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY
LIPPER, INC. FALLING INTO THIS CATEGORY. THE RUSSELL 3000(R) VALUE INDEX AND THE
RUSSELL MIDCAP(R) VALUE INDEX ARE UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF
FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND
ACCOUNTING FEES. HOWEVER, THE LIPPER MULTI-CAP FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI
CAP VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH
THIRD/MAXUS EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF APRIL 1,
1999. PRIOR TO APRIL 1, 1999, THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF
THE FIFTH THIRD/MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF
SEPTEMBER 30, 1989. THE INCEPTION DATE FOR THE CLASS A, CLASS B AND CLASS C
SHARES IS AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS
A SHARES REFLECTS PERFORMANCE OF THE ADVISOR SHARES AND IS ADJUSTED FOR MAXIMUM
SALES CHARGES. THE QUOTED PERFORMANCE OF CLASS B AND CLASS C SHARES REFLECTS THE
PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES AND IS ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND
ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS EQUITY FUND
INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. ON AUGUST 13,
2001, THE FIFTH THIRD/MAXUS EQUITY FUND BECAME THE FIFTH THIRD MULTI CAP VALUE
FUND. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR
REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS
NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
AN INTERVIEW WITH
JAMES R. KIRK, PORTFOLIO MANAGER
Q. THE FUND OUTPERFORMED ITS BENCHMARK INDEX, THE RUSSELL 1000(R) VALUE INDEX,
DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW DID YOU POSITION THE FUND DURING
THE PERIOD, AND WHAT CONTRIBUTED TO THAT OUTPERFORMANCE?
A. We maintained our disciplined strategy of investing in undervalued,
out-of-favor stocks, and the Fund benefited from strong stock selection among
such shares. The stocks in the Fund's portfolio has, on average, a higher
dividend yield than the overall market, and those yields also helped boost
returns.
We positioned the Fund with an overweight in the information technology sector
during the recent period. Technology stocks, which were selling at depressed
levels, performed well as investors began to anticipate an increase in
technology spending.
The Fund's performance relative to its benchmark was hurt by its underweight
position in financial stocks. Such stocks outperformed the market due to falling
interest rates. The Fund's overweight position in shares of materials companies
also dragged on relative performance. Such stocks trailed the market as low
demand and weak pricing negatively affected earnings in this sector.
In absolute terms, the Fund's value-oriented strategy hurt performance as growth
stocks posted stronger returns. Earnings held up better for growth stocks than
for value stocks. In addition, outperformance of value stocks in the preceding
years has closed the valuation gap between growth and value stocks.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Caterpillar, Inc. ..................... 4.19%
J.P. Morgan Chase & Co. ............... 3.65%
Merrill Lynch & Co., Inc. ............. 3.52%
Carnival Corp ......................... 3.46%
ConocoPhillips ........................ 3.17%
CVS Corp. ............................. 3.11%
FleetBoston Financial Corp. ........... 3.01%
KeyCorp ............................... 3.01%
Verizon Communications, Inc. .......... 2.88%
International Paper Co. ............... 2.81%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 92.6%
Money Markets 6.3%
Collateral for Securities Lending 1.1%
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL RUSSELL 1000 (R) LIPPER EQUITY INCOME
SHARES VALUE INDEX FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10000.00
7/94 10013.00 10360.00 10432.00
7/95 11538.00 12525.00 12230.00
7/96 13338.00 14514.00 14063.00
7/97 19030.00 21602.00 19364.00
7/98 22755.00 25427.00 21607.00
7/99 25084.00 29238.00 24169.00
7/00 23588.00 27777.00 23514.00
7/01 24102.00 30205.00 25327.00
7/02 20978.00 24998.00 21218.00
7/03 23607.00 27684.00 23005.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 12.53% 0.74% 8.97% $ 23,607
------ ------ ------- -------------
Class A Shares* 6.68% -0.56% 8.27% $ 22,132
------ ------ ------- -------------
Class B Shares** 6.50% -0.45% 7.96% $ 21,505
------ ------ ------- -------------
Class C Shares*** 11.28% -0.19% 7.98% $ 21,547
------ ------ ------- -------------
Russell 1000(R)
Value Index2 10.75% 1.72% 10.72% $ 27,684
------ ------ ------- -------------
Lipper Equity Income
Funds Average2 8.04% 1.11% 8.60% $ 23,005
------ ------ ------- -------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE RUSSELL 1000(R) VALUE INDEX AND THE
LIPPER EQUITY INCOME FUNDS AVERAGE. THE RUSSELL 1000(R) VALUE INDEX MEASURES THE
PERFORMANCE OF THE 1,000 SECURITIES FOUND IN THE RUSSELL UNIVERSE WITH A
LESS-THAN-AVERAGE GROWTH ORIENTATION. COMPANIES IN THIS INDEX GENERALLY HAVE LOW
PRICE-TO-BOOK AND PRICE-TO-EARNING RATIOS, HIGHER DIVIDEND YIELDS AND LOWER
FORECASTED GROWTH VALUES. THE LIPPER EQUITY INCOME FUNDS AVERAGE IS THE AVERAGE
OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER,
INC. FALLING INTO THIS CATEGORY. THE RUSSELL 1000(R) INDEX IS UNMANAGED AND DOES
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER EQUITY
INCOME FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES
FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX,
ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 THE QUOTED PERFORMANCE OF THE DISCIPLINED LARGE CAP VALUE FUND INCLUDES
PERFORMANCE OF CERTAIN COLLECTIVELY MANAGED ACCOUNTS ADVISED BY FIFTH THIRD
BANK, PRIOR TO THE DISCIPLINED LARGE CAP VALUE FUND'S COMMENCEMENT OF OPERATIONS
ON JANUARY 27, 1997, AS ADJUSTED TO REFLECT THE EXPENSES ASSOCIATED WITH THE
FUND (WITHOUT WAIVERS OR REIMBURSEMENTS). THESE COLLECTIVELY MANAGED ACCOUNTS
WERE NOT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, THEREFORE,
WERE NOT SUBJECT TO THE INVESTMENT RESTRICTIONS IMPOSED BY LAW ON REGISTERED
MUTUAL FUNDS. IF SUCH ACCOUNTS HAD BEEN REGISTERED, THE PERFORMANCE MAY HAVE
BEEN ADVERSELY AFFECTED. THE PERFORMANCE SHOWN REFLECTS THE DEDUCTION OF FEES
FOR VALUE-ADDED SERVICES ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT
MANAGEMENT AND FUND ACCOUNTING FEES. THE PERFORMANCE ALSO REFLECTS REINVESTMENT
OF ALL DIVIDENDS AND CAPITAL-GAINS DISTRIBUTIONS. THE INCEPTION DATES FOR THE
INSTITUTIONAL, CLASS B AND CLASS C SHARES OF THE DISCIPLINED LARGE CAP VALUE
FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000 AND JANUARY 27, 1997, RESPECTIVELY.
PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS PERFORMANCE OF CLASS A SHARES
AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES OF CLASS B AND
CLASS C SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED
AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR
REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
AN INTERVIEW WITH
JOHN E. AUGUSTINE, PORTFOLIO MANAGER
Q. HOW WAS THE FUND MANAGED, AND WHAT CONTRIBUTED TO THE PERFORMANCE DURING THE
FISCAL PERIOD ENDED JULY 31, 2003?
A. The LifeModel Aggressive Fund's portfolio is comprised of funds that invest
in international and domestic equities as well as fixed-income securities. The
Fund benefited from its bias towards equities.
We positioned the Fund with an equity bias in late 2002, as we believed that
corporate earnings and economic growth were improving. That strategy hurt
performance during the last few months of the calendar year, as the lingering
effects of corporate accounting scandals and the buildup to the war in Iraq led
to stock market volatility. We maintained the Fund's equity bias in 2003, and
tilted the portfolio's equity holdings towards small- and mid-cap stocks. We
believe that approach helped to boost the Fund's return, particularly as small-
and mid-sized stocks performed very well during the latter half of the period.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
FUND HOLDINGS
(Pie Chart)
Fifth Third Quality Growth Fund 24.1%
Fifth Third Small Cap Growth Fund 8.0%
Fifth Third Small Cap Value Fund 7.9%
Fifth Third Disciplined Large Cap Value Fund 24.1%
Fifth Third Intermediate Bond Fund 2.9%
Fifth Third International GDP Fund 7.8%
Fifth Third Multi Cap Value Fund 11.9%
Fifth Third Mid Cap Growth Fund 12.0%
Fifth Third Prime Money Market Fund 1.3%
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL AGGRESSIVE FUNDSM
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL WILSHIRE 5000 MSCI EAFE LEHMAN BROTHERS INTERMEDIATE
SHARES INDEX INDEX GOVERNMENT/CREDIT BOND INDEX
8/1/02 $10000.00 $10000.00 $10000.00 $10000.00
10420.00 10059.00 9980.00 10149.00
9/02 9700.00 9049.00 8910.00 10331.00
10180.00 9742.00 9390.00 10290.00
10821.00 10329.00 9817.00 10281.00
12/02 10290.00 9757.00 9488.00 10505.00
10120.00 9511.00 9093.00 10504.00
10039.00 9350.00 8885.00 10652.00
3/03 10011.00 9456.00 8717.00 10663.00
10644.00 10231.00 9581.00 10744.00
11277.00 10856.00 10171.00 10960.00
6/03 11406.00 11017.00 10422.00 10952.00
7/03 11392.00 11282.00 10676.00 10657.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE 2
-------------- --------------- --------------
Institutional Shares 8/1/02 13.92% $ 11,392
-------------- --------------- --------------
Class A Shares* 8/1/02 7.85% $ 10,785
-------------- --------------- --------------
Class B Shares** 8/1/02 7.65% $ 10,765
-------------- --------------- --------------
Class C Shares*** 8/1/02 12.74% $ 11,274
-------------- --------------- --------------
Wilshire 5000 Index1 12.82% $ 11,282
-------------- --------------- --------------
MSCI EAFE Index1 6.76% $ 10,676
-------------- --------------- --------------
Lehman Brothers Intermediate
Government/Credit Bond Index1 6.57% $ 10,657
-------------- --------------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE WILSHIRE 5000 INDEX, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)
INDEX, AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED EQUITY
SECURITIES WITH READILY AVAILABLE PRICE DATA. THE MSCI EAFE IS A MARKET
CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE
MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA.
EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE,
INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS
AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF
U.S. GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE INDICES ARE UNMANAGED AND DO
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY
IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUNDSM
AN INTERVIEW WITH
JOHN E. AUGUSTINE, PORTFOLIO MANAGER
Q. HOW WAS THE FUND MANAGED DURING THE FISCAL PERIOD ENDED JULY 31, 2003?
A. The LifeModel Moderately Aggressive Fund's portfolio is comprised of funds
that invest in international and domestic equities, and fixed-income securities.
The Fund's strong performance during the period ended July 31, 2003 can be
attributed to a consistent allocation bias towards equities and to the fact
that we favored small-and mid-cap stocks during the latter half of the period.
The Fund did not benefit from its equity bias early in the period, as stocks
were volatile due to investor concerns about corporate accounting scandals and
the possibility of war with Iraq. However, stocks staged a strong rally in the
latter half of the period, led by small- and mid-cap shares, which helped the
Fund post positive returns.
We believe strong money inflows in the Fund during the early part of the period
helped performance, as we allocated much of that money near the market low in
October.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
FUND HOLDINGS
(Pie Chart)
Fifth Third Quality Growth Fund 19.0%
Fifth Third Bond Fund 3.9%
Fifth Third Intermediate Bond Fund 10.8%
Fifth Third Small Cap Growth Fund 6.0%
Fifth Third Mid Cap Growth Fund 10.0%
Fifth Third Multi Cap Value Fund 9.9%
Fifth Third Prime Money Market Fund 1.4%
Fifth Third Disciplined Large Cap Value Fund 19.2%
Fifth Third Small Cap Value Fund 6.0%
Fifth Third International GDP Fund 5.9%
Fifth Third Short Term Bond Fund 7.9%
28
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUNDSM
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
WILSHIRE MSCI
INSTITUTIONAL 5000 EAFE LEHMAN BROTHERS INTERMEDIATE
SHARES INDEX INDEX GOVERNMENT/CREDIT BOND INDEX
8/1/02 $10000.00 $10000.00 $10000.00 $10000.00
10420.00 10059.00 9980.00 10149.00
9/02 9700.00 9049.00 8910.00 10331.00
10180.00 9742.00 9390.00 10290.00
10821.00 10329.00 9817.00 10281.00
12/02 10290.00 9757.00 9488.00 10505.00
10120.00 9511.00 9093.00 10504.00
10039.00 9350.00 8885.00 10652.00
3/03 10011.00 9456.00 8717.00 10663.00
10644.00 10231.00 9581.00 10744.00
11277.00 10856.00 10171.00 10960.00
6/03 11406.00 11017.00 10422.00 10952.00
7/03 11678.00 11282.00 10676.00 10657.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE 2
-------------- --------------- --------------
Institutional Shares 8/1/02 16.78% $ 11,678
-------------- --------------- --------------
Class A Shares* 8/1/02 10.65% $ 11,065
-------------- --------------- --------------
Class B Shares** 8/1/02 10.70% $ 11,070
-------------- --------------- --------------
Class C Shares*** 8/1/02 15.71% $ 11,571
-------------- --------------- --------------
Wilshire 5000 Index1 12.82% $ 11,282
-------------- --------------- --------------
MSCI EAFE Index1 6.76% $ 10,676
-------------- --------------- --------------
Lehman Brothers Intermediate
Government/Credit Bond Index1 6.57% $ 10,657
-------------- --------------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE WILSHIRE 5000 INDEX, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)
INDEX, AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED EQUITY
SECURITIES WITH READILY AVAILABLE PRICE DATA. THE MSCI EAFE IS A MARKET
CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE
MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA.
EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE,
INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS
AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF
U.S. GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE INDICES ARE UNMANAGED AND DO
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY
IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
29
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATE FUND SM
AN INTERVIEW WITH
JOHN E. AUGUSTINE, PORTFOLIO MANAGER
Q. HOW WAS THE FUND MANAGED DURING THE FISCAL PERIOD ENDED JULY 31, 2003?
A. Our belief early in the period that improving economic data would benefit
the stock market resulted in a bias towards equities. That approach initially
hurt the Fund as stocks remained volatile during the first half of the 12-month
period ended July 31, 2003. We also held an underweight position relative to
the Fund's fixed income benchmark among fixed-income securities, and positioned
those holdings with a relatively short duration. Overall, we believe that
strategy hurt performance during the first half of the period as the
fixed-income market continued to benefit from falling interest rates.
The Fund ultimately benefited from its bias towards equities. We found
attractive investment opportunities in the small- and mid-cap sectors during the
latter half of the period, which further bolstered performance as such stocks
were among the period's best performers. The Fund's shorter-duration
fixed-income investments benefited at the end of the period as interest rates
began to rise.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
FUND HOLDINGS
(Pie Chart)
Fifth Third Disciplined Large Cap Value fund 13.3%
Fifth Third Intermediate Bond Fund 20.7%
Fifth Third Small Cap Growth Fund 5.1%
Fifth Third Mid Cap Growth Fund 8.0%
Fifth Third Multi Cap Value Fund 8.0%
Fifth Third Prime Money Market Fund 1.2%
Fifth Third Quality Growth Fund 13.2%
Fifth Third International GDP Fund 4.0%
Fifth Third Small Cap Value Fund 5.0%
Fifth Third Bond Fund 6.9%
Fifth Third Short Term Bond Fund 14.6%
30
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATE FUNDSM
GROWTH OF A $10,000 INVESTMENT
(MOUNTAIN CHART)
LEHMAN BROTHERS
INTERMEDIATE
INSTITUTIONAL WILSHIRE MSCI EAFE GOVERNMENT/CREDIT
SHARES 5000 INDEX INDEX BOND INDEX
8/1/02 $10000.00 $10000.00 $10000.00 $10000.00
10080.00 10059.00 9980.00 10149.00
9/02 9594.00 9049.00 8910.00 10331.00
9934.00 9742.00 9390.00 10290.00
10365.00 10329.00 9817.00 10281.00
12/02 10053.00 9757.00 9488.00 10505.00
9923.00 9511.00 9093.00 10504.00
9913.00 9350.00 8885.00 10652.00
3/03 9894.00 9456.00 8717.00 10663.00
10358.00 10231.00 9581.00 10744.00
10862.00 10856.00 10171.00 10960.00
6/03 10944.00 11017.00 10422.00 10952.00
7/03 11066.00 11282.00 10676.00 10657.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE 2
-------------- --------------- --------------
Institutional Shares 8/1/02 10.66% $ 11,066
-------------- --------------- --------------
Class A Shares* 8/1/02 4.92% $ 10,492
-------------- --------------- --------------
Class B Shares** 8/1/02 4.58% $ 10,458
-------------- --------------- --------------
Class C Shares*** 8/1/02 9.67% $ 10,967
-------------- --------------- --------------
Wilshire 5000 Index1 12.82% $ 11,282
-------------- --------------- --------------
MSCI EAFE Index1 6.76% $ 10,676
-------------- --------------- --------------
Lehman Brothers Intermediate
Government/Credit Bond Index1 6.57% $ 10,657
-------------- --------------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE WILSHIRE 5000 INDEX, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)
INDEX, AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED EQUITY
SECURITIES WITH READILY AVAILABLE PRICE DATA. THE MSCI EAFE IS A MARKET
CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE
MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA.
EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE,
INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS
AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF
U.S. GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE INDICES ARE UNMANAGED AND DO
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY
IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
31
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUNDSM
AN INTERVIEW WITH
JOHN E. AUGUSTINE, PORTFOLIO MANAGER
Q. HOW WAS THE FUND MANAGED DURING THE FISCAL PERIOD ENDED JULY 31, 2003?
A. The Fund held a large portion of its portfolio in relatively conservative
bond funds, which invested primarily in high-quality fixed-income securities.
We believe that hurt performance relative to the Fund's fixed income benchmark,
as investors looking for extra yield in a low-interest-rate environment favored
lower-quality bonds. The Fund's fixed-income holdings also maintained a
duration slightly shorter than its benchmark. This strategy hurt relative
performance in 2002 and early 2003, but later, benefited the Fund as interest
rates began to rise sharply at the end of the 12-months period ended July 31,
2003.
The Fund's equity investments helped performance during the full period,
despite lagging in the early months of the fiscal year. Positive economic data
led us to anticipate a stock market rebound early in the period, although
investor concern over the potential war with Iraq--as well as fallout from
accounting scandals--created volatility in the stock market in late 2002.
Stocks rallied during the second half of the period, boosting the Fund's
performance. The Fund benefited particularly from its exposure to small- and
mid-cap stocks.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
FUND HOLDINGS
(Pie Chart)
Fifth Third Short Term Bond Fund 17.9%
Fifth Third International GDP Fund 4.0%
Fifth Third Bond Fund 8.8%
Fifth Third Disciplined Large Cap Value Fund 11.3%
Fifth Third Small Cap Growth Fund 4.0%
Fifth Third Intermediate Bond Fund 25.6%
Fifth Third Multi Cap Value Fund 6.0%
Fifth Third Quality Growth Fund 11.2%
Fifth Third Mid Cap Growth Fund 6.0%
Fifth Third Prime Money Market Fund 1.2%
Fifth Third Small Cap Value Fund 4.0%
32
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUNDSM
GROWTH OF A $10,000 INVESTMENT
(MOUNTAIN CHART)
LEHMAN BROTHERS
INTERMEDIATE
INSTITUTIONAL WILSHIRE MSCI EAFE GOVERNMENT/CREDIT
SHARES 5000 INDEX INDEX BOND INDEX
8/1/02 $10000.00 $10000.00 $10000.00 $10000.00
9930.00 10059.00 9980.00 10149.00
9/02 9517.00 9049.00 8910.00 10331.00
9827.00 9742.00 9390.00 10290.00
10188.00 10329.00 9817.00 10281.00
12/02 9958.00 9757.00 9488.00 10505.00
9858.00 9511.00 9093.00 10504.00
9858.00 9350.00 8885.00 10652.00
3/03 9844.00 9456.00 8717.00 10663.00
10238.00 10231.00 9581.00 10744.00
10663.00 10856.00 10171.00 10960.00
6/03 10726.00 11017.00 10422.00 10952.00
7/03 10787.00 11282.00 10676.00 10657.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE 2
-------------- --------------- --------------
Institutional Shares 8/1/02 7.87% $ 10,787
-------------- --------------- --------------
Class A Shares* 8/1/02 2.10% $ 10,210
-------------- --------------- --------------
Class B Shares** 8/1/02 1.81% $ 10,181
-------------- --------------- --------------
Class C Shares*** 8/1/02 6.81% $ 10,681
-------------- --------------- --------------
Wilshire 5000 Index1 12.82% $ 11,282
-------------- --------------- --------------
MSCI EAFE Index1 6.76% $ 10,676
-------------- --------------- --------------
Lehman Brothers Intermediate
Government/Credit Bond Index1 6.57% $ 10,657
-------------- --------------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE WILSHIRE 5000 INDEX, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)
INDEX, AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED EQUITY
SECURITIES WITH READILY AVAILABLE PRICE DATA. THE MSCI EAFE IS A MARKET
CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE
MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA.
EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE,
INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS
AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF
U.S. GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE INDICES ARE UNMANAGED AND DO
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY
IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
33
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL CONSERVATIVE FUNDSM
AN INTERVIEW WITH
JOHN E. AUGUSTINE, PORTFOLIO MANAGER
Q. HOW WAS THE FUND MANAGED DURING THE FISCAL PERIOD ENDED JULY 31, 2003?
A. The LifeModel Conservative Fund invests a significant amount of its assets
in fixed-income issues. The Fund's relative performance was dampened by its
exposure to high-quality fixed-income securities, which under-performed
lower-quality issues in the bond market. We also positioned the Fund with a
duration shorter than that of its benchmark. We believe that strategy hurt
relative performance during the first three quarters of the 12-month period
ended July 31, 2003, but helped the Fund late in the period as interest rates
began to rise.
The Fund benefited from its stock exposure during the period, particularly its
exposure to small- and mid-cap stocks. The stock market was very volatile early
in the period but rallied during the second half, significantly outperforming
bonds for the full period.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
FUND HOLDINGS
(Pie Chart)
Fifth Third Short Term Bond Fund 25.1%
Fifth Third Small Cap Growth Fund 4.1%
Fifth Third Intermediate Bond Fund 35.8%
Fifth Third Quality Growth Fund 4.3%
Fifth Third Prime Money Market Fund 0.3%
Fifth Third Disciplined Large Cap Value Fund 4.3%
Fifth Third Bond Fund 11.9%
Fifth Third International GDP Fund 2.0%
Fifth Third Multi Cap Value Fund 4.0%
Fifth Third Mid Cap Growth Fund 4.1%
Fifth Third Small Cap Value Fund 4.1%
34
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL CONSERVATIVE FUNDSM
GROWTH OF A $10,000 INVESTMENT
(MOUNTAIN CHART)
Lehman Brothers
Intermediate
Institutional Wilshire MSCI EAFE Government/Credit
Shares 5000 Index Index Bond Index
8/1/02 $10000.00 $10000.00 $10000.00 $10000.00
10090.00 10059.00 9980.00 10149.00
9/02 9909.00 9049.00 8910.00 10331.00
10049.00 9742.00 9390.00 10290.00
10290.00 10329.00 9817.00 10281.00
12/02 10233.00 9757.00 9488.00 10505.00
10192.00 9511.00 9093.00 10504.00
10243.00 9350.00 8885.00 10652.00
3/03 10245.00 9456.00 8717.00 10663.00
10488.00 10231.00 9581.00 10744.00
10813.00 10856.00 10171.00 10960.00
6/03 10840.00 11017.00 10422.00 10952.00
7/03 10758.00 11282.00 10676.00 10657.00
TOTAL RETURN
INCEPTION DATE SINCE INCEPTION ENDING VALUE 2
-------------- --------------- --------------
Institutional Shares 8/1/02 7.58% $ 10,758
-------------- --------------- --------------
Class A Shares* 8/1/02 1.90% $ 10,190
-------------- --------------- --------------
Class B Shares** 8/1/02 1.54% $ 10,154
-------------- --------------- --------------
Class C Shares*** 8/1/02 6.58% $ 10,658
-------------- --------------- --------------
Wilshire 5000 Index1 12.82% $ 11,282
-------------- --------------- --------------
MSCI EAFE Index1 6.76% $ 10,676
-------------- --------------- --------------
Lehman Brothers Intermediate
Government/Credit Bond Index1 6.57% $ 10,657
-------------- --------------- --------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE WILSHIRE 5000 INDEX, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)
INDEX, AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED EQUITY
SECURITIES WITH READILY AVAILABLE PRICE DATA. THE MSCI EAFE IS A MARKET
CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE
MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA.
EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE,
INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS
AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF
U.S. GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE INDICES ARE UNMANAGED AND DO
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY
IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
35
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
AN INTERVIEW WITH
JOHN B. SCHMITZ, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK INDEX, THE LEHMAN BROTHERS
INTERMEDIATE CREDIT BOND INDEX, FOR THE 12-MONTH PERIOD ENDED JULY 31, 2003.
HOW WAS THE FUND MANAGED, AND WHAT CONTRIBUTED TO THE FUND'S UNDERPERFOR-MANCE
DURING THE PERIOD?
A. We worked during the 12-month period ended July 31, 2003 to improve the
average credit quality of the portfolio. 94% of the Fund's preferred-stock
investments were rated above investment grade on July 31, 2003, up from 80% at
the beginning of the period. We believe that helped the Fund by maintaining
stable dividends for shareholders in an environment where interest rates fell
to dramatic lows. Our strategy of holding investment grade securities hurt the
Fund's relative performance, as lower-quality issues performed better than
high-quality securities.
We broadened the Fund's asset mix to include dividend-growth-oriented common
stock and high-quality real estate investment trusts (REITs). These investments
helped the Fund to generate higher income for shareholders. This was especially
important as declining interest rates reduced yields on many investment
vehicles. That strategy helped performance later in the period.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN HOLDINGS
Washington Mutual, Inc. ............... 1.78%
Bank One Capital V .................... 1.44%
Weingarten Realty Investors ........... 1.36%
General Electric Corp. ................ 1.34%
Bell South . .......................... 1.19%
Conagra, Inc. ......................... 1.19%
Wachovia Funding ...................... 1.19%
Pan Pacific Retail Properties, Inc. ... 1.14%
Vornado Realty Trust .................. 1.14%
Kimco Realty Corp. .................... 1.10%
PORTFOLIO COMPOSITION
(Pie Chart)
Investment Companies 12.7%
U.S. Treasury Obligations 1.6%
Corporate Bonds 7.8%
Corporate Bonds Equivalents 38.5%
Preferred Stocks 20.3%
Convertible Preferred Stocks 1.7%
Common Stocks 16.5%
Money Markets 0.9%
36
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL LEHMAN BROTHERS INTERMEDIATE LIPPER FLEXIBLE INCOME
SHARES CREDIT BOND INDEX FUNDS AVERAGE
7/93 $10000.00 $10194.00 $10126.00
7/94 9805.00 10096.00 10227.00
7/95 10731.00 11167.00 11093.00
7/96 11645.00 11806.00 11800.00
7/97 13251.00 13072.00 13062.00
7/98 13980.00 13923.00 13561.00
7/99 14340.00 14337.00 13496.00
7/00 15007.00 15054.00 13769.00
7/01 17065.00 17088.00 14726.00
7/02 18243.00 18034.00 15259.00
7/03 19683.00 19816.00 15932.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- --------------
Institutional Shares 7.89% 7.08% 7.01% $ 19,683
------ ------ ------- --------------
Class C Shares* 6.82% 6.46% 6.70% $ 19,121
------ ------ ------- --------------
Advisor Shares 7.36% 6.73% 6.83% $ 19,364
------ ------ ------- --------------
Lehman Brothers Intermediate
Credit Bond Index2 9.89% 7.31% 7.08% $ 19,816
------ ------ ------- --------------
Lipper Flexible Income
Funds Average2 3.32% 2.59% 4.08% $ 15,932
------ ------ ------- --------------
*Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS INTERMEDIATE CREDIT
BOND INDEX AND THE LIPPER FLEXIBLE INCOME FUNDS AVERAGE. THE LEHMAN BROTHERS
INTERMEDIATE CREDIT BOND INDEX IS GENERALLY REPRESENTATIVE OF INVESTMENT GRADE
CORPORATE BONDS WITH MATURITIES FROM ONE TO TEN YEARS. THE LIPPER FLEXIBLE
INCOME FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE
MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE LEHMAN
BROTHERS INTERMEDIATE CREDIT BOND INDEX IS UNMANAGED AND DOES NOT REFLECT THE
DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT
AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER FLEXIBLE INCOME FUNDS AVERAGE AND
THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED
SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST
IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 22, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD STRATEGIC INCOME FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
FIFTH THIRD/MAXUS INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
SEPTEMBER 1, 1998. PRIOR TO SEPTEMBER 1, 1998 THE QUOTED PERFORMANCE REFLECTS
THE PERFORMANCE FOR THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES. CLASS C
SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR
CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR
ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES
FOR CLASS C SHARES. PRIOR TO OCTOBER 22, 2001, THE QUOTED PERFORMANCE FOR
ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS INCOME FUND
INVESTOR SHARES WITH AN INCEPTION DATE OF MARCH 10, 1985. ON OCTOBER 22, 2001,
THE FIFTH THIRD/MAXUS INCOME FUND BECAME THE FIFTH THIRD STRATEGIC INCOME FUND.
DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED
FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN
EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
37
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
AN INTERVIEW WITH
SUNIL M. REDDY, PORTFOLIO MANAGER
Q. THE FUND SIGNIFICANTLY OUTPERFORMED ITS BENCHMARK, THE MERRILL LYNCH
TECHNOLOGY 100 INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003. HOW DID
YOU MANAGE THE FUND DURING THAT PERIOD, AND WHAT CONTRIBUTED TO THE FUND'S
SUPERIOR PERFORMANCE?
A. Technology stocks' returns fluctuated considerably during the 12-month
period ended July 31, 2003, contributing to volatile returns for the Fund. The
sector fared poorly early in the period, and then posted gains during the
fourth quarter of 2002. Technology stocks fell again through mid-March, and
then rebounded sharply through the end of the period. Technology stocks
delivered sizable gains for the period as a whole, helping the Fund post strong
absolute returns.
The Fund's returns relative to the benchmark benefited from its overweight
positions in shares of semiconductor, software and e-commerce firms, as those
sectors outperformed the index. The Fund's investments in shares of mid-cap and
small-cap stocks also boosted relative returns, because smaller stocks
outperformed the large caps that comprise most of the index.
We maintained an underweight position in the Internet sector as a whole, because
many companies in that industry are relatively new and have unproven business
models. However, that decision hurt relative returns, because Internet stocks
performed extremely well during the period.
+THE FUND'S VALUE AND ITS RETURNS MAY BE CONSIDERABLY MORE VOLATILE AND POSE
GREATER RISKS DUE TO THE NATURE OF THE TECHNOLOGY SECTOR (SHORT PRODUCT CYCLES,
PRICE COMPETITION, OBSOLESCENCE OF EXISTING TECHNOLOGY) THAN THE VALUES AND
RETURNS OF OTHER MUTUAL FUNDS INVESTED IN A BROADER RANGE OF INDUSTRIES AND
COMPANIES.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Agere Systems, Inc. ................... 5.51%
BEA Systems, Inc. ..................... 5.36%
LSI Logic Corp. ....................... 5.04%
Applied Materials, Inc. ............... 3.96%
Agilent Technologies, Inc. ............ 3.82%
Verisign, Inc. ........................ 3.61%
EMC Corp. ............................. 3.60%
Analog Devices, Inc. .................. 3.59%
UnitedGlobalCom ....................... 3.43%
Broadcom Corp. ........................ 3.37%
PORTFOLIO COMPOSITION
(Pie Chart)
Common Stocks 76.0%
Money Markets 1.6%
Collateral for Securities Lending 22.4%
38
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL MERRILL LYNCH 100 LIPPER SCIENCE & TECHNOLOGY
SHARES TECHNOLOGY INDEX FUNDS AVERAGE
6/5/00 $10000.00 $10000.00 $10000.00
7/00 9605.00 10590.00 10907.00
7/01 5233.00 4886.00 5282.00
7/02 2801.00 2615.00 2894.00
7/03 4401.00 3559.00 3702.00
AVERAGE ANNUAL TOTAL RETURN1
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 3
--------- ------ --------- ---------
Institutional Shares 6/5/00 57.12% -22.92% $ 4,401
--------- ------ --------- ---------
Class A Shares* 6/5/00 49.05% -24.32% $ 4,152
--------- ------ --------- ---------
Class B Shares** 6/5/00 50.70% -24.35% $ 4,147
--------- ------ --------- ---------
Class C Shares*** 6/5/00 55.43% -23.71% $ 4,259
--------- ------ --------- ---------
Advisor Shares 6/5/00 56.26% -23.32% $ 4,329
--------- ------ --------- ---------
Merrill Lynch 100
Technology Index2 36.11% -27.84% $ 3,559
--------- ------ --------- ---------
Lipper Science & Technology
Funds Average2 27.93% -28.07% $ 3,702
--------- ------ --------- ---------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE MERRILL LYNCH 100 TECHNOLOGY INDEX
AND THE LIPPER SCIENCE & TECHNOLOGY FUNDS AVERAGE. THE MERRILL LYNCH 100
TECHNOLOGY INDEX IS AN EQUAL-DOLLAR WEIGHTED INDEX OF 100 STOCKS DESIGNED TO
MEASURE THE PERFORMANCE OF A CROSS-SECTION OF LARGE, ACTIVELY TRADED TECHNOLOGY
STOCKS AND AMERICAN DEPOSITARY RECEIPTS. THE LIPPER SCIENCE AND TECHNOLOGY FUNDS
AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS
DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE MERRILL LYNCH 100
TECHNOLOGY INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF FEES
ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING
FEES. HOWEVER, THE LIPPER SCIENCE & TECHNOLOGY FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 THE INCEPTION DATE FOR THE INSTITUTIONAL, CLASS A AND CLASS C SHARES OF THE
TECHNOLOGY FUND IS JUNE 5, 2000. THE INCEPTION DATE FOR CLASS B AND ADVISOR
SHARES IS OCTOBER 11, 2000 AND OCTOBER 29, 2001, RESPECTIVELY. THE QUOTED
PERFORMANCE PRIOR TO THE INCEPTION OF CLASS B AND ADVISOR SHARES IS BASED ON THE
PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR
AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE
WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN
LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
39
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
WORLDWIDE FUND
AN INTERVIEW WITH
ALAN MILLER, PORTFOLIO MANAGER
Q. THE FUND SLIGHTLY UNDERPERFORMED ITS BENCHMARK THE MSCI WORLD INDEX, FOR THE
12 MONTHS ENDED JULY 31, 2003. HOW WAS THE FUND MANAGED DURING THAT PERIOD, AND
WHAT CONTRIBUTED TO THAT PERFORMANCE?
A. The Fund's broadly diversified portfolio of securities (through investments
in mutual funds) benefited from gains in domestic and international stock
markets, primarily during the last three months of the period. During the first
three-quarters of the 12-month period ended July 31, 2003, we approached the
stock market with caution and positioned the Fund very defensively. For
example, we hedged our positions through investments in selected bear-market
mutual funds. Our cautious attitude caused the Fund to miss gains during
short-lived rallies early in the period.
We positioned the Fund much more aggressively during the last three months of
the 12-month period. We were attracted to low valuations among oversold
small-cap growth stocks, which rebounded late in the period and boosted the
Fund's relative returns. The Fund also found attractive opportunities in
emerging markets; specifically Southeast Asian markets that were hard hit by
the SARS epidemic. We believed that investors were overrating the economic
impact of SARS in Southeast Asian markets. We boosted our investment in
securities that concentrate on that region, which benefited performance.
The Japanese market remained weak during the period as its economy continued to
falter and consumer spending remained weak. Although the Fund's exposure to
Japan was underweight relative to its benchmark, those investments still put a
slight curb on overall performance.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN HOLDINGS
Mutual Series European ................ 5.94%
Rydex Dynamic Velocity 100 ............ 5.65%
Third Ave Small-Cap Value ............. 5.36%
Matthews Pacific Tiger ................ 4.71%
RS Partners Fund ...................... 4.38%
Wasatch Small Cap Value ............... 4.16%
Oakmark International Small Cap ....... 4.09%
Matthews China ........................ 3.93%
Van Wagoner Emerging Growth Fund ...... 3.81%
Red Oak Technology Select ............. 3.55%
PORTFOLIO COMPOSITION
(Pie Chart)
Mutual Funds 97.1%
Money Markets 2.9%
40
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
WORLDWIDE FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL SHARES MSCI WORLD INDEX LIPPER GLOBAL FUNDS AVERAGE
7/93 $10000.00 $10460.00 $10590.00
7/94 10312.00 11060.00 11740.00
7/95 11128.00 12675.00 13258.00
7/96 12370.00 13857.00 14401.00
7/97 15856.00 18452.00 19346.00
7/98 17891.00 20687.00 21565.00
7/99 23248.00 23979.00 23870.00
7/00 29973.00 26304.00 28448.00
7/01 23525.00 21363.00 23668.00
7/02 20017.00 16874.00 19411.00
7/03 21695.00 18448.00 20875.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- --------------
Institutional Shares 8.38% 3.93% 8.05% $ 21,695
------ ------ ------- --------------
Class C Shares* 7.20% 3.19% 7.67% $ 20,934
------ ------ ------- ----- ---------
Advisor Shares 7.84% 3.42% 7.78% $ 21,162
------ ------ ------- --------------
MSCI World Index2 9.32% -2.27% 6.31% $ 18,448
------ ------ ------- --------------
Lipper Global
Funds Average2 8.34% -0.81% 7.40% $ 20,875
------ ------ ------- --------------
*Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) WORLD INDEX AND THE LIPPER GLOBAL FUNDS AVERAGE. THE MSCI WORLD INDEX IS
A MARKET CAPITALIZATION WEIGHTED INDEX OF THE EQUITY MARKETS OF 23 DEVELOPED
COUNTRIES. THE LIPPER GLOBAL FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS
REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS
CATEGORY. THE MSCI WORID INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION
OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND
ACCOUNTING FEES. HOWEVER, THE LIPPER GLOBAL FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD WORLDWIDE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH
THIRD/MAXUS LAUREATE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
FEBRUARY 1, 1998. PRIOR TO FEBRUARY 1, 1998, THE QUOTED PERFORMANCE REFLECTS THE
PERFORMANCE FOR THIRD/MAXUS LAUREATE FUND INVESTOR SHARES. CLASS C SHARES WERE
INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS C
SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR ADVISOR
SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR
CLASS C SHARES. PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE FOR ADVISOR
SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS LAUREATE FUND INVESTOR
SHARES WITH AN INCEPTION DATE OF APRIL 30, 1993. ON AUGUST 13, 2001, THE FIFTH
THIRD/MAXUS LAUREATE FUND BECAME THE FIFTH THIRD WORLDWIDE FUND. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
41
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL EQUITY FUND+
AN INTERVIEW WITH
ANN THIVIERGE, PORTFOLIO MANAGER
Q. THE FUND LAGGED ITS BENCHMARK, THE MSCI EAFE INDEX, DURING THE 12-MONTH
PERIOD ENDED JULY 31, 2003. HOW DID YOU MANAGE THE FUND DURING THAT PERIOD, AND
WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. The Fund posted negative returns during the first three-quarters of the
12-month period ended July 31, 2003, as stocks around the world struggled.
Stocks then rose sharply during the final quarter of the period, helping to
boost the Fund's absolute returns.
We were underweight in information technology as part of our defensive
strategy. That hurt returns for the period as a whole, because the technology
stocks' surge near the end of the period made them the best-performing sector
during the fiscal year. The Fund's overweight position in sectors such as
energy and consumer staples and its underweight stake in banks also dragged on
returns.
We believe our defensive positioning of the Fund helped the Fund's performance
in the market sell-off phase in the beginning of the 12-month period. That held
back our relative performance for the latter months as the equity markets moved
sharply higher between April and July 2003.
The Fund's country allocations helped relative performance during the period.
Overweight positions in the United Kingdom, Spain and Russia and an underweight
position in Japan boosted returns. The Fund also benefited from its overweight
allocation to the Euro as the currency appreciated considerably versus the U.S.
dollar. The Fund's underweight position in more growth-oriented and cyclical
markets such as Germany and Australia hurt relative performance.
+INTERNATIONAL INVESTING INVOLVES INCREASED RISK AND VOLATILITY.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
Vodafone Airtouch ..................... 2.60%
BP Amoco .............................. 2.30%
Glaxosmithkline ....................... 1.85%
Royal Dutch Petroleum ................. 1.73%
HSBC Holdings ......................... 1.69%
Toyota Motor Corp. .................... 1.53%
Nestle ................................ 1.36%
Novartis AG ........................... 1.34%
UBS AG ................................ 1.20%
Unilever NV ........................... 1.14%
PORTFOLIO COMPOSITION
(PIE CHART)
EUROPE 57.1%
AUSTRALIA 3.8%
CHINA 0.6%
HONG KONG 3.4%
JAPAN 23.8%
MALAYSIA 0.9%
SIGNAPORE 1.6%
MONEY MARKETS 4.4%
COLLATERAL FOR SECURITIES LENDING 4.4%
42
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL EQUITY FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL MSCI EAFE LIPPER INTERNATIONAL
SHARES INDEX FUNDS AVERAGE
8/18/1994 $10000.00 $10000.00 $10000.00
7/95 9830.00 10477.00 10265.00
7/96 10740.00 10879.00 10905.00
7/97 13079.00 12886.00 13709.00
7/98 14817.00 13627.00 14750.00
7/99 15486.00 14991.00 15697.00
7/00 16770.00 16381.00 18231.00
7/01 13817.00 12870.00 14145.00
7/02 11842.00 10726.00 11896.00
7/03 12134.00 11451.00 12504.00
AVERAGE ANNUAL TOTAL RETURN1
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 3
--------- ------ ------ ---------- ----------
Institutional Shares 8/18/94 2.47% -3.92% 2.18% $ 12,134
--------- ------ ------ ---------- ----------
Class A Shares* 8/18/94 -2.58% -5.03% 1.52% $ 11,443
--------- ------ ------ ---------- ----------
Class B Shares** 8/18/94 -3.55% -5.11% 1.21% $ 11,133
--------- ------ ------ ---------- ----------
Class C Shares*** 8/18/94 1.35% -4.79% 1.32% $ 11,248
--------- ------ ------ ---------- ----------
MSCI EAFE Index2 6.76% -3.42% 1.53% $ 11,451
--------- ------ ------ ---------- ----------
Lipper International
Funds Average2 4.36% -3.51% 2.35% $ 12,504
--------- ------ ------ ---------- ----------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE) INDEX AND THE LIPPER
INTERNATIONAL FUNDS AVERAGE. THE MSCI EAFE INDEX IS GENERALLY REPRESENTATIVE OF
A SAMPLE OF COMPANIES OF THE MARKET STRUCTURE OF 20 EUROPEAN AND PACIFIC BASIN
COUNTRIES. THE LIPPER INTERNATIONAL FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL
RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING
INTO THIS CATEGORY. THE MSCI EAFE INDEX IS UNMANAGED AND DOES NOT REFLECT THE
DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT
AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER INTERNATIONAL FUNDS AVERAGE AND
THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED
SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST
IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 CLASS A SHARES WERE INITIALLY OFFERED ON AUGUST 18, 1994. CLASS B AND CLASS C
SHARES WERE INITIALLY OFFERED ON OCTOBER 11, 2000 AND APRIL 25, 1996,
RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS
PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON OCTOBER 9, 1998. THE PERFORMANCE
FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE
PERFORMANCE FOR CLASS A SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR
AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS
AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
43
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL GDP FUND+
AN INTERVIEW WITH
DAVID C. EDER, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE MSCI EAFE INDEX, DURING THE 12
MONTHS ENDED JULY 31, 2003. HOW DID YOU MANAGE THE FUND, AND WHAT CONTRIBUTED
TO ITS PERFORMANCE DURING THE PERIOD?
A. Global markets during the12-month period ended July 31, 2003 rebounded as
Central Banks worldwide adopted more stimulative monetary policies. What's
more, a weakening U.S. dollar pushed overseas currencies higher--increasing the
dollar value of overseas shares denominated in foreign currencies. The euro
rose 14.9% during the 12 months through July 2003, and the United Kingdom's
pound sterling rose 3%. Those factors boosted the absolute performance of the
Fund.
The Fund's portfolio allocation is based upon each country's relative Gross
Domestic Product2 rather than market capitalization. Therefore, the Fund was
overweight Euro countries such as Germany, France and Italy relative to its
benchmark. The Fund also underweighted the United Kingdom, as that country's
GDP is small despite its relatively large stock market. Those weightings helped
the Fund's relative performance as the Euro countries performed well and the
United Kingdom fared relatively poorly during the period.
The Fund's largest individual country allocation was Japan. That hurt the Fund
as Japan's economy has continued to falter and its currency fell during the
period. The Fund's relative performance was also hurt by its emphasis on
large-cap stocks, as shares of small-cap companies posted some of the best
returns during the period.
+INTERNATIONAL INVESTING INVOLVES INCREASED RISK AND VOLATILITY.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
TOP TEN EQUITY HOLDINGS
BP Amoco .............................. 2.83%
Total Fina ............................ 2.30%
Vodafone Airtouch ..................... 2.28%
HSBC Holdings ......................... 2.17%
Glaxosmithkline ....................... 2.06%
Royal Bank of Scotland Group .......... 1.77%
Nokia Oyj ............................. 1.43%
ENI ................................... 1.41%
Toyota Motor Corp. .................... 1.29%
Siemens AG ............................ 1.28%
PORTFOLIO COMPOSITION
(Pie Chart)
Europe 63.9%
Australia 4.9%
Hong Kong 1.5%
Japan 22.1%
Signapore 0.7%
Money Markets 1.0%
Collateral for Securities lending 5.9%
44
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL GDP FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL MSCI EAFE LIPPER INTERNATIONAL
SHARES INDEX FUNDS AVERAGE
7/93 $10000.00 $10542.00 $10612.00
7/94 11523.00 11443.00 11922.00
7/95 11879.00 12274.00 12583.00
7/96 13068.00 12745.00 13368.00
7/97 15409.00 15097.00 16824.00
7/98 16074.00 15965.00 18173.00
7/99 17765.00 17564.00 19185.00
7/00 19035.00 19192.00 22281.00
7/01 14378.00 15079.00 17282.00
7/02 11694.00 12567.00 14568.00
7/03 12382.00 13416.00 15278.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------- ------- ---------------
Institutional Shares 5.88% -5.08% 2.16% $ 12,382
------ ------- ------- ---------------
Class A Shares* 0.18% -6.35% 1.37% $ 11,461
------ ------- ------- ---------------
Class B Shares** -0.18% -6.37% 1.17% $ 11,233
------ ------- ------- ---------------
Class C Shares*** 4.65% -6.08% 1.16% $ 11,222
------ ------- ------- ---------------
MSCI EAFE Index2 6.76% -3.42% 2.98% $ 13,416
------ ------- ------- ---------------
Lipper International
Funds Average2 4.36% -3.51% 4.02% $ 15,278
------ ------- ------- ---------------
*Reflects the maximum sales charge of 5.00%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE) INDEX AND THE LIPPER
INTERNATIONAL FUNDS AVERAGE. THE MSCI EAFE INDEX IS GENERALLY REPRESENTATIVE OF
A SAMPLE OF COMPANIES OF THE MARKET STRUCTURE OF 20 EUROPEAN AND PACIFIC BASIN
COUNTRIES. THE LIPPER INTERNATIONAL FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL
RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING
INTO THIS CATEGORY. THE MSCI EAFE INDEX IS UNMANAGED AND DOES NOT REFLECT THE
DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT
AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER INTERNATIONAL FUNDS AVERAGE AND
THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED
SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST
IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE
INTERNATIONAL GDP INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT
INTERNATIONAL GROWTH FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
DECEMBER 4, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR CLASS A
SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERNATIONAL GROWTH FUND INVESTMENT
SHARES WITH AN INCEPTION DATE OF DECEMBER 4, 1992, ADJUSTED FOR THE MAXIMUM
SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29,
2001. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR
TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ON
OCTOBER 29, 2001, THE KENT INTERNATIONAL GROWTH FUND BECAME THE FIFTH THIRD
INTERNATIONAL GDP FUND. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES
WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR
REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
45
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
AN INTERVIEW WITH
JOHN L. CASSADY III, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS GOVERNMENT/CREDIT
BOND INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW DID YOU MANAGE THE
FUND DURING THE PERIOD, AND WHAT CONTRIBUTED TO THE FUND'S UNDERPERFORMANCE?
A. We maintained a high average credit quality during the 12-month period ended
July 31, 2003, which hurt the Fund's relative performance as lower-quality
bonds performed very well during the 12 months through July, 2003. Investors
looking for yield were attracted to these lower-quality securities, which
offered relatively high yields, as interest rates remained low. The Fund's
relative performance was also hurt by its overweight position in
mortgage-backed securities. Such bonds performed well for much of the period,
but fell more than other fixed income securities as yields rose at the end of
the period.
We positioned the Fund with a duration shorter than its benchmark during much
of the period, as we believed interest rates would rise. That strategy hurt the
Fund as interest rates continued to fall during the period. We extended the
Fund's duration and ended the period longer than the benchmark. However, that
long duration also hurt the Fund as the bond market continued its sell off late
in the period.
The Fund benefited from its overweight exposure to asset-backed securities,
which performed well during the period due to their high quality and low
prepayment risk. The Fund also was positioned with an underweight position in
agency bonds at the end of the period. That benefited performance as such bonds
performed relatively poorly due to widening spreads between agency bonds and
Treasury securities, as well as accounting-related concerns at
quasi-governmental agencies such as Fannie Mae and Freddie Mac.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
COMMERCIAL PAPER 15.0%
CORPORATE BONDS 33.9%
MUNICIPAL BONDS 0.6%
U.S. GOVERNMENT AGENCIES 38.1%
U.S. TREASURY OBLIGATIONS 8.6%
MONEY MARKETS 0.5%
COLLATERAL FOR SECURITIES LENDING 3.3%
MATURITY SCHEDULE
Less than 1 Year ...................... 17.8%
1 Year to 5 Years ..................... 15.4%
6 Year to 10 Years .................... 17.8%
11 Year to 20 Years ................... 21.7%
Over 20 Years ......................... 27.3%
46
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LEHMAN BROTHERS LIPPER CORPORATE DEBT FUNDS
INSTITUTIONAL SHARES GOVERNMENT/CREDIT BOND INDEX A RATED AVERAGE
3/20/95 $10000.00 $10000.00 $10000.00
7/95 10640.00 10887.00 10606.00
7/96 11044.00 11466.00 11114.00
7/97 12443.00 13228.00 12355.00
7/98 13395.00 14703.00 13262.00
7/99 13472.00 14591.00 13327.00
7/00 14071.00 15647.00 13880.00
7/01 15977.00 17724.00 15554.00
7/02 16786.00 18766.00 16323.00
7/03 17590.00 20102.00 17309.00
AVERAGE ANNUAL TOTAL RETURN1
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION ENDING VALUE 3
-------------- ------ ------ --------------- --------------
Institutional Shares 3/20/95 4.79% 5.60% 6.99% $ 17,590
-------------- ------ ------ --------------- --------------
Class A Shares* 3/22/95 -0.30% 4.35% 6.12% $ 16,425
-------------- ------ ------ --------------- --------------
Class B Shares** 3/20/95 -1.26% 4.22% 5.92% $ 16,181
-------------- ------ ------ --------------- --------------
Class C Shares*** 3/20/95 3.75% 4.54% 5.92% $ 16,179
-------------- ------ ------ --------------- --------------
Advisor Shares 3/20/95 4.25% 5.09% 6.46% $ 16,883
-------------- ------ ------ --------------- --------------
Lehman Brothers Government/Credit
Bond Index2 7.12% 6.90% 7.78% $ 20,102
-------------- ------ ------ --------------- --------------
Lipper Corporate Debt Funds
A Rated Average2 6.04% 5.42% 6.80% $ 17,309
-------------- ------ ------ --------------- --------------
*Reflects the maximum sales charge of 4.75%.
**Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS GOVERNMENT/CREDIT
BOND INDEX AND THE LIPPER CORPORATE DEBT FUNDS A RATED AVERAGE. THE LEHMAN
BROTHERS GOVERNMENT/CREDIT BOND INDEX IS COMPRISED OF U.S. TREASURIES ISSUES,
DEBT OF U.S. GOVERNMENT AGENCIES, CORPORATE DEBT GUARANTEED BY THE U.S.
GOVERNMENT AND ALL PUBLICLY ISSUED, FIXED RATE, NONCONVERTIBLE INVESTMENT-GRADED
DOLLAR DENOMINATED, SEC-REGISTERED CORPORATE DEBT. THE LIPPER CORPORATE DEBT
FUNDS A RATED AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE
MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE LEHMAN
BROTHERS GOVERNMENT/CREDIT BOND INDEX IS AN UNMANAGED INDEX AND DOES NOT REFLECT
THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT
MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER CORPORATE A RATED DEBT
FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE
VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH
THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME
FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO
OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD BOND FUND CLASS A
SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INVESTMENT SHARES WITH
AN INCEPTION DATE OF MARCH 22, 1995, ADJUSTED FOR THE MAXIMUM SALES CHARGE.
CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE
PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH
DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE
FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE
PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR
ADVISOR SHARES. ON OCTOBER 29, 2001, THE KENT INCOME FUND MERGED WITH THE FIFTH
THIRD QUALITY BOND FUND AND BECAME THE FIFTH THIRD BOND FUND. DURING THE PERIOD
SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
47
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
AN INTERVIEW WITH
JOHN L. CASSADY III, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003.
HOW WAS THE FUND MANAGED, AND WHAT CONTRIBUTED TO THE FUND'S UNDERPERFORMANCE
DURING THE PERIOD?
A. The Fund maintained a high-quality portfolio, that did not perform as well
as the lower-quality sector of the fixed-income market. Investors seeking
higher yields in a low-interest-rate environment found lower-quality bonds
attractive, especially as they believed that an economic recovery would
mitigate credit concerns among such issues. We believed that prospects for such
a recovery were uncertain, and did not think that the yield available on
lower-quality bonds justified their extra credit risk.
The Fund's investment in mortgage-backed securities also hurt relative
performance somewhat. Mortgage bonds--which offer high credit quality and
attractive yields--performed well at the beginning of the 12-month period ended
July 31, 2003, but rising interest rates late in the period led to selling that
pushed prices for mortgage securities down.
The Fund began the period with an average maturity slightly longer than its
benchmark, which helped its relative performance as interest rates continued to
fall during much of the period. We shortened that average maturity to neutral
weighting relative to the benchmark towards the middle of the period.
The Fund's performance benefited from falling rates and rising bond prices
during the majority of the period. However, the Fund gave back some of those
gains as rates rose and bond prices fell during the latter part of the period.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
COMMERCIAL PAPER 8.0%
CORPORATE BONDS 53.4%
U.S. GOVERNMENT AGENCIES 19.6%
COLLATERAL FOR SECURITIES LENDING 8.5%
MONEY MARKETS 3.6%
U.S. TREASURY OBLIGATIONS 6.9%
MATURITY SCHEDULE
Less than 1 Year ...................... 18.3%
1 Year to 5 Years ..................... 38.9%
6 Year to 10 Years .................... 30.3%
11 Year to 20 Years ................... 5.8%
Over 20 Years ......................... 6.7%
48
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL SHARES LEHMAN BROTHERS INTERMEDIATE LIPPER INTERMEDIATE INVESTMENT GRADE
GOVERNMENT/CREDIT BOND INDEX DEBT FUNDS AVERAGE
7/93 $10000.00 $10159.00 $10195.00
7/94 9966.00 10093.00 9958.00
7/95 10891.00 10984.00 10889.00
7/96 11342.00 11567.00 11446.00
7/97 12381.00 12616.00 12652.00
7/98 13200.00 13468.00 13557.00
7/99 13446.00 13971.00 13778.00
7/00 14050.00 14685.00 14416.00
7/01 15758.00 16519.00 16156.00
7/02 16727.00 17712.00 16987.00
7/03 17526.00 18875.00 17980.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- ------------
Institutional Shares 4.77% 5.83% 5.77% $ 17,526
------ ------ ------- ------------
Class A Shares* 0.89% 4.81% 5.15% $ 16,516
------ ------ ------- ------------
Class B Shares** -1.22% 4.40% 4.69% $ 15,810
------ ------ ------- ------------
Class C Shares*** 3.78% 4.73% 4.69% $ 15,810
------ ------ ------- ------------
Lehman Brothers Intermediate
Government/Credit Bond Index2 6.57% 6.98% 6.56% $ 18,875
------ ------ ------- ------------
Lipper Intermediate Investment
Grade Debt Funds Average2 5.72% 5.73% 6.02% $ 17,980
------ ------ ------- ------------
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
*** Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX AND THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT
FUNDS AVERAGE. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX IS
COMPRISED OF U.S. TREASURIES ISSUES, DEBT OF U.S. GOVERNMENT AGENCIES, CORPORATE
DEBT GUARANTEED BY THE U.S. GOVERNMENT AND ALL PUBLICLY ISSUED, FIXED RATE,
NONCONVERTIBLE INVESTMENT-GRADE, DOLLAR DENOMINATED, SEC-REGISTERED CORPORATE
DEBT. THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE IS THE AVERAGE
OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER,
INC. FALLING INTO THIS CATEGORY. THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF
FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND
ACCOUNTING FEES. HOWEVER, THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS
AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE
VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH
THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD INTERMEDIATE BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF
THE KENT INTERMEDIATE BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD
INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT
INTERMEDIATE BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF NOVEMBER 25,
1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE
INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND
CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. ON OCTOBER 29, 2001, THE KENT
INTERMEDIATE BOND FUND MERGED WITH THE FIFTH THIRD BOND FUND FOR INCOME AND
BECAME THE FIFTH THIRD INTERMEDIATE BOND FUND. DURING THE PERIOD SHOWN, THE
ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES.
HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
49
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
AN INTERVIEW WITH
JOHN L. CASSADY III, PORTFOLIO MANAGER
Q. THE FUND'S INSTITUTIONAL SHARES OUTPERFORMED ITS INDEX, THE LEHMAN BROTHERS
1-3 YEAR GOVERNMENT BOND INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003.
HOW DID YOU MANAGE THE FUND DURING THAT PERIOD, AND WHAT CONTRIBUTED TO THE
FUND'S PERFORMANCE?
A. The Federal Reserve Board (the "Fed") lowered short-term interest rates
twice during the 12- month period ended July 31, 2003, for a total reduction of
0.75 percentage points. The Fed's easing policy helped reduce yields on
short-term bonds during most of the period, pushing up prices on those issues.
That trend boosted the Fund's returns. The Fund gave back some of those gains
when bond yields rebounded late in the period.
We maintained a high-quality portfolio throughout the period--in part because
this Fund typically holds a bias toward high-quality bonds, but also because we
were concerned that further corporate scandal could cause problems for
lower-quality issues. This strategy hurt the Fund's performance relative to its
benchmark, because low-quality bonds led the fixed-income markets.
The Fund's relative performance did benefit from our decision to overweight
corporate bonds, which outperformed government issues. In addition, the Fund
began the period with a duration slightly longer than that of its benchmark.
That boosted returns as yields fell during the first three-quarters of the
period. We reduced the Fund's duration in the first quarter so that it was
somewhat shorter than the duration of the benchmark. That move also helped
relative returns, as yields rose late in the period.
++PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
CORPORATE BONDS 51.2%
FOREIGN BONDS 0.9%
U.S. GOVERNMENT AGENCIES 31.5%
U.S. TREASURY OBLIGATIONS 8.6%
MONEY MARKETS 2.5%
COLLATERAL FOR SECURITIES LENDING 5.3%
MATURITY SCHEDULE
Less than 1 Year ...................... 21.0%
1 Year to 5 Years ..................... 72.7%
6 Year to 10 Years .................... 4.4%
11 Year to 20 Years ................... 1.9%
50
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL SHARES LEHMAN BROTHERS 1-3 LIPPER SHORT INVESTMENT
GOVERNMENT BOND INDEX GRADE DEBT FUNDS AVERAGE
7/93 $10000.00 $10083.00 $10091.00
7/94 10209.00 10221.00 10182.00
7/95 10916.00 10950.00 10849.00
7/96 11430.00 11549.00 11426.00
7/97 12250.00 12394.00 12288.00
7/98 12947.00 13153.00 12993.00
7/99 13462.00 13795.00 13482.00
7/00 14114.00 14512.00 14163.00
7/01 15531.00 15940.00 15529.00
7/02 16302.00 17056.00 16181.00
7/03 16828.00 17562.00 16693.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
----- ------ ------- -------------
Institutional Shares 3.23% 5.38% 5.34% $ 16,828
----- ------ ------- -------------
Class A Shares* -0.57% 4.51% 4.82% $ 16,014
----- ------ ------- -------------
Lehman Brothers 1-3 Year
Government Bond Index2 2.96% 5.95% 5.79% $ 17,562
----- ------ ------- -------------
Lipper Short Investment
Grade Debt Funds Average2 3.55% 5.19% 5.25% $ 16,693
----- ------ ------- -------------
*Reflects the maximum sales charge of 3.50%.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS 1-3 YEAR GOVERNMENT
BOND INDEX AND THE LIPPER SHORT INVESTMENT GRADE DEBT FUNDS AVERAGE. THE LEHMAN
BROTHERS 1-3 YEAR GOVERNMENT BOND INDEX TRACKS THE PERFORMANCE OF U.S. TREASURY
ISSUES AND PUBLICLY ISSUED DEBT OF U.S. GOVERNMENT AGENCIES WITH MATURITIES OF
ONE TO THREE YEARS. THE LIPPER SHORT INTERMEDIATE INVESTMENT GRADE DEBT FUNDS
AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS
DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE LEHMAN BROTHERS 1-3
YEAR GOVERNMENT BOND INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF
FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND
ACCOUNTING FEES. HOWEVER, THE LIPPER SHORT INVESTMENT GRADE DEBT FUNDS AVERAGE
AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED
SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST
IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD SHORT TERM BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
KENT SHORT TERM BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD
SHORT TERM BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT SHORT
TERM BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF DECEMBER 4, 1992,
ADJUSTED FOR THE MAXIMUM SALES CHARGE. ON OCTOBER 29, 2001, THE KENT SHORT TERM
BOND FUND BECAME THE FIFTH THIRD SHORT TERM BOND FUND. DURING THE PERIOD SHOWN,
THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
51
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
AN INTERVIEW WITH
JOHN L. CASSADY III, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT BOND INDEX, DURING THE 12 MONTHS ENDED JULY 31, 2003. HOW WAS THE
FUND MANAGED DURING THE PERIOD, AND WHAT CONTRIBUTED TO THAT UNDERPERFORMANCE?
A. The Fund's exposure to mortgage-backed bonds hurt performance, as such bonds
fell more than other fixed-income securities when interest rates began to rise
at the end of the 12-month period ended July 31, 2003. In addition, the Fund's
high-quality portfolio did not match the strong performance of lower-quality,
fixed-income securities during the period.
The Fund was positioned with an average maturity shorter than its benchmark
because we anticipated that interest rates would move higher. That strategy
hurt performance as interest rates continued to fall during the period.
Therefore, we extended the Fund's average maturity longer than that of its
benchmark. That move also hurt performance as interest rates eventually began to
rise late in the period and bond prices fell.
The Fund benefited from its underweight position in agency bonds, which
performed poorly during the period. The Fund also benefited from its exposure to
Treasury inflation-protected securities (TIPS), which offered price stability as
interest rates rose late in the period.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
U.S. GOVERNMENT AGENCIES 64.6%
U.S. TREASURY OBLIGATIONS 33.7%
MONEY MARKETS 1.7%
MATURITY SCHEDULE
Less than 1 Year ...................... 19.0%
1 Year to 5 Years ..................... 31.9%
6 Year to 10 Years .................... 32.4%
11 Year to 20 Years ................... 9.6%
Over 20 Years ......................... 7.1%
52
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
INSTITUTIONAL SHARES LEHMAN BROTHERS INTERMEDIATE LIPPER SHORT-INTERMEDIATE U.S.
GOVERNMENT BOND INDEX GOVERNMENT BOND FUNDS AVERAGE
7/93 $10000.00 $10149.00 $10121.00
7/94 10011.00 10092.00 10012.00
7/95 10778.00 10938.00 10735.00
7/96 11169.00 11507.00 11264.00
7/97 12043.00 12495.00 12161.00
7/98 12786.00 13348.00 12894.00
7/99 13190.00 13888.00 13272.00
7/00 13763.00 14605.00 13898.00
7/01 15291.00 16319.00 15416.00
7/02 16445.00 17723.00 16561.00
7/03 16969.00 18436.00 17078.00
AVERAGE ANNUAL TOTAL RETURN 1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 3.19% 5.82% 5.43% $ 16,969
------ ------ ------- -------------
Class A Shares* -2.05% 4.55% 4.79% $ 15,974
------ ------ ------- -------------
Class C Shares** 2.12% 4.88% 4.47% $ 15,485
------ ------ ------- -------------
Lehman Brothers Intermediate
Government Bond Index2 4.03% 6.67% 6.31% $ 18,436
------ ------ ------- -------------
Lipper Short-Intermediate U.S.
Government Bond Funds Average2 2.65% 5.54% 5.49% $ 17,078
------ ------ ------- -------------
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT BOND INDEX AND THE LIPPER SHORT-INTERMEDIATE U.S. GOVERNMENT BOND
FUNDS AVERAGE. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX IS
GENERALLY REPRESENTATIVE OF INTERMEDIATE-TERM GOVERNMENT BONDS. THE LIPPER
SHORT-INTERMEDIATE U.S. GOVERNMENT BOND FUNDS AVERAGE IS THE AVERAGE OF THE
TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC.
FALLING INTO THIS CATEGORY. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND
INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A
MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE
LIPPER SHORT-INTERMEDIATE U.S. GOVERNMENT BOND FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION FOR FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN THE
UNDERLYING SECURITIES.
1 INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998.THE
PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE
REPRESENT THE PERFORMANCE FOR CLASS A SHARES. CLASS C SHARES WERE INITIALLY
OFFERED ON APRIL 24, 1996. THE PERFORMANCE FIGURES FOR CLASS C SHARES FOR
PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS
ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS C SHARES.
DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED
FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN
EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
53
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
AN INTERVIEW WITH
MICHAEL J. MARTIN, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK INDEX, THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX, DURING THE 12 MONTHS THROUGH THE PERIOD ENDED JULY 31, 2003. HOW
WAS THE FUND MANAGED DURING THE PERIOD, AND WHAT CONTRIBUTED TO ITS
PERFORMANCE?
A. The Fund maintained a relatively short average maturity during the 12-month
period ended July 31, 2003, with an overweight position among intermediate-term
municipal bonds in the 15- to 20-year range. Such bonds performed relatively
well during the period. The Fund also benefited from its underweight exposure
to California's municipal market, which was very volatile due to the state's
fiscal problems. We maintained a high credit quality within the portfolio. This
approach allowed the Fund to avoid volatility in other sectors, such as
municipal bonds that are supported by tobacco settlement payments.
The Fund also benefited from its investment in bonds that were pre-refunded
during the period as municipalities took advantage of low interest rates to
refinance their debt. The Fund's performance suffered slightly from an
underweight position in the hospital sector, which performed well during the
period.
The municipal market benefited from its relative stability compared to the
corporate bond market. Corporate bonds came under intense scrutiny by investors
during much of the period, and many investors sought the favorable after-tax
income and relative safety of the municipal market.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
MUNICIPAL BONDS 97.2%
MONEY MARKETS 2.8%
MATURITY SCHEDULE
Less than 1 Year ...................... 2.9%
1 Year to 5 Years ..................... 12.9%
6 Year to 10 Years .................... 39.8%
11 Year to 20 Years ................... 40.3%
Over 20 Years ......................... 4.1%
54
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LEHMAN BROTHERS LIPPER GENERAL MUNICIPAL
INSTITUTIONAL SHARES MUNICIPAL BOND INDEX DEBT FUNDS AVERAGE
3/20/95 $10000.00 $10000.00 $10000.00
7/95 10288.00 10469.00 10260.00
7/96 10876.00 11020.00 10876.00
7/97 11947.00 12150.00 11986.00
7/98 12546.00 12878.00 12634.00
7/99 12769.00 13249.00 12779.00
7/00 13288.00 13820.00 13048.00
7/01 14603.00 15212.00 14285.00
7/02 15563.00 16233.00 15040.00
7/03 16058.00 16817.00 15398.00
AVERAGE ANNUAL TOTAL RETURN1
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION ENDING VALUE 3
-------------- ------ ------- --------------- -------------
Institutional Shares 3/20/95 3.18% 5.06% 5.83% $ 16,058
-------------- ------ ------- --------------- -------------
Class A Shares* 3/31/95 -1.87% 3.82% 4.96% $ 14,974
-------------- ------ ------- --------------- -------------
Class B Shares** 3/20/95 -2.63% 3.67% 4.76% $ 14,756
-------------- ------ ------- --------------- -------------
Class C Shares*** 3/20/95 2.31% 4.03% 4.78% $ 14,772
-------------- ------ ------- --------------- -------------
Advisor Shares 3/20/95 2.76% 4.57% 5.31% $ 15,418
-------------- ------ ------- --------------- -------------
Lehman Brothers Municipal
Bond Index2 3.60% 5.48% 6.44% $ 16,817
------ ------- --------------- -------------
Lipper General Municipal
Debt Funds Average2 2.38% 4.06% 5.31% $ 15,398
------ ------- --------------- -------------
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
*** Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
AND THE LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS GENERALLY REPRESENTATIVE OF THE MUNICIPAL BOND MARKET.
THE LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL
RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING
INTO THIS CATEGORY. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS UNMANAGED AND
DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER GENERAL
MUNICIPAL DEBT FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE DEDUCTION OF
FEES FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST DIRECTLY IN AN
INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
KENT TAX-FREE INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH
20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD
MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT TAX-FREE
INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 31, 1995, AND IS
ADJUSTED TO REFLECT APPLICABLE SALES CHARGE. CLASS B AND CLASS C SHARES WERE
INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND
CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON
OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR
TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED
TO REFLECT EXPENSES FOR ADVISOR SHARES. ON OCTOBER 29, 2001, THE KENT TAX-FREE
INCOME FUND BECAME THE FIFTH THIRD MUNICIPAL BOND FUND. DURING THE PERIOD SHOWN,
THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FROM ITS INCEPTION TO THE PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
55
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
AN INTERVIEW WITH
MICHAEL J. MARTIN, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARKS, THE LEHMAN BROTHERS THREE-YEAR
GENERAL OBLIGATION AND FIVE-YEAR GENERAL OBLIGATION BOND INDEX, DURING THE 12
MONTHS ENDED JULY 31, 2003. HOW WAS THE FUND MANAGED DURING THE PERIOD, AND
WHAT CONTRIBUTED TO THE FUND'S UNDERPERFORMANCE?
A. We positioned the Fund with an average maturity slightly lower than that of
its benchmark indices. That strategy hurt performance given that interest rates
fell to historically low levels. The Fund benefited, however, from its
overweight position (relative to its benchmark indices) among bonds in the
four- to six-year range, which performed well during the 12-month period ended
July 31, 2003. The Fund also underweighted California municipal bonds, which
did poorly due to the state's fiscal problems. We also avoided municipal bonds
supported by tobacco settlements, which performed poorly during the period.
Meanwhile, the Fund was hurt slightly by its high-quality portfolio, which held
a greater percentage of AAA-rated municipal bonds than its index. The lower
yields on such higher-quality municipal bonds reduced the Fund's return. We
also held a relatively small position in bonds that have the longest maturities
compared to the index given our interest rate expectations. That, combined with
an overweight position in bonds at the short end of the intermediate sector,
contributed to the Fund's underperformance.
The municipal market benefited from its relative stability compared to the
corporate bond market. Corporate bonds came under intense scrutiny by investors
during much of the period, and many investors sought the favorable after-tax
income and relative safety of the municipal market.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
MUNICIPAL BONDS 97.1%
MONEY MARKETS 2.9%
MATURITY SCHEDULE
Less than 1 Year ...................... 7.0%
1 Year to 5 Years ..................... 30.8%
6 Year to 10 Years .................... 55.6%
11 Year to 20 Years ................... 6.6%
56
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LEHMAN BROTHER THREE-YEAR LEHMAN BROTHERS FIVE-YEAR LIPPER INTERMEDIATE MUNICIPAL
INSTITUTIONAL SHARES GENERAL OBLIGATIONS INDEX GENERAL OBLIGATIONS INDEX DEBT FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10000.00 $10000.00
7/94 10147.00 10348.00 10366.00 10697.00
7/95 10881.00 10620.00 10570.00 10975.00
7/96 11354.00 11474.00 11620.00 11711.00
7/97 12255.00 12003.00 12174.00 12340.00
7/98 12802.00 12644.00 12967.00 13373.00
7/99 13118.00 13311.00 13708.00 14037.00
7/00 13660.00 13501.00 13720.00 14375.00
7/01 14831.00 14549.00 15026.00 14875.00
7/02 15721.00 15465.00 16040.00 16170.00
7/03 16136.00 15963.00 16650.00 17166.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- -------------
Institutional Shares 2.64% 4.74% 4.90% $ 16,136
------ ------ ------- -------------
Class A Shares* -1.09% 3.74% 4.31% $ 15,249
------ ------ ------- -------------
Class B Shares** -3.26% 3.34% 3.85% $ 14,587
------ ------ ------- -------------
Class C Shares*** 1.64% 3.68% 3.85% $ 14,584
------ ------ ------- -------------
Lehman Brothers Three-Year
General Obligation Index2 3.22% 4.94% 4.92% $ 15,963
------ ------ ------- -------------
Lehman Brothers Five-Year
General Obligation Index2 3.80% 5.44% 5.42% $ 16,650
------ ------ ------- -------------
Lipper Intermediate Municipal
Debt Funds Average2 2.70% 4.59% 5.09% $ 17,166
------ ------ ------- -------------
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
***Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS THREE- AND FIVE-YEAR
GENERAL OBLIGATION BOND INDICES AND THE LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS
AVERAGE. THE LEHMAN BROTHERS THREE- AND FIVE-YEAR GENERAL OBLIGATION BOND
INDICES ARE GENERALLY REPRESENTATIVE OF INVESTMENT GRADE FIXED RATE DEBT
OBLIGATIONS ISSUED BY STATE AND LOCAL GOVERNMENT ENTITIES, WITH MATURITIES OF
NOT LESS THAN FOUR YEARS BUT NO MORE THAN SIX YEARS. THE LIPPER INTERMEDIATE
MUNICIPAL DEBT FUNDS AVERAGE IS THE AVERAGE OF THE TOTAL RETURNS REPORTED BY ALL
OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING INTO THIS CATEGORY. THE
LEHMAN BROTHERS THREE- AND FIVE-YEAR GENERAL OBLIGATION BOND INDICES ARE
UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND
SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER
INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE
DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST
DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR FIFTH
THIRD INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE
PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INSTITUTIONAL SHARES WITH AN
INCEPTION DATE OF DECEMBER 16, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE
FIGURES FOR THE FIFTH THIRD INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE
PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INVESTMENT SHARES WITH AN
INCEPTION DATE OF DECEMBER 18, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE.
CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE
PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH
DATE REPRESENT THE PERFORMANCE FOR THE KENT INTERMEDIATE TAX-FREE FUND
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. ON OCTOBER 29, 2001, THE KENT
INTERMEDIATE TAX-FREE FUND MERGED WITH THE FIFTH THIRD MUNICIPAL BOND FUND AND
BECAME THE FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND. DURING THE PERIOD
SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
57
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND+
AN INTERVIEW WITH
JAMES M. BERNARD, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003. WHAT FACTORS AFFECTED
THE PERFORMANCE OF THE FUND DURING THAT PERIOD?
A. Yields on Ohio municipal bonds fell during most of the 12-month period ended
July 31, 2003, boosting the Fund's net asset prices. As bond yields rose late
in the period, asset prices fell which reduced the Fund's gains.
We maintained an average duration slightly shorter than that of the benchmark
during most of the period. That strategy caused the Fund to lag the index as
yields fell, but helped boost relative performance late in the period by
reducing the Fund's losses when yields rose.
We maintained the Fund's high credit quality throughout the period. We did not
believe that the yield advantage of lower-quality bonds justified their
additional risk. That approach slightly reduced relative and absolute returns
during the period. Higher-quality bonds offered lower coupons and less price
appreciation than lower-quality issues. The Fund's allocations to various
sectors within the Ohio municipal bond market did not have a significant impact
on relative returns.
+SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON ONE'S TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
MUNICIPAL BONDS 98.0%
MONEY MARKETS 2.0%
MATURITY SCHEDULE
Less than 1 Year ...................... 4.7%
1 Year to 5 Years ..................... 38.9%
6 Year to 10 Years .................... 49.1%
11 Year to 20 Years ................... 7.3%
58
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LIPPER OHIO INTERMEDIATE MUNICIPAL
INSTITUTIONAL SHARES LEHMAN BROTHERS MUNICIPAL BOND INDEX DEBT FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10000.00
7/94 10195.00 10187.00 10186.00
7/95 10911.00 10989.00 10778.00
7/96 11383.00 11714.00 11287.00
7/97 12235.00 12916.00 12149.00
7/98 12771.00 13690.00 12694.00
7/99 13010.00 14083.00 12925.00
7/00 13403.00 14691.00 13330.00
7/01 14512.00 16171.00 14386.00
7/02 15362.00 17256.00 15218.00
7/03 15769.00 17878.00 15602.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- --------------
Institutional Shares 2.65% 4.31% 4.66% $ 15,769
------ ------ ------- --------------
Class A Shares* -2.45% 3.05% 4.02% $ 14,835
------ ------ ------- --------------
Class B Shares** -3.37% 2.53% 3.43% $ 14,010
------ ------ ------- --------------
Class C Shares*** 1.65% 3.38% 3.73% $ 14,423
------ ------ ------- --------------
Lehman Brothers
Municipal Bond Index2 3.60% 5.48% 5.98% $ 17,878
------ ------ ------- --------------
Lipper Ohio Intermediate Municipal
Debt Funds Average2 2.27% 4.02% 4.54% $ 15,602
------ ------ ------- --------------
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
*** Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARK,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
AND THE LIPPER OHIO INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE. THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX IS GENERALLY REPRESENTATIVE OF THE MUNICIPAL BOND
MARKET. THE LIPPER OHIO INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE IS THE AVERAGE
OF THE TOTAL RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER,
INC. FALLING INTO THIS CATEGORY. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX DOES
NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER OHIO
INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE AND THE FUND'S PERFORMANCE REFLECT THE
DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST
DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS OR
SECURITIES.
1 INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998. THE
PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE
REPRESENT THE PERFORMANCE FOR CLASS A SHARES. THE CLASS B AND CLASS C SHARES
WERE INITIALLY OFFERED ON OCTOBER 11, 2000 AND APRIL 24, 1996, RESPECTIVELY. THE
PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH
DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS ADJUSTED TO REFLECT
EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
59
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND+
AN INTERVIEW WITH
SARAH M. QUIRK, PORTFOLIO MANAGER
Q. THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS THREE-YEAR
GENERAL OBLIGATION INDEX, DURING THE 12-MONTH PERIOD ENDED JULY 31, 2003. HOW
DID YOU MANAGE THE FUND DURING THAT PERIOD, AND WHAT CONTRIBUTED TO THE FUND'S
UNDERPERFORMANCE?
A. The municipal markets posted gains during most of the
12-month period ended July 31, 2003, which helped the Fund's performance. Those
gains were driven by strong investor demand for the relative safety and
historically high relative yields offered by municipal bonds during the period.
The Fund also benefited from its exposure to the hospital sector, which
performed well.
We maintained a high average credit rating of AA (as rated by Standard &
Poor's) during the period. While lower-quality bonds performed relatively well,
the extra yield available on such bonds seemed insufficient to justify their
additional risk.
The Fund's portfolio had an average maturity shorter than its benchmark early in
the period, because we believed that interest rates were likely to rise. That
strategy caused the Fund to miss out on some potential returns when municipal
prices rose. The Fund's cash holdings hovered around 10% of assets during the
period, due to large investment inflows and a limited supply of Michigan
municipal bonds.
+SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON ONE'S TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
++ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
PORTFOLIO COMPOSITION AS A PERCENTAGE OF VALUE OF INVESTMENTS++
PORTFOLIO COMPOSITION
(PIE CHART)
MUNICIPAL BONDS 97.8%
MONEY MARKETS 2.2%
MATURITY SCHEDULE
Less than 1 Year ...................... 20.5%
1 Year to 5 Years ..................... 61.6%
6 Year to 10 Years .................... 17.9%
60
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
(Mountain Chart)
LEHMAN BROTHERS THREE-YEAR LIPPER OTHER STATES SHORT-INTERMEDIATE
INSTITUTIONAL SHARES GENERAL OBLIGATION INDEX MUNICIPAL DEBT FUNDS AVERAGE
7/93 $10000.00 $10000.00 $10097.00
7/94 10284.00 10348.00 10283.00
7/95 10817.00 10620.00 10783.00
7/96 11247.00 11474.00 11274.00
7/97 11911.00 12003.00 11989.00
7/98 12392.00 12644.00 12522.00
7/99 12752.00 13311.00 12874.00
7/00 13175.00 13501.00 13271.00
7/01 14143.00 14549.00 14231.00
7/02 14942.00 15465.00 14977.00
7/03 15345.00 15963.00 15366.00
AVERAGE ANNUAL TOTAL RETURN1
1 YEAR 5 YEAR 10 YEAR ENDING VALUE 3
------ ------ ------- --------------
Institutional Shares 2.70% 4.37% 4.38% $ 15,345
------ ------ ------- --------------
Class A Shares* -2.44% 3.18% 3.71% $ 14,392
------ ------ ------- --------------
Class B Shares** -3.27% 2.97% 3.29% $ 13,823
------ ------ ------- --------------
Class C Shares*** 1.60% 3.32% 3.29% $ 13,819
------ ------ ------- --------------
Lehman Brothers Three-Year
General Obligation Index2 3.22% 4.94% 4.92% $ 15,963
------ ------ ------- --------------
Lipper Other States Short-Intermediate
Municipal Debt Funds Average2 2.42% 3.94% 4.39% $ 15,366
------ ------ ------- --------------
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
*** Reflects the maximum applicable contingent deferred sales charge.
THE CHART ABOVE REPRESENTS A COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE INDICATED SHARE CLASS VERSUS A SIMILAR INVESTMENT IN THE FUND'S BENCHMARKS,
AND REPRESENTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS IN THE FUND. THE
FUND'S PERFORMANCE IS MEASURED AGAINST THE LEHMAN BROTHERS THREE-YEAR GENERAL
OBLIGATION MUNICIPAL BOND INDEX AND THE LIPPER OTHER STATES SHORT-INTERMEDIATE
MUNICIPAL DEBT FUNDS AVERAGE. THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION
MUNICIPAL BOND INDEX TRACKS THE PERFORMANCE OF INVESTMENT GRADE FIXED RATE DEBT
OBLIGATIONS ISSUED BY STATE AND LOCAL GOVERNMENT ENTITIES. THE LIPPER OTHER
STATES SHORT-INTERMEDIATE MUNICIPAL DEBT AVERAGE IS THE AVERAGE OF THE TOTAL
RETURNS REPORTED BY ALL OF THE MUTUAL FUNDS DESIGNATED BY LIPPER, INC. FALLING
INTO THIS CATEGORY. THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION MUNICIPAL
BOND INDEX DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND
SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. HOWEVER, THE LIPPER
OTHER STATES SHORT-INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE AND THE FUND'S
PERFORMANCE REFLECT THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS
UNDERLYING MUTUAL FUNDS OR SECURITIES.
1 FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF
THE KENT MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION
DATE OF MAY 3, 1993. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE
OF THE KENT MICHIGAN MUNICIPAL BOND FUND INVESTMENT SHARES WITH AN INCEPTION
DATE OF MAY 11, 1993, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C
SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR
CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE
PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ON OCTOBER 29, 2001,
THE KENT MICHIGAN MUNICIPAL BOND FUND BECAME THE FIFTH THIRD MICHIGAN MUNICIPAL
BOND FUND. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR
REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS
NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
2 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
3 THE ENDING VALUE REPRESENTS THE VALUE OF A $10,000 INVESTMENT IN THE INDICATED
SHARE CLASS FOR THE 10-YEAR PERIOD ENDED JULY 31, 2003.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
61
GLOSSARY OF TERMS
THE GROSS DOMESTIC PRODUCT (GDP) IS THE MONETARY VALUE OF ALL THE GOODS AND
SERVICES PRODUCED BY AN ECONOMY OVER A SPECIFIED PERIOD. IT INCLUDES
CONSUMPTION, GOVERNMENT PURCHASES, INVESTMENTS, AND EXPORTS MINUS IMPORTS.
THE LEHMAN BROTHERS 1-3 YEAR GOVERNMENT BOND INDEX CONSISTS OF U.S. TREASURY
ISSUES AND PUBLICLY ISSUED DEBT OF U.S. GOVERNMENT AGENCIES WITH MATURITIES OF
ONE TO THREE YEARS.
THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED
PERFORMANCE BENCHMARK FOR INVESTMENT-GRADE FIXED-RATE DEBT ISSUES, INCLUDING
GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH
MATURITIES OF AT LEAST ONE YEAR.
THE LEHMAN BROTHERS FIVE-YEAR GENERAL OBLIGATIONS INDEX IS GENERALLY
REPRESENTATIVE OF INVESTMENT GRADE FIXED RATE DEBT OBLIGATIONS ISSUED BY STATE
AND LOCAL GOVERNMENT ENTITIES, WITH MATURITIES OF NO MORE THAN SIX YEARS.
THE LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX IS COMPOSED OF ALL BONDS THAT
ARE INVESTMENT GRADE RATED BAA OR HIGHER BY MOODY'S OR BBB OR HIGHER BY S&P,
IF UNRATED BY MOODY'S. ISSUES MUST HAVE A LEAST ONE YEAR TO MATURITY. TOTAL
RETURN COMPRISES PRICE APPRECIATION/DEPRECIATION AND INCOME AS A PERCENTAGE OF
THE ORIGINAL INVESTMENT. INDICES ARE REBALANCED MONTHLY BY MARKET
CAPITALIZATION.
THE LEHMAN BROTHERS INTERMEDIATE CREDIT BOND INDEX IS COMPRISED OF PUBLICLY
ISSUED, FIXED RATE, NON-CONVERTIBLE INVESTMENT GRADE DOLLAR-DENOMINATED,
SEC-REGISTERED CORPORATE DEBT. INCLUDED ARE DEBTS ISSUED OR GUARANTEED BY
FOREIGN SOVEREIGN GOVERNMENTS, MUNICIPALITIES, GOVERNMENTAL AGENCIES OR
INTERNATIONAL AGENCIES.
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND CREDIT INDEX IS COMPRISED OF
ALL PUBLICLY ISSUED, NON-CONVERTIBLE DOMESTIC DEBT OF THE U.S. GOVERNMENT OR
ANY AGENCY THEREOF, OR ANY QUASI-FEDERAL CORPORATION AND OF CORPORATE DEBT
GUARANTEED BY THE U.S. GOVERNMENT. ONLY NOTES AND BONDS WITH MINIMUM
OUTSTANDING PRINCIPAL OF $1 MILLION AND MINIMUM MATURITY OF ONE YEAR AND
MAXIMUM MATURITY OF TEN YEARS ARE INCLUDED.
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX IS COMPOSED
OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF U.S.
GOVERNMENT AGENCIES AND THE U.S. TREASURY. THE DEBT ISSUES ALL MAINTAIN
MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS.
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS A BROAD MARKET PERFORMANCE
BENCHMARK FOR THE TAX-EXEMPT BOND MARKET. THE BONDS INCLUDED IN THIS INDEX
MUST HAVE A MINIMUM CREDIT RATING OF AT LEAST BAA. THEY MUST HAVE AN
OUTSTANDING PAR VALUE OF AT LEAST $3 MILLION AND BE ISSUED AS PART OF A
TRANSACTION OF AT LEAST $50 MILLION. THE INDEX INCLUDES BOTH ZERO COUPON BONDS
AND BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX.
THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATIONS INDEX IS A PRICE-WEIGHTED
AVERAGE BASED ON THE PRICE-ONLY PERFORMANCE OF 30 BLUE CHIP STOCKS (THE
AVERAGE IS COMPUTED BY ADDING THE PRICES OF THE 30 STOCKS AND DIVIDING BY A
DENOMINATOR, WHICH HAS BEEN ADJUSTED OVER THE YEARS FOR STOCKS SPLITS, STOCK
DIVIDENDS AND SUBSTITUTIONS OF STOCKS).
THE MERRILL LYNCH 100 TECHNOLOGY INDEX IS A EQUAL-DOLLAR WEIGHTED INDEX OF 100
STOCKS DESIGNED TO MEASURE THE PERFORMANCE OF A CROSS-SECTION OF LARGE,
ACTIVELY TRADED TECHNOLOGY STOCKS AND AMERICAN DEPOSITARY RECEIPTS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR
EAST (EAFE) INDEX IS A MARKET CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING
20 OF THE 48 COUNTRIES IN THE MSCI UNIVERSE AND REPRESENTING THE DEVELOPED
WORLD OUTSIDE OF NORTH AMERICA. EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY,
THEN AGGREGATED, WITHOUT CHANGE, INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE
DATA IS CALCULATED IN U.S. DOLLARS AND IN LOCAL CURRENCY.
THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) WORLD INDEX TRACKS THE STOCK
MARKETS OF 23 COUNTRIES, COMPRISING 1,482 SECURITIES, WITH VALUES EXPRESSED IN
U.S. DOLLARS.
THE RUSSELL 1000(R) INDEX MEASURES THE PERFORMANCE OF THE 1,000 LARGEST
COMPANIES IN THE RUSSELL 3000(R) INDEX, WHICH REPRESENTS APPROXIMATELY 92% OF
THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000(R) INDEX.
THE RUSSELL 1000(R) GROWTH INDEX MEASURES THE PERFORMANCE OF THE 1,000
SECURITIES FOUND IN THE RUSSELL UNIVERSE WITH HIGHER PRICE-TO-BOOK RATIOS AND
HIGHER FORECASTED GROWTH VALUES.
THE RUSSELL 1000(R) VALUE INDEX MEASURES THE PERFORMANCE OF THE 1,000
SECURITIES FOUND IN THE RUSSELL UNIVERSE WITH A LESS-THAN-AVERAGE GROWTH
ORIENTATION. COMPANIES IN THIS INDEX GENERALLY HAVE LOW PRICE-TO-BOOK AND
PRICE-TO-EARNING RATIOS, HIGHER DIVIDEND YIELDS AND LOWER FORECASTED GROWTH
VALUES.
THE RUSSELL 2000(R) GROWTH INDEX IS COMPRISED OF THE SECURITIES IN THE RUSSELL
2000(R) INDEX WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. COMPANIES IN
THIS INDEX TEND TO EXHIBIT HIGHER PRICE-TO-BOOK AND PRICE-TO-EARNINGS RATIOS.
THE RUSSELL 2000(R) VALUE INDEX IS COMPRISED OF THE SECURITIES IN THE RUSSELL
2000(R) INDEX WITH A LESS-THAN-AVERAGE GROWTH ORIENTATION. COMPANIES IN THIS
INDEX GENERALLY HAVE LOW PRICE-TO-BOOK AND PRICE-TO-EARNINGS RATIOS.
THE RUSSELL 3000(R) VALUE INDEX MEASURES THE PERFORMANCE OF THE 3,000
LARGEST U.S. COMPANIES BASED ON TOTAL MARKET CAPITALIZATION, WHICH REPRESENTS
APPROXIMATELY 98% OF THE INVESTABLE U.S. EQUITY MARKET.
62
GLOSSARY OF TERMS
THE RUSSELL MIDCAP(R) GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE
SECURITIES FOUND IN THE RUSSELL MIDCAP UNIVERSE WITH HIGHER PRICE-TO-BOOK
RATIOS AND HIGHER FORECASTED GROWTH VALUES. THE STOCKS ARE ALSO MEMBERS OF THE
RUSSELL 1000(R) GROWTH INDEX.
THE RUSSELL MIDCAP(R) VALUE INDEX MEASURES THE PERFORMANCE OF THOSE SECURITIES
FOUND IN THE RUSSELL UNIVERSE WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. THE STOCKS ARE ALSO MEMBERS OF THE RUSSELL 1000(R)
VALUE INDEX.
THE STANDARD & POOR'S 500 INDEX IS COMPRISED OF 500 SELECTED COMMON STOCKS,
MOST OF WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF
THE U.S. STOCK MARKET AS A WHOLE.
THE WILSHIRE 5000 INDEX MEASURES THE PERFORMANCE OF ALL U.S.-HEADQUARTERED
EQUITY SECURITIES WITH READILY AVAILABLE PRICE DATA.
THE LIPPER BALANCED FUNDS AVERAGE CONSISTS OF FUNDS WHOSE PRIMARY OBJECTIVE IS
TO CONSERVE PRINCIPAL BY MAINTAINING AT ALL TIMES A BALANCED PORTFOLIO OF BOTH
STOCKS AND BONDS. TYPICALLY, THE STOCK/BOND RATIO RANGES AROUND 60%/40%.
THE LIPPER EQUITY INCOME FUNDS AVERAGE CONSISTS OF FUNDS THAT SEEK RELATIVELY
HIGH CURRENT INCOME AND GROWTH OF INCOME THROUGH INVESTING 60% OR MORE OF THEIR
PORTFOLIO IN EQUITIES.
THE LIPPER FLEXIBLE INCOME FUNDS AVERAGE CONSISTS OF FUNDS THAT ALLOCATE THEIR
INVESTMENTS ACROSS VARIOUS ASSET CLASSES, INCLUDING DOMESTIC COMMON STOCKS,
BONDS, AND MONEY MARKET INSTRUMENTS WITH A FOCUS ON TOTAL RETURN.
THE LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE CONSISTS OF FUNDS THAT INVEST
AT LEAST 65% OF THEIR ASSETS IN MUNICIPAL DEBT ISSUES IN THE TOP FOUR CREDIT
RATINGS.
THE LIPPER GLOBAL FUNDS AVERAGE CONSISTS OF FUNDS THAT INVEST AT LEAST 25% OF
THEIR PORTFOLIO IN SECURITIES TRADED OUTSIDE OF THE UNITED STATES AND THAT MAY
OWN U.S. SECURITIES AS WELL.
THE LIPPER CORPORATE DEBT FUNDS A RATED AVERAGE CONSISTS OF FUNDS THAT INVEST
AT LEAST 65% OF THEIR ASSETS IN CORPORATE DEBT ISSUES RATED `A' OR BETTER OR
GOVERNMENT ISSUES.
THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE CONSISTS OF FUNDS
THAT INVEST AT LEAST 65% OF THEIR ASSETS IN INVESTMENT GRADE DEBT ISSUES
(RATED IN TOP FOUR GRADES) WITH DOLLAR-WEIGHTED AVERAGE MATURITIES OF FIVE TO
TEN YEARS.
THE LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE CONSISTS OF FUNDS THAT
INVEST IN MUNICIPAL DEBT ISSUES WITH DOLLAR-WEIGHTED AVERAGE MATURITIES OF FIVE-
TO TEN-YEARS.
THE LIPPER INTERNATIONAL FUNDS AVERAGE CONSISTS OF FUNDS THAT INVEST THEIR
ASSETS IN SECURITIES WITH PRIMARY TRADING MARKETS OUTSIDE OF THE UNITED STATES.
THE LIPPER LARGE-CAP CORE FUNDS AVERAGE CONSISTS OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST AT LEAST 75% OF THEIR EQUITY ASSETS IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASIS) GREATER THAN 300% OF THE
DOLLAR-WEIGHTED MEDIAN MARKET CAPITALIZATION OF THE MIDDLE 1,000 SECURITIES OF
THE S&P SUPERCOMPOSITE 1500 INDEX. LARGE-CAP CORE FUNDS HAVE MORE LATITUDE IN
THE COMPANIES IN WHICH THEY INVEST. THESE FUNDS TYPICALLY HAVE AN AVERAGE
PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK RATIO AND THREE-YEAR SALES-PER-SHARE
GROWTH VALUE, COMPARED TO THE S&P 500 INDEX.
THE LIPPER MULTI-CAP CORE FUNDS AVERAGE CONSISTS OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST IN A VARIETY OF MARKET CAPITALIZATION RANGES WITHOUT
CONCENTRATING 75% OF THEIR EQUITY ASSETS IN ANY ONE MARKET CAPITALIZATION
RANGE OVER AN EXTENDED PERIOD OF TIME.
THE LIPPER MID-CAP GROWTH FUNDS AVERAGE CONSISTS OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST AT LEAST 75% OF THEIR EQUITY ASSETS IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASIS) LESS THAN 300% OF THE
DOLLAR-WEIGHTED MEDIAN MARKET CAPITALIZATION OF THE MIDDLE 1,000 SECURITIES OF
THE S&P SUPERCOMPOSITE 1500 INDEX. MID-CAP GROWTH FUNDS TYPICALLY HAVE AN
ABOVE-AVERAGE PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK RATIO AND THREE-YEAR
SALES-PER-SHARE GROWTH VALUE, COMPARED TO THE S&P MIDCAP 400 INDEX.
THE LIPPER MID-CAP VALUE FUNDS AVERAGE CONSIST OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST AT LEAST 75% OF THEIR EQUITY ASSETS IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASES) LESS THAN 300% OF THE
DOLLAR-WEIGHTED MEDIAN MARKET CAPITALIZATION OF THE MIDDLE 1,000 SECURITIES OF
THE S&P SUPERCOMPOSITE 1500 INDEX. MID-CAP VALUE FUNDS TYPICALLY HAVE A
BELOW-AVERAGE PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK, AND THREE-YEAR
SALES-PER-SHARE GROWTH VALUE, COMPARED TO THE S&P MIDCAP 400 INDEX.
THE LIPPER MULTI-CAP CORE FUNDS AVERAGE CONSIST OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST IN A VARIETY OF MARKET CAPITALIZATION RANGES WITHOUT
CONCENTRATING 75% OF THEIR EQUITY ASSETS IN ANY ONE MARKET CAPITALIZATION
RANGE OVER AN EXTENDED PERIOD OF TIME. MULTI-CAP FUNDS TYPICALLY HAVE BETWEEN
25% TO 75% OF THEIR ASSETS INVESTED IN COMPANIES WITH MARKET CAPITALIZATIONS
(ON A THREE-YEAR WEIGHTED BASIS) ABOVE 300% OF THE DOLLAR-WEIGHTED MEDIAN
MARKET CAPITALIZATION OF THE MIDDLE 1,000 SECURITIES OF THE S&P SUPERCOMPOSITE
1500 INDEX.
THE LIPPER MULTI-CAP VALUE FUNDS AVERAGE CONSISTS OF FUNDS THAT, BY PORTFOLIO
PRACTICE, INVEST IN A VARIETY OF MARKET CAPITALIZATION RANGES, WITHOUT
CONCENTRATING 75% OF THEIR EQUITY ASSETS IN ANY ONE MARKET CAPITALIZATION
RANGE OVER AN EXTENDED PERIOD OF TIME. MULTI-CAP FUNDS WILL GENERALLY HAVE
BETWEEN 25% TO 75% OF THEIR ASSETS INVESTED IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASIS) ABOVE 300% OF THE
DOLLAR-WEIGHTED MEDIAN MARKET CAPITALIZATION OF THE S&P MID-CAP 400 INDEX.
63
GLOSSARY OF TERMS
MULTI-CAP VALUE FUNDS SEEK LONG-TERM GROWTH OF CAPITAL BY INVESTING IN
COMPANIES THAT ARE CONSIDERED TO BE UNDERVALUED RELATIVE TO A MAJOR UNMANAGED
STOCK INDEX BASED ON PRICE-TO-CURRENT EARNINGS, BOOK VALUE, ASSET VALUE OR
OTHER FACTORS. THESE FUNDS WILL NORMALLY HAVE A BELOW-AVERAGE
PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK RATIO AND THREE-YEAR EARNINGS GROWTH
FIGURE, COMPARED TO THE U S DIVERSIFIED MULTI-CAP FUNDS UNIVERSE AVERAGE.
THE LIPPER OHIO INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE CONSISTS OF FUNDS
THAT INVESTS AT LEAST 65% OF THEIR ASSETS IN MUNICIPAL DEBT ISSUES THAT ARE
EXEMPT FROM TAXATION IN OHIO, WITH DOLLAR-WEIGHTED AVERAGE MATURITIES OF FIVE
TO TEN YEARS.
THE LIPPER OTHER STATES SHORT INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE
CONSISTS OF FUNDS THAT INVEST IN MUNICIPAL DEBT ISSUES WITH DOLLAR-WEIGHTED
AVERAGE MATURITIES OF FIVE TO TEN YEARS AND ARE EXEMPT FROM TAXATION ON A
SPECIFIED CITY OR STATE BASIS.
THE LIPPER S&P 500 INDEX OBJECTIVE FUNDS AVERAGE CONSISTS OF FUNDS THAT ARE
PASSIVELY MANAGED, LIMITED-EXPENSE (MANAGEMENT FEE NO HIGHER THAN 0.50%) FUND
DESIGNED TO REPLICATE THE PERFORMANCE OF THE STANDARD & POOR'S 500 INDEX ON A
REINVESTED BASIS.
THE LIPPER SCIENCE AND TECHNOLOGY FUNDS AVERAGE CONSISTS OF FUNDS THAT INVESTS
AT LEAST 65% OF THEIR EQUITY PORTFOLIO IN SCIENCE AND TECHNOLOGY STOCKS.
THE LIPPER SHORT INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE CONSISTS OF
FUNDS THAT INVEST AT LEAST 65% OF THEIR ASSETS IN INVESTMENT GRADE DEBT ISSUES
(RATED IN TOP FOUR GRADES) WITH DOLLAR-WEIGHTED AVERAGE MATURITIES OF ONE TO
FIVE YEARS.
THE LIPPER SHORT INTERMEDIATE U.S. GOVERNMENT BOND FUNDS AVERAGE CONSISTS OF
FUNDS THAT INVEST AT LEAST 65% OF THEIR ASSETS IN SECURITIES ISSUED OR
GUARANTEED BY THE U.S. GOVERNMENT, ITS AGENCIES OR ITS INSTRUMENTALITIES, WITH
DOLLAR-WEIGHTED AVERAGE MATURITIES OF ONE TO FIVE YEARS.
THE LIPPER SMALL-CAP FUNDS AVERAGE CONSISTS OF FUNDS THAT BY PROSPECTUS OR
PORTFOLIO PRACTICE INVESTS PRIMARILY IN COMPANIES WITH MARKET CAPITALIZATIONS
LESS THAN $1 BILLION AT THE TIME OF PURCHASE.
THE LIPPER SMALL-CAP CORE FUNDS AVERAGE CONSISTS OF FUNDS THAT BY PORTFOLIO
PRACTICE, INVEST AT LEAST 75% OF THEIR EQUITY ASSETS IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASIS) LESS THAN 250% OF THE
DOLLAR-WEIGHTED MEDIAN OF THE SMALLEST 500 OF THE MIDDLE 1,000 SECURITIES OF
THE S&P SUPER COMPOSITE 1500 INDEX. SMALL-CAP CORE FUNDS HAVE MOR LATITUDE IN
THE COMPANIES IN WHICH THEY INVEST. THESE FUNDS TYPICALLY HAVE AN AVERAGE
PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK RATIO, AND THREE-YEAR SALES-PER-SHARE
GROWTH VALUE, COMPARED TO THE S&P SMALLCAP 600 INDEX.
THE LIPPER SMALL-CAP VALUE FUNDS AVERAGE CONSISTS OF FUNDS THAT BY PORTFOLIO
PRACTICE, INVEST AT LEAST 75% OF THEIR EQUITY ASSETS IN COMPANIES WITH MARKET
CAPITALIZATIONS (ON A THREE-YEAR WEIGHTED BASIS) LESS THAN 250% OF THE
DOLLAR-WEIGHTED MEDIAN OF THE SMALLEST 500 OF THE MIDDLE 1,000 SECURITIES OF
S&P SUPERCOMPOSITE 1500 INDEX. SMALL-CAP VALUE FUNDS TYPICALLY HAVE A
BELOW-AVERAGE PRICE-TO-EARNINGS RATIO, PRICE-TO-BOOK RATIO AND THREE-YEAR
SALES-PER-SHARE GROWTH VALUE, COMPARED TO THE S&P SMALLCAP 600 INDEX.
THE ABOVE INDICES ARE UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF FEES
ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND
ACCOUNTING FEES. HOWEVER, THE LIPPER AVERAGE'S PERFORMANCE REFLECTS THE
DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES. INVESTORS CANNOT INVEST
DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING MUTUAL FUNDS
OR SECURITIES.
64
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (98.4%)
Aaron Rents, Inc. 50,000 $ 1,428
ADTRAN, Inc. 60,000 2,930
Advance PCS * 60,000 2,273
Advanced Digital Information Corp. * 190,000 2,206
Advanced Neuromodulation
Systems, Inc.* 22,500 925
Advo, Inc. * 65,000 3,019
Airgas, Inc. 80,000 1,555
Albany International Corp. 105,000 2,999
Alliance Data Systems Corp. * 75,000 2,055
Alliant Techsystems, Inc. * 45,000 2,470
American Capital Strategies, Ltd. 95,000 2,672
American Medical Systems
Holdings, Inc.* 100,000 1,797
Ametek, Inc. 70,000 2,769
Amsurg Corp. * 125,000 3,790
Amylin Pharmaceuticals, Inc. * 60,000 1,438
Analogic Corp. 40,000 1,931
Antigenics, Inc. * 100,000 1,251
Applebee's International, Inc. 75,000 2,393
Apria Healthcare Group, Inc. * 95,000 2,466
Ask Jeeves, Inc. * 60,000 1,047
AtheroGenics, Inc. * 80,000 1,160
ATMI, Inc. * 75,000 1,933
Atmos Energy Corp. 80,000 1,949
Atwood Oceanics, Inc. * 45,000 1,106
Avid Technology, Inc. * 30,000 1,394
Benchmark Electronics, Inc. * 85,000 3,383
BioMarin Pharmaceutical, Inc. * 90,000 976
Biosite, Inc. * 125,000 5,392
Borland Software Corp. * 100,000 930
Business Objects, ADR * 50,000 1,216
Celgene Corp. * 80,000 2,929
Cell Genesys, Inc. * 100,000 1,149
Central Garden & Pet Co. * 50,000 1,372
Chesapeake Energy Corp. 135,000 1,292
Chico's FAS, Inc. * 112,500 3,054
Choice Hotels International, Inc. * 50,000 1,538
Church & Dwight, Inc. 50,000 1,620
CLARCOR, Inc. 30,000 1,207
Cognizant Technology Solutions Corp. * 100,000 3,078
Community First Bankshares, Inc. 75,000 2,060
Connetics Corp. * 135,000 2,452
Cooper Cos., Inc. 150,000 5,258
Corinthian Colleges, Inc. * 75,000 4,095
Corporate Executive Board Co. * 80,000 3,474
Covance, Inc. * 125,000 2,588
CTI Molecular Imaginging, Inc. * 110,000 1,745
CTS Corp. 80,000 924
CVB Financial Corp. 105,000 2,070
Delphi Financial Group, Class A 55,000 2,714
Dendrite International, Inc. * 90,000 1,165
Diagnostic Products Corp. 25,000 958
Digene Corp. * 81,600 2,688
Digital Insight Corp. * 100,000 2,018
Dime Community Bancshares 100,000 2,480
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Dionex Corp. * 80,000 $ 3,261
Documentum, Inc. * 100,000 1,715
Dot Hill Systems Corp. * 50,000 862
East-West Bancorp., Inc. 75,000 3,242
Echelon Corp. * 125,000 1,940
Emmis Communications Corp. * 105,000 2,101
Energen Corp. 40,000 1,388
Esterline Technologies Corp. * 80,000 1,532
Factset Research Systems, Inc. 50,000 2,300
FindWhat.com * 35,000 728
First American Financial Corp. 86,000 2,078
First Bancorp/Puerto Rico 120,000 3,618
First Midwest Bancorp., Inc. 65,000 1,946
First Republic Bancorp., Inc.* 50,000 1,479
FirstFed Financial Corp. * 80,000 3,032
FLIR Systems, Inc. * 89,300 2,420
Foundry Networks, Inc. * 260,000 4,691
Fred's, Inc. 90,000 2,635
FTI Consulting * 142,500 3,135
GEN-Probe, Inc. * 45,000 2,475
Genta, Inc. * 80,000 1,058
Global Payments, Inc. 70,000 2,465
Graco, Inc. 70,000 2,552
Gymboree Corp. * 75,000 1,116
Harman International Industries, Inc. 35,000 2,926
Hilb, Rogal & Hamilton Co. 100,000 3,367
Hollywood Entertainment Corp. * 70,000 1,172
Hudson United Bancorp. 75,000 2,740
Hyperion Solutions Corp. * 125,000 3,415
ICOS Corp. * 40,000 1,745
IDEXX Laboratories, Inc. * 60,000 2,428
Independent Bank Corp. 50,000 1,337
Inspire Pharmaceuticals, Inc. * 100,000 1,510
Integrated Circuit Systems, Inc. * 90,000 2,705
InterDigital Communications Corp. * 80,000 1,270
Intermagnetics General Corp. * 135,000 2,735
International Rectifier Corp. * 100,000 2,760
Itron, Inc. * 150,000 3,150
ITT Educational Services, Inc. * 125,000 4,903
J.B. Hunt Transport Services, Inc. * 75,000 3,536
Jacobs Engineering Group, Inc. * 80,000 3,507
Jarden Corp. * 40,000 1,184
Jefferies Group, Inc. 40,000 2,375
Kensey Nash Corp. * 80,000 2,166
Kos Pharmaceuticals, Inc. * 50,000 1,707
Kronos, Inc. * 100,000 5,540
Labor Ready, Inc. * 105,000 899
Leapfrog Enterprises, Inc. * 45,000 1,364
Lone Star Technologies, Inc. * 35,000 580
LTX Corp. * 265,000 2,626
MAF Bancorp., Inc. 50,000 2,000
MapInfo Corp. * 70,000 794
Medicines Co. * 100,000 2,715
Mercury Computer Systems, Inc. * 100,000 1,983
Methode Electronics, Inc., Class A 254,500 3,006
Micrel, Inc. * 120,000 1,349
Micromuse, Inc. * 150,000 1,077
Mid Atlantic Medical Services, Inc. * 66,100 3,595
CONTINUED
65
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
MKS Instruments, Inc. * 75,000 $ 1,696
NBTY, Inc. * 150,000 3,698
Netegrity, Inc. * 100,000 934
Neurocrine Biosciences, Inc. * 35,000 1,879
Newfield Exploration Co. * 75,000 2,709
NPS Pharmaceuticals, Inc. * 50,000 1,277
Oceaneering International, Inc. * 110,000 2,805
OmniVision Technologies, Inc. * 145,000 5,885
Oshkosh Truck Corp. 50,000 3,326
OSI Pharmaceuticals, Inc. * 75,000 2,521
P.F. Chang's China Bistro, Inc. * 60,000 2,903
Packeteer, Inc. * 236,000 2,860
Panera Bread Co., Class A * 35,000 1,448
Patina Oil & Gas Corp. 81,250 2,444
Penn National Gaming, Inc. * 100,000 2,150
Pharmaceutical Product
Development, Inc.* 60,000 1,503
Pharmaceutical Resources, Inc. * 90,000 5,093
Plantronics, Inc. * 150,000 3,636
Power Integrations, Inc * 80,000 2,306
Priority Healthcare Corp., Class B * 75,000 1,547
Progress Software Corp. * 105,000 2,091
Radio One, Inc. * 150,000 2,523
Radware Ltd. * 45,000 769
Rainbow Technologies, Inc. * 375,000 2,779
RC2 Corp. * 125,000 1,970
Regis Corp. 95,000 2,925
RehabCare Group, Inc. * 65,000 1,040
Republic Bancorp., Inc. 150,000 2,051
Respironics, Inc. * 55,000 2,199
Roper Industries, Inc. 35,000 1,397
Ryland Group, Inc. 40,000 2,596
Scotts Co., Class A * 45,000 2,385
SCP Pool Corp. * 40,000 1,550
SERENA Software, Inc. * 185,000 3,494
Silicon Laboratories, Inc. * 140,000 5,139
Sonic Corp. * 45,000 1,100
Sonus Networks, Inc. * 200,000 1,388
Spartech Corp. 40,000 909
Staten Island Bancorp., Inc. 110,000 2,420
Station Casinos, Inc. * 40,000 1,160
Stellent, Inc. * 150,000 1,073
Stericycle, Inc. * 60,000 2,708
Steris Corp. * 60,000 1,379
Stone Energy Corp. * 65,000 2,510
Take-Two Interactive Software * 60,000 1,596
Technitrol, Inc. * 130,000 2,440
Tetra Tech, Inc. * 120,000 1,927
Texas Regional Bancshares, Inc. 81,000 2,671
Thor Industries, Inc. 50,000 2,199
Titan Corp. * 125,000 1,918
TiVo, Inc. * 205,000 2,232
Tractor Supply Co. * 40,000 2,216
Trimble Navigation Ltd. * 135,000 3,692
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Trimeris, Inc. * 50,000 $ 2,218
UGI Corp. 37,500 1,184
Unit Corp. * 40,000 783
United Online, Inc. * 135,000 4,229
Urban Outfitters, Inc. * 86,000 3,417
Varian Semiconductor Equipment
Associates, Inc. * 95,000 3,159
Vintage Petroleum, Inc. 110,000 1,262
Waste Connections, Inc. * 75,000 2,546
WebEx Communications, Inc. * 50,000 825
Wolverine World Wide, Inc. 100,000 1,910
Zebra Technologies Corp., Class A * 25,000 1,939
Zoll Medical Corp. * 60,000 1,886
Zoran Corp. * 190,000 5,151
------------
TOTAL COMMON STOCKS 404,291
------------
U.S. TREASURY OBLIGATIONS (0.5%)
U.S. TREASURY BILLS (0.5%)
1.17%, 10/9/03 ** (a) $ 2,000 1,996
------------
TOTAL U.S. TREASURY OBLIGATIONS 1,996
------------
INVESTMENT COMPANY (0.6%)
iShares Russell 2000 Growth
Index Fund 50,000 2,572
------------
TOTAL INVESTMENT COMPANY 2,572
------------
MONEY MARKETS (0.9%)
Dreyfus Cash Management Money
Market Fund 29,172 29
Federated Prime Value Obligations
Money Market Fund 3,503,260 3,503
------------
TOTAL MONEY MARKETS 3,532
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (14.3%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 58,723 58,723
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 58,723
------------
TOTAL INVESTMENTS (COST $354,876)+ - 114.7% 471,114
LIABILITIES IN EXCESS OF OTHER ASSETS - (14.7)% (60,397)
------------
NET ASSETS - 100.0% $ 410,717
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
66
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (97.0%)
A.G. Edwards, Inc. 92,000 $ 3,403
Activision, Inc. * 442,500 5,155
ADC Telecommunications, Inc. * 630,000 1,373
Advance Auto Parts, Inc. * 123,000 8,355
Affiliated Computer Services, Inc.,
Class A* 55,000 2,725
Amkor Technology, Inc. * 350,000 5,135
Analog Devices, Inc. * 385,000 14,612
BEA Systems, Inc. * 1,010,000 13,332
Bed Bath & Beyond, Inc. * 88,000 3,417
Biomet, Inc. 330,000 9,771
Biovail Corp. International * 236,000 9,060
Career Education Corp. * 108,000 9,007
Caremark Rx, Inc. * 200,000 5,004
Chico's FAS, Inc. * 387,000 10,507
Christopher & Banks Corp. * 100,000 3,955
Cintas Corp. 76,000 3,143
Coach, Inc. * 78,000 4,134
Cree, Inc. * 198,000 2,645
Electronics Boutique Holdings Corp. * 176,000 4,713
Fastenal Co. 168,000 6,384
Fiserv, Inc. * 319,000 12,454
Flextronics International Ltd. * 555,000 6,105
Forest Laboratories, Inc. * 225,000 10,773
Gentex Corp. * 203,000 7,215
IDEC Pharmaceuticals Corp. * 250,000 8,460
Integrated Circuit Systems, Inc. * 335,000 10,067
Integrated Device Technologies, Inc. * 195,000 2,244
International Rectifier Corp. * 194,000 5,354
Jabil Circuit, Inc. * 360,000 8,298
Janus Capital Group, Inc. 350,000 6,125
L-3 Communications Holdings, Inc. * 177,000 8,687
Leapfrog Enterprises, Inc. * 130,000 3,939
Manpower, Inc. 100,000 3,810
Mercury Interactive Corp. * 130,000 5,117
Michael's Stores, Inc. 205,000 7,915
Microchip Technology, Inc. 595,000 15,685
Mid Atlantic Medical Services, Inc. * 110,000 5,982
National Commerce Financial Corp. 282,000 6,909
Network Appliance, Inc. * 285,000 4,554
North Fork Bancorp. 80,000 2,804
NVIDIA Corp. * 145,000 2,772
Omnicom Group, Inc. 84,000 6,206
Panera Bread Co., Class A * 116,000 4,799
Patterson Dental Co. * 155,000 8,293
Pharmaceutical Product
Development, Inc* 105,000 2,630
QLogic Corp. * 80,000 3,372
SouthTrust Corp. 105,000 3,009
SunGard Data Systems, Inc. * 280,000 7,348
SurModics, Inc. * 108,000 4,054
T. Rowe Price Group, Inc. 405,000 16,440
Teleflex, Inc. 93,000 4,253
Tellabs, Inc. * 455,000 3,062
The Cheesecake Factory, Inc. * 108,000 3,559
Third Wave Technologies * 384,000 1,640
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Varco International, Inc. * 540,000 $ 9,331
Williams-Sonoma, Inc. * 280,000 7,910
Wind River Systems, Inc. * 142,000 882
Zebra Technologies Corp., Class A * 120,000 9,309
------------
TOTAL COMMON STOCKS 367,196
------------
MONEY MARKETS (3.0%)
Dreyfus Cash Management Money
Market Fund 5,752,348 5,752
Federated Prime Value Obligations
Money Market Fund 5,685,168 5,685
------------
TOTAL MONEY MARKETS 11,437
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (15.7%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 59,223 59,223
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 59,223
------------
TOTAL INVESTMENTS (COST $403,119)+ - 115.7% 437,856
LIABILITIES IN EXCESS OF OTHER ASSETS - (15.7)% (59,456)
------------
NET ASSETS - 100.0% $ 378,400
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
67
LARGE CAP OPPORTUNITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (96.3%)
3M Co. 3,325 $ 466
Affiliated Computer Services, Inc.,
Class A* 14,325 710
American International Group, Inc. 4,378 281
Amgen, Inc. * 11,100 772
Analog Devices, Inc. * 10,525 399
AutoZone, Inc. * 8,820 734
BEA Systems, Inc. * 24,145 319
Broadcom Corp., Class A * 17,720 359
Cardinal Health, Inc. 13,225 724
Cisco Systems, Inc. * 30,055 587
Clear Channel Communications, Inc. * 17,840 730
Comcast Corp., Class A * 10,670 324
Eli Lilly & Co. 6,010 396
Exxon Mobil Corp. 17,576 625
First Data Corp. 16,245 613
Fiserv, Inc. * 11,775 460
Fortune Brands, Inc. 4,930 274
General Electric Corp. 12,067 343
General Mills, Inc. 5,895 270
Goldman Sachs Group, Inc. 9,960 868
Guidant Corp. 8,685 410
H & R Block, Inc. 8,775 372
Hewlett-Packard Co. 38,110 807
IBM Corp. 5,325 433
Illinois Tool Works, Inc. 4,950 345
Intel Corp. 19,970 499
Intuit, Inc. * 5,160 222
ITT Industries, Inc. 4,000 267
Johnson & Johnson 11,765 609
L-3 Communications Holdings, Inc. * 6,485 318
Marsh & McLennan Cos., Inc. 18,260 906
Maxim Integrated Products, Inc. 9,925 388
MedImmune, Inc. * 9,485 372
Microsoft Corp. 41,060 1,084
Nextel Communications, Inc., Class A * 40,240 735
Oracle Corp. * 46,720 561
PepsiCo, Inc. 15,502 714
Pfizer, Inc. 15,107 504
Praxair, Inc. 3,165 205
Target Corp. 8,300 318
UnitedHealth Group, Inc. 14,980 780
Veritas Software Corp. * 7,470 230
Wal-Mart Stores, Inc. 7,442 416
Wells Fargo & Co. 15,184 767
Willis Group Holdings Ltd. 20,200 608
------------
TOTAL COMMON STOCKS 23,124
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (3.7%)
Dreyfus Cash Management Money
Market Fund 444,035 $ 444
Federated Prime Value Obligations
Money Market Fund 440,016 440
------------
TOTAL MONEY MARKETS 884
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (4.0%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 957 957
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 957
------------
TOTAL INVESTMENTS (COST $24,132)+ - 104.0% 24,965
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.0)% (965)
------------
NET ASSETS - 100.0% $ 24,000
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
68
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (99.4%)
3M Co. 105,000 $ 14,721
Agilent Technologies, Inc. * 794,000 17,254
American International Group, Inc. 399,000 25,616
Amgen, Inc. * 743,000 51,697
Analog Devices, Inc. * 824,000 31,271
Anthem, Inc. * 265,000 20,010
Applied Materials, Inc. * 530,000 10,335
Avery Dennison Corp. 160,000 8,634
Bank of New York Co., Inc. 1,253,000 37,740
Broadcom Corp., Class A * 400,000 8,108
Cardinal Health, Inc. 162,000 8,870
ChevronTexaco Corp. 67,000 4,831
Cintas Corp. 407,000 16,834
Cisco Systems, Inc. * 2,825,000 55,144
Clear Channel Communications, Inc. * 713,000 29,197
Cox Communications, Inc., Class A * 590,000 18,756
Ecolab, Inc. 606,000 14,974
Emerson Electric Corp. 280,000 15,036
Exxon Mobil Corp. 430,000 15,300
Flextronics International Ltd. * 545,000 5,995
General Electric Corp. 881,000 25,055
Gilead Sciences, Inc. * 190,000 13,025
Goldman Sachs Group, Inc. 247,000 21,524
Harley-Davidson, Inc. 251,000 11,767
Home Depot, Inc. 1,066,000 33,259
IBM Corp. 217,000 17,631
Illinois Tool Works, Inc. 215,000 14,975
Intel Corp. 2,115,000 52,769
Kohl's Corp. * 230,000 13,651
L-3 Communications Holdings, Inc. * 226,000 11,092
Lowe's Cos., Inc. 535,000 25,445
Marsh & McLennan Cos., Inc. 670,000 33,245
Maxim Integrated Products, Inc. 605,000 23,643
MedImmune, Inc. * 260,000 10,189
Medtronic, Inc. 260,000 13,390
Mellon Financial Corp. 1,455,000 44,014
Microsoft Corp. 1,761,000 46,490
Northern Trust Corp. 708,000 30,911
Omnicom Group, Inc. 151,000 11,156
Pfizer, Inc. 542,000 18,081
Schlumberger Ltd. 268,000 12,079
Sysco Corp. 840,000 25,309
Target Corp. 1,106,000 42,382
Teva Pharmaceutical Industries
Ltd., ADR 190,000 10,895
Texas Instruments, Inc. 1,291,000 24,361
Transocean, Inc. * 56,000 1,096
United Technologies Corp. 144,000 10,833
Wal-Mart Stores, Inc. 385,000 21,525
------------
TOTAL COMMON STOCKS 1,030,115
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (0.7%)
Dreyfus Cash Management Money
Market Fund 3,928,859 $ 3,929
Federated Prime Value Obligations
Money Market Fund 3,778,865 3,779
------------
TOTAL MONEY MARKETS 7,708
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (2.3%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 24,295 24,295
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 24,295
------------
TOTAL INVESTMENTS (COST $986,545)+ - 102.4% 1,062,118
LIABILITIES IN EXCESS OF OTHER ASSETS - (2.4)% (24,624)
------------
NET ASSETS - 100.0% $ 1,037,494
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
69
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (98.9%)
3M Co. 11,450 $ 1,605
Abbott Laboratories 36,050 1,415
ACE Ltd. 21,700 716
Adobe Systems, Inc. 10,050 328
Aetna, Inc. 8,700 536
Affiliated Computer Services, Inc.,
Class A* 8,400 416
AFLAC, Inc. 22,550 723
Air Products and Chemicals, Inc. 10,350 481
Alberto-Culver Co., Class B 7,750 431
Alcoa, Inc. 20,300 564
Allstate Corp. 23,200 883
Altera Corp. * 21,900 421
Altria Group, Inc. 43,750 1,750
American Electric Power Co. 18,450 518
American Express Co. 34,750 1,535
American International Group, Inc. 50,700 3,256
American National Insurance Co. 5,000 442
Amgen, Inc. * 33,950 2,362
Analog Devices, Inc. * 15,100 573
Anheuser-Busch Co., Inc. 18,650 966
AOL Time Warner, Inc. * 92,900 1,433
Aon Corp. 24,000 577
Apache Corp. 7,450 462
Applied Materials, Inc. * 44,700 872
AT&T Corp. 16,500 351
AT&T Wireless Services, Inc. * 81,600 696
Automatic Data Processing, Inc. 15,000 556
AutoZone, Inc. * 6,250 520
Avery Dennison Corp. 8,300 448
Bank of America Corp. 37,150 3,067
Bank of New York Co., Inc. 19,900 599
Bank One Corp. 25,600 1,013
BB&T Corp. 10,400 363
BellSouth Corp. 52,100 1,327
Best Buy Co. * 11,450 500
Biomet, Inc. 19,900 589
Black & Decker Corp. 16,500 674
BMC Software, Inc. * 22,250 314
Bristol-Myers Squibb Co. 38,650 1,013
Burlington Northern Santa Fe Corp. 15,950 440
Cardinal Health, Inc. 13,450 736
Cendant Corp. * 63,400 1,138
ChevronTexaco Corp. 25,450 1,835
Chubb Corp. 6,950 450
Cisco Systems, Inc. * 169,750 3,313
Citigroup, Inc. 119,800 5,366
Clear Channel Communications, Inc. * 19,900 815
Clorox Co. 15,700 681
Coca-Cola Co. 44,450 1,999
Colgate-Palmolive Co. 11,900 650
Comcast Corp., Class A * 44,750 1,357
Comcast Corp., Special Class A * 22,800 668
ConocoPhillips 19,450 1,018
Consolidated Edison, Inc. 6,950 276
Costco Wholesale Corp. * 15,950 591
CVS Corp. 16,250 487
Danaher Corp. 5,900 426
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Dell, Inc. * 52,100 $ 1,755
Devon Energy Corp. 11,650 552
Dominion Resources, Inc. 9,800 589
Dow Chemical Co. 27,850 983
E. I. du Pont de Nemours & Co. 27,850 1,224
Eastman Kodak Co. 5,100 141
Eaton Corp. 7,650 644
Ecolab, Inc. 11,650 288
Eli Lilly & Co. 21,950 1,445
EMC Corp. * 54,950 585
Emerson Electric Corp. 10,550 567
Entergy Corp. 7,300 376
Exelon Corp. 11,050 635
Exxon Mobil Corp. 149,700 5,326
Fannie Mae 23,200 1,486
Federated Department Stores, Inc. 10,500 420
FedEx Corp. 13,900 895
Fifth Third Bancorp (b) 11,100 611
First Data Corp. 31,150 1,176
First Energy Corp. 14,350 495
First Tennessee National Corp. 24,300 1,042
Fiserv, Inc. * 6,500 254
FleetBoston Financial Corp. 22,550 701
Ford Motor Co. 58,800 651
Fortune Brands, Inc. 13,000 723
FPL Group, Inc. 7,800 481
Freddie Mac 26,200 1,280
Gannett, Inc. 8,700 668
Gap, Inc. 13,700 246
Genentech, Inc. * 10,400 840
General Electric Corp. (a) 198,150 5,635
General Mills, Inc. 20,250 929
General Motors Corp. 16,250 608
Gillette Co. 27,800 855
H & R Block, Inc. 12,150 515
Hartford Financial Services Group, Inc. 14,900 778
HCA, Inc. 22,550 795
Hewlett-Packard Co. 61,650 1,305
Home Depot, Inc. 52,100 1,626
Honeywell International, Inc. 13,000 368
IBM Corp. 37,000 3,006
Illinois Tool Works, Inc. 11,150 777
Intel Corp. 154,350 3,851
International Paper Co. 17,350 679
Intuit, Inc. * 8,900 383
ITT Industries, Inc. 13,300 887
J.C. Penney Co., Inc. 24,450 454
J.P. Morgan Chase & Co. 52,400 1,837
John Hancock Financial Services, Inc. 22,250 726
Johnson & Johnson 77,700 4,024
Johnson Controls, Inc. 5,750 556
Kellogg Co. 23,900 820
KeySpan Corp. 14,500 489
King Pharmaceuticals, Inc. * 18,600 280
KLA-Tencor Corp. * 8,750 452
Kohl's Corp. * 11,300 671
Lexmark International, Inc. * 9,200 590
Limited Brands, Inc. 34,600 578
CONTINUED
70
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Linear Technology Corp. 15,300 $ 564
Lockheed Martin Corp. 9,550 500
Lowe's Cos., Inc. 18,250 868
Marathon Oil Corp. 17,350 447
Marsh & McLennan Cos., Inc. 16,950 841
Masco Corp. 23,450 571
Mattel, Inc. 23,100 449
Maxim Integrated Products, Inc. 14,350 561
MBIA, Inc. 8,950 453
MBNA Corp. 48,000 1,070
McDonald's Corp. 34,150 786
McGraw-Hill Cos., Inc. 9,650 587
McKesson, Inc. 20,850 673
MedImmune, Inc. * 16,500 647
Medtronic, Inc. 34,750 1,790
Mellon Financial Corp. 11,300 342
Merck & Co., Inc. 49,550 2,739
Merrill Lynch & Co., Inc. 31,250 1,699
Microsoft Corp. 192,850 5,091
Morgan Stanley Dean Witter & Co. 39,850 1,890
Motorola, Inc. 49,850 451
National City Corp. 24,200 797
Newell Rubbermaid, Inc. 22,300 527
Nike, Inc., Class B 5,450 282
NiSource, Inc. 32,100 620
Novellus Systems, Inc. * 6,950 249
Nuveen Investments, Inc. 18,600 517
Occidental Petroleum Corp. 16,650 544
Omnicom Group, Inc. 7,150 528
Oracle Corp. * 120,400 1,445
Pactiv Corp. * 16,200 320
Paychex, Inc. 13,350 434
PepsiCo, Inc. 40,300 1,857
Pfizer, Inc. 174,500 5,821
Pitney Bowes, Inc. 14,350 547
PPL Corp. 11,650 461
Praxair, Inc. 6,600 427
Procter & Gamble Co. 25,100 2,206
Public Service Enterprise Group, Inc. 10,350 422
QUALCOMM, Inc. 16,500 618
Raytheon Co. 10,400 319
Reynolds & Reynolds Co., Class A 10,900 315
Sara Lee Corp. 32,100 600
SBC Communications, Inc. 82,300 1,922
Schlumberger Ltd. 23,100 1,041
Sigma-Aldrich Corp. 7,800 444
Southern Co. 20,550 584
SouthTrust Corp. 25,200 722
Southwest Airlines Co. 23,800 391
Sprint Corp. 24,300 343
Staples, Inc. * 28,650 577
Starwood Hotels & Resorts
Worldwide, Inc. 18,300 597
State Street Corp. 14,500 666
Stryker Corp. 11,150 853
SunGard Data Systems, Inc. * 19,350 508
Sunoco, Inc. 6,400 237
Symantec Corp. * 10,250 479
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Sysco Corp. 15,550 $ 469
Target Corp. 26,050 998
Tektronix, Inc. * 15,650 331
Texas Instruments, Inc. 39,050 737
The Walt Disney Co. 42,700 936
Thermo Electron Corp. * 23,000 512
Travelers Property Casualty Corp.,
Class B 25,550 412
Tribune Co. 11,150 527
U.S. Bancorp 56,000 1,373
Union Pacific Corp. 11,050 673
Union Planters Corp. 17,350 558
Unisys Corp. * 37,400 459
United Technologies Corp. 16,150 1,215
UnitedHealth Group, Inc. 20,850 1,086
Univision Communications, Inc. * 18,100 565
Unocal Corp. 15,950 467
UTStarcom, Inc. * 21,250 905
V.F. Corp. 10,650 406
Verizon Communications, Inc. 70,300 2,450
Viacom, Inc. * 43,400 1,888
Wachovia Corp. 37,050 1,619
Wal-Mart Stores, Inc. (a) 55,500 3,103
Walgreen Co. 21,050 630
Washington Mutual, Inc. 30,400 1,200
Waste Management, Inc. 17,350 414
WellPoint Health Networks, Inc. * 10,250 857
Wells Fargo & Co. 40,800 2,062
Weyerhaeuser Co. 7,750 436
Whirlpool Corp. 7,300 473
Wyeth 32,100 1,463
Xilinx, Inc. * 19,100 502
------------
TOTAL COMMON STOCKS 201,059
------------
MONEY MARKETS (1.0%)
Dreyfus Cash Management Money
Market Fund 101 --#
Federated Prime Value Obligations
Money Market Fund 1,957,418 1,958
------------
TOTAL MONEY MARKETS 1,958
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (0.4%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 775 775
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 775
------------
TOTAL INVESTMENTS (COST $199,026)+ - 100.3% 203,792
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (640)
------------
NET ASSETS - 100.0% $ 203,152
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
71
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (97.6%)
3M Co. 25,800 $ 3,617
Abbott Laboratories 103,500 4,062
ACE Ltd. 17,400 574
ADC Telecommunications, Inc. * 62,800 137
Adobe Systems, Inc. 15,600 510
Adolph Coors Co. 2,400 123
Advanced Micro Devices, Inc. * 22,700 166
AES Corp. * 42,600 268
Aetna, Inc. 9,970 614
AFLAC, Inc. 34,200 1,097
Agilent Technologies, Inc. * 30,857 671
Air Products and Chemicals, Inc. 15,000 697
Alberto-Culver Co., Class B 3,800 211
Albertson's, Inc. 25,097 473
Alcoa, Inc. 55,876 1,551
Allegheny Energy, Inc. 8,300 69
Allegheny Technologies, Inc. 5,660 43
Allergan, Inc. 8,600 692
Allied Waste Industries, Inc. * 13,100 159
Allstate Corp. 46,498 1,768
Alltel Corp. 20,600 964
Altera Corp. * 25,300 487
Altria Group, Inc. 134,200 5,369
AMBAC Financial Group, Inc. 7,050 464
Amerada Hess Corp. 5,900 277
Ameren Corp. 10,000 418
American Electric Power Co. 26,160 734
American Express Co. 87,000 3,843
American Greetings Corp., Class A * 4,400 78
American International Group, Inc. 172,700 11,087
American Power Conversion Corp. * 13,000 227
American Standard Companies, Inc. * 4,800 367
AmerisourceBergen Corp. 7,000 442
Amgen, Inc. * 83,540 5,814
AmSouth Bancorp. 23,550 510
Anadarko Petroleum Corp. 16,509 723
Analog Devices, Inc. * 24,200 918
Andrew Corp. * 6,555 71
Anheuser-Busch Co., Inc. 55,340 2,868
Anthem, Inc. * 9,400 710
AOL Time Warner, Inc. * 295,980 4,567
Aon Corp. 19,500 469
Apache Corp. 10,363 642
Apartment Investment &
Management Co. 6,200 244
Apollo Group, Inc., Class A * 11,600 751
Apple Computer, Inc. * 23,800 501
Applied Biosystems Group 13,900 301
Applied Materials, Inc. * 109,100 2,127
Applied Micro Circuits Corp. * 23,900 137
Archer-Daniels-Midland Co. 42,771 562
Ashland, Inc. 4,500 148
AT&T Corp. 50,970 1,084
AT&T Wireless Services, Inc. * 179,395 1,530
Autodesk, Inc. 7,500 112
Automatic Data Processing, Inc. 39,700 1,472
AutoNation, Inc. * 20,700 356
AutoZone, Inc. * 6,500 541
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Avaya, Inc. * 28,794 $ 276
Avery Dennison Corp. 7,300 394
Avon Products, Inc. 15,600 973
Baker Hughes, Inc. 22,180 697
Ball Corp. 3,800 189
Bank of America Corp. 99,092 8,183
Bank of New York Co., Inc. 50,700 1,527
Bank One Corp. 77,111 3,051
Bausch & Lomb, Inc. 3,600 152
Baxter International, Inc. 39,300 1,085
BB&T Corp. 37,000 1,291
Bear Stearns Companies, Inc. 6,387 428
Becton, Dickinson & Co. 17,000 623
Bed Bath & Beyond, Inc. * 19,400 753
BellSouth Corp. 123,100 3,135
Bemis Co. 3,500 156
Best Buy Co. * 21,250 928
Big Lots, Inc. * 7,700 119
Biogen, Inc. * 9,900 380
Biomet, Inc. 17,175 509
BJ Services Co. * 10,400 356
Black & Decker Corp. 5,300 217
BMC Software, Inc. * 15,600 220
Boeing Co. 55,592 1,841
Boise Cascade Corp. 3,908 97
Boston Scientific Corp. * 27,000 1,707
Bristol-Myers Squibb Co. 128,300 3,361
Broadcom Corp., Class A * 18,300 371
Brown-Forman Corp. 4,500 351
Brunswick Corp. 6,000 162
Burlington Northern Santa Fe Corp. 25,000 689
Burlington Resources, Inc. 13,365 617
C.R. Bard, Inc. 3,400 233
Calpine Corp. * 29,700 170
Campbell Soup Co. 27,100 654
Capital One Financial Corp. 14,700 704
Cardinal Health, Inc. 29,300 1,604
Carnival Corp. 41,700 1,430
Caterpillar, Inc. 22,800 1,538
Cendant Corp. * 68,619 1,232
CenterPoint Energy, Inc. 20,144 163
Centex Corp. 4,100 297
CenturyTel, Inc. 9,400 322
Charles Schwab Corp. 88,975 926
Charter One Financial, Inc. 14,993 488
ChevronTexaco Corp. 70,756 5,102
Chiron Corp. * 12,500 570
Chubb Corp. 11,300 732
Ciena Corp. * 28,600 166
CIGNA Corp. 9,200 430
Cincinnati Financial Corp. 10,700 421
Cinergy Corp. 11,135 379
Cintas Corp. 11,300 467
Circuit City Stores, Inc. 13,900 128
Cisco Systems, Inc. * 465,300 9,082
Citigroup, Inc. 341,570 15,303
Citizens Communications Co. * 18,700 222
Citrix System, Inc. * 11,300 205
CONTINUED
72
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Clear Channel Communications, Inc. * 40,600 $ 1,663
Clorox Co. 14,600 634
CMS Energy Corp. 9,900 64
Coca-Cola Co. 164,100 7,379
Coca-Cola Enterprises, Inc. 29,800 508
Colgate-Palmolive Co. 35,600 1,944
Comcast Corp., Class A * 149,082 4,520
Comerica, Inc. 11,550 560
Computer Associates International, Inc. 37,918 965
Computer Sciences Corp. * 11,400 462
Compuware Corp. * 29,500 152
Comverse Technology, Inc. * 12,400 183
Conagra, Inc. 35,550 801
Concord EFS, Inc. * 64,825 882
ConocoPhillips 44,839 2,347
Consolidated Edison, Inc. 14,100 560
Constellation Energy Group, Inc. 10,900 364
Convergys Corp. * 11,500 194
Cooper Industries, Ltd. 6,100 270
Cooper Tire & Rubber Co. 5,000 85
Corning, Inc. * 83,900 683
Costco Wholesale Corp. * 30,200 1,119
Countrywide Credit Industries, Inc. 8,400 561
Crane Co. 3,925 97
CSX Corp. 14,108 442
Cummins Engine, Inc. 2,700 125
CVS Corp. 26,000 780
Dana Corp. 9,832 151
Danaher Corp. 10,100 729
Darden Restaurants, Inc. 11,300 211
Deere & Co. 15,800 802
Dell, Inc. * 171,500 5,776
Delphi Automotive Systems Corp. 36,984 311
Delta Air Lines, Inc. 8,200 98
Deluxe Corp. 4,100 182
Devon Energy Corp. 15,200 720
Dillard's Department Stores, Inc. 5,600 84
Dollar General Corp. 22,033 405
Dominion Resources, Inc. 20,367 1,224
Dover Corp. 13,400 491
Dow Chemical Co. 60,354 2,130
Dow Jones & Co. 5,500 233
DTE Energy Co. 11,100 396
Duke Energy Corp. 59,012 1,036
Dynegy, Inc. * 28,000 89
E. I. du Pont de Nemours & Co. 65,820 2,893
Eastman Chemical Co. 5,100 185
Eastman Kodak Co. 19,300 533
Eaton Corp. 4,700 396
eBay, Inc. * 21,000 2,252
Ecolab, Inc. 17,200 425
Edison International, Inc. * 21,600 354
El Paso Energy Corp. 39,695 279
Electronic Arts, Inc. * 9,400 790
Electronic Data Systems Corp. 31,500 702
Eli Lilly & Co. 74,400 4,898
EMC Corp. * 145,600 1,549
Emerson Electric Corp. 27,900 1,498
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Engelhard Corp. 8,437 $ 222
Entergy Corp. 14,700 757
EOG Resources, Inc. 7,600 295
Equifax, Inc. 9,400 219
Equity Office Properties Trust 27,300 758
Equity Residential Properties Trust 17,900 499
Exelon Corp. 21,362 1,228
Exxon Mobil Corp. 445,540 15,851
Family Dollar Stores, Inc. 11,500 431
Fannie Mae 65,900 4,220
Federated Department Stores, Inc. 13,000 520
Federated Investors, Inc. 7,300 210
FedEx Corp. 19,720 1,270
Fifth Third Bancorp (b) 38,212 2,102
First Data Corp. 37,350 1,410
First Energy Corp. 19,670 678
First Tennessee National Corp. 8,300 356
Fiserv, Inc. * 12,650 494
FleetBoston Financial Corp. 69,512 2,161
Fluor Corp. 5,300 189
Ford Motor Co. 121,503 1,344
Forest Laboratories, Inc. * 24,000 1,149
Fortune Brands, Inc. 9,900 551
FPL Group, Inc. 12,100 746
Franklin Resources, Inc. 17,200 747
Freddie Mac 46,100 2,252
Freeport-McMoRan Copper & Gold, Inc.,
Class B 9,600 257
Gannett, Inc. 17,700 1,360
Gap, Inc. 58,537 1,053
Gateway, Inc. * 25,900 132
General Dynamics Corp. 13,300 1,055
General Electric Corp. 662,600 18,845
General Mills, Inc. 24,400 1,119
General Motors Corp. 37,100 1,388
Genuine Parts Co. 11,525 357
Genzyme Corp. * 14,200 716
Georgia Pacific Corp. 15,845 346
Gillette Co. 67,664 2,081
Golden West Financial Corp. 10,200 843
Goldman Sachs Group, Inc. 31,600 2,754
Goodrich Corp. 7,300 168
Goodyear Tire & Rubber Co. 11,700 64
Great Lakes Chemical Corp. 3,300 72
Guidant Corp. 20,200 954
H & R Block, Inc. 12,000 509
H.J. Heinz Co. 23,200 790
Halliburton Co. 28,900 641
Harley-Davidson, Inc. 20,000 938
Harrah's Entertainment, Inc. * 7,400 323
Hartford Financial Services Group, Inc. 18,500 966
Hasbro, Inc. 11,500 217
HCA, Inc. 33,949 1,197
Health Management Associates, Inc.,
Class A 15,800 316
Hercules, Inc. * 7,200 82
Hershey Foods Corp. 9,000 655
Hewlett-Packard Co. 202,062 4,278
CONTINUED
73
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Hilton Hotels Corp. 24,900 $ 364
Home Depot, Inc. 153,943 4,803
Honeywell International, Inc. 56,712 1,604
Humana, Inc. * 10,700 187
Huntington Bancshares 15,561 318
IBM Corp. 114,550 9,307
Illinois Tool Works, Inc. 20,300 1,414
IMS Health, Inc. 17,954 347
Ingersoll-Rand Co. 11,250 610
Intel Corp. 433,200 10,809
International Flavors & Fragrances, Inc. 6,200 187
International Game Technology 22,800 580
International Paper Co. 31,736 1,242
Interpublic Group Cos., Inc. 25,500 352
Intuit, Inc. * 13,600 585
ITT Industries, Inc. 6,100 407
J.C. Penney Co., Inc. 17,700 329
J.P. Morgan Chase & Co. 134,654 4,720
Jabil Circuit, Inc. * 13,100 302
Janus Capital Group, Inc. 14,700 257
JDS Uniphase Corp. * 108,400 326
Jefferson-Pilot Corp. 9,537 420
John Hancock Financial Services, Inc. 19,100 624
Johnson & Johnson 196,632 10,184
Johnson Controls, Inc. 5,900 570
Jones Apparel Group, Inc. * 8,500 246
KB Home 3,140 178
Kellogg Co. 27,000 927
Kerr-McGee Corp. 6,673 294
KeyCorp 28,100 756
KeySpan Corp. 9,700 327
Kimberly-Clark Corp. 34,040 1,648
Kinder Morgan, Inc. 8,100 433
King Pharmaceuticals, Inc. * 15,933 240
KLA-Tencor Corp. * 12,500 646
Knight-Ridder, Inc. 5,500 377
Kohl's Corp. * 22,300 1,324
Kroger Co. * 51,200 868
Leggett & Platt, Inc. 12,900 286
Lehman Brothers Holding, Inc. 15,700 993
Lexmark International, Inc. * 8,300 533
Limited Brands, Inc. 34,656 579
Lincoln National Corp. 11,700 437
Linear Technology Corp. 20,700 763
Liz Claiborne, Inc. 7,100 244
Lockheed Martin Corp. 30,188 1,580
Loews Corp. 12,300 566
Louisiana-Pacific Corp. * 6,900 84
Lowe's Cos., Inc. 51,700 2,459
LSI Logic Corp. * 25,600 238
Lucent Technologies, Inc. * 273,837 482
Manor Care, Inc. * 6,400 182
Marathon Oil Corp. 20,700 533
Marriott International, Inc. 15,700 645
Marsh & McLennan Cos., Inc. 35,600 1,766
Marshall & Ilsley Corp. 14,500 454
Masco Corp. 32,600 795
Mattel, Inc. 28,947 562
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Maxim Integrated Products, Inc. 21,200 $ 828
May Department Stores Co. 19,100 472
Maytag Corp. 5,200 132
MBIA, Inc. 9,600 486
MBNA Corp. 84,545 1,885
McCormick & Co. 9,300 238
McDermott International, Inc. * 4,800 28
McDonald's Corp. 84,000 1,933
McGraw-Hill Cos., Inc. 12,800 778
McKesson, Inc. 19,227 620
MeadWestvaco Corp. 13,217 320
MedImmune, Inc. * 16,600 651
Medtronic, Inc. 80,800 4,161
Mellon Financial Corp. 28,500 862
Merck & Co., Inc. 148,650 8,218
Mercury Interactive Corp. * 5,600 220
Meredith Corp. 3,300 150
Merrill Lynch & Co., Inc. 61,400 3,338
MetLife, Inc. 50,500 1,400
MGIC Investment Corp. 6,700 372
Micron Technology, Inc. * 40,100 587
Microsoft Corp. 711,800 18,792
Millipore Corp. * 3,200 142
Molex, Inc. 12,775 357
Monsanto Co. 15,850 365
Monster Worldwide, Inc. * 7,400 196
Moody's Corp. 9,965 515
Morgan Stanley Dean Witter & Co. 71,832 3,408
Motorola, Inc. 152,380 1,378
Nabors Industries Ltd. * 9,600 344
National City Corp. 40,500 1,334
National Semiconductor Corp. * 12,000 268
Navistar International Corp. * 4,120 161
NCR Corp. * 6,500 179
Network Appliance, Inc. * 22,300 356
New York Times Co. 10,000 446
Newell Rubbermaid, Inc. 17,680 418
Newmont Mining Corp. 26,615 961
Nextel Communications, Inc., Class A * 68,200 1,245
NICOR, Inc. 2,900 105
Nike, Inc., Class B 17,600 910
NiSource, Inc. 14,953 289
Noble Drilling Corp. * 8,900 293
Nordstrom, Inc. 9,000 190
Norfolk Southern Corp. 25,700 494
North Fork Bancorp. 10,700 375
Northern Trust Corp. 14,600 637
Northrop Grumman Corp. 12,067 1,113
Novell, Inc. * 28,400 101
Novellus Systems, Inc. * 9,800 351
Nucor Corp. 5,200 256
NVIDIA Corp. * 10,100 193
Occidental Petroleum Corp. 25,000 817
Office Depot, Inc. * 20,400 339
Omnicom Group, Inc. 12,500 923
Oracle Corp. * 348,848 4,186
PACCAR, Inc. 7,625 589
Pactiv Corp. * 10,500 207
CONTINUED
74
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Pall Corp. 8,099 $ 183
Parametric Technology Corp. * 20,326 65
Parker Hannifin Corp. 7,825 361
Paychex, Inc. 24,950 812
People's Energy Corp. 2,300 94
PeopleSoft, Inc. * 24,400 407
Pepsi Bottling Group, Inc. 18,600 409
PepsiCo, Inc. 114,390 5,270
PerkinElmer, Inc. 8,400 125
Pfizer, Inc. 527,856 17,610
PG&E Corp. * 26,800 575
Phelps Dodge Corp. * 5,917 250
Pinnacle West Capital Corp. 5,800 199
Pitney Bowes, Inc. 15,700 598
Plum Creek Timber Co., Inc. 12,200 331
PMC-Sierra, Inc. * 11,100 136
PNC Bank Corp. 18,800 920
Power-One, Inc. * 5,500 58
PPG Industries, Inc. 11,200 632
PPL Corp. 10,600 420
Praxair, Inc. 10,700 692
Principal Financial Group 22,300 727
Procter & Gamble Co. 86,000 7,557
Progress Energy, Inc. 15,637 637
Progressive Corp. 14,400 950
ProLogis 11,900 328
Providian Financial Corp. * 19,100 184
Prudential Financial, Inc. 37,500 1,334
Public Service Enterprise Group, Inc. 14,600 595
Pulte Corp. 4,100 251
QLogic Corp. * 6,200 261
QUALCOMM, Inc. 52,000 1,948
Quest Diagnostics, Inc. * 6,500 388
Quintiles Transnational Corp. * 7,800 107
Qwest Communications
International, Inc. * 116,300 464
R.J. Reynolds Tobacco Holdings, Inc. 5,800 206
R.R. Donnelley & Sons Co. 7,500 198
RadioShack Corp. 11,156 296
Raytheon Co. 26,900 826
Reebok International Ltd. * 4,000 132
Regions Financial Corp. 14,600 527
Robert Half International, Inc. * 11,500 250
Rockwell Collins 12,100 315
Rockwell International Corp. 12,300 318
Rohm & Haas Co. 14,677 519
Rowan Cos., Inc. * 6,200 136
Ryder Systems, Inc. 4,100 119
Sabre Group Holdings, Inc. 9,465 218
SAFECO Corp. 9,000 335
Safeway, Inc. * 29,200 623
Sanmina Corp. * 39,600 314
Sara Lee Corp. 51,633 965
SBC Communications, Inc. 219,796 5,134
Schering-Plough Corp. 97,100 1,649
Schlumberger Ltd. 38,400 1,730
Scientific-Atlanta, Inc. 10,200 309
Sealed Air Corp. * 5,516 264
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Sears Roebuck & Co. 20,975 $ 854
Sempra Energy 13,525 377
Sherwin-Williams Co. 9,900 297
Siebel Systems, Inc. * 32,100 301
Sigma-Aldrich Corp. 4,700 268
Simon Property Group, Inc. 12,400 525
SLM Corp. 30,600 1,269
Snap-On, Inc. 3,850 109
Solectron Corp. * 65,600 335
Southern Co. 47,200 1,341
SouthTrust Corp. 23,000 659
Southwest Airlines Co. 51,305 841
Sprint Corp. 59,200 836
Sprint PCS Group * 68,700 423
St. Jude Medical, Inc. * 11,800 633
St. Paul Companies 14,934 525
Stanley Works 5,800 164
Staples, Inc. * 31,200 628
Starbucks Corp. * 25,700 702
Starwood Hotels & Resorts
Worldwide, Inc. 13,200 430
State Street Corp. 21,500 987
Stryker Corp. 13,100 1,002
Sun Microsystems, Inc. * 215,100 804
SunGard Data Systems, Inc. * 18,700 491
Sunoco, Inc. 5,074 188
SunTrust Banks, Inc. 18,800 1,145
SUPERVALU, Inc. 8,800 207
Symantec Corp. * 9,800 458
Symbol Technologies, Inc. 15,250 195
Synovus Financial Corp. 19,900 468
Sysco Corp. 43,500 1,312
T. Rowe Price Group, Inc. 8,100 329
Target Corp. 60,100 2,303
Teco Energy, Inc. 11,100 138
Tektronix, Inc. * 5,800 123
Tellabs, Inc. * 27,300 184
Temple-Inland, Inc. 3,600 167
Tenet Healthcare Corp. * 32,300 445
Teradyne, Inc. * 12,100 199
Texas Instruments, Inc. 114,600 2,164
Textron, Inc. 9,100 395
The Walt Disney Co. 135,250 2,965
Thermo Electron Corp. * 10,800 240
Thomas & Betts Corp. * 3,900 60
Tiffany & Co. 9,600 330
TJX Companies, Inc. 35,000 681
Torchmark Corp. 7,800 317
Toys 'R' Us, Inc. * 14,050 157
Transocean, Inc. * 21,140 414
Travelers Property Casualty Corp.,
Class B 66,431 1,072
Tribune Co. 20,150 951
Tupperware Corp. 3,900 60
TXU Corp. 21,370 431
Tyco International, Ltd. 132,100 2,457
U.S. Bancorp 126,877 3,112
U.S.T., Inc. 11,200 372
CONTINUED
75
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Union Pacific Corp. 16,800 $ 1,024
Union Planters Corp. 13,100 421
Unisys Corp. * 21,500 264
United Parcel Service, Inc. 73,900 4,661
United States Steel Corp. 6,740 106
United Technologies Corp. 31,400 2,362
UnitedHealth Group, Inc. 40,400 2,105
Univision Communications, Inc. * 15,200 474
Unocal Corp. 17,100 501
UNUM Provident Corp. 15,984 217
V.F. Corp. 7,200 275
Veritas Software Corp. * 27,300 841
Verizon Communications, Inc. 181,178 6,316
Viacom, Inc. * 116,576 5,074
Visteon Corp. 8,662 55
Vulcan Materials Co. 6,700 269
W.W. Grainger, Inc. 6,100 300
Wachovia Corp. 90,070 3,936
Wal-Mart Stores, Inc. 290,350 16,234
Walgreen Co. 67,900 2,032
Washington Mutual, Inc. 62,653 2,473
Waste Management, Inc. 40,342 964
Waters Corp. * 8,600 273
Watson Pharmaceutical, Inc. * 7,100 284
WellPoint Health Networks, Inc. * 9,800 820
Wells Fargo & Co. 112,000 5,660
Wendy's International, Inc. 7,600 223
Weyerhaeuser Co. 14,450 813
Whirlpool Corp. 4,500 291
Williams Companies, Inc. 39,000 248
Winn-Dixie Stores, Inc. 9,300 107
Wm. Wrigley Jr. Co. 14,900 809
Worthington Industries, Inc. 5,725 84
Wyeth 87,800 4,002
Xcel Energy, Inc. 26,385 382
Xerox Corp. * 48,634 525
Xilinx, Inc. * 22,300 586
XL Capital Ltd., Class A 9,000 716
Yahoo, Inc. * 39,100 1,217
YUM! Brands, Inc. * 19,520 584
Zimmer Holdings, Inc. * 12,890 616
Zions Bancorporation 6,000 335
------------
TOTAL COMMON STOCKS 606,309
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (2.3%)
Dreyfus Cash Management Money
Market Fund 100 $ --#
Federated Prime Value Obligations
Money Market Fund 14,411,152 14,411
------------
TOTAL MONEY MARKETS 14,411
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (2.1%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 13,314 13,314
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 13,314
------------
TOTAL INVESTMENTS (COST $434,656)+ - 102.0% 634,034
LIABILITIES IN EXCESS OF OTHER ASSETS - (2.0)% (12,655)
------------
NET ASSETS - 100.0% $ 621,379
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
76
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (63.6%)
A.G. Edwards, Inc. 119,835 $ 4,433
Abbott Laboratories 57,103 2,241
Air Products and Chemicals, Inc. 39,600 1,841
Alcoa, Inc. 69,842 1,940
Alltel Corp. 30,000 1,404
American International Group, Inc. 58,619 3,763
Automatic Data Processing, Inc. 48,137 1,785
Avery Dennison Corp. 90,000 4,856
Biomet, Inc. 124,000 3,672
CenturyTel, Inc. 53,850 1,846
ChevronTexaco Corp. 20,380 1,470
Citigroup, Inc. 98,949 4,433
E. I. du Pont de Nemours & Co. 59,923 2,633
Emerson Electric Corp. 80,943 4,347
Exxon Mobil Corp. 125,972 4,482
Fastenal Co. 137,000 5,206
Fiserv, Inc. * 75,000 2,928
Flextronics International Ltd. * 368,560 4,054
General Electric Corp. 181,000 5,148
Gillette Co. 118,000 3,630
Home Depot, Inc. 104,185 3,251
IBM Corp. 41,665 3,385
Intel Corp. 135,000 3,368
Johnson & Johnson 86,000 4,454
Lowe's Cos., Inc. 42,743 2,033
Marsh & McLennan Cos., Inc. 113,037 5,610
Maxim Integrated Products, Inc. 114,000 4,455
McGraw-Hill Cos., Inc. 58,200 3,537
Medtronic, Inc. 46,000 2,369
Mellon Financial Corp. 170,375 5,154
Merck & Co., Inc. 64,000 3,538
Microsoft Corp. 233,000 6,151
Nabors Industries Ltd. * 80,400 2,878
Northern Trust Corp. 101,385 4,426
Omnicom Group, Inc. 74,000 5,467
Parker Hannifin Corp. 37,096 1,710
Paychex, Inc. 67,500 2,196
PepsiCo, Inc. 89,000 4,100
Pfizer, Inc. 208,460 6,955
Praxair, Inc. 51,000 3,297
Questar Corp. 76,000 2,428
Schlumberger Ltd. 24,047 1,084
Target Corp. 110,000 4,215
W.R. Berkley Corp. 39,000 2,000
Wal-Mart Stores, Inc. 113,313 6,335
Walgreen Co. 150,000 4,488
Wells Fargo & Co. 68,534 3,463
Zebra Technologies Corp., Class A * 45,352 3,518
------------
TOTAL COMMON STOCKS 171,977
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMERCIAL PAPER (4.3%)
General Electric Co., 1.02%,
8/20/03 ** (f) $ 2,043 $ 2,042
Toyota Motor Credit Corp., 0.98%,
8/13/03 ** (f) 1,550 1,549
Toyota Motor Credit Corp., 1.01%,
8/18/03 ** (f) 2,293 2,292
UBS AG, 1.02%, 8/13/03 ** (f) 5,700 5,698
------------
TOTAL COMMERCIAL PAPER 11,581
------------
CORPORATE BONDS (13.6%)
AIG SunAmerica Global Finance, 6.90%,
3/15/32 1,000 1,072
American Express Co., 3.00%, 5/16/08 1,000 969
Boeing Capital Corp., 5.75%, 2/15/07 500 533
Chase Manhattan Auto Owner Trust,
4.55%, 8/15/05 656 663
Chase Manhattan Auto Owner Trust,
1.52%, 5/15/07 2,365 2,345
CIT Group Inc., 2.61%, 1/31/05 1,000 1,017
Citibank Credit Card Issuance Trust,
6.88%, 11/16/09 3,000 3,392
Citigroup, Inc., 6.50%, 2/7/06 1,000 1,083
Citigroup, Inc., 6.00%, 2/21/12 2,500 2,645
Conoco Funding Co., 6.35%, 10/15/11 1,000 1,097
General Electric Capital Corp., 6.75%,
3/15/32 300 314
General Motors, 7.13%, 7/15/13 850 829
Goldman Sachs Group, Inc., 6.60%,
1/15/12 1,500 1,635
Greenwich Capital Commercial Funding
Corp., 4.95%, 1/11/35 3,000 2,934
Lehman Brothers TRAINS,
6.96%, 1/15/12 (d)(e) 2,978 3,268
Lehman Brothers TRAINS,
7.75%, 11/15/31 (d)(e) 2,860 3,197
Lockheed Martin Corp., 7.65%, 5/1/16 1,500 1,763
Morgan Stanley Dean Witter & Co.,
5.30%, 3/1/13 800 787
Navistar Financial Corp Owner Trust,
1.73%, 2/15/07 2,500 2,482
Norfolk Southern, 9.00%, 3/1/21 1,500 1,851
Verizon Florida, Inc., 6.13%, 1/15/13 1,000 1,055
Wachovia Corp., 3.50%, 8/15/08 1,000 976
Washington Mutual, Inc., 5.63%, 1/15/07 800 864
------------
TOTAL CORPORATE BONDS 36,771
------------
CONTINUED
77
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES (17.5%)
FANNIE MAE (10.7%)
6.63%, 9/15/09 $ 1,000 $ 1,129
5.50%, 4/25/14 2,562 2,624
6.50%, 6/1/16 3,951 4,143
5.50%, 1/1/18 4,105 4,185
4.50%, 5/1/18, TBA 2,250 2,194
5.00%, 6/1/18 1,999 1,998
4.00%, 2/25/21 2,000 2,034
7.50%, 6/1/27 136 145
7.50%, 12/1/27 485 515
7.50%, 12/1/27 65 69
7.00%, 9/1/31 1,129 1,181
5.00%, 5/1/33 1,883 1,803
5.50%, 6/1/33, TBA 5,500 5,439
5.00%, 6/1/33, TBA 1,500 1,436
------------
28,895
------------
FEDERAL HOME LOAN BANK (1.7%)
2.50%, 3/15/06 4,200 4,206
3.38%, 7/21/08 500 492
------------
4,698
------------
FREDDIE MAC (2.7%)
2.62%, 7/15/08 500 476
6.63%, 9/15/09 500 564
7.50%, 7/1/27 36 38
7.50%, 8/1/27 104 111
7.50%, 11/1/27 222 236
7.50%, 12/1/27 218 232
6.50%, 5/1/31 1,088 1,117
6.50%, 8/15/31 789 816
6.00%, 11/1/31 1 1
6.50%, 11/1/31 2,773 2,847
6.25%, 7/15/32 800 813
------------
7,251
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (2.4%)
6.00%, 12/15/28 2,139 2,180
6.50%, 4/15/32 1,601 1,658
7.00%, 7/20/32 804 841
5.00%, 7/1/33, TBA 2,000 1,923
------------
6,602
------------
TOTAL U.S. GOVERNMENT AGENCIES 47,446
------------
U.S. TREASURY OBLIGATIONS (2.4%)
U.S. TREASURY BONDS (1.5%)
8.75%, 11/15/08 980 1,001
6.88%, 8/15/25 350 413
6.25%, 5/15/30 2,500 2,766
------------
4,180
------------
U.S. TREASURY NOTES (0.9%)
3.63%, 5/15/13 2,500 2,332
------------
TOTAL U.S. TREASURY OBLIGATIONS 6,512
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (3.4%)
Dreyfus Cash Management Money
Market Fund 113 $ --#
Federated Prime Value Obligations
Money Market Fund 9,072,412 9,072
------------
TOTAL MONEY MARKETS 9,072
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (3.7%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 9,870 9,870
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 9,870
------------
TOTAL INVESTMENTS (COST $285,301)+ - 108.5% 293,229
LIABILITIES IN EXCESS OF OTHER ASSETS - (8.5)% (23,067)
------------
NET ASSETS - 100.0% $ 270,162
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
78
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (84.3%)
ActivCard S.A. * 250,000 $ 2,057
AMCOL International Corp. 40,000 377
American Building Control, Inc. * 294,800 395
Ameron International Corp. 15,000 509
Anaren, Inc. * 150,000 1,652
Angelica Corp. 20,000 381
Apogee Enterprises, Inc. 50,000 512
ArthroCare Corp. * 75,000 1,256
Associated Estates Realty Corp. 103,500 654
Ault, Inc. * 323,000 740
Aviall, Inc. * 150,000 1,860
Bassett Furniture Industries, Inc. 150,000 2,061
BEI Technologies, Inc. 100,000 1,363
BKF Capital Group * 110,000 2,314
Blair Corp. 46,600 1,050
Bombay Co., Inc. * 240,000 2,408
Brush Wellman, Inc. * 260,000 2,235
BUCA, Inc. * 190,014 1,165
Calgon Carbon Corp. 171,000 1,103
Capstone Turbine Corp. * 340,000 398
Carrington Laboratories, Inc. * 150,220 541
Century Business Services, Inc. * 411,000 1,406
Cepheid, Inc. * 120,000 674
Championship Auto Racing
Teams, Inc. * 150,000 254
Chronimed, Inc. * 130,835 1,501
Cobra Electronics Corp. * 268,154 1,617
Compudyne Corp. * 30,600 296
Comstock Resources, Inc. * 249,900 3,212
Concord Camera Corp. * 200,379 1,823
Cubic Corp. 55,000 1,357
Cutter & Buck, Inc. * 165,801 894
DHB Industries, Inc. * 140,000 595
Drill-Quip, Inc. * 40,000 628
Edelbrock Corp. 144,000 1,627
Enesco Group, Inc. * 160,000 1,216
Ethyl Corp. * 65,000 754
Flow International Corp. * 168,300 226
Frozen Food Express Industries, Inc. * 230,000 883
General Cable Corp. 118,300 840
GSI Lumonics, Inc. * 150,000 1,319
Haggar Corp. 125,000 1,713
Harken Energy Corp. * 240,000 74
Hartmarx Corp. * 400,000 1,272
Heidrick & Struggles
International, Inc. * 100,000 1,792
Hologic, Inc. * 175,000 2,437
InfoSpace, Inc. * 25,000 401
Input/Output, Inc. * 120,000 594
Iomega Corp. * 31,000 362
Ionics, Inc. * 20,000 458
K2, Inc. * 124,480 2,054
Kaneb Services LLC 35,101 973
KVH Industries, Inc. * 120,000 2,410
Lazare Kaplan International, Inc. * 192,000 1,075
LESCO, Inc. * 140,000 1,330
Material Sciences Corp. 75,900 716
Maxwell Technologies, Inc. * 60,300 422
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Meade Instruments Corp. * 300,000 $ 840
Meadowbrook Insurance Group * 110,000 341
Media 100, Inc. * 162,810 186
Mercury Air Group, Inc. 77,500 504
Mesaba Holdings, Inc. * 46,000 347
Michael Baker Corp. * 110,000 1,105
Midas, Inc. * 100,000 1,391
Midway Games, Inc. * 100,000 215
Monterey Pasta Co. * 150,000 665
Movado Group, Inc. 50,000 1,155
MTS Systems 75,000 1,121
MVC Capital * 15,000 120
Nanometrics, Inc. * 225,000 1,766
National Dentex Corp. (a) * 35,000 737
Northwest Pipe Co. * 62,000 908
Oglebay Norton Co. * 33,000 94
Olympic Steel, Inc. * 300,000 1,208
On Assignment, Inc. * 100,000 542
Optimal Robotics Corp. * 160,009 1,112
Orthologic Corp. * 114,400 575
OSI Systems, Inc. * 50,000 768
Osteotech, Inc. * 120,000 1,620
Overland Storage, Inc. * 75,000 1,541
PAREXEL International Corp. * 20,000 293
Pemstar, Inc. * 183,000 562
Perceptron, Inc. * 90,213 546
Pharmacopeia, Inc. * 200,000 2,280
Pioneer Standard Electronics, Inc. 85,000 763
Plato Learning, Inc. * 235,000 1,340
Power-One, Inc. * 100,000 1,058
Price Legacy Corp. * 385,000 1,467
Prime Hospitality Corp. * 130,000 972
R.G. Barry Corp. * 260,000 1,147
Register.com, Inc. * 165,000 995
Rocky Shoes & Boots, Inc. * 235,000 2,403
RTI International Metals, Inc. * 140,000 1,413
Safeguard Scientifics, Inc. * 660,400 1,909
Saucony, Inc. 66,200 960
Sea Containers, Ltd. 180,000 2,320
SeeBeyond Technology Corp. * 118,000 236
Skechers U.S.A., Inc. * 150,000 990
Smith & Wollensky Restaurant
Group, Inc. * 70,000 384
SonicWALL, Inc. * 500,000 2,689
Southwestern Energy Co. * 28,000 426
Steinway Musical Instruments, Inc. * 107,000 1,792
Stewart & Stevenson Services, Inc. 70,000 1,127
Strategic Distribution, Inc. * 139,100 2,120
Stride Rite Corp. 31,500 316
Superior Uniform Group, Inc. 35,000 469
Symmetricom, Inc. * 710,154 3,614
Systemax, Inc. * 90,000 531
Terra Nitrogen Company, L.P. 35,000 176
Texas Pacific Land Trust 4,500 214
Theragenics Corp. * 265,000 1,174
CONTINUED
79
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Tweeter Home Entertainment
Group, Inc. * 110,000 $ 835
US Oncology, Inc. * 70,000 561
Vans, Inc. * 100,000 879
Ventiv Health, Inc. * 60,000 306
Vignette Corp. * 500,000 1,060
Volt Information Sciences, Inc. * 100,000 1,869
Willbros Group, Inc. * 85,000 812
------------
TOTAL COMMON STOCKS 126,105
------------
PREFERRED STOCKS (2.2%)
Andrew Corp., 7.75% 25,000 3,317
------------
TOTAL PREFERRED STOCKS 3,317
------------
INVESTMENT COMPANIES (1.8%)
Brantley Capital Corp. 75,900 622
Equus II, Inc. 120,600 1,036
Malaysia Fund, Inc. 35,200 158
Royce Micro-Cap Trust 83,465 912
------------
TOTAL INVESTMENT COMPANIES 2,728
------------
REPURCHASE AGREEMENTS (12.0%)
UBS Investment Bank, 1.05%,
8/1/03 (Proceeds at maturity $18,016,
Collateralized by various
U.S. Treasury securities) $ 18,015 18,015
------------
TOTAL REPURCHASE AGREEMENTS 18,015
------------
TOTAL INVESTMENTS (COST $119,099)+ - 100.3% 150,165
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (430)
------------
NET ASSETS - 100.0% $ 149,735
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (91.6%)
A.G. Edwards, Inc. 9,000 $ 333
Adolph Coors Co. 15,600 801
AGL Resources 13,600 373
Agrium, Inc. 44,700 501
Albany International Corp. 22,600 646
Allete, Inc. 18,600 498
AMCOL International Corp. 72,280 681
American Financial Realty Trust 42,750 630
Ametek, Inc. 2,000 79
Ann Taylor Stores Corp. * 38,400 1,084
Arrow Electronics, Inc. * 15,400 263
Atmel Corp. * 42,000 135
Avnet, Inc. * 20,000 288
Axis Capital Holdings, Ltd. * 28,500 746
BankAtlantic Bancorp, Inc. 55,500 774
Borg Warner, Inc. 7,700 514
Brookline Bancorp, Inc. 44,100 657
Circuit City Stores, Inc. 55,200 507
City National Corp. 4,800 242
Colonial Bancgroup, Inc. 44,950 670
Community Health System, Inc. * 34,100 758
Constellation Brands, Inc. * 16,900 488
Corn Products International, Inc. 19,050 596
Corrections Corp. of America * 25,750 635
Covance, Inc. * 14,400 298
Cullen/Frost Bankers, Inc. 26,550 971
Cypress Semiconductor Corp. * 24,350 340
Denbury Resources, Inc. * 12,300 159
Diagnostic Products Corp. 11,900 456
Dillard's Department Stores, Inc. 15,000 226
DuPont Photomask, Inc. * 6,400 131
El Paso Electric Co. * 57,900 671
Electronics for Imaging, Inc. * 29,300 615
ElkCorp 38,300 928
Emcor Group, Inc. * 8,250 341
Erie Indemnity Co., Class A 20,650 834
Fairchild Semiconductor Corp. * 49,150 627
Fairmont Hotels & Resorts, Inc. 16,100 406
Firstmerit Corp. 7,800 186
Florida East Coast Industries, Inc. 23,300 655
Fossil, Inc. * 25,500 648
Furniture Brands International, Inc. * 19,300 459
Glamis Gold, Ltd. * 42,000 529
Global Industries, Ltd. * 89,000 409
Goldcorp, Inc. 39,000 473
Graftech International, Ltd. * 48,000 331
Henry Schein, Inc. * 10,700 625
Hollywood Entertainment Corp. * 44,500 745
Houston Exploration Co. * 9,300 299
Humana, Inc. * 24,400 427
Imation Corp. 20,100 717
Independence Community Bank Corp. 25,200 821
Integrated Device Technologies, Inc. * 54,050 622
CONTINUED
80
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Inter-Tel, Inc. 1,600 $ 41
International Multi-Foods Corp. * 32,600 815
IPC Holdings, Ltd. 20,400 702
iStar Financial, Inc. 14,500 526
J.B. Hunt Transport Services, Inc. * 14,500 684
Jack in the Box, Inc. * 19,700 420
Jacuzzi Brands, Inc. * 101,100 608
Jones Apparel Group, Inc. * 20,350 589
L-3 Communications Holdings, Inc. * 22,850 1,121
La-Z-Boy, Inc. 23,550 503
Lam Research Corp. * 26,500 577
Legg Mason, Inc. 9,850 690
Lindsay Manufacturing Co. 32,950 758
Linens 'n Things, Inc. * 20,400 546
MacDermid, Inc. 19,500 560
Macerich Co. 17,200 641
Manor Care, Inc. * 10,000 285
Mercury General Corp. 6,300 294
Mesa Air Group, Inc. * 66,400 708
Mills Corp. 17,200 612
Minerals Technologies, Inc. 13,500 674
Murphy Oil Corp. 9,500 469
National-Oilwell, Inc. * 34,100 628
New Plan Excel Realty Trust 21,900 491
NL Industries, Inc. 33,900 605
NN, Inc. 47,826 568
Nordson Corp. 5,000 121
Nordstrom, Inc. 13,400 283
Nuveen Investments, Inc. 21,300 592
O'Reilly Automotive, Inc. * 20,050 763
ONEOK, Inc. 34,100 711
Orthodontic Centers of America, Inc. * 25,000 197
Owens & Minor, Inc. 16,450 411
PacifiCare Health Systems, Inc. * 9,600 537
Peabody Energy Corp. 19,100 586
Pentair, Inc. 17,200 694
PepsiAmericas, Inc. 27,400 368
PerkinElmer, Inc. 30,000 446
Perot Systems Corp. * 47,700 518
Philadelphia Consolidated
Holding Corp. * 17,200 694
Polo Ralph Lauren 15,000 396
Precision Castparts Corp. 6,700 216
Precision Drilling * 13,600 494
Province Healthcare Co. * 42,000 563
Puget Energy, Inc. 27,200 595
Raymond James Financial, Inc. 9,100 316
Republic Services, Inc. * 27,850 674
Robert Mondavi Corp. * 11,000 275
Rouse Co. 15,950 638
Royal Gold, Inc. 22,400 502
RPM International, Inc. 63,500 892
Ruby Tuesday, Inc. 27,250 620
Shaw Group, Inc. * 6,500 55
Sky Financial Group, Inc. 32,350 751
SL Green Realty Corp. 11,000 394
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Smithfield Foods, Inc. * 31,450 $ 670
Sovereign Bancorp, Inc. 47,700 856
Spanish Broadcasting System, Inc. * 67,650 553
Stewart Enterprises, Inc. * 146,700 647
Sunrise Assisted Living, Inc. * 11,100 276
Superior Industries International, Inc. 15,950 690
Swift Transportation Co., Inc. * 12,300 271
The Steak n Shake Co. * 27,100 407
Unisource Energy Corp. 29,750 543
Universal American Financial Corp. * 89,500 601
Vectren Corp. 13,500 313
Veritas DGC, Inc. * 33,000 324
W.W. Grainger, Inc. 12,300 605
Watts Industries, Inc. 38,050 696
West America Bank Corp. 17,200 761
Whitney Holding Corp. 13,600 470
Wisconsin Energy Corp. 21,150 595
Wolverine World Wide, Inc. 34,100 652
------------
TOTAL COMMON STOCKS 67,195
------------
FOREIGN COMMON STOCKS (0.4%)
PT Indonesian Satellite Corp., ADR 27,800 278
------------
TOTAL FOREIGN COMMON STOCKS 278
------------
REPURCHASE AGREEMENTS (3.0%)
UBS Investment Bank, 1.05%, 8/1/03
(Proceeds at maturity $2,189,
Collateralized by various
U.S. Treasury securities) $ 2,189 2,189
------------
TOTAL REPURCHASE AGREEMENTS 2,189
------------
MONEY MARKETS (5.8%)
Dreyfus Cash Management Money
Market Fund 2,138,338 2,138
Federated Prime Value Obligations
Money Market Fund 2,135,205 2,135
------------
TOTAL MONEY MARKETS 4,273
------------
TOTAL INVESTMENTS (COST $66,866)+ - 100.8% 73,935
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8)% (602)
------------
NET ASSETS - 100.0% $ 73,333
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
81
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (84.7%)
3Com Corp. * 315,000 $ 1,537
ADC Telecommunications, Inc. * 235,000 512
AK Steel Holding Corp. * 110,000 264
American Electric Power Co. 50,000 1,403
American Express Co. 75,000 3,313
American Power Conversion Corp. * 80,000 1,394
Ameritrade Holding Corp. * 475,000 4,560
Andrew Corp. * 225,000 2,450
Aon Corp. 50,000 1,203
Apache Corp. 34,650 2,147
Apple Computer, Inc. * 160,000 3,368
Applied Materials, Inc. * 160,000 3,120
Archer-Daniels-Midland Co. 115,000 1,511
AT&T Corp. 50,000 1,063
Becton, Dickinson & Co. 50,000 1,832
Berkshire Hathaway, Inc. * 1,000 2,403
Big Lots, Inc. * 100,000 1,541
Bob Evans Farms, Inc. 100,000 2,820
Borg Warner, Inc. 55,000 3,672
Bristol-Myers Squibb Co. 100,000 2,620
Brunswick Corp. 60,000 1,617
Cadbury Schweppes PLC ADR 35,000 852
Carnival Corp. 30,000 1,029
Celera Genomics * 180,000 1,811
Charles Schwab Corp. 305,000 3,175
ChevronTexaco Corp. 30,000 2,163
CIGNA Corp. 35,000 1,637
Cincinnati Financial Corp. 20,000 786
Coherent, Inc. * 80,000 1,958
Comcast Corp., Class A * 50,000 1,516
Comverse Technology, Inc. * 175,000 2,581
ConAgra, Inc. 100,000 2,253
ConocoPhillips 50,000 2,617
Cree, Inc. * 20,000 267
CSX Corp. 40,000 1,252
Cubic Corp. 42,200 1,041
CVS Corp. 30,000 900
Diebold, Inc. 75,000 3,316
Dominion Resources, Inc. 15,000 902
Duke Energy Corp. 85,000 1,491
E*TRADE Group, Inc. * 305,000 2,794
Electronic Data Systems Corp. 50,000 1,114
EMC Corp. * 135,000 1,436
Florida East Coast Industries, Inc.,
Class B 106,000 2,968
Foot Locker, Inc. 255,000 3,816
Furniture Brands International, Inc. * 135,000 3,208
General Dynamics Corp. 40,000 3,174
Goodrich Corp. 30,000 690
Goodyear Tire & Rubber Co. 162,400 895
Harris Corp. 100,000 3,237
HCA, Inc. 40,000 1,410
Hewlett-Packard Co. 160,000 3,387
Hillenbrand Industries, Inc. 40,000 2,179
Home Depot, Inc. 100,000 3,120
Honeywell International, Inc. 110,000 3,111
Humana, Inc. * 210,000 3,679
Intel Corp. 100,000 2,495
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Ionics, Inc. * 100,000 $ 2,291
Irwin Financial Corp. 25,000 583
J.C. Penney Co., Inc. 50,000 929
J.P. Morgan Chase & Co. 85,000 2,979
JDS Uniphase Corp. * 400,000 1,204
Kerr-McGee Corp. 40,000 1,760
KeyCorp 100,000 2,690
Kimberly-Clark Corp. 50,000 2,420
King Pharmaceuticals, Inc. * 160,000 2,410
Liberty Media Corp., Class A * 365,000 4,048
Lucent Technologies, Inc. * 620,000 1,091
Marathon Oil Corp. 120,000 3,089
Masco Corp. 85,000 2,071
May Department Stores Co. 110,000 2,718
McDonald's Corp. 100,000 2,301
Millenium Pharmaceuticals, Inc. * 220,000 2,763
Motorola, Inc. 225,000 2,034
Neiman Marcus Group, Inc. * 11,200 412
Neiman Marcus Group, Inc., Class A * 48,000 1,886
Newell Rubbermaid, Inc. 30,000 709
Novell, Inc. * 682,000 2,421
Orthodontic Centers of America, Inc. * 25,000 197
Pall Corp. 160,000 3,611
Pfizer, Inc. 85,000 2,835
Pier 1 Imports, Inc. 80,000 1,488
Plum Creek Timber Co., Inc. 47,000 1,277
Prime Hospitality Corp. * 198,800 1,487
Saks, Inc. * 75,000 848
Schering-Plough Corp. 150,000 2,547
Schlumberger Ltd. 70,000 3,155
Scientific-Atlanta, Inc. 172,100 5,214
Snap-On, Inc. 30,000 850
Stanley Works 75,000 2,124
Stewart & Stevenson Services, Inc. 120,000 1,932
Sun Microsystems, Inc. * 200,000 748
SUPERVALU, Inc. 160,000 3,769
The Walt Disney Co. 135,000 2,959
Thomas & Betts Corp. * 60,000 916
Toro Co. 50,000 1,999
Transocean, Inc. * 200,000 3,914
Trizec Properties, Inc. 125,000 1,485
U.S. Bancorp 80,000 1,962
Union Pacific Corp. 45,000 2,742
Vishay Intertechnology, Inc. * 75,000 998
Waters Corp. * 75,000 2,378
Whirlpool Corp. 30,000 1,943
Winn-Dixie Stores, Inc. 120,000 1,375
------------
TOTAL COMMON STOCKS 216,172
------------
CONTINUED
82
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
CONVERTIBLE PREFERRED STOCK (C) (0.5%)
Equity Residential Properties, $1.81,
Series G 33,900 $ 876
Glenborough Realty, $1.94, Series A 19,000 461
------------
TOTAL CONVERTIBLE PREFERRED STOCK 1,337
------------
INVESTMENT COMPANIES (4.3%)
iShares Russell 1000 Value Index 75,000 3,858
iShares S&P 500/BARRA Value Index 75,000 3,662
John Hancock Bank & Thrift
Opportunity Fund 325,000 2,918
Technology Select Sector SPDR 30,000 528
------------
TOTAL INVESTMENT COMPANIES 10,966
------------
REPURCHASE AGREEMENTS (10.5%)
UBS Investment Bank, 1.05%,
8/1/03 (Proceeds at maturity $26,743,
Collateralized by various
U.S. Treasury securities) $ 26,742 26,742
------------
TOTAL REPURCHASE AGREEMENTS 26,742
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (6.9%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) 17,700 17,700
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 17,700
------------
TOTAL INVESTMENTS (COST $236,133)+ - 106.9% 272,917
LIABILITIES IN EXCESS OF OTHER ASSETS - (6.9)% (17,595)
------------
NET ASSETS - 100.0% $ 255,322
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (93.5%)
Abbott Laboratories 115,550 $ 4,535
Allstate Corp. 76,000 2,890
American Electric Power Co. 243,000 6,818
Aon Corp. 309,000 7,431
AT&T Corp. 143,600 3,053
AT&T Wireless Services, Inc. * 263,000 2,243
Best Buy Co. * 57,000 2,488
Bob Evans Farms, Inc. 61,000 1,720
Bristol-Myers Squibb Co. 190,000 4,978
Brunswick Corp. 125,000 3,369
Carnival Corp. 357,000 12,248
Caterpillar, Inc. 220,000 14,843
ChevronTexaco Corp. 80,000 5,769
CIT Group, Inc. 50,000 1,394
ConAgra, Inc. 356,000 8,021
ConocoPhillips 214,509 11,227
Cooper Industries, Ltd. 20,500 909
Corning, Inc. * 358,000 2,914
CVS Corp. 367,000 11,006
Dow Chemical Co. 269,000 9,495
Equity Office Properties Trust 58,000 1,609
FleetBoston Financial Corp. 343,000 10,665
FPL Group, Inc. 94,000 5,797
Gannett, Inc. 99,000 7,606
General Dynamics Corp. 100,000 7,934
Halliburton Co. 269,000 5,964
Hartford Financial Services Group, Inc. 190,000 9,917
HCA, Inc. 100,000 3,525
Hewlett-Packard Co. 323,000 6,838
Honda Motor Co. Ltd. 314,000 6,205
Honeywell International, Inc. 231,000 6,532
Humana, Inc. * 49,000 858
IBM Corp. 55,500 4,509
Intel Corp. 335,000 8,358
International Paper Co. 254,100 9,940
J.P. Morgan Chase & Co. 369,000 12,933
KeyCorp 396,000 10,656
King Pharmaceuticals, Inc. * 150,000 2,259
Marathon Oil Corp. 312,000 8,031
Masco Corp. 229,000 5,581
May Department Stores Co. 280,000 6,919
McDonald's Corp. 151,000 3,475
Merck & Co., Inc. 106,500 5,888
Merrill Lynch & Co., Inc. 229,000 12,451
Motorola, Inc. 98,000 886
Newell Rubbermaid, Inc. 116,000 2,741
Parker Hannifin Corp. 183,000 8,437
Pepco Holdings, Inc. 86,000 1,490
Royal Dutch Petroleum Co. 82,000 3,574
RPM International, Inc. 92,300 1,299
Schering-Plough Corp. 98,000 1,664
SunTrust Banks, Inc. 137,000 8,343
SUPERVALU, Inc. 55,000 1,295
Thomas & Betts Corp. * 71,000 1,083
Transocean, Inc. * 108,000 2,114
Verizon Communications, Inc. 293,000 10,214
CONTINUED
83
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Weyerhaeuser Co. 61,000 $ 3,434
Whirlpool Corp. 47,000 3,045
------------
TOTAL COMMON STOCKS 331,420
------------
MONEY MARKETS (6.4%)
Dreyfus Cash Management Money
Market Fund 11,356,476 11,356
Federated Prime Value Obligations
Money Market Fund 11,263,614 11,264
------------
TOTAL MONEY MARKETS 22,620
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (1.2%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 4,111 4,111
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 4,111
------------
TOTAL INVESTMENTS (COST $311,753)+ - 101.1% 358,151
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.1)% (3,792)
------------
NET ASSETS - 100.0% $ 354,359
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LIFEMODEL AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (99.7%)
Fifth Third Disciplined Large Cap
Value Fund 947,804 $ 11,232
Fifth Third Intermediate Bond Fund 134,338 1,349
Fifth Third International GDP Fund 342,396 3,605
Fifth Third Mid Cap Growth Fund * 462,304 5,557
Fifth Third Multi Cap Value Fund * 290,488 5,525
Fifth Third Prime Money Market Fund 607,918 608
Fifth Third Quality Growth Fund 787,488 11,206
Fifth Third Small Cap Growth Fund * 233,840 3,718
Fifth Third Small Cap Value Fund * 210,575 3,691
------------
TOTAL INVESTMENTS IN AFFILIATES 46,491
------------
TOTAL INVESTMENTS (COST $39,318)+ - 99.7% 46,491
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 139
------------
NET ASSETS - 100.0% $ 46,630
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
84
LIFEMODEL MODERATELY AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (99.7%)
Fifth Third Bond Fund 431,178 $ 4,295
Fifth Third Disciplined Large Cap
Value Fund 1,782,946 21,127
Fifth Third Intermediate Bond Fund 1,182,238 11,870
Fifth Third International GDP Fund 617,494 6,502
Fifth Third Mid Cap Growth Fund * 912,959 10,974
Fifth Third Multi Cap Value Fund * 575,509 10,946
Fifth Third Prime Money Market Fund 1,496,233 1,496
Fifth Third Quality Growth Fund 1,473,333 20,966
Fifth Third Short Term Bond Fund 892,235 8,699
Fifth Third Small Cap Growth Fund * 417,922 6,645
Fifth Third Small Cap Value Fund * 376,205 6,595
------------
TOTAL INVESTMENTS IN AFFILIATES 110,115
------------
TOTAL INVESTMENTS (COST $97,992)+ - 99.7% 110,115
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 360
------------
NET ASSETS - 100.0% $ 110,475
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LIFEMODEL MODERATE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (99.6%)
Fifth Third Bond Fund 797,981 $ 7,948
Fifth Third Disciplined Large Cap
Value Fund 1,297,905 15,380
Fifth Third Intermediate Bond Fund 2,386,870 23,964
Fifth Third International GDP Fund 435,393 4,585
Fifth Third Mid Cap Growth Fund * 772,482 9,285
Fifth Third Multi Cap Value Fund * 486,927 9,261
Fifth Third Prime Money Market Fund 1,396,687 1,397
Fifth Third Quality Growth Fund 1,072,505 15,262
Fifth Third Short Term Bond Fund 1,769,231 17,250
Fifth Third Small Cap Growth Fund * 368,590 5,861
Fifth Third Small Cap Value Fund * 331,567 5,812
------------
TOTAL INVESTMENTS IN AFFILIATES 116,005
------------
TOTAL INVESTMENTS (COST $106,112)+ - 99.6% 116,005
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.4% 490
------------
NET ASSETS - 100.0% $ 116,495
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
85
LIFEMODEL MODERATELY CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (99.7%)
Fifth Third Bond Fund 617,730 $ 6,153
Fifth Third Disciplined Large Cap
Value Fund 663,514 7,863
Fifth Third Intermediate Bond Fund 1,779,283 17,864
Fifth Third International GDP Fund 262,140 2,760
Fifth Third Mid Cap Growth Fund * 348,828 4,193
Fifth Third Multi Cap Value Fund * 219,885 4,182
Fifth Third Prime Money Market Fund 860,030 860
Fifth Third Quality Growth Fund 548,280 7,802
Fifth Third Short Term Bond Fund 1,278,289 12,463
Fifth Third Small Cap Growth Fund * 177,421 2,821
Fifth Third Small Cap Value Fund * 159,710 2,800
------------
TOTAL INVESTMENTS IN AFFILIATES 69,761
------------
TOTAL INVESTMENTS (COST $65,439)+ - 99.7% 69,761
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 200
------------
NET ASSETS - 100.0% $ 69,961
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LIFEMODEL CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (100.0%)
Fifth Third Bond Fund 434,770 $ 4,330
Fifth Third Disciplined Large Cap
Value Fund 132,313 1,568
Fifth Third Intermediate Bond Fund 1,300,458 13,056
Fifth Third International GDP Fund 69,189 729
Fifth Third Mid Cap Growth Fund * 122,757 1,476
Fifth Third Multi Cap Value Fund * 77,378 1,472
Fifth Third Prime Money Market Fund 114,832 115
Fifth Third Quality Growth Fund 109,335 1,556
Fifth Third Short Term Bond Fund 937,169 9,136
Fifth Third Small Cap Growth Fund * 93,763 1,491
Fifth Third Small Cap Value Fund * 84,304 1,478
------------
TOTAL INVESTMENTS IN AFFILIATES 36,407
------------
TOTAL INVESTMENTS (COST $35,121)+ - 100.0% 36,407
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (8)
------------
NET ASSETS - 100.0% $ 36,399
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
86
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (16.6%)
Abbott Laboratories 16,675 $ 654
Arthur J. Gallagher & Co. 35,475 941
CenterPoint Properties Trust 14,700 935
Charter One Financial, Inc. 26,425 859
Citigroup, Inc. 14,300 641
ConAgra, Inc. 75,200 1,694
Eli Lilly & Co. 7,130 469
First Tennessee National Corp. 13,300 571
General Electric Corp. 14,335 408
Health Care Property Investors, Inc. 30,125 1,320
Hershey Foods Corp. 6,450 470
Jefferson-Pilot Corp. 6,175 272
Kimco Realty Corp. 38,100 1,559
Pan Pacific Retail Properties, Inc. 38,025 1,627
Pfizer, Inc. 22,425 749
Procter & Gamble Co. 12,150 1,068
SouthTrust Corp. 31,600 905
Sysco Corp. 25,525 769
Vectren Corp. 31,950 741
Vornado Realty Trust 34,100 1,563
Washington Mutual, Inc. 63,995 2,527
Weingarten Realty Investors 44,550 1,931
Wells Fargo & Co. 15,945 806
------------
TOTAL COMMON STOCKS 23,479
------------
CONVERTIBLE PREFERRED STOCK (C) (1.7%)
Equity Residential Properties, $1.81,
Series G 40,000 1,034
Glenborough Realty, $1.94, Series A 55,000 1,334
------------
TOTAL CONVERTIBLE PREFERRED STOCK 2,368
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS (7.8%)
Amvescap, PLC, 5.38%, 2/27/13 $ 500 $ 474
Bear Stearns Co., Inc., 4.65%, 7/2/18 1,000 877
Bristol-Meyers Squibb Co.,
5.75%, 10/1/11 250 263
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 500 485
Core Invest Grade Trust, 4.73%,
11/30/07 500 511
Credit Suisse First Boston, 6.50%,
1/15/12 250 269
CVS Corp., 7.77%, 1/10/12 947 1,010
Daimler Chrysler, 7.75%, 1/18/11 250 276
Dow Chemical, 6.00%, 10/1/12 250 254
Dresdner Bank, 7.25%, 9/15/15 250 265
Goldman Sachs Group, Inc., 6.88%,
1/15/11 250 279
Goldman Sachs Group, Inc., 4.75%,
7/15/13 1,000 947
Hutchison Whampoa International, Ltd.,
6.50%, 2/13/13 (e) 1,000 996
Inco Ltd., 7.75%, 3/15/16 199 200
John Deere Capital Corp., 7.00%,
3/15/12 250 281
Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,571
Kroger Co., 6.75%, 4/15/12 500 540
Lehman Brothers TRAINS, 6.50%,
8/15/08 (d)(e) 504 542
Radian Group, Inc., 5.63%, 2/15/13 500 490
Washington Mutual Bank, 4.82%,
10/25/32 500 511
------------
TOTAL CORPORATE BONDS 11,041
------------
CONTINUED
87
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
CORPORATE BOND EQUIVALENTS (C) (38.6%)
Abbey National PLC, $1.84 24,900 $ 657
Abbey National PLC, $1.84 70,600 1,857
AMBAC Financial Group, Inc. $1.75 59,195 1,504
AMBAC Financial Pfd, $1.49 64,100 1,557
BAC Capital Trust I, $1.75 64,500 1,654
Bear Stearns Capital Trust III, $1.95 58,900 1,556
Citigoup Capital VII, $1.78 52,525 1,369
Citigroup Capital IX, $1.50 77,900 1,933
Citigroup Capital VI, $1.72 25,000 637
Cleveland Electric Financial Trust I,
$2.25 10,000 270
ConAgra Capital, $1.25 35,000 878
Consolidated Edison, $1.81 50,700 1,321
Corp-Backed Trust Certs (CBTCS), $1.27 33,500 832
Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,500
Corp-Backed Trust Certs (CBTCS), $1.80 15,800 403
Corp-Backed Trust Certs (CBTCS), $1.38,
Series BLS 30,000 744
Corp-Backed Trust Certs (CBTCS), $1.94,
Series CIT 6,100 164
Corts Countrywide Capital II, $2.00 10,000 262
Corts IBM, $2.71 74,700 1,964
Corts Trust For Chrysler, $3.94 10,000 261
Corts Trust For Disney, $1.47 40,000 1,050
Corts Trust II Safeco Capital I, $2.18 10,000 267
Corts-First Union Capital II, $1.88 17,700 473
Dominion CNG Capital Trust I, $1.95 12,000 317
Duquesne Light Co., $1.68 34,000 882
Energy East Capital, $2.06 5,000 133
Entergy Arkansas, Inc., $1.50 80,600 1,994
Entergy Mississippi, Inc., $1.50 39,000 961
Entergy Mississippi, Inc., $1.81 9,400 251
Fannie Mae, $1.77 4,600 202
FCB\NC Capital Trust II, $2.10 5,000 137
Financial Security Assurance Holdings,
$1.56 90,750 2,227
Fleet Capital Trust VI, $2.20 41,500 1,120
Fleet Captial Trust VII, $1.80 29,200 749
Ford Capital Trust Series II, $3.25 10,000 437
General Electric Capital Corp., $1.47 33,200 825
General Electric Capital Corp., $1.53 19,000 479
General Electric Capital Corp., $1.66 75,300 1,901
Household Capital Trust V, $2.50 10,000 277
Household Finance, $1.72 32,800 820
ING Group NV, $1.88 41,200 1,065
Laclede Capital Trust I, $1.93 10,000 267
MBNA, $2.03 22,000 570
CONTINUED
SHARES VALUE
------------ ------------
CORPORATE BOND EQUIVALENTS (C), CONTINUED
ML Capital Trust III 7.0, $1.75 45,200 $ 1,152
Morgan Stanley Capital II, $1.81 73,925 1,890
National Rural Utility, $1.91 20,000 510
National Rural Utility CFC, $1.91 10,000 261
Nordstrom (CBTCS), $3.81 10,000 273
Pub Cred & Repack Secs, $1.78 15,600 395
Puget Sound Energy Capital Trust, $2.10 13,700 367
Regions Financial Trust I, $2.00 50,100 1,338
Rouchester Gas & Electric, $1.78 42,800 1,113
Saturns JPM, $1.78 12,000 304
Saturns, Series S, $1.23 10,000 250
Sempra Energy Capital Trust I, $2.23 20,800 550
Southern Co. Capital Trust VI, $1.78 54,000 1,417
Stilwell Financial, $1.97 36,800 962
Torchmark Capital Trust I, $1.94 58,819 1,555
Virginia Power Capital Trust, 1.84 26,800 702
Wells Fargo Capital Trust V, $1.75 18,600 482
Wells Fargo Capital Trust VI, $2.10 70,850 1,811
Wells Fargo Capital Trust VII, $1.44 33,500 813
------------
TOTAL CORPORATE BOND EQUIVALENTS 54,872
------------
PREFERRED STOCKS (C) (20.4%)
ABN AMRO Cap Fund Trust V, 5.90% 60,000 1,394
BAC Capital Trust II, $2.13 20,000 524
BAC Capital Trust VI, $1.75 48,600 1,268
Bank One Capital V, $2.00 76,300 2,054
Bell South, $1.84 66,675 1,697
Corts-Sherwin Williams, $1.81 57,600 1,480
Corts-TR Verizon Global, $3.13 54,500 1,433
Developers Diversified Realty, $2.15 32,000 851
Duke Realty Corp., $2.11 43,500 1,175
Fannie Mae, $2.91 18,800 996
Federal Express, Inc., $1.55 48,400 528
Federal Realty Investment Trust, $2.13 12,000 321
Freddie Mac, $2.50 20,000 955
Freddie Mac, $2.55 10,000 475
Freddie Mac, $2.85 25,500 1,301
Harris Preferred Capital, Series A, $1.84 31,800 804
HRPT Properties Trust, Series B, $2.19 22,900 609
HRPT Properties Trust, $2.47 8,000 217
Huntington Preferred Cap, Inc., $1.97 5,000 135
Kimco Realty Pfd, $0.74 39,994 1,004
Maytag Corp., $1.97 10,000 267
Motorola Capital Trust, $1.67 10,000 233
POST Properties, Inc., Series B, $1.91 12,000 309
PS Business Parks, Inc., $2.38 10,000 266
CONTINUED
88
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
PREFERRED STOCKS (C), CONTINUED
Public Storage, Inc., Series A, $2.45 15,000 $ 420
Public Storage, Inc., Series K, $2.60 15,000 384
Public Storage, Inc., Series S, $1.97 10,000 265
RBS Cap Trust B, 6.80% 500,000 492
SBC Communications, Inc., $1.75 49,700 1,295
Sears Roebuck & Co. Acceptance, $1.75 29,900 742
Simon Property Group, Inc., Series B,
$6.50 14,000 1,544
Suntrust Capital V, $1.76 46,600 1,198
USB Capital V, $1.81 14,100 358
Wachovia Funding, Series A, $1.82 62,600 1,691
Weingarten Rlty, $0.84 10,000 256
------------
TOTAL PREFERRED STOCKS 28,941
------------
U.S. TREASURY NOTES (1.6%)
7.00%, 7/15/06 $ 2,000 2,263
------------
TOTAL U.S. TREASURY OBLIGATIONS 2,263
------------
INVESTMENT COMPANIES (C) (12.7%)
1838 Bond Debenture Trading 127,000 2,457
Aberdeen Commonwealth Income
Fund, Inc. 22,000 253
American Income Fund, Inc. 135,400 1,155
Blackrock Income Trust 108,600 754
Blackrock North American
Government Income 225,000 2,419
Eaton Vance Senior Income Trust 36,400 326
ING Prime Rate Trust 210,400 1,536
MFS Government Markets Income
Trust 217,400 1,439
MFS Intermediate Income Trust 49,000 336
Pioneer Interest Shares 90,700 1,003
Royce Value Trust, Inc., $1.83 15,400 388
Royce Value Trust, Inc., $1.95 59,100 1,493
Scudder Intermediate Government
Trust 85,000 574
Source Capital, $2.40 35,600 1,091
Templeton Global Income Fund, Inc. 61,374 481
CONTINUED
SHARES VALUE
------------ ------------
INVESTMENT COMPANIES (C), CONTINUED
Van Kampen Bond Fund 64,800 $ 1,140
Van Kampen Senior Income Trust 152,000 1,192
------------
TOTAL INVESTMENT COMPANIES 18,037
------------
MONEY MARKETS (0.9%)
Dreyfus Cash Management Money
Market Fund 622,764 623
Federated Prime Value Obligations
Money Market Fund 608,380 608
------------
TOTAL MONEY MARKETS 1,231
------------
TOTAL INVESTMENTS (COST $140,427)+ - 100.3% 142,232
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (428)
------------
NET ASSETS - 100.0% $ 141,804
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
89
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (97.5%)
Agere Systems, Inc., Class A * 725,000 $ 2,037
Agilent Technologies, Inc. * 65,000 1,412
Amdocs Ltd. * 50,000 1,018
America Movil * 35,000 782
Amkor Technology, Inc. * 30,000 440
Analog Devices, Inc. * 35,000 1,328
Applied Materials, Inc. * 75,000 1,463
Atmel Corp. * 125,000 401
BEA Systems, Inc. * 150,000 1,979
Broadcom Corp., Class A * 61,500 1,247
CheckFree Corp. * 2,500 67
Corning, Inc. * 125,000 1,018
Cypress Semiconductor Corp. * 70,000 979
Dot Hill Systems Corp. * 35,000 603
EMC Corp. * 125,000 1,330
Finisar Corp. * 200,000 374
Intel Corp. 20,000 499
InterActiveCorp * 30,000 1,214
Juniper Networks, Inc. * 25,000 361
Komag, Inc. * 20,000 275
Kopin Corp. * 125,000 943
Lexar Media, Inc. * 50,000 686
LSI Logic Corp. * 200,000 1,862
Lucent Technologies, Inc. * 200,000 352
Macromedia, Inc. * 30,000 616
Maxim Integrated Products, Inc. 5,000 195
Mercury Interactive Corp. * 17,500 689
Micrel, Inc. * 55,000 618
Micron Technology, Inc. * 50,000 732
NetScreen Technologies, Inc. * 5,000 108
Network Appliance, Inc. * 50,000 799
Packeteer, Inc. * 30,000 364
Power Integrations, Inc. * 10,000 288
Primus Telecommunications Group, Inc. * 93,100 641
Semtech Corp. * 22,500 371
Tekelec * 52,500 770
Teradyne, Inc. * 30,000 494
TiVo, Inc. * 65,000 708
UnitedGlobalCom * 200,000 1,268
US Cellular Corp. * 17,500 503
VeriSign, Inc. * 100,000 1,335
Veritas Software Corp. * 25,000 770
WebEx Communications, Inc. * 20,000 330
Western Digital Corp. * 37,500 374
Xilinx, Inc. * 11,000 289
Yahoo! Inc. * 40,000 1,245
------------
TOTAL COMMON STOCKS 36,177
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (2.1%)
Dreyfus Cash Management Money
Market Fund 386,390 $ 386
Federated Prime Value Obligations
Money Market Fund 386,006 386
------------
TOTAL MONEY MARKETS 772
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (28.8%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 10,670 10,670
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 10,670
------------
TOTAL INVESTMENTS (COST $37,768)++ - 128.4% 47,619
LIABILITIES IN EXCESS OF OTHER ASSETS - (28.4)% (10,528)
------------
NET ASSETS - 100.0% $ 37,091
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
90
WORLDWIDE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
MUTUAL FUNDS (97.1%)
American Century Small Cap Value
Fund 15,796 $ 126
Artisan International 32,041 519
Artisan Mid Cap Fund Investor Class * 193 4
Contrarian Fund- Class A * 35,001 468
Credit Suisse Global Technology Fund * 84 2
Credit Suisse Japan Growth Fund * 104,146 444
Credit Suisse Pincus Global Post
Venture Capital * 164 2
Driehaus Asia Pacific Growth Fund * 8,397 115
Excelsior Pacific/Asia * 33 --#
Fremont US Micro Cap * 109 3
Fremont US Small Cap * 201 2
Heartland Value 68 3
Henlopen * 159 3
Invesco Energy Fund * 93 2
Invesco Financial Services Fund 32 1
Invesco Gold Fund Investor Class * 59 --#
Invesco Small Company Growth
Investor Class * 258 3
Janus Mid Cap Value Fund 22,583 390
Janus Global Life Sciences * 8,013 114
Janus Mercury * 16 --#
Janus Overseas 505 8
Janus Worldwide 32 1
Liberty Acorn International Fund 25,491 454
Liberty Acorn USA * 14,893 267
Longleaf Partners International 35,333 431
Matthews China 71,142 765
Matthews Korea 161,801 684
Matthews Pacific Tiger Class I * 88,595 917
Mutual Series European Class Z 78,741 1,156
Oakmark International Equity Fund
Class I 28,487 425
Oakmark International Small Cap Class I 64,275 796
Oakmark Select Class I 201 5
PBHG Clipper Focus 38,852 552
Pin Oak Aggressive Stock * 37,880 614
RCM Global Healthcare * 13,241 249
Red Oak Technology Select * 119,727 691
Reich & Tang Delafield Fund, Inc. 10,333 226
RS Diversified Growth Class A * 149 3
RS Emerging Growth Class A * 15,218 371
RS Partners Fund Class A * 35,567 853
Rydex Dynamic Velocity 100 Class H * 69,223 1,100
Rydex- Mekros Fund Class H * 17,170 329
Scudder Latin America Fund 19,709 392
SSgA Emerging Markets Fund 42,409 428
T. Rowe Price Japan FD * 17,153 96
T. Rowe Price New Asia Fund 232 2
Third Ave Small - Cap Value 65,776 1,045
Tocqueville International Value Fund 61,125 558
Turner Micro Cap Growth Class I * 8,112 321
Turner Midcap Growth Fund * 21,807 414
Turner Small Cap Growth Fund Class I * 30,039 546
Van Wagoner Emerging Growth Fund * 134,132 742
CONTINUED
SHARES VALUE
------------ ------------
MUTUAL FUNDS, CONTINUED
Vanguard International Growth Fund 16,070 $ 219
Vanguard International Value Fund 10,181 223
Wasatch Small Cap Value * 181,765 809
------------
TOTAL MUTUAL FUNDS 18,893
------------
MONEY MARKETS (2.9%)
Dreyfus Cash Management Money
Market Fund 284,244 284
Federated Prime Value Obligations
Money Market Fund 282,671 283
------------
TOTAL MONEY MARKETS 567
------------
TOTAL INVESTMENTS (COST $17,582)+ - 100.0% 19,460
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (4)
------------
NET ASSETS - 100.0% $ 19,456
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
91
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS (89.4%)
AUSTRALIA (3.6%)
Amcor, Ltd. 18,382 $ 100
AMP, Ltd. 29,254 93
Ansell, Ltd. * 2,104 8
Australia & New Zealand Banking
Group, Ltd. 31,807 376
Australian Gas & Light Co. 9,947 69
BHP Steel, Ltd. 19,360 52
BHP, Ltd. 78,409 498
Boral, Ltd. 13,803 49
Brambles Industries, Ltd. 21,777 70
Centro Properties Group 14,459 37
CFS Gandel Retail Trust 33,262 29
Coca-Cola Amatil, Ltd. 11,089 42
Coles Myer, Ltd. 23,629 112
Commonwealth Bank of Australia 26,282 508
CSL, Ltd. 2,139 19
CSR, Ltd. 26,319 34
Foster's Group, Ltd. 44,907 130
General Property Trust 43,553 84
Insurance Australia Group 37,385 91
Investa Property Group 28,217 35
James Hardie Industries NV 10,945 52
John Fairfax Holdings, Ltd. 20,597 39
Leighton Holdings, Ltd. 5,524 35
Lend Lease Corp., Ltd. 9,121 51
Macquarie Bank, Ltd. 4,597 91
Macquarie Infrastructure Group 42,053 91
Mayne Nickless, Ltd. 19,807 39
Mirvac Group 16,193 46
National Australia Bank, Ltd. 32,232 683
Newcrest Mining, Ltd. 8,074 46
News Corp., Ltd. 44,250 281
Onesteel, Ltd. 6,088 8
Orica, Ltd. 6,745 53
Origin Energy, Ltd. 6,732 18
Paperlinx, Ltd. 9,339 31
Patrick Corp., Ltd. 4,103 35
QBE Insurance Group, Ltd. 13,822 86
Rinker Group, Ltd. 21,471 74
Rio Tinto, Ltd. 6,763 139
Santos, Ltd. 13,748 56
Sonic Healthcare, Ltd. 2,940 13
Southcorp Holdings, Ltd. 15,668 29
Stockland Trust Group 24,581 80
Suncorp Metway, Ltd. 11,807 93
TABCORP Holdings, Ltd. 8,447 58
Telstra Corp., Ltd. 47,484 144
Transurban Group 11,558 34
Westfarmers, Ltd. 8,265 143
Westfield Holdings, Ltd. 9,404 92
Westfield Trust 48,514 112
Westpac 37,169 400
WMC Resources, Ltd. * 25,744 62
WMC, Ltd. 25,630 80
Woodside Petroleum, Ltd. 10,487 90
Woolworths, Ltd. 21,742 166
------------
5,986
------------
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
AUSTRIA (0.5%)
Boehler-Uddeholm AG 478 $ 26
Erste Bank Der Oesterreichischen
Sparkassen AG 2,344 206
Flughafen Wein AG 890 33
Mayr-Melnhof Karton AG 554 47
OMV AG 788 90
RHI AG * 1,001 14
Telekom Austria AG * 22,881 252
VA Technologie AG * 753 21
Voest-Alpine Stahl AG 2,046 82
Wienerberger Baust 3,193 58
------------
829
------------
BELGIUM (0.5%)
Dexia 20,140 269
Fortis 24,227 446
KBC Bancassurance Holding SA 1,771 71
Solvay SA 1,281 85
UCB Cap NPV Ord 1,200 29
Umicore 108 6
------------
906
------------
CHINA (0.6%)
Aluminum Corp. of China, Ltd. 250,000 74
Beijing Capital International Airport
Co., Ltd. 128,000 36
China Eastern Airlines Corp., Ltd. * 142,000 19
China Petroleum & Chemical Corp. 1,538,000 419
China Shipping Development Co., Ltd. 118,000 48
China Telecom Corp., Ltd. 738,000 199
Guangshen Railway Co., Ltd. 130,000 28
Jiangsu Expressway Co., Ltd. 112,000 46
Jiangxi Copper Co., Ltd. 106,000 22
Shandong International Power
Development Co., Ltd. 126,000 38
Yanzhou Coal Mining Co., Ltd. 94,000 47
Zhejiang Expressway Co., Ltd. 132,000 62
------------
1,038
------------
DENMARK (0.2%)
Danske Bank 18,417 337
Falck AS 700 13
ISS AS 400 14
Novozymes AS 331 9
------------
373
------------
FINLAND (1.2%)
Fortum Oyj 8,049 62
Instrumentarium 400 16
Kesko Oyj-B Shares 3,623 45
Kone Corporation 952 41
Metso Oyj-B Shares 5,722 55
Nokia Oyj 76,096 1,168
Outokumpo Oyj 3,321 30
Sampo Insurance Co. 7,003 51
Stora Enso Oyj 14,802 186
TietoEnator Oyj 3,471 66
UPM-Kym'mene Oyj 11,112 182
Uponor Oyj 182 4
Wartsila Corp. Oyj-B Shares 1,371 18
------------
1,924
------------
CONTINUED
92
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
FRANCE (6.5%)
Accor SA 3,545 $ 133
Alcatel * 18,564 186
Alstom * 1,635 6
Arcelor 4,020 54
Arcelor 3,800 51
Aventis SA 16,774 843
AXA SA 29,476 508
Banque Nationale de Paris 10,862 591
BIC 1,191 46
Bouygues 8,547 226
Cap Gemini * 1,149 46
Carrefour SA 6,390 297
Casino Guichard-Perrachon 843 63
CNP Assurances 1,403 60
Compagnie de Saint Gobain 6,989 279
Credit Agricole SA 2,293 44
Dassault Systems SA 761 26
Essilor International 685 28
Euronext NV 2,487 63
European Aeronautic Defence And
Space Company 1,575 25
France Telecom SA * 15,375 407
Groupe Danone 5,100 695
Imerys SA 343 52
L'Air Liquide SA 2,172 340
L'Oreal SA 12,320 811
Lafarge SA 3,179 213
Lagardere Group SCA 2,304 103
LVMH Moet-Hennessy Louis Vuitton 8,628 474
Pechiney SA-A Shares 1,503 77
Pernod Ricard 1,851 161
Peugeot SA 2,055 91
Pinault Printemps 2,315 187
Renault SA 2,058 115
Sagem SA 178 16
Sanofi-Synthelabo 16,028 903
Schneider Electric SA 3,375 181
Societe Generale-A 4,468 314
Sodexho SA 2,441 71
STMicroelectronics NV 1,761 38
Technip-Coflexip SA 102 9
Thales SA 3,547 112
Total Fina 10,662 1,581
Vinci 375 25
Vivendi Universal * 11,710 206
------------
10,757
------------
GERMANY (3.7%)
Adidas-Salomon AG 187 16
Allianz AG 2,402 255
Altana AG 247 15
BASF AG 10,929 520
Bayer AG 13,386 318
Beiersdorf AG 2,941 354
DaimlerChrysler AG 16,490 592
Deutsche Bank AG 7,365 478
Deutsche Boerse AG 2,971 156
Deutsche Lufthansa AG 3,205 41
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
Deutsche Post AG 1,389 $ 21
Deutsche Telekom AG * 45,130 685
Douglas Holdings AG 1,243 29
Epcos AG * 300 4
Fresenius Medical Care AG 1,188 61
Gehe AG 987 40
Heidelberger Zement AG * 760 23
Infineon Technologies AG * 251 3
Karstadt AG 897 19
Linde AG 2,289 98
MAN AG 907 18
Merck KGAA 1,262 34
Metro AG 2,437 90
Muenchener Rueckver AG 2,294 259
RWE AG 1,327 37
SAP AG 3,191 374
Schering AG 2,262 95
Siemens AG 9,843 554
Thyssen Krupp AG 6,495 85
TUI AG 1,896 28
VEBA AG 13,114 679
Volkswagen AG 4,271 183
------------
6,164
------------
GREAT BRITAIN (21.1%)
AMEC PLC 2,297 10
Arm Holdings PLC * 9,382 13
AstraZeneca PLC 36,580 1,460
Aviva PLC 17,616 146
BAA PLC 31,712 239
BAE Systems PLC 177,970 441
Balfour Beatty 2,527 8
Barclays PLC 148,175 1,115
BG Group PLC 77,259 337
BHP Billiton PLC 53,710 321
BOC Group PLC 11,252 155
Boots Group PLC 12,131 129
BP Amoco PLC 520,116 3,561
BPB PLC 8,505 43
Brambles Industries PLC 27,581 81
British Airways PLC * 43,380 120
British American Tobacco PLC 38,832 396
British Sky Broadcasting
Group PLC * 31,925 362
BT Group PLC 250,397 788
Bunzl PLC 9,927 69
Cadbury Schweppes PLC 71,903 436
Capita Group Ord 30,343 119
Carlton Communications PLC 13,061 35
Carnival PLC Ord 5,176 164
Centrica PLC 52,649 150
Chubb PLC 23,623 28
Compass Group PLC 62,039 333
Davis Service Group 1,928 12
De La Rue PLC 15,024 67
Diageo PLC 127,050 1,298
Dixons Group PLC 49,822 103
Electrocomponents PLC 2,837 16
CONTINUED
93
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
EMI Group PLC 14,456 $ 34
Friends Provident PLC 18,075 40
GKN PLC 18,190 68
Glaxosmithkline PLC 149,614 2,866
Granada Compass PLC 60,226 97
Great Universal Stores PLC 32,003 376
Hanson PLC 16,351 96
Hays PLC 72,976 122
HBOS PLC 100,303 1,250
Hilton Group PLC 61,773 195
HSBC Holdings PLC 211,334 2,616
IMI PLC 2,478 13
Imperial Chemical Industries PLC 26,511 73
Imperial Tobacco Group PLC 17,275 272
InterContinental Hotels Group PLC * 27,621 207
Johnson Matthey PLC 5,329 78
Kelda Group PLC 12,537 89
Kesa Electricals PLC * 6,952 23
Kidde PLC 4,830 7
Kingfisher PLC 30,418 137
Legal & General Group PLC 122,599 199
Lloyds TSB Group PLC 124,849 969
Logica PLC 8,521 23
Marks & Spencer PLC 66,597 334
Misys PLC 15,550 68
Mitchells & Butlers PLC * 27,621 106
National Grid Transco PLC 80,074 497
Nycomed Amersham PLC 19,058 151
Pearson PLC 10,626 100
Peninsular & Oriental Steam
Navigation Co. PLC 17,232 64
Pilkington PLC 5,821 8
Prudential Corp. PLC 37,705 259
Reckitt Benckiser PLC 26,298 484
Reed International PLC 19,188 148
Rentokil Initial PLC 83,107 256
Reuters Holding PLC 26,157 106
Rexam PLC 10,620 70
Rio Tinto PLC 23,818 494
RMC Group PLC 4,908 43
Rolls-Royce Group PLC 84,171 206
Royal & Sun Alliance Insurance
Group PLC 11,237 27
Royal Bank of Scotland Group PLC 61,425 1,735
Sage Group PLC 28,574 85
Sainsbury PLC 28,386 121
Scot Power PLC 41,526 242
Scottish & Newcastle PLC 5,378 32
Scottish & Southern Energy PLC 18,949 188
Securicor PLC 4,526 5
Serco Group PLC 20,228 51
Severn Trent PLC 11,091 120
Shell Transportation & Trading Co. PLC 110,120 689
Smith & Nephew PLC 12,995 77
Smiths Industries PLC 3,596 42
SSL International PLC 463 2
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Tate & Lyle PLC 7,877 $ 44
Tesco PLC 104,066 360
Unilever PLC 106,987 878
Vodaphone Airtouch PLC 2,119,633 4,020
Wolseley PLC 3,412 37
WPP Group PLC 16,228 144
------------
34,698
------------
GREECE (0.0%)
Titan Cement Co. 500 19
------------
HONG KONG (3.4%)
Bank of East Asia, Ltd. 67,629 142
Beijing Datang Power Generation 130,000 68
BOC Hong Kong Holdings, Ltd. 129,500 141
Cathay Pacific Airways, Ltd. 52,000 73
Cheung Kong Infrastructure 21,000 43
Cheung Kong Infrastructure
Holdings, Ltd. 80,000 526
China Southern Airlines * 106,000 32
CLP Holdings, Ltd. 92,100 405
Esprit Asia Holdings, Ltd. 39,500 101
Hang Lung Properties, Ltd. 61,000 64
Hang Seng Bank, Ltd. 40,800 439
Henderson Land Development, Ltd. 33,000 108
Hkd South China Morning Post 10,000 4
Hong Kong & China Gas Co., Ltd. 189,648 242
Hong Kong Electric Holdings, Ltd. 72,000 282
Hong Kong Exchanges & Clearing, Ltd. 41,000 68
Huaneng Power International 136,000 184
Hutchison Whampoa, Ltd. 109,100 713
Johnson Electric Holdings, Ltd. 77,000 105
Li & Fung, Ltd. 82,000 116
MTR Corp. 70,535 84
New World Development Co., Ltd. 22,110 10
PCCW, Ltd. * 97,047 52
Petrochina 1,598,000 476
Qingling Motors 116,000 18
Shagri-La Asia, Ltd. 54,000 43
Sino Land Company, Ltd. 556 -#
Sinopec Shanghai Petrochem 212,000 48
Sinopec Yizheng Chemical 128,000 20
Sun Hung Kai Properties, Ltd. 74,000 439
Swire Pacific, Ltd. 49,000 226
Techtronic Industries Co., Ltd. 15,000 28
Television Broadcasts, Ltd. 10,000 36
Travelsky Tech 28,000 22
Tsingtao Brewery 32,000 25
Wharf Holdings, Ltd. 64,600 126
Yue Yuen Industrial Holdings, Ltd. 28,000 81
------------
5,590
------------
INDONESIA (0.0%)
Mulia Industrindo Tbk * 19,000 --#
------------
IRELAND (0.1%)
CRH PLC * 3,734 70
Irish Life & Permanent PLC 3,000 33
------------
103
------------
CONTINUED
94
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
ITALY (3.3%)
Alleanza Assicurazioni SpA 15,556 $ 151
Assicurazioni Generali 20,354 471
Autogrill SpA * 3,566 41
Banca Fideuram SpA 6,780 38
Banca Monte dei Paschi di Seina SpA 12,690 35
Banca Nazionale del Lavoro SpA * 17,666 29
Banca Popolare di Milano 1,191 5
Banca Popolare di Milano 3,454 16
Banco Popolare di Verona e Novara Scrl 5,835 81
Benetton Group SpA 2,922 31
Credito Italiano 76,343 358
Enel SpA 48,060 306
ENI SpA 89,249 1,318
Fiat SpA * 3,727 25
IntesaBci SpA 80,782 271
Intesabci SpA-RNC 11,841 29
Italcementi SpA 2,624 30
Mediaset SpA 14,821 133
Mediobanca SpA 10,623 107
Mediolanum SpA 5,096 29
Pirelli SpA * 44,497 46
RAS SpA 6,554 102
San Paolo IMI SpA 20,258 204
Snia SpA 6,546 12
Telecom Italia 62,770 533
Telecom Italia Mobile SpA 232,318 1,077
Telecom Italia SpA-RNC 4,917 26
------------
5,504
------------
JAPAN (23.4%)
Acom Co., Ltd. 3,120 118
Advantest 2,700 148
AEON Co., Ltd. 5,800 144
Aiful Corp. 450 22
Ajinomoto Co., Inc. 25,400 243
Alps Electric Co., Ltd. 5,000 78
Amada Co., Ltd. 9,000 31
Asahi Breweries, Ltd. 12,000 70
Asahi Glass Co., Ltd. 40,800 278
Asahi Kasei Corp. 39,000 118
Asatsu, Ltd. 1,200 24
Bellsystem 24, Inc. 90 17
Benesse Corp. 2,100 35
Bridgestone Corp. 29,000 396
Canon, Inc. 29,400 1,414
Casio Computer Co., Ltd. 14,800 105
Central Japan Railway Co. 52 360
Chubu Electric Power Co., Inc. 6,400 115
Chugai Pharmaceutical Co., Ltd. 11,500 129
Citizen Watch Co., Ltd. 10,000 64
Credit Saison Co., Ltd. 3,200 53
CSK Corp. 1,800 48
Dai Nippon Printing Co., Ltd. 15,600 183
Daicel Chemical Industries, Ltd. 5,000 20
Daiichi Pharmaceutical Co., Ltd. 9,500 128
Daikin Kogyo Corp. 4,000 73
Dainippon Ink & Chemicals, Inc. 21,000 42
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Daito Trust Construction Co., Ltd. 4,100 $ 96
Daiwa House Co., Ltd. 20,600 149
Daiwa Securities Group, Ltd. 81,000 469
Denki Kagaku Kogyo Kabushiki
Kaisha, Ltd. 14,000 35
Denso Corp. 22,650 376
Dowa Mining Co., Ltd. 8,000 30
East Japan Railway Co. 121 531
Ebara Corp. 11,800 47
Eisai Co., Ltd. 10,300 203
Fanuc Co., Ltd. 6,300 350
Fast Retailing Co., Ltd. 200 6
Fuji Photo Film Co., Ltd. 16,000 477
Fuji Television Network 5 19
Fujikura 6,000 21
Fujisawa Pharmaceutical Co. 6,000 116
Fujitsu, Ltd. 61,000 251
Furukawa Electric Co., Ltd. 21,800 76
Hankyu Department Stores, Inc. 2,000 11
Hirose Electric Co., Ltd. 1,100 107
Hitachi, Ltd. 104,000 461
Honda Motor Co., Ltd. 29,351 1,132
Hoya Corp. 3,800 273
Isetan Co., Ltd. 3,000 21
Ishihara Sangyo Kaisha, Ltd. * 4,000 7
Ishikawajima-Harima Heavy Industries
Co., Ltd. 27,000 32
Ito Yokado Co., Ltd. 8,000 205
Itochu Corp. 40,000 112
Japan Airlines System Corp. 29,000 65
Japan Synthetic Rubber 4,000 54
Japan Tobacco, Inc. 18 107
JFE Holdings, Inc. 13,900 231
JGC Corp. 4,000 28
Kajima Corp. 37,400 100
Kaken Pharmaceutical 1,000 5
Kaneka Corp. 9,000 58
Kansai Electric Power Co., Inc. 32,000 498
Kao Corp. 22,000 412
Kawasaki Heavy Industries, Ltd. 27,000 28
Kawasaki Kisen Kaisha, Ltd. 2,000 5
Keihin Electric Express Railway
Co., Ltd. 14,000 67
Keio Electric Railway Co., Ltd. 7,000 32
Keyence Corp. 870 162
Kikkoman Corp. 4,000 26
Kinki Nippon Railway Co., Ltd. * 55,230 159
Kirin Brewery Co., Ltd. 35,400 224
Kokuyo Co., Ltd. 2,000 18
Komatsu, Ltd. 36,400 178
Konami Co., Ltd. 3,100 58
Konica Corp. 7,000 87
Kubota Corp. 51,000 150
Kuraray Co., Ltd. 11,000 74
Kurita Water Industries, Ltd. 2,000 24
Kyocera Corp. 5,900 334
Kyowa Hakko Kogyo Co., Ltd. 12,200 66
CONTINUED
95
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Kyushu Electric Power Co., Inc. 4,200 $ 62
Lawson, Inc. 100 3
Mabuchi Motor Co., Ltd. 1,100 91
Marubeni Corp. 40,800 51
Marui Co., Ltd. 11,000 106
Matsushita Electric Industrial Co., Ltd. 68,000 804
Matsushita Electric Works 4,000 25
Meiji Seika Co., Ltd. 5,000 16
Meitec Corp. 1,000 33
Minebea Co., Ltd. 9,000 36
Mitsubishi Chemical Corp. 57,000 111
Mitsubishi Corp. 40,000 290
Mitsubishi Electric Corp. 67,800 240
Mitsubishi Estate Co., Ltd. 32,000 234
Mitsubishi Heavy Industries, Ltd. 117,000 311
Mitsubishi Logistics Corp. 2,000 12
Mitsubishi Rayon Co., Ltd. 16,000 42
Mitsubishi Tokyo Financial Group, Inc. 146 649
Mitsui & Co., Ltd. 41,800 233
Mitsui Chemicals, Inc. 16,000 72
Mitsui Fudosan Co., Ltd. 22,400 148
Mitsui Mining & Smelting Co., Ltd. 20,000 60
Mitsui O.S.K. Lines, Ltd. 2,000 6
Mitsui Sumitomo Insurance Co. 83,000 426
Mitsui Trust Holding, Inc. 55,513 132
Murata Manufacturing Co., Ltd. 8,100 373
NEC Corp. 54,200 334
New Oji Paper Co. 35,400 163
NGK Insulators, Ltd. 13,600 75
NGK Spark Plug Co., Ltd. 10,000 79
Nidec Corp. 1,200 90
Nikko Cordial Corp, 29,000 125
Nikon Corp. * 9,000 78
Nintendo Co., Ltd. 4,000 322
Nippon Express Co., Ltd. 29,600 112
Nippon Meat Packers, Inc. 7,600 72
Nippon Mining Holdings, Inc. 10,000 19
Nippon Oil Co., Ltd. 57,800 236
Nippon Sheet Glass Co., Ltd. 11,000 31
Nippon Steel Corp. 205,800 314
Nippon Telegraph and Telephone Corp. 241 998
Nippon Unipac Holding 26 102
Nippon Yusen Kabushiki Kaisha 41,000 138
Nissan Chemical Industries, Ltd. 4,000 25
Nissan Motors Co., Ltd. 85,000 829
Nisshin Flour Milling Co., Ltd. 4,000 27
Nisshinbo Industries, Inc. 2,000 9
Nissin Food Products Co., Ltd. 2,100 42
Nitto Denko Corp. 5,000 182
Nomura Securities Co., Ltd. 65,000 863
NSK, Ltd. 24,000 76
NTN Corp. 13,000 54
NTT Data Corp. 37 126
NTT DoCoMo, Inc. 248 568
Obayashi Corp. 19,000 63
Oki Electric Industry Co., Ltd. * 25,000 77
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Olympus Optical Co., Ltd. 5,000 $ 111
Omron Corp. 9,000 174
Onward Kashiyama Co., Ltd. 5,000 45
Oracle Corp. Japan 1,300 55
Oriental Land Co., Ltd. 2,500 110
Orix Corp. 2,240 139
Osaka Gas Co., Ltd. 78,200 197
Pioneer Electronic Corp. 5,601 132
Promise Co., Ltd. 3,300 120
Ricoh Co., Ltd. 22,000 395
Rohm Co., Ltd. 2,800 329
Sampo Japan Insurance, Inc. 30,000 172
Sanden Corp. 1,000 5
Sankyo Co., Ltd. 18,500 224
Sanyo Electric Co., Ltd. 59,000 221
Secom Co., Ltd. 5,100 146
Sekisui Chemical Co., Ltd. 11,000 38
Sekisui House, Ltd. 24,600 193
Seven-Eleven Japan Co., Ltd. 4,000 102
Sharp Corp. 30,200 427
Shimamura Co., Ltd. 400 23
Shimano, Inc. 3,400 58
Shimizu Construction 28,600 85
Shin-Etsu Chemical Co. 10,448 364
Shionogi & Co., Ltd. 12,000 157
Shisiedo Co., Ltd. 12,800 128
Showa Denko KK * 3,000 5
Showa Shell Sekiyu KK 7,000 47
Skylark Co., Ltd. 5,000 58
SMC Corp. 2,100 197
Softbank Corp. 8,000 231
Sony Corp. 25,398 786
Stanley Electric Co., Ltd. 1,000 16
Sumitomo Bakelite Co. 4,000 18
Sumitomo Chemical Co., Ltd. 43,600 128
Sumitomo Corp. 26,200 137
Sumitomo Electric Industries 18,400 135
Sumitomo Metal Industry, Ltd. 11,000 7
Sumitomo Metal Mining Co., Ltd. 16,600 62
Sumitomo Realty & Development Co.,
Ltd. 1,000 5
Sumitomo Trust & Banking 57,000 207
Taiheiyo Cement Corp. 2,000 3
Taisei Construction 3,000 7
Taisho Pharmaceutical Co. 11,800 163
Taiyo Yuden Co., Ltd. 4,000 43
Taka Shi Maya Co., Ltd. 4,000 20
Takara Shuzo Co., Ltd. 3,000 16
Takeda Chemical Industries, Ltd. 32,000 1,141
Takefuji Corp. 3,600 195
Takuma Co., Ltd. 3,000 14
TDK Corp. 4,100 225
Teijin, Ltd. 26,400 62
Teikoku Oil Co., Ltd. 4,000 14
Terumo Corp. 7,300 121
THK Co, Ltd. 800 12
TIS, Inc. 751 19
CONTINUED
96
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Tobu Railway Co., Ltd. 30,600 $ 85
Toho Co. 2,300 23
Tohoku Electric Power Co., Ltd. 15,600 227
Tokyo Broadcasting System, Inc. 3,000 34
Tokyo Electric Power Co., Inc. 45,600 857
Tokyo Electronics, Ltd. 5,200 305
Tokyo Gas Co., Ltd. 84,600 248
Tokyu Corp. 34,400 102
Tonengeneral Sekiyu K.K. 4,000 27
Toppan Printing Co., Ltd. 14,600 111
Toray Co. 40,100 94
Toshiba Corp. 98,000 343
Tosoh Corp. 16,000 38
Tostem Corp. 6,000 81
Toto, Ltd. 17,600 119
Toyo Seikan Kaisha, Ltd. 5,000 48
Toyobo Co., Ltd. 2,000 3
Toyoda Gosei Co., Ltd. 300 7
Toyota Automatic Loom Works 2,600 42
Toyota Motor Corp. 93,800 2,372
Trend Micro, Inc. * 1,200 19
UJF Holdings, Inc. 105 208
Uni-Charm Corp. 1,200 54
UNY Co., Ltd. 2,000 17
Wacoal Corp. 2,000 15
West Japan Railway Co. 11 40
World Co., Ltd. 1,150 23
Yakult Honsha Co., Ltd. 2,000 28
Yamada Denki Co., Ltd. 200 4
Yamaha Corp. 3,000 40
Yamaha Motor Co., Ltd. 1,000 9
Yamanouchi Pharmaceutical Co., Ltd. 15,100 392
Yamato Transport Co., Ltd. 9,000 107
Yamazaki Baking Co., Ltd. 3,000 18
Yokogawa Electric Corp. 4,000 31
------------
38,529
------------
MALAYSIA (0.8%)
AMMB Holdings Berhad 7,300 9
Berjaya Sports Toto Berhad 22,000 23
Commerce Asset-Holdings Berhad 13,300 13
DRB-Hicom Berhad 25,200 18
Edaran Otomobil Nasional Berhad 2,700 6
Gamuda Berhad 27,000 46
Genting Berhad 18,400 75
Golden Hope Plantations Berhad 14,000 12
Hong Leong Bank Berhad 19,000 25
Hong Leong Credit Berhad 2,500 3
IJM Corp. Berhad 15,000 20
IOI Corp. Berhad 31,000 48
Kuala Lumpur Kepong Berhad 13,000 21
Lafarge Malayan Cement Berhad 6,800 1
Magnum Corp. Berhad 20,900 15
Mal Perlis Plantations 5,300 7
Mal Rothmans Pall Mall 6,000 64
Malakoff Berhad 27,000 35
Malayan Banking Berhad 73,000 171
Malaysia Mining Corp., Berhad 20,000 15
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
MALAYSIA, CONTINUED
Malaysian Airline System Berhad * 7,100 $ 8
Malaysian International Shipping
Corp. Berhad 24,000 50
Malaysian Oxygen Berhad 3,000 9
Malaysian Pacific Industries Berhad 4,000 16
Malaysian Resources Corp. Berhad * 64,000 19
Maxis Communications Berhad 38,000 60
Multi Purpose Holdings Berhad * 37,000 12
Nestle Berhad 3,700 20
O.Y.L. Industries Berhad 900 6
Oriental Holdings Berhad 2,700 3
Perusahaan Otomobil Nasional Berhad 7,500 17
Petronas Dagangan Berhad 7,000 12
Petronas Gas Berhad 11,300 21
PLUS Expressways Berhad * 78,000 52
Public Bank Berhad 77,000 52
Resorts World Berhad 25,000 66
RHB Capital Berhad 27,000 13
Road Builder Holdings Berhad 19,000 19
Sime Darby Berhad 65,000 86
SP Setia Berhad 23,000 20
Star Publications Berhad 9,000 15
Tanjong PLC 10,000 26
Telekom Malaysia Berhad 50,000 105
Tenaga Nasional Berhad 16,600 39
UMW Holdings Berhard 6,000 14
YTL Corporation Berhad 5,000 6
------------
1,393
------------
NETHERLANDS (5.3%)
ABN AMRO Holding NV 39,082 751
Aegon NV 42,814 556
Akzo NV 6,253 186
ASML Holding NV * 1,477 19
DSM NV 925 42
Elsevier NV 10,353 115
Hagemeyer NV 2,262 8
Heineken NV 18,641 676
ING Groep NV 31,444 637
Koninklijke KNP NV * 50,027 343
Philips Electronics NV 29,930 631
Royal Dutch Petroleum 60,865 2,671
TNT Post Groep NV 11,615 217
Unilever NV 30,991 1,758
Vedior NV 5,018 57
Wolters Kluwer NV CVA 4,962 72
------------
8,739
------------
NEW ZEALAND (0.0%)
Carter Holt Harvey, Ltd. 16,513 16
Telecom Corp. of New Zealand, Ltd. 5,990 17
------------
33
------------
NORWAY (0.2%)
DnB Holding ASA 4,503 23
Gjensidige NOR ASA 386 14
Norsk Hydro ASA 4,172 217
Norske Skogindustrier AG 2,600 45
Orkla SA 3,200 57
Statoil ASA 1,600 14
CONTINUED
97
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
NORWAY, CONTINUED
Tandberg ASA * 2,000 $ 12
Tomra Systems ASA 1,335 7
------------
389
------------
RUSSIA (0.5%)
AO Mosenergo ADR 6,900 43
AO VimpelCom ADR * 400 18
Lukoil ADR 2,200 157
MMC Norilsk Nickel 3,000 113
Oao Gazprom ADR 1,300 15
RAO Unified Energy Systems 11,300 307
Rostelecom ADR 2,100 20
Surgutneftegaz ADR 5,900 111
Yukos 2,550 117
------------
901
------------
SINGAPORE (1.6%)
Capitaland, Ltd. 75,250 59
Chartered Semiconductor, Ltd. * 16,000 9
City Developments, Ltd. 37,000 100
Cycle & Carriage, Ltd. 7,648 24
DBS Group Holdings, Ltd. 60,683 393
Fraser & Neave 12,600 70
Haw Par Brothers Corp., Ltd. 2,426 6
Keppel Corp., Ltd. 36,000 103
Oversea-Chinese Banking Corp., Ltd. 59,058 359
Overseas Union Enterprises 6,000 24
Sembcorp Industries, Ltd. 68,802 54
Singapore Airlines, Ltd. 46,000 283
Singapore Press Holdings, Ltd. 19,059 205
Singapore Technology Engineering, Ltd. 115,000 123
Singapore Telecommunications, Ltd. 324,000 300
United Overseas Bank, Ltd. 59,352 447
United Overseas Land, Ltd. 33,000 39
Venture Manufacturing, Ltd. 6,000 61
------------
2,659
------------
SPAIN (4.2%)
Abertis Infraestructuras 9,518 128
Acciona SA 1,040 55
Acerinox SA 2,109 88
Actividad Construction 2,369 102
Altadis SA 8,117 202
Amadeus Global Travel Distribution SA 15,701 105
Banco Bilbao Vizcaya-Argentari 93,384 1,024
Banco Popular Espanol SA 2,446 117
Banco Santander Central Hispano SA 131,911 1,188
Endesa SA 19,949 317
Fomento de Construcciones y Contratas SA 1,907 56
Gas Natural SDG SA 27,874 527
General De Aguas De Barcelona SA 4,192 55
Grupo Dragados SA 5,325 109
Grupo Ferrovial SA 2,214 63
Iberdrola SA 17,263 296
Industria de Diseno Textil SA 7,070 181
Repsol SA 25,711 412
Telefonica SA 147,217 1,722
Terra Networks SA * 13,629 80
Union Electric Penosa SA 4,459 74
Vallehermoso SA 5,170 58
------------
6,959
------------
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
SWEDEN (2.0%)
Assa Abloy AB, Class B 1,909 $ 20
Atlas Copco AB, Series A 4,014 117
Atlas Copco AB, Series B 2,156 59
Electrolux AB, Series B 8,800 182
Ericsson LM, Series B * 234,884 337
Gambro AB, Series A 700 5
Hennes & Mauritz AB, Series B 22,000 469
Holmen AB 2,300 66
Nordic Baltic 62,322 303
Sandvik AB 8,138 226
Securitas AB, B Shares 13,200 154
Shanska AB, Series B 14,817 94
Skandia Forsakrings AB 27,631 86
Skandiaviska Enskil 9,020 98
SKF AB, Series B 2,559 77
Svenska Cellulosa AB, Series B 4,364 145
Svenska Handelsbanken, Series A 19,002 304
Svenskt Stal AB, Series A 2,100 27
Swedish Match AB 6,800 47
Tele2 AB * 975 35
Telia 50,326 208
Volvo AB, Series A 1,614 38
Volvo AB, Series B 6,110 150
WM-Data AB * 8,900 12
------------
3,259
------------
SWITZERLAND (6.7%)
Abb, Ltd. * 7,287 32
Adecco SA, Registered 5,430 261
Centerpulse AG, Registered * 72 20
Ciba Specialty Chemicals AG 1,700 115
Clariant AG * 3,100 36
Credit Suisse Group 26,864 844
Givaudan 239 98
Holcim 3,325 138
Kudelski SA * 100 2
Logitech International SA * 430 12
Lonza Group AG 876 43
Nestle 10,540 2,102
Novartis AG, Registered 53,880 2,078
Roche Holding AG 4,370 559
Roche Holdings AG, Genusscheine 14,200 1,184
Schindler Holdings AG * 30 5
Societe Generale de Surveillance
Holdings SA 242 112
Sulzer AG, Registered 71 11
Swiss Reinsurance 10,305 652
Swisscom AG 965 268
Syngenta 2,471 136
The Swatch Group AG 700 13
The Swatch Group AG, Series B 740 68
UBS AG 31,663 1,854
Valora Holdings AG, Registered 59 12
Zurich Financial Services 3,008 374
------------
11,029
------------
TOTAL FOREIGN STOCKS 147,781
------------
CONTINUED
98
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
PREFERRED STOCKS (0.2%)
AUSTRALIA (0.1%)
News Corp., Ltd. 31,201 $ 234
------------
GERMANY (0.1%)
Henkel KGaA 261 16
Porsche AG 138 56
Volkswagen AG 1,122 34
------------
106
------------
TOTAL PREFERRED STOCKS 340
------------
MONEY MARKETS (4.2%)
UNITED STATES (4.2%)
Dreyfus Cash Management Money
Market Fund 3,490,535 3,491
Federated Prime Value Obligations
Money Market Fund 3,409,240 3,409
------------
TOTAL MONEY MARKETS 6,900
------------
SHORT TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (4.3%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 7,170 7,170
------------
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 7,170
------------
TOTAL INVESTMENTS (COST $178,282)++ - 98.1% 162,191
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.9% 3,102
------------
NET ASSETS - 100.0% $ 165,293
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
INTERNATIONAL GDP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS (96.7%)
AUSTRALIA (4.6%)
Amcor, Ltd. 37,493 $ 204
AMP, Ltd. 42,500 134
Australia & New Zealand Banking
Group, Ltd. 53,900 638
BHP, Ltd. 147,902 939
Brambles Industries, Ltd. 36,504 117
Coca-Cola Amatil, Ltd. 30,562 116
Commonwealth Bank of Australia 45,925 888
CSL, Ltd. 13,100 116
CSR, Ltd. 41,218 53
Foster's Group, Ltd. 105,436 304
General Property Trust 117,125 225
Insurance Australia Group 62,100 151
Lend Lease Corp., Ltd. 17,172 96
Macquarie Bank, Ltd. 7,700 153
Macquarie Infrastructure Group 112,200 243
National Australia Bank, Ltd. 58,214 1,233
News Corp., Ltd. 109,629 696
QBE Insurance Group, Ltd. 21,420 133
Rinker Group, Ltd. 41,218 141
Rio Tinto, Ltd. 13,873 286
Stockland Trust Group 31,280 102
Suncorp Metway, Ltd. 18,100 143
TABCORP Holdings, Ltd. 14,037 96
Telstra Corp., Ltd. 96,000 291
Westfarmers, Ltd. 16,900 292
Westfield Holdings, Ltd. 22,300 217
Westpac 75,939 817
WMC Resources, Ltd. * 41,771 101
WMC, Ltd. 68,271 214
Woodside Petroleum, Ltd. 17,600 152
Woolworths, Ltd. 39,831 305
------------
9,596
------------
AUSTRIA (0.1%)
Erste Bank Der Oesterreichischen
Sparkassen AG 1,200 105
OMV AG 940 107
Telekom Austria AG * 8,400 92
------------
304
------------
BELGIUM (1.0%)
Agfa Gevaert NV 4,300 91
Delhaize-Le Lion SA 2,500 80
Dexia 24,200 324
Electrabel SA 1,131 290
Fortis 36,600 672
Groupe Bruxelles Lambert SA 2,600 117
Interbrew Co. 6,100 136
KBC Bancassurance Holding SA 3,720 149
Solvay SA 1,810 120
UCB Cap NPV Ord 3,000 74
------------
2,053
------------
DENMARK (0.7%)
D/S Svendborg AS, Class B 41 220
Danisco AS 3,500 125
Danske Bank 22,170 405
Falck AS 2,500 46
CONTINUED
99
INTERNATIONAL GDP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
DENMARK, CONTINUED
ISS AS 3,400 $ 117
Novo Nordisk AS-B 11,130 373
Novozymes AS 2,246 61
TDC AS 4,800 138
William Demant Holdings * 1,600 39
------------
1,524
------------
FINLAND (1.6%)
Nokia Oyj 193,250 2,962
Stora Enso Oyj 10,000 126
UPM-Kym'mene Oyj 8,800 144
------------
3,232
------------
FRANCE (12.2%)
Accor SA 12,050 453
Aventis SA 41,014 2,064
AXA SA 63,300 1,090
Banque Nationale de Paris 43,410 2,361
Bouygues 10,960 290
Carrefour SA 31,736 1,473
Casino Guichard-Perrachon 1,800 134
Compagnie de Saint Gobain 14,532 579
Essilor International 7,000 283
European Aeronautic Defence And
Space Company 13,900 222
France Telecom SA * 14,500 383
Groupe Danone 6,242 850
L'Air Liquide SA 3,424 535
L'Oreal SA 18,200 1,199
Lafarge SA 7,121 477
Lagardere Group SCA 8,406 375
LVMH Moet-Hennessy Louis Vuitton 12,800 703
Michelin, Class B, Registered Shares 4,601 167
Pechiney SA, A Shares 4,400 225
Pernod Ricard 1,875 163
Peugeot SA 9,872 436
Pinault Printemps 3,185 258
Publicis Groupe 6,400 169
Renault SA 7,000 390
Sanofi-Synthelabo 21,692 1,223
Schneider Electric SA 11,200 602
Societe Generale-A 14,288 1,003
STMicroelectronics NV 25,900 561
Suez SA 28,000 447
Technip-Coflexip SA 1,676 143
Thales SA 4,225 134
Thomson 8,000 126
Total Fina 32,100 4,763
Veolia Environnement 10,700 204
Vinci 3,780 248
Vivendi Universal * 30,700 540
Wanadoo * 18,000 124
------------
25,397
------------
GERMANY (10.5%)
Adidas-Salomon AG 3,400 283
Allianz AG 10,000 1,064
Altana AG 5,500 340
BASF AG 33,980 1,616
Bayer AG 40,640 966
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
Beiersdorf AG 1,560 $ 188
Bilfinger Berger AG 17,000 497
BMW AG 39,800 1,545
Continental AG 9,570 229
DaimlerChrysler AG 28,300 1,016
Deutsche Bank AG 30,860 2,003
Deutsche Boerse AG 4,100 216
Deutsche Lufthansa AG 9,580 122
Deutsche Post AG 12,600 188
Deutsche Telekom AG * 119,900 1,816
Fresenius Medical Care AG 3,100 160
Gehe AG 3,200 129
Infineon Technologies AG * 25,000 320
Linde AG 7,260 310
MAN AG 4,100 82
Metro AG 8,473 313
Muenchener Rueckver AG 7,361 833
RWE AG 24,250 681
SAP AG 8,509 998
Schering AG 11,700 491
Siemens AG 47,000 2,644
Thyssen Krupp AG 12,340 161
VEBA AG 36,682 1,899
Volkswagen AG 15,570 668
------------
21,778
------------
GREAT BRITAIN (18.8%)
AstraZeneca PLC 62,367 2,489
Aviva PLC 65,341 542
Barclays PLC 226,580 1,705
BP Amoco PLC 856,146 5,864
British American Tobacco PLC 59,000 601
BT Group PLC 297,488 936
Compass Group PLC 84,573 454
Diageo PLC 126,912 1,296
GlaxoSmithKline PLC 222,771 4,269
HBOS PLC 98,610 1,228
HSBC Holdings PLC 362,464 4,487
Imperial Tobacco Group PLC 8,600 135
Lloyds TSB Group PLC 155,906 1,210
National Grid Transco PLC 70,000 434
Rio Tinto PLC 40,200 834
Royal Bank of Scotland Group PLC 129,377 3,654
Shell Transportation & Trading Co., PLC 372,000 2,329
Tesco PLC 268,943 931
Unilever PLC 117,410 963
Vodaphone Airtouch PLC 2,489,200 4,722
------------
39,083
------------
GREECE (0.3%)
Alpha Bank A.E. 4,000 82
Hellenic Bottling Co., SA 7,100 127
Hellenic Petroleum SA 6,900 51
Hellenic Telecommunication
Organization 18,900 238
National Bank of Greece SA 8,800 181
Papastratos Cigarette Co. 1,300 26
------------
705
------------
CONTINUED
100
INTERNATIONAL GDP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
HONG KONG (1.5%)
ASM Pacific Technology, Ltd. 70,000 $ 224
Cheung Kong Infrastructure
Holdings, Ltd. 67,000 440
CLP Holdings, Ltd. 62,080 273
Esprit Asia Holdings, Ltd. 92,500 237
Hang Seng Bank, Ltd. 26,200 282
Hong Kong & China Gas Co., Ltd. 164,700 210
Hong Kong Electric Holdings, Ltd. 32,000 125
Hutchison Whampoa, Ltd. 94,900 622
Johnson Electric Holdings, Ltd. 170,000 231
Sun Hung Kai Properties, Ltd. 59,136 351
Swire Pacific, Ltd. 28,000 129
Wharf Holdings, Ltd. 46,000 90
------------
3,214
------------
IRELAND (0.8%)
Allied Irish Banks PLC 34,079 472
Bank of Ireland 38,000 443
CRH PLC 19,419 365
DCC PLC 3,300 37
Irish Life & Permanent PLC 10,827 119
Kerry Group PLC - A 5,200 82
Ryanair Holdings PLC * 15,200 106
------------
1,624
------------
ITALY (6.6%)
Alleanza Assicurazioni SpA 31,100 302
Assicurazioni Generali 68,163 1,579
Banca Monte dei Paschi di Seina SpA 51,480 143
Banca Nazionale del Lavoro SpA * 106,800 178
Banco Popolare di Verona e Novara Scrl 23,000 317
Benetton Group SpA 3,400 36
Credito Italiano 305,600 1,434
Enel SpA 140,150 893
ENI SpA 197,200 2,911
IntesaBci SpA 243,128 815
Luxottica Group SpA 5,000 74
Mediaset SpA 41,800 375
Mediobanca SpA 23,770 239
Mondadori (Arnoldo) Editore SpA 8,100 61
RAS SpA 22,642 353
San Paolo IMI SpA 35,812 360
Snam Rete Gas SpA 54,700 211
Telecom Italia 178,500 1,515
Telecom Italia Mobile SpA 276,400 1,282
Telecom Italia SpA-RNC 137,200 726
------------
13,804
------------
JAPAN (23.2%)
Advantest 5,600 307
AEON Co., Ltd. 15,000 373
Ajinomoto Co., Inc. 46,000 440
Alps Electric Co., Ltd. 6,000 94
Asahi Breweries, Ltd. 19,000 111
Asahi Glass Co., Ltd. 48,000 327
Asahi Kasei Corp. 55,000 167
Bank of Yokohama, Ltd. 26,000 80
Bridgestone Corp. 44,000 600
Canon, Inc. 45,000 2,166
Central Japan Railway Co. 38 263
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Chubu Electric Power Co., Inc. 28,000 $ 503
Credit Saison Co., Ltd. 5,300 88
Dai Nippon Printing Co., Ltd. 37,000 435
Daikin Kogyo Corp. 7,000 127
Dainippon Ink & Chemicals, Inc. 26,000 52
Daiwa Securities Group, Ltd. 37,000 214
Denso Corp. 31,000 514
Dentsu, Inc. 12 38
Dowa Mining Co., Ltd. 12,000 45
East Japan Railway Co. 200 878
Eisai Co., Ltd. 14,000 275
Fanuc Co., Ltd. 6,800 378
Fuji Photo Film Co., Ltd. 27,000 804
Fuji Television Network 30 115
Fujisawa Pharmaceutical Co. 10,000 194
Fujitsu, Ltd. 67,000 276
Hirose Electric Co., Ltd. 1,000 97
Hitachi, Ltd. 127,000 563
Honda Motor Co., Ltd. 30,200 1,166
Hoya Corp. 6,000 431
Ito Yokado Co., Ltd. 19,000 487
Itochu Corp. 56,000 157
Japan Synthetic Rubber 7,000 95
Japan Tobacco, Inc. 51 303
JFE Holdings, Inc. 22,400 372
Kajima Corp. 67,000 178
Kaneka Corp. 15,000 97
Kansai Electric Power Co., Inc. 17,800 277
Kao Corp. 33,000 619
Keyence Corp. 1,000 186
Kirin Brewery Co., Ltd. 28,000 177
Komatsu, Ltd. 39,000 191
Konica Corp. 11,000 136
Kubota Corp. 65,000 191
Kuraray Co., Ltd. 16,000 107
Kyocera Corp. 6,400 363
Kyushu Electric Power Co., Inc. 10,000 148
Mabuchi Motor Co., Ltd. 1,000 83
Marui Co., Ltd. 26,000 250
Matsushita Electric Industrial Co., Ltd. 91,000 1,076
Millea Holdings, Inc. 58 539
Mitsubishi Chemical Corp. 73,000 142
Mitsubishi Corp. 75,000 543
Mitsubishi Electric Corp. 67,000 237
Mitsubishi Estate Co., Ltd. 41,000 299
Mitsubishi Heavy Industries, Ltd. 182,000 483
Mitsubishi Tokyo Financial Group, Inc. 178 791
Mitsui & Co., Ltd. 73,000 406
Mitsui Fudosan Co., Ltd. 29,000 191
Mitsui Sumitomo Insurance Co. 74,230 381
Mizuho Financial Group, Inc. * 140 125
Murata Manufacturing Co., Ltd. 10,000 460
NEC Corp. 63,000 388
New Oji Paper Co. 52,000 240
NGK Spark Plug Co., Ltd. 7,000 56
Nidec Corp. 1,000 75
Nikon Corp. * 11,000 95
CONTINUED
101
INTERNATIONAL GDP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Nintendo Co., Ltd. 4,000 $ 322
Nippon Express Co., Ltd. 31,000 118
Nippon Meat Packers, Inc. 10,000 94
Nippon Oil Co., Ltd. 101,800 415
Nippon Steel Corp. 314,000 479
Nippon Telegraph and Telephone Corp. 198 820
Nippon Unipac Holding 43 168
Nippon Yusen Kabushiki Kaisha 56,000 189
Nissan Motors Co., Ltd. 124,000 1,210
Nissin Food Products Co., Ltd. 3,000 60
Nitto Denko Corp. 12,000 437
Nomura Securities Co., Ltd. 73,000 969
NTN Corp. 17,000 70
NTT DoCoMo, Inc. 960 2,199
Omron Corp. 9,000 174
Orix Corp. 6,000 372
Osaka Gas Co., Ltd. 73,000 183
Pioneer Electronic Corp. 6,000 141
Ricoh Co., Ltd. 27,000 485
Rohm Co., Ltd. 3,600 423
Sankyo Co., Ltd. 8,700 105
Sanyo Electric Co., Ltd. 57,000 213
Secom Co., Ltd. 15,000 431
Sekisui House, Ltd. 22,000 172
Seven-Eleven Japan Co., Ltd. 21,000 537
Sharp Corp. 40,000 566
Shimano, Inc. 3,000 51
Shimizu Construction 55,000 164
Shin-Etsu Chemical Co. 24,000 836
Shionogi & Co., Ltd. 16,000 210
Shisiedo Co., Ltd. 16,000 160
Shizuoka Bank, Ltd. 20,000 126
Showa Denko KK * 41,000 72
SMC Corp. 3,000 281
Sony Corp. 41,700 1,291
Stanley Electric Co., Ltd. 6,000 96
Sumitomo Chemical Co., Ltd. 69,000 202
Sumitomo Corp. 43,000 225
Sumitomo Electric Industries 45,000 330
Sumitomo Metal Mining Co., Ltd. 28,000 105
Sumitomo Mitsui Financial Group 77 189
Sumitomo Trust & Banking 39,000 141
Takeda Chemical Industries, Ltd. 40,000 1,428
Takefuji Corp. 3,000 162
TDK Corp. 4,000 220
Teijin, Ltd. 35,000 82
Terumo Corp. 7,000 116
Tohoku Electric Power Co., Ltd. 19,500 284
Tokyo Electric Power Co., Inc. 40,200 755
Tokyo Electronics, Ltd. 9,000 528
Tokyo Gas Co., Ltd. 153,000 449
Tokyu Corp. 76,000 225
Toppan Printing Co., Ltd. 22,000 168
Toray Co. 53,000 124
Toshiba Corp. 109,000 382
Tosoh Corp. 21,000 49
Tostem Corp. 14,000 190
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Toyota Motor Corp. 105,500 $ 2,670
Trend Micro, Inc. * 4,000 62
Uni-Charm Corp. 5,000 224
Yamada Denki Co., Ltd. 10,000 221
Yamanouchi Pharmaceutical Co., Ltd. 21,000 545
Yamato Transport Co., Ltd. 19,000 226
Yokogawa Electric Corp. 9,000 71
------------
48,077
------------
NETHERLANDS (3.1%)
ABN AMRO Holding NV 33,000 634
Aegon NV 35,224 457
ING Groep NV 44,150 894
Koninklijke KNP NV * 45,900 315
Philips Electronics NV 34,454 726
Royal Dutch Petroleum 53,300 2,340
Unilever NV 19,670 1,116
------------
6,482
------------
NEW ZEALAND (0.3%)
Auckland International Airport, Ltd. 10,596 37
Carter Holt Harvey, Ltd. 46,481 44
Contact Energy, Ltd. 15,500 44
Fisher & Paykel Appliance 2,655 20
Fisher & Paykel Industries, Ltd. 5,744 38
Fletcher Building, Ltd. 20,900 48
Sky City, Ltd. 11,200 60
Telecom Corp. of New Zealand, Ltd. 84,765 250
The Warehouse Group, Ltd. 7,400 19
------------
560
------------
NORWAY (0.4%)
DnB Holding ASA 16,300 84
Norsk Hydro ASA 6,150 319
Norske Skogindustrier AG 3,800 65
Orkla SA 8,200 147
Schibsted ASA 1,700 24
Statoil ASA 18,300 165
Storebrand ASA * 6,700 30
Telenor ASA 18,400 81
------------
915
------------
PORTUGAL (0.4%)
Banco Commercial 99,800 165
BPI-SGPS SA 24,400 67
Brisa Auto-Estradas 11,800 66
Electricidade de Portugal SA 100,300 222
Portugal Telecom SA 36,900 248
Sonae * 125,400 66
------------
834
------------
SINGAPORE (0.7%)
City Developments, Ltd. 19,600 53
DBS Group Holdings, Ltd. 57,987 376
Oversea-Chinese Banking Corp., Ltd. 35,959 219
Singapore Airlines, Ltd. 24,000 147
Singapore Press Holdings, Ltd. 15,072 162
Singapore Technology Engineering, Ltd. 42,000 45
United Overseas Bank, Ltd. 39,921 300
Venture Manufacturing, Ltd. 15,000 153
------------
1,455
------------
CONTINUED
102
INTERNATIONAL GDP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
SPAIN (3.6%)
Actividad Construction 3,300 $ 141
Altadis SA 10,900 271
Banco Bilbao Vizcaya-Argentari 104,023 1,140
Banco Santander Central Hispano SA 147,020 1,324
Endesa SA 42,680 677
Gas Natural SDG SA 8,600 163
Grupo Dragados SA 5,200 106
Iberdrola SA 43,524 745
Repsol SA 32,194 516
Telefonica SA 210,500 2,463
------------
7,546
------------
SWEDEN (2.1%)
Assa Abloy AB, Class B 11,800 124
Atlas Copco AB, Series A 11,100 323
Electrolux AB, Series B 10,200 211
Ericsson LM, Series B * 406,000 584
Hennes & Mauritz AB, Series B 22,200 474
Nordic Baltic 82,300 400
Sandvik AB 8,900 248
Securitas AB, B Shares 12,100 141
Shanska AB, Series B 17,900 113
Skandia Forsakrings AB 37,100 116
Skandiaviska Enskil 17,000 184
Svenska Cellulosa AB, Series B 6,800 226
Svenska Handelsbanken, Series A 24,600 394
Swedish Match AB 11,700 80
Tele2 AB * 3,400 122
Telia 63,500 262
Volvo AB, Series A 4,600 108
Volvo AB, Series B 9,400 230
------------
4,340
------------
SWITZERLAND (4.2%)
Credit Suisse Group 24,580 772
Nestle 9,645 1,925
Novartis AG, Registered 62,560 2,413
Roche Holdings AG, Genusscheine 16,000 1,334
Swiss Reinsurance 8,100 513
UBS AG 27,352 1,602
Zurich Financial Services 2,339 290
------------
8,849
------------
TOTAL FOREIGN STOCKS 201,372
------------
PREFERRED STOCKS (0.4%)
AUSTRALIA (0.2%)
News Corp., Ltd. 54,953 412
------------
GERMANY (0.2%)
Henkel KGaA 3,900 244
Porsche AG 680 278
------------
522
------------
TOTAL PREFERRED STOCKS 934
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (1.1%)
UNITED STATES (1.1%)
Dreyfus Cash Management Money
Market Fund 100 $ --#
Federated Prime Value Obligations
Money Market Fund 2,222,054 2,222
------------
TOTAL MONEY MARKETS 2,222
------------
SHORT TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (6.2%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 12,894 12,894
------------
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 12,894
------------
TOTAL INVESTMENTS (COST $267,561)+ - 104.4% 217,422
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.4)% (9,094)
------------
NET ASSETS - 100.0% $ 208,328
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
103
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMERCIAL PAPER(18.4%)
Bellsouth Corp., 0.98%, 8/13/03 ** (f) $ 11,050 $ 11,046
Coca-Cola Co., 0.98%, 8/13/03 ** (f) 12,500 12,496
General Electric Co., 1.02%, 8/20/03 ** (f) 4,085 4,085
Societe Generale, 1.00%, 8/18/03 ** (f) 5,400 5,397
Toyota Motor Credit Corp., 0.98%,
8/13/03 ** (f) 10,650 10,646
Toyota Motor Credit Corp., 1.01%,
8/18/03 ** (f) 3,312 3,310
UBS AG, 1.02%, 8/13/03 ** (f) 14,300 14,296
------------
TOTAL COMMERCIAL PAPER 61,276
------------
CORPORATE BONDS(41.4%)
AIG Sunamerica Global Finance, 6.90%,
3/15/32 2,000 2,144
American Express Co., 3.00%, 5/16/08 3,000 2,907
Bank of America Corp., 7.40%, 1/15/11 2,000 2,306
Bank of Montreal-Chicago, 7.80%, 4/1/07 2,700 3,096
BankAmerica Corp., 7.20%, 4/15/06 2,000 2,229
Bear Stearns Co., 5.70%, 1/15/07 3,000 3,240
Boeing Capital Corp., 5.75%, 2/15/07 2,500 2,667
Capital One Master Trust, Series 01-7A,
Class A, 3.85%, 8/15/07 7,500 7,691
Citibank Credit Card Issuance Trust,
6.88%, 11/16/09 2,000 2,261
Conoco Funding Co., 6.35%, 10/15/11 2,000 2,194
Countrywide Home Loans, Inc., 5.63%,
5/15/07 4,000 4,284
DaimlerChrysler Auto Trust, 6.85%,
11/6/05 4,867 5,008
Discover Credit, 9.26%, 3/20/12 2,000 2,473
First Union Corp., 7.00%, 3/15/06 2,125 2,364
Fleet/Norstar Group, 8.63%, 1/15/07 2,000 2,320
General Electric Capital Corp., 6.75%,
3/15/32 2,500 2,622
General Motors, 7.13%, 7/15/13 1,750 1,707
General Motors Acceptance Corp.,
6.13%, 9/15/06 3,000 3,136
Greenwich Capital Commercial Funding
Corp., 4.95%, 1/11/35 4,000 3,912
Household Finance Corp., 7.00%, 5/15/12 2,500 2,775
Kroger Co., 5.50%, 2/1/13 2,000 1,988
Lehman Brothers TRAINS, 6.85%,
1/15/12 (d)(e) 5,081 5,575
Lehman Brothers TRAINS, 7.75%,
11/15/31 (d)(e) 1,496 1,672
Lockheed Martin Corp., 7.65%, 5/1/16 3,500 4,113
Marshall & Ilsley Bank, 6.38%, 9/1/11 3,000 3,279
MBNA Master Credit Card Trust, 7.35%,
7/16/07 5,000 5,417
MBNA Master Credit Card Trust, 7.80%,
10/15/12 5,000 5,846
Midland Bank PLC, 7.63%, 6/15/06 2,000 2,275
Morgan Stanley Dean Witter & Co.,
5.30%, 3/1/13 2,700 2,655
National City Bank, 7.25%, 7/15/10 3,000 3,457
NCNB Corp., 10.20%, 7/15/15 5,000 6,912
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
PNC Funding Corp., 6.13%, 2/15/09 $ 5,000 $ 5,487
Republic New York Corp., 7.00%,
3/22/11 2,000 2,208
Science Applications International Co.,
5.50%, 7/1/33 2,000 1,675
Swiss Bank Corp. - New York, 7.38%,
7/15/15 2,000 2,343
Toyota Auto Receivables Owner Trust,
7.21%, 4/15/07 8,078 8,260
Union Bank Switzerland - New York,
7.25%, 7/15/06 3,000 3,385
Union Planters Bank, 5.13%, 6/15/07 1,000 1,047
Verizon Florida, Inc., 6.13%, 1/15/13 4,000 4,219
Washington Mutual, 4.10%, 9/25/33,
4.10%, 9/25/33 5,000 4,991
------------
TOTAL CORPORATE BONDS 138,140
------------
MUNICIPAL BONDS (0.7%)
CALIFORNIA (0.7%)
San Bernardino County, Financing
Authority Pension Obligation Revenue,
6.99%, 8/1/10 2,000 2,298
------------
TOTAL MUNICIPAL BONDS 2,298
------------
U.S. GOVERNMENT AGENCIES (46.5%)
FANNIE MAE (31.2%)
6.05%, 12/1/08 2,850 3,103
5.50%, 4/25/14 8,540 8,745
4.25%, 10/25/16 9,402 9,556
6.00%, 2/1/17 439 454
6.00%, 5/1/17 642 664
6.00%, 6/1/17 506 523
6.00%, 6/1/17 547 566
6.50%, 6/1/17 798 836
6.50%, 8/1/17 581 609
5.50%, 12/1/17 8,958 9,132
5.50%, 1/1/18 2,198 2,241
4.50%, 5/1/18, TBA 8,550 8,338
6.00%, 5/1/18 2,346 2,428
5.00%, 6/1/18 4,997 4,994
4.00%, 12/25/20 5,000 5,111
4.00%, 2/25/21 5,000 5,086
7.50%, 6/1/28 615 655
6.50%, 8/1/28 337 346
6.50%, 1/1/29 6,335 6,515
6.50%, 6/1/29 589 605
6.50%, 4/1/32 596 614
6.50%, 6/1/32 4,941 5,085
6.50%, 7/1/32 1,768 1,819
6.50%, 7/1/32 1,543 1,585
7.50%, 12/1/32 1,617 1,714
6.00%, 1/1/33, TBA 12,000 12,139
6.50%, 3/1/33 599 617
5.00%, 5/1/33, TBA 10,500 10,054
------------
104,134
------------
CONTINUED
104
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK (0.4%)
3.38%, 7/21/08 $ 1,500 $ 1,476
------------
FREDDIE MAC (10.6%)
5.50%, 2/1/18 2,256 2,299
6.50%, 7/1/32 1,435 1,473
6.25%, 7/15/32 6,000 6,098
6.50%, 9/1/32 627 646
5.50%, 2/1/33, TBA 13,900 13,752
7.00%, 2/1/33, TBA 10,500 10,963
------------
35,231
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (4.3%)
6.50%, 3/15/28 809 838
6.50%, 9/15/28 791 819
6.50%, 10/15/28 960 994
6.50%, 1/20/33 4,372 4,505
6.00%, 2/15/33 3,414 3,479
5.00%, 7/1/33, TBA 4,000 3,846
14,481
------------
TOTAL U.S. GOVERNMENT AGENCIES 155,322
------------
U.S. TREASURY OBLIGATIONS (10.6%)
U.S. TREASURY BONDS (5.7%)
8.00%, 11/15/21 8,100 10,587
6.25%, 8/15/23 2,800 3,074
6.13%, 11/15/27 600 650
6.13%, 8/15/29 4,200 4,558
------------
18,869
------------
U.S. TREASURY NOTES (4.9%)
3.63%, 5/15/13 17,500 16,327
------------
TOTAL U.S. TREASURY OBLIGATIONS 35,196
------------
MONEY MARKETS (0.7%)
Dreyfus Cash Management Money
Market Fund 102 --#
Federated Prime Value Obligations
Money Market Fund 2,211,594 2,212
------------
TOTAL MONEY MARKETS 2,212
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (4.1%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 13,627 13,627
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 13,627
------------
TOTAL INVESTMENTS (COST $405,287)+ - 122.4% 408,071
LIABILITIES IN EXCESS OF OTHER ASSETS - (22.4)% (74,648)
------------
NET ASSETS - 100.0% $ 333,423
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMERCIAL PAPER (9.5%)
BellSouth Corp., 0.98%, 8/13/03 ** (f) $ 23,150 $ 23,142
Nestle, 0.97%, 8/13/03 ** (f) 25,205 25,196
Societe Generale, 1.00%, 8/18/03 ** (f) 29,450 29,434
------------
TOTAL COMMERCIAL PAPER 77,772
------------
CORPORATE BONDS (63.4%)
ABN AMRO Bank NV, 7.13%, 6/18/07 7,300 8,258
Alabama Power Co., 3.13%, 5/1/08 4,000 3,894
American Express Co., 3.00%, 5/16/08 3,000 2,907
American Express Co., 4.88%, 7/15/13 10,000 9,775
American General Finance, 2.75%,
6/15/08 5,000 4,738
Associates Corp., N.A., 5.80%, 4/20/04 4,550 4,698
AutoZone, Inc., 4.38%, 6/1/13 2,000 1,817
Bank of America Corp., 7.40%, 1/15/11 15,000 17,291
Bank of Montreal-Chicago, 7.80%,
4/1/07 6,000 6,880
BB&T Corp., 7.25%, 6/15/07 6,000 6,757
Bear Stearns Co., 5.70%, 1/15/07 10,000 10,799
Bear Stearns Co., 2.88%, 7/2/08 5,000 4,756
Boeing Capital Corp., 5.75%, 2/15/07 3,975 4,241
BP Canada Finance, 3.63%, 1/15/09 3,000 2,989
Capital Auto Receivables Asset Trust,
4.16%, 7/16/07 14,000 14,480
Caterpillar Financial Asset Trust, 4.85%,
4/25/07 2,815 2,868
Caterpillar Financial Services Corp.,
1.44%, 2/3/05 (d) 5,000 5,002
Caterpillar Financial Services Corp.,
2.70%, 7/15/08 5,000 4,763
Chase Manhattan Auto Owner Trust,
4.55%, 8/15/05 3,060 3,094
Chase Manhattan Auto Owner Trust,
1.52%, 5/15/07 5,000 4,958
Chevron Phillips Chemical Co., 5.38%,
6/15/07 6,015 6,310
ChevronTexaco Capital Co., 3.38%,
2/15/08 5,000 4,977
CIT Group, Inc., 2.84%, 1/31/05 (d) 10,000 10,166
Citigroup, Inc., 6.50%, 2/7/06 5,000 5,413
Citigroup, Inc., 5.00%, 3/6/07 3,500 3,699
Citigroup, Inc., 7.25%, 10/1/10 9,000 10,278
Commercial Mortgage Pass-Through
Certificate, 4.08%, 6/10/38 5,000 4,541
Computer Sciences Corp., 3.50%, 4/15/08 3,000 2,950
Conoco Funding Co., 6.35%, 10/15/11 8,000 8,774
Consolidated Edison Co. of New York,
7.15%, 12/1/09 3,000 3,413
Countrywide Home Loans, Inc., 1.76%,
6/2/06 (d) 7,000 7,026
Countrywide Home Loans, Inc., 5.63%,
5/15/07 5,000 5,355
Credit Suisse First Boston, 6.50%,
1/15/12 6,000 6,467
CONTINUED
105
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
DaimlerChrysler Auto Trust, 6.85%,
11/6/05 $ 4,867 $ 5,008
Eli Lilly & Co., 2.90%, 3/15/08 5,000 4,874
First Tennessee Bank, 4.63%, 5/15/13 5,000 4,750
Fleet Financial Group, 7.38%, 12/1/09 5,000 5,725
FMR Corp., 4.75%, 3/1/13 (e) 8,000 7,865
General Electric Capital Corp., 3.50%,
5/1/08 1,500 1,478
General Electric Capital Corp., 5.88%,
2/15/12 6,000 6,288
General Electric Corp., 5.00%, 2/1/13 5,000 4,893
General Motors, 7.13%, 7/15/13 2,000 1,951
Gillette Co., 2.50%, 6/1/08 5,000 4,769
Goldman Sachs Group, Inc., 4.13%,
1/15/08 5,000 5,063
Goldman Sachs Group, Inc., 5.25%,
4/1/13 5,000 4,931
Goldman Sachs Group, Inc., 4.75%,
7/15/13 11,000 10,410
Greenwich Capital Commercial Funding
Corp., 4.95%, 1/11/35 8,000 7,825
GTE California, Inc., 7.65%, 3/15/07 5,000 5,693
Household Finance Corp., 1.56%,
6/17/05 (d) 10,000 10,041
Household Finance Corp., 5.88%,
2/1/09 5,000 5,352
Household Finance Corp., 6.38%,
10/15/11 5,000 5,342
John Deere Capital Corp., 5.10%,
1/15/13 10,000 9,891
Kellogg Co., 2.88%, 6/1/08 5,000 4,800
Kroger Co., 5.50%, 2/1/13 10,000 9,937
Lehman Brothers Holdings, 8.25%,
6/15/07 7,000 8,138
Lehman Brothers Holdings, 3.50%,
8/7/08 1,600 1,562
Marshall & Ilsley Bank, 6.38%, 9/1/11 8,000 8,744
MBNA Master Credit Card Trust,
7.80%, 10/15/12 3,000 3,508
Mellon Financial Corp., 7.38%, 5/15/07 5,000 5,700
Mellon Financial Corp., 3.98%, 7/25/29 (d) 826 829
Mellon Financial Corp., 6.85%, 3/25/30 (d) 3,765 3,832
Merrill Lynch & Co., 3.13%, 7/15/08 2,000 1,924
Morgan Stanley Dean Witter & Co.,
1.75%, 1/31/06 (d) 10,000 10,038
Morgan Stanley Dean Witter & Co.,
3.63%, 4/1/08 8,000 7,913
Morgan Stanley Dean Witter & Co.,
5.30%, 3/1/13 8,000 7,867
National City Bank, 6.25%, 3/15/11 5,000 5,444
Natural Rural Utilities, 5.75%, 11/1/08 7,000 7,525
NCNB Corp., 9.38%, 9/15/09 5,000 6,195
PACCAR Financial Corp., 1.26%,
4/15/05 (d) 5,000 5,000
PNC Funding Corp., 6.13%, 2/15/09 8,000 8,781
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Salomon Smith Barney, 7.13%,
10/1/06 $ 5,000 $ 5,600
Science Applications, 6.25%, 7/1/12 5,540 5,886
SLM Corp., 1.44%, 9/15/05 (d) 10,000 10,016
Toyota Auto Receivables Owner Trust,
7.21%, 4/15/07 4,252 4,348
Toyota Motor Credit Corp., 2.88%, 8/1/08 5,000 4,811
Travelers Group, Inc., 6.88%, 12/15/03 5,100 5,208
Union Pacific Corp., 3.63%, 6/1/10 5,000 4,630
Union Planters Bank, 5.13%, 6/15/07 2,000 2,093
Verizon Florida, Inc., 6.13%, 1/15/13 5,000 5,274
Verizon Wireless, Inc., 5.38%, 12/15/06 5,000 5,344
Viacom, Inc., 7.75%, 6/1/05 5,000 5,507
Volkswagen Auto Loan Enhanced Trust,
1.49%, 5/21/07 5,000 4,947
Wachovia Corp., 3.50%, 8/15/08 10,000 9,761
Washington Mutual Bank, 1.66%,
5/14/04 (d) 3,000 3,006
Washington Mutual Bank, 8.25%,
4/1/10 6,000 7,197
Wells Fargo & Co., 1.27%, 6/12/06 (d) 5,000 5,001
Wells Fargo & Co., 3.50%, 4/4/08 5,000 4,958
------------
TOTAL CORPORATE BONDS 517,807
------------
U.S. GOVERNMENT AGENCIES (23.3%)
FANNIE MAE (10.1%)
1.75%, 6/16/06 5,000 4,872
5.25%, 1/15/09 2,500 2,656
5.50%, 4/25/14 8,540 8,745
4.25%, 10/25/16 9,402 9,556
4.50%, 5/1/18, TBA 29,000 28,282
4.00%, 12/25/20 5,000 5,111
5.00%, 5/1/33, TBA 25,000 23,938
------------
83,160
------------
FEDERAL HOME LOAN BANK (2.2%)
2.50%, 3/15/06 8,000 8,010
3.38%, 7/21/08 10,000 9,838
------------
17,848
------------
FREDDIE MAC (10.5%)
8.12%, 1/31/05 10,410 11,386
2.88%, 9/26/05 7,000 7,016
5.25%, 1/15/06 19,000 20,306
7.22%, 6/14/06 3,000 3,382
2.63%, 7/15/08 2,000 1,905
4.50%, 11/15/12 9,500 9,154
4.00%, 6/12/13 10,000 9,025
7.00%, 2/1/33, TBA 22,000 22,972
------------
85,146
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.5%)
9.50%, 12/15/09 3,748 4,103
------------
TOTAL U.S. GOVERNMENT AGENCIES 190,257
------------
CONTINUED
106
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. TREASURY OBLIGATIONS (8.2%)
U.S. TREASURY NOTES (8.2%)
1.25%, 5/31/05 $ 25,000 $ 24,792
4.38%, 5/15/07 12,000 12,665
2.63%, 5/15/08 2,140 2,077
3.63%, 5/15/13 29,700 27,710
------------
67,244
------------
TOTAL U.S. TREASURY OBLIGATIONS 67,244
------------
MONEY MARKETS (4.3%)
Dreyfus Cash Management Money
Market Fund 987 1
Federated Prime Value Obligations
Money Market Fund 35,381,217 35,381
------------
TOTAL MONEY MARKETS 35,382
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (10.1%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 82,365 82,365
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 82,365
------------
TOTAL INVESTMENTS (COST $966,551)+ - 118.8% 970,827
LIABILITIES IN EXCESS OF OTHER ASSETS - (18.8)% (153,937)
------------
NET ASSETS - 100.0% $ 816,890
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS (53.7%)
Abbey National PLC, 6.69%, 10/17/05 $ 5,000 $ 5,463
ABN AMRO, 7.55%, 6/28/06 5,000 5,661
Aesop Funding II LLC, 2.75%,
7/20/07 (e) 5,000 4,986
American International Group, 2.85%,
12/1/05 5,000 5,048
AmSouth Bancorp., 7.75%, 5/15/04 5,000 5,244
Associates Corp. NA, 5.50%, 2/15/04 5,000 5,119
Bank of America, 1.39%, 10/22/04 (d) 5,000 5,019
Bank of New York, 2.20%, 5/12/06 9,500 9,431
Bayerische Landesbank, 6.38%, 10/15/05 10,000 10,920
BMW Vehicle Owner Trust, 1.94%,
2/25/07 5,000 5,001
BP Capital Markets PLC, 4.63%, 5/27/05 4,000 4,197
Capital One Auto Finance Trust, 3.44%,
6/15/09 5,000 5,089
Caterpillar Financial Asset Trust, 3.15%,
2/25/08 5,000 5,070
Chase Credit Card Master Trust, 6.66%,
1/15/07 5,000 5,253
Chase Manhattan Auto Owner Trust,
2.06%, 12/15/09 10,000 9,671
CIT Group, Inc., 7.63%, 8/16/05 2,500 2,746
Citibank Credit Card Issuance Trust,
4.40%, 5/15/07 5,000 5,215
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 4,500 4,369
Countrywide Financial, 3.50%,
12/19/05 5,000 5,113
Credit Suisse First Boston, Inc., 7.75%,
5/15/06 (e) 5,000 5,638
DaimlerChrysler Auto Trust, 2.93%,
6/6/06 3,000 3,045
Dow Chemical Co., 5.25%, 5/14/04 1,400 1,433
First of America, 8.50%, 2/1/04 4,000 4,145
First Union Corp., 7.70%, 2/15/05 5,000 5,443
FleetBoston Financial Corp., 7.25%,
9/15/05 5,000 5,525
Ford Credit Auto Owner Trust, 3.38%,
12/15/05, Series 2002-C, Class A3 6,000 6,116
General Electric Capital Corp., 1.45%,
5/12/06 (d) 3,000 3,004
General Motors Acceptance Corp.,
1.54%, 7/20/04 (d) 5,000 4,969
Heller Financial, Inc., 6.00%, 3/19/04 3,000 3,088
Hertz Corp., 6.50%, 5/15/06 3,000 3,071
Honda Auto Receivables Owner Trust,
1.69%, 2/21/07 7,500 7,458
Honda Auto Receivables Owner Trust,
2.48%, 7/18/08 3,000 2,992
HSBC USA, Inc., 7.00%, 11/1/06 5,004 5,598
IBM Corp., 2.38%, 11/1/06 5,500 5,440
International Lease Finance Corp., 5.35%,
5/3/04 4,700 4,832
Kerr-McGee Corp., 5.38%, 4/15/05 2,500 2,607
KeyCorp, 4.63%, 5/16/05 2,000 2,093
CONTINUED
107
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
KFW International Finance, 2.50%,
10/17/05 $ 3,000 $ 3,023
Kroger Co., 8.15%, 7/15/06 5,000 5,660
MBNA Credit Card Master Note Trust,
3.90%, 11/15/07 4,000 4,137
MBNA Credit Card Master Note Trust,
2.75%, 10/15/10 3,500 3,334
Morgan Stanley Dean Witter, 6.10%,
4/15/06 5,000 5,417
National Rural Utilities, 5.25%, 7/15/04 5,000 5,175
Northern Trust Co., 7.50%, 2/11/05 5,000 5,425
PNC Funding Corp., 1.49%, 10/29/04 (d) 5,000 5,014
Protective Life US Funding, 5.88%,
8/15/06 (e) 5,000 5,450
Safeway, Inc., 6.05%, 11/15/03 3,000 3,034
Societe Generale - New York, 7.40%,
6/1/06 3,300 3,700
Society National Bank, 7.25%, 6/1/05 5,000 5,431
St. Paul Companies, Inc., 7.88%, 4/15/05 5,000 5,455
Synovus Financial, 7.25%, 12/15/05 3,000 3,324
Volkswagen Auto Loan Enhanced Trust,
1.49%, 5/21/07 8,000 7,915
Volkswagon Auto Lease Trust, 2.75%,
12/20/07 4,000 4,042
Wachovia Corp., 6.70%, 6/21/04 5,000 5,237
Washington Mutual Bank, 4.82%,
10/25/32 5,000 5,113
Wells Fargo Company, 3.12%, 8/15/08 5,000 4,834
Westdeutsche Landesbank, 6.75%, 6/15/05 5,000 5,400
------------
TOTAL CORPORATE BONDS 281,232
------------
FOREIGN BONDS (0.9%)
Ontario (Province of), 3.28%, 3/28/08 5,000 4,931
------------
TOTAL FOREIGN BONDS 4,931
------------
U.S. GOVERNMENT AGENCIES (33.1%)
FANNIE MAE (8.8%)
5.63%, 5/14/04 7,000 7,241
6.50%, 8/15/04 12,000 12,636
3.50%, 9/15/04 7,500 7,678
7.13%, 2/15/05 8,000 8,654
2.88%, 10/15/05 10,000 10,149
------------
46,358
------------
FEDERAL HOME LOAN BANK (8.6%)
5.38%, 1/5/04 5,000 5,094
3.38%, 6/15/04 10,000 10,175
3.63%, 10/15/04 10,000 10,251
2.13%, 12/15/04 10,000 10,063
2.25%, 7/25/08 9,895 9,422
------------
45,005
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (11.9%)
3.25%, 12/15/03 $ 5,000 $ 5,038
5.00%, 5/15/04 10,000 10,295
3.25%, 11/15/04 7,500 7,657
4.25%, 6/15/05 10,000 10,419
5.00%, 2/1/07 3,207 3,283
4.50%, 12/15/07 5,000 5,075
3.50%, 12/15/10 10,000 10,019
4.00%, 11/15/15 10,000 10,033
------------
61,819
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (3.8%)
2.87%, 2/16/20 9,938 9,785
4.50%, 11/16/24 5,000 5,100
4.50%, 3/20/33 5,000 5,081
------------
19,966
------------
TOTAL U.S. GOVERNMENT AGENCIES 173,148
------------
U.S. TREASURY OBLIGATIONS (9.0%)
U.S. TREASURY INFLATION PROTECTED BONDS (2.4%)
3.63%, 1/15/08 11,359 12,402
U.S. TREASURY NOTES (6.6%)
4.25%, 11/15/03 2,000 2,019
2.13%, 8/31/04 10,000 10,091
2.13%, 10/31/04 10,000 10,091
1.75%, 12/31/04 7,500 7,528
1.63%, 1/31/05 5,000 5,006
------------
34,735
------------
TOTAL U.S. TREASURY OBLIGATIONS 47,137
------------
MONEY MARKETS (2.6%)
Dreyfus Cash Management Money
Market Fund 207 --#
Federated Prime Value Obligations
Money Market Fund 13,836,352 13,837
------------
TOTAL MONEY MARKETS 13,837
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (5.5%)
Pool of various securities for Fifth Third
Funds - footnote 3 (Lending Portfolio
Securities) $ 28,968 28,968
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 28,968
------------
TOTAL INVESTMENTS (COST $547,972)+ - 104.8% 549,253
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.8)% (25,049)
------------
NET ASSETS - 100.0% $ 524,204
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
108
U.S. GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES (75.0%)
FANNIE MAE (52.2%)
0.97%, 8/13/03 ** (f) $ 6,175 $ 6,173
0.99%, 8/18/03 ** (f) 6,250 6,246
6.84%, 10/20/05 2,000 2,026
5.25%, 6/15/06 1,500 1,608
6.38%, 6/15/09 1,100 1,226
6.63%, 9/15/09 3,830 4,322
6.63%, 11/15/10 3,000 3,375
5.50%, 4/25/14 1,708 1,749
4.25%, 10/25/16 1,880 1,911
4.50%, 5/1/18, TBA 3,000 2,926
5.50%, 5/1/18, TBA 3,000 3,058
4.00%, 12/25/20 3,000 3,066
------------
37,686
------------
FEDERAL FARM CREDIT BANK (4.4%)
5.10%, 11/24/03 2,000 2,026
6.60%, 7/7/06 1,000 1,111
------------
3,137
------------
FEDERAL HOME LOAN BANK (3.7%)
2.50%, 3/15/06 1,000 1,001
6.09%, 6/2/06 1,500 1,641
------------
2,642
------------
FREDDIE MAC (10.7%)
5.25%, 1/15/06 2,000 2,137
5.50%, 9/15/11 650 679
4.50%, 11/15/12 1,850 1,783
6.50%, 5/1/33, TBA 3,000 3,083
------------
7,682
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (4.0%)
5.00%, 6/1/33, TBA 3,000 2,873
------------
TOTAL U.S. GOVERNMENT AGENCIES 54,020
------------
U.S. TREASURY OBLIGATIONS (39.2%)
U.S. TREASURY NOTES (39.2%)
2.13%, 10/31/04 2,800 2,826
1.63%, 3/31/05 5,000 4,999
6.50%, 8/15/05 500 547
2.00%, 5/15/06 2,500 2,484
4.38%, 5/15/07 1,685 1,778
5.50%, 2/15/08 800 879
5.63%, 5/15/08 1,730 1,909
8.38%, 8/15/08 4,000 4,011
5.00%, 8/15/11 2,000 2,101
4.38%, 8/15/12 4,300 4,287
3.63%, 5/15/13 2,600 2,426
------------
28,247
------------
TOTAL U.S. TREASURY OBLIGATIONS 28,247
------------
MONEY MARKETS (2.0%)
Dreyfus Cash Management Money
Market Fund 1,461,804 1,462
Federated Government Obligations 100 --#
------------
TOTAL MONEY MARKETS 1,462
------------
TOTAL INVESTMENTS (COST $83,868)+ - 116.2% 83,729
LIABILITIES IN EXCESS OF OTHER ASSETS - (16.2)% (11,661)
------------
NET ASSETS - 100.0% $ 72,068
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (96.0%)
ARIZONA (1.5%)
Greater Arizona Development Authority,
6.00%, 8/1/13,
(Callable 8/1/08 @ 102) $ 1,070 $ 1,207
------------
CALIFORNIA (4.1%)
Cal Poly Pomona Foundation, Inc.,
5.50%, 2/1/20,
(Callable 2/1/11 @ 101) 265 285
Sacramento County Sanitation Financing
Authority, 6.00%, 12/1/15,
(Callable 12/1/10 @ 101) 250 282
San Francisco City and County Airport,
(AMT), 5.35%, 5/1/10,
(Callable 5/1/06 @ 102) 2,445 2,639
------------
3,206
------------
COLORADO (7.6%)
Boulder Sales and Use Tax, Series A,
6.00%, 12/15/18,
(Callable 12/15/09 @ 101) 2,265 2,551
Denver City & County Airport
Revenue, 5.00%, 11/15/08 1,020 1,113
E-470 Public Highway Authority
Revenue, Series C, 6.00%, 9/1/07 1,000 1,130
El Paso County School District No. 38,
6.00%, 12/1/24,
(Prerefunded 12/1/10 @ 100) 1,000 1,160
------------
5,954
------------
DELAWARE (5.1%)
Transportation Authority, 6.00%,
7/1/16, (Callable 7/1/10 @ 100) 3,500 4,032
------------
FLORIDA (2.8%)
Board of Education, Series D, 5.75%,
6/1/19, (Callable 6/1/10 @ 101) 2,000 2,185
------------
GEORGIA (3.7%)
GO, Series D, 5.80%, 11/1/16,
(Callable 11/1/09 @ 102) 2,610 2,925
------------
ILLINOIS (8.6%)
Chicago Metropolitan Water Reclamation
District-Greater Chicago, Capital
Improvements, GO, 7.25%, 12/1/12 500 629
Chicago Single Family Mortgage
Revenue, Series A, (AMT), 4.70%,
10/1/17, (Callable 4/1/09 @ 102) 735 742
Development Finance Authority, 6.38%,
1/1/17, (Callable 1/1/11 @ 100) 1,700 1,923
Development Finance Authority, 6.38%,
1/1/18, (Callable 1/1/11 @ 100) 1,700 1,923
Development Financial Authority,
1.10%, 12/1/07 (d) 100 100
GO, 5.88%, 10/1/17,
(Callable 1/1/09 @ 100) 300 331
Sales Tax, Series S, 5.00%, 6/15/08 1,000 1,093
------------
6,741
------------
CONTINUED
109
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
INDIANA (6.1%)
Franklin Township School Building,
6.50%, 7/15/18,
(Prerefunded 7/15/10 @ 102) $ 4,000 $ 4,798
------------
IOWA (3.1%)
Finance Authority, Private College
Revenue, Drake University Project,
6.50%, 12/1/11 2,055 2,434
------------
MICHIGAN (10.7%)
Frankenmuth School District, 5.75%,
5/1/20, (Callable 5/1/10 @ 100) 650 702
Genesee School District, 6.00%, 5/1/29,
(Prerefunded 5/1/10 @ 100) 1,000 1,149
Higher Education Student Loan, (AMT),
4.75%, 3/1/09 3,000 3,180
Kent Spectrum Health, Series A, 5.50%,
1/15/13 2,125 2,252
Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13,
(Callable 9/1/08 @ 102) 1,000 1,057
------------
8,340
------------
MINNESOTA (4.4%)
Becker Independent School District No.
726, 6.00%, 2/1/21,
(Callable 2/1/10 @ 100) 1,000 1,098
Rochester Independent School District
No. 535, 5.88%, 2/1/20,
(Callable 2/1/10 @ 100) 2,150 2,327
------------
3,425
------------
MISSOURI (6.9%)
Greene County School District, 6.20%,
3/1/18, (Callable 3/1/10 @ 100) 2,400 2,679
Health & Education Facilities, 6.50%,
2/15/21, (Prerefunded 2/15/06 @ 102) 335 379
Lawson School District No.14, 6.20%,
3/1/20, (Callable, 3/1/10 @ 100) 2,050 2,359
------------
5,417
------------
NEBRASKA (3.6%)
Omaha Public Power District, 5.10%,
2/1/08 1,075 1,173
Omaha, Series A, UTGO, 6.50%,
12/1/13 1,365 1,649
------------
2,822
------------
NEVADA (4.3%)
Clark County School District, GO,
5.75%, 6/15/10,
(Prerefunded 6/15/06 @ 101) 1,000 1,115
Municipal Bond Bank, Series A, GO,
8.00%, 11/1/05 2,000 2,278
------------
3,393
------------
NEW JERSEY (2.1%)
Transportation Trust Fund Authority,
Transportation System, Series A,
6.00%, 12/15/06 1,500 1,684
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
NEW YORK (4.5%)
New York City Transitional Financial
Authority, 5.75%, 11/15/16,
(Callable 5/15/10 @ 101) $ 2,200 $ 2,413
Thruway Authority, Series 1997 B,
6.00%, 4/1/07 1,000 1,113
------------
3,526
------------
OHIO (2.2%)
Summit County, 6.00%, 12/1/21,
(Prerefunded 12/1/10 @ 101) 1,445 1,688
------------
OKLAHOMA (1.4%)
Tulsa International Airport, (AMT),
5.50%, 6/1/10 1,000 1,080
------------
PENNSYLVANIA (2.8%)
GO, 6.00%, 1/15/19,
(Callable 1/15/10 @ 101) 2,000 2,221
------------
TENNESSEE (1.6%)
Housing Development Agency,
Mortgage Finance, Series C, (AMT),
5.95%, 7/1/09, (Callable 7/1/05 @ 102) 1,225 1,289
------------
TEXAS (7.5%)
Clint Independent School District, 6.00%,
2/15/15, (Callable 2/15/11 @ 100) 1,615 1,808
Dallas Fort Worth International Airport,
6.00%, 11/1/28,
(Callable 11/1/09 @ 100) 3,000 3,183
Travis County, GO, 5.75%, 3/1/17,
(Callable 3/1/10 @ 100) 815 888
------------
5,879
------------
WASHINGTON (1.4%)
Douglas County Public Utility District
No. 001, Electric Distribution System,
5.90%, 1/1/11, (Callable 1/1/05 @ 102) 1,000 1,070
------------
TOTAL MUNICIPAL BONDS 75,316
------------
MONEY MARKETS (2.8%)
AIM Tax Free Money Market Fund 315 --#
Dreyfus Tax Exempt Money
Market Fund 1,278,193 1,278
Federated Tax Exempt Money
Market Fund 881,082 881
Merrill Lynch Institutional Tax
Exempt Fund 130 --#
------------
TOTAL MONEY MARKETS 2,159
------------
TOTAL INVESTMENTS (COST $70,719)+ - 98.8% 77,475
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.2% 913
------------
NET ASSETS - 100.0% $ 78,388
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
110
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (97.3%)
ALABAMA (0.7%)
Public School & College Authority
Revenue, 5.25%, 8/1/06 $ 2,050 $ 2,241
------------
ALASKA (0.3%)
Anchorage Electric Utility Revenue
Bond, Senior Lien, 5.50%, 12/1/03,
(Callable 10/6/03 @ 102) 1,000 1,015
------------
ARIZONA (12.2%)
Glendale Water & Sewer Revenue, 5.00%,
7/1/06 1,290 1,393
Glendale Water & Sewer Revenue, 5.00%,
7/1/07 1,040 1,134
Highway Transportation Board
Revenue, 5.25%, 7/1/12,
(Callable 7/1/11 @ 100) 3,110 3,376
Highway Transportation Board
Revenue, Series A, 5.00%, 7/1/10 4,680 5,093
Maricopa County University School
District, No. 097, 3.75%, 7/1/12 2,000 1,972
Mesa Street & Highway Revenue,
6.25%, 7/1/12 1,000 1,172
Mesa Street & Highway Revenue,
6.25%, 7/1/13,
(Prerefunded 7/1/11 @ 100) 1,000 1,169
Mesa Street & Highway Revenue,
5.00%, 7/1/14,
(Prerefunded 7/1/11 @ 100) 1,000 1,084
Mesa Utility System Revenue, 5.00%,
7/1/13, (Prerefunded 7/1/09 @ 100) 5,250 5,782
Phoenix Civic Improvement Corp.
Excise Tax Revenue, 5.00%, 7/1/11 1,405 1,521
Pima County Community College
District Revenue, 5.00%, 7/1/05 1,370 1,458
Pima County Community College
District Revenue, 5.00%, 7/1/07 670 730
Pima County University School District,
No. 012 Sunnyside, GO, 5.75%, 7/1/12,
(Prerefunded 7/1/09 @ 100) 1,050 1,198
Pima County, Improvement, GO,
5.00%, 7/1/06 2,000 2,160
Salt River Project, Agriculture
Improvement & Power District, Electric
Systems Revenue, Series A, 5.63%,
1/1/06 2,685 2,917
Salt River Project, Agriculture
Improvement & Power District, Electric
Systems Revenue, Series A, ETM,
5.63%, 1/1/06 2,315 2,515
Tempe Excise Tax Revenue, 4.00%,
7/1/12 1,000 1,002
Tucson Street & Highway, User
Revenue, Junior Lien, Series 1994-E,
6.75%, 7/1/13 2,000 2,434
------------
38,110
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA (4.5%)
Contra Costa Community College
District Election 2002, 5.25%,
8/1/15, (Callable 8/1/12 @ 100) $ 2,300 $ 2,459
Los Angeles Sanitation Equipment
Charge Revenue Series A, 5.25%,
2/1/17, (Callable 2/1/11 @ 100) 2,965 3,130
Los Angeles Water & Power Revenue,
Series A, 5.25%, 7/1/13,
(Callable 7/1/11 @ 100) 2,000 2,158
Orange County, Series A, Refunding
Recovery, 6.00%, 6/1/10 3,000 3,428
Salinas University High School District
Series A, 5.25%, 10/1/16,
(Callable 10/1/13 @ 100) 1,495 1,596
Southern Public Power Authority Power
Project Revenue, Series A,
5.38%, 1/1/12 1,205 1,319
------------
14,090
------------
COLORADO (5.2%)
Denver City & County Airport Facilities
Revenue, Rental Car Project, Series A,
(AMT), 5.00%, 1/1/04 2,000 2,032
Denver City & County Airport Revenue,
Series A, (AMT), 5.25%, 11/15/06 2,500 2,719
Denver City & County Airport Revenue,
Series B, (AMT), 5.50%, 11/15/07 1,000 1,098
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/06 1,000 1,080
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/07 2,655 2,902
El Paso County School District No.
038, GO, 6.38%, 12/1/16,
(Prerefunded 12/1/10 @ 100) 1,150 1,362
El Paso County School District No.
038, GO, 6.38%, 12/1/18,
(Prerefunded 12/1/10 @ 100) 1,005 1,190
Housing & Finance Authority, Single
Family Program, Series C-3, 4.70%,
10/1/22, (Callable 1/3/07 @ 100) 5 5
Larimer County School District No. R1,
GO, 5.50%, 12/15/09 2,000 2,260
Summitt County School District No.
RE1, GO, 5.75%, 12/1/12,
(Callable 12/1/11 @ 100) 1,465 1,655
------------
16,303
------------
CONNECTICUT (0.6%)
New Haven, Series B, GO, 5.75%, 11/1/09 1,500 1,718
------------
FLORIDA (2.1%)
Board of Education, 5.25%, 6/1/11 4,000 4,379
Lakeland Electric & Water Revenue,
ETM, 5.90%, 10/1/07 2,000 2,272
------------
6,651
------------
GEORGIA (0.5%)
Series B, GO, 5.95%, 3/1/08 1,500 1,703
------------
CONTINUED
111
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
HAWAII (1.1%)
Airport Systems Revenue, Series B
(AMT), 8.00%, 7/1/10 $ 2,000 $ 2,460
Highway Revenue, 5.50%, 7/1/10 765 851
------------
3,311
------------
ILLINOIS (3.6%)
Chicago Metropolitan Water
Reclamation District, Capital
Improvement, ETM, GO,
5.50%, 12/1/10 3,000 3,384
Chicago Metropolitan Water
Reclamation District, Series B, GO,
5.00%, 12/1/05 2,000 2,156
Chicago Single Family Mortgage
Revenue, Series C, (AMT), 4.10%,
10/1/09, (Callable 1/6/04 @ 100) 590 591
Development Finance Authority Ltd.,
1.10%, 5/1/15,
(Callable 5/1/04 @ 100) (d) 100 100
Development Financial Authority Ltd.,
1.10%, 12/1/07,
(Callable 12/1/03 @ 100) (d) 100 100
Development Financial Authority
Revenue, 1.10%, 10/1/10,
(Callable 10/1/03 @ 100) (d) 100 100
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/15, (Callable 1/1/11 @ 100) 1,300 1,488
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/16, (Callable 1/1/11 @ 100) 1,470 1,668
Illinois, First Series, 5.25%, 2/1/09 1,000 1,095
South Barrington Cook County, 0.85%,
12/1/27 (d) 425 425
------------
11,107
------------
INDIANA (3.9%)
Educational Facility Authority Revenue,
0.85%, 12/1/08,
(Callable 12/1/03 @ 100) (d) 300 300
Fort Wayne Redevelopment Authority,
5.00%, 2/1/12 1,125 1,179
Franklin Township School Building
County First Mortgage, 5.50%, 7/15/16,
(Callable 7/15/13 @ 100) 2,175 2,368
Michigan City Independent School
Building Corp., 5.00%, 7/5/09 1,400 1,527
Municipal Power Supply Agency
System Revenue, Series B,
5.88%, 1/1/10 2,000 2,247
Municipal Power Supply Agency
System Revenue, Series B,
6.00%, 1/1/13 3,000 3,409
Tippecanoe County Independent
Elementary School Building Corp.,
5.10%, 7/15/06 1,000 1,082
------------
12,112
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
KANSAS (0.4%)
Seward County University School
District, No 480, 2.70%, 3/1/11 $ 525 $ 474
Seward County University School
District, No 480, 2.90%, 3/1/12 460 413
Seward County University School
District, No 480, 3.00%, 9/1/13 370 327
------------
1,214
------------
KENTUCKY (0.7%)
Turnpike Authority Economic
Development Revenue, Revitalization
Project, Series A, 5.50%, 7/1/10 2,000 2,221
------------
MAINE (0.7%)
Housing Authority Management
Provider, Series F-2, (AMT), 2.55%,
11/15/05 2,190 2,210
------------
MARYLAND (0.8%)
Montgomery County, Series A, 5.00%,
2/1/09 2,365 2,591
------------
MASSACHUSETTS (0.9%)
Water Pollution Abatement, Series 7,
5.25%, 2/1/12,
(Callable 8/1/11 @ 100) 2,500 2,732
------------
MICHIGAN (19.8%)
Battle Creek Downtown Development
Authority, 6.00%, 5/1/07 2,215 2,486
Battle Creek Downtown Development
Authority, 7.30%, 5/1/10,
(Prerefunded 5/1/04 @ 102) 2,000 2,130
Building Authority Revenue, Police
Communications, 5.50%, 10/1/12 350 389
Comprehensive Transportation, 5.50%
5/15/11 950 1,053
Detroit Water Supply System,
Permanent Linked Bonds, 5.25%,
7/1/13, (Callable 7/1/04 @ 102) 6,000 6,303
Detroit, GO, (AMT), 5.50%, 4/1/08 1,195 1,320
Detroit, Series A, GO, 6.70%, 4/1/10,
(Prerefunded 4/1/05 @ 101) 1,000 1,098
Forest Hills Public Schools, GO,
5.25%, 5/1/09 2,785 3,080
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%, 10/1/08 565 637
Grand Rapids Water Supply, 5.00%, 1/1/08 1,000 1,087
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/07 765 843
Higher Education Facilities Authority
Revenue, Hope College Project, 4.50%,
10/1/07 250 263
Higher Education Facilities Authority
Revenue, Hope College Project, 4.80%,
10/1/10, (Callable 10/1/09 @ 100) 590 604
CONTINUED
112
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Higher Education Facilities Authority,
Hope College Project,
4.70%, 10/1/09 $ 200 $ 210
Higher Education Student Loan
Authority Revenue, Series XII-Q,
(AMT), 5.05%, 9/1/08 3,885 4,134
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.60%, 9/1/08 1,000 1,058
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 5.20%, 9/1/08 4,225 4,556
Holland School District, 5.00%, 5/1/09 3,255 3,551
Hospital Finance Authority, 4.35%, 3/1/09 500 511
Hospital Finance Authority Revenue,
Genesys Health System, Series A, ETM,
5.25%, 10/1/03 2,445 2,462
Hospital Financial Authority, 0.85%,
5/1/30 (d) 550 550
Hospital Financial Authority Revenue,
Edward W. Sparrow Group, 5.25%,
11/15/08 1,125 1,221
Hospital Financial Authority Revenue,
Edward W. Sparrow Hospital, 5.25%,
11/15/09 1,165 1,258
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.35%, 5/15/06 2,000 2,172
Kent Hospital Financial Authority,
Revenue, Spectrum Health, Series A,
5.25%, 1/15/09 1,075 1,157
Montague Public School District, GO,
5.50%, 5/1/12, (Callable 11/1/11 @ 100) 1,005 1,108
Muskegon Water System, Series A,
5.25%, 11/1/09 340 378
State Building Authority Revenue,
5.00%, 10/12/10 5,000 5,427
Strategic Fund, Limited Obligation
Revenue, Hope Network Project, Series B,
4.80%, 9/1/08 1,000 1,065
Strategic Fund, Limited Obligation
Revenue, Peachwood Center, 0.87%,
6/1/16, (Callable 6/1/04 @ 100) (d) 500 500
Trunk Line, Series A, 5.25%, 11/1/13 600 651
Underground Storage Tank Financial
Assurance Authority, Series I, 6.00%,
5/1/05 3,500 3,768
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 4,130 4,541
------------
61,571
------------
MINNESOTA (1.9%)
Housing Finance Agency, 4.55%,
7/1/12, (Callable 7/1/11 @ 100) 1,540 1,563
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MINNESOTA, CONTINUED
Minneapolis & St. Paul Airport
Revenue, Series B, (AMT), 5.00%,
1/1/05 $ 2,855 $ 2,971
State Housing Finance Agency, 3.40%,
7/1/12 (d) 1,390 1,305
------------
5,839
------------
MISSISSIPPI (0.2%)
Series A, GO, 5.25%, 12/1/07 500 555
------------
MISSOURI (2.1%)
Clay County Public School District No.
53, Liberty Direct Deposit Program,
GO, 6.25%, 3/1/17,
(Callable 3/1/10 @ 100) 2,000 2,291
State Regal Convention & Sports
Complex Authority, 5.25%, 8/15/12 3,880 4,246
------------
6,537
------------
NEBRASKA (0.7%)
Finance Authority Single Family
Housing Revenue, 4.00%, 9/1/13,
(Callable 3/1/13 @ 100) 350 337
Investment Financial Authority, Single
Family Housing Revenue, Series D,
4.10%, 9/1/10 500 503
Investment Financial Authority, Single
Family Housing Revenue, Series D,
4.25%, 9/1/11 700 705
Finance Authority Single Family
Housing Revenue, 3.90%, 9/1/12 560 536
------------
2,081
------------
NEVADA (2.0%)
Clark County School District, 5.50%,
6/15/15, (Callable 12/15/12 @ 103) 2,000 2,230
Clark County School District, Series B,
GO, 5.50%, 6/15/08 3,700 4,129
------------
6,359
------------
NEW JERSEY (4.4%)
Economic Development Authority,
Market Transition Facility, Senior Lien,
Series A, 7.00%, 7/1/04 2,000 2,109
GO, 5.75%, 5/1/09 5,175 5,858
Ocean County Utilities Authority,
Wastewater, Refunding, 6.00%, 1/1/07 2,500 2,787
Turnpike Authority Revenue, Series A,
6.00%, 1/1/13 2,500 2,864
------------
13,618
------------
NEW MEXICO (0.6%)
Taos County Gross Receipts Tax
Revenue, 3.50%, 10/1/12,
(Callable 10/1/09 @ 100) 1,855 1,750
------------
NEW YORK (0.4%)
Metropolitan Transportation Authority,
Series M, 5.50%, 7/1/08 1,030 1,162
------------
CONTINUED
113
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO (1.8%)
Cleveland Airport Systems Revenue,
Series A, (AMT), 5.50%, 1/1/04 $ 500 $ 509
Gateway Economic Development Corp.,
Greater Cleveland Excise Tax Revenue,
Senior Lien, (AMT), 5.13%, 9/1/05 1,000 1,067
Housing Financial Agency Management
Revenue, Series A-1, (AMT), 5.35%,
9/1/05 2,220 2,332
Summit County, GO, 6.00%, 12/1/09 400 461
Water Development Authority, Pollution
Control Facility Revenue, 6.00%,
6/1/05 1,000 1,078
------------
5,447
------------
OREGON (2.7%)
Department of Transportation, Highway
User Tax Revenue, 5.00%, 11/15/05 1,045 1,126
Jackson County School District No.
009, Eagle Point, GO, 5.00%, 6/15/08 1,030 1,132
Jackson County School District No.
009, Eagle Point, GO, 5.00%, 6/15/09 1,060 1,163
Salem- Keizer School District No. 24J,
4.50%, 6/1/08 1,000 1,075
State Department Administrative Services
Lottery Revenue, 5.00%, 4/1/13 1,605 1,716
Washington County Sewer Agency,
Senior Lien, Series A, 5.75%, 10/1/12 2,000 2,268
------------
8,480
------------
PENNSYLVANIA (2.9%)
Chartiers Valley Joint School, ETM,
6.15%, 3/1/07,
(Callable 12/12/06 @ 100) 4,110 4,636
GO, 5.00%, 10/1/05 3,000 3,221
Housing Finance Agency, 4.50%, 10/1/09 1,195 1,224
------------
9,081
------------
RHODE ISLAND (0.9%)
Depositors Economic Protection Corp.,
Series A, ETM, 5.88%, 8/1/11,
(Callable 7/1/11 @ 100) 2,535 2,935
------------
SOUTH CAROLINA (0.3%)
Anderson County School District No.
002, Series B, GO, 6.00%, 3/1/13,
(Callable 3/1/10 @ 101) 890 1,005
------------
TENNESSEE (0.1%)
Shelby County Health, Educational &
Housing Facilities Board Revenue, St.
Jude's Children's Research, 4.65%,
7/1/04 300 309
------------
TEXAS (7.1%)
Austin, Public Improvement, 5.50%,
9/1/12, (Callable 9/1/11 @ 100) 2,340 2,567
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
TEXAS, CONTINUED
Dallas Civic Center, Improvements,
5.00%, 8/15/14,
(Callable 8/15/08 @ 101) $ 2,500 $ 2,643
Dallas Waterworks & Sewer Systems
Revenue, 5.25%, 10/1/09 1,000 1,106
Houston Airport System Revenue, Series
A, (AMT), 5.00%, 7/1/05 1,900 2,001
Judson Independent School District, GO,
5.50%, 2/1/09 2,000 2,223
Public Finance Authority, Series A, GO,
6.50%, 10/1/04 5,595 5,943
Round Rock Independent School
District, GO, 6.50%, 8/1/08 2,125 2,472
San Antonio Water Revenue, ETM, 6.30%,
5/15/04 95 99
San Antonio, Series A, GO, 5.00%, 2/1/09 1,000 1,085
Series A, GO, 6.00%, 10/1/08 1,600 1,830
------------
21,969
------------
UTAH (1.2%)
GO, 4.50%, 7/1/08 1,825 1,965
St. George Water Revenue, Series A, 5.60%,
6/1/10, (Prerefunded 6/1/05 @ 101) 1,530 1,664
------------
3,629
------------
VIRGINIA (3.1%)
Fairfax County, 5.00%, 6/1/10 2,765 3,022
Metropolitan Washington D. C. Airports,
Series B, (AMT), 5.50%, 10/1/05 4,175 4,454
Richmond, GO, 5.38%, 7/15/13,
(Callable 7/15/11 @ 101) 2,000 2,181
------------
9,657
------------
WASHINGTON (5.4%)
Grant County Public Utility District No.
002, Electric Revenue, 5.00%, 1/1/11 2,485 2,653
King County School District No. 415,
Kent, Series A, GO, 5.55%, 12/1/11,
(Callable 1/29/10 @ 100) 2,000 2,230
Motor Vehicle Fuel Tax, R-92D, 6.25%,
9/1/07 1,000 1,138
Port Tacoma, Series A, GO, (AMT), 4.90%,
12/1/07 1,010 1,095
Series A, GO, 5.50%, 9/1/05,
(Prerefunded 9/1/04 @ 100) 5,000 5,242
Series R-A, GO, 5.50%, 9/1/08 4,000 4,478
------------
16,836
------------
WISCONSIN (1.5%)
Series 3, GO, 5.13%, 11/1/08 4,180 4,617
------------
TOTAL MUNICIPAL BONDS 302,766
------------
CONTINUED
114
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ------------
MONEY MARKETS (2.9%)
AIM Tax Free Money Market Fund 100 $ --#
Dreyfus Tax Exempt Money
Market Fund 100 --#
Federated Tax Exempt Money
Market Fund 8,957,078 8,957
Merrill Lynch Institutional Tax
Exempt Fund 100 --#
------------
TOTAL MONEY MARKETS 8,957
------------
TOTAL INVESTMENTS (COST $297,811)+ - 100.2% 311,723
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (613)
------------
NET ASSETS - 100.0% $ 311,110
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (98.7%)
OHIO (98.1%)
Air Quality, Development Authority
Revenue, Cincinnati Gas & Electric
Co., Series A, 3.60%, 8/1/33 $ 2,000 $ 2,000
Akron, Bath, Copley, Hospital Revenue,
7.00%, 1/1/12, 7.00%, 1/1/12, ETM 2,000 2,379
Akron, GO, 5.50%, 12/1/07 2,000 2,239
Akron, Various Purpose Improvement,
GO, 5.60%, 12/1/06,
(Callable 12/1/04 @ 102) 500 540
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/11 1,825 1,986
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/12, (Callable 1/1/11 @ 100) 2,000 2,155
Beavercreek Local School District,
6.60%, 12/1/15 1,500 1,825
Building Authority, 5.00%, 4/1/07 2,305 2,504
Building Authority, 5.25%, 4/1/09,
(Callable 4/1/08 @ 101) 1,000 1,095
Building Authority, 5.25%, 10/1/10,
(Callable 4/1/09 @ 101) 2,410 2,631
Building Authority, Correctional
Facilities Series A, 5.25%, 10/1/09 2,170 2,408
Building Authority Revenue, Adult
Correctional Facility, Series A, 5.50%,
10/1/08 2,500 2,814
Building Authority, Revenue, State
Facilities Administration Building,
Series A, 5.25%, 10/1/10,
(Callable 10/1/08 @ 101) 2,000 2,185
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18,
(Callable 11/15/08 @ 101) 4,000 3,619
Butler County Transportation
Improvement District, Series A, 6.00%,
4/1/12, (Callable 4/1/08 @ 102) 2,000 2,243
Cleveland Public Power System
Revenue, 5.25%, 11/15/16,
(Callable 11/15/06 @ 102) 5,000 5,413
Cleveland Public Power System
Revenue, 7.00%, 11/15/24 2,000 2,193
Cleveland Stadium Project, 5.25%,
11/15/11, (Callable 11/15/07 @ 102) 4,110 4,458
Columbus Sewer Revenue, 5.00%,
6/1/06 2,000 2,162
Columbus Water System Revenue, 4.50%,
11/1/04 2,770 2,886
Columbus, Series 2, GO, 6.00%, 6/15/07 4,090 4,626
Cuyahoga County Hospital Revenue
5.50%, 2/15/09 2,245 2,487
Cuyahoga County Jail Facilities, GO,
5.25%, 10/1/13 3,000 3,283
Cuyahoga County Revenue, Refunding
A, 5.50%, 1/1/12 2,000 2,155
Cuyahoga County, GO, 5.60%, 5/15/13 3,435 3,816
CONTINUED
115
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Economic Development Revenue,
3.50%, 12/1/07 $ 610 $ 616
Economic Development Revenue,
4.40%, 12/1/12 815 804
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/08 400 422
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/09 210 220
Erie County Hospital Facilities
Revenue, 5.50%, 8/15/12 250 271
Euclid City School District, GO, 5.13%,
12/1/11, (Callable 12/1/05 @ 102) 1,500 1,609
Franklin County, Development,
Revenue, 5.50%, 10/1/12,
(Callable 10/1/09 @ 101) 2,270 2,416
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 2,270 2,395
Greater Cleveland Regional Transit
Authority, 5.38%, 12/1/11,
(Callable 12/1/08 @ 101) 1,455 1,600
Hamilton County Hospital Facilities
Revenue, 5.25%, 5/15/11, (Callable
11/15/08 @ 101) 2,670 2,879
Hamilton County Sewer System Revenue,
Series A, 5.60%, 12/1/08,
(Callable 12/1/05 @ 102) 1,000 1,099
Hamilton County, Hospital Facilities,
5.20%, 12/1/13,
(Callable 12/1/07 @ 101) 1,000 1,078
Higher Education, Capital Facilities,
Series II-A, 5.25%, 12/1/05 2,350 2,547
Higher Education, Capital Facilities,
5.50%, 12/1/09 4,000 4,505
Higher Education, Capital Facilities
Revenue, Series II-A, 5.50%, 12/1/07 4,695 5,254
Higher Education, Case Western
Reserve, 6.25%, 7/1/14 6,500 7,585
Higher Education, Dennison University
Project, 5.50%, 11/1/12,
(Callable 11/1/11@ 101) 1,000 1,110
Higher Education, University of Dayton
Project, 5.30%, 12/1/12,
(Callable 12/1/07 @ 101) 2,000 2,145
Highway, Series V, GO, 4.80%, 5/15/04 2,000 2,060
Hilliard School District, 5.50%, 12/1/08 2,780 3,139
Hilliard School District, Series B, GO,
5.50%, 12/1/07 1,500 1,681
Housing Authority, 4.63%, 9/1/31,
(Callable 1/1/11 @ 100) 2,460 2,515
Housing Finance Agency, 3.95%, 9/1/08 565 582
Housing Finance Agency, 4.15%, 9/1/09 935 952
Housing Finance Agency, 4.35%, 9/1/10 345 352
Housing Finance Agency, 4.55%, 9/1/11 360 368
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Housing Finance Agency, (AMT),
3.65%, 9/1/11 $ 855 $ 816
Housing Finance Agency, (AMT),
3.30%, 9/1/30 1,250 1,147
Knox County Hospital Facilities
Revenue, 4.70%, 6/1/08 1,150 1,223
Knox County Hospital Facilities
Revenue, 5.00%, 6/1/12 6,250 6,510
Lucas County, 6.65%, 12/1/12 170 174
Lucas County Hospital Revenue, 6.00%,
11/15/04 4,000 4,249
Mental Health Capital Facilities, Series
II-A, 5.00%, 6/1/13 2,135 2,267
Mental Health Facilities, Series II-B,
5.00%, 6/1/08 1,835 1,981
Montgomery County Catholic Health
Initiatives, Series A, 6.00%, 12/1/26 2,750 2,917
Montgomery County Sisters of Charity
Revenue, 6.50%, 5/15/08 225 226
Montgomery County Solid Waste
Revenue, 5.25%, 11/1/04 1,750 1,840
Montgomery County Solid Waste
Revenue, 5.40%, 11/1/08,
(Callable 11/1/05 @ 102) 3,000 3,275
North Olmstead, 6.20%, 12/1/11 3,000 3,482
Public Facilities Revenue, Series II-B,
5.75%, 11/1/04 3,000 3,172
Public Facilities Revenue, Series II-B,
5.75%, 11/1/05,
(Callable 11/1/04 @ 100) 2,000 2,118
Refinance Infrastructure, Series C,
5.00%, 8/1/08 2,410 2,649
Revenue, Major New State Infrastructure,
Series 1, 5.00%, 6/15/06 3,000 3,242
Sidney Construction, 4.90%, 11/1/07,
(Callable 11/1/03 @ 102) 910 934
Solid Waste Revenue, 4.85%, 11/1/22 3,000 3,047
State Schools, 5.00%, 6/15/13 3,000 3,198
Turnpike Revenue, Series A, 5.70%,
2/15/17, (Prerefunded 2/15/06 @ 102) 5,000 5,557
University of Cincinnati, 5.00%, 6/1/10 300 325
University of Cincinnati, GO, 5.50%,
6/1/09 2,000 2,238
Water Development Authority, Pollution
Control Facilities Revenue, 5.25%,
12/1/08, (Callable 12/1/07 @ 101) 1,000 1,109
Water Revenue, 5.30%, 12/1/10,
(Callable 6/1/05 @ 101) 4,000 4,328
Wauseon Village School District, GO, 5.45%,
12/1/14, (Callable 6/1/07 @ 101) 2,000 2,163
West Geauga Local School District, GO,
5.55%, 11/1/05,
(Callable 11/1/04 @ 102) 1,000 1,070
CONTINUED
116
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
West Geauga Local School District, GO,
5.65%, 11/1/06,
(Callable 11/1/04 @ 102) $ 1,000 $ 1,069
Westlake City School District, Series A,
GO, 5.05%, 12/1/04 2,000 2,057
------------
184,689
------------
VIRGIN ISLANDS (0.6%)
Virgin Islands Public Financial
Authority Revenue, 5.13%, 7/1/04 1,000 1,037
------------
TOTAL MUNICIPAL BONDS 185,726
------------
MONEY MARKETS (2.0%)
Federated Ohio Municipal Cash Trust 120,083 120
Touchstone Ohio Money Fund 3,694,344 3,694
------------
TOTAL MONEY MARKETS 3,814
------------
TOTAL INVESTMENTS (COST $182,994)+ - 100.7% 189,540
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% (1,389)
------------
NET ASSETS - 100.0% $ 188,151
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (99.6%)
MICHIGAN (99.6%)
Battle Creek Downtown Development
Authority, 7.60%, 5/1/16,
(Prerefunded 5/1/04 @ 102) $ 2,000 $ 2,134
Battle Creek Downtown Development
Authority, 7.30%, 5/1/10,
(Prerefunded 5/1/04 @ 102) 4,000 4,260
Battle Creek Downtown Development
Authority, Tax Increment Revenue,
6.90%, 5/1/04 2,000 2,078
Berkley School District, GO, 7.00%,
1/1/07 1,300 1,483
Big Rapids Public School District,
5.63%, 5/1/14,
(Prerefunded 5/1/05 @ 101) 1,125 1,220
Building Authority Revenue, Facilities
Program, Series III, 5.00%, 10/15/08 2,000 2,200
Building Authority Revenue, State
Police Communications III, 5.00%,
10/1/04 2,000 2,088
Building Authority Revenue, State
Police Communications III, 5.00%,
10/1/05 1,700 1,825
Cadillac Area Public Schools, UTGO,
7.25%, 5/1/05 300 329
Central Michigan University, 5.00%,
10/1/09 1,605 1,760
Clarkston Michigan Schools, 4.00%,
5/1/12 200 200
Comprehensive Transportation, Series A,
5.25%, 5/15/09 3,000 3,313
Comprehensive Transportation, Series B,
5.25%, 5/15/09 1,390 1,535
Detroit City School District, 5.50%,
5/1/06 1,730 1,889
Detroit Economic Development Corp.,
4.00%, 5/1/06 2,500 2,613
Detroit City School District, Building &
Site Improvements, Series A, 5.00%,
5/1/07 1,000 1,087
Detroit City School District, Building &
Site Improvements, Series A, 5.00%,
5/1/08 1,000 1,091
Detroit City School District, Building &
Site Improvements, Series B, 5.00%,
5/1/09 1,000 1,090
Detroit Water Supply Systems, Series C,
5.00%, 7/1/07 2,000 2,181
Detroit, GO, 6.00%, 4/1/06 750 829
Dexter Community School District, GO,
6.25%, 5/1/07 1,730 1,954
Farmington Hills Economic Development
Corp. Revenue, Botsford Continuing
Care, Series A, 5.10%, 2/15/04 445 455
CONTINUED
117
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Farmington Hills Economic
Development Corp. Revenue, Botsford
Continuing Care, Series A, 5.20%,
2/15/05 $ 470 $ 495
Ferndale, UTGO, 4.50%, 4/1/10 1,190 1,249
Frankenmuth School District, UTGO,
5.50%, 5/1/04 250 258
Frankenmuth School District, UTGO,
5.50%, 5/1/05 100 107
Frankenmuth School District, UTGO,
5.50%, 5/1/06 125 137
Frankenmuth School District, UTGO,
5.50%, 5/1/07 410 454
Grand Rapids & Kent County Joint
Building, GO, 5.50%, 10/1/06 505 558
Grand Rapids & Kent County Joint
Building, GO, 5.50%, 10/1/09 605 682
Grand Rapids & Kent County Joint
Building, UTGO, 5.50%, 10/1/07 535 598
Grand Rapids Charter Township, Porter
Hills Obligated Group, 4.25%, 7/1/04 210 214
Grand Rapids Charter Township, Porter
Hills Obligated Group, 4.35%, 7/1/05 200 209
Greater Detroit Resource Recovery
Authority, 6.25%, 12/13/06 2,500 2,821
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/05 590 637
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/06 725 795
Higher Education Facilities Authority
Revenue, Hope College Project, 4.60%,
10/1/08 320 337
Higher Education Facility Authority -
Thomas M. Cooley Law School,
4.75%, 5/1/07 1,265 1,333
Higher Education Student Loan Authority
Revenue, (AMT), 5.00%, 3/1/07 2,525 2,672
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.60%, 9/1/08 1,000 1,058
Higher Education, Kalamazoo College,
5.25%, 12/1/03 570 578
Higher Education, Kalamazoo College,
5.25%, 12/1/04 655 688
Hospital Finance Authority Revenue,
4.80%, 11/1/17, Refunding Hospital
Charity Obligation D,
(Prerefunded 11/1/4 @ 100) 1,755 1,819
Hospital Finance Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/05 1,055 1,120
Hospital Finance Authority Revenue, St.
John's Hospital & Medical Center,
5.00%, 5/15/06 1,450 1,570
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Hospital Finance Authority, Bay
Medical Center, Series A,
5.38%, 7/1/06 $ 1,855 $ 2,020
Hospital Finance Authority, McLaren
Obligated Group, Series A,
5.75%, 10/15/03 2,000 2,016
Hospital Finance Authority, St. John
Hospital & Medical Center,
5.00%, 5/15/05 1,000 1,065
Hospital Financial Authority Revenue,
7.50%, 10/1/27,
(Prerefunded 10/1/05 @ 100) 1,000 1,127
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
3.50%, 3/1/06 200 205
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
3.85%, 3/1/07 200 204
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A, 4.15%,
3/1/08 300 307
Hospital Financial Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/06 735 788
Housing Development Authority,
(AMT), 3.85%, 6/1/04 810 823
Housing Development Authority,
(AMT), Series B, 3.25%, 12/1/05 70 71
Housing Development Authority,
(AMT), Series B, 3.55%, 12/1/06 175 179
Housing Development Authority,
(AMT), Series B, 3.85%, 12/1/07 215 221
Housing Development Authority,
(AMT), Series B, 4.13%, 12/1/08 305 314
Housing Development Authority,
(AMT), Series B, 4.35%, 12/1/09 355 364
Housing Development Authority,
(AMT), Series B, 4.55%, 12/1/10 455 468
Housing Development Authority,
(AMT), Series B, 4.65%, 12/1/11 485 500
Housing Development Authority, Hunt
Club Apartments, 0.95%, 7/15/35 (d) 500 500
Housing Development Authority, Single
Family, (AMT), 3.70%, 12/1/03 800 805
Housing Development Authority, Single
Family, (AMT), 3.85%, 12/1/04 830 849
Jackson County Economic Development
Corp., Vista Grande Villa,
0.90%, 11/1/31 (d) 3,500 3,500
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.50%, 5/15/08 750 834
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.25%, 5/15/05 1,000 1,063
CONTINUED
118
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Kenowa Hills Public Schools, UTGO,
5.50%, 5/1/06 $ 1,000 $ 1,092
Kenowa Hills Public Schools, UTGO,
5.50%, 5/1/05 1,295 1,385
Kent County Airport Facility, Kent
County International Airport, (AMT),
5.25%, 1/1/04 500 508
Kent County Airport Facility, Kent
County International Airport, (AMT),
4.30%, 1/1/05 645 665
Kent County Airport Facility, Kent
County International Airport, (AMT),
5.30%, 1/1/05 505 528
Kent County Airport Facility, Kent County
International Airport, (AMT), 5.50%,
1/1/07, (Prerefunded 1/1/5 @ 102) 930 1,001
Kent, Hospital Finance Authority
Revenue, Spectrum Health,
5.25%, 1/15/08 430 465
Kent, Hospital Finance Authority,
Butterworth Hospital, 4.90%, 1/15/05 1,150 1,200
Municipal Bond Authority Revenue,
5.00%, 12/1/05 2,000 2,165
Municipal Bond Authority Revenue,
Series A, 5.25%, 12/1/07 1,000 1,108
Municipal Bond Authority, Pooled
Projects, Series B, 5.10%, 10/1/04 1,000 1,048
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/06 1,130 1,207
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/08 1,000 1,077
Muskegon Heights Water System, Series
A, 5.25%, 11/1/06 335 368
Novi Community School District,
Building & Site Improvements, 4.13%,
5/1/08 1,000 1,057
Novi Community School District,
Building & Site Improvements,
5.00%, 10/1/08 2,320 2,556
Oakland County Economic Revenue,
6.38%, 11/1/14,
(Prerefunded 11/1/4 @ 100) 2,000 2,133
Oxford Area Community School, GO,
6.00%, 5/1/05 1,100 1,184
South Central Power Agency, Power
Supply System Revenue, 5.80%,
11/1/05 2,000 2,185
South Lyon Community Schools,
5.25%, 5/1/07 690 758
South Macomb Disposal Authority
Revenue, 5.00%, 9/1/08 1,115 1,226
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
South Redford School District, GO,
5.25%, 5/1/09,
(Prerefunded 5/1/7 @ 100) $ 1,575 $ 1,735
Sterling Heights, 3.25%, 10/1/03 580 582
Sterling Heights, 4.00%, 10/1/04 890 919
Sterling Heights, 4.00%, 10/1/05 670 705
Strategic Fund, Detroit Symphony,
Series A, 0.90%, 6/1/31 (d) 5,255 5,255
Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07 615 652
Three Rivers Community Schools,
6.00%, 5/1/23,
(Prerefunded 5/1/06 @ 101) 970 1,084
Traverse City Area Public Schools,
7.25%, 5/1/05 950 1,042
Trunk Line, 5.00%, 10/1/07 700 767
Trunk Line, Series A, 5.25%, 11/1/09 1,000 1,109
Underground Storage, Tank Financial
Assurance Authority, Series I,
6.00%, 5/1/06 2,270 2,508
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 2,000 2,201
Warren Building Authority,
3.70%, 11/1/09 225 231
Warren Consolidated School District,
5.00%, 5/1/07 3,890 4,229
Washtenaw Community College,
4.00%, 4/1/07 2,501 2,494
Wayne Charter, 5.25%, 12/1/05 1,035 1,110
Wayne Charter Airport Revenue, Series
D, 5.25%, 12/1/06 2,000 2,168
Wayne County Community College,
5.25%, 7/1/09 1,000 1,107
Whitmore Lake Public School District,
5.00%, 5/1/09 1,201 1,177
------------
132,217
------------
TOTAL MUNICIPAL BONDS 132,217
------------
MONEY MARKETS (2.2%)
AIM Tax Free Money Market Fund 167 --#
Dreyfus Tax Exempt Money
Market Fund 100 --#
Federated Tax Exempt Money
Market Fund 2,980,876 2,981
Merrill Lynch Institutional Tax
Exempt Fund 1,146 1
------------
TOTAL MONEY MARKETS 2,982
------------
TOTAL INVESTMENTS (COST $132,325)+ - 101.8% 135,199
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.8)% (2,349)
------------
NET ASSETS - 100.0% $ 132,850
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
119
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
JULY 31, 2003
- --------------------------------------------------------------------------------
* Non-income producing security.
** Effective yield at purchase.
# Market value is less than five hundred dollars.
+ Aggregate cost for federal income tax purposes differs from cost for
financial reporting purposes by less than 2% of net assets and is therefore
considered substantially the same.
++ Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of the losses recognized for
financial reporting purposes in excess of federal income tax reporting.
(a) Part of this security has been deposited as initial margin on open futures
contracts.
(b) Affiliate.
(c) Dollar amount indicated represents expected per share annual dividend.
(d) Variable rate security. Rate presented represents rate in effect at July
31, 2003. Maturity date represents actual maturity date.
(e) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
(f) Part of this security has been deposited as collateral for TBA security.
The following abbreviations are used in these Schedules of Portfolio
Investments:
ADR - American Depositary Receipt
AMT - Alternative Minimun Tax Paper
CBTCS - Convertible Bond Transferable Custodial Security
ETM - Escrowed to Maturity
GO - General Obligation
LLC - Limited Liability Company
REITS - Real Estate Investment Trust
SPDR - Standard & Poor's Depositary Receipt
TBA - To be announced.
UTGO - Unlimited Tax General Obligation
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
FIFTH THIRD FUNDS APPRECIATION DEPRECIATION (DEPRECIATION)
---------------- ------------ ------------ -------------
Small Cap Growth Fund $128,626 $(12,747) $115,879
Mid Cap Growth Fund 69,673 (35,639) 34,034
Large Cap Opportunity Fund 2,242 (1,757) 485
Quality Growth Fund 147,472 (71,945) 75,527
Large Cap Core Fund 39,189 (34,482) 4,707
Equity Index Fund 262,546 (73,671) 188,875
Balanced Fund 15,380 (7,534) 7,846
Micro Cap Value Fund 37,221 (6,370) 30,851
Small Cap Value Fund 7,427 (397) 7,030
Multi Cap Value Fund 44,703 (8,139) 36,564
Disciplined Large Cap Value Fund 49,263 (4,130) 45,133
LifeModel Aggressive Fund 7,202 (209) 6,993
LifeModel Moderately Aggressive Fund 12,574 (771) 11,803
LifeModel Moderate Fund 10,773 (1,228) 9,545
LifeModel Moderately Conservative Fund 4,986 (861) 4,125
LifeModel Conservative Fund 1,709 (517) 1,192
Strategic Income Fund 4,513 (2,756) 1,757
Technology Fund 9,950 (1,341) 8,609
Worldwide Fund 2,037 (485) 1,552
International Equity Fund 12,581 (31,947) (19,366)
International GDP Fund 19,941 (70,739) (50,798)
Bond Fund 8,250 (7,550) 700
Intermediate Bond Fund 17,860 (17,718) 142
Short Term Bond Fund 4,512 (8,157) (3,645)
U.S. Government Bond Fund 956 (1,286) (330)
Municipal Bond Fund 6,788 -- 6,788
Intermediate Municipal Bond Fund 16,019 (1,560) 14,459
Ohio Municipal Bond Fund 7,330 (546) 6,784
Michigan Municipal Bond Fund 3,440 (552) 2,888
SEE NOTES TO FINANCIAL STATEMENTS
120
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
OPEN FUTURES CONTRACTS AS OF JULY 31, 2003:
(AMOUNTS IN THOUSANDS EXCEPT CONTRACT AMOUNT)
NUMBER OF
CONTRACTS
Small Cap Growth Fund 18
----------
Large Cap Core Fund 6
----------
Equity Index Fund 58
----------
International Equity Fund 80
32
23
149
21
25
----------
330
----------
UNREALIZED
NOTIONAL APPRECIATION/ MARKET
CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE
- ---------------------------------- ----------- ------------- ------------
Russell 2000, 9/18/03 $ 4,065 $ 220 $ 4,285
---------- ------------ ------------
Standard & Poor's 500, 9/19/03 1,495 (11) 1,484
---------- ------------ ------------
Standard & Poor's 500, 9/19/03 14,339 6 14,345
---------- ------------ ------------
Long, CAC40 10, 9/30/03 2,906 (6) 2,900
Long, IBEX 35, 8/14/03 2,475 71 2,546
Long, MIB 30, 9/19/03 3,481 (174) 3,307
Long, Euro Stoxx 50, 9/19/03 4,255 (39) 4,216
Long, FTSE 100, 9/19/03 1,484 (87) 1,397
Long, TOPIX, 9/11/03 1,864 83 1,947
---------- ------------ ------------
$ 16,465 $ (152) $ 16,313
---------- ------------ ------------
International Equity Fund Foreign Currency Contracts as of July 31, 2003:
CONTRACT CURRENT
AMOUNT CONTRACT VALUE UNREALIZED
DELIVERY (LOCAL VALUE U.S. U.S. APPRECIATION/
DATE CURRENCY) DOLLAR DOLLAR (DEPRECIATION)
--------- ---------- ------------ ----------- --------------
AUSTRALIAN DOLLAR
- ------------------------------------------------
Short Contracts
9/10/03 185 $ 121 $ 119 $ 2
9/10/03 2,100 1,383 1,355 28
9/10/03 767 506 495 11
Long Contracts
9/10/03 2,905 1,893 1,875 (18)
9/10/03 109 72 70 (2)
9/10/03 38 25 24 (1)
BRITISH POUND STERLING
- ------------------------------------------------
Short Contracts
9/10/03 198 323 317 6
9/10/03 6,024 9,908 9,657 251
9/10/03 25 41 39 2
9/10/03 2,037 3,345 3,265 80
Long Contracts
9/10/03 2,951 4,865 4,730 (135)
9/10/03 4,297 7,071 6,888 (183)
9/10/03 725 1,192 1,161 (31)
9/10/03 783 1,289 1,256 (33)
9/10/03 396 659 635 (24)
EURO
- ------------------------------------------------
Short Contracts
9/10/03 8,202 9,596 9,222 374
9/10/03 574 670 646 24
9/10/03 720 838 809 29
9/10/03 550 645 618 27
9/10/03 894 1,027 1,004 23
9/10/03 700 803 787 16
9/10/03 2,145 2,469 2,411 58
Long Contracts
9/10/03 7,905 9,232 8,886 (346)
9/10/03 2,676 3,123 3,008 (115)
9/10/03 2,765 3,225 3,108 (117)
9/10/03 1,925 2,248 2,164 (84)
9/10/03 2,091 2,438 2,350 (88)
9/10/03 663 774 745 (29)
9/10/03 81 95 92 (3)
9/10/03 873 1,028 981 (47)
9/10/03 929 1,092 1,044 (48)
9/10/03 643 751 722 (29)
9/10/03 1,445 1,647 1,624 (23)
9/10/03 666 754 748 (6)
9/10/03 1,450 1,660 1,632 (28)
9/10/03 1,091 1,225 1,226 1
JAPANESE YEN
- ------------------------------------------------
Short Contracts
9/10/03 272,177 2,315 2,261 54
9/10/03 568,330 4,831 4,722 109
9/10/03 523,470 4,451 4,349 102
11/04/03 365,870 3,047 3,045 2
Long Contracts
9/10/03 1,202,877 10,233 9,994 (239)
9/10/03 269,039 2,288 2,235 (53)
9/10/03 14,000 119 116 (3)
9/10/03 9,735 825 809 (16)
SEE NOTES TO FINANCIAL STATEMENTS
121
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
The investment concentrations for the Equity Funds as a
percentage of net assets, by industry, as of July 31, 2003, were as follows:
SMALL CAP MID CAP LARGE CAP QUALITY LARGE CAP
GROWTH GROWTH OPPORTUNITY GROWTH CORE
FUND FUND FUND FUND FUND
----- ------ ----- ----- -----
Advertising 0.7% 1.6% -- 1.1% 0.3%
Aerospace/Defense 1.4% 2.3% 1.3% 2.1% 1.0%
Agriculture -- -- -- -- 0.9%
Airlines -- -- -- -- 0.2%
Apparel 0.7% 1.1% -- -- 0.3%
Auto Manufacturers 0.8% -- -- -- 0.6%
Auto Parts & Equipment 0.3% 2.2% -- -- 0.3%
Banks 6.3% 3.4% 3.2% 10.9% 7.6%
Beverages -- -- 3.0% -- 2.4%
Biotechnology 1.4% 2.7% 3.2% 6.2% 1.6%
Building Materials -- -- -- -- 0.3%
Cash Equivalents 15.2% 18.7% 7.7% 3.0% 1.4%
Chemicals 0.6% -- 0.9% 1.4% 1.9%
Commercial Services 5.2% 4.1% 1.6% -- 1.4%
Computers 5.0% 3.9% 9.1% 1.7% 4.4%
Cosmetics/Personal Care -- -- -- -- 2.0%
Distribution/Wholesale 0.4% 1.7% -- -- --
Diversified Financial Services 0.6% 6.9% 3.6% 2.1% 8.1%
Electric -- -- -- -- 2.7%
Electrical Components
& Equipment 1.3% -- -- 1.4% 0.3%
Electronics 5.9% 6.1% 2.4% 7.6% 2.0%
Engineering & Construction 0.9% -- -- -- --
Entertainment 0.5% -- -- -- --
Environmental Control 1.7% -- -- -- 0.2%
Food -- -- 1.1% 2.4% 1.4%
Food Service -- -- -- -- --
Forest Products & Paper -- -- -- -- 0.5%
Gas 1.1% -- -- -- 0.2%
Hand/Machine Tools -- -- -- -- 0.3%
Healthcare--Products 7.0% 5.8% 4.2% 1.3% 3.6%
Healthcare--Services 3.3% 1.6% 3.3% 1.9% 1.6%
Holding Companies--Diversified -- -- -- -- --
Home Builders 0.6% -- -- -- --
Home Furnishings 1.3% -- -- -- 0.2%
Household Products/Wares 1.6% -- 1.1% 0.8% 0.9%
Housewares -- -- -- -- 0.3%
Insurance 2.0% -- 7.5% 5.7% 5.0%
Internet 2.8% -- -- -- 0.2%
Investment Companies 0.7% -- -- -- --
Iron/Steel -- -- -- -- --
Leisure Time 0.5% -- -- 1.1% --
Lodging 0.7% -- -- -- 0.3%
Machinery--Construction
& Mining -- -- -- -- --
Machinery--Diversified 1.4% -- -- -- --
Media 1.1% -- 4.4% 4.6% 4.6%
Metal Fabricate/Hardware -- -- -- -- --
Mining -- -- -- -- 0.3%
Miscellaneous Manufacturing 0.8% 3.6% 5.9% 5.3% 5.2%
Office/Business Equipment -- -- -- -- 0.3%
Oil & Gas 2.9% -- 2.6% 2.0% 5.4%
Oil & Gas Services 0.8% 2.5% -- 1.2% 0.5%
Packaging & Containers -- -- -- -- 0.2%
Pharmaceuticals 9.1% 6.6% 8.3% 4.7% 7.7%
Pipelines -- -- -- -- --
RealEstate -- -- -- -- --
REITS -- -- -- -- --
Retail 5.7% 12.3% 6.1% 13.1% 6.4%
Savings & Loans 2.4% -- -- -- 0.6%
Semiconductors 8.5% 16.3% 6.9% 14.6% 4.3%
Software 5.9% 9.8% 13.5% 4.5% 4.7%
Sovereign 0.5% -- -- -- --
Telecommunications 3.4% 0.8% 3.1% -- 4.5%
Textiles -- 0.8% -- 1.6% --
Toys/Games/Hobbies 0.8% 1.0% -- -- 0.2%
Transportation 0.9% -- -- -- 1.0%
Water -- -- -- -- --
DISCIPLINED
EQUITY MICRO CAP SMALL CAP MULTI CAP LARGE CAP
INDEX VALUE VALUE VALUE VALUE
FUND FUND FUND FUND FUND
------ -------- -------- --------- ---------
Advertising 0.2% 0.2% -- -- --
Aerospace/Defense 1.5% -- 1.5% 1.5% 2.2%
Agriculture 1.0% -- -- -- --
Airlines 0.2% 0.2% 1.0% -- --
Apparel 0.3% 7.9% 2.2% -- --
Auto Manufacturers 0.6% -- -- -- 1.8%
Auto Parts & Equipment 0.2% 1.1% 1.6% 1.8% --
Banks 6.9% -- 5.5% 2.1% 8.3%
Beverages 2.7% -- 2.6% -- --
Biotechnology 1.2% -- -- 1.8% --
Building Materials 0.2% 0.4% 1.3% 0.8% 1.6%
Cash Equivalents 4.4% 12.0% 8.8% 17.4% 7.6%
Chemicals 1.5% 1.5% 4.4% -- 3.0%
Commercial Services 1.0% 5.6% 1.7% -- --
Computers 4.3% 5.1% 2.5% 5.2% 3.2%
Cosmetics/Personal Care 2.3% -- -- 0.9% --
Distribution/Wholesale 0.1% 2.7% 1.4% -- --
Diversified Financial Services 7.8% 1.5% 2.6% 6.6% 7.6%
Electric 2.4% -- 3.9% 1.5% 4.0%
Electrical Components
& Equipment 0.3% 2.0% 0.6% 0.5% --
Electronics 2.0% 3.7% 2.3% 3.1% 2.7%
Engineering & Construction -- 0.7% 0.5% -- --
Entertainment 0.1% 1.4% -- -- --
Environmental Control 0.2% 1.0% 0.9% 0.9% --
Food 1.8% 0.4% 4.2% 3.8% 2.6%
Food Service -- -- -- -- --
Forest Products & Paper 0.5% -- -- 0.5% 3.8%
Gas 0.1% -- 1.9% -- --
Hand/Machine Tools 0.1% -- -- 1.2% --
Healthcare--Products 3.5% 4.4% 1.5% 1.6% --
Healthcare--Services 1.1% 1.9% 4.6% 2.1% 1.2%
Holding Companies--Diversified -- -- -- -- --
Home Builders 0.1% -- -- -- --
Home Furnishings 0.1% 2.5% 1.3% 2.0% 0.9%
Household Products/Wares 0.3% -- 0.9% -- --
Housewares 0.1% 0.8% -- 1.1% 0.8%
Insurance 4.9% 0.2% 5.2% 2.4% 5.7%
Internet 0.7% 4.9% -- -- --
Investment Companies -- 1.9% -- 4.3% --
Iron/Steel 0.1% 1.3% -- 0.1% --
Leisure Time 0.4% 1.4% -- 1.0% 4.4%
Lodging 0.3% 0.6% 0.6% 0.6% --
Machinery--Construction
& Mining 0.2% -- -- -- 4.2%
Machinery--Diversified 0.3% 0.9% 2.1% 0.8% --
Media 3.8% -- 0.8% 3.3% 2.1%
Metal Fabricate/Hardware -- 0.6% 1.1% -- --
Mining 0.5% 2.7% 3.8% -- --
Miscellaneous Manufacturing 5.1% 2.4% 1.8% 2.6% 2.1%
Office/Business Equipment 0.2% -- -- -- --
Oil & Gas 4.8% 2.6% 1.9% 6.1% 8.6%
Oil & Gas Services 0.6% 1.4% 1.9% 1.2% 1.7%
Packaging & Containers 0.1% -- -- -- --
Pharmaceuticals 7.9% 2.7% -- 4.1% 5.5%
Pipelines 0.2% 0.6% -- -- --
RealEstate -- -- -- -- --
REITS 0.4% 1.4% 5.4% 1.1% 0.5%
Retail 7.2% 5.8% 6.3% 9.0% 7.2%
Savings & Loans 0.5% -- 4.2% -- --
Semiconductors 3.6% 1.2% 3.4% 2.3% 2.4%
Software 5.0% 1.0% 0.1% 0.9% --
Sovereign -- -- -- -- --
Telecommunications 4.5% 7.3% 0.4% 8.0% 5.4%
Textiles 0.1% 0.3% -- -- --
Toys/Games/Hobbies 0.1% -- -- -- --
Transportation 1.4% 2.1% 2.2% 2.7% --
Water -- -- -- -- --
LIFEMODEL LIFEMODEL
LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUNDSM FUNDSM FUNDSM FUNDSM FUNDSM
------ ------ ------ ------ ------
Advertising -- -- -- -- --
Aerospace/Defense -- -- -- -- --
Agriculture -- -- -- -- --
Airlines -- -- -- -- --
Apparel -- -- -- -- --
Auto Manufacturers -- -- -- -- --
Auto Parts & Equipment -- -- -- -- --
Banks -- -- -- -- --
Beverages -- -- -- -- --
Biotechnology -- -- -- -- --
Building Materials -- -- -- -- --
Cash Equivalents -- -- -- -- --
Chemicals -- -- -- -- --
Commercial Services -- -- -- -- --
Computers -- -- -- -- --
Cosmetics/Personal Care -- -- -- -- --
Distribution/Wholesale -- -- -- -- --
Diversified Financial Services -- -- -- -- --
Electric -- -- -- -- --
Electrical Components
& Equipment -- -- -- -- --
Electronics -- -- -- -- --
Engineering & Construction -- -- -- -- --
Entertainment -- -- -- -- --
Environmental Control -- -- -- -- --
Food -- -- -- -- --
Food Service -- -- -- -- --
Forest Products & Paper -- -- -- -- --
Gas -- -- -- -- --
Hand/Machine Tools -- -- -- -- --
Healthcare--Products -- -- -- -- --
Healthcare--Services -- -- -- -- --
Holding Companies--Diversified -- -- -- -- --
Home Builders -- -- -- -- --
Home Furnishings -- -- -- -- --
Household Products/Wares -- -- -- -- --
Housewares -- -- -- -- --
Insurance -- -- -- -- --
Internet -- -- -- -- --
Investment Companies 99.7% 99.7% 99.6% 99.7% 100.0%
Iron/Steel -- -- -- -- --
Leisure Time -- -- -- -- --
Lodging -- -- -- -- --
Machinery--Construction
& Mining -- -- -- -- --
Machinery--Diversified -- -- -- -- --
Media -- -- -- -- --
Metal Fabricate/Hardware -- -- -- -- --
Mining -- -- -- -- --
Miscellaneous Manufacturing -- -- -- -- --
Office/Business Equipment -- -- -- -- --
Oil & Gas -- -- -- -- --
Oil & Gas Services -- -- -- -- --
Packaging & Containers -- -- -- -- --
Pharmaceuticals -- -- -- -- --
Pipelines -- -- -- -- --
RealEstate -- -- -- -- --
REITS -- -- -- -- --
Retail -- -- -- -- --
Savings & Loans -- -- -- -- --
Semiconductors -- -- -- -- --
Software -- -- -- -- --
Sovereign -- -- -- -- --
Telecommunications -- -- -- -- --
Textiles -- -- -- -- --
Toys/Games/Hobbies -- -- -- -- --
Transportation -- -- -- -- --
Water -- -- -- -- --
INTERNATIONAL INTERNATIONAL
TECHNOLOGY WORLDWIDE EQUITY GDP
FUND FUND FUND FUND
---- ---- ---- ----
Advertising -- -- 0.1% 0.1%
Aerospace/Defense -- -- 0.5% 0.2%
Agriculture -- -- 0.7% 0.7%
Airlines -- -- 0.4% 0.2%
Apparel -- -- 0.1% 0.1%
Auto Manufacturers -- -- 3.5% 4.5%
Auto Parts & Equipment -- -- 0.6% 0.7%
Banks -- -- 14.5% 16.9%
Beverages -- -- 1.7% 1.1%
Biotechnology -- -- -- --
Building Materials -- -- 1.1% 1.1%
Cash Equivalents 30.9% -- 8.7% 7.0%
Chemicals -- -- 2.2% 2.5%
Commercial Services 0.2% -- 1.4% 0.5%
Computers 13.3% -- 0.5% 0.2%
Cosmetics/Personal Care -- -- 1.1% 1.1%
Distribution/Wholesale -- -- 0.7% 0.7%
Diversified Financial Services -- -- 1.7% 1.2%
Electric -- -- 3.6% 3.8%
Electrical Components
& Equipment -- -- 1.3% 1.2%
Electronics 5.7% -- 2.0% 1.8%
Engineering & Construction -- -- 1.2% 1.0%
Entertainment -- -- 0.3% --
Environmental Control -- -- -- --
Food -- -- 4.7% 4.2%
Food Service -- -- 0.2% 0.2%
Forest Products & Paper -- -- 0.6% 0.5%
Gas -- -- 0.9% 0.6%
Hand/Machine Tools -- -- 0.5% 0.7%
Healthcare--Products -- -- 0.5% 0.5%
Healthcare--Services -- -- -- --
Holding Companies--Diversified -- -- 1.1% 0.8%
Home Builders -- -- 0.2% 0.1%
Home Furnishings -- -- 1.2% 1.3%
Household Products/Wares -- -- 0.3% 0.1%
Housewares -- -- 0.1% --
Insurance -- -- 3.5% 4.3%
Internet 12.8% -- 0.2% 0.1%
Investment Companies -- 100.0% 0.1% 0.1%
Iron/Steel -- -- 0.6% 0.5%
Leisure Time -- -- 0.2% --
Lodging -- -- 0.3% 0.2%
Machinery--Construction
& Mining -- -- 0.2% 0.2%
Machinery--Diversified -- -- 0.2% 0.1%
Media 3.4% -- 1.4% 1.3%
Metal Fabricate/Hardware -- -- 0.2% 0.1%
Mining -- -- 1.3% 1.3%
Miscellaneous Manufacturing -- -- 1.4% 2.2%
Office/Business Equipment -- -- 1.1% 1.2%
Oil & Gas -- -- 7.7% 9.0%
Oil & Gas Services -- -- -- --
Packaging & Containers -- -- 0.1% 0.1%
Pharmaceuticals -- -- 7.9% 8.3%
Pipelines -- -- -- --
RealEstate -- -- 1.5% 0.9%
REITS -- -- -- --
Retail -- -- 1.9% 1.2%
Savings & Loans -- -- -- --
Semiconductors 38.2% -- 0.5% 0.8%
Software 8.2% -- 0.4% 0.5%
Sovereign -- -- -- --
Telecommunications 15.7% -- 9.1% 10.3%
Textiles -- -- 0.2% 0.1%
Toys/Games/Hobbies -- -- 0.2% 0.1%
Transportation -- -- 1.5% 1.1%
Water -- -- 0.2% 0.3%
SEE NOTES TO FINANCIAL STATEMENTS
122-123 Spread
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
The investment concentrations for the Balanced Fund and Strategic Income Fund as
a percentage of net assets, by industry, as of July 31, 2003, were as follows:
STRATEGIC
BALANCED INCOME
FUND FUND
-------- -----------
Advertising 2.0% --
Aerospace/Defense 0.7% --
Auto Manufacturers 0.3% 0.2%
Automobile ABS 1.2% --
Automotive -- 0.2%
Banks 5.2% 14.6%
Beverages 1.5% --
Cash Equivalents 7.1% 0.9%
Chemicals 2.9% 0.2%
Closed-end Funds -- 12.7%
Commercial MBS 1.1% --
Commercial Services 0.8% --
Computers 1.3% --
Cosmetics/Personal Care 1.3% 0.8%
Credit Card ABS 1.2% 0.3%
Distribution/Wholesale 1.9% --
Diversified Financial Services 11.2% 20.4%
Electric -- 6.8%
Electrical Components & Equipment 1.6% --
Electronics 2.1% --
Entertainment -- 0.7%
Financial Services -- 1.6%
Food -- 4.2%
Gas -- 0.9%
STRATEGIC
BALANCED INCOME
FUND FUND
-------- -----------
Healthcare-Products 3.9% --
Holding Companies-Diversified -- 0.7%
Home Furnishings -- 0.2%
Household Products/Wares 1.8% --
Insurance 4.6% 6.1%
Media 1.3% --
Mining 0.7% --
Metal Fabricate/Hardware -- 0.1%
Miscellaneous Manufacturing 3.2% 0.3%
Oil & Gas 4.6% --
Oil & Gas Services 0.4% --
Other ABS 0.9% --
Pharmaceuticals 4.7% 1.5%
Pipelines -- 0.2%
REITS -- 13.9%
Retail 7.6% 2.3%
Savings & Loans 0.3% 2.2%
Semiconductors 2.9% --
Software 4.0% --
Sovereign 20.0% 4.2%
Telecommunications 1.6% 3.3%
TRAINS 1.2% 0.4%
Transportation 0.7% 0.4%
Utilities 0.8% --
The investment concentrations for the Bond Funds as a percentage of net assets,
by industry, as of July 31, 2003, were as follows:
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT
BOND BOND BOND BOND
FUND FUND FUND FUND
-------- ------------ ---------- ----------
Aerospace/Defense 1.2% -- -- --
Auto Manufacturers 0.5% 0.2% -- --
Automobile ABS 4.0% 3.9% 10.7% --
Banks 12.7% 13.0% 21.3% --
Beverages 3.7% -- -- --
Cash Equivalents 4.8% 14.4% 8.1% 2.0%
Chemicals -- 0.8% 0.3% --
Commercial MBS 1.2% 1.5% -- --
Commercial Services 0.5% 0.7% 0.6% --
Computers -- 0.4% 1.0% --
Cosmetics/Personal Care -- 0.6% -- --
Credit Card ABS 6.4% 0.4% 4.3% --
Diversified Financial Services 21.4% 33.4% 7.5% --
Electric -- 0.9% -- --
Food 0.6% 3.7% 1.7% --
General Obligation 0.7% -- -- --
Insurance 0.6% -- 3.0% --
Media -- 0.7% -- --
Oil & Gas 0.7% 2.0% 1.3% --
Other ABS -- 1.0% 1.0% --
Pharmaceuticals -- 0.6% -- --
Regional (state/provnc) -- -- 0.9% --
Retail -- 1.4% -- --
Savings & Loans -- 1.2% 1.0% --
Sovereign 57.1% 31.5% 41.1% 114.2%
Telecommunications 4.6% 4.8% -- --
TRAINS 0.5% -- -- --
Transportation -- 0.6% -- --
Utilities 1.2% -- -- --
WL Collateral CMO -- 0.6% -- --
Miscellaneous Manufacturing -- 0.6% -- --
SEE NOTES TO FINANCIAL STATEMENTS
124
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
- -------------------------------------------------------------------------------------------
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of July 31, 2003, were as follows:
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
---------- ----------- --------- ----------
Airport 10.2% 7.1% -- 4.5%
Cash Equivalents 2.8% 2.9% 2.0% 2.2%
Development 1.7% 1.6% 3.1% 6.2%
Education 11.0% 2.6% 4.1% --
Facilities -- 6.5% 12.4% 16.4%
General 7.7% 4.6% 3.0% 5.1%
General Obligation 16.1% 21.0% 16.2% 8.9%
Higher Education 3.5% 2.1% 9.5% 5.4%
Housing 1.6% 1.6% 2.2% --
Medical 4.7% 4.9% 16.9% 14.1%
Multifamily Housing -- -- -- 0.4%
Nursing Homes -- -- -- 1.0%
Pollution -- 1.2% 7.2% 3.0%
Power 1.5% 5.2% 6.8% 1.6%
School District 21.1% 15.8% 7.8% 19.7%
Single Family Housing 0.9% 2.0% 1.3% 3.5%
Student Loan 4.1% 3.1% -- 2.8%
Transportation 10.2% 7.8% 5.0% 5.1%
Utilities 1.7% 7.1% 1.7% --
Water -- 3.1% 1.5% 1.9%
SEE NOTES TO FINANCIAL STATEMENTS
125
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP LARGE CAP QUALITY
GROWTH GROWTH OPPORTUNITY GROWTH
FUND FUND FUND FUND
---------- ---------- ----------- ------------
Assets:
Investments, at cost $ 354,876 $ 403,119 $ 24,132 $ 986,545
Net unrealized appreciation 116,238 34,737 833 75,573
---------- ---------- ----------- ------------
Investments, at value 471,114 437,856 24,965 1,062,118
Repurchase agreements, at cost -- -- -- --
---------- ---------- ----------- ------------
Total Investments 471,114 437,856 24,965 1,062,118
Cash -- -- -- --^
Interest, dividends and other receivables 203 29 11 532
Receivable for investments sold 2,792 -- -- --
Receivable for Fund shares sold 10 27 --^ 108
Receivable for variation margin on futures contracts 42 -- -- --
Receivable from Advisor and affiliates -- -- --^ --
Prepaid expenses and other assets 15 30 26 38
---------- ---------- ----------- ------------
Total Assets 474,176 437,942 25,002 1,062,796
---------- ---------- ----------- ------------
Liabilities:
Payable to Custodian -- -- -- --
Payable for investments purchased 4,438 -- -- --
Payable for securities loaned 58,723 59,223 957 24,295
Payable for Fund shares redeemed -- 15 20 156
Options written, at value (premiums received $3) 3 -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 250 261 17 711
Distribution and administrative services fees 5 14 3 69
Other 40 29 5 71
---------- ---------- ----------- ------------
Total Liabilities 63,459 59,542 1,002 25,302
---------- ---------- ----------- ------------
Net Assets:
Paid-in Capital 297,447 387,764 42,497 1,108,336
Accumulated net investment income (loss) (16) -- -- --
Accumulated net realized gain/(loss) from
investment transactions and futures (3,172) (44,101) (19,330) (146,415)
Net unrealized appreciation on investments and futures 116,458 34,737 833 75,573
---------- ---------- ----------- ------------
Net Assets $ 410,717 $ 378,400 $ 24,000 $ 1,037,494
========== ========== =========== ============
Market value of securities loaned $ 56,300 $ 56,779 $ 920 $ 23,292
========== ========== =========== ============
Net Assets:
Institutional Shares $ 391,934 $ 335,285 $ 14,659 $ 795,988
Class A Shares 16,471 35,504 8,264 211,221
Class B Shares 1,407 5,846 350 20,700
Class C Shares 436 1,525 727 8,380
Advisor Shares 469 240 NA 1,205
---------- ---------- ----------- ------------
Total $ 410,717 $ 378,400 $ 24,000 $ 1,037,494
========== ========== =========== ============
Shares of Beneficial Interest Outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 24,653 27,905 807 55,946
Class A Shares 1,052 3,003 461 15,049
Class B Shares 90 504 20 1,505
Class C Shares 28 136 42 625
Advisor Shares 30 20 NA 86
---------- ---------- ----------- ------------
Total 25,853 31,568 1,330 73,211
========== ========== =========== ============
Net Asset Value
Institutional Shares $ 15.90 $ 12.02 $ 18.17 $ 14.23
========== ========== =========== ============
Class A Shares-redemption price per share $ 15.65 $ 11.82 $ 17.94 $ 14.04
========== ========== =========== ============
Class B Shares-offering price per share* $ 15.61 $ 11.59 $ 17.77 $ 13.75
========== ========== =========== ============
Class C Shares-offering price per share* $ 15.62 $ 11.17 $ 17.30 $ 13.40
========== ========== =========== ============
Advisor Shares $ 15.75 $ 11.78 NA $ 13.98
========== ========== =========== ============
Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) $ 16.47 $ 12.44 $ 18.88 $ 14.78
========== ========== =========== ============
LARGE CAP EQUITY MICRO CAP
CORE INDEX BALANCED VALUE
FUND FUND FUND FUND
---------- ---------- ---------- ----------
Assets:
Investments, at cost $ 199,026 $ 434,656 $ 285,301 $ 101,084
Net unrealized appreciation 4,766 199,378 7,928 31,066
---------- ---------- ---------- ----------
Investments, at value 203,792 634,034 293,229 132,150
Repurchase agreements, at cost -- -- -- 18,015
---------- ---------- ---------- ----------
Total Investments 203,792 634,034 293,229 150,165
Cash 10 -- -- --^
Interest, dividends and other receivables 287 769 871 49
Receivable for investments sold -- -- -- 520
Receivable for Fund shares sold -- 27 13 317
Receivable for variation margin on futures contracts 16 39 -- --
Receivable from Advisor and affiliates 1 2 -- --
Prepaid expenses and other assets 9 24 30 21
---------- ---------- ---------- ----------
Total Assets 204,115 634,895 294,143 151,072
---------- ---------- ---------- ----------
Liabilities:
Payable to Custodian -- -- -- --
Payable for investments purchased -- -- 13,754 1,145
Payable for securities loaned 775 13,314 9,870 --
Payable for Fund shares redeemed 3 7 113 25
Options written, at value (premiums received $3) -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 132 141 191 125
Distribution and administrative services fees 5 11 33 18
Other 48 43 20 24
---------- ---------- ---------- ----------
Total Liabilities 963 13,516 23,981 1,337
---------- ---------- ---------- ----------
Net Assets:
Paid-in Capital 256,044 485,347 336,698 115,554
Accumulated net investment income (loss) 137 656 307 --
Accumulated net realized gain/(loss) from
investment transactions and futures (57,784) (64,008) (74,771) 3,115
Net unrealized appreciation on investments and futures 4,755 199,384 7,928 31,066
---------- ---------- ---------- ----------
Net Assets $ 203,152 $ 621,379 $ 270,162 $ 149,735
========== ========== ========== ==========
Market value of securities loaned $ 743 $ 12,764 $ 9,462 $ --
========== ========== ========== ==========
Net Assets:
Institutional Shares $ 181,278 $ 583,530 $ 177,052 $ 100,676
Class A Shares 21,288 33,402 73,287 18,297
Class B Shares 557 2,409 13,972 4,254
Class C Shares 29 1,711 5,747 1,166
Advisor Shares NA 327 104 25,342
---------- ---------- ---------- ----------
Total $ 203,152 $ 621,379 $ 270,162 $ 149,735
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 15,307 30,826 15,554 12,285
Class A Shares 1,820 1,770 6,476 2,264
Class B Shares 47 128 1,248 534
Class C Shares 2 91 514 146
Advisor Shares NA 17 9 3,147
---------- ---------- ---------- ----------
Total 17,176 32,832 23,801 18,376
========== ========== ========== ==========
Net Asset Value
Institutional Shares $ 11.84 $ 18.93 $ 11.38 $ 8.20
========== ========== ========== ==========
Class A Shares-redemption price per share $ 11.70 $ 18.87 $ 11.32 $ 8.08
========== ========== ========== ==========
Class B Shares-offering price per share* $ 11.75 $ 18.78 $ 11.19 $ 7.97
========== ========== ========== ==========
Class C Shares-offering price per share* $ 11.76 $ 18.78 $ 11.17 $ 7.97
========== ========== ========== ==========
Advisor Shares NA $ 18.86 $ 11.30 $ 8.05
========== ========== ========== ==========
Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) $ 12.32 $ 19.86 $ 11.92 $ 8.51
========== ========== ========== ==========
DISCIPLINED
SMALL CAP MULTI CAP LARGE CAP LIFEMODEL
VALUE VALUE VALUE AGGRESSIVE
FUND FUND FUND FUNDSM
--------- ---------- ----------- ----------
Assets:
Investments, at cost $ 64,677 $ 209,391 $ 311,753 $ 39,318
Net unrealized appreciation 7,069 36,784 46,398 7,173
--------- ---------- --------- ---------
Investments, at value 71,746 246,175 358,151 46,491
Repurchase agreements, at cost 2,189 26,742 -- --
--------- ---------- --------- ---------
Total Investments 73,935 272,917 358,151 46,491#
Cash 1 1 -- --
Interest, dividends and other receivables 65 198 645 --^
Receivable for investments sold 647 358 -- --
Receivable for Fund shares sold -- 23 1 143
Receivable for variation margin on futures contracts -- -- -- --
Receivable from Advisor and affiliates 53 -- -- 1
Prepaid expenses and other assets 48 10 28 4
--------- ---------- --------- ---------
Total Assets 74,749 273,507 358,825 46,639
--------- ---------- --------- ---------
Liabilities:
Payable to Custodian -- -- 60 --^
Payable for investments purchased 1,360 195 -- --
Payable for securities loaned -- 17,700 4,111 --
Payable for Fund shares redeemed -- 12 22 --
Options written, at value (premiums received $3) -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 56 214 238 2
Distribution and administrative services fees --^ 33 6 5
Other -- 31 29 2
--------- ---------- --------- ---------
Total Liabilities 1,416 18,185 4,466 9
--------- ---------- --------- ---------
Net Assets:
Paid-in Capital 65,254 223,566 300,668 39,222
Accumulated net investment income (loss) 68 -- 449 --
Accumulated net realized gain/(loss) from
investment transactions and futures 942 (5,028) 6,844 235
Net unrealized appreciation on investments and futures 7,069 36,784 46,398 7,173
--------- ---------- --------- ---------
Net Assets $ 73,333 $ 255,322 $ 354,359 $ 46,630
========= ========== ========= =========
Market value of securities loaned $ -- $ 16,970 $ 3,941 $ --
========= ========== ========= =========
Net Assets:
Institutional Shares $ 72,783 $ 182,485 $ 335,967 $ 32,421
Class A Shares 216 19,667 14,100 10,090
Class B Shares 103 14,087 3,408 3,587
Class C Shares 15 2,036 884 532
Advisor Shares 216 37,047 NA NA
--------- ---------- --------- ---------
Total $ 73,333 $ 255,322 $ 354,359 $ 46,630
========= ========== ========= =========
Shares of Beneficial Interest Outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 4,149 9,593 28,342 2,856
Class A Shares 12 1,043 1,191 891
Class B Shares 6 756 286 318
Class C Shares 1 109 75 47
Advisor Shares 12 1,968 NA NA
--------- ---------- --------- ---------
Total 4,180 13,469 29,894 4,112
========= ========== ========= =========
Net Asset Value
Institutional Shares $ 17.54 $ 19.02 $ 11.85 $ 11.35
========= ========== ========= =========
Class A Shares-redemption price per share $ 17.52 $ 18.85 $ 11.83 $ 11.33
========= ========== ========= =========
Class B Shares-offering price per share* $ 17.48 $ 18.63 $ 11.93 $ 11.26
========= ========== ========= =========
Class C Shares-offering price per share* $ 17.48 $ 18.61 $ 11.76 $ 11.26
========= ========== ========= =========
Advisor Shares $ 17.51 $ 18.82 NA NA
========= ========== ========= =========
Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) $ 18.44 $ 19.84 $ 12.45 $ 11.93
========= ========== ========= =========
- ----------------
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred dollars.
# Represents investments in affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
126-127 Spread
Fifth Third Funds
Statements of Assets and Liabilities
July 31, 2003
(Amounts in thousands except per share amounts)
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUNDSM FUNDSM FUNDSM FUNDSM
--------- ---------- ------------ ------------
Assets:
Investments, at cost $ 97,992 $ 106,112 $ 65,439 $ 35,121
Net unrealized appreciation/(depreciation) 12,123 9,893 4,322 1,286
---------- ---------- --------- --------
Total Investments 110,115# 116,005# 69,761# 36,407#
Cash -- -- --^ --
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0
$269, $2,306, $0, $0 and $0, respectively) -- -- -- --
Interest, dividends and other receivables 1 1 1 --^
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 381 527 216 --
Receivable for forward foreign currency contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 2 3 2 1
Prepaid expenses and other assets 8 8 6 6
---------- ---------- --------- --------
Total Assets 110,507 116,544 69,986 36,414
---------- ---------- --------- --------
Liabilities:
Payable to Custodian --^ --^ -- --^
Distributions payable -- -- -- --
Payable for investments purchased -- -- -- --
Payable for securities loaned -- -- -- --
Payable for Fund shares redeemed 3 17 4 1
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 5 5 3 2
Distribution and administrative services fees 17 18 12 11
Other 7 9 6 1
---------- ---------- --------- --------
Total Liabilities 32 49 25 15
---------- ---------- --------- --------
Net Assets:
Paid-in Capital 97,901 106,628 64,885 34,938
Accumulated net investment income 49 112 82 58
Accumulated net realized gain/(loss) from
investment transactions, futures and foreign currency 402 (138) 672 117
Net unrealized appreciation/(depreciation)
on investments, futures and foreign currency 12,123 9,893 4,322 1,286
---------- ---------- --------- --------
Net Assets $ 110,475 $ 116,495 $ 69,961 $ 36,399
========== ========== ========= ========
Market value of securities loaned $ -- $ -- $ -- $ --
========== ========== ========= ========
Net Assets:
Institutional Shares $ 62,677 $ 71,538 $ 40,412 $ 16,014
Class A Shares 33,806 28,991 19,449 9,387
Class B Shares 12,606 14,631 9,083 8,795
Class C Shares 1,386 1,335 1,017 2,203
Advisor Shares NA NA NA NA
---------- ---------- --------- --------
Total $ 110,475 $ 116,495 $ 69,961 $ 36,399
========== ========== ========= ========
Shares of Beneficial Interest Outstanding (Unlimited number
of shares authorized, no par value):
Institutional Shares 5,406 6,543 3,806 1,519
Class A Shares 2,918 2,653 1,834 891
Class B Shares 1,092 1,343 859 837
Class C Shares 120 122 96 210
Advisor Shares NA NA NA NA
---------- ---------- --------- --------
Total 9,536 10,661 6,595 3,457
========== ========== ========= ========
Net Asset Value
Institutional Shares $ 11.59 $ 10.93 $ 10.62 $ 10.54
========== ========== ========= ========
Class A Shares-redemption price per share $ 11.58 $ 10.93 $ 10.60 $ 10.53
========== ========== ========= ========
Class B Shares-offering price per share* $ 11.55 $ 10.89 $ 10.58 $ 10.50
========== ========== ========= ========
Class C Shares-offering price per share* $ 11.55 $ 10.90 $ 10.59 $ 10.51
========== ========== ========= ========
Advisor Shares NA NA NA NA
========== ========== ========= ========
Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) $ 12.19 $ 11.51 $ 11.16 $ 11.08
========== ========== ========= ========
STRATEGIC INTERNATIONAL
INCOME TECHNOLOGY WORLDWIDE EQUITY
FUND FUND FUND FUND
---------- ---------- ---------- ----------
Assets:
Investments, at cost $ 140,427 $ 37,768 $ 17,582 $ 178,282
Net unrealized appreciation/(depreciation) 1,805 9,851 1,878 (16,091)
---------- ---------- ---------- ----------
Total Investments 142,232 47,619 19,460 162,191
Cash --^ 8 -- 10,144
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0
$269, $2,306, $0, $0 and $0, respectively) -- -- -- 266
Interest, dividends and other receivables 614 --^ 1 180
Receivable for investments sold -- -- -- 1
Receivable for Fund shares sold 203 151 -- 2
Receivable for forward foreign currency contracts -- -- -- 1,199
Reclaims receivable -- -- -- 295
Receivable from Advisor and affiliates -- 2 53 39
Prepaid expenses and other assets 16 27 5 32
---------- ---------- ---------- ----------
Total Assets 143,065 47,807 19,519 174,349
---------- ---------- ---------- ----------
Liabilities:
Payable to Custodian -- -- --^ --
Distributions payable 545 -- -- --
Payable for investments purchased 202 -- -- --
Payable for securities loaned -- 10,670 -- 7,170
Payable for Fund shares redeemed 332 3 34 11
Payable for forward foreign currency contracts -- -- -- 1,701
Accrued expenses and other payables:
Payable to Advisor and affiliates 124 32 17 144
Distribution and administrative services fees 47 3 7 2
Other 11 8 5 28
---------- ---------- ---------- ----------
Total Liabilities 1,261 10,716 63 9,056
---------- ---------- ---------- ----------
Net Assets:
Paid-in Capital 141,826 86,177 31,062 215,823
Accumulated net investment income (50) -- -- 3,140
Accumulated net realized gain/(loss) from
investment transactions, futures and foreign currency (1,777) (58,937) (13,484) (37,210)
Net unrealized appreciation/(depreciation)
on investments, futures and foreign currency 1,805 9,851 1,878 (16,460)
---------- ---------- ---------- ----------
Net Assets $ 141,804 $ 37,091 $ 19,456 $ 165,293
========== ========== ========== ==========
Market value of securities loaned $ -- $ 10,229 $ -- $ 6,874
========== ========== ========== ==========
Net Assets:
Institutional Shares $ 67,649 $ 29,573 $ 3,577 $ 159,160
Class A Shares NA 5,218 NA 5,489
Class B Shares NA 1,164 NA 340
Class C Shares 37,810 1,081 336 304
Advisor Shares 36,345 55 15,543 NA
---------- ---------- ---------- ----------
Total $ 141,804 $ 37,091 $ 19,456 $ 165,293
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding (Unlimited number
of shares authorized, no par value):
Institutional Shares 6,203 3,390 314 20,428
Class A Shares NA 603 NA 703
Class B Shares NA 137 NA 44
Class C Shares 3,494 128 31 41
Advisor Shares 3,342 6 1,396 NA
---------- ---------- ---------- ----------
Total 13,039 4,264 1,741 21,216
========== ========== ========== ==========
Net Asset Value
Institutional Shares $ 10.91 $ 8.72 $ 11.38 $ 7.79
========== ========== ========== ==========
Class A Shares-redemption price per share NA $ 8.66 NA $ 7.81
========== ========== ========== ==========
Class B Shares-offering price per share* NA $ 8.47 NA $ 7.71
========== ========== ========== ==========
Class C Shares-offering price per share* $ 10.82 $ 8.44 $ 11.02 $ 7.50
========== ========== ========== ==========
Advisor Shares $ 10.88 $ 8.61 $ 11.14 NA
========== ========== ========== ==========
Maximum sales charge-Class A Shares NA 5.00% NA 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) NA $ 9.12 NA $ 8.22
========== ========== ========== ==========
INTERNATIONAL INTERMEDIATE SHORT TERM
GDP BOND BOND BOND
FUND FUND FUND FUND
----------- ----------- ----------- -----------
Assets:
Investments, at cost $ 267,561 $ 405,287 $ 966,551 $ 547,972
Net unrealized appreciation/(depreciation) (50,139) 2,784 4,276 1,281
----------- ----------- ----------- -----------
Total Investments 217,422 408,071 970,827 549,253
Cash -- -- -- --
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0
$269, $2,306, $0, $0 and $0, respectively) 2,317 -- -- --
Interest, dividends and other receivables 301 2,468 6,133 4,433
Receivable for investments sold 984 5,674 -- --
Receivable for Fund shares sold -- 358 25 160
Receivable for forward foreign currency contracts -- -- -- --
Reclaims receivable 359 -- -- --
Receivable from Advisor and affiliates -- 2 2 1
Prepaid expenses and other assets 14 30 28 14
----------- ----------- ----------- -----------
Total Assets 221,397 416,603 977,015 553,861
----------- ----------- ----------- -----------
Liabilities:
Payable to Custodian --^ -- 2 --
Distributions payable -- -- -- --
Payable for investments purchased -- 69,299 77,167 --
Payable for securities loaned 12,894 13,627 82,365 28,968
Payable for Fund shares redeemed -- 23 110 409
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 137 181 405 235
Distribution and administrative services fees 1 12 15 5
Other 37 38 61 40
----------- ----------- ----------- -----------
Total Liabilities 13,069 83,180 160,125 29,657
----------- ----------- ----------- -----------
Net Assets:
Paid-in Capital 303,566 333,395 831,769 530,735
Accumulated net investment income 3,094 55 54 63
Accumulated net realized gain/(loss) from
investment transactions, futures and foreign currency (48,265) (2,811) (19,209) (7,875)
Net unrealized appreciation/(depreciation)
on investments, futures and foreign currency (50,067) 2,784 4,276 1,281
----------- ----------- ----------- -----------
Net Assets $ 208,328 $ 333,423 $ 816,890 $ 524,204
=========== =========== =========== ===========
Market value of securities loaned $ 12,362 $ 13,065 $ 78,966 $ 27,773
=========== =========== =========== ===========
Net Assets:
Institutional Shares $ 203,335 $ 303,450 $ 772,536 $ 490,229
Class A Shares 4,920 20,572 36,471 33,975
Class B Shares 65 7,418 5,564 NA
Class C Shares 8 1,246 2,319 NA
Advisor Shares NA 737 NA NA
----------- ----------- ----------- -----------
Total $ 208,328 $ 333,423 $ 816,890 $ 524,204
=========== =========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number
of shares authorized, no par value):
Institutional Shares 19,311 30,465 76,951 50,279
Class A Shares 477 2,067 3,625 3,489
Class B Shares 6 745 556 NA
Class C Shares 1 125 231 NA
Advisor Shares NA 74 NA NA
----------- ----------- ----------- -----------
Total 19,795 33,476 81,363 53,768
=========== =========== =========== ===========
Net Asset Value
Institutional Shares $ 10.53 $ 9.96 $ 10.04 $ 9.75
=========== =========== =========== ===========
Class A Shares-redemption price per share $ 10.32 $ 9.95 $ 10.06 $ 9.74
=========== =========== =========== ===========
Class B Shares-offering price per share* $ 10.43 $ 9.95 $ 10.01 NA
=========== =========== =========== ===========
Class C Shares-offering price per share* $ 10.38 $ 9.96 $ 10.03 NA
=========== =========== =========== ===========
Advisor Shares NA $ 9.96 NA NA
=========== =========== =========== ===========
Maximum sales charge-Class A Shares 5.00% 4.75% 3.50% 3.50%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent)
per share (Class A Shares) $ 10.86 $ 10.45 $ 10.42 $ 10.09
=========== =========== =========== ===========
- ----------------------
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred dollars.
# Represents investments in affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
128-129 spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
U.S. INTERMEDIATE OHIO MICHIGAN
GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND
FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ----------
Assets:
Investments, at cost $ 83,868 $ 70,719 $ 297,811 $ 182,994 $ 132,325
Net unrealized appreciation/(depreciation) (139) 6,756 13,912 6,546 2,874
---------- ---------- ---------- ---------- ----------
Total Investments 83,729 77,475 311,723 189,540 135,199
Interest, dividends and other receivables 737 921 3,360 2,000 1,419
Receivable for investments sold -- -- 5,463 -- --
Receivable for Fund shares sold --^ 30 -- 55 --
Receivable from Advisor and affiliates -- 1 2 -- 1
Prepaid expenses and other assets 21 14 22 23 6
---------- ---------- ---------- ---------- ----------
Total Assets 84,487 78,441 320,570 191,618 136,625
---------- ---------- ---------- ---------- ----------
Liabilities:
Payable to Custodian --^ -- -- --^ --
Payable for investments purchased 12,293 -- 9,266 3,278 3,703
Payable for Fund shares redeemed 78 -- -- 69 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 29 39 156 92 54
Distribution and administrative services fees 11 2 3 16 6
Other 8 12 35 12 12
---------- ---------- ---------- ---------- ----------
Total Liabilities 12,419 53 9,460 3,467 3,775
---------- ---------- ---------- ---------- ----------
Net Assets:
Paid-in Capital 70,878 70,418 294,048 181,516 129,771
Accumulated net investment income 144 (2) 36 -- 5
Accumulated net realized gain from
investment transactions 1,185 1,216 3,114 89 200
Net unrealized appreciation/(depreciation)
on investments (139) 6,756 13,912 6,546 2,874
---------- ---------- ---------- ---------- ----------
Net Assets $ 72,068 $ 78,388 $ 311,110 $ 188,151 $ 132,850
========== ========== ========== ========== ==========
Net Assets:
Institutional Shares $ 50,649 $ 74,347 $ 304,754 $ 151,478 $ 118,867
Class A Shares 11,413 1,906 4,317 25,177 8,006
Class B Shares NA 1,205 1,066 5,101 2,010
Class C Shares 10,006 548 973 6,395 3,967
Advisor Shares NA 382 NA NA NA
---------- ---------- ---------- ---------- ----------
Total $ 72,068 $ 78,388 $ 311,110 $ 188,151 $ 132,850
========== ========== ========== ========== ==========
Shares of Beneficial Interest Outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 4,924 7,085 28,635 14,579 11,525
Class A Shares 1,109 181 405 2,424 777
Class B Shares NA 115 100 500 195
Class C Shares 979 52 92 618 385
Advisor Shares NA 36 NA NA NA
---------- ---------- ---------- ---------- ----------
Total 7,012 7,469 29,232 18,121 12,882
========== ========== ========== ========== ==========
Net Asset Value
Institutional Shares $ 10.29 $ 10.49 $ 10.64 $ 10.39 $ 10.31
========== ========== ========== ========== ==========
Class A Shares-redemption price per share $ 10.29 $ 10.54 $ 10.65 $ 10.39 $ 10.30
========== ========== ========== ========== ==========
Class B Shares-offering price per share* NA $ 10.47 $ 10.63 $ 10.19 $ 10.30
========== ========== ========== ========== ==========
Class C Shares-offering price per share* $ 10.22 $ 10.48 $ 10.63 $ 10.35 $ 10.29
========== ========== ========== ========== ==========
Advisor Shares NA $ 10.49 NA NA NA
========== ========== ========== ========== ==========
Maximum sales charge-Class A Shares 4.75% 4.75% 3.50% 4.75% 4.75%
Maximum Offering Price (100%/(100%-Maximum
sales charge) of net asset value adjusted to the
nearest cent) per share (Class A Shares) $ 10.80 $ 11.07 $ 11.04 $ 10.91 $ 10.81
========== ========== ========== ========== ==========
- ------------------
* Redemption price per share varies by length of time shares are held
SEE NOTES TO FINANCIAL STATEMENTS
130
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP LARGE CAP QUALITY LARGE CAP
GROWTH GROWTH OPPORTUNITY GROWTH CORE
FUND FUND FUND FUND FUND
--------- --------- -------- -------- ---------
Investment Income:
Interest income $ 287 $ 130 $ --^ $ 10 $ 6
Dividend income 2,957 1,286 190 10,036 6,643
--------- --------- -------- -------- ---------
Total Investment Income 3,244 1,416 190 10,046 6,649
--------- --------- -------- -------- ---------
Expenses:
Investment advisory fees 2,948 2,479 191 7,062 2,440
Administrative fees 730 537 41 1,531 604
Distribution services fees-Class A Shares 36 72 21 494 51
Distribution services fees-Class B Shares 11 51 3 188 4
Distribution services fees-Class C Shares 3 8 6 57 --^
Distribution services fees-Advisor Shares 1 1 NA 3 NA
Administrative services fees-Class C Shares 1 3 2 19 --^
Accounting fees 139 106 59 212 116
Registration and filing fees 30 41 35 53 37
Transfer and dividend disbursing agent fees 134 141 43 427 111
Custody fees 48 33 16 50 39
Other expenses 109 82 3 229 86
--------- --------- -------- -------- ---------
Total Expenses 4,190 3,554 420 10,325 3,488
--------- --------- -------- -------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (205) -- (39) -- (234)
--------- --------- -------- -------- ---------
Net Expenses 3,985 3,554 381 10,325 3,254
--------- --------- -------- -------- ---------
Net Investment Income/(Loss) (741) (2,138) (191) (279) 3,395
--------- --------- -------- -------- ---------
Realized and Unrealized Gains/(Losses)
from Investments and Futures:
Net realized gains/(losses) on investment
transactions (3,979) (10,988) (3,768) 4,122 13,970
Net realized gains on futures transactions 3,303 -- -- -- 1,494
Change in unrealized appreciation/depreciation
on investments and futures 59,599 72,000 3,941 95,796 (14,705)
--------- --------- -------- -------- ---------
Net realized and unrealized gains
on investments and futures 58,923 61,012 173 99,918 759
--------- --------- -------- -------- ---------
Change in net assets resulting from operations $ 58,182 $ 58,874 $ (18) $ 99,639 $ 4,154
========= ========= ======== ======== =========
- ----------------------
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
131
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DISCIPLINED
EQUITY MICRO CAP SMALL CAP MULTI CAP LARGE CAP
INDEX BALANCED VALUE VALUE VALUE VALUE
FUND FUND FUND FUND (a) FUND FUND
--------- --------- --------- --------- --------- ---------
Investment Income:
Interest income $ 22 $ 4,646 $ 133 $ 9 $ 221 $ 31
Dividend income 10,583 2,200 571 266 2,306 6,500
--------- --------- --------- --------- --------- ----------
Total Investment Income 10,605 6,846 704 275 2,527 6,531
--------- --------- --------- --------- --------- ----------
Expenses:
Investment advisory fees 1,752 2,200 968 150 1,661 1,847
Administrative fees 1,012 477 168 29 288 400
Distribution services fees-Class A Shares 69 186 20 --^ 44 30
Distribution services fees-Class B Shares 17 138 31 --^ 121 28
Distribution services fees-Class C Shares 8 40 6 --^ 12 5
Distribution services fees-Advisor Shares 1 --^ 93 --^ 179 NA
Administrative services fees-Class C Shares 3 13 2 --^ 4 2
Accounting fees 187 107 84 23 86 82
Registration and filing fees 39 40 15 1 21 36
Transfer and dividend disbursing agent fees 186 145 86 13 123 93
Custody fees 50 29 58 14 47 32
Other expenses 160 75 43 40 58 58
--------- --------- --------- --------- --------- ----------
Total Expenses 3,484 3,450 1,574 270 2,644 2,613
--------- --------- --------- --------- --------- ----------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (1,051) (52) (64) (62) (69) (47)
--------- --------- --------- --------- --------- ----------
Net Expenses 2,433 3,398 1,510 208 2,575 2,566
--------- --------- --------- --------- --------- ----------
Net Investment Income/(Loss) 8,172 3,448 (806) 67 (48) 3,965
--------- --------- --------- --------- --------- ----------
Realized and Unrealized Gains/(Losses)
from Investments and Futures:
Net realized gains/(losses) on investment
transactions (3,611) (16,453) 4,206 942 (1,746) 10,102
Realized gain distributions from underlying funds -- -- -- -- -- --
Net realized gains on futures transactions 4,041 -- -- -- -- --
Change in unrealized appreciation/depreciation
on investments and futures 48,150 27,794 33,764 7,069 43,085 32,421
--------- --------- --------- --------- --------- ----------
Net realized and unrealized gains on investments
and futures 48,580 11,341 37,970 8,011 41,339 42,523
--------- --------- --------- --------- --------- ----------
Change in net assets resulting from operations $ 56,752 $ 14,789 $ 37,164 $ 8,078 $ 41,291 $ 46,488
========= ========= ========= ========= ========= ==========
LIFEMODEL LIFEMODEL
LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL STRATEGIC
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE INCOME
FUNDSM(b) FUNDSM(b) FUNDSM(b) FUNDSM(b) FUNDSM(b) FUND
--------- ---------- --------- ------------ ------------ ----------
Investment Income:
Interest income $ -- $ -- $ -- $ -- $ -- $ 394
Dividend income 95# 523# 881# 664# 522# 5,257
--------- ---------- --------- ------- ---------- ---------
Total Investment Income 95 523 881 664 522 5,651
--------- ---------- --------- ------- ---------- ---------
Expenses:
Investment advisory fees 27 64 70 44 27 856
Administrative fees 41 79 85 57 37 148
Distribution services fees-Class A Shares 6 26 28 15 12 NA
Distribution services fees-Class B Shares 12 42 55 37 43 NA
Distribution services fees-Class C Shares 1 3 3 3 7 133
Distribution services fees-Advisor Shares NA NA NA NA NA 160
Administrative services fees-Class C Shares --^ 1 1 1 2 44
Accounting fees 60 60 60 60 60 56
Registration and filing fees 1 1 1 2 1 13
Transfer and dividend disbursing agent fees 29 39 40 34 30 49
Custody fees 3 4 4 3 3 23
Other expenses 6 15 18 10 8 24
--------- ---------- --------- ------- ---------- ---------
Total Expenses 186 334 365 266 230 1,506
--------- ---------- --------- ------- ---------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (152) (228) (239) (187) (150) (16)
--------- ---------- --------- ------- ---------- ---------
Net Expenses 34 106 126 79 80 1,490
--------- ---------- --------- ------- ---------- ---------
Net Investment Income/(Loss) 61 417 755 585 442 4,161
--------- ---------- --------- ------- ---------- ---------
Realized and Unrealized Gains/(Losses)
from Investments and Futures:
Net realized gains/(losses) on investment
transactions 231+ 377+ (161)+ 660+ 110+ (382)
Realized gain distributions from underlying funds 7 25 23 12 7 --
Net realized gains on futures transactions -- -- -- -- -- --
Change in unrealized appreciation/depreciation
on investments and futures 7,173 12,123 9,893 4,322 1,286 622
--------- ---------- --------- ------- ---------- ---------
Net realized and unrealized gains on investments
and futures 7,411 12,525 9,755 4,994 1,403 240
--------- ---------- --------- ------- ---------- ---------
Change in net assets resulting from operations $ 7,472 $ 12,942 $ 10,510 $ 5,579 $ 1,845 $ 4,401
========= ========== ========= ======= ========== =========
- ------------------------------------
(a) Reflects operations for the period from April 1, 2003 (date of commencement
of operations) to July 31, 2003.
(b) Reflects operations for the period from August 1, 2002 (date of commencement
of operations) to July 31, 2003.
^ Represents fewer than five hundred dollars.
# Represents income from affiliates.
+ Represents realized gains from investment transactions with affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
132-133 Spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
INTERNATIONAL INTERNATIONAL INTERMEDIATE
TECHNOLOGY WORLDWIDE EQUITY GDP BOND BOND
FUND FUND FUND FUND FUND FUND
---------- --------- ------------- ------------- --------- ------------
Investment Income:
Interest income $ 11 $ 24 $ 54 $ 138 $ 17,642 $ 36,824
Dividend income 15 156 4,103 5,575 135 358
Foreign tax withholding -- -- (541) (669) -- --
---------- --------- ---------- --------- --------- ---------
Total Investment Income 26 180 3,616 5,044 17,777 37,182
---------- --------- ---------- --------- --------- ---------
Expenses:
Investment advisory fees 268 186 1,515 1,650 2,291 4,567
Administrative fees 47 32 263 382 662 1,440
Distribution services fees-Class A Shares 9 NA 14 15 51 88
Distribution services fees-Class B Shares 8 NA 3 1 77 46
Distribution services fees-Class C Shares 2 2 1 --^ 9 12
Distribution services fees-Advisor Shares --^ 75 NA NA 4 NA
Administrative services fees-Class C Shares 1 1 --^ --^ 3 4
Accounting fees 68 56 143 109 136 208
Registration and filing fees 34 9 38 31 41 36
Transfer and dividend disbursing agent fees 46 34 58 67 132 237
Custody fees 25 4 142 98 37 47
Other expenses 16 7 33 42 106 203
---------- --------- ---------- --------- --------- ---------
Total Expenses 524 406 2,210 2,395 3,549 6,888
---------- --------- ---------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (86) (59) (39) (135) (353) (427)
Distribution services-Class A Shares waived -- -- -- -- -- --
---------- --------- ---------- --------- --------- ---------
Net Expenses 438 347 2,171 2,260 3,196 6,461
---------- --------- ---------- --------- --------- ---------
Net Investment Income/(Loss) (412) (167) 1,445 2,784 14,581 30,721
---------- --------- ---------- --------- --------- ---------
Realized and Unrealized Gains/(Losses)
from Investments, Futures and Foreign
Currency:
Net realized gains/(losses) on investment and
foreign currency transactions (9,239) (921) (16,332) (10,261) 15,221 31,963
Net realized gains on futures transactions -- -- 857 -- -- --
Net increase from payment by advisor for losses
realized on the disposal of investments in
violation of restrictions -- 53 -- -- -- --
Change in unrealized appreciation/depreciation on
investments, futures and foreign currency 22,870 2,280 19,788 16,693 (9,973) (23,525)
---------- --------- ---------- --------- --------- ---------
Net realized and unrealized gains/(losses)
on investments, futures and foreign currency 13,631 1,412 4,313 6,432 5,248 8,438
---------- --------- ---------- --------- --------- ---------
Change in net assets resulting from operations $ 13,219 $ 1,245 $ 5,758 $ 9,216 $ 19,829 $ 39,159
========== ========= ========== ========= ========= =========
U.S. INTERMEDIATE OHIO MICHIGAN
SHORT TERM GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND
---------- ---------- --------- ------------ --------- ---------
Investment Income:
Interest income $ 14,347 $ 2,595 $ 4,405 $ 13,600 $ 8,271 $ 4,359
Dividend income 294 57 28 94 45 54
Foreign tax withholding -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total Investment Income 14,641 2,652 4,433 13,694 8,316 4,413
--------- --------- --------- --------- --------- ---------
Expenses:
Investment advisory fees 2,196 397 512 1,844 1,076 535
Administrative fees 762 125 161 581 339 206
Distribution services fees-Class A Shares 63 29 7 14 56 14
Distribution services fees-Class B Shares NA NA 9 7 42 10
Distribution services fees-Class C Shares NA 46 4 6 43 21
Distribution services fees-Advisor Shares NA NA 2 NA NA NA
Administrative services fees-Class C Shares NA 15 1 2 14 7
Accounting fees 116 50 81 127 80 77
Registration and filing fees 20 28 25 30 35 9
Transfer and dividend disbursing agent fees 115 34 47 94 72 45
Custody fees 30 14 8 44 15 19
Other expenses 102 14 32 76 41 29
--------- --------- --------- --------- --------- ---------
Total Expenses 3,404 752 889 2,825 1,813 972
--------- --------- --------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (87) (79) (132) (350) (156) (99)
Distribution services-Class A Shares waived (25) -- -- -- -- (6)
--------- --------- --------- --------- --------- ---------
Net Expenses 3,292 673 757 2,475 1,657 867
--------- --------- --------- --------- --------- ---------
Net Investment Income/(Loss) 11,349 1,979 3,676 11,219 6,659 3,546
--------- --------- --------- --------- --------- ---------
Realized and Unrealized Gains/(Losses)
from Investments, Futures and Foreign
Currency:
Net realized gains/(losses) on investment and
foreign currency transactions 5,377 2,078 1,455 3,418 747 186
Net realized gains on futures transactions -- -- -- -- -- --
Net increase from payment by advisor for losses
realized on the disposal of investments in
violation of restrictions -- -- -- -- -- --
Change in unrealized appreciation/depreciation on
investments, futures and foreign currency (4,210) (2,089) (1,659) (5,229) (2,274) (983)
--------- --------- --------- --------- --------- ---------
Net realized and unrealized gains/(losses)
on investments, futures and foreign currency 1,167 (11) (204) (1,811) (1,527) (797)
--------- --------- --------- --------- --------- ---------
Change in net assets resulting from operations $ 12,516 $ 1,968 $ 3,472 $ 9,408 $ 5,132 $ 2,749
========= ========= ========= ========= ========= =========
- ----------------
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
134-135 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNT IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP
GROWTH FUND GROWTH FUND
---------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002 (b)
---------- --------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (741) $ (1,419) $ (2,138) $ (1,624)
Net realized gains/(losses) on
investment transactions (3,979) (2,756) (10,988) (33,111)
Net realized gains/(losses) on
futures transactions 3,303 455 -- --
Net change in unrealized appreciation/
depreciation on investments
and futures 59,599 (129,498) 72,000 (66,125)
---------- ---------- ---------- ----------
Change in net assets resulting from operations 58,182 (133,218) 58,874 (100,860)
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares -- (21,767) -- (8,553)
Class A Shares -- (635) -- (1,277)
Class B Shares -- --^ -- (146)
Class C Shares -- --^ -- (49)
Advisor Shares -- --^ -- --^
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions -- (22,402) -- (10,025)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (150,994) (86,608) 75,340 52,992
---------- ---------- ---------- ----------
Change in net assets (92,812) (242,228) 134,214 (57,893)
Net Assets:
Beginning of period 503,529 745,757 244,186 302,079
---------- ---------- ---------- ----------
End of period $ 410,717 $ 503,529 $ 378,400 $ 244,186
========== ========== ========== ==========
Accumulated Net Investment Income $ (16) $ (18) $ -- $ --
========== ========== ========== ==========
LARGE CAP
OPPORTUNITY FUND QUALITY GROWTH FUND
---------------------- ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 2003 2002 (b)
--------- --------- ------------ ------------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (191) $ (372) $ (279) $ (3,545)
Net realized gains/(losses) on
investment transactions (3,768) (5,774) 4,122 (150,505)
Net realized gains/(losses) on
futures transactions -- -- -- --
Net change in unrealized appreciation/
depreciation on investments
and futures 3,941 (7,060) 95,796 (167,735)
--------- --------- ------------ ------------
Change in net assets resulting from operations (18) (13,206) 99,639 (321,785)
--------- --------- ------------ ------------
Distributions from net investment income:
Institutional Shares -- -- (46) --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares NA NA -- --
Distributions from net realized gains:
Institutional Shares -- -- -- (24,361)
Class A Shares -- -- -- (10,603)
Class B Shares -- -- -- (611)
Class C Shares -- -- -- (386)
Advisor Shares NA NA -- --^
--------- --------- ------------ ------------
Change in net assets from
shareholder distributions -- -- (46) (35,961)
--------- --------- ------------ ------------
Change in net assets from
Fund share transactions (2,859) (13,531) 121,606 90,976
--------- --------- ------------ ------------
Change in net assets (2,877) (26,737) 221,199 (266,770)
Net Assets:
Beginning of period 26,877 53,614 816,295 1,083,065
--------- --------- ------------ ------------
End of period $ 24,000 $ 26,877 $ 1,037,494 $ 816,295
========= ========= ============ ============
Accumulated Net Investment Income $ -- $ -- $ -- $ --
========= ========= ============ ============
LARGE CAP CORE FUND EQUITY INDEX FUND
----------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (c) 2003 2002 (a)
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 3,395 $ 3,059 $ 8,172 $ 8,263
Net realized gains/(losses) on
investment transactions 13,970 (23,820) (3,611) (48,145)
Net realized gains/(losses) on
futures transactions 1,494 894 4,041 (1,936)
Net change in unrealized appreciation/
depreciation on investments
and futures (14,705) (165,088) 48,150 (169,153)
---------- ---------- ---------- ----------
Change in net assets resulting from operations 4,154 (184,955) 56,752 (210,971)
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (3,186) (2,864) (7,758) (7,881)
Class A Shares (166) (163) (333) (289)
Class B Shares (1) --^ (10) (5)
Class C Shares --^ --^ (7) (1)
Advisor Shares NA NA (1) --^
Distributions from net realized gains:
Institutional Shares -- (10,670) -- --
Class A Shares -- (719) -- --
Class B Shares -- --^ -- --
Class C Shares -- --^ -- --
Advisor Shares NA NA -- --
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (3,353) (14,416) (8,109) (8,176)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (342,077) 157,616 (62,594) (2,197)
---------- ---------- ---------- ----------
Change in net assets (341,276) (41,755) (13,951) (221,344)
Net Assets:
Beginning of period 544,428 586,183 635,330 856,674
---------- ---------- ---------- ----------
End of period $ 203,152 $ 544,428 $ 621,379 $ 635,330
========== ========== ========== ==========
Accumulated Net Investment Income $ 137 $ 95 $ 656 $ 593
========== ========== ========== ==========
BALANCED FUND
------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2003 2002 (b)
--------- ---------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 3,448 $ 3,221
Net realized gains/(losses) on
investment transactions (16,453) (57,814)
Net realized gains/(losses) on
futures transactions -- --
Net change in unrealized appreciation/
depreciation on investments
and futures 27,794 (3,484)
---------- ----------
Change in net assets resulting from operations 14,789 (58,077)
---------- ----------
Distributions from net investment income:
Institutional Shares (2,806) (2,542)
Class A Shares (1,006) (1,074)
Class B Shares (101) (114)
Class C Shares (39) (53)
Advisor Shares (1) --^
Distributions from net realized gains:
Institutional Shares -- (3,358)
Class A Shares -- (1,544)
Class B Shares -- (190)
Class C Shares -- (98)
Advisor Shares -- --^
---------- ----------
Change in net assets from
shareholder distributions (3,953) (8,973)
---------- ----------
Change in net assets from
Fund share transactions (30,491) 22,249
---------- ----------
Change in net assets (19,655) (44,801)
Net Assets:
Beginning of period 289,817 334,618
---------- ----------
End of period $ 270,162 $ 289,817
========== ==========
Accumulated Net Investment Income $ 305 $ 430
========== ==========
- --------------------
(a) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B, Class C and
Advisor Shares.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Advisor Shares.
(c) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B and Class C Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
136-137 Spreads
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP
MICRO CAP VALUE FUND VALUE FUND
--------------------------------------------- ----------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 (c)
---------- ---------- ------------ ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (806) $ (266) $ (32) $ 67
Net realized gains/(losses) on
investment transactions 4,206 1,280 (792) 942
Realized gain distributions
from underlying funds -- -- -- --
Net change in unrealized
appreciation/depreciation
on investments 33,764 (6,424) 6,335 7,069
---------- ---------- ---------- --------
Change in net assets resulting
from operations 37,164 (5,410) 5,511 8,078
---------- ---------- ---------- --------
Distributions from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares (474) -- (6) --
Class A Shares (35) -- -- --
Class B Shares (22) -- -- --
Class C Shares (6) -- -- --
Advisor Shares (138) -- (13) --
---------- ---------- ---------- --------
Change in net assets from
shareholder distributions (675) -- (19) --
---------- ---------- ---------- --------
Change in net assets from
Fund share transactions 40,352 42,878 7,767 65,255
---------- ---------- ---------- --------
Change in net assets 76,841 37,468 13,259 73,333
Net Assets:
Beginning of period 72,894 35,426 22,167 --
---------- ---------- ---------- --------
End of period $ 149,735 $ 72,894 $ 35,426 $ 73,333
========== ========== ========== ========
Accumulated Net Investment Income $ -- $ -- $ -- $ 68
========== ========== ========== ========
DISCIPLINED LARGE CAP
MULTI CAP VALUE FUND VALUE FUND
--------------------------------------------- ----------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002
---------- ---------- ------------ --------- ---------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (48) $ (177) $ 81 $ 3,965 $ 803
Net realized gains/(losses) on
investment transactions (1,746) (3,009) 3,557 10,102 (75)
Realized gain distributions
from underlying funds -- -- -- -- --
Net change in unrealized
appreciation/depreciation
on investments 43,085 (18,947) 1,958 32,421 (15,147)
---------- ---------- --------- --------- ---------
Change in net assets resulting
from operations 41,291 (22,133) 5,596 46,488 (14,419)
---------- ---------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares -- -- (60) (3,363) (741)
Class A Shares -- -- (18) (155) (93)
Class B Shares -- -- (9) (19) (3)
Class C Shares -- -- (1) (5) (1)
Distributions from net realized gains:
Institutional Shares -- -- (827) (2,679) (3,789)
Class A Shares -- -- (289) (184) (632)
Class B Shares -- -- (213) (41) (105)
Class C Shares -- -- (22) (10) (28)
Advisor Shares -- -- (2,182) NA NA
---------- ---------- --------- --------- ---------
Change in net assets from
shareholder distributions -- -- (3,621) (6,456) (5,392)
---------- ---------- --------- --------- ---------
Change in net assets from
Fund share transactions 94,611 64,161 25,207 217,403 5,400
---------- ---------- --------- --------- ---------
Change in net assets 135,902 42,028 27,182 257,435 (14,411)
Net Assets:
Beginning of period 119,420 77,392 50,210 96,924 111,335
---------- ---------- --------- --------- ---------
End of period $ 255,322 $ 119,420 $ 77,392 $ 354,359 $ 96,924
========== ========== ========= ========= =========
Accumulated Net Investment Income $ -- $ -- $ -- $ 449 $ 26
========== ========== ========= ========= =========
LIFEMODEL LIFEMODEL
LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUND SM FUND SM FUND SM FUND SM FUND SM
---------- ---------- ------------ ------------ ------------
PERIOD PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 (d) 2003 (d) 2003 (d) 2003 (d) 2003 (d)
---------- ---------- ------------ ------------ ------------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 61 $ 417 $ 755 $ 585 $ 442
Net realized gains/(losses) on
investment transactions 231 377 (161) 660 110
Realized gain distributions
from underlying funds 7 25 23 12 7
Net change in unrealized
appreciation/depreciation
on investments 7,173 12,123 9,893 4,322 1,286
---------- ---------- ---------- ---------- ----------
Change in net assets resulting
from operations 7,472 12,942 10,510 5,579 1,845
---------- ---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (59) (280) (457) (363) (194)
Class A Shares (5) (78) (146) (96) (107)
Class B Shares --^ (9) (38) (40) (69)
Class C Shares --^ (1) (3) (4) (14)
Distributions from net realized gains:
Institutional Shares -- -- -- -- --
Class A Shares -- -- -- -- --
Class B Shares -- -- -- -- --
Class C Shares -- -- -- -- --
Advisor Shares NA NA NA NA NA
---------- ---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (64) (368) (644) (503) (384)
---------- ---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions 39,222 97,901 106,629 64,885 34,938
---------- ---------- ---------- ---------- ----------
Change in net assets 46,630 110,475 116,495 69,961 36,399
Net Assets:
Beginning of period -- -- -- -- --
---------- ---------- ---------- ---------- ----------
End of period $ 46,630 $ 110,475 $ 116,495 $ 69,961 $ 36,399
========== ========== ========== ========== ==========
Accumulated Net Investment Income $ -- $ 49 $ 112 $ 82 $ 58
========== ========== ========== ========== ==========
- --------------------
(a) Reflects operations for the period from January 1, 2002 through July 31,
2002. The Fund changed its fiscal year end to July 31 from December 31.
(b) Reflects operations for the period from August 13, 2001 (date of
commencement of operations) to December 31, 2001 for Class A, Class B and
Class C Shares.
(c) Reflects operations for the period from April 1, 2003 (date of commencement
of operations) to July 31, 2003.
(d) Reflects operations for the period from August 1, 2002 (date of commencement
of operations) to July 31, 2003.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
138-139 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND TECHNOLOGY FUND
--------------------------------------------- -------------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002 (c)
---------- ---------- ------------ ---------- ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 4,161 $ 1,142 $ 2,335 $ (412) $ (568)
Net realized gains/(losses)
on investment and foreign
currency transactions (382) 74 806 (9,239) (35,082)
Net realized gains on
futures transactions -- -- -- -- --
Net change in unrealized
appreciation/depreciation
on investments, futures and
foreign currency 622 266 1,320 22,870 12,792
---------- ---------- ---------- ---------- ----------
Change in net assets resulting
from operations 4,401 1,482 4,461 13,219 (22,858)
---------- ---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (1,881) (227) (266) -- --
Class A Shares NA NA NA -- --
Class B Shares NA NA NA -- --
Class C Shares (765) (103) (4) -- --
Advisor Shares (1,442) (934) (2,121) -- --
Distributions from net realized gains:
Institutional Shares -- -- -- -- --
Class A Shares NA NA NA -- --
Class B Shares NA NA NA -- --
Class C Shares -- -- -- -- --
Advisor Shares -- -- -- -- --
Return of capital:
Advisor Shares -- -- (1) -- --
---------- ---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (4,088) (1,264) (2,392) -- --
---------- ---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions 90,612 11,659 1,233 (1,348) (4,429)
---------- ---------- ---------- ---------- ----------
Change in net assets 90,925 11,877 3,302 11,871 (27,287)
Net Assets:
Beginning of period 50,879 39,002 35,700 25,220 52,507
---------- ---------- ---------- ---------- ----------
End of period $ 141,804 $ 50,879 $ 39,002 $ 37,091 $ 25,220
========== ========== ========== ========== ==========
Accumulated Net Investment Income $ (50) $ (123) $ -- $ -- $ --
========== ========== ========== ========== ==========
INTERNATIONAL
WORLDWIDE FUND EQUITY FUND
--------------------------------------------- -------------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002
---------- ---------- ------------ ---------- ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (167) $ (221) $ (191) $ 1,445 $ 638
Net realized gains/(losses)
on investment and foreign
currency transactions (868) (1,021) (5,822) (16,332) (13,932)
Net realized gains on
futures transactions -- -- -- 857 1,519
Net change in unrealized
appreciation/depreciation
on investments, futures and
foreign currency 2,280 (2,690) 1,649 19,788 (11,449)
---------- ---------- ---------- ---------- ----------
Change in net assets resulting
from operations 1,245 (3,932) (4,364) 5,758 (23,224)
---------- ---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares -- -- -- (876) (1,853)
Class A Shares NA NA NA (12) (95)
Class B Shares NA NA NA -- (2)
Class C Shares -- -- -- -- (2)
Advisor Shares -- -- -- NA NA
Distributions from net realized gains:
Institutional Shares -- -- (9) -- --
Class A Shares NA NA NA -- --
Class B Shares NA NA NA -- --
Class C Shares -- -- -- -- --
Advisor Shares -- -- (267) NA NA
Return of capital:
Advisor Shares -- -- (4) NA NA
---------- ---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions -- -- (280) (888) (1,952)
---------- ---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (3,496) 1,154 (9,190) 7,352 17,025
---------- ---------- ---------- ---------- ----------
Change in net assets (2,251) (2,778) (13,834) 12,222 (8,151)
Net Assets:
Beginning of period 21,707 24,485 38,319 153,071 161,222
---------- ---------- ---------- ---------- ----------
End of period $ 19,456 $ 21,707 $ 24,485 $ 165,293 $ 153,071
========== ========== ========== ========== ==========
Accumulated Net Investment Income $ -- $ -- $ -- $ 3,140 $ 179
========== ========== ========== ========== ==========
INTERNATIONAL GDP FUND BOND FUND
-------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (d) 2003 2002 (e)
--------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 2,784 $ 2,538 $ 14,581 $ 19,478
Net realized gains/(losses)
on investment and foreign
currency transactions (10,261) (35,232) 15,221 (4,827)
Net realized gains on
futures transactions -- -- -- --
Net change in unrealized
appreciation/depreciation
on investments, futures and
foreign currency 16,693 (40,196) (9,973) 3,641
---------- ---------- ---------- ----------
Change in net assets resulting
from operations 9,216 (72,890) 19,829 18,292
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (1,658) (2,435) (15,437) (20,689)
Class A Shares (25) (50) (834) (808)
Class B Shares -- --^ (259) (176)
Class C Shares --^ --^ (40) (40)
Advisor Shares NA NA (29) (7)
Distributions from net realized gains:
Institutional Shares -- (16,044) -- --
Class A Shares -- (390) -- --
Class B Shares -- --^ -- --
Class C Shares -- --^ -- --
Advisor Shares NA NA -- --
Return of capital:
Advisor Shares NA NA -- --
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (1,683) (18,919) (16,599) (21,720)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (76,141) (117,045) (102,207) 147,844
---------- ---------- ---------- ----------
Change in net assets (68,608) (208,854) (98,977) 144,416
Net Assets:
Beginning of period 276,936 485,790 432,400 287,984
---------- ---------- ---------- ----------
End of period $ 208,328 $ 276,936 $ 333,423 $ 432,400
========== ========== ========== ==========
Accumulated Net Investment Income $ 3,094 $ 1,399 $ 55 $ 52
========== ========== ========== ==========
- -------------------
(a) Reflects operations for the period from January 1, 2002 through July 31,
2002. The Fund changed its fiscal year end to July 31 from December 31.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class C Shares.
(c) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Advisor Shares.
(d) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class B and Class C
Shares.
(e) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class B, Class C and
Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
140-141 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND SHORT TERM BOND FUND
----------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 30,721 $ 36,132 $ 11,349 $ 10,825
Net realized gains on
investment transactions 31,963 2,628 5,377 633
Net change in unrealized
appreciation/depreciation
on investments (23,525) 12,097 (4,210) 1,767
---------- ---------- ---------- ----------
Change in net assets resulting
from operations 39,159 50,857 12,516 13,225
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (32,749) (38,749) (15,973) (13,086)
Class A Shares (1,379) (1,249) (922) (309)
Class B Shares (145) (30) NA NA
Class C Shares (50) (16) NA NA
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- NA NA
Class C Shares -- -- NA NA
Advisor Shares NA NA NA NA
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (34,323) (40,044) (16,895) (13,395)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (22,942) 152,145 204,682 87,287
---------- ---------- ---------- ----------
Change in net assets (18,106) 162,958 200,303 87,117
Net Assets:
Beginning of period 834,996 672,038 323,901 236,784
---------- ---------- ---------- ----------
End of period $ 816,890 $ 834,996 $ 524,204 $ 323,901
========== ========== ========== ==========
Accumulated Net Investment
Income $ 54 $ 148 $ 63 $ 24
========== ========== ========== ==========
U.S. GOVERNMENT
BOND FUND MUNICIPAL BOND FUND
-------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 2003 2002 (b)
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 1,979 $ 2,342 $ 3,676 $ 4,749
Net realized gains on
investment transactions 2,078 1,382 1,455 1,704
Net change in unrealized
appreciation/depreciation
on investments (2,089) 492 (1,659) 911
---------- ---------- ---------- ----------
Change in net assets resulting
from operations 1,968 4,216 3,472 7,364
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (1,566) (1,914) (3,539) (4,670)
Class A Shares (299) (237) (89) (51)
Class B Shares NA NA (27) (4)
Class C Shares (108) (49) (14) (3)
Advisor Shares NA NA (13) (1)
Distributions from net realized gains:
Institutional Shares (838) -- (1,357) (2,794)
Class A Shares (174) -- (30) (24)
Class B Shares NA NA (12) --^
Class C Shares (66) -- (6) (1)
Advisor Shares NA NA (5) --^
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (3,051) (2,200) (5,092) (7,548)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions 11,283 6,475 (26,594) (19,710)
---------- ---------- ---------- ----------
Change in net assets 10,200 8,491 (28,214) (19,894)
Net Assets:
Beginning of period 61,868 53,377 106,602 126,496
---------- ---------- ---------- ----------
End of period $ 72,068 $ 61,868 $ 78,388 $ 106,602
========== ========== ========== ==========
Accumulated Net Investment
Income $ 144 $ 119 $ (1) $ 20
========== ========== ========== ==========
INTERMEDIATE OHIO
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
-------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 11,219 $ 11,841 $ 6,659 $ 7,063
Net realized gains on
investment transactions 3,418 4,215 747 1,360
Net change in unrealized
appreciation/depreciation
on investments (5,229) 6,401 (2,274) 2,224
---------- ---------- ---------- ----------
Change in net assets resulting
from operations 9,408 22,457 5,132 10,647
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (10,926) (11,522) (5,666) (6,146)
Class A Shares (157) (151) (711) (571)
Class B Shares (17) (2) (107) (57)
Class C Shares (19) (5) (144) (62)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (2,215) (5,020) -- --
Class A Shares (37) (91) -- --
Class B Shares (4) -- -- --
Class C Shares (5) -- -- --
Advisor Shares NA NA NA NA
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (13,380) (16,791) (6,628) (6,836)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (36,580) 102,863 (4,924) 7,028
---------- ---------- ---------- ----------
Change in net assets (40,552) 108,529 (6,420) 10,839
Net Assets:
Beginning of period 351,662 243,133 194,571 183,732
---------- ---------- ---------- ----------
End of period $ 311,110 $ 351,662 $ 188,151 $ 194,571
========== ========== ========== ==========
Accumulated Net Investment
Income $ 37 $ 38 $ --^ $ 20
========== ========== ========== ==========
MICHIGAN
MUNICIPAL BOND FUND
-------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2002 2002 (a)
---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 3,546 $ 3,269
Net realized gains on
investment transactions 186 514
Net change in unrealized
appreciation/depreciation
on investments (983) 1,208
---------- ----------
Change in net assets resulting
from operations 2,749 4,991
---------- ----------
Distributions from net investment income:
Institutional Shares (3,306) (3,126)
Class A Shares (158) (128)
Class B Shares (20) (3)
Class C Shares (55) (7)
Advisor Shares NA NA
Distributions from net realized gains:
Institutional Shares (351) (399)
Class A Shares (18) (18)
Class B Shares (2) --^
Class C Shares (8) --^
Advisor Shares NA NA
---------- ----------
Change in net assets from
shareholder distributions (3,918) (3,681)
---------- ----------
Change in net assets from
Fund share transactions 33,006 15,578
---------- ----------
Change in net assets 31,837 16,888
Net Assets:
Beginning of period 101,013 84,125
---------- ----------
End of period $ 132,850 $ 101,013
========== ==========
Accumulated Net Investment
Income $ 5 $ (1)
========== ==========
- -------------------
(a) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B and Class C Shares.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B, Class C and
Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
142-143 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND LARGE CAP OPPORTUNITY FUND
------------------------ ----------------------- ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002 (b) 2003 2002
--------- ---------- ---------- ---------- --------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 119,416 $ 168,440 $ 194,298 $ 131,979 $ 3,179 $ 2,257
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- 21,724 -- 8,553 -- --
Shares redeemed (269,035) (278,357) (120,202) (94,558) (5,141) (9,148)
---------- ---------- ---------- ---------- --------- ---------
Total Institutional Shares (149,619) (88,193) 74,096 45,974 (1,962) (6,891)
---------- ---------- ---------- ---------- --------- ---------
Class A Shares
Shares issued 61,016 32,941 27,619 64,449 812 329
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- 608 -- 1,274 -- --
Shares redeemed (62,980) (33,789) (26,771) (62,434) (1,675) (6,547)
---------- ---------- ---------- ---------- --------- ---------
Total Class A Shares (1,964) (240) 848 3,289 (863) (6,218)
---------- ---------- ---------- ---------- --------- ---------
Class B Shares
Shares issued 525 1,096 854 3,836 108 231
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- --^ -- 145 -- --
Shares redeemed (169) (21) (814) (642) (43) (7)
---------- ---------- ---------- ---------- --------- ---------
Total Class B Shares 356 1,075 40 3,339 65 224
---------- ---------- ---------- ---------- --------- ---------
Class C Shares
Shares issued 131 569 518 457 6 24
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- --^ -- 49 -- --
Shares redeemed (89) (109) (233) (312) (105) (670)
---------- ---------- ---------- ---------- --------- ---------
Total Class C Shares 42 460 285 194 (99) (646)
---------- ---------- ---------- ---------- --------- ---------
Advisor Shares
Shares issued 262 306 158 196 NA NA
Dividends reinvested -- --^ -- --^ NA NA
Shares redeemed (71) (16) (87) -- NA NA
---------- ---------- ---------- ---------- --------- ---------
Total Advisor Shares 191 290 71 196 NA NA
---------- ---------- ---------- ---------- --------- ---------
Change from capital transactions $ (150,994) $ (86,608) $ 75,340 $ 52,992 $ (2,859) $ (13,531)
========== ========== ========== ========== ========= =========
Share Transactions:
Institutional Shares
Shares issued 9,065 10,264 19,279 10,085 186 102
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- 1,254 -- 586 -- --
Shares redeemed (19,861) (16,625) (11,658) (7,317) (299) (416)
---------- ---------- ---------- ---------- --------- ---------
Total Institutional Shares (10,796) (5,107) 7,621 3,354 (113) (314)
---------- ---------- ---------- ---------- --------- ---------
Class A Shares
Shares issued 4,684 2,031 2,781 4,860 49 15
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- 36 -- 88 -- --
Shares redeemed (4,850) (2,062) (2,763) (4,725) (99) (299)
---------- ---------- ---------- ---------- --------- ---------
Total Class A Shares (166) 5 18 223 (50) (284)
---------- ---------- ---------- ---------- --------- ---------
Class B Shares
Shares issued 39 65 84 291 7 10
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- --^ -- 10 -- --
Shares redeemed (13) (1) (82) (52) (3) --^
---------- ---------- ---------- ---------- --------- ---------
Total Class B Shares 26 64 2 249 4 10
---------- ---------- ---------- ---------- --------- ---------
Class C Shares
Shares issued 10 32 51 36 --^ 1
Shares issued in merger -- -- -- -- -- --
Dividends reinvested -- --^ -- 4 -- --
Shares redeemed (7) (7) (25) (28) (6) (31)
---------- ---------- ---------- ---------- --------- ---------
Total Class C Shares 3 25 26 12 (6) (30)
---------- ---------- ---------- ---------- --------- ---------
Advisor Shares
Shares issued 19 17 15 14 NA NA
Dividends reinvested -- --^ -- --^ NA NA
Shares redeemed (5) (1) (9) -- NA NA
---------- ---------- ---------- ---------- --------- ---------
Total Advisor Shares 14 16 6 14 NA NA
---------- ---------- ---------- ---------- --------- ---------
Change from share transactions (10,919) (4,997) 7,673 3,852 (165) (618)
========== ========== ========== ========== ========= =========
QUALITY GROWTH FUND LARGE CAP CORE FUND EQUITY INDEX FUND
------------------------ ----------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (b) 2003 2002 (c) 2003 2002 (a)
---------- --------- ---------- ---------- ---------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 301,476 $ 197,342 $ 38,891 $ 173,281 $ 137,684 $ 200,646
Shares issued in merger -- -- -- 153,140 -- --
Dividends reinvested 24 24,358 1,343 11,686 5,933 5,997
Shares redeemed (151,743) (127,906) (379,356) (174,880) (214,448) (210,470)
---------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares 149,757 93,794 (339,122) 163,227 (70,831) (3,827)
---------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 268,571 69,514 3,436 5,237 51,715 6,739
Shares issued in merger -- -- -- 682 -- --
Dividends reinvested -- 10,249 159 857 315 276
Shares redeemed (296,493) (96,076) (6,717) (12,845) (45,920) (7,652)
---------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares (27,922) (16,313) (3,122) (6,069) 6,110 (637)
---------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 2,929 15,253 254 333 1,155 1,740
Shares issued in merger -- -- -- 125 -- --
Dividends reinvested -- 605 1 1 10 5
Shares redeemed (3,556) (2,967) (95) (25) (262) (138)
---------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares (627) 12,891 160 434 903 1,607
---------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 1,454 2,007 9 9 1,121 666
Shares issued in merger -- -- -- 15 -- --
Dividends reinvested -- 383 --^ --^ 4 --^
Shares redeemed (1,775) (2,255) (2) --^ (196) (13)
---------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares (321) 135 7 24 929 653
---------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 788 519 NA NA 295 7
Dividends reinvested -- --^ NA NA 1 --^
Shares redeemed (69) (50) NA NA (1) --
---------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 719 469 NA NA 295 7
---------- ---------- ---------- ---------- ---------- ----------
Change from capital transactions $ 121,606 $ 90,976 $ (342,077) $ 157,616 $ (62,594) $ (2,197)
========== ========== ========== ========== ========== ==========
Share Transactions:
Institutional Shares
Shares issued 24,210 11,678 3,552 7,649 7,966 9,573
Shares issued in merger -- -- -- 14,672 -- --
Dividends reinvested 2 1,327 126 821 348 292
Shares redeemed (12,126) (7,893) (34,872) (12,740) (12,426) (10,533)
---------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares 12,086 5,112 (31,194) 10,402 (4,112) (668)
---------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 22,353 4,321 323 364 3,101 332
Shares issued in merger -- -- -- 66 -- --
Dividends reinvested -- 563 15 61 18 13
Shares redeemed (24,690) (6,080) (625) (958) (2,777) (379)
---------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares (2,337) (1,196) (287) (467) 342 (34)
---------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 239 926 24 22 66 84
Shares issued in merger -- -- -- 12 -- --
Dividends reinvested -- 34 --^ --^ 1 --^
Shares redeemed (295) (196) (9) (2) (15) (8)
---------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares (56) 764 15 32 52 76
---------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 121 125 --^ 1 65 38
Shares issued in merger -- -- -- 1 -- --
Dividends reinvested -- 22 --^ --^ --^ --^
Shares redeemed (151) (149) --^ --^ (11) (1)
---------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares (30) (2) --^ 2 54 37
---------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 63 33 NA NA 17 --
Dividends reinvested -- --^ NA NA --^ --^
Shares redeemed (6) (4) NA NA --^ --
---------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 57 29 NA NA 17 --^
---------- ---------- ---------- ---------- ---------- ----------
Change from share transactions 9,720 4,707 (31,466) 9,969 (3,647) (589)
========== ========== ========== ========== ========== ==========
BALANCED FUND
------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2003 2002 (b)
---------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 31,468 $ 81,029
Shares issued in merger -- --
Dividends reinvested 2,514 5,598
Shares redeemed (53,940) (65,014)
---------- ----------
Total Institutional Shares (19,958) 21,613
---------- ----------
Class A Shares
Shares issued 11,884 21,142
Shares issued in merger -- --
Dividends reinvested 976 2,609
Shares redeemed (23,423) (29,315)
---------- ----------
Total Class A Shares (10,563) (5,564)
---------- ----------
Class B Shares
Shares issued 2,101 9,271
Shares issued in merger -- --
Dividends reinvested 97 295
Shares redeemed (2,765) (2,798)
---------- ----------
Total Class B Shares (567) 6,768
---------- ----------
Class C Shares
Shares issued 2,040 1,002
Shares issued in merger -- --
Dividends reinvested 38 148
Shares redeemed (1,543) (1,763)
---------- ----------
Total Class C Shares 535 (613)
---------- ----------
Advisor Shares
Shares issued 62 45
Dividends reinvested 1 --^
Shares redeemed (1) --
---------- ----------
Total Advisor Shares 62 45
---------- ----------
Change from capital transactions $ (30,491) $ 22,249
========== ==========
Share Transactions:
Institutional Shares
Shares issued 2,874 6,431
Shares issued in merger -- --
Dividends reinvested 231 428
Shares redeemed (4,939) (5,245)
---------- ----------
Total Institutional Shares (1,834) 1,614
---------- ----------
Class A Shares
Shares issued 1,078 1,726
Shares issued in merger -- --
Dividends reinvested 90 200
Shares redeemed (2,158) (2,420)
---------- ----------
Total Class A Shares (990) (494)
---------- ----------
Class B Shares
Shares issued 195 748
Shares issued in merger -- --
Dividends reinvested 9 23
Shares redeemed (259) (239)
---------- ----------
Total Class B Shares (55) 532
---------- ----------
Class C Shares
Shares issued 193 80
Shares issued in merger -- --
Dividends reinvested 4 11
Shares redeemed (145) (148)
---------- ----------
Total Class C Shares 52 (57)
---------- ----------
Advisor Shares
Shares issued 5 4
Dividends reinvested --^ --^
Shares redeemed --^ --
---------- ----------
Total Advisor Shares 5 4
---------- ----------
Change from share transactions (2,822) 1,599
========== ==========
- ------------------
(a) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B, Class C and
Advisor Shares.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Advisor Shares.
(c) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B and Class C Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
144-145 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP
MICRO CAP VALUE FUND VALUE FUND
--------------------------------------- ---------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 (c)
--------- --------- ------------ ---------
Capital Transactions:
Institutional Shares
Shares issued $ 70,029 $ 37,037 $ 8,512 $ 69,536
Dividends reinvested 469 -- 6 --
Shares redeemed (40,901) (2,562) (2,275) (4,795)
--------- --------- --------- ---------
Total Institutional Shares 29,597 34,475 6,243 64,741
--------- --------- --------- ---------
Class A Shares
Shares issued 14,353 5,299 887 230
Dividends reinvested 35 -- -- --
Shares redeemed (4,079) (619) (62) (27)
--------- --------- --------- ---------
Total Class A Shares 10,309 4,680 825 203
--------- --------- --------- ---------
Class B Shares
Shares issued 990 2,824 338 96
Dividends reinvested 22 -- -- --
Shares redeemed (579) (164) (4) --
--------- --------- --------- ---------
Total Class B Shares 433 2,660 334 96
--------- --------- --------- ---------
Class C Shares
Shares issued 463 830 57 14
Dividends reinvested 5 -- -- --
Shares redeemed (292) (87) -- --
--------- --------- ---------- ---------
Total Class C Shares 176 743 57 14
--------- --------- --------- ---------
Advisor Shares
Shares issued 6,924 7,174 7,497 201
Dividends reinvested 119 -- 11 --
Shares redeemed (7,206) (6,854) (7,200) --
--------- --------- --------- ---------
Total Advisor Shares (163) 320 308 201
--------- --------- --------- ---------
Change from capital transactions $ 40,352 $ 42,878 $ 7,767 $ 65,255
========= ========= ========= =========
Share Transactions:
Institutional Shares
Shares issued 11,089 5,655 1,520 4,435
Dividends reinvested 77 -- 1 --
Shares redeemed (6,613) (405) (411) (286)
--------- --------- --------- ---------
Total Institutional Shares 4,553 5,250 1,110 4,149
--------- --------- --------- ---------
Class A Shares
Shares issued 2,083 815 156 14
Dividends reinvested 6 -- -- --
Shares redeemed (689) (96) (11) (2)
--------- --------- --------- ---------
Total Class A Shares 1,400 719 145 12
--------- --------- --------- ---------
Class B Shares
Shares issued 156 435 60 6
Dividends reinvested 4 -- -- --
Shares redeemed (94) (26) (1) --
--------- --------- --------- ---------
Total Class B Shares 66 409 59 6
--------- --------- --------- ---------
Class C Shares
Shares issued 72 127 10 1
Dividends reinvested 1 -- -- --
Shares redeemed (50) (14) -- --
--------- --------- --------- ---------
Total Class C Shares 23 113 10 1
--------- --------- --------- ---------
Advisor Shares
Shares issued 1,030 1,119 1,336 12
Dividends reinvested 20 -- 2 --
Shares redeemed (1,155) (1,086) (1,278) --
--------- --------- --------- ---------
Total Advisor Shares (105) 33 60 12
--------- --------- --------- ---------
Change from share transactions 5,937 6,524 1,384 4,180
========= ========= ========= =========
DISCIPLINED LARGE CAP
MULTI CAP VALUE FUND VALUE FUND
--------------------------------------- ------------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002
---------- --------- ------------ --------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 145,360 $ 44,105 $ 21,423 $ 271,093 $ 19,223
Dividends reinvested -- 471 382 3,450 3,867
Shares redeemed (42,995) (4,328) (5,074) (58,036) (18,434)
---------- ---------- --------- ---------- ----------
Total Institutional Shares 102,365 40,248 16,731 216,507 4,656
---------- ---------- --------- ---------- ----------
Class A Shares
Shares issued 173,850 34,676 6,148 4,193 2,707
Dividends reinvested -- 2 300 321 723
Shares redeemed (174,716) (20,225) (308) (4,113) (4,147)
---------- ---------- --------- ---------- ----------
Total Class A Shares (866) 14,453 6,140 401 (717)
---------- ---------- --------- ---------- ----------
Class B Shares
Shares issued 2,576 9,912 4,432 786 1,966
Dividends reinvested -- 3 218 58 102
Shares redeemed (2,169) (904) (71) (582) (642)
---------- ---------- --------- ---------- ----------
Total Class B Shares 407 9,011 4,579 262 1,426
---------- ---------- --------- ---------- ----------
Class C Shares
Shares issued 842 1,664 475 295 168
Dividends reinvested -- --^ 15 14 27
Shares redeemed (680) (237) -- (76) (160)
---------- ---------- --------- ---------- ----------
Total Class C Shares 162 1,427 490 233 35
---------- ---------- --------- ---------- ----------
Advisor Shares
Shares issued 3,535 3,003 9,156 NA NA
Dividends reinvested -- 2 2,002 NA NA
Shares redeemed (10,992) (3,983) (13,891) NA NA
---------- ---------- --------- ---------- ----------
Total Advisor Shares (7,457) (978) (2,733) NA NA
---------- ---------- --------- ---------- ----------
Change from capital transactions $ 94,611 $ 64,161 $ 25,207 $ 217,403 $ 5,400
========== ========== ========= ========== ==========
Share Transactions:
Institutional Shares
Shares issued 9,108 2,416 1,135 26,178 1,632
Dividends reinvested -- 25 20 321 317
Shares redeemed (2,659) (241) (262) (5,616) (1,552)
---------- ---------- --------- ---------- ----------
Total Institutional Shares 6,449 2,200 893 20,883 397
---------- ---------- --------- ---------- ----------
Class A Shares
Shares issued 11,165 1,952 336 390 229
Dividends reinvested -- --^ 16 30 59
Shares redeemed (11,266) (1,144) (16) (391) (351)
---------- ---------- --------- ---------- ----------
Total Class A Shares (101) 808 336 29 (63)
---------- ---------- --------- ---------- ----------
Class B Shares
Shares issued 160 539 242 75 161
Dividends reinvested -- --^ 11 5 8
Shares redeemed (139) (53) (4) (56) (55)
---------- ---------- --------- ---------- ----------
Total Class B Shares 21 486 249 24 114
---------- ---------- --------- ---------- ----------
Class C Shares
Shares issued 51 91 25 29 14
Dividends reinvested -- --^ 1 1 2
Shares redeemed (44) (15) -- (8) (14)
---------- ---------- --------- ---------- ----------
Total Class C Shares 7 76 26 22 2
---------- ---------- --------- ---------- ----------
Advisor Shares
Shares issued 220 164 486 NA NA
Dividends reinvested -- -- --^ 104 NA
Shares redeemed (687) (228) (738) NA NA
---------- ---------- --------- ---------- ----------
Total Advisor Shares (467) (64) (148) NA NA
---------- ---------- --------- ---------- ----------
Change from share transactions 5,909 3,506 1,356 20,958 450
========== ========== ========= ========== ==========
LIFEMODEL LIFEMODEL
LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUND SM FUND SM FUND SM FUND SM FUND SM
---------- ---------- ---------- ------------ ------------
PERIOD PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 (d) 2003 (d) 2003 (d) 2003 (d) 2003 (d)
---------- ---------- --------- ------------ ------------
Capital Transactions:
Institutional Shares
Shares issued $ 34,635 $ 63,887 $ 70,787 $ 46,382 $ 18,975
Dividends reinvested 58 272 447 346 191
Shares redeemed (8,570) (10,742) (6,650) (10,261) (3,965)
---------- ---------- ---------- ---------- ----------
Total Institutional Shares 26,123 53,417 64,584 36,467 15,201
---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 9,473 32,101 30,233 20,132 10,175
Dividends reinvested 5 77 144 94 106
Shares redeemed (64) (592) (3,365) (1,384) (1,213)
---------- ---------- ---------- ---------- ----------
Total Class A Shares 9,414 31,586 27,012 18,842 9,068
---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 3,333 12,080 14,479 8,987 9,135
Dividends reinvested --^ 9 37 38 65
Shares redeemed (138) (491) (754) (421) (678)
---------- ---------- ---------- ---------- ----------
Total Class B Shares 3,195 11,598 13,762 8,604 8,522
---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 493 1,351 1,360 1,128 2,253
Dividends reinvested --^ 1 3 4 13
Shares redeemed (3) (52) (92) (160) (119)
---------- ---------- ---------- ---------- ----------
Total Class C Shares 490 1,300 1,271 972 2,147
---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA NA NA NA
Dividends reinvested NA NA NA NA NA
Shares redeemed NA NA NA NA NA
---------- ---------- ---------- ---------- ----------
Total Advisor Shares NA NA NA NA NA
---------- ---------- ---------- ---------- ----------
Change from capital transactions $ 39,222 $ 97,901 $ 106,629 $ 64,885 $ 34,938
========== ========== ========== ========== ==========
Share Transactions:
Institutional Shares
Shares issued 3,655 6,363 7,142 4,756 1,879
Dividends reinvested 6 25 43 33 18
Shares redeemed (805) (982) (642) (983) (378)
---------- ---------- ---------- ---------- ----------
Total Institutional Shares 2,856 5,406 6,543 3,806 1,519
---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 898 2,966 2,964 1,965 997
Dividends reinvested --^ 7 14 9 10
Shares redeemed (7) (55) (325) (140) (116)
---------- ---------- ---------- ---------- ----------
Total Class A Shares 891 2,918 2,653 1,834 891
---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 331 1,137 1,414 897 896
Dividends reinvested --^ 1 4 4 6
Shares redeemed (13) (46) (75) (42) (65)
---------- ---------- ---------- ---------- ----------
Total Class B Shares 318 1,092 1,343 859 837
---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 47 125 130 112 221
Dividends reinvested --^ --^ --^ --^ 1
Shares redeemed --^ (5) (8) (16) (12)
---------- ---------- ---------- ---------- ----------
Total Class C Shares 47 120 122 96 210
---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA NA NA NA
Dividends reinvested NA NA NA NA NA
Shares redeemed NA NA NA NA NA
---------- ---------- ---------- ---------- ----------
Total Advisor Shares NA NA NA NA NA
---------- ---------- ---------- ---------- ----------
Change from share transactions 4,112 9,536 10,661 6,595 3,457
========== ========== ========== ========== ==========
- ------------------
(a) Reflects operations for the period from January 1, 2002 through July 31,
2002. The Fund changed its fiscal year end to July 31 from December 31.
(b) Reflects operations for the period from August 13, 2001 (date of
commencement of operations) to December 31, 2001 for Class A, Class B and
Class C Shares.
(c) Reflects operations for the period from April 1, 2003 (date of commencement
of operations) to July 31, 2003.
(d) Reflects operations for the period from August 1, 2002 (date of commencement
of operations) to July 31, 2003.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
146-147 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND TECHNOLOGY FUND
--------------------------------------- -----------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002 (c)
--------- --------- ------------ --------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 61,812 $ 9,034 $ 2,083 $ 9,882 $ 10,767
Shares issued in merger -- -- -- -- --
Dividends reinvested 291 49 155 -- --
Shares redeemed (5,919) (727) (2,651) (12,497) (16,122)
--------- --------- --------- --------- ---------
Total Institutional Shares 56,184 8,356 (413) (2,615) (5,355)
--------- --------- --------- --------- ---------
Class A Shares
Shares issued NA NA NA 2,131 1,896
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- --
Shares redeemed NA NA NA (1,824) (1,380)
--------- --------- --------- --------- ---------
Total Class A Shares NA NA NA 307 516
--------- --------- --------- --------- ---------
Class B Shares
Shares issued NA NA NA 375 498
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- --
Shares redeemed NA NA NA (302) (166)
--------- --------- --------- --------- ---------
Total Class B Shares NA NA NA 73 332
--------- --------- --------- --------- ---------
Class C Shares
Shares issued 32,526 6,708 1,777 1,439 211
Shares issued in merger -- -- -- -- --
Dividends reinvested 487 46 1 -- --
Shares redeemed (3,069) (350) (22) (591) (147)
--------- --------- --------- --------- ---------
Total Class C Shares 29,944 6,404 1,756 848 64
--------- --------- --------- --------- ---------
Advisor Shares
Shares issued 23,160 18,472 10,925 43 14
Dividends reinvested 1,187 624 1,478 -- --
Shares redeemed (19,863) (22,197) (12,513) (4) --^
--------- --------- --------- --------- ---------
Total Advisor Shares 4,484 (3,101) (110) 39 14
--------- --------- --------- --------- ---------
Change from capital transactions $ 90,612 $ 11,659 $ 1,233 $ (1,348) $ (4,429)
========= ========= ========= ========= =========
Share Transactions:
Institutional Shares
Shares issued 5,632 847 195 1,503 1,252
Shares issued in merger -- -- -- -- --
Dividends reinvested 26 5 15 -- --
Shares redeemed (537) (68) (249) (1,928) (1,857)
--------- --------- --------- --------- ---------
Total Institutional Shares 5,121 784 (39) (425) (605)
--------- --------- --------- --------- ---------
Class A Shares
Shares issued NA NA NA 312 216
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- --
Shares redeemed NA NA NA (299) (169)
--------- --------- --------- --------- ---------
Total Class A Shares NA NA NA 13 47
--------- --------- --------- --------- ---------
Class B Shares
Shares issued NA NA NA 58 58
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- --
Shares redeemed NA NA NA (46) (21)
--------- --------- --------- --------- ---------
Total Class B Shares NA NA NA 12 37
--------- --------- --------- --------- ---------
Class C Shares
Shares issued 2,958 634 169 181 23
Shares issued in merger -- -- -- -- --
Dividends reinvested 45 4 -- -- --
Shares redeemed (281) (33) (2) (71) (19)
--------- --------- --------- --------- ---------
Total Class C Shares 2,722 605 167 110 4
--------- --------- --------- --------- ---------
Advisor Shares
Shares issued 2,133 1,738 1,022 6 1
Dividends reinvested 109 59 141 -- --
Shares redeemed (1,848) (2,089) (1,175) (1) --
--------- --------- --------- --------- ---------
Total Advisor Shares 394 (292) (12) 5 1
--------- --------- --------- --------- ---------
Change from share transactions 8,237 1,097 116 (285) (516)
========= ========= ========= ========= =========
WORLDWIDE FUND INTERNATIONAL EQUITY FUND
-------------------------------------- -------------------------
YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, DECEMBER 31, JULY 31, JULY 31,
2003 2002 (a) 2001 (b) 2003 2002
--------- --------- ------------ --------- -----------
Capital Transactions:
Institutional Shares
Shares issued $ 1,854 $ 1,934 $ 2,696 $ 76,577 $ 90,895
Shares issued in merger -- -- -- -- --
Dividends reinvested -- -- 9 571 1,350
Shares redeemed (1,662) (988) (1,033) (70,180) (73,699)
--------- --------- ---------- ---------- -----------
Total Institutional Shares 192 946 1,672 6,968 18,546
--------- --------- ---------- ---------- -----------
Class A Shares
Shares issued NA NA NA 104,039 102,462
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA 10 71
Shares redeemed NA NA NA (103,907) (104,152)
--------- --------- ---------- ---------- -----------
Total Class A Shares NA NA NA 142 (1,619)
--------- --------- ---------- ---------- -----------
Class B Shares
Shares issued NA NA NA 121 173
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- 2
Shares redeemed NA NA NA (36) (67)
--------- --------- ---------- ---------- -----------
Total Class B Shares NA NA NA 85 108
--------- --------- ---------- ---------- -----------
Class C Shares
Shares issued 59 310 99 4,447 35
Shares issued in merger -- -- -- -- --
Dividends reinvested -- -- -- -- 1
Shares redeemed (71) (21) -- (4,290) (46)
--------- --------- ---------- ---------- -----------
Total Class C Shares (12) 289 99 157 (10)
--------- --------- ---------- ---------- -----------
Advisor Shares
Shares issued 41,579 20,404 2,849 NA NA
Dividends reinvested -- -- 256 NA NA
Shares redeemed (45,255) (20,485) (14,066) NA NA
--------- --------- ---------- ---------- -----------
Total Advisor Shares (3,676) (81) (10,961) NA NA
--------- --------- ---------- ---------- -----------
Change from capital transactions $ (3,496) $ 1,154 $ (9,190) $ 7,352 $ 17,025
========= ========= ========== ========== ===========
Share Transactions:
Institutional Shares
Shares issued 183 161 219 10,771 10,931
Shares issued in merger -- -- -- -- --
Dividends reinvested -- -- 1 81 164
Shares redeemed (166) (82) (89) (9,838) (8,827)
--------- --------- ---------- ---------- -----------
Total Institutional Shares 17 79 131 1,014 2,268
--------- --------- ---------- ---------- -----------
Class A Shares
Shares issued NA NA NA 14,769 12,275
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA 1 9
Shares redeemed NA NA NA (14,604) (12,405)
--------- --------- ---------- ---------- -----------
Total Class A Shares NA NA NA 166 (121)
--------- --------- ---------- ---------- -----------
Class B Shares
Shares issued NA NA NA 17 21
Shares issued in merger NA NA NA -- --
Dividends reinvested NA NA NA -- --
Shares redeemed NA NA NA (5) (8)
--------- --------- ---------- ---------- -----------
Total Class B Shares NA NA NA 12 13
--------- --------- ---------- ---------- -----------
Class C Shares
Shares issued 6 26 8 676 4
Shares issued in merger -- -- -- -- --
Dividends reinvested -- -- -- -- --
Shares redeemed (7) (2) -- (652) (6)
--------- --------- ---------- ---------- -----------
Total Class C Shares (1) 24 8 24 (2)
--------- --------- ---------- ---------- -----------
Advisor Shares
Shares issued 4,201 1,726 228 NA NA
Dividends reinvested -- -- 21 NA NA
Shares redeemed (4,573) (1,720) (1,120) NA NA
--------- --------- ---------- ---------- -----------
Total Advisor Shares (372) 6 (871) NA NA
--------- --------- ---------- ---------- -----------
Change from share transactions (356) 109 (732) 1,216 2,158
========= ========= ========== ========== ===========
INTERNATIONAL GDP FUND BOND FUND
------------------------ -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (d) 2003 2002 (e)
--------- ---------- ---------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 108,204 $ 264,957 $ 47,722 $ 45,860
Shares issued in merger -- -- -- 207,400
Dividends reinvested 870 16,963 4,943 6,381
Shares redeemed (183,500) (392,584) (156,060) (134,595)
--------- ---------- ---------- ----------
Total Institutional Shares (74,426) (110,664) (103,395) 125,046
--------- ---------- ---------- ----------
Class A Shares
Shares issued 89,382 88,902 8,055 11,201
Shares issued in merger -- -- -- 12,985
Dividends reinvested 19 409 669 778
Shares redeemed (91,124) (95,746) (8,142) (11,007)
--------- ---------- ---------- ----------
Total Class A Shares (1,723) (6,435) 582 13,957
--------- ---------- ---------- ----------
Class B Shares
Shares issued 16 53 2,249 3,884
Shares issued in merger -- -- -- 3,735
Dividends reinvested -- --^ 228 155
Shares redeemed (2) -- (1,938) (870)
--------- ---------- ---------- ----------
Total Class B Shares 14 53 539 6,904
--------- ---------- ---------- ----------
Class C Shares
Shares issued 3,649 1 502 329
Shares issued in merger -- -- -- 1,357
Dividends reinvested --^ --^ 39 37
Shares redeemed (3,655) --^ (485) (503)
--------- ---------- ---------- ----------
Total Class C Shares (6) 1 56 1,220
--------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 388 711
Dividends reinvested NA NA 21 6
Shares redeemed NA NA (398) --^
--------- ---------- ---------- ----------
Total Advisor Shares NA NA 11 717
--------- ---------- ---------- ----------
Change from capital transactions $ (76,141) $ (117,045) $ (102,207) $ 147,844
========= ========== ========== ==========
Share Transactions:
Institutional Shares
Shares issued 11,549 22,479 4,677 4,849
Shares issued in merger -- -- -- 20,471
Dividends reinvested 94 1,461 487 646
Shares redeemed (19,403) (33,508) (15,340) (13,593)
--------- ---------- ---------- ----------
Total Institutional Shares (7,760) (9,568) (10,176) 12,373
---------- ---------- ---------- ----------
Class A Shares
Shares issued 9,882 7,893 787 1,146
Shares issued in merger -- -- -- 1,284
Dividends reinvested 2 36 66 79
Shares redeemed (9,969) (8,378) (798) (1,119)
--------- ---------- ---------- ----------
Total Class A Shares (85) (449) 55 1,390
--------- ---------- ---------- ----------
Class B Shares
Shares issued 1 5 222 395
Shares issued in merger -- -- -- 369
Dividends reinvested -- --^ 22 16
Shares redeemed --^ -- (190) (89)
--------- ---------- ---------- ----------
Total Class B Shares 1 5 54 691
--------- ---------- ---------- ----------
Class C Shares
Shares issued 396 --^ 49 33
Shares issued in merger -- -- -- 134
Dividends reinvested --^ --^ 4 4
Shares redeemed (395) --^ (48) (51)
--------- ---------- ---------- ----------
Total Class C Shares 1 --^ 5 120
--------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 38 72
Dividends reinvested NA NA 2 1
Shares redeemed NA NA (39) --
--------- ---------- ---------- ----------
Total Advisor Shares NA NA 1 73
--------- ---------- ---------- ----------
Change from share transactions (7,843) (10,012) (10,061) 14,647
========= ========== ========== ==========
- ---------------------
(a) Reflects operations for the period from January 1, 2002 through July 31,
2002. The Fund changed its fiscal year end to July 31 from December 31.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class C Shares.
(c) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Advisor Shares.
(d) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class B and Class C
Shares.
(e) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to December 31, 2001 for Class B, Class C and
Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
148-149 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
INTERMEDIATE BOND FUND SHORT TERM BOND FUND BOND FUND
----------------------- ------------------------ ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002 2003 2002
--------- ---------- ---------- ------------ --------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 203,432 $ 183,278 $ 339,109 $ 181,547 $ 16,333 $ 11,823
Shares issued in merger -- 189,868 -- -- -- --
Dividends reinvested 12,269 16,334 8,760 9,162 1,749 1,058
Shares redeemed (247,530) (264,090) (158,490) (119,076) (17,578) (12,564)
---------- ---------- ---------- ------------ --------- ---------
Total Institutional Shares (31,829) 125,390 189,379 71,633 504 317
---------- ---------- ---------- ------------ --------- ---------
Class A Shares
Shares issued 34,744 23,153 62,217 19,925 31,077 18,791
Shares issued in merger -- 24,462 -- -- -- --
Dividends reinvested 1,021 1,023 716 292 386 233
Shares redeemed (31,428) (25,229) (47,630) (4,563) (28,293) (14,896)
---------- ---------- ---------- ------------ --------- ---------
Total Class A Shares 4,337 23,409 15,303 15,654 3,170 4,128
---------- ---------- ---------- ------------ --------- ---------
Class B Shares
Shares issued 4,239 2,618 NA NA NA NA
Dividends reinvested 127 26 NA NA NA NA
Shares redeemed (1,361) (89) NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Total Class B Shares 3,005 2,555 NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Class C Shares
Shares issued 1,808 555 NA NA 10,930 2,773
Shares issued in merger -- 386 NA NA -- --
Dividends reinvested 43 14 NA NA 152 41
Shares redeemed (306) (164) NA NA (3,473) (784)
---------- ---------- ---------- ------------ --------- ---------
Total Class C Shares 1,545 791 NA NA 7,609 2,030
---------- ---------- ---------- ------------ --------- ---------
Advisor Shares
Shares issued NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Total Advisor Shares NA NA NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Change from capital transactions $ (22,942) $ 152,145 $ 204,682 $ 87,287 $ 11,283 $ 6,475
========== ========== ========== ============ ========= =========
Share Transactions:
Institutional Shares
Shares issued 19,910 19,157 34,436 18,476 1,550 1,157
Shares issued in merger -- 18,832 -- -- -- --
Dividends reinvested 1,208 1,650 892 933 167 104
Shares redeemed (24,255) (26,562) (16,098) (12,110) (1,667) (1,235)
---------- ---------- ---------- ------------ --------- ---------
Total Institutional Shares (3,137) 13,077 19,230 7,299 50 26
---------- ---------- ---------- ------------ --------- ---------
Class A Shares
Shares issued 3,395 2,379 6,323 2,034 2,949 1,842
Shares issued in merger -- 2,420 -- -- -- --
Dividends reinvested 100 104 73 30 37 23
Shares redeemed (3,065) (2,561) (4,846) (465) (2,686) (1,461)
---------- ---------- ---------- ------------ --------- ---------
Total Class A Shares 430 2,342 1,550 1,599 300 404
---------- ---------- ---------- ------------ --------- ---------
Class B Shares
Shares issued 417 265 NA NA NA NA
Dividends reinvested 13 3 NA NA NA NA
Shares redeemed (133) (9) NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Total Class B Shares 297 259 NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Class C Shares
Shares issued 177 58 NA NA 1,043 274
Shares issued in merger -- 38 NA NA -- --
Dividends reinvested 4 1 NA NA 15 4
Shares redeemed (30) (17) NA NA (332) (78)
---------- ---------- ---------- ------------ --------- ---------
Total Class C Shares 151 80 NA NA 726 200
---------- ---------- ---------- ------------ --------- ---------
Advisor Shares
Shares issued NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Total Advisor Shares NA NA NA NA NA NA
---------- ---------- ---------- ------------ --------- ---------
Change from share transactions (2,259) 15,758 20,780 8,898 1,076 630
========== ========== ========== ============ ========= =========
INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (b) 2003 2002 (a)
---------- ---------- ---------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 18,993 $ 18,106 $ 21,551 $ 24,479
Shares issued in merger -- -- -- 142,421
Dividends reinvested 1,509 3,018 2,487 5,361
Shares redeemed (48,759) (42,083) (61,758) (69,396)
---------- ---------- ---------- ----------
Total Institutional Shares (28,257) (20,959) (37,720) 102,865
---------- ---------- ---------- ----------
Class A Shares
Shares issued 16,253 8,066 18,912 1,302
Shares issued in merger -- -- -- 1,089
Dividends reinvested 74 69 138 220
Shares redeemed (15,970) (7,765) (19,161) (3,430)
---------- ---------- ---------- ----------
Total Class A Shares 357 370 (111) (819)
---------- ---------- ---------- ----------
Class B Shares
Shares issued 738 499 877 299
Dividends reinvested 28 3 20 2
Shares redeemed (33) (2) (109) (3)
---------- ---------- ---------- ----------
Total Class B Shares 733 500 788 298
---------- ---------- ---------- ----------
Class C Shares
Shares issued 680 234 602 483
Shares issued in merger -- -- -- 57
Dividends reinvested 15 3 22 4
Shares redeemed (342) (30) (161) (25)
---------- ---------- ---------- ----------
Total Class C Shares 353 207 463 519
---------- ---------- ---------- ----------
Advisor Shares
Shares issued 242 171 NA NA
Dividends reinvested 12 1 NA NA
Shares redeemed (34) -- NA NA
---------- ---------- ---------- ----------
Total Advisor Shares 220 172 NA NA
---------- ---------- ---------- ----------
Change from capital transactions $ (26,594) $ (19,710) $ (36,580) $ 102,863
========== ========== ========== ==========
Share Transactions:
Institutional Shares
Shares issued 1,763 1,708 1,979 2,678
Shares issued in merger -- -- -- 13,349
Dividends reinvested 143 288 232 503
Shares redeemed (4,523) (3,957) (5,683) (6,502)
---------- ---------- ---------- ----------
Total Institutional Shares (2,617) (1,961) (3,472) 10,028
---------- ---------- ---------- ----------
Class A Shares
Shares issued 1,505 767 1,743 128
Shares issued in merger -- -- -- 102
Dividends reinvested 7 6 13 21
Shares redeemed (1,470) (737) (1,763) (322)
---------- ---------- ---------- ----------
Total Class A Shares 42 36 (7) (71)
---------- ---------- ---------- ----------
Class B Shares
Shares issued 67 48 80 28
Dividends reinvested 3 --^ 2 --^
Shares redeemed (3) --^ (10) --
---------- ---------- ---------- ----------
Total Class B Shares 67 48 72 28
---------- ---------- ---------- ----------
Class C Shares
Shares issued 63 23 56 46
Shares issued in merger -- -- -- 5
Dividends reinvested 1 -- 2 --^
Shares redeemed (32) (3) (15) (2)
---------- ---------- ---------- ----------
Total Class C Shares 32 20 43 49
---------- ---------- ---------- ----------
Advisor Shares
Shares issued 22 16 NA NA
Dividends reinvested 1 --^ NA NA
Shares redeemed (3) -- NA NA
---------- ---------- ---------- ----------
Total Advisor Shares 20 16 NA NA
---------- ---------- ---------- ----------
Change from share transactions (2,456) (1,841) (3,364) 10,034
========== ========== ========== ==========
OHIO MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------- ---------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 2003 2002 (a)
--------- --------- --------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 11,851 $ 13,743 $ 51,983 $ 36,708
Shares issued in merger -- -- -- --
Dividends reinvested 66 59 658 639
Shares redeemed (28,755) (14,479) (29,022) (22,884)
--------- --------- --------- ---------
Total Institutional Shares (16,838) (677) 23,619 14,463
--------- --------- --------- ---------
Class A Shares
Shares issued 27,163 19,471 6,401 684
Shares issued in merger -- -- -- --
Dividends reinvested 467 550 115 99
Shares redeemed (20,871) (16,266) (1,999) (825)
--------- --------- --------- ---------
Total Class A Shares 6,759 3,755 4,517 (42)
--------- --------- --------- ---------
Class B Shares
Shares issued 2,867 2,048 1,979 367
Dividends reinvested 84 46 18 3
Shares redeemed (514) (305) (337) --
--------- --------- --------- ---------
Total Class B Shares 2,437 1,789 1,660 370
--------- --------- --------- ---------
Class C Shares
Shares issued 5,323 2,438 3,443 900
Shares issued in merger -- -- -- --
Dividends reinvested 119 54 45 4
Shares redeemed (2,724) (331) (278) (117)
--------- --------- --------- ---------
Total Class C Shares 2,718 2,161 3,210 787
--------- --------- --------- ---------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ---------
Total Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change from capital transactions $ (4,924) $ 7,028 $ 33,006 $ 15,578
========= ========= ========= =========
Share Transactions:
Institutional Shares
Shares issued 1,116 1,333 4,985 3,572
Shares issued in merger -- -- -- --
Dividends reinvested 6 6 63 62
Shares redeemed (2,717) (1,406) (2,789) (2,224)
--------- --------- --------- ---------
Total Institutional Shares (1,595) (67) 2,259 1,410
--------- --------- --------- ---------
Class A Shares
Shares issued 2,570 1,894 614 66
Shares issued in merger -- -- -- --
Dividends reinvested 44 53 11 10
Shares redeemed (1,968) (1,582) (193) (80)
--------- --------- --------- ---------
Total Class A Shares 646 365 432 (4)
--------- --------- --------- ---------
Class B Shares
Shares issued 275 202 189 36
Dividends reinvested 8 5 2 --^
Shares redeemed (49) (30) (32) --
--------- --------- --------- ---------
Total Class B Shares 234 177 159 36
--------- --------- --------- ---------
Class C Shares
Shares issued 504 238 331 87
Shares issued in merger -- -- -- --
Dividends reinvested 11 5 4 1
Shares redeemed (256) (32) (27) (11)
--------- --------- --------- ---------
Total Class C Shares 259 211 308 77
--------- --------- --------- ---------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ---------
Total Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change from share transactions (456) 686 3,158 1,519
========= ========= ========= =========
- -------------------
(a) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B and Class C Shares.
(b) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Class B, Class C and
Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
150-151 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2003
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Fifth Third Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. At July 31, 2003, the Trust consisted of thirty-seven separate
investment portfolios.
The accompanying financial statements relate only to the following Funds
(individually the "Fund" and collectively the "Funds"):
PORTFOLIO NAME
- --------------
Fifth Third Small Cap Growth Fund ("Small Cap Growth Fund")
Fifth Third Mid Cap Growth Fund ("Mid Cap Growth Fund", formerly the Fifth
Third Mid Cap Fund)
Fifth Third Large Cap Opportunity Fund ("Large Cap Opportunity Fund",
formerly the Fifth Third Pinnacle Fund)
Fifth Third Quality Growth Fund ("Quality Growth Fund")
Fifth Third Large Cap Core Fund ("Large Cap Core Fund")
Fifth Third Equity Index Fund ("Equity Index Fund")
Fifth Third Balanced Fund ("Balanced Fund")
Fifth Third Micro Cap Value Fund ("Micro Cap Value Fund")
Fifth Third Small Cap Value Fund ("Small Cap Value Fund")
Fifth Third Multi Cap Value Fund ("Multi Cap Value Fund")
Fifth Third Disciplined Large Cap Value Fund ("Disciplined Large Cap Value
Fund", formerly the Fifth Third Equity Income Fund)
Fifth Third LifeModel Aggressive FundSM ("LifeModel Aggressive FundSM")
Fifth Third LifeModel Moderately Aggressive FundSM ("LifeModel Moderately
Aggressive FundSM")
Fifth Third LifeModel Moderate FundSM ("LifeModel Moderate FundSM")
Fifth Third LifeModel Moderately Conservative FundSM ("LifeModel Moderately
Conservative FundSM")
Fifth Third LifeModel Conservative FundSM ("LifeModel Conservative FundSM")
Fifth Third Strategic Income Fund ("Strategic Income Fund")
Fifth Third Technology Fund ("Technology Fund")
Fifth Third Worldwide Fund ("Worldwide Fund")
Fifth Third International Equity Fund ("International Equity Fund")
Fifth Third International GDP Fund ("International GDP Fund")
Fifth Third Bond Fund ("Bond Fund")
Fifth Third Intermediate Bond Fund ("Intermediate Bond Fund")
Fifth Third Short Term Bond Fund ("Short Term Bond Fund")
Fifth Third U.S. Government Bond Fund ("U.S. Government Bond Fund")
Fifth Third Municipal Bond Fund ("Municipal Bond Fund")
Fifth Third Intermediate Municipal Bond Fund ("Intermediate
Municipal Bond Fund")
Fifth Third Ohio Municipal Bond Fund ("Ohio Municipal Bond Fund")
Fifth Third Michigan Municipal Bond Fund ("Michigan Municipal Bond Fund")
The Short Term Bond Fund offers two classes of shares: Institutional Shares and
Class A Shares. The U.S. Government Bond Fund offers three classes of shares:
Institutional Shares, Class A Shares and Class C Shares. The Strategic Income
Fund and the Worldwide Fund offer three classes of shares: Institutional Shares,
Class C Shares and Advisor Shares. The Large Cap Opportunity Fund, Large Cap
Core Fund, Disciplined Large Cap Value Fund, LifeModel Aggressive FundSM,
LifeModel Moderately Aggressive FundSM, LifeModel Moderate FundSM, LifeModel
Moderately Conservative FundSM, LifeModel Conservative FundSM, International
Equity Fund, International GDP Fund, Intermediate Bond Fund, Intermediate
Municipal Bond Fund, Ohio Municipal Bond Fund and Michigan Municipal Bond Fund
offer four classes of shares: Institutional Shares, Class A Shares, Class B
Shares and Class C Shares. The remainder of the Funds each offer five classes of
shares: Institutional Shares, Class A Shares, Class B Shares, Class C Shares and
Advisor Shares. The Class A Shares are
152
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
subject to initial sales charges imposed at the time of purchase, in
accordance with the Funds'prospectus. Certain redemptions of Class B Shares made
within six years of purchase and certain redemptions of Class C Shares made
within one year of purchase are subject to contingent deferred sales charges in
accordance with the Funds' prospectus. Each class of shares for each Fund has
identical rights and privileges except with respect to administrative services
fees paid by Class C Shares, distribution services fees paid by Class A Shares,
Class B Shares, Class C Shares and Advisor Shares, voting rights on matters
affecting a single class of shares, and the exchange privileges of each class of
shares.
(2) REORGANIZATIONS
On July 29, 2002, the net assets of the Fifth Third Large Cap Growth Fund
were exchanged for shares of the Large Cap Core Fund. This exchange qualified as
a tax-free exchange for federal income tax purposes. The following is a summary
of shares outstanding, net assets, net asset value per share and unrealized
appreciation (depreciation) immediately before and after the exchange (Amounts
in thousands except per share amounts):
INSTITUTIONAL SHARES INVESTMENT A SHARES
-------------------------- -----------------------
NET NET
NET ASSET NET ASSET
SHARES ASSETS VALUE SHARES ASSETS VALUE
------ ------ ------ ------ ------- -------
Fifth Third Large Cap Growth Fund (a) 25,069 $ 153,140 $ 6.11 112 $ 682 $ 6.09
Fifth Third Large Cap Core Fund (a) 31,964 333,618 10.44 2,044 21,079 10.31
------ ------ ------ ------ ------- -------
Fifth Third Large Cap Core Fund (b) (c) 46,636 $ 486,758 $ 10.44 2,110 $21,761 $ 10.31
INVESTMENT B SHARES INVESTMENT C SHARES
-------------------------- -----------------------
NET NET UNREALIZED
NET ASSET NET ASSET APPRECIATION
SHARES ASSETS VALUE SHARES ASSETS VALUE (DEPRECIATION)
------ --------- ------- ------- ------- ------- --------------
Fifth Third Large Cap Growth Fund (a) 21 $ 125 $ 6.08 2 $ 15 $ 6.08 $ (71,436)
Fifth Third Large Cap Core Fund (a) 19 201 10.38 --^ 4 10.39 43,380
------ --------- ------- ------- ------- ------- --------------
Fifth Third Large Cap Core Fund (b) (c) 31 $ 326 $ 10.3 2 $ 19 $ 10.39 $ (28,056)
(a) Before reorganization.
(b) After reorganization.
(c) The Fifth Third Large Cap Core Fund retained its investment objective and
financial history after the reorganization. ^ Represents fewer than five
hundred shares.
The Trust entered into an Agreement and Plan of Reorganization (the
"Reorganization") with the Kent Funds pursuant to which all of the assets and
liabilities of each Kent Fund transferred to a corresponding Fifth Third Fund in
exchange for shares of the Fifth Third Fund. Each Kent Fund listed below
transferred all of its assets and liabilities to the corresponding Fifth Third
Fund identified opposite its name in exchange for shares of such Fifth Third
Fund:
KENT FUNDS FIFTH THIRD FUNDS
- ---------- -----------------
Kent Small Company Growth Fund Fifth Third Small Cap Growth Fund
Kent Large Company Growth Fund Fifth Third Large Cap Growth Fund
Kent Growth and Income Fund Fifth Third Large Cap Value Fund
Kent Index Equity Fund Fifth Third Equity Index Fund
Kent International Growth Fund Fifth Third International GDP Fund
Kent Income Fund Fifth Third Bond Fund
Kent Intermediate Bond Fund Fifth Third Intermediate Bond Fund
Kent Short Term Bond Fund Fifth Third Short Term Bond
Fund Kent Tax-Free Income Fund Fifth Third Municipal Bond Fund
Kent Intermediate Tax-Free Fund Fifth Third Intermediate Municipal
Bond Fund
Kent Michigan Municipal Bond Fund Fifth Third Michigan Municipal Bond Fund
153
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
The reorganization, which qualified as a tax-free exchange for federal income
tax purposes, was completed on October 29, 2001 and was approved by shareholders
of the Kent Funds at a Special Meeting of Shareholders held on July 27, 2001.
The following is a summary of shares outstanding, net assets, net asset value
per share and unrealized appreciation (depreciation) immediately before and
after the reorganization (Amounts in thousands except per share amounts):
INSTITUTIONAL SHARES INVESTMENT A SHARES
----------------------------------- --------------------------------
NET NET
NET ASSET NET ASSET
SHARES ASSETS VALUE SHARES ASSETS VALUE
--------- --------- --------- ------- ---------- ---------
Kent Small Company Growth Fund (a) 40,353 $667,602 $ 16.54 1,258 $ 20,603 $ 16.37
Fifth Third Small Cap Growth Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Small Cap Growth Fund (b) 40,353 $667,602 $ 16.54 1,258 $ 20,603 $ 16.37
Kent Large Company Growth Fund (a) 28,513 $233,039 $ 8.17 69 $ 566 $ 8.16
Fifth Third Large Cap Growth Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Large Cap Growth Fund (b) 28,513 $233,039 $ 8.17 69 $ 566 $ 8.16
Kent Growth and Income Fund (a) 36,397 $504,567 $ 13.86 2,491 $ 34,185 $ 13.72
Fifth Third Large Cap Value Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Large Cap Value Fund (b) 36,397 $504,567 $ 13.86 2,491 $ 34,185 $ 13.72
Kent Index Equity Fund (a) 36,265 $764,067 $ 21.07 1,449 $ 30,493 $ 21.05
Fifth Third Equity Index Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Equity Index Fund (b) 36,265 $764,067 $ 21.07 1,449 $ 30,493 $ 21.05
Kent International Growth Fund (a) 34,836 $409,806 $ 11.76 1,404 $ 16,236 $ 11.56
Fifth Third International GDP Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third International GDP Fund (b) 34,836 $409,806 $ 11.76 1,404 $ 16,236 $ 11.56
Kent Income Fund (a) 25,911 $262,519 $ 10.13 588 $ 5,945 $ 10.12
Fifth Third Quality Bond Fund (a) 21,126 207,400 9.82 1,322 12,985 9.82
--------- --------- --------- ------- ---------- ---------
Fifth Third Bond Fund (b) (c) 46,383 $469,919 $ 10.13 1,871 $ 18,930 $ 10.12
Kent Intermediate Bond Fund (a) 61,127 $616,303 $ 10.08 843 $ 8,520 $ 10.11
Fifth Third Bond Fund For Income (a) 15,716 189,868 12.08 2,026 24,462 12.07
--------- --------- --------- ------- ---------- ---------
Fifth Third Intermediate Bond Fund (b) (d) 79,959 $806,171 $ 10.08 3,263 $ 32,982 $ 10.11
Kent Short Term Bond Fund (a) 25,177 $250,273 $ 9.94 343 $ 3,409 $ 9.93
Fifth Third Short Term Bond Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Short Term Bond Fund (b) 25,177 $250,273 $ 9.94 343 $ 3,409 $ 9.93
Kent Tax-Free Income Fund (a) 10,976 $119,359 $ 10.87 96 $ 1,048 $ 10.91
Fifth Third Municipal Bond Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Municipal Bond Fund (b) 10,976 $119,359 $ 10.87 96 $ 1,048 $ 10.91
Kent Intermediate Tax-Free Fund (a) 21,761 $232,179 $ 10.67 392 $ 4,189 $ 10.67
Fifth Third Municipal Bond Fund (a) 11,841 142,421 12.03 90 1,089 12.05
--------- --------- --------- ------- ---------- ---------
Fifth Third Intermediate Municipal
Bond Fund (b) (e) 35,110 $374,600 $ 10.67 495 $ 5,278 $ 10.67
Kent Michigan Municipal Bond Fund (a) 7,764 $ 80,361 $ 10.35 352 $ 3,640 $ 10.34
Fifth Third Michigan Municipal
Bond Fund (a) -- -- -- -- -- --
--------- --------- --------- ------- ---------- ---------
Fifth Third Michigan Municipal
Bond Fund (b) 7,764 $ 80,361 $ 10.35 352 $ 3,640 $ 10.34
- ---------------------------------------
(a) Before reorganization.
(b) After reorganization.
(c) The Fifth Third Bond Fund retained the investment objective and financial
history of the Kent Income Fund after the reorganization.
(d) The Fifth Third Intermediate Bond Fund retained the investment objective
and financial history of the Kent Intermediate Bond Fund after the
reorganization.
(e) The Fifth Third Intermediate Municipal Bond Fund retained the investment
objective and financial history of the Kent Intermediate Tax-Free Fund
after the reorganization.
154
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- -----------------------------------------------------------------------------------
INVESTMENT B SHARES INVESTMENT C SHARES
--------------------------------- -------------------------------
NET NET UNREALIZED
NET ASSET NET ASSET APPRECIATION
SHARES ASSETS VALUE SHARES ASSETS VALUE (DEPRECIATION)
------ --------- --------- ------- --------- --------- ---------------
Kent Small Company Growth Fund (a) NA NA NA NA NA NA $ 151,139
Fifth Third Small Cap Growth Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Small Cap Growth Fund (b) NA NA NA NA NA NA $ 151,139
Kent Large Company Growth Fund (a) NA NA NA NA NA NA $ (34,299)
Fifth Third Large Cap Growth Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Large Cap Growth Fund (b) NA NA NA NA NA NA $ (34,299)
Kent Growth and Income Fund (a) NA NA NA NA NA NA $ 150,407
Fifth Third Large Cap Value Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Large Cap Value Fund (b) NA NA NA NA NA NA $ 150,407
Kent Index Equity Fund (a) NA NA NA NA NA NA $ 248,880
Fifth Third Equity Index Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Equity Index Fund (b) NA NA NA NA NA NA $ 248,880
Kent International Growth Fund (a) NA NA NA NA NA NA $ (59,023)
Fifth Third International GDP Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third International GDP Fund (b) NA NA NA NA NA NA $ (59,023)
Kent Income Fund (a) NA NA NA NA NA NA $ 12,213
Fifth Third Quality Bond Fund (a) 381 $ 3,735 $ 9.81 138 $ 1,357 $ 9.80 2,285
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Bond Fund (b) (c) 369 $ 3,735 $ 10.13 134 $ 1,357 $ 10.13 $ 14,498
Kent Intermediate Bond Fund (a) NA NA NA NA NA NA $ 22,929
Fifth Third Bond Fund For Income (a) NA NA NA 32 $ 386 $ 12.05 6,813
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Intermediate
Bond Fund (b) (d) NA NA NA 32 $ 323 $ 10.08 $ 29,742
Kent Short Term Bond Fund (a) NA NA NA NA NA NA $ 6,775
Fifth Third Short Term Bond Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Short Term Bond Fund (b) NA NA NA NA NA NA $ 6,775
Kent Tax-Free Income Fund (a) NA NA NA NA NA NA $ 8,385
Fifth Third Municipal Bond Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Municipal Bond Fund (b) NA NA NA NA NA NA $ 8,385
Kent Intermediate Tax-Free Fund (a) NA NA NA NA NA NA $ 14,573
Fifth Third Municipal Bond Fund (a) NA NA NA 5 $ 57 $ 12.05 4,117
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Intermediate Municipal
Bond Fund (b) (e) NA NA NA 5 $ 51 $ 10.67 $ 18,690
Kent Michigan Municipal Bond Fund (a) NA NA NA NA NA NA $ 3,315
Fifth Third Michigan Municipal
Bond Fund (a) NA NA NA NA NA NA --
------ --------- --------- ------- --------- --------- ---------------
Fifth Third Michigan Municipal
Bond Fund (b) NA NA NA NA NA NA $ 3,315
- -------------------------------------------------
(a) Before reorganization.
(b) After reorganization.
(c) The Fifth Third Bond Fund retained the investment objective and financial
history of the Kent Income Fund after the reorganization.
(d) The Fifth Third Intermediate Bond Fund retained the investment objective
and financial history of the Kent Intermediate Bond Fund after the
reorganization.
(e) The Fifth Third Intermediate Municipal Bond Fund retained the investment
objective and financial history of the Kent Intermediate Tax-Free Fund
after the reorganization.
155
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
The Fifth Third/Maxus Funds entered into an Agreement and Plan of Reorganization
with the Trust pursuant to which all the assets and liabilities of each Fifth
Third/Maxus Fund transferred to a corresponding Fifth Third Fund in exchange for
shares of the Fifth Third Fund. Each Fifth Third/Maxus Fund listed below
transferred all of its assets and liabilities to the corresponding Fifth Third
Fund identified opposite its name in exchange for shares of such Fifth Third
Fund.
FIFTH THIRD/MAXUS FUNDS FIFTH THIRD FUNDS
- ----------------------- -----------------
Fifth Third/Maxus Aggressive Value Fund Fifth Third Micro Cap Value Fund
Fifth Third/Maxus Equity Fund Fifth Third Multi Cap Value Fund
Fifth Third/Maxus Income Fund Fifth Third Strategic Income Fund
Fifth Third/Maxus Laureate Fund Fifth Third Worldwide Fund
The reorganization, which qualified as a tax-free exchange for federal income
tax purposes, was completed on August 13, 2001 for the Micro Cap Value Fund,
Multi Cap Value Fund and Worldwide Fund. The reorganization of the Strategic
Income Fund, which also qualified as a tax-free exchange for federal income tax
purposes, was completed on October 22, 2001. The following is a summary of
shares outstanding, net assets, net asset value per share and unrealized
appreciation immediately before and after the respective reorganizations.
(Amounts in thousands except per share amounts):
INSTITUTIONAL SHARES ADVISOR SHARES
--------------------------------- --------------------------------
NET NET
NET ASSET NET ASSET UNREALIZED
SHARES ASSETS VALUE SHARES ASSETS VALUE APPRECIATION
------- -------- ---------- ------- ---------- ---------- ------------
Fifth Third/Maxus Aggressive
Value Fund (a) 1,742 $ 10,424 $ 5.98 3,158 $ 18,731 $ 5.93 $ 2,041
Fifth Third Micro Cap Value Fund (a) -- -- -- -- -- -- --
------- -------- ---------- ------- ---------- ---------- ------------
Fifth Third Micro Cap Value Fund (b) 1,742 $ 10,424 $ 5.98 3,158 $ 18,731 $ 5.93 $ 2,041
Fifth Third/Maxus Equity Fund (a) 338 $ 6,601 $ 19.51 2,398 $ 46,614 $ 19.44 $ 9,368
Fifth Third Multi Cap Value Fund (a) -- -- -- -- -- -- --
------- -------- ---------- ------- ---------- ---------- ------------
Fifth Third Multi Cap Value Fund (b) 338 $ 6,601 $ 19.51 2,398 $ 46,614 $ 19.44 $ 9,368
Fifth Third/Maxus Income Fund (a) 414 $ 4,392 $ 10.61 3,149 $ 33,339 $ 10.59 $ 1,797
Fifth Third Strategic Income Fund (a) -- -- -- -- -- -- --
------- -------- ---------- ------- ---------- ---------- ------------
Fifth Third Strategic Income Fund (b) 414 $ 4,392 $ 10.61 3,149 $ 33,339 $ 10.59 $ 1,797
Fifth Third/Maxus Laureate Fund (a) 81 $ 975 $ 12.08 1,911 $ 22,821 $ 11.94 $ 713
Fifth Third Worldwide Fund (a) -- -- -- -- -- -- --
------- -------- ---------- ------- ---------- ---------- ------------
Fifth Third Worldwide Fund (b) 81 $ 975 $ 12.08 1,911 $ 22,821 $ 11.94 $ 713
- -----------------------------------------
(a) Before reorganization.
(b) After reorganization.
(3) 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 accounting principles generally accepted in the
United States. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements, as well as, the reported amounts of increases and decreases in net
assets from operations during the period. Actual results could differ from those
estimates.
A. SECURITIES VALUATIONS--Portfolio securities listed or traded on domestic
securities exchanges or the NASDAQ/NMS, including American Depositary Receipts
("ADR's"), are valued at the closing price on the exchange or system where the
security is principally traded. If there have been no sales for that day on any
exchange or system, a security is valued at the mean between the closing bid and
asked quotes on the exchange or system where the security is principally traded,
or at the Nasdaq Official Closing Price (NOCP"),
156
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
if applicable. Securities invested in the International Equity and
International GDP Fund are valued at the closing mid-market price on that
exchange on the day of computation. Corporate debt securities and debt
securities of U.S. issuers (other than short-term investments maturing in 60
days or less), including municipal securities, are valued on the basis of
valuations provided by dealers or by an independent pricing service approved by
the Board of Trustees ("Trustees"). Short-term investments maturing in 60 days
or less are valued at either amortized cost, which approximates market value or
at original cost, which combined with accrued interest approximates market
value. Investments in other open-end investment companies are valued at net
asset value. Investments for which there are no such quotations, or quotations
which appear suspect, are valued at fair value as determined in good faith by
the Pricing Committee under the direction of the Trustees.
B. REPURCHASE AGREEMENTS--The Funds will only enter into repurchase agreements
with banks and other recognized financial institutions, such as broker/dealers,
which are deemed by Fifth Third Asset Mangement Inc. (the "Advisor") to be
creditworthy pursuant to guidelines and/or standards reviewed or established by
the Trustees. It is the policy of the Funds to require the custodian or
sub-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 transaction. 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.
C. SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are
accounted for on the date the security is purchased or sold (trade date).
Interest income is recognized on the accrual basis and includes, where
applicable, the pro rata amortization of premium or accretion of discount.
Dividend income is recorded on the ex-dividend date. Gains or losses realized on
sales of securities are determined by comparing the identified cost of the
security lot sold with the net sales proceeds. Withholding taxes on foreign
dividends have been provided for in accordance with the applicable country's tax
rules and rates.
D. FOREIGN CURRENCY TRANSLATION--The Trust 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 the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gains or losses from investments.
Realized foreign exchange gains or losses arise from sales and maturities of
securities, sales of foreign currencies, currency exchange fluctuations between
the trade and settlement dates of securities transactions, and the difference
between the amount of assets and liabilities recorded and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the fair value of assets and
liabilities, including investments in securities, resulting from changes in the
currency exchange rates.
E. FORWARD CURRENCY CONTRACTS--The International Equity Fund and the
International GDP Fund may enter into a forward currency contract ("forward"),
which is an agreement between two parties to buy and sell a currency at a set
price on a future date. The market value of the forward fluctuates with changes
in currency exchange rates. The forward is marked-to-market daily and the change
in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the forward is closed, the Fund records a realized gain or
loss equal to the difference between the value at the time it was opened and the
value at the time it was closed. A Fund could be exposed to risk if a
counterparty is unable to meet the terms of a forward or if the value of the
currency changes unfavorably.
F. FOREIGN CURRENCY COMMITMENTS--The International Equity Fund and the
International GDP Fund may enter into foreign currency commitments for the
delayed delivery of securities of foreign currency exchange transactions. Risks
may arise upon entering into these transactions from the potential inability of
157
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
counterparties to meet the terms of their commitments and from unanticipated
movements in security prices or foreign exchange rates. The foreign currency
transactions 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.
G. FUTURES CONTRACTS--The Funds, with the exception of the Micro Cap Value
Fund, the Multi Cap Value Fund and the Strategic Income Fund, may enter into
futures contracts for the delayed delivery of securities at a fixed price at
some future date or for the change in the value of a specified financial index
over a predetermined time period. Cash or securities are deposited with brokers
in order to maintain a position. Subsequent payments made or received by the
Fund based on the daily change in the market value of the position are recorded
as unrealized appreciation or depreciation until the contract is closed out, at
which time the gain or loss is realized. The International Equity Fund holds
cash as collateral for its futures contracts.
The use of futures contracts involves, to varying degrees, elements of market
risk. Risks arise from the possible imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets, and
the possible inability of counterparties to meet the terms of their contracts.
However, the Fund's activities in futures contracts are conducted through
regulated exchanges which minimize counterparty credit risks.
H. OPTION CONTRACTS--The Funds, with the exception of the Micro Cap Value Fund,
the Multi Cap Value Fund and the Strategic Income Fund, may write or purchase
option contracts. These transactions are to hedge against changes in interest
rates, security prices, currency fluctuations, and other market developments, or
for the purposes of earning additional income (i.e. speculation).
The risk associated with purchasing an option is that the Fund pays a
premium whether or not the option is exercised. Additionally, the Funds bear the
risk of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as other securities owned. The cost of securities acquired
through the exercise of call options is increased by the premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by premiums paid.
In writing an option, the Funds contract with a specified counterparty to
purchase (written put option) or sell (written call option) a specified quantity
(notional amount) of an underlying asset at a specified price during a specified
period upon demand of the counterparty. The risk associated with writing an
option is that the Funds bear the market risk of an unfavorable change in the
price of an underlying asset, and may be required to buy or sell an underlying
asset under the contractual terms of the option at a price different from the
current market value. Written options involve financial risk which may exceed
amounts reflected in the accompanying financial statements.
The table below reflects the Small Cap Growth Fund and Mid Cap Growth Fund's
activities in written options, all of which were for purposes of earning
additional income during the period. The Small Cap Growth Fund held LeapFrog
Enterprises, Inc., $35.00, 9/20/03 at the end of the period. No other Funds
engaged in written option contracts during the year ended July 31, 2003.
OPTION ACTIVITIES FOR THE YEAR ENDED JULY 31, 2003:
BALANCE AT OPTIONS OPTIONS BALANCE AT
7/31/02 WRITTEN EXPIRED 7/31/03
---------- --------- ------- -----------
NUMBER OF CONTRACTS
Small Cap Growth Fund -- 50 -- 50
Mid Cap Growth Fund -- 600 (600) --
PREMIUMS ($000)
Small Cap Growth Fund $ -- $ 3 -- $ 3
Mid Cap Growth Fund -- 162 $ (162) --
158
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
I. 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
valued daily and begin earning interest on the settlement date.
J. LENDING PORTFOLIO SECURITIES--To generate additional income, the Funds may
lend up to one-third of securities in which they are invested pursuant to
agreements requiring that the loan be continuously secured by cash, U.S.
Government or U.S. Government Agency securities, shares of an investment trust
or mutual fund, or any combination of cash and such securities as collateral
equal at all times to at least 100% of the prior day's market value plus accrued
interest on the securities loaned. The Funds continue to earn interest and
dividends on securities loaned while simultaneously seeking to earn interest on
the investment of collateral.
When cash is received as collateral for securities loaned, the Funds may invest
such cash in short-term U.S. Government securities, repurchase agreements, or
other short-term corporate securities. The cash or subsequent short-term
investments are recorded as assets of the Funds, offset by a corresponding
liability to repay the cash at the termination of the loan. Fixed income
securities received as collateral are not recorded as an asset or liability of
the Fund because the Fund does not have effective control of such securities.
There may be risks of delay in recovery of the securities or even loss of rights
in the collateral should the borrower of the securities fail financially.
However, loans will be made only to borrowers deemed by the Advisor to be of
good standing and creditworthy under guidelines established by the Trustees and
when, in the judgment of the Advisor, the consideration which can be earned
currently from such securities loans justifies the attendant risks. Loans are
subject to termination by the Funds or the borrower at any time, and are,
therefore, not considered to be illiquid investments. As of July 31, 2003, the
following Funds had securities on loan with the following market values and
collateral amounts (Amounts in thousands):
MARKET AVERAGE LOAN INCOME FROM
CASH VALUE OF OUTSTANDING SECURITIES
COLLATERAL LOANED SECURITIES DURING THE YEAR LENDING
---------- ----------------- --------------- ------------
Small Cap Growth Fund $ 58,723 $ 56,300 $ 64,813 $ 262
Mid Cap Growth Fund 59,223 56,779 51,046 129
Large Cap Opportunity Fund 957 920 564 --^
Quality Growth Fund 24,295 23,292 16,060 10
Large Cap Core Fund 775 743 4,828 6
Equity Index Fund 13,314 12,764 13,436 22
Balanced Fund 9,870 9,462 13,979 16
Multi Cap Value Fund 17,700 16,970 10,998 15
Disciplined Large Cap Value Fund 4,111 3,941 7,758 9
Technology Fund 10,670 10,229 4,820 11
International Equity Fund 7,170 6,874 7,672 37
International GDP Fund 12,894 12,362 22,934 138
Bond Fund 13,627 13,065 24,912 35
Intermediate Bond Fund 82,365 78,966 119,975 176
Short Term Bond Fund 28,968 27,773 35,516 17
^ Represents fewer than five hundred dollars.
At July 31, 2003, each Fund's loaned securities were fully collateralized by
cash, which was reinvested in repurchase agreements (with interest rates ranging
from 1.09% to 1.10% and maturity dates of August 1, 2003).
K. EXPENSES--Expenses directly attributable to a Fund are charged to the
Fund, while expenses which are attributable to more than one series of the Trust
are allocated among the respective series based upon relative net assets or
another appropriate basis. In addition, investors in a certain Share class will
pay the expenses directly attributable to that Share class.
L. DISRIBUTIONS TO SHAREHOLDERS--Dividends, if any, from net investment
income are declared and paid monthly for the Strategic Income Fund, Bond Fund,
Intermediate Bond Fund, Short Term Bond Fund, U.S. Government Bond Fund,
Municipal Bond Fund, Intermediate Municipal Bond Fund, Ohio Municipal Bond
159
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
Fund and Michigan Municipal Bond Fund. Dividends, if any, from net investment
income are declared and paid quarterly for the Mid Cap Growth Fund, Large Cap
Opportunity Fund, Quality Growth Fund, Large Cap Core Fund, Equity Index Fund,
Balanced Fund, Micro Cap Value Fund, Multi Cap Value Fund, Disciplined Large Cap
Value Fund, LifeModel Aggressive FundSM, LifeModel Moderately Aggressive FundSM,
LifeModel Moderate FundSM, LifeModel Moderately Conservative FundSM, LifeModel
Conservative FundSM and Technology Fund. Dividends, if any, from net investment
income are declared and paid annually for the Small Cap Growth Fund, Small Cap
Value Fund, Worldwide Fund, International Equity Fund and International GDP
Fund. Distributable net realized gains, if any, are declared and distributed at
least annually. Dividends to shareholders are recorded on the ex-dividend date.
Dividends from net investment income and from net realized capital gains are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed securities, amortization and/or
accretion of securities, foreign currency transactions, expiring capital loss
carryforwards and deferrals of certain losses.
These `'book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassifications. To
the extent they exceed net investment income and net realized gains for tax
purposes, they are reported as distribution of capital.
M. FEDERAL TAXES--It is the policy of each Fund to qualify or continue to
qualify as a regulated investment company by complying with the provisions
available to certain investment companies, as defined in applicable sections of
the Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
The tax character of distributions paid during the fiscal year ended July 31,
2003 was as follows (Amounts in thousands):
DISTRIBUTIONS
PAID FROM
----------------------
NET
LONG TERM TOTAL TAX TOTAL
ORDINARY CAPITAL TAXABLE EXEMPT DISTRIBUTIONS
INCOME GAINS DISTRIBUTIONS DISTRIBUTIONS PAID
-------- ----------- ------------- ------------- -------------
Quality Growth Fund $ 46 -- $ 46 -- $ 46
Large Cap Core Fund 3,353 -- 3,353 -- 3,353
Equity Index Fund 8,109 -- 8,109 -- 8,109
Balanced Fund 3,953 -- 3,953 -- 3,953
Micro Cap Value Fund 30 $ 645 675 -- 675
Disciplined Large Cap Value Fund 3,542 2,914 6,456 -- 6,456
LifeModel Aggressive FundSM 64 -- 64 -- 64
LifeModel Moderately Aggressive FundSM 368 -- 368 -- 368
LifeModel Moderate FundSM 644 -- 644 -- 644
LifeModel Moderately Conservative FundSM 503 -- 503 -- 503
LifeModel Conservative FundSM 384 -- 384 -- 384
Strategic Income Fund 3,714 -- 3,714 -- 3,714
International Equity Fund 888 -- 888 -- 888
International GDP Fund 1,683 -- 1,683 -- 1,683
Bond Fund 16,599 -- 16,599 -- 16,599
Intermediate Bond Fund 34,323 -- 34,323 -- 34,323
Short Term Bond Fund 16,895 -- 16,895 -- 16,895
U.S. Government Bond Fund 2,461 590 3,051 -- 3,051
Municipal Bond Fund 148 1,270 1,418 $ 3,674 5,092
Intermediate Municipal Bond Fund 49 2,213 2,262 11,118 13,380
Ohio Municipal Bond Fund -- -- -- 6,628 6,628
Michigan Municipal Bond Fund 44 336 380 3,538 3,918
160
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
The tax character of distributions paid during the fiscal year ended July
31, 2002 was as follows (Amounts in thousands):
DISTRIBUTIONS
PAID FROM
---------------------
NET
LONG TERM TOTAL TAX TOTAL
ORDINARY CAPITAL TAXABLE EXEMPT DISTRIBUTIONS
INCOME GAINS DISTRIBUTIONS DISTRIBUTIONS PAID
--------- ---------- -------------- ------------- -------------
Small Cap Growth Fund -- $ 22,402 $ 22,402 -- $ 22,402
Mid Cap Fund $ 197 9,828 10,025 -- 10,025
Quality Growth Fund -- 35,961 35,961 -- 35,961
Large Cap Core Fund 3,027 11,389 14,416 -- 14,416
Equity Index Fund 8,176 -- 8,176 -- 8,176
Balanced Fund 3,993 4,980 8,973 -- 8,973
Equity Income Fund 838 4,554 5,392 -- 5,392
Strategic Income Fund 1,093 -- 1,093 -- 1,093
International Equity Fund 1,952 -- 1,952 -- 1,952
International GDP Fund 1,683 -- 1,683 -- 1,683
Bond Fund 20,652 -- 20,652 -- 20,652
Intermediate Bond Fund 34,051 -- 34,051 -- 34,051
Short Term Bond Fund 13,395 -- 13,395 -- 13,395
U.S. Government Bond Fund 2,200 -- 2,200 -- 2,200
Municipal Bond Fund 1,220 1,609 2,829 $ 4,719 7,548
Intermediate Municipal Bond Fund 6 -- 6 10,633 10,639
Ohio Municipal Bond Fund 6 -- 6 6,830 6,836
Michigan Municipal Bond Fund 195 222 417 3,264 3,681
As of July 31, 2003, the components of accumulated earnings/(deficit) on
tax basis was a follows (Amounts in thousands):
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND UNREALIZED ACCUMULATED
TAX EXEMPT ORDINARY LONG-TERM DISTRIBUTIONS OTHER APPRECIATION/ EARNINGS/
INCOME INCOME CAPITAL GAINS PAYABLE LOSSES (DEPRECIATION)* (DEFICIT)
------------ ------------- ------------- ------------- ----------- ------------- -------------
Small Cap Growth Fund -- -- -- -- $ (2,595) $ 115,879 $113,284
Mid Cap Growth Fund -- -- -- -- (43,398) 34,034 (9,364)
Large Cap Opportunity
Fund -- -- -- -- (18,982) 485 (18,497)
Quality Growth Fund -- -- -- -- (146,369) 75,527 (70,842)
Large Cap Core Fund -- $ 154 -- -- (57,736) 4,707 (52,875)
Equity Index Fund -- 672 -- -- (53,499) 188,875 136,048
Balanced Fund -- 307 -- -- (74,689) 7,846 (66,536)
Micro Cap Value Fund -- 3,379 -- -- (49) 30,851 34,181
Small Cap Value Fund -- 1,049 -- -- -- 7,030 8,079
Multi Cap Value Fund -- -- -- -- (4,808) 36,564 31,756
Disciplined Large Cap
Value Fund -- 3,334 $5,224 -- -- 45,133 53,691
LifeModel Aggressive
FundSM -- 408 7 -- -- 6,993 7,408
LifeModel Moderately
Aggressive FundSM -- 745 25 -- -- 11,803 12,573
LifeModel Moderate
FundSM -- 299 23 -- -- 9,545 9,867
LifeModel Moderately
Conservative Fund SM -- 940 12 -- -- 4,125 5,077
LifeModel Conservative
FundSM -- 262 7 -- -- 1,192 1,461
Strategic Income Fund -- 496 -- $(545) (1,729) 1,757 (21)
Technology Fund -- -- -- -- (57,694) 8,609 (49,085)
Worldwide Fund -- -- -- -- (13,157) 1,552 (11,605)
International
Equity Fund -- 2,671 -- -- (33,836) (19,366) (50,531)
International GDP Fund -- 3,419 -- -- (47,848) (50,798) (95,227)
Bond Fund -- 55 -- -- (727) 700 28
Intermediate Bond Fund -- 55 -- -- (15,076) 142 (14,879)
Short Term Bond Fund -- 67 -- -- (2,949) (3,645) (6,527)
U.S. Government
Bond Fund -- 992 529 -- -- (330) 1,191
Municipal Bond Fund -- 325 860 -- -- 6,788 7,973
Intermediate Municipal
Bond Fund $37 448 2,119 -- -- 14,459 17,063
Ohio Municipal Bond
Fund --^ -- -- -- (150) 6,784 6,634
Michigan Municipal
Bond Fund 7 -- 186 -- -- 2,888 3,081
- ---------------------------------------------
* The differences between the book-basis and tax-basis unrealized
appreciation (depreciation) is attributable primarily to: tax deferral
of losses on wash sales, the difference between book and tax
amortization methods for premium and market discount, and the return of
capital adjustments from real estate investments trusts.
^ Represents fewer than five hundred dollars.
161
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
As of July 31, 2003, for Federal income tax purposes, the following Funds have
capital loss carryforwards available to offset future capital gains, if any to
the extent provided by the treasury regulations (Amounts in thousands):
EXPIRATION YEAR
-------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 TOTAL
------- ----- ------ ------- ------- --------- --------- --------
Small Cap Growth Fund -- -- -- -- -- $ 2,595 -- $ 2,595
Mid Cap Growth Fund -- -- -- -- -- 2,764 $ 40,392 43,156
Large Cap Opportunity Fund -- -- -- -- -- 14,725 3,024 17,749
Quality Growth Fund -- -- -- -- -- 12,974 133,395 146,369
Large Cap Core Fund -- -- -- -- -- 13,517 -- 13,517
Equity Index Fund -- -- -- -- $ 4,024 3,128 45,380 52,532
Balanced Fund -- -- -- -- -- 3,043 58,207 61,250
Multi Cap Value Fund -- -- -- -- -- 3,037 1,618 4,655
Strategic Income Fund -- -- $ 234 $ 1,096 -- -- -- 1,330
Technology Fund -- -- -- -- 10 20,066 32,941 53,017
Worldwide Fund -- -- -- -- 10,618 868 1,406 12,892
International Equity Fund -- -- -- -- 2,029 -- 22,478 24,507
International GDP Fund -- -- -- -- -- 7,628 31,350 38,978
Bond Fund -- -- -- 727 -- -- -- 727
Intermediate Bond Fund -- -- -- 3,390 -- 313 -- 3,703
Short Term Bond Fund $ 1,365 $ 238 220 1,126 -- -- -- 2,949
Ohio Municipal Bond Fund -- -- -- -- 150 -- -- 150
As of July 31, 2002, the following Funds have additional capital loss
carryforwards, subject to certain limitations on availability, to offset future
capital gains, if any, as the successor of a merger (Amounts in thousands):
EXPIRATION YEAR
----------------------------------------
2005 2006 2007 2008 2009 TOTAL
---- ---- ---- ---- ---- -----
Large Cap Core Fund -- -- -- $22,478 $21,741 $44,219
Intermediate Bond Fund $374 -- -- 10,029 970 11,373
Net capital losses incurred after October 31, and
within the taxable year are deemed to arise on the first business day of the
Funds' next taxable year. For the year ended July 31, 2003, the fund deferred to
August 1, 2003 post October capital losses, post October currency losses and
post October passive foreign investment company losses of (Amounts in
thousands):
CAPITAL
LOSSES
--------
Mid Cap Growth Fund $ 242
Large Cap Opportunity Fund 1,233
Equity Index Fund 967
Balanced Fund 13,439
Micro Cap Value Fund 49
Multi Cap Value Fund 153
Strategic Income Fund 399
Technology Fund 4,677
Worldwide Fund 265
International Equity Fund 9,329
International GDP Fund 8,870
For the taxable year ended July 31, 2003, the following percentage of income
dividends paid by the Fund qualify for the dividends received deduction
available to corporations (Unaudited):
PERCENTAGE
----------
Large Cap Core Fund 100%
Equity Index Fund 100%
Balanced Fund 55%
Micro Cap Value Fund 17%
Disciplined Large Cap Value Fund 90%
LifeModel Agressive FundSM 14%
LifeModel Moderately Agressive FundSM 11%
LifeModel Moderate FundSM 10%
LifeModel Moderately Conservative FundSM 3%
LifeModel Conservative FundSM 2%
Strategic Income Fund 100%
For the period ended July 31, 2003, certain dividends paid by the Funds may be
subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax
Relief Reconciliation Act of 2003. The Funds intend to designate the maximum
amount allowable as taxed at a maximum rate of 15%. Complete information will be
reported in conjunction with your 2003 Form 1099-DIV.
162
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
For the period ended July 31, 2003, the following Funds paid qualified dividend
income of (amounts in thousands):
AMOUNT
--------
Large Cap Core Fund ............................... $ 1,298
Equity Index Fund ................................. 3,751
Balanced Fund ..................................... 1,268
Disciplined Large Cap Value Fund .................. 2,304
LifeModel Aggressive FundSM ....................... 61
LifeModel Moderately Aggressive FundSM ............ 121
LifeModel Moderate FundSM ......................... 92
LifeModel Moderately Conservative FundSM .......... 49
LifeModel Conservative FundSM ..................... 10
Strategic Income Fund ............................. 2,935
The International Equity Fund and the International GDP Fund may elect to pass
through to shareholders the income tax credit for taxes paid to foreign
countries. Foreign source income and foreign tax expense per outstanding share
on July 31, 2003 are as follows:
FOREIGN FOREIGN
SOURCE TAX
INCOME EXPENSE
-------- -------
International Equity Fund 0.19 0.03
International GDP Fund 0.28 0.03
If elected, the pass-through of the foreign tax credit will only affect those
persons who are shareholders on the dividend record date in December 2003. These
shareholders will receive more detailed information along with their 2003 Form
1099-DIV.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Advisor receives for its services an annual
investment advisory fee based on a percentage of each Fund's average daily net
assets, as follows: 0.70% for the Small Cap Growth Fund and Large Cap Core Fund,
0.80% for the Mid Cap Growth Fund, Large Cap Opportunity Fund (advised by
Heartland Capital Management, Inc.), Quality Growth Fund, Balanced Fund and
Disciplined Large Cap Value Fund, 0.30% for the Equity Index Fund, 1.00% for the
Micro Cap Value Fund, Multi Cap Value Fund, Strategic Income Fund, Technology
Fund, Worldwide Fund and International Equity Fund, 0.90% for the Small Cap
Value Fund, 0.15% for the LifeModel Aggressive FundSM, LifeModel Moderately
Aggressive FundSM, LifeModel Moderate FundSM, LifeModel Moderately Conservative
FundSM and LifeModel Conservative FundSM, 0.75% for the International GDP Fund,
0.60% for the Bond Fund, 0.55% for the Intermediate Bond Fund, U.S.
Government Bond Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund and
Ohio Municipal Bond Fund, 0.50% for the Short Term Bond Fund and 0.45% for the
Michigan Municipal Bond Fund.
Chartwell Investment Partners L.P. is the Small Cap Value Fund's Sub-Advisor.
Morgan Stanley Asset Management, Inc. is the International Equity Fund's
Sub-Advisor. The Advisor compensates the Sub-Advisors at a rate based on the
Fund's average daily net assets.
ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third") serves as the Trust's
administrator. The administrator generally assists in all aspects of the Trust's
administration and operations including providing the Funds with certain
administrative personnel and services necessary to operate the Funds. Under the
terms of the administration agreement, Fifth Third's fees are computed as a
percentage of the daily average net assets of the Trust for the period.
Administration fees are computed at 0.20% of the first $1 billion of the average
daily net assets of the Trust, 0.18% of the average daily net assets of the
Trust between $1 billion and $2 billion, and 0.17% of more than $2 billion of
the average daily net assets of the Trust. In addition, there shall be an annual
fee of $10,000 per class in excess of four classes per Fund. Effective with the
start of fiscal year 2003, any Fund that commences operations shall be subject
to an annual minimum fee of $20,000. Pursuant to a separate agreement with Fifth
Third, BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned
subsidiary of The BISYS Group, Inc., performs sub-administrative services on
behalf of the Funds including providing certain administrative personnel and
services necessary to operate the Funds, for which it receives a fee from Fifth
Third computed as a percentage of the average daily net assets of the Trust.
163
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- ------------------------------------------------------------------------------
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's
principal distributor. Under the terms of the Plan, the Funds will compensate
the principal distributor from the net assets of the Funds' Class A Shares,
Class B Shares, Class C Shares and Advisor Shares to finance activities intended
to result in the sales of each Funds' shares. The Plan provides that the Funds
may incur distribution services fees up to 0.25% of the average daily net assets
for Class A Shares, up to 1.00% of the average daily net assets for Class B
Shares, up to 0.75% of the average daily net assets for Class C Shares and up to
0.50% of the average daily net assets for Advisor Shares, annually, to
compensate the distributor. For the period ended July 31, 2003, the Distributor
received $3,849,812 from commissions earned on sales of Class A Shares and
redemption of Class B and Class C Shares, of which, the Distributor re-allowed
$3,624,890 to affiliated broker-dealers of the Funds.
ADMINISTRATIVE SERVICES FEE--The Trust has adopted an Administrative Services
Agreement with the distributor with respect to Class C Shares. Under the Plan,
the Funds may make payments up to 0.25% of the average daily net assets for
Class C Shares in exchange for certain administrative services fees for
shareholders and for the maintenance of shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth
Third serves as transfer and dividend disbursing agent, maintains the Funds'
accounting records and is the Funds' custodian for which it receives a fee based
on the level of each Fund's average net assets for the period, plus
out-of-pocket expenses. Transfer Agent fees are computed at 0.0225% of the
average daily net assets of each Funds' shares. In addition, there shall be an
annual fee of $7,500 per additional class of shares per Fund. Accounting fees
are computed at 0.02% of the average daily net assets of each Funds' shares up
to $500 million, 0.015% of the average daily net assets of each Funds' shares
between $500 million and $1 billion, and 0.01% of more than $1 billion of the
average daily net assets of each Funds' shares. The minimum annual fee per Fund
shall be $30,000. In addition, there shall be an annual fee of $10,000 per
additional class of shares per Fund. Custody fees are computed at 0.01% of the
average daily net assets of each Funds' shares up to $25 million, 0.0075% of the
average daily net assets of each Funds' shares between $25 million and $100
million, 0.005% of the average daily net assets of each Funds' shares between
$100 million and $200 million, and 0.0025% of more than $200 million of the
average daily net assets of each Funds' shares plus transaction charges.
Pursuant to a separate agreement with Fifth Third, BISYS Fund Services Ohio,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., performs sub-transfer
and dividend disbursing agent services and sub-accounting services on behalf of
the Funds, for which it receives a fee from Fifth Third computed as a percentage
of the average daily net assets of each Fund.
Certain officers of the Trust are officers of the above companies, but are not
paid any fees directly by the Trust for serving as officers of the Trust.
Effective with the Reorganization of the Funds, Fifth Third and the Advisor have
agreed to waive fees and/or reimburse expenses to limit total annual fund
operating expenses as follows:
INSTITUTIONAL CLASS A ADVISOR
SHARES SHARES SHARES
------------- -------- -------
Large Cap Core Fund 0.92% 1.17% NA
Equity Index Fund 0.40% 0.65% --
Multi Cap Value Fund 1.39% -- 1.89%
Strategic Income Fund 1.35% NA 1.85%
Worldwide Fund 1.44% NA 1.94%
Bond Fund 0.80% 1.05% --
Intermediate Bond Fund 0.76% 1.01% NA
Short Term Bond Fund 0.74% 0.89% NA
Municipal Bond Fund 0.79% 1.04% --
Intermediate Municipal Bond Fund 0.73% 0.98% NA
Michigan Municipal Bond Fund 0.69% 0.84% NA
The Funds' Advisor and Administrator have contractually agreed to waive fees
and/or reimburse expenses to limit total annual fund operating expenses to the
ratios above. These waivers and/or reimbursements will remain in effect until
November 30, 2003.
164
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- ------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES
------------- ------- ------- -------
LifeModel Aggressive FundSM 0.08% 0.33% 1.08% 1.08%
LifeModel Moderately Aggressive FundSM 0.08% 0.33% 1.08% 1.08%
LifeModel Moderate FundSM 0.08% 0.33% 1.08% 1.08%
LifeModel Moderately Conservative FundSM 0.08% 0.33% 1.08% 1.08%
LifeModel Conservative FundSM 0.08% 0.33% 1.08% 1.08%
The Funds' Advisor has entered into an Expense Limitation Agreement (the
"Agreement") in which the Advisor has contractually agreed to waive fees and/or
reimburse expenses through November 30, 2005, to limit total annual fund
operating expenses for the Funds above. Under the terms of the Agreement, fees
waived or expenses reimbursed by the Advisor are subject to reimbursement by the
Funds only during a month in which the Agreement is in effect, but no
reimbursement payment will be made by the Funds if it would result in the Funds
exceeding the expense limitation described above.
As a result of certain trading errors that occurred in June 2003, the
Worldwide Fund was reimbursed $53,499 by the Advisor to offset losses realized
on the disposal of investments.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the year
ended July 31, 2003, were as follows (Amounts in thousands):
PURCHASES SALES
------------ ------------
Small Cap Growth Fund $ 256,860 $ 355,665
Mid Cap Growth Fund 138,959 75,872
Large Cap Opportunity Fund 11,529 15,478
Quality Growth Fund 294,450 169,458
Large Cap Core Fund 44,444 353,357
Equity Index Fund 12,936 58,863
Balanced Fund 352,046 366,092
Micro Cap Value Fund 54,631 25,068
Small Cap Value Fund 80,014 20,552
Multi Cap Value Fund 119,543 34,513
Disciplined Large Cap Value Fund 373,103 170,524
LifeModel Aggressive FundSM 53,261 14,781
LifeModel Moderately Aggressive FundSM 120,295 24,138
LifeModel Moderate FundSM 130,503 25,627
LifeModel Moderately Conservative FundSM 84,652 21,339
LifeModel Conservative FundSM 46,047 11,150
Strategic Income Fund 126,819 30,772
Technology Fund 72,038 73,446
Worldwide Fund 152,322 153,402
International Equity Fund 64,127 59,111
International GDP Fund 13,661 67,422
Bond Fund 1,224,847 1,299,179
Intermediate Bond Fund 1,940,924 2,016,697
Short Term Bond Fund 506,463 283,487
U.S. Government Bond Fund 224,758 201,560
Municipal Bond Fund 18,419 46,473
Intermediate Municipal Bond Fund 264,088 265,000
Ohio Municipal Bond Fund 36,925 37,448
Michigan Municipal Bond Fund 41,904 13,015
165
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
(6) CONCENTRATION OF CREDIT RISK
The Ohio Municipal Bond Fund and the Michigan Municipal Bond Fund invest a
substantial portion of their assets in debt obligations issued by the State of
Ohio and the State of Michigan, respectively, and their political subdivisions,
agencies and public authorities. The Funds are more susceptible to factors
adversely affecting issuers of Ohio and Michigan municipal securities than a
Fund that is not concentrated in these issuers to the same extent.
The International Equity Fund and the International GDP Fund invest in equity
and fixed income securities of non-U.S. issuers. Although the Funds each
maintain a diversified investment portfolio, 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.
(7) CHANGE IN ACCOUNTING PRINCIPLE
As required, effective August 1, 2001, the Funds have adopted the
provisions of the AICPA Audit and Accounting Guide for Investment Companies and
began accreting discounts or amortizing premiums on debt securities. Prior to
August 1, 2001, the Balanced Fund, U.S. Government Bond Fund and the Ohio
Municipal Bond Fund did not accrete discounts on debt securities. The cumulative
effect of this accounting change had no impact on total net assets of the Fund,
but resulted in the following change in cost of securities and the corresponding
change in net unrealized appreciation (depreciation), based on securities held
by the Fund on August 1, 2001 (Amounts in thousands):
UNREALIZED
COST OF APPRECIATION
SECURITIES (DEPRECIATION)
---------- --------------
Balanced Fund $ 4 $ (4)
U.S. Government Bond Fund 23 (23)
Ohio Municipal Bond Fund 161 (161)
The effect of this change for the year ended July 31, 2002 was as follows
(Amounts in thousands):
NET UNREALIZED REALIZED
INVESTMENT APPRECIATION GAINS
INCOME (DEPRECIATION) (LOSSES)
---------- -------------- --------
Balanced Fund $ 434 $ (424) $ (10)
U.S. Government Bond Fund 131 (130) (1)
Ohio Municipal Bond Fund 60 (37) (23)
(8) SUBSEQUENT EVENTS
Effective August 1, 2003, the Short Term Bond Fund launched Class C Shares.
On August 12, 2003 and effective as of August 13, 2003, the Board of Trustees
terminated the investment advisory contract with Heartland Capital Management,
Inc. ("Heartland") and replaced Heartland with the Advisor as the investment
advisor to the Large Cap Opportunity Fund. The Advisor will continue to provide
investment advisory services, under an interim advisory contract, until
shareholder approval of an Amended and Restated Investment Advisory Contract is
obtained.
166
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FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
----------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
--------- ---------- ---------- --------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 18.39 0.03 (1.08) (1.05)
Year ended 12/31/99 $ 15.46 0.02 4.16 4.18
Year ended 12/31/00 $ 19.29 -- (0.08) (0.08)
1/01/01 to 7/31/01(c) $ 19.02 (0.02) (1.08) (1.10)
Year ended 7/31/02 $ 17.86 (0.04) (3.56) (3.60)
Year ended 7/31/03 $ 13.70 (0.03) 2.23 2.20
--------- ---------- ---------- ---------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 12/31/98 $ 18.33 (0.01) (1.08) (1.09)
Year ended 12/31/99 $ 15.39 (0.02) 4.15 4.13
Year ended 12/31/00 $ 19.19 -- (0.13) (0.13)
1/01/01 to 7/31/01(c) $ 18.87 (0.04) (1.06) (1.10)
Year ended 7/31/02 $ 17.71 (0.07) (3.56) (3.63)
Year ended 7/31/03 $ 13.52 (0.06) 2.19 2.13
--------- ---------- ---------- ---------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 16.54 (0.05) (2.34) (2.39)
Year ended 7/31/03 $ 13.59 (0.14) 2.16 2.02
--------- ---------- ---------- ---------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 16.54 (0.11) (2.28) (2.39)
Year ended 7/31/03 $ 13.59 (0.14) 2.17 2.03
--------- ---------- ---------- ---------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 16.54 (0.03) (2.31) (2.34)
Year ended 7/31/03 $ 13.64 (0.06) 2.17 2.11
--------- ---------- ---------- ---------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 15.40 (0.04) 1.95 1.91
Year ended 7/31/00 $ 15.87 (0.04) 4.63 4.59
Year ended 7/31/01 $ 19.28 -- (1.69) (1.69)
Year ended 7/31/02 $ 15.10 (0.06) (4.33) (4.39)
Year ended 7/31/03 $ 10.24 (0.07)(3) 1.85 1.78
--------- ---------- ---------- ---------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/99 $ 16.19 (0.10) 1.17 1.07
Year ended 7/31/00 $ 15.82 (0.08) 4.60 4.52
Year ended 7/31/01 $ 19.16 -- (1.73) (1.73)
Year ended 7/31/02 $ 14.94 (0.09) (4.27) (4.36)
Year ended 7/31/03 $ 10.11 (0.09) 1.80 1.71
--------- ---------- ---------- ---------
MID CAP GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 17.91 -- (0.56) (0.56)
Year ended 7/31/02 $ 14.86 (0.14) (4.27) (4.41)
Year ended 7/31/03 $ 9.98 (0.17)(3) 1.78 1.61
--------- ---------- ---------- ---------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/99 $ 15.98 (0.18) 1.16 0.98
Year ended 7/31/00 $ 15.52 (0.16) 4.47 4.31
Year ended 7/31/01 $ 18.65 -- (1.80) (1.80)
Year ended 7/31/02 $ 14.36 (0.18) (4.08) (4.26)
Year ended 7/31/03 $ 9.63 (0.16)(3) 1.70 1.54
--------- ---------- ---------- ---------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 13.47 (0.04) (2.87) (2.91)
Year ended 7/31/03 $ 10.09 (0.12)(3) 1.81 1.69
--------- ---------- ---------- ---------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
--------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
------- -------- ----------- ------- --------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.03) (1.85) (1.88) $ 15.46 (6.15%)
Year ended 12/31/99 (0.02) (0.33) (0.35) $ 19.29 27.98%
Year ended 12/31/00 -- (0.19) (0.19) $ 19.02 (0.38%)
1/01/01 to 7/31/01(c) -- (0.06) (0.06) $ 17.86 (5.75%)*
Year ended 7/31/02 -- (0.56) (0.56) $ 13.70 (20.80%)
Year ended 7/31/03 -- -- -- $ 15.90 16.06%
------- -------- ----------- ------- --------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 12/31/98 -- (1.85) (1.85) $ 15.39 (6.40%)
Year ended 12/31/99 -- (0.33) (0.33) $ 19.19 27.73%
Year ended 12/31/00 -- (0.19) (0.19) $ 18.87 (0.59%)
1/01/01 to 7/31/01(c) -- (0.06) (0.06) $ 17.71 (5.85%)*
Year ended 7/31/02 -- (0.56) (0.56) $ 13.52 (21.15%)
Year ended 7/31/03 -- -- -- $ 15.65 15.75%
------- -------- ----------- ------- --------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 -- (0.56) (0.56) $ 13.59 (13.01%)*
Year ended 7/31/03 -- -- -- $ 15.61 14.86%
------- -------- ----------- ------- --------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 -- (0.56) (0.56) $ 13.59 (13.01%)*
Year ended 7/31/03 -- -- -- $ 15.62 14.94%
------- -------- ----------- ------- --------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 -- (0.56) (0.56) $ 13.64 (12.69%)*
Year ended 7/31/03 -- -- -- $ 15.75 15.47%
------- -------- ----------- ------- --------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 -- (1.44) (1.44) $ 15.87 13.13%*
Year ended 7/31/00 -- (1.18) (1.18) $ 19.28 30.65%
Year ended 7/31/01 -- (2.49) (2.49) $ 15.10 (9.94%)
Year ended 7/31/02 -- (0.47) (0.47) $ 10.24 (30.02%)
Year ended 7/31/03 -- -- -- $ 12.02 17.38%
------- -------- ----------- ------- --------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/99 -- (1.44) (1.44) $ 15.82 7.29%
Year ended 7/31/00 -- (1.18) (1.18) $ 19.16 30.22%
Year ended 7/31/01 -- (2.49) (2.49) $ 14.94 (10.18%)
Year ended 7/31/02 -- (0.47) (0.47) $ 10.11 (30.21%)
Year ended 7/31/03 -- -- -- $ 11.82 17.03%
------- -------- ----------- ------- --------
MID CAP GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 -- (2.49) (2.49) $ 14.86 (4.46%)*
Year ended 7/31/02 -- (0.47) (0.47) $ 9.98 (30.65%)
Year ended 7/31/03 -- -- -- $ 11.59 16.13%
------- -------- ----------- ------- --------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/99 -- (1.44) (1.44) $ 15.52 6.79%
Year ended 7/31/00 -- (1.18) (1.18) $ 18.65 29.48%
Year ended 7/31/01 -- (2.49) (2.49) $ 14.36 (10.95%)
Year ended 7/31/02 -- (0.47) (0.47) $ 9.63 (30.67%)
Year ended 7/31/03 -- -- -- $ 11.17 15.99%
------- -------- ----------- ------- --------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 -- (0.47) (0.47) $ 10.09 (19.75%)*
Year ended 7/31/03 -- -- -- $ 11.78 16.75%
------- -------- ----------- ------- --------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
---------- -------- ----------- ---------- -------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 760,335 0.94% 0.18% 0.95% 41%
Year ended 12/31/99 $ 746,428 0.94% 0.14% 0.95% 19%
Year ended 12/31/00 $ 804,758 0.91% (0.11%) 0.92% 28%
1/01/01 to 7/31/01(c) $ 724,275 0.93%** (0.16%)** 0.93%** 13%
Year ended 7/31/02 $ 485,623 0.93% (0.21%) 0.96% 25%
Year ended 7/31/03 $ 391,934 0.93% (0.16%) 0.98% 63%
---------- -------- ----------- ---------- -------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 12/31/98 $ 23,455 1.19% (0.07%) 1.20% 41%
Year ended 12/31/99 $ 26,282 1.19% (0.11%) 1.20% 19%
Year ended 12/31/00 $ 25,231 1.16% (0.36%) 1.17% 28%
1/01/01 to 7/31/01(c) $ 21,481 1.18%** (0.41%)** 1.18%** 13%
Year ended 7/31/02 $ 16,468 1.18% (0.46%) 1.21% 25%
Year ended 7/31/03 $ 16,471 1.19% (0.42%) 1.23% 63%
---------- -------- ----------- ---------- -------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 872 1.93%** (1.25%)** 1.98%** 25%
Year ended 7/31/03 $ 1,407 1.94% (1.17%) 1.98% 63%
---------- -------- ----------- ---------- -------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 346 1.93%** (1.26%)** 1.97%** 25%
Year ended 7/31/03 $ 436 1.93% (1.16%) 1.98% 63%
---------- -------- ----------- ---------- -------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 220 1.43%** (0.74%)** 1.48%** 25%
Year ended 7/31/03 $ 469 1.44% (0.66%) 1.48% 63%
---------- -------- ----------- ---------- -------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 191,987 0.97%** (0.26%)** 1.04%** 49%
Year ended 7/31/00 $ 242,641 0.99% (0.26%) 1.04% 42%
Year ended 7/31/01 $ 255,634 1.02% (0.24%) 1.06% 26%
Year ended 7/31/02 $ 207,807 1.12% (0.49%) 1.14% 27%
Year ended 7/31/03 $ 335,285 1.10% (0.65%) 1.10% 25%
---------- -------- ----------- ---------- -------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/99 $ 27,966 1.28% (0.59%) 1.39% 49%
Year ended 7/31/00 $ 36,430 1.24% (0.51%) 1.29% 42%
Year ended 7/31/01 $ 41,278 1.28% (0.49%) 1.32% 26%
Year ended 7/31/02 $ 30,165 1.36% (0.74%) 1.39% 27%
Year ended 7/31/03 $ 35,504 1.35% (0.89%) 1.35% 25%
---------- -------- ----------- ---------- -------
MID CAP GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 3,757 2.05%** (1.24%)** 2.09%** 26%
Year ended 7/31/02 $ 5,008 2.12% (1.51%) 2.15% 27%
Year ended 7/31/03 $ 5,846 2.10% (1.64%) 2.10% 25%
---------- -------- ----------- ---------- -------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/99 $ 794 1.85% (1.07%) 2.17% 49%
Year ended 7/31/00 $ 979 1.74% (1.01%) 2.04% 42%
Year ended 7/31/01 $ 1,410 1.99% (1.20%) 2.15% 26%
Year ended 7/31/02 $ 1,061 2.12% (1.49%) 2.14% 27%
Year ended 7/31/03 $ 1,525 2.10% (1.64%) 2.10% 25%
---------- -------- ----------- ---------- -------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 145 1.68%** (1.06%)** 1.71%** 27%
Year ended 7/31/03 $ 240 1.60% (1.14%) 1.60% 25%
---------- -------- ----------- ---------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
168-169 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET NET GAINS/(LOSSES) NET ASSETS
VALUE, INVESTMENT FROM RESULTING
BEGINNING INCOME/ INVESTMENT FROM
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS
--------- --------- ----------- ----------
LARGE CAP OPPORTUNITY FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 31.26 (0.06) 6.71 6.65
Year ended 7/31/00 $ 37.28 (0.09) 1.59 1.50
Year ended 7/31/01 $ 38.23 -- (11.73) (11.73)
Year ended 7/31/02 $ 25.47 (0.21) (7.20) (7.41)
Year ended 7/31/03 $ 18.06 (0.12) 0.23 0.11
--------- --------- ----------- ----------
LARGE CAP OPPORTUNITY FUND CLASS A SHARES
Year ended 7/31/99 $ 32.35 (0.09) 5.57 5.48
Year ended 7/31/00 $ 37.20 (0.21) 1.61 1.40
Year ended 7/31/01 $ 38.05 -- (11.74) (11.74)
Year ended 7/31/02 $ 25.28 (0.29) (7.11) (7.40)
Year ended 7/31/03 $ 17.88 (0.16) 0.22 0.06
--------- --------- ----------- ----------
LARGE CAP OPPORTUNITY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 34.43 -- (7.81) (7.81)
Year ended 7/31/02 $ 25.59 (0.34) (7.40) (7.74)
Year ended 7/31/03 $ 17.85 (0.24) 0.16 (0.08)
--------- --------- ----------- ----------
LARGE CAP OPPORTUNITY FUND CLASS C SHARES
Year ended 7/31/99 $ 32.28 (0.23) 5.50 5.27
Year ended 7/31/00 $ 36.92 (0.47) 1.66 1.19
Year ended 7/31/01 $ 37.56 -- (11.78) (11.78)
Year ended 7/31/02 $ 24.75 (0.50) (6.88) (7.38)
Year ended 7/31/03 $ 17.37 (0.30) 0.23 (0.07)
--------- --------- ----------- ----------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 19.45 (0.02) 5.89 5.87
Year ended 7/31/00 $ 23.37 (0.02) 4.06 4.04
Year ended 7/31/01 $ 26.24 -- (4.85) (4.85)
Year ended 7/31/02 $ 18.48 (0.04) (4.94) (4.98)
Year ended 7/31/03 $ 12.91 0.01 1.31 1.32
--------- --------- ----------- ----------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/99 $ 20.26 (0.06) 5.06 5.00
Year ended 7/31/00 $ 23.31 (0.07) 4.05 3.98
Year ended 7/31/01 $ 26.12 -- (4.88) (4.88)
Year ended 7/31/02 $ 18.33 (0.08) (4.89) (4.97)
Year ended 7/31/03 $ 12.77 (0.02) 1.29 1.27
--------- --------- ----------- ----------
QUALITY GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 24.17 -- (3.03) (3.03)
Year ended 7/31/02 $ 18.23 (0.16) (4.88) (5.04)
Year ended 7/31/03 $ 12.60 (0.12) 1.27 1.15
--------- --------- ----------- ----------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/99 $ 20.10 (0.18) 5.00 4.82
Year ended 7/31/00 $ 22.97 (0.19) 3.98 3.79
Year ended 7/31/01 $ 25.59 -- (4.90) (4.90)
Year ended 7/31/02 $ 17.78 (0.20) (4.71) (4.91)
Year ended 7/31/03 $ 12.28 (0.11) 1.23 1.12
--------- --------- ----------- ----------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 16.79 (0.03) (3.42) (3.45)
Year ended 7/31/03 $ 12.75 (0.03) 1.26 1.23
--------- --------- ----------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
-------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
-------- ------- ------------ ------- -------
LARGE CAP OPPORTUNITY FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 -- (0.63) (0.63) $ 37.28 21.53%*
Year ended 7/31/00 -- (0.55) (0.55) $ 38.23 4.07%
Year ended 7/31/01 -- (1.03) (1.03) $ 25.47 (31.27%)
Year ended 7/31/02 -- -- -- $ 18.06 (29.09%)
Year ended 7/31/03 -- -- -- $ 18.17 0.61%
-------- ------- ------------ ------- -------
LARGE CAP OPPORTUNITY FUND CLASS A SHARES
Year ended 7/31/99 -- (0.63) (0.63) $ 37.20 17.18%
Year ended 7/31/00 -- (0.55) (0.55) $ 38.05 3.81%
Year ended 7/31/01 -- (1.03) (1.03) $ 25.28 (31.44%)
Year ended 7/31/02 -- -- -- $ 17.88 (29.27%)
Year ended 7/31/03 -- -- -- $ 17.94 0.34%
-------- ------- ------------ ------- -------
LARGE CAP OPPORTUNITY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 -- (1.03) (1.03) $ 25.59 (23.35%)*
Year ended 7/31/02 -- -- -- $ 17.85 (30.25%)
Year ended 7/31/03 -- -- -- $ 17.77 (0.45%)
-------- ------- ------------ ------- -------
LARGE CAP OPPORTUNITY FUND CLASS C SHARES
Year ended 7/31/99 -- (0.63) (0.63) $ 36.92 16.56%
Year ended 7/31/00 -- (0.55) (0.55) $ 37.56 3.26%
Year ended 7/31/01 -- (1.03) (1.03) $ 24.75 (31.97%)
Year ended 7/31/02 -- -- -- $ 17.37 (29.82%)
Year ended 7/31/03 -- -- -- $ 17.30 (0.40%)
-------- ------- ------------ ------- -------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 -- (1.95) (1.95) $ 23.37 32.08%*
Year ended 7/31/00 -- (1.17) (1.17) $ 26.24 17.82%
Year ended 7/31/01 -- (2.91) (2.91) $ 18.48 (19.93%)
Year ended 7/31/02 -- (0.59) (0.59) $ 12.91 (27.90%)
Year ended 7/31/03 --^ -- --^ $ 14.23 10.23%
-------- ------- ------------ ------- -------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/99 -- (1.95) (1.95) $ 23.31 26.48%
Year ended 7/31/00 -- (1.17) (1.17) $ 26.12 17.60%
Year ended 7/31/01 -- (2.91) (2.91) $ 18.33 (20.16%)
Year ended 7/31/02 -- (0.59) (0.59) $ 12.77 (28.08%)
Year ended 7/31/03 -- -- -- $ 14.04 9.95%
-------- ------- ------------ ------- -------
QUALITY GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 -- (2.91) (2.91) $ 18.23 (24.58%)*
Year ended 7/31/02 -- (0.59) (0.59) $ 12.60 (28.63%)
Year ended 7/31/03 -- -- -- $ 13.75 9.13%
-------- ------- ------------ ------- -------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/99 -- (1.95) (1.95) $ 22.97 25.76%
Year ended 7/31/00 -- (1.17) (1.17) $ 25.59 17.01%
Year ended 7/31/01 -- (2.91) (2.91) $ 17.78 (20.71%)
Year ended 7/31/02 -- (0.59) (0.59) $ 12.28 (28.62%)
Year ended 7/31/03 -- -- -- $ 13.40 9.12%
-------- ------- ------------ ------- -------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 -- (0.59) (0.59) $ 12.75 (19.05%)*
Year ended 7/31/03 -- -- -- $ 13.98 9.65%
-------- ------- ------------ ------- -------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- ------- -------- ------- -------
LARGE CAP OPPORTUNITY FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 61,943 1.21%** (0.24%)** 1.22%** 51%
Year ended 7/31/00 $ 58,939 1.07% (0.23%) 1.07% 53%
Year ended 7/31/01 $ 31,415 1.11% (0.48%) 1.24% 139%
Year ended 7/31/02 $ 16,623 1.38% (0.79%) 1.38% 70%
Year ended 7/31/03 $ 14,659 1.47% (0.67%) 1.63% 50%
--------- ------- -------- ------- -------
LARGE CAP OPPORTUNITY FUND CLASS A SHARES
Year ended 7/31/99 $ 49,936 1.41% (0.47%) 1.43% 51%
Year ended 7/31/00 $ 42,842 1.32% (0.47%) 1.32% 53%
Year ended 7/31/01 $ 20,106 1.36% (0.73%) 1.48% 139%
Year ended 7/31/02 $ 9,132 1.63% (1.03%) 1.63% 70%
Year ended 7/31/03 $ 8,264 1.72% (0.92%) 1.89% 50%
--------- ------- -------- ------- -------
LARGE CAP OPPORTUNITY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 158 2.17%** (1.54%)** 2.57%** 139%
Year ended 7/31/02 $ 285 2.27% (1.89%) 2.27% 70%
Year ended 7/31/03 $ 350 2.47% (1.68%) 2.63% 50%
--------- ------- -------- ------- -------
LARGE CAP OPPORTUNITY FUND CLASS C SHARES
Year ended 7/31/99 $ 6,653 1.95% (1.00%) 2.21% 51%
Year ended 7/31/00 $ 4,171 1.82% (0.97%) 2.07% 53%
Year ended 7/31/01 $ 1,935 2.05% (1.42%) 2.32% 139%
Year ended 7/31/02 $ 837 2.38% (1.78%) 2.38% 70%
Year ended 7/31/03 $ 727 2.47% (1.67%) 2.64% 50%
--------- ------- -------- ------- -------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 583,753 1.00%** (0.10%)** 1.05%** 34%
Year ended 7/31/00 $ 814,820 1.00% (0.10%) 1.03% 21%
Year ended 7/31/01 $ 716,251 1.02% (0.22%) 1.02% 20%
Year ended 7/31/02 $ 566,235 1.09% (0.24%) 1.09% 20%
Year ended 7/31/03 $ 795,988 1.08% 0.05% 1.08% 19%
--------- ------- -------- ------- -------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/99 $ 116,963 1.21% (0.29%) 1.29% 34%
Year ended 7/31/00 $ 208,342 1.25% (0.35%) 1.28% 21%
Year ended 7/31/01 $ 340,596 1.28% (0.46%) 1.28% 20%
Year ended 7/31/02 $ 221,972 1.34% (0.49%) 1.34% 20%
Year ended 7/31/03 $ 211,221 1.33% (0.19%) 1.33% 19%
--------- ------- -------- ------- -------
QUALITY GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 14,531 2.05%** (1.22%)** 2.05%** 20%
Year ended 7/31/02 $ 19,678 2.10% (1.25%) 2.10% 20%
Year ended 7/31/03 $ 20,700 2.08% (0.94%) 2.08% 19%
--------- ------- -------- ------- -------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/99 $ 9,775 1.80% (0.89%) 2.10% 34%
Year ended 7/31/00 $ 13,791 2.00% (0.85%) 2.28% 21%
Year ended 7/31/01 $ 11,687 1.98% (1.17%) 2.11% 20%
Year ended 7/31/02 $ 8,044 2.09% (1.24%) 2.09% 20%
Year ended 7/31/03 $ 8,380 2.08% (0.94%) 2.08% 19%
--------- ------- -------- ------- -------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 366 1.69%** (0.80%)** 1.69%** 20%
Year ended 7/31/03 $ 1,205 1.58% (0.48%) 1.58% 19%
--------- ------- -------- ------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
170-171 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-----------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET NET GAINS/(LOSSES) NET ASSETS
VALUE, INVESTMENT FROM RESULTING
BEGINNING INCOME/ INVESTMENT FROM
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS
------- -------- ---------- ----------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 15.55 0.13 4.03 4.16
Year ended 12/31/99 $ 18.03 0.12 3.20 3.32
Year ended 12/31/00 $ 20.42 0.07 (2.24) (2.17)
1/1/01 to 7/31/01(c) $ 16.84 0.03 (1.43) (1.40)
Year ended 7/31/02 $ 15.17 0.08 (3.66) (3.58)
Year ended 7/31/03 $ 11.20 0.12 0.63 0.75
------- -------- ---------- ----------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 12/31/98 $ 15.44 0.08 4.00 4.08
Year ended 12/31/99 $ 17.88 0.07 3.18 3.25
Year ended 12/31/00 $ 20.25 0.02 (2.22) (2.20)
1/1/01 to 7/31/01(c) $ 16.69 0.02 (1.42) (1.40)
Year ended 7/31/02 $ 15.02 0.05 (3.62) (3.57)
Year ended 7/31/03 $ 11.07 0.08 0.64 0.72
------- -------- ---------- ----------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 13.86 0.02 (2.41) (2.39)
Year ended 7/31/03 $ 11.12 --^ 0.65 0.65
------- -------- ---------- ----------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 13.86 0.03 (2.40) (2.37)
Year ended 7/31/03 $ 11.15 0.01 0.63 0.64
------- -------- ---------- ----------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 19.14 0.24 5.14 5.38
Year ended 12/31/99 $ 24.24 0.24 4.68 4.92
Year ended 12/31/00 $ 28.31 0.22 (2.81) (2.59)
1/1/01 to 7/31/01(c) $ 25.18 0.12 (2.08) (1.96)
Year ended 7/31/02 $ 23.11 0.23 (5.70) (5.47)
Year ended 7/31/03 $ 17.42 0.24 1.51 1.75
------- -------- ---------- ----------
EQUITY INDEX FUND CLASS A SHARES
Year ended 12/31/98 $ 19.15 0.18 5.14 5.32
Year ended 12/31/99 $ 24.25 0.18 4.68 4.86
Year ended 12/31/00 $ 28.32 0.15 (2.80) (2.65)
1/1/01 to 7/31/01(c) $ 25.20 0.09 (2.09) (2.00)
Year ended 7/31/02 $ 23.10 0.17 (5.69) (5.52)
Year ended 7/31/03 $ 17.38 0.20 1.50 1.70
------- -------- ---------- ----------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.06 (3.69) (3.63)
Year ended 7/31/03 $ 17.32 0.07 1.50 1.57
------- -------- ---------- ----------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.10 (3.73) (3.63)
Year ended 7/31/03 $ 17.33 0.08 1.49 1.57
------- -------- ---------- ----------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.13 (3.67) (3.54)
Year ended 7/31/03 $ 17.39 0.18 1.48 1.66
------- -------- ---------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
--------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
------- ------ ----------- -------- --------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.14) (1.54) (1.68) $ 18.03 28.07%
Year ended 12/31/99 (0.12) (0.81) (0.93) $ 20.42 18.79%
Year ended 12/31/00 (0.07) (1.34) (1.41) $ 16.84 (11.25%)
1/1/01 to 7/31/01(c) (0.03) (0.24) (0.27) $ 15.17 (8.24%)*
Year ended 7/31/02 (0.08) (0.31) (0.39) $ 11.20 (24.07%)
Year ended 7/31/03 (0.11) -- (0.11) $ 11.84 6.79%
------- ------ ----------- -------- --------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 12/31/98 (0.10) (1.54) (1.64) $ 17.88 27.68%
Year ended 12/31/99 (0.07) (0.81) (0.88) $ 20.25 18.53%
Year ended 12/31/00 (0.02) (1.34) (1.36) $ 16.69 (11.47%)
1/1/01 to 7/31/01(c) (0.03) (0.24) (0.27) $ 15.02 (8.36%)*
Year ended 7/31/02 (0.07) (0.31) (0.38) $ 11.07 (24.25%)
Year ended 7/31/03 (0.09) -- (0.09) $ 11.70 6.56%
------- ------ ----------- -------- --------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.04) (0.31) (0.35) $ 11.12 (15.86%)*
Year ended 7/31/03 (0.02) -- (0.02) $ 11.75 5.90%
------- ------ ----------- -------- --------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.03) (0.31) (0.34) $ 11.15 (15.66%)*
Year ended 7/31/03 (0.03) -- (0.03) $ 11.76 5.72%
------- ------ ----------- -------- --------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.24) (0.04) (0.28) $ 24.24 28.26%
Year ended 12/31/99 (0.24) (0.61) (0.85) $ 28.31 20.55%
Year ended 12/31/00 (0.22) (0.32) (0.54) $ 25.18 (9.30%)
1/1/01 to 7/31/01(c) (0.11) -- (0.11) $ 23.11 (7.83%)*
Year ended 7/31/02 (0.22) -- (0.22) $ 17.42 (23.82%)
Year ended 7/31/03 (0.24) -- (0.24) $ 18.93 10.22%
------- ------ ----------- -------- --------
EQUITY INDEX FUND CLASS A SHARES
Year ended 12/31/98 (0.18) (0.04) (0.22) $ 24.25 27.93%
Year ended 12/31/99 (0.18) (0.61) (0.79) $ 28.32 20.24%
Year ended 12/31/00 (0.15) (0.32) (0.47) $ 25.20 (9.52%)
1/1/01 to 7/31/01(c) (0.10) -- (0.10) $ 23.10 (7.94%)*
Year ended 7/31/02 (0.20) -- (0.20) $ 17.38 (24.03%)
Year ended 7/31/03 (0.21) -- (0.21) $ 18.87 9.90%
------- ------ ----------- -------- --------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.12) -- (0.12) $ 17.32 (15.32%)*
Year ended 7/31/03 (0.11) -- (0.11) $ 18.78 9.14%
------- ------ ----------- -------- --------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.11) -- (0.11) $ 17.33 (15.30%)*
Year ended 7/31/03 (0.12) -- (0.12) $ 18.78 9.14%
------- ------ ----------- -------- --------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.14) -- (0.14) $ 17.39 (14.89%)*
Year ended 7/31/03 (0.19) -- (0.19) $ 18.86 9.68%
------- ------ ----------- -------- --------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- ------ ---------- -------- -------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 827,828 0.93% 0.77% 0.94% 20%
Year ended 12/31/99 $ 822,414 0.92% 0.62% 0.93% 9%
Year ended 12/31/00 $ 624,860 0.91% 0.35% 0.92% 14%
1/1/01 to 7/31/01(c) $ 547,524 0.93%** 0.40%** 0.94%** 5%
Year ended 7/31/02 $ 520,727 0.93% 0.64% 0.97% 5%
Year ended 7/31/03 $ 181,278 0.92% 0.99% 0.99% 13%
--------- ------ ---------- -------- -------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 12/31/98 $ 50,458 1.18% 0.50% 1.19% 20%
Year ended 12/31/99 $ 58,336 1.18% 0.36% 1.19% 9%
Year ended 12/31/00 $ 47,847 1.16% 0.10% 1.17% 14%
1/1/01 to 7/31/01(c) $ 38,659 1.18%** 0.15%** 1.19%** 5%
Year ended 7/31/02 $ 23,320 1.18% 0.38% 1.22% 5%
Year ended 7/31/03 $ 21,288 1.17% 0.72% 1.24% 13%
--------- ------ ---------- -------- -------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 361 1.93%** (0.36%)** 1.99%** 5%
Year ended 7/31/03 $ 557 1.92% (0.05%) 1.98% 13%
--------- ------ ---------- -------- -------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 20 1.90%** (0.12%)** 1.97%** 5%
Year ended 7/31/03 $ 29 1.92% (0.04%) 1.99% 13%
--------- ------ ---------- -------- -------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 771,147 0.42% 1.10% 0.55% 12%
Year ended 12/31/99 $ 875,780 0.42% 0.92% 0.54% 9%
Year ended 12/31/00 $ 860,647 0.40% 0.80% 0.53% 9%
1/1/01 to 7/31/01(c) $ 822,909 0.40%** 0.86%** 0.53%** 4%
Year ended 7/31/02 $ 608,556 0.41% 1.06% 0.56% 9%
Year ended 7/31/03 $ 583,530 0.40% 1.42% 0.58% 2%
--------- ------ ---------- -------- -------
EQUITY INDEX FUND CLASS A SHARES
Year ended 12/31/98 $ 38,205 0.67% 0.85% 0.80% 12%
Year ended 12/31/99 $ 47,836 0.67% 0.67% 0.79% 9%
Year ended 12/31/00 $ 38,930 0.65% 0.55% 0.78% 9%
1/1/01 to 7/31/01(c) $ 33,765 0.65%** 0.61%** 0.78%** 4%
Year ended 7/31/02 $ 24,817 0.66% 0.81% 0.81% 9%
Year ended 7/31/03 $ 33,402 0.65% 1.16% 0.83% 2%
--------- ------ ---------- -------- -------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 1,315 1.40%** 0.08%** 1.57%** 9%
Year ended 7/31/03 $ 2,409 1.40% 0.40% 1.57% 2%
--------- ------ ---------- -------- -------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 635 1.41%** 0.11%** 1.58%** 9%
Year ended 7/31/03 $ 1,711 1.40% 0.39% 1.57% 2%
--------- ------ ---------- -------- -------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 7 0.82%** 0.62%** 0.88%** 9%
Year ended 7/31/03 $ 327 0.90% 0.84% 1.06% 2%
--------- ------ ---------- -------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
172-173 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET NET GAINS/(LOSSES) NET ASSETS
VALUE, INVESTMENT FROM RESULTING
BEGINNING INCOME/ INVESTMENT FROM
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS
-------- -------- ---------- ---------
BALANCED FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 14.60 0.22 2.27 2.49
Year ended 7/31/00 $ 16.13 0.23 2.60 2.83
Year ended 7/31/01 $ 17.39 0.18 (1.97) (1.79)
Year ended 7/31/02(e) $ 13.39 0.14 (2.27) (2.13)
Year ended 7/31/03 $ 10.91 0.15 0.49 0.64
-------- -------- ---------- ---------
BALANCED FUND CLASS A SHARES
Year ended 7/31/99 $ 14.99 0.20 1.86 2.06
Year ended 7/31/00 $ 16.12 0.17 2.62 2.79
Year ended 7/31/01 $ 17.37 0.18 (2.00) (1.82)
Year ended 7/31/02(e) $ 13.35 0.12 (2.27) (2.15)
Year ended 7/31/03 $ 10.86 0.13 0.48 0.61
-------- -------- ---------- ---------
BALANCED FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 16.53 0.17 (1.27) (1.10)
Year ended 7/31/02(e) $ 13.28 0.02 (2.24) (2.22)
Year ended 7/31/03 $ 10.75 0.04 0.48 0.52
-------- -------- ---------- ---------
BALANCED FUND CLASS C SHARES
Year ended 7/31/99 $ 15.01 0.11 1.88 1.99
Year ended 7/31/00 $ 16.13 0.12 2.57 2.69
Year ended 7/31/01 $ 17.35 0.15 (2.07) (1.92)
Year ended 7/31/02(e) $ 13.26 0.02 (2.24) (2.22)
Year ended 7/31/03 $ 10.73 0.04 0.48 0.52
-------- -------- ---------- ---------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) $ 12.58 0.07 (1.50) (1.43)
Year ended 7/31/03 $ 10.84 0.10 0.49 0.59
-------- -------- ---------- ---------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 5.00 (0.05) (0.09) (0.14)
Year ended 12/31/99 $ 4.82 (0.04) 1.08 1.04
Year ended 12/31/00 $ 5.62 0.06 (0.13) (0.07)
Year ended 12/31/01 $ 4.91 0.01 1.11 1.12
1/1/02 to 7/31/02(c) $ 6.03 (0.01) (0.13) (0.14)
Year ended 7/31/03 $ 5.89 (0.04)(3) 2.40 2.36
-------- -------- ---------- ---------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03
1/1/02 to 7/31/02(c) $ 5.96 (0.02) (0.12) (0.14)
Year ended 7/31/03 $ 5.82 (0.06)(3) 2.37 2.31
-------- -------- ---------- ---------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.03 0.02
1/1/02 to 7/31/02(c) $ 5.95 (0.03) (0.13) (0.16)
Year ended 7/31/03 $ 5.79 (0.10)(3) 2.33 2.23
-------- -------- ---------- ---------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03
1/1/02 to 7/31/02(c) $ 5.96 (0.03) (0.14) (0.17)
Year ended 7/31/03 $ 5.79 (0.10)(3) 2.33 2.23
-------- -------- ---------- ---------
MICRO CAP VALUE FUND ADVISOR SHARES
2/1/98(d) to 12/31/98 $ 5.00 (0.07) (0.09) (0.16)
Year ended 12/31/99 $ 4.80 (0.06) 1.08 1.02
Year ended 12/31/00 $ 5.58 0.03 (0.11) (0.08)
Year ended 12/31/01 $ 4.88 (0.02) 1.10 1.08
1/1/02 to 7/31/02(c) $ 5.96 (0.04) (0.11) (0.15)
Year ended 7/31/03 $ 5.81 (0.07)(3) 2.36 2.29
-------- -------- ---------- ---------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
---------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
-------- -------- ----------- -------- --------
BALANCED FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 (0.22) (0.74) (0.96) $ 16.13 17.63%*
Year ended 7/31/00 (0.23) (1.34) (1.57) $ 17.39 18.60%
Year ended 7/31/01 (0.21) (2.00) (2.21) $ 13.39 (11.64%)
Year ended 7/31/02(e) (0.15) (0.20) (0.35) $ 10.91 (16.34%)
Year ended 7/31/03 (0.17) -- (0.17) $ 11.38 5.94%
-------- -------- ----------- -------- --------
BALANCED FUND CLASS A SHARES
Year ended 7/31/99 (0.19) (0.74) (0.93) $ 16.12 14.30%
Year ended 7/31/00 (0.20) (1.34) (1.54) $ 17.37 18.28%
Year ended 7/31/01 (0.20) (2.00) (2.20) $ 13.35 (11.84%)
Year ended 7/31/02(e) (0.14) (0.20) (0.34) $ 10.86 (16.53%)
Year ended 7/31/03 (0.15) -- (0.15) $ 11.32 5.57%
-------- -------- ----------- -------- --------
BALANCED FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.15) (2.00) (2.15) $ 13.28 (8.14%)*
Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.75 (17.14%)
Year ended 7/31/03 (0.08) -- (0.08) $ 11.19 4.87%
-------- -------- ----------- -------- --------
BALANCED FUND CLASS C SHARES
Year ended 7/31/99 (0.13) (0.74) (0.87) $ 16.13 13.78%
Year ended 7/31/00 (0.13) (1.34) (1.47) $ 17.35 17.66%
Year ended 7/31/01 (0.17) (2.00) (2.17) $ 13.26 (12.47%)
Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.73 (17.16%)
Year ended 7/31/03 (0.08) -- (0.08) $ 11.17 4.90%
-------- -------- ----------- -------- --------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) (0.11) (0.20) (0.31) $ 10.84 (9.24%)*
Year ended 7/31/03 (0.13) -- (0.13) $ 11.30 5.39%
-------- -------- ----------- -------- --------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 -- (0.04) (0.04) $ 4.82 (2.87%)*
Year ended 12/31/99 -- (0.24) (0.24) $ 5.62 21.60%
Year ended 12/31/00 (0.05) (0.59) (0.64) $ 4.91 (1.21%)
Year ended 12/31/01 -- --^ --^ $ 6.03 22.90%
1/1/02 to 7/31/02(c) -- -- -- $ 5.89 (2.32%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.20 40.26%
-------- -------- ----------- -------- --------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.82 (2.35%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.08 39.88%
-------- -------- ----------- -------- --------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.95 0.39%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.69%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70%
-------- -------- ----------- -------- --------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.85%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70%
-------- -------- ----------- -------- --------
MICRO CAP VALUE FUND ADVISOR SHARES
2/1/98(d) to 12/31/98 -- (0.04) (0.04) $ 4.80 (3.27%)*
Year ended 12/31/99 -- (0.24) (0.24) $ 5.58 21.19%
Year ended 12/31/00 (0.03) (0.59) (0.62) $ 4.88 (1.38%)
Year ended 12/31/01 -- --^ --^ $ 5.96 22.22%
1/1/02 to 7/31/02(c) -- -- -- $ 5.81 (2.52%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.05 39.60%
-------- -------- ----------- -------- --------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- ------- ------- ------- -------
BALANCED FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $139,616 1.00%** 1.54%** 1.04%** 128%
Year ended 7/31/00 $171,923 1.00% 1.55% 1.06% 122%
Year ended 7/31/01 $211,221 1.01% 1.48% 1.07% 77%
Year ended 7/31/02(e) $189,730 1.10% 1.11% 1.13% 78%
Year ended 7/31/03 $177,052 1.10% 1.39% 1.12% 133%
-------- ------- ------- ------- -------
BALANCED FUND CLASS A SHARES
Year ended 7/31/99 $ 79,686 1.28% 1.22% 1.34% 128%
Year ended 7/31/00 $104,750 1.25% 1.30% 1.31% 122%
Year ended 7/31/01 $106,275 1.26% 1.23% 1.32% 77%
Year ended 7/31/02(e) $ 81,079 1.34% 0.86% 1.38% 78%
Year ended 7/31/03 $ 73,287 1.35% 1.14% 1.37% 133%
-------- ------- ------- ------- -------
BALANCED FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 10,239 2.03%** 0.42%** 2.09%** 77%
Year ended 7/31/02(e) $ 14,007 2.10% 0.10% 2.14% 78%
Year ended 7/31/03 $ 13,972 2.10% 0.39% 2.12% 133%
-------- ------- ------- ------- -------
BALANCED FUND CLASS C SHARES
Year ended 7/31/99 $ 6,692 1.76% 0.78% 2.05% 128%
Year ended 7/31/00 $ 7,815 1.75% 0.80% 2.06% 122%
Year ended 7/31/01 $ 6,883 1.96% 0.53% 2.15% 77%
Year ended 7/31/02(e) $ 4,963 2.09% 0.11% 2.13% 78%
Year ended 7/31/03 $ 5,747 2.10% 0.38% 2.12% 133%
-------- ------- ------- ------- -------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) $ 38 1.63%** 0.55%** 1.68%** 78%
Year ended 7/31/03 $ 104 1.60% 0.82% 1.61% 133%
-------- ------- ------- ------- -------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 1,156 2.19%** (0.83%)** 2.19%** 109%
Year ended 12/31/99 $ 3,283 1.60% (0.32%) 1.60% 96%
Year ended 12/31/00 $ 6,743 1.40% 1.03% 1.40% 116%
Year ended 12/31/01 $ 14,957 1.29% 0.21% 1.35% 47%
1/1/02 to 7/31/02(c) $ 45,538 1.40%** (0.51%)** 1.68%** 16%
Year ended 7/31/03 $100,676 1.40% (0.68%) 1.47% 28%
-------- ------- ------- ------- -------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 862 1.59%** (0.36%)** 1.78%** 47%
1/1/02 to 7/31/02(c) $ 5,030 1.66%** (0.77%)** 1.95%** 16%
Year ended 7/31/03 $ 18,297 1.65% (0.95%) 1.69% 28%
-------- ------- ------- ------- -------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 352 2.31%** (1.08%)** 2.52%** 47%
1/1/02 to 7/31/02(c) $ 2,709 2.42%** (1.50%)** 2.72%** 16%
Year ended 7/31/03 $ 4,254 2.40% (1.66%) 2.47% 28%
-------- ------- ------- ------- -------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 59 2.32%** (0.97%)** 2.57%** 47%
1/1/02 to 7/31/02(c) $ 712 2.42%** (1.52%)** 2.73%** 16%
Year ended 7/31/03 $ 1,166 2.40% (1.66%) 2.47% 28%
-------- ------- ------- ------- -------
MICRO CAP VALUE FUND ADVISOR SHARES
2/1/98(d) to 12/31/98 $ 3,159 2.69%** (1.33%)** 2.69%** 109%
Year ended 12/31/99 $ 9,128 2.10% (0.82%) 2.10% 96%
Year ended 12/31/00 $ 15,424 1.90% 0.53% 1.90% 116%
Year ended 12/31/01 $ 19,196 1.79% (0.29%) 1.85% 47%
1/1/02 to 7/31/02(c) $ 18,905 1.90%** (1.02%)** 2.12%** 16%
Year ended 7/31/03 $ 25,342 1.90% (1.15%) 1.97% 28%
-------- ------- ------- ------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
174-175 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
----------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
---------- ------------ ----------- ----------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 $ 15.00 --^ 2.54 2.54
---------- ------------ ----------- ----------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.53 2.52
---------- ------------ ----------- ----------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48
---------- ------------ ----------- ----------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48
---------- ------------ ----------- ----------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.52 2.51
---------- ------------ ----------- ----------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 15.92 -- -- --
Year ended 12/31/99 $ 15.92 0.25 1.86 2.11
Year ended 12/31/00 $ 17.52 0.28 3.88 4.16
Year ended 12/31/01 $ 18.64 0.05 1.43 1.48
1/1/02 to 7/31/02(c) $ 19.14 -- (3.28) (3.28)
Year ended 7/31/03 $ 15.86 0.02 3.14 3.16
---------- ------------ ----------- ----------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 19.44 0.01 0.57 0.58
1/1/02 to 7/31/02(c) $ 19.05 (0.02) (3.26) (3.28)
Year ended 7/31/03 $ 15.77 --^ 3.08 3.08
---------- ------------ ----------- ----------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 19.44 (0.02) 0.56 0.54
1/1/02 to 7/31/02(c) $ 19.03 (0.08) (3.26) (3.34)
Year ended 7/31/03 $ 15.69 (0.13) 3.07 2.94
---------- ------------ ----------- ----------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 19.44 (0.01) 0.55 0.54
1/1/02 to 7/31/02(c) $ 19.02 (0.08) (3.25) (3.33)
Year ended 7/31/03 $ 15.69 (0.12) 3.04 2.92
---------- ------------ ----------- ----------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/98 $ 18.23 0.20 (1.80) (1.60)
Year ended 12/31/99 $ 15.92 0.19 1.86 2.05
Year ended 12/31/00 $ 17.49 0.18 3.89 4.07
Year ended 12/31/01 $ 18.61 0.02 1.37 1.39
1/1/02 to 7/31/02(c) $ 19.09 (0.04) (3.27) (3.31)
Year ended 7/31/03 $ 15.78 (0.05) 3.09 3.04
---------- ------------ ----------- ----------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 14.79 0.25 1.86 2.11
Year ended 7/31/00 $ 15.19 0.21 (1.11) (0.90)
Year ended 7/31/01 $ 13.22 0.15 0.17 0.32
Year ended 7/31/02 $ 13.12 0.09 (1.73) (1.64)
Year ended 7/31/03 $ 10.85 0.18(3) 1.14 1.32
---------- ------------ ----------- ----------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/99 $ 15.38 0.29 1.19 1.48
Year ended 7/31/00 $ 15.18 0.17 (1.10) (0.93)
Year ended 7/31/01 $ 13.22 0.11 0.16 0.27
Year ended 7/31/02 $ 13.11 0.07 (1.74) (1.67)
Year ended 7/31/03 $ 10.83 0.16(3) 1.14 1.30
---------- ------------ ----------- ----------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 13.40 0.03 0.12 0.15
Year ended 7/31/02 $ 13.24 (0.02) (1.74) (1.76)
Year ended 7/31/03 $ 10.93 0.08(3) 1.15 1.23
---------- ------------ ----------- ----------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/99 $ 15.39 0.14 1.26 1.40
Year ended 7/31/00 $ 15.19 0.10 (1.10) (1.00)
Year ended 7/31/01 $ 13.23 0.05 0.14 0.19
Year ended 7/31/02 $ 13.10 (0.03) (1.73) (1.76)
Year ended 7/31/03 $ 10.80 0.08(3) 1.11 1.19
---------- ------------ ----------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
--------------------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET RETURN DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED OF AND END OF SALES
INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE)
--------- -------- ------- --------- ------- -------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 -- -- -- -- $ 17.54 16.87%*
--------- -------- ------- --------- ------- -------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 -- -- -- -- $ 17.52 16.73%*
--------- -------- ------- --------- ------- -------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 -- -- -- -- $ 17.48 16.47%*
--------- -------- ------- --------- ------- -------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 -- -- -- -- $ 17.48 16.47%*
--------- -------- ------- --------- ------- -------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 -- -- -- -- $ 17.51 16.67%*
--------- -------- ------- --------- ------- -------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 -- -- -- -- $ 15.92 0.00%*
Year ended 12/31/99 (0.26) (0.25) -- (0.51) $ 17.52 13.26%
Year ended 12/31/00 (0.24) (2.72) (0.08) (3.04) $ 18.64 23.78%
Year ended 12/31/01 (0.07) (0.91) -- (0.98) $ 19.14 7.91%
1/1/02 to 7/31/02(c) -- -- -- -- $ 15.86 (17.14%)*
Year ended 7/31/03 -- -- -- -- $ 19.02 19.92%
--------- -------- ------- --------- ------- -------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 (0.06) (0.91) -- (0.97) $ 19.05 2.90%*
1/1/02 to 7/31/02(c) -- -- -- -- $ 15.77 (17.22%)*
Year ended 7/31/03 -- -- -- -- $ 18.85 19.53%
--------- -------- ------- --------- ------- -------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 (0.04) (0.91) -- (0.95) $ 19.03 2.76%*
1/1/02 to 7/31/02(c) -- -- -- -- $ 15.69 (17.55%)*
Year ended 7/31/03 -- -- -- -- $ 18.63 18.74%
--------- -------- ------- --------- ------- -------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 (0.04) (0.92) -- (0.96) $ 19.02 2.72%*
1/1/02 to 7/31/02(c) -- -- -- -- $ 15.69 (17.51%)*
Year ended 7/31/03 -- -- -- -- $ 18.61 18.61%
--------- -------- ------- --------- ------- -------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/98 (0.20) (0.51) -- (0.71) $ 15.92 (8.74%)
Year ended 12/31/99 (0.23) (0.25) -- (0.48) $ 17.49 12.93%
Year ended 12/31/00 (0.17) (2.72) (0.06) (2.95) $ 18.61 23.29%
Year ended 12/31/01 -- (0.91) -- (0.91) $ 19.09 7.47%
1/1/02 to 7/31/02(c) -- -- -- -- $ 15.78 (17.34%)*
Year ended 7/31/03 -- -- -- -- $ 18.82 19.26%
--------- -------- ------- --------- ------- -------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 (0.26) (1.45) -- (1.71) $ 15.19 14.63%*
Year ended 7/31/00 (0.21) (0.86) -- (1.07) $ 13.22 (5.96%)
Year ended 7/31/01 (0.14) (0.28) -- (0.42) $ 13.12 2.18%
Year ended 7/31/02 (0.10) (0.53) -- (0.63) $ 10.85 (12.96%)
Year ended 7/31/03 (0.16) (0.16) -- (0.32) $ 11.85 12.53%
--------- -------- ------- --------- ------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/99 (0.23) (1.45) -- (1.68) $ 15.18 9.90%
Year ended 7/31/00 (0.17) (0.86) -- (1.03) $ 13.22 (6.16%)
Year ended 7/31/01 (0.10) (0.28) -- (0.38) $ 13.11 1.85%
Year ended 7/31/02 (0.08) (0.53) -- (0.61) $ 10.83 (13.24%)
Year ended 7/31/03 (0.14) (0.16) -- (0.30) $ 11.83 12.30%
--------- -------- ------- --------- ------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.03) (0.28) -- (0.31) $ 13.24 0.97%*
Year ended 7/31/02 (0.02) (0.53) -- (0.55) $ 10.93 (13.84%)
Year ended 7/31/03 (0.07) (0.16) -- (0.23) $ 11.93 11.50%
--------- -------- ------- --------- ------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/99 (0.15) (1.45) -- (1.60) $ 15.19 9.34%
Year ended 7/31/00 (0.10) (0.86) -- (0.96) $ 13.23 (6.65%)
Year ended 7/31/01 (0.04) (0.28) -- (0.32) $ 13.10 1.20%
Year ended 7/31/02 (0.01) (0.53) -- (0.54) $ 10.80 (13.85%)
Year ended 7/31/03 (0.07) (0.16) -- (0.23) $ 11.76 11.28%
--------- -------- ------- --------- ------- -------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
---------- ------- -------- -------- -------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 $ 72,783 1.24%** 0.03%** 1.60%** 39%
---------- ------- -------- -------- -------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $ 216 1.47%** (0.21%)** 1.86%** 39%
---------- ------- -------- -------- -------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $ 103 2.22%** (1.07%)** 2.60%** 39%
---------- ------- -------- -------- -------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $ 15 2.23%** (0.97%)** 2.62%** 39%
---------- ------- -------- -------- -------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $ 216 1.72%** (0.51%)** 2.11%** 39%
---------- ------- -------- -------- -------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ -- 1.30%** 1.65%** 1.30%** 118%
Year ended 12/31/99 $ 546 1.33% 1.62% 1.33% 78%
Year ended 12/31/00 $ 949 1.33% 1.41% 1.33% 121%
Year ended 12/31/01 $ 18,069 1.23% 0.59% 1.26% 80%
1/1/02 to 7/31/02(c) $ 49,844 1.33%** 0.01%** 1.55%** 25%
Year ended 7/31/03 $182,485 1.33% 0.17% 1.36% 23%
---------- ------- -------- -------- -------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 6,395 1.54%** 0.14%** 1.63%** 80%
1/1/02 to 7/31/02(c) $ 18,042 1.59%** (0.27%)** 1.79%** 25%
Year ended 7/31/03 $ 19,667 1.58% 0.01% 1.64% 23%
---------- ------- -------- -------- -------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 4,733 2.28%** (0.59%)** 2.36%** 80%
1/1/02 to 7/31/02(c) $ 11,522 2.34%** (1.02%)** 2.53%** 25%
Year ended 7/31/03 $ 14,087 2.33% (0.81%) 2.39% 23%
---------- ------- -------- -------- -------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 497 2.23%** (0.60%)** 2.33%** 80%
1/1/02 to 7/31/02(c) $ 1,593 2.34%** (1.08%)** 2.53%** 25%
Year ended 7/31/03 $ 2,036 2.33% (0.81%) 2.39% 23%
---------- ------- -------- -------- -------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/98 $ 53,279 1.80% 1.15% 1.80% 118%
Year ended 12/31/99 $ 39,885 1.83% 1.12% 1.83% 78%
Year ended 12/31/00 $ 49,260 1.83% 0.91% 1.83% 121%
Year ended 12/31/01 $ 47,698 1.73% 0.09% 1.76% 80%
1/1/02 to 7/31/02(c) $ 38,419 1.83%** (0.36%)** 1.98%** 25%
Year ended 7/31/03 $ 37,047 1.83% (0.30%) 1.89% 23%
---------- ------- -------- -------- -------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $148,525 1.07%** 1.63%** 1.12%** 69%
Year ended 7/31/00 $100,007 1.02% 1.54% 1.08% 37%
Year ended 7/31/01 $ 92,635 1.06% 1.03% 1.12% 19%
Year ended 7/31/02 $ 80,906 1.16% 0.83% 1.19% 22%
Year ended 7/31/03 $335,967 1.08% 1.74% 1.10% 79%
---------- ------- -------- -------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/99 $ 20,268 1.27% 1.58% 1.37% 69%
Year ended 7/31/00 $ 12,777 1.27% 1.29% 1.33% 37%
Year ended 7/31/01 $ 16,069 1.31% 0.79% 1.37% 19%
Year ended 7/31/02 $ 12,579 1.40% 0.58% 1.43% 22%
Year ended 7/31/03 $ 14,100 1.33% 1.51% 1.36% 79%
---------- ------- -------- -------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 1,963 2.08%** 0.07%** 2.13%** 19%
Year ended 7/31/02 $ 2,862 2.17% (0.17%) 2.20% 22%
Year ended 7/31/03 $ 3,408 2.08% 0.76% 2.11% 79%
---------- ------- -------- -------- -------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/99 $ 1,433 1.83% 0.88% 2.13% 69%
Year ended 7/31/00 $ 679 1.77% 0.80% 2.08% 37%
Year ended 7/31/01 $ 668 2.02% 0.09% 2.19% 19%
Year ended 7/31/02 $ 577 2.16% (0.18%) 2.19% 22%
Year ended 7/31/03 $ 884 2.08% 0.75% 2.10% 79%
---------- ------- -------- -------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
176-177 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
--------- ----------- --------- ----------
LIFEMODEL AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.04# 1.35# 1.39
--------- ----------- --------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.33# 1.35
--------- ----------- --------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 (0.02)# 1.28# 1.26
--------- ----------- --------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 (0.01)# 1.28# 1.27
--------- ----------- --------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 1.58# 1.67
--------- ----------- --------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.07# 1.58# 1.65
--------- ----------- --------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
--------- ----------- --------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
--------- ----------- --------- ----------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.14# 0.92# 1.06
--------- ----------- --------- ----------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.12# 0.92# 1.04
--------- ----------- --------- ----------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.89# 0.95
--------- ----------- --------- ----------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.90# 0.96
--------- ----------- --------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.18# 0.60# 0.78
--------- ----------- --------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.59# 0.74
--------- ----------- --------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.10# 0.58# 0.68
--------- ----------- --------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 0.59# 0.68
--------- ----------- --------- ----------
LIFEMODEL CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.23# 0.52# 0.75
--------- ----------- --------- ----------
LIFEMODEL CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.21# 0.51# 0.72
--------- ----------- --------- ----------
LIFEMODEL CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.16# 0.49# 0.65
--------- ----------- --------- ----------
LIFEMODEL CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.50# 0.65
--------- ----------- --------- ----------
LESS DIVIDENDS
FROM
--------
NET TOTAL
ASSET RETURN
NET VALUE, (EXCLUDES
INVESTMENT TOTAL END OF SALES
INCOME DIVIDENDS PERIOD CHARGE)
-------- --------- -------- -------
LIFEMODEL AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.04) (0.04) $ 11.35 13.92%*
-------- --------- -------- -------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.02) (0.02) $ 11.33 13.57%*
-------- --------- -------- -------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 --^ -- $ 11.26 12.65%*
-------- --------- -------- -------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.01) (0.01) $ 11.26 12.74%*
-------- --------- -------- -------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.08) (0.08) $ 11.59 16.78%*
-------- --------- -------- -------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.07) (0.07) $ 11.58 16.51%*
-------- --------- -------- -------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.02) (0.02) $ 11.55 15.70%*
-------- --------- -------- -------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.02) (0.02) $ 11.55 15.71%*
-------- --------- -------- -------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.13) (0.13) $ 10.93 10.66%*
-------- --------- -------- -------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.11) (0.11) $ 10.93 10.48%*
-------- --------- -------- -------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.06) (0.06) $ 10.89 9.58%*
-------- --------- -------- -------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.06) (0.06) $ 10.90 9.67%*
-------- --------- -------- -------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.16) (0.16) $ 10.62 7.87%*
-------- --------- -------- -------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.14) (0.14) $ 10.60 7.51%*
-------- --------- -------- -------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.10) (0.10) $ 10.58 6.81%*
-------- --------- -------- -------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.09) (0.09) $ 10.59 6.81%*
-------- --------- -------- -------
LIFEMODEL CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.21) (0.21) $ 10.54 7.58%*
-------- --------- -------- -------
LIFEMODEL CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) (0.19) $ 10.53 7.31%*
-------- --------- -------- -------
LIFEMODEL CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) (0.15) $ 10.50 6.54%*
-------- --------- -------- -------
LIFEMODEL CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) (0.14) $ 10.51 6.58%*
-------- --------- -------- -------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- ------- --------- -------- --------
LIFEMODEL AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $32,421 0.08%** 0.45%** 0.78%** 79%
--------- ------- --------- -------- --------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $10,090 0.33%** 0.16%** 1.24%** 79%
--------- ------- --------- -------- --------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 3,587 1.08%** (0.54%)** 2.06%** 79%
--------- ------- --------- -------- --------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 532 1.08%** (0.62%)** 2.20%** 79%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $62,677 0.08%** 1.15%** 0.54%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $33,806 0.33%** 0.86%** 0.90%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $12,606 1.08%** 0.10%** 1.60%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,386 1.08%** 0.06%** 1.61%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $71,538 0.08%** 1.82%** 0.52%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $28,991 0.33%** 1.52%** 0.84%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $14,631 1.08%** 0.74%** 1.63%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,335 1.08%** 0.70%** 1.66%** 55%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $40,412 0.08%** 2.23%** 0.60%** 72%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $19,449 0.33%** 1.82%** 1.04%** 72%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 9,083 1.08%** 1.09%** 1.80%** 72%
--------- ------- --------- -------- --------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,017 1.08%** 1.07%** 1.73%** 72%
--------- ------- --------- -------- --------
LIFEMODEL CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $16,014 0.08%** 2.90%** 0.75%** 63%
--------- ------- --------- -------- --------
LIFEMODEL CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 9,387 0.33%** 2.52%** 1.17%** 63%
--------- ------- --------- -------- --------
LIFEMODEL CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 8,795 1.08%** 1.75%** 1.86%** 63%
--------- ------- --------- -------- --------
LIFEMODEL CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 2,203 1.08%** 1.63%** 1.86%** 63%
--------- ------- --------- -------- --------
SEE NOTES TO FINANCIAL HIGHLIGHTS
178-179 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-----------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET NET GAINS/(LOSSES) NET ASSETS
VALUE, INVESTMENT FROM RESULTING
BEGINNING INCOME/ INVESTMENT FROM
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS
-------- -------- ---------- --------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 11.31 0.33 (0.50) (0.17)
Year ended 12/31/99 $ 10.62 0.87 (1.43) (0.56)
Year ended 12/31/00 $ 9.23 0.78 0.70 1.48
Year ended 12/31/01 $ 9.96 0.69 0.59 1.28
1/1/02 to 7/31/02(c) $ 10.57 0.32 0.08 0.40
Year ended 7/31/03 $ 10.63 0.58 0.25 0.83
-------- -------- ---------- --------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 $ 10.53 0.16 (0.10) 0.06
1/1/02 to 7/31/02(c) $ 10.50 0.27 0.07 0.34
Year ended 7/31/03 $ 10.55 0.47 0.24 0.71
-------- -------- ---------- --------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/98 $ 11.31 0.72 (0.33) 0.39
Year ended 12/31/99 $ 10.61 0.86 (1.43) (0.57)
Year ended 12/31/00 $ 9.22 0.73 0.70 1.43
Year ended 12/31/01 $ 9.95 0.63 0.60 1.23
1/1/02 to 7/31/02(c) $ 10.53 0.28 0.10 0.38
Year ended 7/31/03 $ 10.60 0.51 0.26 0.77
-------- -------- ---------- --------
TECHNOLOGY FUND INSTITUTIONAL SHARES
6/5/00(d) to 7/31/00 $ 20.00 (0.03) (0.76) (0.79)
Year ended 7/31/01 $ 19.21 -- (8.68) (8.68)
Year ended 7/31/02 $ 10.37 (0.12) (4.70) (4.82)
Year ended 7/31/03 $ 5.55 (0.09)(3) 3.26 3.17
-------- -------- ---------- --------
TECHNOLOGY FUND CLASS A SHARES
6/5/00(d) to 7/31/00 $ 20.00 (0.03) (0.76) (0.79)
Year ended 7/31/01 $ 19.21 -- (8.70) (8.70)
Year ended 7/31/02 $ 10.35 (0.13) (4.70) (4.83)
Year ended 7/31/03 $ 5.52 (0.11)(3) 3.25 3.14
-------- -------- ---------- --------
TECHNOLOGY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 17.28 -- (6.84) (6.84)
Year ended 7/31/02 $ 10.28 (0.17) (4.67) (4.84)
Year ended 7/31/03 $ 5.44 (0.15)(3) 3.18 3.03
-------- -------- ---------- --------
TECHNOLOGY FUND CLASS C SHARES
6/5/00(d) to 7/31/00 $ 20.00 (0.03) (0.77) (0.80)
Year ended 7/31/01 $ 19.20 -- (8.80) (8.80)
Year ended 7/31/02 $ 10.24 (0.24) (4.57) (4.81)
Year ended 7/31/03 $ 5.43 (0.16)(3) 3.17 3.01
-------- -------- ---------- --------
TECHNOLOGY FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 8.91 (0.08) (3.32) (3.40)
Year ended 7/31/03 $ 5.51 (0.13)(3) 3.23 3.10
-------- -------- ---------- --------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
-------------------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET RETURN DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED OF AND END OF SALES
INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE)
--------- --------- ------- ----------- -------- -------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 (0.33) (0.19) -- (0.52) $ 10.62 3.54%*
Year ended 12/31/99 (0.83) -- -- (0.83) $ 9.23 (5.61%)
Year ended 12/31/00 (0.75) -- -- (0.75) $ 9.96 16.52%
Year ended 12/31/01 (0.67) -- --^ (0.67) $ 10.57 13.12%
1/1/02 to 7/31/02(c) (0.34) -- -- (0.34) $ 10.63 3.82%*
Year ended 7/31/03 (0.55) -- -- (0.55) $ 10.91 7.89%
--------- --------- ------- ----------- -------- -------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 (0.09) -- -- (0.09) $ 10.50 0.62%*
1/1/02 to 7/31/02(c) (0.29) -- -- (0.29) $ 10.55 3.22%*
Year ended 7/31/03 (0.44) -- -- (0.44) $ 10.82 6.82%
--------- --------- ------- ----------- -------- -------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/98 (0.72) (0.37) -- (1.09) $ 10.61 3.49%
Year ended 12/31/99 (0.82) -- -- (0.82) $ 9.22 (5.72%)
Year ended 12/31/00 (0.70) -- -- (0.70) $ 9.95 16.01%
Year ended 12/31/01 (0.65) -- --^ (0.65) $ 10.53 12.64%
1/1/02 to 7/31/02(c) (0.31) -- -- (0.31) $ 10.60 3.64%*
Year ended 7/31/03 (0.49) -- -- (0.49) $ 10.88 7.36%
--------- --------- ------- ----------- -------- -------
TECHNOLOGY FUND INSTITUTIONAL SHARES
6/5/00(d) to 7/31/00 -- -- -- -- $ 19.21 (5.69%)*
Year ended 7/31/01 -- (0.16) -- (0.16) $ 10.37 (46.65%)
Year ended 7/31/02 -- -- -- -- $ 5.55 (46.48%)
Year ended 7/31/03 -- -- -- -- $ 8.72 57.12%
--------- --------- ------- ----------- -------- -------
TECHNOLOGY FUND CLASS A SHARES
6/5/00(d) to 7/31/00 -- -- -- -- $ 19.21 (5.69%)*
Year ended 7/31/01 -- (0.16) -- (0.16) $ 10.35 (45.62%)
Year ended 7/31/02 -- -- -- -- $ 5.52 (46.67%)
Year ended 7/31/03 -- -- -- -- $ 8.66 56.88%
--------- --------- ------- ----------- -------- -------
TECHNOLOGY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 -- (0.16) -- (0.16) $ 10.28 (39.95%)*
Year ended 7/31/02 -- -- -- -- $ 5.44 (47.08%)
Year ended 7/31/03 -- -- -- -- $ 8.47 55.70%
--------- --------- ------- ----------- -------- -------
TECHNOLOGY FUND CLASS C SHARES
6/5/00(d) to 7/31/00 -- -- -- -- $ 19.20 (5.65%)*
Year ended 7/31/01 -- (0.16) -- (0.16) $ 10.24 (46.12%)
Year ended 7/31/02 -- -- -- -- $ 5.43 (46.97%)
Year ended 7/31/03 -- -- -- -- $ 8.44 55.43%
--------- --------- ------- ----------- -------- -------
TECHNOLOGY FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 -- -- -- -- $ 5.51 (34.48%)*
Year ended 7/31/03 -- -- -- -- $ 8.61 56.26%
--------- --------- ------- ----------- -------- -------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- ------- -------- ------- --------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 426 1.37%** 7.02%** 1.37%** 59%
Year ended 12/31/99 $ 2,540 1.41% 8.37% 1.41% 51%
Year ended 12/31/00 $ 3,349 1.35% 8.03% 1.35% 48%
Year ended 12/31/01 $ 3,142 1.26% 6.62% 1.28% 34%
1/1/02 to 7/31/02(c) $11,491 1.35%** 5.14%** 1.63%** 27%
Year ended 7/31/03 $67,649 1.35% 5.25% 1.35% 38%
-------- ------- -------- ------- --------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 $ 1,755 2.39%** 8.97%** 2.55%** 34%
1/1/02 to 7/31/02(c) $ 8,148 2.37%** 3.97%** 2.66%** 27%
Year ended 7/31/03 $37,810 2.32% 4.35% 2.35% 38%
-------- ------- -------- ------- --------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/98 $39,650 1.87% 6.52% 1.87% 59%
Year ended 12/31/99 $24,023 1.91% 7.87% 1.91% 51%
Year ended 12/31/00 $32,351 1.85% 7.53% 1.85% 48%
Year ended 12/31/01 $34,105 1.76% 6.12% 1.78% 34%
1/1/02 to 7/31/02(c) $31,240 1.85%** 4.49%** 2.07%** 27%
Year ended 7/31/03 $36,345 1.85% 4.68% 1.88% 38%
-------- ------- -------- ------- --------
TECHNOLOGY FUND INSTITUTIONAL SHARES
6/5/00(d) to 7/31/00 $55,188 1.46%** (0.79%)** 1.46%** 11%
Year ended 7/31/01 $45,842 1.50% (1.24%) 1.50% 50%
Year ended 7/31/02 $21,183 1.51% (1.35%) 1.51% 97%
Year ended 7/31/03 $29,573 1.55% (1.46%) 1.87% 258%
-------- ------- -------- ------- --------
TECHNOLOGY FUND CLASS A SHARES
6/5/00(d) to 7/31/00 $ 4,560 1.70%** (1.27%)** 1.70%** 11%
Year ended 7/31/01 $ 5,615 1.76% (1.49%) 1.76% 50%
Year ended 7/31/02 $ 3,256 1.75% (1.59%) 1.75% 97%
Year ended 7/31/03 $ 5,218 1.81% (1.71%) 2.13% 258%
-------- ------- -------- ------- --------
TECHNOLOGY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 900 2.54%** (2.28%)** 2.54%** 50%
Year ended 7/31/02 $ 679 2.51% (2.35%) 2.51% 97%
Year ended 7/31/03 $ 1,164 2.55% (2.45%) 2.87% 258%
-------- ------- -------- ------- --------
TECHNOLOGY FUND CLASS C SHARES
6/5/00(d) to 7/31/00 $ 105 2.42%** (1.89%)** 2.42%** 11%
Year ended 7/31/01 $ 150 2.60% (2.33%) 2.60% 50%
Year ended 7/31/02 $ 96 2.45% (2.29%) 2.45% 97%
Year ended 7/31/03 $ 1,081 2.47% (2.37%) 2.82% 258%
-------- ------- -------- ------- --------
TECHNOLOGY FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 6 1.95%** (1.82%)** 1.95%** 97%
Year ended 7/31/03 $ 55 1.90% (1.83%) 2.30% 258%
-------- ------- -------- ------- --------
SEE NOTES TO FINANCIAL HIGHLIGHTS
180-181 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
--------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
-------- --------- ----------- ---------
WORLDWIDE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 10.38 (0.11) 3.76 3.65
Year ended 12/31/99 $ 13.30 0.03 6.78 6.81
Year ended 12/31/00 $ 19.30 (0.12) (2.00) (2.12)
Year ended 12/31/01 $ 14.23 (0.01) (1.64) (1.65)
1/1/02 to 7/31/02(c) $ 12.47 (0.07) (1.90) (1.97)
Year ended 7/31/03(n) $ 10.50 (0.05) 0.93 0.88
-------- --------- ----------- ---------
WORLDWIDE FUND CLASS C SHARES
10/29/01(d) to 12/31/01 $ 11.62 0.01 0.63 0.64
1/1/02 to 7/31/02(c) $ 12.26 (0.10) (1.89) (1.99)
Year ended 7/31/03(n) $ 10.27 (0.15) 0.90 0.75
-------- --------- ----------- ---------
WORLDWIDE FUND ADVISOR SHARES
Year ended 12/31/98 $ 10.38 (0.12) 3.76 3.64
Year ended 12/31/99 $ 13.29 (0.07) 6.78 6.71
Year ended 12/31/00 $ 19.19 (0.21) (1.94) (2.15)
Year ended 12/31/01 $ 14.09 (0.11) (1.56) (1.67)
1/1/02 to 7/31/02(c) $ 12.30 (0.11) (1.86) (1.97)
Year ended 7/31/03(n) $ 10.33 (0.11) 0.92 0.81
-------- --------- ----------- ---------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
10/9/98(d) to 7/31/99 $ 10.50 0.09 2.52 2.61
Year ended 7/31/00 $ 12.80 0.07 1.01 1.08
Year ended 7/31/01 $ 12.70 0.13 (2.17) (2.04)
Year ended 7/31/02 $ 9.04 0.02 (1.30) (1.28)
Year ended 7/31/03 $ 7.65 0.06 0.12 0.18
-------- --------- ----------- ---------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/99 $ 12.56 0.03 0.49 0.52
Year ended 7/31/00 $ 12.84 0.04 1.01 1.05
Year ended 7/31/01 $ 12.71 0.12 (2.19) (2.07)
Year ended 7/31/02 $ 9.02 0.04 (1.24) (1.28)
Year ended 7/31/03 $ 7.64 0.07 0.12 0.19
-------- --------- ----------- ---------
INTERNATIONAL EQUITY CLASS B SHARES
10/11/00(d) to 7/31/01 $ 12.09 0.03 (1.44) (1.41)
Year ended 7/31/02 $ 9.06 (0.05) (1.31) (1.36)
Year ended 7/31/03 $ 7.60 --^ 0.11 0.11
-------- --------- ----------- ---------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/99 $ 12.51 -- 0.46 0.46
Year ended 7/31/00 $ 12.76 (0.03) 0.99 0.96
Year ended 7/31/01 $ 12.54 0.13 (2.23) (2.10)
Year ended 7/31/02 $ 8.82 (0.08) (1.24) (1.32)
Year ended 7/31/03 $ 7.40 0.02 0.08 0.10
-------- --------- ----------- ---------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
------------------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET RETURN DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED OF AND END OF SALES
INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE)
-------- ------- ------- ---------- -------- ---------
WORLDWIDE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 -- (0.73) -- (0.73) $ 13.30 35.24%*
Year ended 12/31/99 -- (0.81) -- (0.81) $ 19.30 51.29%
Year ended 12/31/00 -- (2.95) -- (2.95) $ 14.23 (12.16%)
Year ended 12/31/01 -- (0.11) --^ (0.11) $ 12.47 (11.53%)
1/1/02 to 7/31/02(c) -- -- -- -- $ 10.50 (15.80%)*
Year ended 7/31/03(n) -- -- -- -- $ 11.38 8.38%
-------- ------- ------- ---------- -------- ---------
WORLDWIDE FUND CLASS C SHARES
10/29/01(d) to 12/31/01 -- -- -- -- $ 12.26 8.50%*
1/1/02 to 7/31/02(c) -- -- -- -- $ 10.27 (16.23%)*
Year ended 7/31/03(n) -- -- -- -- $ 11.02 7.20%
-------- ------- ------- ---------- -------- ---------
WORLDWIDE FUND ADVISOR SHARES
Year ended 12/31/98 -- (0.73) -- (0.73) $ 13.29 35.14%
Year ended 12/31/99 -- (0.81) -- (0.81) $ 19.19 50.58%
Year ended 12/31/00 -- (2.95) -- (2.95) $ 14.09 (12.38%)
Year ended 12/31/01 -- (0.12) --^ (0.12) $ 12.30 (11.86%)
1/1/02 to 7/31/02(c) -- -- -- -- $ 10.33 (16.02%)*
Year ended 7/31/03(n) -- -- -- -- $ 11.14 7.84%
-------- ------- ------- ---------- -------- ---------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
10/9/98(d) to 7/31/99 (0.24) (0.07) -- (0.31) $ 12.80 25.02%*
Year ended 7/31/00 -- (1.18) -- (1.18) $ 12.70 8.29%
Year ended 7/31/01 -- (1.62) -- (1.62) $ 9.04 (17.61%)
Year ended 7/31/02 (0.11) -- -- (0.11) $ 7.65 (14.30%)
Year ended 7/31/03 (0.04) -- -- (0.04) $ 7.79 2.47%
-------- ------- ------- ---------- -------- ---------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/99 (0.17) (0.07) -- (0.24) $ 12.84 4.23%
Year ended 7/31/00 -- (1.18) -- (1.18) $ 12.71 8.02%
Year ended 7/31/01 -- (1.62) -- (1.62) $ 9.02 (17.85%)
Year ended 7/31/02 (0.10) -- -- (0.10) $ 7.64 (14.23%)
Year ended 7/31/03 (0.02) -- -- (0.02) $ 7.81 2.52%
-------- ------- ------- ---------- -------- ---------
INTERNATIONAL EQUITY CLASS B SHARES
10/11/00(d) to 7/31/01 -- (1.62) -- (1.62) $ 9.06 (13.36%)*
Year ended 7/31/02 (0.10) -- -- (0.10) $ 7.60 (15.11%)
Year ended 7/31/03 -- -- -- -- $ 7.71 1.45%
-------- ------- ------- ---------- -------- ---------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/99 (0.14) (0.07) -- (0.21) $ 12.76 3.79%
Year ended 7/31/00 -- (1.18) -- (1.18) $ 12.54 7.25%
Year ended 7/31/01 -- (1.62) -- (1.62) $ 8.82 (18.39%)
Year ended 7/31/02 (0.10) -- -- (0.10) $ 7.40 (15.07%)
Year ended 7/31/03 -- -- -- -- $ 7.50 1.35%
-------- ------- ------- ---------- -------- ---------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- -------- ---------- -------- --------
WORLDWIDE FUND INSTITUTIONAL SHARES
2/1/98(d) to 12/31/98 $ 9 2.13%** (0.60%)** 2.13%** 2792%
Year ended 12/31/99 $ 1,230 1.42% 0.01% 1.42% 1172%
Year ended 12/31/00 $ 1,232 1.44% (0.63%) 1.44% 1204%
Year ended 12/31/01 $ 2,709 1.42% (0.26%) 1.45% 974%
1/1/02 to 7/31/02(c) $ 3,119 1.44%** (1.14%)** 1.70%** 592%
Year ended 7/31/03(n) $ 3,577 1.44% (0.47%) 1.76% 909%
--------- -------- ---------- -------- --------
WORLDWIDE FUND CLASS C SHARES
10/29/01(d) to 12/31/01 $ 100 1.93%** 0.85%** 1.93%** 974%
1/1/02 to 7/31/02(c) $ 329 2.45%** (2.14%)** 2.82%** 592%
Year ended 7/31/03(n) $ 336 2.44% (1.45%) 2.76% 909%
--------- -------- ---------- -------- --------
WORLDWIDE FUND ADVISOR SHARES
Year ended 12/31/98 $ 8,059 2.63% (1.10%) 2.63% 2792%
Year ended 12/31/99 $ 32,324 1.92% (0.49%) 1.92% 1172%
Year ended 12/31/00 $ 37,087 1.94% (1.13%) 1.94% 1204%
Year ended 12/31/01 $ 21,676 1.92% (0.76%) 1.95% 974%
1/1/02 to 7/31/02(c) $ 18,259 1.94%** (1.64%)** 2.16%** 592%
Year ended 7/31/03(n) $ 15,543 1.94% (0.98%) 2.26% 909%
--------- -------- ---------- -------- --------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
10/9/98(d) to 7/31/99 $172,388 1.50%** 0.67%** 1.50%** 42%
Year ended 7/31/00 $208,383 1.45% 0.55% 1.45% 86%
Year ended 7/31/01 $154,950 1.48% 0.98% 1.48% 42%
Year ended 7/31/02 $148,593 1.38% 0.17% 1.38% 23%
Year ended 7/31/03 $159,160 1.42% 0.96% 1.45% 44%
--------- -------- ---------- -------- --------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/99 $ 5,821 1.52% 0.03% 1.70% 42%
Year ended 7/31/00 $ 7,901 1.70% 0.32% 1.70% 86%
Year ended 7/31/01 $ 5,933 1.73% 0.07% 1.73% 42%
Year ended 7/31/02 $ 4,105 1.62% 0.17% 1.62% 23%
Year ended 7/31/03 $ 5,489 1.67% 0.88% 1.69% 44%
--------- -------- ---------- -------- --------
INTERNATIONAL EQUITY CLASS B SHARES
10/11/00(d) to 7/31/01 $ 176 2.43%** 2.08%** 2.43%** 42%
Year ended 7/31/02 $ 246 2.38% (0.79%) 2.38% 23%
Year ended 7/31/03 $ 340 2.42% 0.01% 2.45% 44%
--------- -------- ---------- -------- --------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/99 $ 235 2.25% (0.08%) 2.50% 42%
Year ended 7/31/00 $ 276 2.22% (0.20%) 2.22% 86%
Year ended 7/31/01 $ 163 2.43% (0.01%) 2.57% 42%
Year ended 7/31/02 $ 127 2.38% (0.94%) 2.38% 23%
Year ended 7/31/03 $ 304 2.39% 0.64% 2.44% 44%
--------- -------- ---------- -------- --------
SEE NOTES TO FINANCIAL HIGHLIGHTS
182-183 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
--------- ---------- --------- ----------
INTERNATIONAL GDP FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 14.89 0.14 2.48 2.62
Year ended 12/31/99 $ 15.91 0.11 4.20 4.31
Year ended 12/31/00 $ 19.45 0.09 (3.42) (3.33)
1/1/01 to 7/31/01(c) $ 15.67 0.10 (2.82) (2.72)
Year ended 7/31/02 $ 12.91 0.07 (2.41) (2.34)
Year ended 7/31/03 $ 10.02 0.15 0.43 0.58
--------- ---------- --------- ----------
INTERNATIONAL GDP FUND CLASS A SHARES
Year ended 12/31/98 $ 14.79 0.10 2.46 2.56
Year ended 12/31/99 $ 15.75 0.08 4.14 4.22
Year ended 12/31/00 $ 19.20 0.05 (3.38) (3.33)
1/1/01 to 7/31/01(c) $ 15.46 0.09 (2.81) (2.72)
Year ended 7/31/02 $ 12.70 0.07 (2.39) (2.32)
Year ended 7/31/03 $ 9.83 0.16 0.37 0.53
--------- ---------- --------- ----------
INTERNATIONAL GDP FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 11.76 0.09 (1.36) (1.27)
Year ended 7/31/03 $ 9.95 0.03 0.45 0.48
--------- ---------- --------- ----------
INTERNATIONAL GDP FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 11.76 (0.01) (1.25) (1.26)
Year ended 7/31/03 $ 9.96 0.04 0.42 0.46
--------- ---------- --------- ----------
BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 10.30 0.65 0.27 0.92
Year ended 12/31/99 $ 10.33 0.60 (1.05) (0.45)
Year ended 12/31/00 $ 9.27 0.61 0.45 1.06
1/1/01 to 7/31/01(f) $ 9.72 0.28 0.31 0.59
Year ended 7/31/02 $ 9.97 0.50 (0.01) 0.49
Year ended 7/31/03 $ 9.93 0.39 0.09 0.48
--------- ---------- --------- ----------
BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 10.29 0.62 0.28 0.90
Year ended 12/31/99 $ 10.32 0.58 (1.06) (0.48)
Year ended 12/31/00 $ 9.25 0.59 0.46 1.05
1/1/01 to 7/31/01(f) $ 9.71 0.27 0.30 0.57
Year ended 7/31/02 $ 9.95 0.51 (0.03) 0.48
Year ended 7/31/03 $ 9.92 0.37 0.08 0.45
--------- ---------- --------- ----------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.29 (0.17) 0.12
Year ended 7/31/03 $ 9.93 0.28 0.08 0.36
--------- ---------- --------- ----------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.27 (0.16) 0.11
Year ended 7/31/03 $ 9.93 0.29 0.08 0.37
--------- ---------- --------- ----------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.35 (0.19) 0.16
Year ended 7/31/03 $ 9.93 0.34 0.08 0.42
--------- ---------- --------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
------------------
TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
-------- -------- ---------- -------- ---------
INTERNATIONAL GDP FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.19) (1.41) (1.60) $ 15.91 17.92%
Year ended 12/31/99 (0.12) (0.65) (0.77) $ 19.45 28.30%
Year ended 12/31/00 (0.06) (0.39) (0.45) $ 15.67 (17.41%)
1/1/01 to 7/31/01(c) (0.04) -- (0.04) $ 12.91 (17.38%)*
Year ended 7/31/02 (0.07) (0.48) (0.55) $ 10.02 (18.66%)
Year ended 7/31/03 (0.07) -- (0.07) $ 10.53 5.88%
-------- -------- ---------- -------- ---------
INTERNATIONAL GDP FUND CLASS A SHARES
Year ended 12/31/98 (0.19) (1.41) (1.60) $ 15.75 17.60%
Year ended 12/31/99 (0.12) (0.65) (0.77) $ 19.20 27.95%
Year ended 12/31/00 (0.02) (0.39) (0.41) $ 15.46 (17.61%)
1/1/01 to 7/31/01(c) (0.04) -- (0.04) $ 12.70 (17.64%)*
Year ended 7/31/02 (0.07) (0.48) (0.55) $ 9.83 (18.84%)
Year ended 7/31/03 (0.04) -- (0.04) $ 10.32 5.48%
-------- -------- ---------- -------- ---------
INTERNATIONAL GDP FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.06) (0.48) (0.54) $ 9.95 (10.69%)*
Year ended 7/31/03 -- -- -- $ 10.43 4.82%
-------- -------- ---------- -------- ---------
INTERNATIONAL GDP FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.06) (0.48) (0.54) $ 9.96 (10.64%)*
Year ended 7/31/03 (0.04) -- (0.04) $ 10.38 4.65%
-------- -------- ---------- -------- ---------
BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.65) (0.24) (0.89) $ 10.33 9.29%
Year ended 12/31/99 (0.60) (0.01) (0.61) $ 9.27 (4.41%)
Year ended 12/31/00 (0.61) -- (0.61) $ 9.72 11.91%
1/1/01 to 7/31/01(f) (0.34) -- (0.34) $ 9.97 6.19%*
Year ended 7/31/02 (0.53) -- (0.53) $ 9.93 5.06%
Year ended 7/31/03 (0.45) -- (0.45) $ 9.96 4.79%
-------- -------- ---------- -------- ---------
BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.63) (0.24) (0.87) $ 10.32 9.04%
Year ended 12/31/99 (0.58) (0.01) (0.59) $ 9.25 (4.76%)
Year ended 12/31/00 (0.59) -- (0.59) $ 9.71 11.65%
1/1/01 to 7/31/01(f) (0.33) -- (0.33) $ 9.95 6.05%*
Year ended 7/31/02 (0.51) -- (0.51) $ 9.92 4.91%
Year ended 7/31/03 (0.42) -- (0.42) $ 9.95 4.62%
-------- -------- ---------- -------- ---------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.32) -- (0.32) $ 9.93 1.22%*
Year ended 7/31/03 (0.34) -- (0.34) $ 9.95 3.74%
-------- -------- ---------- -------- ---------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.93 1.20%*
Year ended 7/31/03 (0.34) -- (0.34) $ 9.96 3.75%
-------- -------- ---------- -------- ---------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.36) -- (0.36) $ 9.93 1.69%*
Year ended 7/31/03 (0.39) -- (0.39) $ 9.96 4.25%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- ------- -------- -------- --------
INTERNATIONAL GDP FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $528,500 1.05% 0.87% 1.06% 22%
Year ended 12/31/99 $579,650 1.02% 0.72% 1.03% 8%
Year ended 12/31/00 $587,107 1.00% 0.47% 1.01% 7%
1/1/01 to 7/31/01(c) $472,951 1.02%** 1.28%** 1.02%** 22%
Year ended 7/31/02 $271,361 1.02% 0.62% 1.06% 6%
Year ended 7/31/03 $203,335 1.02% 1.27% 1.08% 6%
-------- ------- -------- -------- --------
INTERNATIONAL GDP FUND CLASS A SHARES
Year ended 12/31/98 $ 12,390 1.30% 0.59% 1.31% 22%
Year ended 12/31/99 $ 15,197 1.27% 0.47% 1.28% 8%
Year ended 12/31/00 $ 15,162 1.25% 0.22% 1.26% 7%
1/1/01 to 7/31/01(c) $ 12,839 1.27%** 1.06%** 1.27%** 22%
Year ended 7/31/02 $ 5,527 1.27% 0.48% 1.31% 6%
Year ended 7/31/03 $ 4,920 1.27% 1.30% 1.32% 6%
-------- ------- -------- -------- --------
INTERNATIONAL GDP FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 47 2.00%** 0.70%** 2.04%** 6%
Year ended 7/31/03 $ 65 2.02% 0.44% 2.08% 6%
-------- ------- -------- -------- --------
INTERNATIONAL GDP FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 1 1.98%** (0.08%)** 1.98%** 6%
Year ended 7/31/03 $ 8 2.04% 0.24% 2.08% 6%
-------- ------- -------- -------- --------
BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $231,017 0.83% 6.25% 0.84% 108%
Year ended 12/31/99 $295,017 0.83% 6.25% 0.84% 90%
Year ended 12/31/00 $295,093 0.82% 6.51% 0.82% 135%
1/1/01 to 7/31/01(f) $281,795 0.83%** 4.87%** 0.84%** 131%
Year ended 7/31/02 $403,677 0.81% 4.74% 0.90% 229%
Year ended 7/31/03 $303,450 0.80% 3.86% 0.89% 332%
-------- ------- -------- -------- --------
BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 10,629 1.08% 5.97% 1.09% 108%
Year ended 12/31/99 $ 10,614 1.08% 5.99% 1.09% 90%
Year ended 12/31/00 $ 6,663 1.07% 6.27% 1.07% 135%
1/1/01 to 7/31/01(f) $ 6,190 1.08%** 4.61%** 1.09%** 131%
Year ended 7/31/02 $ 19,949 1.06% 4.47% 1.16% 229%
Year ended 7/31/03 $ 20,572 1.05% 3.57% 1.14% 332%
-------- ------- -------- -------- --------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 6,857 1.81%** 3.70%** 1.93%** 229%
Year ended 7/31/03 $ 7,418 1.80% 2.81% 1.89% 332%
-------- ------- -------- -------- --------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 1,194 1.81%** 3.68%** 1.92%** 229%
Year ended 7/31/03 $ 1,246 1.80% 2.79% 1.89% 332%
-------- ------- -------- -------- --------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 723 1.31%** 4.21%** 1.46%** 229%
Year ended 7/31/03 $ 737 1.30% 3.34% 1.39% 332%
-------- ------- -------- -------- --------
SEE NOTES TO FINANCIAL HIGHLIGHTS
184-185 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
--------- -------- ---------- --------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 9.90 0.58 0.16 0.74
Year ended 12/31/99 $ 10.06 0.56 (0.68) (0.12)
Year ended 12/31/00 $ 9.37 0.60 0.29 0.89
1/1/01 to 7/31/01(g) $ 9.66 0.25 0.32 0.57
Year ended 7/31/02 $ 9.90 0.47 0.11 0.58
Year ended 7/31/03 $ 9.98 0.38 0.10 0.48
--------- -------- ---------- --------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 9.93 0.54 0.16 0.70
Year ended 12/31/99 $ 10.08 0.54 (0.68) (0.14)
Year ended 12/31/00 $ 9.40 0.57 0.28 0.85
1/1/01 to 7/31/01(g) $ 9.68 0.25 0.32 0.57
Year ended 7/31/02 $ 9.93 0.50 0.06 0.56
Year ended 7/31/03 $ 10.01 0.36 0.09 0.45
--------- -------- ---------- --------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.08 0.29 (0.10) 0.19
Year ended 7/31/03 $ 9.96 0.29 0.09 0.38
--------- -------- ---------- --------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.08 0.27 (0.07) 0.20
Year ended 7/31/03 $ 9.98 0.30 0.08 0.38
--------- -------- ---------- --------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 9.75 0.56 0.02 0.58
Year ended 12/31/99 $ 9.77 0.53 (0.29) 0.24
Year ended 12/31/00 $ 9.48 0.57 0.18 0.75
1/1/01 to 7/31/01(h) $ 9.66 0.26 0.23 0.49
Year ended 7/31/02 $ 9.83 0.41 0.07 0.48
Year ended 7/31/03 $ 9.82 0.28 0.03 0.31
--------- -------- ---------- --------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 9.74 0.55 0.02 0.57
Year ended 12/31/99 $ 9.76 0.52 (0.30) 0.22
Year ended 12/31/00 $ 9.47 0.56 0.18 0.74
1/1/01 to 7/31/01(h) $ 9.65 0.23 0.25 0.48
Year ended 7/31/02 $ 9.82 0.43 0.03 0.46
Year ended 7/31/03 $ 9.81 0.28 0.02 0.30
--------- -------- ---------- --------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
8/1/98(d) to 7/31/99 $ 9.89 0.46 (0.22) 0.24
Year ended 7/31/00 $ 9.64 0.51 (0.10) 0.41
Year ended 7/31/01 $ 9.54 0.51 0.52 1.03
Year ended 7/31/02(i) $ 10.06 0.41 0.33 0.74
Year ended 7/31/03 $ 10.42 0.30 0.03 0.33
--------- -------- ---------- --------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/99 $ 9.82 0.55 (0.26) 0.29
Year ended 7/31/00 $ 9.64 0.48 (0.09) 0.39
Year ended 7/31/01 $ 9.55 0.50 0.51 1.01
Year ended 7/31/02(i) $ 10.06 0.38 0.35 0.73
Year ended 7/31/03 $ 10.43 0.27 0.03 0.30
--------- -------- ---------- --------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/99 $ 9.80 0.41 (0.18) 0.23
Year ended 7/31/00 $ 9.61 0.43 (0.09) 0.34
Year ended 7/31/01 $ 9.52 0.44 0.49 0.93
Year ended 7/31/02(i) $ 10.01 0.30 0.34 0.64
Year ended 7/31/03 $ 10.36 0.19 0.03 0.22
--------- -------- ---------- --------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
-------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
--------- ------- ---------- ------- -------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.58) -- (0.58) $ 10.06 7.65%
Year ended 12/31/99 (0.57) -- (0.57) $ 9.37 (1.22%)
Year ended 12/31/00 (0.60) -- (0.60) $ 9.66 9.74%
1/1/01 to 7/31/01(g) (0.33) -- (0.33) $ 9.90 6.16%*
Year ended 7/31/02 (0.50) -- (0.50) $ 9.98 6.15%
Year ended 7/31/03 (0.42) -- (0.42) $ 10.04 4.77%
--------- ------- ---------- ------- -------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.55) -- (0.55) $ 10.08 7.26%
Year ended 12/31/99 (0.54) -- (0.54) $ 9.40 (1.36%)
Year ended 12/31/00 (0.57) -- (0.57) $ 9.68 9.44%
1/1/01 to 7/31/01(g) (0.32) -- (0.32) $ 9.93 5.98%*
Year ended 7/31/02 (0.48) -- (0.48) $ 10.01 5.78%
Year ended 7/31/03 (0.40) -- (0.40) $ 10.06 4.52%
--------- ------- ---------- ------- -------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.96 1.92%*
Year ended 7/31/03 (0.33) -- (0.33) $ 10.01 3.78%
--------- ------- ---------- ------- -------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.30) -- (0.30) $ 9.98 2.02%*
Year ended 7/31/03 (0.33) -- (0.33) $ 10.03 3.78%
--------- ------- ---------- ------- -------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.56) -- (0.56) $ 9.77 6.14%
Year ended 12/31/99 (0.53) -- (0.53) $ 9.48 2.50%
Year ended 12/31/00 (0.57) -- (0.57) $ 9.66 8.12%
1/1/01 to 7/31/01(h) (0.32) -- (0.32) $ 9.83 5.29%*
Year ended 7/31/02 (0.49) -- (0.49) $ 9.82 4.96%
Year ended 7/31/03 (0.38) -- (0.38) $ 9.75 3.23%
--------- ------- ---------- ------- -------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.55) -- (0.55) $ 9.76 6.00%
Year ended 12/31/99 (0.51) -- (0.51) $ 9.47 2.35%
Year ended 12/31/00 (0.56) -- (0.56) $ 9.65 7.96%
1/1/01 to 7/31/01(h) (0.31) -- (0.31) $ 9.82 5.20%*
Year ended 7/31/02 (0.47) -- (0.47) $ 9.81 4.83%
Year ended 7/31/03 (0.37) -- (0.37) $ 9.74 3.07%
--------- ------- ---------- ------- -------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
8/1/98(d) to 7/31/99 (0.49) -- (0.49) $ 9.64 2.43%*
Year ended 7/31/00 (0.51) -- (0.51) $ 9.54 4.34%
Year ended 7/31/01 (0.51) -- (0.51) $ 10.06 11.10%
Year ended 7/31/02(i) (0.38) -- (0.38) $ 10.42 7.55%
Year ended 7/31/03 (0.30) (0.16) (0.46) $ 10.29 3.19%
--------- ------- ---------- ------- -------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/99 (0.47) -- (0.47) $ 9.64 2.89%
Year ended 7/31/00 (0.48) -- (0.48) $ 9.55 4.20%
Year ended 7/31/01 (0.50) -- (0.50) $ 10.06 10.76%
Year ended 7/31/02(i) (0.36) -- (0.36) $ 10.43 7.42%
Year ended 7/31/03 (0.28) (0.16) (0.44) $ 10.29 2.83%
--------- ------- ---------- ------- -------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/99 (0.42) -- (0.42) $ 9.61 2.31%
Year ended 7/31/00 (0.43) -- (0.43) $ 9.52 3.65%
Year ended 7/31/01 (0.44) -- (0.44) $ 10.01 9.98%
Year ended 7/31/02(i) (0.29) -- (0.29) $ 10.36 6.53%
Year ended 7/31/03 (0.20) (0.16) (0.36) $ 10.22 2.12%
--------- ------- ---------- ------- -------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- ------- ---------- -------- -------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 885,580 0.76% 5.77% 0.77% 106%
Year ended 12/31/99 $ 843,520 0.77% 5.83% 0.78% 84%
Year ended 12/31/00 $ 714,445 0.76% 6.29% 0.77% 168%
1/1/01 to 7/31/01(g) $ 663,571 0.78%** 4.52%** 0.78%** 141%
Year ended 7/31/02 $ 799,642 0.77% 4.53% 0.82% 229%
Year ended 7/31/03 $ 772,536 0.76% 3.72% 0.81% 252%
--------- ------- ---------- -------- -------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 12,313 1.01% 5.51% 1.02% 106%
Year ended 12/31/99 $ 11,537 1.02% 5.58% 1.03% 84%
Year ended 12/31/00 $ 9,130 1.01% 6.04% 1.02% 168%
1/1/01 to 7/31/01(g) $ 8,467 1.03%** 4.26%** 1.03%** 141%
Year ended 7/31/02 $ 31,977 1.02% 4.25% 1.07% 229%
Year ended 7/31/03 $ 36,471 1.01% 3.45% 1.06% 252%
--------- ------- ---------- -------- -------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 2,580 1.77%** 3.45%** 1.84%** 229%
Year ended 7/31/03 $ 5,564 1.76% 2.64% 1.81% 252%
--------- ------- ---------- -------- -------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 797 1.77%** 3.48%** 1.84%** 229%
Year ended 7/31/03 $ 2,319 1.76% 2.59% 1.81% 252%
--------- ------- ---------- -------- -------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 139,229 0.76% 5.74% 0.77% 72%
Year ended 12/31/99 $ 172,204 0.75% 5.56% 0.76% 60%
Year ended 12/31/00 $ 169,790 0.73% 6.03% 0.74% 73%
1/1/01 to 7/31/01(h) $ 233,444 0.74%** 4.48%** 0.75%** 56%
Year ended 7/31/02 $ 304,882 0.74% 4.02% 0.76% 111%
Year ended 7/31/03 $ 490,229 0.74% 2.59% 0.76% 72%
--------- ------- ---------- -------- -------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 6,126 0.91% 5.60% 1.02% 72%
Year ended 12/31/99 $ 4,573 0.90% 5.40% 1.01% 60%
Year ended 12/31/00 $ 3,505 0.88% 5.88% 0.99% 73%
1/1/01 to 7/31/01(h) $ 3,340 0.89%** 4.22%** 1.00%** 56%
Year ended 7/31/02 $ 19,019 0.90% 3.71% 1.01% 111%
Year ended 7/31/03 $ 33,975 0.89% 2.39% 1.01% 72%
--------- ------- ---------- -------- -------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
8/1/98(d) to 7/31/99 $ 42,239 0.75%** 4.80%** 1.03%** 93%
Year ended 7/31/00 $ 45,139 0.72% 5.24% 0.94% 46%
Year ended 7/31/01 $ 48,770 0.74% 5.20% 0.98% 77%
Year ended 7/31/02(i) $ 50,809 0.87% 4.02% 1.02% 180%
Year ended 7/31/03 $ 50,649 0.81% 2.88% 0.92% 304%
--------- ------- ---------- -------- -------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/99 $ 5,192 0.95% 4.62% 1.28% 93%
Year ended 7/31/00 $ 2,818 0.98% 4.95% 1.19% 46%
Year ended 7/31/01 $ 4,076 0.99% 4.93% 1.24% 77%
Year ended 7/31/02(i) $ 8,436 1.13% 3.70% 1.28% 180%
Year ended 7/31/03 $ 11,413 1.06% 2.61% 1.17% 304%
--------- ------- ---------- -------- -------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/99 $ 431 1.40% 4.20% 1.94% 93%
Year ended 7/31/00 $ 198 1.48% 4.41% 1.92% 46%
Year ended 7/31/01 $ 531 1.71% 4.17% 2.05% 77%
Year ended 7/31/02(i) $ 2,623 1.89% 2.86% 2.03% 180%
Year ended 7/31/03 $ 10,006 1.80% 1.77% 1.91% 304%
--------- ------- ---------- -------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
186-187 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
----------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
---------- ---------- --------- --------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 10.65 0.44 0.15 0.59
Year ended 12/31/99 $ 10.75 0.45 (0.79) (0.34)
Year ended 12/31/00 $ 9.95 0.47 0.73 1.20
1/1/01 to 7/31/01(j) $ 10.68 0.26 0.12 0.38
Year ended 7/31/02 $ 10.75 0.43 0.24 0.67
Year ended 7/31/03 $ 10.74 0.43(3) (0.09) 0.34
---------- ---------- --------- --------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 10.67 0.42 0.15 0.57
Year ended 12/31/99 $ 10.77 0.42 (0.78) (0.36)
Year ended 12/31/00 $ 9.98 0.44 0.73 1.17
1/1/01 to 7/31/01(j) $ 10.71 0.26 0.11 0.37
Year ended 7/31/02 $ 10.78 0.40 0.25 0.65
Year ended 7/31/03 $ 10.77 0.40(3) (0.07) 0.33
---------- ---------- --------- --------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.25 0.09 0.34
Year ended 7/31/03 $ 10.71 0.32(3) (0.07) 0.25
---------- ---------- --------- --------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.25 0.10 0.35
Year ended 7/31/03 $ 10.72 0.32(3) (0.07) 0.25
---------- ---------- --------- --------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.28 0.13 0.41
Year ended 7/31/03 $ 10.73 0.38(3) (0.08) 0.30
---------- ---------- --------- --------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 10.68 0.45 0.11 0.56
Year ended 12/31/99 $ 10.76 0.44 (0.55) (0.11)
Year ended 12/31/00 $ 10.20 0.46 0.43 0.89
1/1/01 to 7/31/01(k) $ 10.63 0.27 0.16 0.43
Year ended 7/31/02 $ 10.78 0.38 0.25 0.63
Year ended 7/31/03 $ 10.79 0.37(3) (0.09) 0.28
---------- ---------- --------- --------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 10.68 0.42 0.11 0.53
Year ended 12/31/99 $ 10.76 0.43 (0.56) (0.13)
Year ended 12/31/00 $ 10.20 0.44 0.43 0.87
1/1/01 to 7/31/01(k) $ 10.63 0.25 0.16 0.41
Year ended 7/31/02 $ 10.78 0.36 0.24 0.60
Year ended 7/31/03 $ 10.79 0.34(3) (0.07) 0.27
---------- ---------- --------- --------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.67 0.21 0.11 0.32
Year ended 7/31/03 $ 10.78 0.26(3) (0.08) 0.18
---------- ---------- --------- --------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.67 0.19 0.13 0.32
Year ended 7/31/03 $ 10.78 0.26(3) (0.08) 0.18
---------- ---------- --------- --------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
--------- -------- ----------- -------- -------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.44) (0.05) (0.49) $ 10.75 5.71%
Year ended 12/31/99 (0.45) (0.01) (0.46) $ 9.95 (3.26%)
Year ended 12/31/00 (0.47) -- (0.47) $ 10.68 12.40%
1/1/01 to 7/31/01(j) (0.26) (0.05) (0.31) $ 10.75 3.66%*
Year ended 7/31/02 (0.43) (0.25) (0.68) $ 10.74 6.57%
Year ended 7/31/03 (0.43) (0.16) (0.59) $ 10.49 3.18%
--------- -------- ----------- -------- -------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.42) (0.05) (0.47) $ 10.77 5.43%
Year ended 12/31/99 (0.42) (0.01) (0.43) $ 9.98 (3.40%)
Year ended 12/31/00 (0.44) -- (0.44) $ 10.71 11.97%
1/1/01 to 7/31/01(j) (0.25) (0.05) (0.30) $ 10.78 3.58%*
Year ended 7/31/02 (0.41) (0.25) (0.66) $ 10.77 6.31%
Year ended 7/31/03 (0.40) (0.16) (0.56) $ 10.54 3.05%
--------- -------- ----------- -------- -------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.71 3.36%*
Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.47 2.26%
--------- -------- ----------- -------- -------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.72 3.42%*
Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.48 2.31%
--------- -------- ----------- -------- -------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.30) (0.25) (0.55) $ 10.73 3.99%*
Year ended 7/31/03 (0.38) (0.16) (0.54) $ 10.49 2.76%
--------- -------- ----------- -------- -------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.45) (0.03) (0.48) $ 10.76 5.37%
Year ended 12/31/99 (0.44) (0.01) (0.45) $ 10.20 (1.01%)
Year ended 12/31/00 (0.46) -- (0.46) $ 10.63 8.99%
1/1/01 to 7/31/01(k) (0.26) (0.02) (0.28) $ 10.78 4.06%*
Year ended 7/31/02 (0.38) (0.24) (0.62) $ 10.79 6.00%
Year ended 7/31/03 (0.36) (0.07) (0.43) $ 10.64 2.64%
--------- -------- ----------- -------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.42) (0.03) (0.45) $ 10.76 5.09%
Year ended 12/31/99 (0.42) (0.01) (0.43) $ 10.20 (1.27%)
Year ended 12/31/00 (0.44) -- (0.44) $ 10.63 8.72%
1/1/01 to 7/31/01(k) (0.24) (0.02) (0.26) $ 10.78 3.91%*
Year ended 7/31/02 (0.35) (0.24) (0.59) $ 10.79 5.74%
Year ended 7/31/03 (0.34) (0.07) (0.41) $ 10.65 2.48%
--------- -------- ----------- -------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.02%*
Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.67%
--------- -------- ----------- -------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.03%*
Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.64%
--------- -------- ----------- -------- -------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- -------- -------- ------- -------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 128,232 0.81% 4.16% 0.82% 53%
Year ended 12/31/99 $ 122,052 0.82% 4.32% 0.83% 109%
Year ended 12/31/00 $ 135,184 0.78% 4.61% 0.79% 119%
1/1/01 to 7/31/01(j) $ 125,382 0.79%** 4.21%** 0.81%** 89%
Year ended 7/31/02 $ 104,209 0.79% 4.06% 0.89% 97%
Year ended 7/31/03 $ 74,347 0.79% 3.98% 0.93% 21%
--------- -------- -------- ------- -------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 1,938 1.06% 3.91% 1.07% 53%
Year ended 12/31/99 $ 1,554 1.07% 4.05% 1.08% 109%
Year ended 12/31/00 $ 1,479 1.03% 4.36% 1.04% 119%
1/1/01 to 7/31/01(j) $ 1,114 1.04%** 3.98%** 1.06%** 89%
Year ended 7/31/02 $ 1,498 1.04% 3.83% 1.14% 97%
Year ended 7/31/03 $ 1,906 1.04% 3.71% 1.18% 21%
--------- -------- -------- ------- -------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 511 1.80%** 3.08%** 1.96%** 97%
Year ended 7/31/03 $ 1,205 1.79% 2.97% 1.92% 21%
--------- -------- -------- ------- -------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 210 1.80%** 3.10%** 1.94%** 97%
Year ended 7/31/03 $ 548 1.79% 2.98% 1.93% 21%
--------- -------- -------- ------- -------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 174 1.30%** 3.57%** 1.50%** 97%
Year ended 7/31/03 $ 382 1.29% 3.47% 1.43% 21%
--------- -------- -------- ------- -------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 296,484 0.73% 4.22% 0.74% 40%
Year ended 12/31/99 $ 302,948 0.73% 4.22% 0.74% 63%
Year ended 12/31/00 $ 256,926 0.72% 4.43% 0.73% 59%
1/1/01 to 7/31/01(k) $ 237,929 0.74%** 4.29%** 0.74%** 36%
Year ended 7/31/02 $ 346,386 0.73% 3.56% 0.83% 86%
Year ended 7/31/03 $ 304,754 0.73% 3.36% 0.83% 85%
--------- -------- -------- ------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 4,038 0.98% 3.97% 0.99% 40%
Year ended 12/31/99 $ 3,745 0.98% 3.97% 0.99% 63%
Year ended 12/31/00 $ 2,989 0.97% 4.18% 0.98% 59%
1/1/01 to 7/31/01(k) $ 5,204 0.99%** 3.96%** 1.00%** 36%
Year ended 7/31/02 $ 4,445 0.98% 3.32% 1.07% 86%
Year ended 7/31/03 $ 4,317 0.98% 3.10% 1.08% 85%
--------- -------- -------- ------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 303 1.74%** 2.41%** 1.87%** 86%
Year ended 7/31/03 $ 1,066 1.73% 2.35% 1.83% 85%
--------- -------- -------- ------- -------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 528 1.74%** 2.08%** 1.87%** 86%
Year ended 7/31/03 $ 973 1.73% 2.35% 1.83% 85%
--------- -------- -------- ------- -------
SEE NOTES TO FINANCIAL HIGHLIGHTS
188-189 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
---------- ------------- -------------- -----------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 10.33 0.40 (0.24) 0.16
Year ended 7/31/00 $ 10.02 0.41 (0.12) 0.29
Year ended 7/31/01 $ 9.88 0.41 0.39 0.80
Year ended 7/31/02(l) $ 10.27 0.39 0.20 0.59
Year ended 7/31/03 $ 10.48 0.37 (0.09) 0.28
---------- ------------- -------------- -----------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/99 $ 10.29 0.46 (0.29) 0.17
Year ended 7/31/00 $ 10.02 0.39 (0.11) 0.28
Year ended 7/31/01 $ 9.89 0.39 0.39 0.78
Year ended 7/31/02(l) $ 10.28 0.36 0.19 0.55
Year ended 7/31/03 $ 10.48 0.35 (0.10) 0.25
---------- ------------- -------------- -----------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 9.90 0.30 0.20 0.50
Year ended 7/31/02(l) $ 10.10 0.28 0.19 0.47
Year ended 7/31/03 $ 10.29 0.27 (0.10) 0.17
---------- ------------- -------------- -----------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/99 $ 10.28 0.33 (0.21) 0.12
Year ended 7/31/00 $ 10.01 0.34 (0.12) 0.22
Year ended 7/31/01 $ 9.87 0.33 0.38 0.71
Year ended 7/31/02(l) $ 10.25 0.28 0.19 0.47
Year ended 7/31/03 $ 10.44 0.26 (0.09) 0.17
---------- ------------- -------------- -----------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 10.21 0.40 0.08 0.48
Year ended 12/31/99 $ 10.27 0.41 (0.34) 0.07
Year ended 12/31/00 $ 9.93 0.43 0.18 0.61
1/1/01 to 7/31/01(m) $ 10.10 0.24 0.16 0.40
Year ended 7/31/02 $ 10.25 0.38 0.19 0.57
Year ended 7/31/03 $ 10.39 0.31 (0.05) 0.26
---------- ------------- -------------- -----------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 10.20 0.39 0.07 0.46
Year ended 12/31/99 $ 10.26 0.39 (0.34) 0.05
Year ended 12/31/00 $ 9.92 0.41 0.18 0.59
1/1/01 to 7/31/01(m) $ 10.09 0.23 0.16 0.39
Year ended 7/31/02 $ 10.24 0.36 0.19 0.55
Year ended 7/31/03 $ 10.38 0.30 (0.05) 0.25
---------- ------------- -------------- -----------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.35 0.21 0.08 0.29
Year ended 7/31/03 $ 10.38 0.21 (0.05) 0.16
---------- ------------- -------------- -----------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.35 0.19 0.10 0.29
Year ended 7/31/03 $ 10.38 0.21 (0.06) 0.15
---------- ------------- -------------- -----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
---------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
---------- -------- ------------- ------- ----------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 (0.41) (0.06) (0.47) $10.02 1.48%*
Year ended 7/31/00 (0.41) (0.02) (0.43) $ 9.88 3.01%
Year ended 7/31/01 (0.41) -- (0.41) $10.27 8.28%
Year ended 7/31/02(l) (0.38) -- (0.38) $10.48 5.86%
Year ended 7/31/03 (0.37) -- (0.37) $10.39 2.65%
---------- -------- ------------- ------- ----------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/99 (0.38) (0.06) (0.44) $10.02 1.63%
Year ended 7/31/00 (0.39) (0.02) (0.41) $ 9.89 2.85%
Year ended 7/31/01 (0.39) -- (0.39) $10.28 8.04%
Year ended 7/31/02(l) (0.35) -- (0.35) $10.48 5.50%
Year ended 7/31/03 (0.34) -- (0.34) $10.39 2.39%
---------- -------- ------------- ------- ----------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.30) -- (0.30) $10.10 5.17%*
Year ended 7/31/02(l) (0.28) -- (0.28) $10.29 4.76%
Year ended 7/31/03 (0.27) -- (0.27) $10.19 1.59%
---------- -------- ------------- ------- ----------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/99 (0.33) (0.06) (0.39) $10.01 1.13%
Year ended 7/31/00 (0.34) (0.02) (0.36) $ 9.87 2.25%
Year ended 7/31/01 (0.33) -- (0.33) $10.25 7.31%
Year ended 7/31/02(l) (0.28) -- (0.28) $10.44 4.71%
Year ended 7/31/03 (0.26) -- (0.26) $10.35 1.65%
---------- -------- ------------- ------- ----------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 (0.41) (0.01) (0.42) $10.27 4.75%
Year ended 12/31/99 (0.41) -- (0.41) $ 9.93 0.67%
Year ended 12/31/00 (0.43) (0.01) (0.44) $10.10 6.31%
1/1/01 to 7/31/01(m) (0.24) (0.01) (0.25) $10.25 4.01%*
Year ended 7/31/02 (0.38) (0.05) (0.43) $10.39 5.65%
Year ended 7/31/03 (0.31) (0.03) (0.34) $10.31 2.70%
---------- -------- ------------- ------- ----------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 (0.39) (0.01) (0.40) $10.26 4.60%
Year ended 12/31/99 (0.39) -- (0.39) $ 9.92 0.51%
Year ended 12/31/00 (0.41) (0.01) (0.42) $10.09 6.05%
1/1/01 to 7/31/01(m) (0.23) (0.01) (0.24) $10.24 4.02%*
Year ended 7/31/02 (0.36) (0.05) (0.41) $10.38 5.51%
Year ended 7/31/03 (0.30) (0.03) (0.33) $10.30 2.45%
---------- -------- ------------- ------- ----------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $10.38 2.82%*
Year ended 7/31/03 (0.21) (0.03) (0.24) $10.30 1.70%
---------- -------- ------------- ------- ----------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $10.38 2.89%*
Year ended 7/31/03 (0.21) (0.03) (0.24) $10.29 1.60%
---------- -------- ------------- ------- ----------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
--------- -------- ------------- ------------ ---------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
8/11/98(d) to 7/31/99 $ 182,679 0.82%** 3.81%** 0.87%** 47%
Year ended 7/31/00 $ 166,623 0.76% 4.15% 0.80% 26%
Year ended 7/31/01 $ 166,802 0.76% 4.09% 0.82% 26%
Year ended 7/31/02(l) $ 169,455 0.86% 3.80% 0.91% 28%
Year ended 7/31/03 $ 151,478 0.77% 3.49% 0.85% 20%
--------- -------- ------------- ------------ -----------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/99 $ 22,008 1.00% 3.68% 1.21% 47%
Year ended 7/31/00 $ 13,257 1.01% 3.88% 1.05% 26%
Year ended 7/31/01 $ 14,516 1.01% 3.83% 1.07% 26%
Year ended 7/31/02(l) $ 18,638 1.11% 3.53% 1.17% 28%
Year ended 7/31/03 $ 25,177 1.02% 3.23% 1.10% 20%
--------- -------- ------------- ------------ -----------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 898 1.78%** 2.99%** 1.84%** 26%
Year ended 7/31/02(l) $ 2,732 1.87% 2.72% 1.93% 28%
Year ended 7/31/03 $ 5,101 1.76% 2.48% 1.84% 20%
--------- -------- ------------- ------------ -----------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/99 $ 1,071 1.55% 3.05% 1.93% 47%
Year ended 7/31/00 $ 990 1.52% 3.30% 1.81% 26%
Year ended 7/31/01 $ 1,516 1.72% 3.12% 1.89% 26%
Year ended 7/31/02(l) $ 3,746 1.88% 2.72% 1.94% 28%
Year ended 7/31/03 $ 6,395 1.77% 2.48% 1.85% 20%
--------- -------- ------------- ------------ -----------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $ 117,957 0.69% 3.97% 0.70% 51%
Year ended 12/31/99 $ 102,608 0.71% 3.98% 0.72% 14%
Year ended 12/31/00 $ 87,926 0.68% 4.17% 0.69% 36%
1/1/01 to 7/31/01(m) $ 80,556 0.69%** 4.00%** 0.71%** 19%
Year ended 7/31/02 $ 96,269 0.69% 3.64% 0.78% 25%
Year ended 7/31/03 $ 118,867 0.69% 3.02% 0.77% 12%
--------- -------- ------------- ------------ -----------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/98 $ 5,946 0.84% 3.82% 0.95% 51%
Year ended 12/31/99 $ 4,378 0.86% 3.83% 0.97% 14%
Year ended 12/31/00 $ 3,629 0.83% 4.01% 0.94% 36%
1/1/01 to 7/31/01(m) $ 3,569 0.84%** 3.85%** 0.96%** 19%
Year ended 7/31/02 $ 3,575 0.84% 3.49% 1.03% 25%
Year ended 7/31/03 $ 8,006 0.84% 2.84% 1.02% 12%
--------- -------- ------------- ------------ -----------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 374 1.70%** 2.48%** 1.84%** 25%
Year ended 7/31/03 $ 2,010 1.69% 1.95% 1.76% 12%
--------- -------- ------------- ------------ -----------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 795 1.70%** 2.47%** 1.82%** 25%
Year ended 7/31/03 $ 3,967 1.69% 1.97% 1.77% 12%
--------- -------- ------------- ------------ -----------
SEE NOTES TO FINANCIAL HIGHLIGHTS
190-191 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(a) During various periods, certain fees were reduced. The ratios shown do
not include these fee reductions.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(c) The Fund changed its fiscal year end to July 31 from December 31.
(d) Reflects date of commencement of operations.
(e) As required, effective August 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended, July 31, 2002 for the Balanced
Fund, Institutional, Class A, Class B, Class C and Advisor Shares was
to increase net investment income per share by $0.02, decrease net
realized and unrealized gains and losses per share by ($0.02) and
increase the ratio of net investment income to average net assets from
0.96% to 1.11%, 0.75% to 0.86%, 0.09% to 0.10%, 0.10% to 0.11% and
0.47% to 0.55%, respectively. Per share, ratios and sup- plemental data
for periods prior to July 31, 2001 have not been restated to reflect
this change in presentation.
(f) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began amortizing premiums on debt securities. The effect
of this change for the period ended July 31, 2001 for the Bond Fund,
Institutional and Class A Shares was to decrease net investment income
per share by ($0.02), increase net realized and unrealized gains and
losses per share by $0.02 and decrease the ratio of net investment
income to average net assets from 5.21% to 4.87% and 4.95% to 4.61%,
respectively. Per share, ratios and supplemental data for periods prior
to July 1, 2001 have not been restated to reflect this change in
presentation.
(g) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began amortizing premiums on debt securities. The effect
of this change for the period ended July 31, 2001 for the Intermediate
Bond Fund, Institutional and Class A Shares was to decrease net
investment income per share by ($0.03), increase net realized and
unrealized gains and losses per share by $0.03 and decrease the ratio
of net investment income to average net assets from 4.97% to 4.52% and
4.70% to 4.26%, respectively. Per share, ratios and supplemental data
for periods prior to July 1, 2001 have not been restated to reflect
this change in presentation.
(h) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began amortizing premiums on debt securities. The effect
of this change for the period ended July 31, 2001 for the Short Term
Bond Fund, Institutional and Class A Shares was to decrease net
investment income per share by ($0.02), increase net realized and
unrealized gains and losses per share by $0.02 and decrease the ratio
of net investment income to average net assets from 4.93% to 4.48% and
4.67% to 4.22%, respectively. Per share, ratios and supplemental data
for periods prior to July 1, 2001 have not been restated to reflect
this change in presentation.
(i) As required, effective August 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended July 31, 2002 for the U.S.
Government Bond Fund, Institutional, Class A and C Shares was to
increase net investment income per share by $0.02, decrease net real-
ized and unrealized gains and losses per share by ($0.02) and increase
the ratio of net investment income to average net assets from 3.82% to
4.02%, 3.52% to 3.70% and 2.71% to 2.86%, respectively. Per share,
ratios and supplemental data for the periods prior to July 31, 2001
have not been restated to reflect this change in presentation.
(j) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended July 31, 2001 for the Municipal
Bond Fund, Institutional and Class A Shares was to increase net
investment income per share by $0.00, decrease net real- ized and
unrealized gains and losses per share by ($0.00) and increase the ratio
of net investment income to average net assets from 4.20% to 4.21% and
3.97% to 3.97%, respectively. Per share, ratios and supplemental data
for periods prior to July 1, 2001 have not been restated to reflect
this change in presentation.
(k) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended July 31, 2001 for the Intermediate
Municipal Bond Fund, Institutional and Class A Shares was to increase
net investment income per share by $0.00, decrease net realized and
unrealized gains and losses per share by ($0.00) and increase the ratio
of net investment income to average net assets from 4.25% to 4.29% and
3.92% to 3.96%, respectively. Per share, ratios and supplemental data
for periods prior to July 1, 2001 have not been restated to reflect
this change in presentation.
SEE NOTES TO FINANCIAL STATEMENTS
192
FIFTH THIRD FUNDS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(l) As required, effective August 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended July 31, 2002 for the Ohio
Municipal Bond Fund, Institutional, Class A, B and C shares was to
increase net investment income per share by $0.00, decrease net real-
ized and unrealized gains an losses per share by ($0.00) and increase
the ratio of net investment income to average net assets from 3.77% to
3.80%, 3.50% to 3.53%, 2.69% to 2.72% and 2.70% to 2.72%, respectively.
Per share, ratios and supplemental data for periods prior to July 31,
2001 have not been restated to reflect this change in presentation.
(m) Reflects operations for the period from January 1, 2001 to July
31, 2001. The Fund changed its fiscal year end to July 31 from December
31. As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began accreting discounts on debt securities. The effect
of this change for the period ended July 31, 2001 for the Michigan
Municipal Bond Fund, Institutional and Class A Shares was to increase
net investment income per share by $0.00, decrease net realized and
unrealized gains and losses per share by ($0.00) and increase the ratio
of net investment income to average net assets from 3.99% to 4.00% and
3.84% to 3.85%, respectively. Per share, ratios and supplemental data
for periods prior to July 31, 2001 have not been restated to reflect
this change in presentation.
(n) The total returns shown include the losses realized on the
disposal of investments that were reimbursed by the advisor, which
otherwise would have reduced the total returns by 0.28%, 0.09% and
0.29% for Institutional, Class C and Advisor Shares, respectively.
^ Amount is less than $0.005 per share.
* Not annualized.
** Annualized.
# Represents income or gains/(losses) from affiliates.
(3) Average shares method used in calculation.
SEE NOTES TO FINANCIAL STATEMENTS
193
REPORT OF INDEPENDENT AUDITORS
- -------------------------------------------------------------------------------
To the Shareholders and Trustees
of Fifth Third Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fifth Third Small Cap Growth Fund,
Fifth Third Mid Cap Growth Fund, Fifth Third Large Cap Opportunity Fund, Fifth
Third Quality Growth Fund, Fifth Third Large Cap Core Fund, Fifth Third Equity
Index Fund, Fifth Balanced Fund, Fifth Third Micro Cap Value Fund, Fifth Third
Small Cap Value Fund, Fifth Third Multi Cap Value Fund, Fifth Third Disciplined
Large Cap Value Fund, Fifth Third LifeModel Aggressive FundSM, Fifth Third
LifeModel Moderately Aggressive FundSM, Fifth Third LifeModel Moderate FundSM,
Fifth Third LifeModel Moderately Conservative FundSM, Fifth Third LifeModel
Conservative FundSM, Fifth Third Strategic Income Fund, Fifth Third Technology
Fund, Fifth Third Worldwide Fund, Fifth Third International Equity Fund, Fifth
Third International GDP Fund, Fifth Third Bond Fund, Fifth Third Intermediate
Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third U.S. Government Bond
Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond
Fund, Fifth Third Ohio Municipal Bond Fund and Fifth Third Michigan Municipal
Bond Fund (separate portfolios constituting Fifth Third Funds, hereafter
referred to as the "Funds") at July 31, 2003, the results of each of their
operations for the year or period then ended, the changes in each of their net
assets and the financial highlights for each of the periods in the two years
then ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation and examination of securities at July 31,
2003 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights of the Fifth Third Mid Cap Fund,
Fifth Third Technology Fund, Fifth Third Pinnacle Fund, Fifth Third Quality
Growth Fund, Fifth Third Equity Income Fund, Fifth Third Balanced Fund, Fifth
Third International Equity Fund, Fifth Third Ohio Municipal Bond Fund and Fifth
Third U.S. Government Bond Fund for the period ended July 31, 2001 and prior
were audited by other auditors who have ceased operations. Those independent
auditors expressed an unqualified opinion on those statements in there report
dated September 7, 2001. The financial highlights of the Fifth Third Small Cap
Growth Fund, Fifth Third Large Cap Core Fund, Fifth Third Equity Index Fund,
Fifth Third International GDP Fund, Fifth Third Michigan Municipal Bond Fund,
Fifth Third Municipal Bond Fund, Fifth Third Bond Fund, Fifth Third Intermediate
Municipal Bond Fund, Fifth Third Intermediate Bond Fund and Fifth Third Short
Term Bond Fund for the periods ended July 31, 2001 and prior were audited by
other auditors who have ceased operations. Those independent auditors expressed
an unqualified opinion on those statements in their report dated September 4,
2001. The statement of changes and financial highlights of Fifth Third Micro Cap
Value Fund, Fifth Third Multi Cap Value Fund, Fifth Third Strategic Income Fund
and Fifth Third Worldwide Fund for the periods ended December 31, 2001 and prior
were audited by other independent auditors. Those independent auditors expressed
an unqualified opinion on those statements in their report dated February 22,
2002.
PricewaterhouseCoopers LLP
Columbus, Ohio
September 16, 2003
194
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- -----------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT *
The Trustees and Officers of the Funds, their ages, the position they hold with
the Funds, their term of office and length of time served, a description of
their principal occupations during the past five years, the number of portfolios
in the fund complex that the Trustee oversees and any other directorships held
by the Trustee are listed in the two tables immediately following. The business
address of the persons listed below is 3435 Stelzer Road, Columbus, Ohio
43219-3035
INDEPENDENT TRUSTEES
-------------------- NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX
NAME WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
AND AGE FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------- ------------ ----------- ----------------------- ------------ --------------------
David J. Durham Trustee Indefinite, President and Chief 37 None
Birthdate: 5/10/1945 June 2001- Executive Officer of Clipper
Present Products, Inc., a wholesale
distributor, 1997-Present.
J. Joseph Hale Jr. Trustee Indefinite, President, Cinergy Foundation, 37 None
Birthdate: 9/11/1949 March November 2001-Present;
2001-Present President, Cinergy Corp.,
Cincinnati Gas & Electric Co.,
The Union Light Heat & Power
Co., November 2000-October
2001; Vice President, Corporate
Communications, August 1996-
June 2000.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 37 Printing Industries of
Birthdate: 12/5/1944 October Present; Business America-Web Offset
2001- Present Management consultant, April Assoc., Director & Master
2000-February 2002; President, Printers of America,
Metroweb Corp. (publications Director.
printing) 1997-2000.
INTERESTED TRUSTEE
--------------------
Edward Burke Carey** Chairman-Board Indefinite, President of Carey Realty 37 The Foundation of the
Birthdate 7/2/1945 of Trustees January Investments, Inc. Catholic Diocese of
1989-Present Columbus-Trustee Ohio
and Kentucky Chapters
of the Counselors of
Real Estate-Trustee,
Chairman.
___________________________________________
* Additional disclosures can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
** Mr. Carey is treated by the Funds as an "interested person"
(as defined in Section 2(a)(19) of the 1940 Act) of the Funds and the
Investment Advisor. Mr. Carey is an "interested person" because of his
business transactions with Fifth Third Bank and its affiliates.
Mr. Carey's wife owns shares of Fifth Third Bank.
195
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------
OFFICERS
--------
NAME POSITION(S) HELD TERM OF OFFICE AND PRINCIPAL OCCUPATION(S)
AND AGE WITH THE FUNDS LENGTH OF TIME SERVED DURING THE PAST 5 YEARS
------ ---------------- --------------------- -----------------------
C. David Bunstine President Indefinite, Employee of BISYS Fund
Birthdate: 7/30/65 March Services Limited Partnership
2003-Present since December 1987.
Russell D. Ungerman Vice President Indefinite, Trust Officer of Fifth Third Bank,
Birthdate: 2/9/1971 September 1998-Present; Trust Officer of
2002-Present Wilmington Trust Co., 1994-1998.
Rodney L. Ruehle Vice President Indefinite, Employee of BISYS Fund
Birthdate: 4/26/1968 and Secretary September Services Limited Partnership
2001-Present since August 1995.
Adam S. Ness Treasurer Indefinite, Employee of BISYS Fund
Birthdate: 10/14/1972 September Services Limited Partnership
2001-Present since June 1998.
Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund
Birthdate: 2/13/1962 and Assistant September Services Limited Partnership
Treasurer 2001-Present since May 1995
196
ADDRESSES
- --------------------------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Stock and Bond Funds 3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------------------------
Investment Advisor (Large Cap Opportunity Fund only) Heartland Capital Management, Inc.
251 North Illinois Street, Suite 300
Indianapolis, Indiana 46204
- --------------------------------------------------------------------------------------------------
Sub-Advisor (Small Cap Value Fund only) Chartwell Investment Partners L.P.
1235 Westlakes Drive, Suite 400
Berwyn, Pennsylvania 19312
- --------------------------------------------------------------------------------------------------
Sub-Advisor (International Equity Fund only) Morgan Stanley Investment
Management, Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------
Administrator, Transfer and Dividend Disbursing Fifth Third Bank
Agent, Accountant and Custodian 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------
Sub-Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc.
and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------
Independent Auditors PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- --------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LOGO
9/03 AR-STBD-03
Logo: Fifth Third Funds
MONEY MARKET MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
- --------------------
July 31, 2003
NOTICE OF DELIVERY OF PROSPECTUSES,
SEMI-ANNUAL REPORTS AND ANNUAL REPORTS
In order to reduce expenses of the Fifth Third Funds incurred in connection with
the mailing of prospectuses, prospectus supplements, semi-annual reports and
annual reports to multiple shareholders at the same address, Fifth Third Funds
may in the future deliver one copy of a prospectus, prospectus supplement,
semi-annual report or annual report to a single investor sharing a street
address or post office box with other investors, provided that all such
investors have the same last name or are believed to be members of the same
family. If you share an address with another investor and wish to receive your
own prospectus, prospectus supplements, semi-annual reports and annual reports,
please call the Trust toll-free at 1-800-282-5706.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by a prospectus for the Funds, which contains facts
concerning the objectives and policies, management fees, expenses and other
information.
Fifth Third Asset Management Inc. serves as Investment Advisor to the Funds and
receives a fee for their services. The Fifth Third Funds are distributed by
Fifth Third Funds Distributor, Inc.
Fifth Third Funds, like all mutual funds:
o are NOT FDIC insured
o have no bank guarantee
o may lose value
TABLE OF CONTENTS
Economic Outlook and
Commentary Section .................. 1
Manager Commentary .................. 3
Schedules of Portfolio
Investments ..................... 5
Notes to Schedules of
Portfolio Investments ........... 20
Statements of Assets
and Liabilities ................. 22
Statements of Operations ............ 24
Statements of Changes
in Net Assets ................... 26
Notes to Financial Statements ....... 28
Financial Highlights ................ 34
Notes to Financial Highlights ....... 36
Report of the
Independent Auditors ........... 38
Supplemental Information ............ 39
Our Message to You
- --------------------------------------------------------------------------------
Logo: Fifth Third Funds
A TALE OF TWO MARKETS...
The fiscal year starting August 1, 2002 began with corporate scandal, concerns
about a lingering recession, increasing tensions with Iraq, falling consumer
confidence, plunging interest rates and a declining stock market. Stocks--as
measured by the S&P 500 Index1--fell 28% during the fiscal year.
Almost all of those elements have changed during the past year. Stocks are
higher, bond yields are roughly unchanged from a year ago, consumer confidence
and economic activity is increasing, and Saddam Hussein is on the run.
Over the past 12-months ended July 31, 2003, the stock market (as measured by
the S&P 500 Index) experienced two lows in price--one on October 9, 2002 at
776.76 and another on March 11, 2003 at 800.73. The October low was slightly
lower, but both were equally nerve-wracking to investors. From mid-March, 2003
to the end of the recent fiscal year on July 31, the S&P 500 Index rose 23%,
leaving the benchmark index with a return of 10.64% for the fiscal year ended
July 31, 2003.
Bond investors also experienced heightened volatility during the fiscal year.
Bond yields moved to 45-year lows in mid-June, 2003. Since that time, however,
bond yields (as measured by the 10-year Treasury Note) have rebounded to show
almost no change for the 12-months through July 2003. The yield on the 10-year
Treasury started the fiscal year at 4.46% and ended the fiscal year at 4.41%.
The main bond benchmark index--the Lehman Brothers Aggregate Bond
Index1--returned 5.42% over the recent 12-month period.
U.S. economic activity, geopolitical events, investors' renewed sense of trust
and tax cuts all had a hand in bringing the stock market back to positive
returns for the fiscal year, and bringing bond yields back from
multi-generational lows in yield. A very potent mix of fiscal stimulus (via
tax cuts) and monetary stimulus (via growth in the money supply) currently
supports increased economic activity. This in turn is pushing corporate
profits and bond yields higher.
DISCIPLINE PAYS OFF FOR INVESTORS
Investing during the past 12-months required patience, discipline and clear-
headed decision-making. Looking back at pre-war conditions it took courage to
- --------------------------------------------------------------------------------
Graph data:
S&P 500 STOCK INDEX
CLOSING VALUES
Aug 1, 2002 884
Aug 02 916
Sept 02 815
Oct 9, 2002 776.76
Oct 02 885
Nov. 02 936
Dec. 02 879
Jan. 03 855
Feb. 03 841
Mar 11, 2003 800.73
Mar. 03 848
Apr. 03 916
May 03 963
Jun. 03 974
July 03 990.31
- --------------------------------------------------------------------------------
The above graph represents the closing values of the Standard & Poor's 500
Stock Index for the time periods indicated. Source - Bloomberg.
1The S&P 500 Index is an unmanaged index which is comprised of 500 selected
common stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole. The Lehman Brothers Aggregate Bond
Index is an unmanaged market value-weighted performance benchmark for
investment-grade fixed-rate debt issues, including government, corporate,
asset-backed and mortgage-backed securities with maturitites of at least one
year. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
1
- --------------------------------------------------------------------------------
be fully invested in a diversified stock portfolio in March 2003, however,
that strategy resulted in successful investment returns.
The financial markets reacted to changing financial conditions in a more
predictable way during this fiscal year than they did in the previous fiscal
year.
o When corporate earnings showed positive year-over-year growth for the
quarter ended September 30, 2002, the S&P 500 Index bottomed out and
started moving higher.
o When the uncertainty about the Iraqi War began to approach in early
2003, stocks again faded.
o When the outcome of the Iraqi War became more certain, corporate
earnings kept moving higher, consumer confidence began to turn
positive and stocks moved sharply higher.
Our managers had the discipline to be cautious during the first half of this
fiscal year, and were sufficiently opportunistic during the second half to
attempt to offer strong performance. Our mutual fund family grew by $1.8
billion during the fiscal year. We appreciate the continued confidence of our
customers and we will continue to work everyday to attempt to monitor
financial markets to attempt to identify risks and opportunities on behalf of
our shareholders.
The Fifth Third Funds family now offers a broader array of investment choices,
encompassing multiple investment styles. These investments are designed to
meet the needs of our expanding customer base, helping them to structure
diversified portfolios that offer exposure to stocks, bond, cash and
alternative investment vehicles. We believe that diversified portfolios
provide investors with the best opportunity to build wealth over time with a
reasonable level of risk.
Thank you for your continued confidence in the Fifth Third Funds.
Sincerely,
/s/ Keith Wirtz, CFA
Keith Wirtz, CFA
Chief Investment Officer
Fifth Third Asset Management Inc.
/s/ John Augustine, CFA
John Augustine, CFA
Director of Investment Strategy
Fifth Third Asset Management Inc.
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Money Market Funds+
An interview with John Hoeting and Patty Younker, portfolio managers
Q. WHAT WERE CONDITIONS IN THE MONEY MARKETS DURING THE 12- MONTHS ENDED JULY
31, 2003?
A. The U.S. economy remained relatively weak during the period, as geopolitical
concerns and slow business spending resulted in below-trend growth. The Federal
Open Market Committee ("FOMC") lowered the federal funds rate twice during the
12- months through July, 2003 in an attempt to boost economic growth. The final
rate cut brought the Federal Funds target rate to 1.00%--it's lowest level in
more than 40 years. Money market yields declined as interest rates fell during
the period. The tax-exempt money market also saw increased issuance as state and
local governments worked to close budget gaps caused by the continued economic
weakness.
Q. HOW DID YOU MANAGE THE FUNDS IN THAT ENVIRONMENT?
A. We positioned the Funds with an average maturity neutral to or slightly
longer than their peer groups. This duration approach helped the Funds' relative
performance, particularly after the FOMC lowered the Federal Funds target rate
in November, 2002 and in June, 2003.
The taxable money market funds employed an alternative barbell approach late in
2002 in hopes of boosting the Funds' yields and liquidity. A traditional barbell
approach calls for a combination of cash and longer-term securities. An
alternative barbell strategy combines cash with longer-term fixed- and
floating-rate securities. The floating rate securities traditionally yield more
than cash while providing a hedge against rising interest rates. We employed
this strategy because we expected the Federal Funds target rate to remain
neutral or rise. Because the FOMC reduced rates late in the period, the Fund was
hurt slightly by its alternative barbell strategy. However, that strategy helped
boost liquidity, which was beneficial as cash flows were quite volatile due to
investor anxiety over the economic and geopolitical landscape.
The Fifth Third Institutional Money Market and Fifth Third Prime Money Market
Funds maintained their conservative orientation with continued emphasis on
high-quality security selection. That strategy benefited the Funds during the
period.
The Fifth Third Municipal Money Market++ and Fifth Third Michigan Municipal
Money Market++ Funds were managed conservatively during the period, with an
emphasis on high-quality securities. Investors increasingly sought higher yields
in alternative investments as interest rates fell to historically low levels.
This tendency led to concerns about liquidity in the Funds. As a result, we
preferred more liquid weekly floating-rate securities versus one-year notes, as
the two investments offered similar yields. The yield on one-year paper
increased during the month of July, however, and we took that opportunity to
increase the Funds' average maturity. We also added value by investing in
smaller issues. Such issues tend to offer higher yields because fewer funds are
interested in them.
+An investment in any of the funds is not insured or guaranteed by the FDIC or
any government agency. Although each money market fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in a money market fund.
++The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, to the federal alternative minimum tax. Regional
investing may incur additional risk since investments may be limited to one
geographical area.
+++The composition of the Fund's portfolio is subject to change.
MATURITY COMPOSITION++
Weighted Average Maturity
- --------------------------------------------------------------------------------------------------
(DAYS) (DAYS)
(AS OF 1/31/03) (AS OF 7/31/03)
Fifth Third Prime Money Market Fund ....................... 62 65
Fifth Third Institutional Money Market Fund ............... 68 63
Fifth Third Institutional Government Money Market Fund .... 52 56
Fifth Third Government Money Market Fund .................. 59 55
Fifth Third U. S. Treasury Money Market Fund .............. 46 46
Fifth Third Michigan Municipal Money Market Fund .......... 46 38
Fifth Third Municipal Money Market Fund ................... 41 38
- --------------------------------------------------------------------------------------------------
3
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4
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
CERTIFICATES OF DEPOSIT (2.5%)
Barclays Bank, 0.93%, 8/25/03 $ 25,000 $ 25,000
BNP Paribas Yankee CD,
1.03%, 6/23/04 * 25,000 24,995
-----------
TOTAL CERTIFICATES OF DEPOSIT 49,995
-----------
COMMERCIAL PAPER (15.4%)
Abbey National, 1.03%, 8/19/03 ** 18,800 18,790
ABN AMRO, 1.03%, 8/26/03 ** 25,000 24,982
Barclay U.S. Funding Corp.,
1.03%, 9/15/03 ** 20,000 19,974
BASF Aktiengesellschaft,
1.21%, 8/18/03 ** 20,000 19,989
Chevron, Corp., 1.02%, 9/22/03 ** 10,000 9,985
General Electric Capital Corp.,
0.95%, 8/7/03 ** 8,000 7,999
General Electric Capital Corp.,
1.28%, 8/25/03 ** 20,000 19,983
General Electric Capital Corp.,
1.21%, 9/10/03 ** 20,000 19,973
Goldman Sachs Group, LP,
1.03%, 8/5/03 ** 15,000 14,998
Goldman Sachs Group, LP,
0.92%, 11/17/03 ** 15,000 14,959
Nestle Capital Corp., 1.09%, 10/2/03 ** 25,000 24,953
Purdue Research Foundation,
1.07%, 11/6/03 5,500 5,500
Societe Generale, 1.20%, 8/7/03 ** 25,000 24,996
Societe Generale, 0.93%, 9/24/03 ** 20,000 19,972
State Street, 1.20%, 8/4/03 ** 25,000 24,997
Toronto Dominion, 1.03%, 8/21/03 ** 20,000 19,989
Toronto Dominion, 1.19%, 9/24/03 ** 15,000 14,973
-----------
TOTAL COMMERCIAL PAPER 307,012
-----------
CORPORATE BONDS (39.4%)
American Express Corp.,
6.75%, 6/23/04 30,000 31,510
Associates Corp., N.A., 6.08%, 9/2/03 5,000 5,018
Associates Corp., N.A., 5.80%, 4/20/04 37,517 38,687
Bank of America Corp., 5.75%, 3/1/04 11,995 12,299
Bank of America Corp., 6.63%, 6/15/04 11,598 12,143
Bank of New York, 2.14%, 8/12/03 10,000 10,000
Bank of New York, 1.02%, 12/12/03 * 20,000 19,996
Bank of New York, 1.05%, 6/17/04 * 25,000 25,000
Bank of Nova Scotia, 1.03%, 9/25/03 * 25,000 24,999
Bank One Corp., 1.17%, 9/17/03 * 8,000 8,001
Bank One Corp., 1.24%, 9/26/03 * 33,000 33,014
Bank One Corp., 5.63%, 2/17/04 28,710 29,367
Bayerische Landesbank,
5.00%, 7/20/04 5,000 5,182
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
CORPORATE BONDS, CONTINUED
Candian Imperial Bank,
1.06%, 3/10/04 * $ 25,000 $ 24,999
Citigroup, Inc., 5.70%, 2/6/04 8,202 8,377
Credit Suisse First Boston,
1.31%, 10/6/03 * 18,840 18,845
Credit Suisse First Boston,
1.18%, 7/12/04 * 25,000 25,024
Deutsche Bank, 6.75%, 6/24/04 10,203 10,699
Deutsche Bank, 1.26%, 7/2/04 25,000 25,000
First Union National Bank,
1.50%, 6/24/04 * 25,000 25,049
General Electric Capital Corp.,
6.75%, 9/11/03 7,500 7,542
Goldman Sachs Group, LP,
1.37%, 9/29/03 * 10,000 10,004
Goldman Sachs Group, LP,
1.37%, 10/24/03 * 15,000 15,008
Goldman Sachs Group, LP,
1.31%, 1/9/04 * 10,000 10,010
IBM Corp., 5.25%, 12/1/03 4,000 4,054
International Lease Finance Corp.,
5.25%, 5/3/04 6,500 6,689
Mellon Funding Corp.,
5.75%, 11/15/03 21,835 22,089
Merrill Lynch & Co., 6.80%, 11/3/03 5,000 5,070
Merrill Lynch & Co., 1.39%, 1/29/04 * 20,000 20,029
Merrill Lynch & Co., 5.70%, 2/6/04 10,000 10,215
Merrill Lynch & Co., 6.07%, 4/6/04 20,000 20,634
Merrill Lynch & Co., 5.35%, 6/15/04 20,000 20,707
Merrill Lynch & Co., 1.24%, 8/11/04 * 15,000 15,000
Morgan Stanley Dean Witter,
1.51%, 9/19/03 * 10,000 10,001
Morgan Stanley Dean Witter,
5.63%, 1/20/04 17,000 17,337
Morgan Stanley Dean Witter,
1.60%, 2/9/04 * 15,000 15,018
National City Bank, 1.10%, 8/1/03 * 20,000 20,000
National City Bank, 1.15%, 3/11/04 * 7,500 7,503
Norwest Financial, Inc., 6.13%, 8/1/03 5,000 5,000
Norwest Financial, Inc., 5.38%, 9/30/03 10,791 10,853
Norwest Financial, Inc., 6.00%, 2/1/04 4,500 4,598
Norwest Financial, Inc., 6.63%, 7/15/04 2,000 2,106
Toyota Motor Credit Corp.,
5.63%, 11/13/03 7,000 7,081
Wachovia Corp., 6.93%, 10/15/03 15,000 15,158
Wachovia Corp., 6.70%, 6/21/04 21,150 22,190
Wal-Mart Stores, Inc., 4.38%, 8/1/03 25,150 25,150
Wal-Mart Stores, Inc., 3.25%, 9/29/03 8,100 8,120
Wal-Mart Stores, Inc., 6.55%, 8/10/04 7,250 7,643
Wells Fargo Co., 4.25%, 8/15/03 33,000 33,029
Wells Fargo Co., 6.63%, 7/15/04 16,935 17,817
-----------
TOTAL CORPORATE BONDS 788,864
-----------
Continued
5
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
DEMAND NOTES (13.2%)
American Healthcare Funding LLC,
1.10%, 5/1/27, (LOC: LaSalle Bank) * $ 6,005 $ 6,005
Atlas Industries, Inc., 1.14%, 6/1/10,
(LOC: National City Bank) * 5,680 5,680
Beavercreek Enterprises, 1.14%, 3/2/20,
(LOC: National City Bank) * 4,600 4,600
Buckeye Corrugated, Inc.,
1.20%, 10/1/17, (LOC: Key Bank) * 7,160 7,160
Capital One Funding Corp.,
1.15%, 7/2/18, (LOC: Bank One) * 1,015 1,015
Capital One Funding Corp.,
1.15%, 10/1/21, (LOC: Bank One) * 2,100 2,100
Capital One Funding Corp.,
1.15%, 1/4/27, (LOC: Bank One) * 11,351 11,351
Central Michigan Inns, 1.18%, 4/1/30,
(LOC: Michigan National Bank) * 2,165 2,165
Cornerstone Funding Corp.,
1.18%, 12/1/11, (LOC: SunTrust) * 8,860 8,860
Cornerstone Funding Corp.,
1.18%, 4/1/20, (LOC: SunTrust) * 5,000 5,000
Germain Properties, 1.15%, 3/1/31,
(LOC: Bank One) * 26,390 26,390
GTB Properties LLC, 1.20%, 7/1/23,
(LOC: National Australia Bank) * 5,040 5,040
Hannahville Indian Community,
1.11%, 6/1/13, (LOC: National City
Bank) * 7,410 7,410
Harry W. Albright, Jr., 1.23%, 5/1/21,
(LOC: National Australia Bank) * 5,725 5,725
HWP Co., Ltd. Project, 1.14%, 12/3/18,
(LOC: National City Bank) * 4,920 4,920
Idaho Associates LLC, 1.15%, 4/1/27,
(LOC: ABN/AMRO) * 6,250 6,250
Jackson 2000, 1.20%, 6/1/49, (LOC:
KeyBank) * 9,665 9,665
Kahala Senior Living Community,
1.20%, 11/15/33, (LOC: LaSalle
Bank) * 30,000 30,000
Landmark Medical LLC, 1.20%, 1/1/21,
(LOC: Bank One) * 9,480 9,480
Lexington Financial Services,
1.13%, 2/1/26, (LOC: LaSalle Bank) * 9,600 9,600
MARK-LYNN Foods, Inc., 1.15%, 6/1/11,
(LOC: Bank of America) * 6,000 6,000
MBE Investment Co., 1.20%, 3/1/50,
(LOC: National Australia Bank) * 5,000 5,000
Mr. K Enterprises, 1.20%, 9/1/16,
(LOC: National Australia Bank) * 7,200 7,200
Northside Christian Church,
1.20%, 4/1/30, (LOC: Bank One) * 7,310 7,310
PCI Paper Conversions, Inc.,
1.20%, 4/1/10, (LOC: KeyBank) * 3,025 3,025
Pittsburgh Technical Institute,
1.14%, 10/1/15, (LOC: National
City Bank) * 12,240 12,240
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
DEMAND NOTES, CONTINUED
PRD Finance LLC, 1.11%, 4/1/27,
(LOC: National City Bank) * $ 8,260 $ 8,260
Precision Tool and Die, 1.14%, 3/1/10,
(LOC: National City Bank) * 4,528 4,528
Royal Town Center LLC Project,
1.20%, 10/1/47, (LOC: Commerica
Bank) * 5,095 5,095
Second & Main, Ltd., 1.14%, 8/1/11,
(LOC: National City) * 2,955 2,955
Secor Realty, Inc., 1.14%, 4/1/20,
(LOC: National City Bank) * 10,665 10,665
SGS Tool Co., 1.14%, 12/1/12, (LOC:
Bank One) * 8,200 8,200
Sharonville Realty Enterprises,
1.20%, 4/1/20, (LOC: Bank One) * 11,340 11,340
Texas Disposal Systems, 1.15%, 5/1/12,
(LOC: Bank of America) * 1,800 1,800
Zeigler Realty LLC, 1.23%, 9/1/26,
(LOC: National City Bank) * 3,530 3,530
-----------
TOTAL DEMAND NOTES 265,564
-----------
MUNICIPAL BONDS (11.8%)
CALIFORNIA (3.8%)
Riverside County, 1.04%, 11/1/20 * 7,600 7,600
Sacramento, 1.04%, 7/1/20 * 17,490 17,490
Sacramento County, 1.04%, 7/1/22 * 32,430 32,430
San Jose Redevelopment Agency
Revenue, Merged Area, Series G,
1.10%, 8/1/29 * 19,000 19,000
-----------
76,520
-----------
GEORGIA (1.0%)
Brooks County Development Authority,
Industrial Development Revenue,
Langboard Inc. Project,
1.10%, 4/1/18 * 10,000 10,000
Columbus Development Authority,
Industrial Revenue, Litho-Krome
Project, 1.13%, 8/1/22 * 10,125 10,125
-----------
20,125
-----------
ILLINOIS (0.7%)
Chicago, Series B, 1.15%, 1/1/19 * 13,830 13,830
-----------
INDIANA (1.6%)
Ball State University, 1.10%, 9/1/31 * 7,000 7,000
Health Facilities Financing Authority,
Hospital Revenue, Community
Foundation of Northwest Indiana,
Series B, 1.20%, 8/1/25 * 25,075 25,075
-----------
32,075
-----------
IOWA (0.6%)
Dallas County Industrial Development
Revenue, Sioux City Brick & Tile,
1.20%, 9/1/21 * 11,480 11,480
-----------
Continued
6
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
KANSAS (0.4%)
Park City Industrial Revenue, Hayes
Co., Inc., 1.10%, 9/15/16 * $ 7,875 $ 7,875
-----------
MICHIGAN (0.2%)
Hospital Association Financial Corp.,
1.20%, 11/1/30 * 4,750 4,750
-----------
NEBRASKA (0.6%)
Omaha Special Obligation, Riverfront
Redevelopment, 1.20%, 2/1/26 * 11,765 11,765
-----------
NEW YORK (0.6%)
Housing Finance Agency, 1.08%, 6/1/33 * 7,800 7,800
Oswego County New York Development
Agency, Facilities Revenue,
1.20%, 6/1/24 * 4,190 4,190
-----------
11,990
-----------
NORTH CAROLINA (1.0%)
Roman Catholic Diocese, Series A,
1.15%, 6/1/18 * 19,705 19,705
-----------
NORTH DAKOTA (0.4%)
Ward County Health Care Facilities
Revenue, 1.10%, 7/1/31 * 7,400 7,400
-----------
OHIO (0.2%)
Cleveland-Cuyahoga County, Port
Authority Revenue, CBT Project,
1.20%, 6/1/31 * 4,500 4,500
-----------
WASHINGTON (0.2%)
Housing Finance Community,
Multifamily Revenue, Monticello
Park Project, 1.15%, 8/1/26 * 4,190 4,190
-----------
WISCONSIN (0.5%)
Sheboygan Area School District,
1.90%, 12/5/03 10,630 10,630
-----------
TOTAL MUNICIPAL BONDS 236,835
-----------
U.S. GOVERNMENT AGENCIES (4.0%)
FANNIE MAE (1.4%)
0.92%, 9/24/03 ** 12,000 11,984
1.40%, 4/19/04 17,000 17,000
-----------
28,984
-----------
FEDERAL HOME LOAN BANK (1.8%)
5.38%, 1/5/04 5,680 5,778
1.40%, 6/2/04 15,000 15,000
1.25%, 6/18/04 16,000 16,000
-----------
36,778
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ -----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN MORTGAGE CORPORATION (0.8%)
5.25%, 2/13/04 $ 9,750 $ 9,954
3.50%, 4/19/04 5,000 5,087
-----------
15,041
-----------
TOTAL U.S. GOVERNMENT AGENCIES 80,803
-----------
REPURCHASE AGREEMENTS (9.3%)
State Street, 1.06%, 8/1/03
(Proceeds at maturity $31,357, Collateralized
by various U.S. Government
Agency and U.S.
Treasury securities) 31,356 31,356
UBS Investment Bank, 1.11%, 8/1/03
(Proceeds at maturity $155,005, Collateralized
by various U.S.
Government Agency securities) 155,000 155,000
-----------
TOTAL REPURCHASE AGREEMENTS 186,356
-----------
MONEY MARKETS (4.1%)
Aim Funds Liquid Assets Portfolio -
Institutional Class 65,331,673 65,332
Goldman Sachs Financial Square Prime
Obligations Fund 17,772,791 17,773
-----------
TOTAL MONEY MARKETS 83,105
-----------
TOTAL INVESTMENTS (COST $1,998,534) (a) - 99.7% 1,998,534
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 6,384
-----------
NET ASSETS - 100.0% $2,004,918
===========
See notes to schedules of portfolio investments
and notes to financial statements
7
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
CERTIFICATES OF DEPOSIT (1.3%)
BNP Paribas Yankee CD,
1.03%, 6/23/04 * $ 10,000 $ 9,998
-----------
TOTAL CERTIFICATES OF DEPOSIT 9,998
-----------
COMMERCIAL PAPER (14.3%)
Barclays U.S. Funding Corp.,
0.95%, 9/22/03 ** 1,300 1,298
BASF Aktiengesellschaft,
0.94%, 8/7/03 ** 4,000 3,999
Chevron Corp., 1.20%, 9/3/03 ** 10,000 9,990
Credit Suisse First Boston,
1.04%, 8/11/03 ** 10,000 9,998
E. I. du Pont de Nemours & Co.,
1.20%, 8/21/03 ** 1,700 1,699
General Electric Capital Corp.,
1.28%, 8/25/03 ** 5,000 4,996
Goldman Sachs Group, LP,
1.03%, 8/5/03 ** 5,000 4,999
Goldman Sachs Group, LP,
0.92%, 11/17/03 ** 5,000 4,986
Nestle Capital Corp., 1.14%, 8/1/03 ** 4,600 4,600
Prudential Funding Corp.,
1.04%, 8/20/03 ** 5,000 4,997
Purdue University, Indiana, Research
Foundation, 1.34%, 9/10/03 4,000 4,000
Shell Financial, 0.94%, 8/14/03 ** 8,000 7,997
Shell Financial, 0.95%, 8/19/03 ** 3,725 3,723
Societe Generale, 1.20%, 8/7/03 ** 10,000 9,998
South Snohomish Public Facilities
District, 1.27%, 11/6/03 8,600 8,600
Toronto Dominion, 1.19%, 9/24/03 ** 5,000 4,991
UBS Financial, Inc., 0.95%, 8/4/03 ** 6,469 6,468
UBS Financial, Inc., 1.05%, 8/27/03 ** 7,000 6,995
UBS Financial, Inc., 1.02%, 9/18/03 ** 4,850 4,843
-----------
TOTAL COMMERCIAL PAPER 109,177
-----------
CORPORATE BONDS (42.2%)
American Express Corp.,
1.15%, 12/17/03 * 8,000 8,003
American Express Corp.,
6.75%, 6/23/04 7,148 7,502
Associates Corp., N.A., 6.88%, 8/1/03 1,000 1,000
Associates Corp., N.A., 5.75%, 10/15/03 9,484 9,569
Associates Corp., N.A., 5.80%, 4/20/04 5,000 5,156
Bank of America Corp., 5.75%, 3/1/04 9,933 10,185
Bank of America Corp., 6.63%, 6/15/04 4,740 4,963
Bank of New York, 1.02%, 12/12/03 * 5,000 4,999
Bank of New York, 1.05%, 6/17/04 * 10,500 10,500
Bank of Nova Scotia, 1.03%, 9/25/03 * 8,500 8,500
Bank One Corp., 1.24%, 9/26/03 * 8,000 8,003
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
CORPORATE BONDS, CONTINUED
Bank One Corp., 1.46%, 3/8/04 * $ 18,000 $ 18,026
Bank One Corp., 1.32%, 5/10/04 * 1,400 1,402
Bayerische Landesbank,
5.00%, 7/20/04 2,100 2,177
BP America, Inc., 5.00%, 12/16/03 3,650 3,704
Canadian Imperial Bank,
1.06%, 3/10/04 * 10,000 10,000
Credit Suisse First Boston,
1.48%, 8/25/03 * 2,550 2,550
Credit Suisse First Boston,
1.31%, 10/6/03 * 8,000 8,002
Credit Suisse First Boston,
1.18%, 7/12/04 * 5,000 5,005
First Union National Bank,
1.36%, 3/16/04 * 7,500 7,514
General Electric Capital Corp.,
6.75%, 9/11/03 3,840 3,860
General Electric Capital Corp.,
6.81%, 11/3/03 3,835 3,884
General Electric Capital Corp.,
1.36%, 11/20/03 * 2,000 2,000
General Electric Capital Corp.,
5.38%, 4/23/04 9,343 9,624
Goldman Sachs Group, LP,
1.37%, 9/29/03 * 5,000 5,002
Goldman Sachs Group, LP,
1.31%, 1/9/04 * 5,000 5,005
IBM Corp., 1.19%, 9/8/03 * 6,000 6,001
IBM Corp., 5.37%, 9/22/03 6,500 6,538
IBM Corp., 5.10%, 11/10/03 1,000 1,011
IBM Corp., 5.25%, 12/1/03 3,030 3,069
IBM Corp., 5.63%, 4/12/04 3,448 3,549
International Lease Finance Corp.,
6.75%, 11/3/03 5,725 5,798
International Lease Finance Corp.,
5.50%, 6/7/04 9,050 9,339
Mellon Funding Corp., 6.00%, 3/1/04 1,770 1,821
Merrill Lynch & Co., 5.88%, 1/15/04 11,100 11,321
Merrill Lynch & Co., 1.64%, 5/21/04 * 3,735 3,743
Merrill Lynch & Co., 5.55%, 5/21/04 3,000 3,097
Merrill Lynch & Co., 5.35%, 6/15/04 7,295 7,553
Morgan Stanley Dean Witter,
1.60%, 2/9/04 * 6,020 6,027
National Australia Bank,
1.35%, 11/7/03 * 15,000 15,005
National City Bank, 1.18%, 2/23/04 * 10,000 10,006
Northern Trust Co., 6.63%, 10/1/03 7,500 7,564
Norwest Financial, Inc.,
5.38%, 9/30/03 1,845 1,856
Procter & Gamble Co.,
5.25%, 9/15/03 10,330 10,376
Toyota Motor Credit Corp.,
5.63%, 11/13/03 7,937 8,031
Continued
8
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
CORPORATE BONDS, CONTINUED
U.S. Bancorp, 1.34%, 9/15/03 * $ 2,500 $ 2,501
U.S. Bancorp, 6.50%, 6/15/04 1,895 1,984
U.S. Bank, N.A., 1.16%, 11/14/03 * 3,000 3,001
U.S. Bank, N.A., 1.26%, 4/13/04 * 5,000 5,005
Wachovia Corp., 6.93%, 10/15/03 3,000 3,030
Wal-Mart Stores, Inc., 4.38%, 8/1/03 7,400 7,400
Wal-Mart Stores, Inc., 3.25%, 9/29/03 5,000 5,016
Wells Fargo Co., 4.25%, 8/15/03 3,400 3,403
Wells Fargo Financial, 5.45%, 5/3/04 4,150 4,280
-----------
TOTAL CORPORATE BONDS 323,460
-----------
DEMAND NOTES (7.8%)
Capital One Funding, 1.15%, 8/2/21,
(LOC: Bank One) * 5,258 5,258
Capital One Funding, 1.15%, 4/1/26,
(LOC: Bank One) * 12,807 12,807
Jefferson Land Development,
1.14%, 10/1/16, (LOC: National
City Bank) * 1,090 1,090
Kahala Senior Living Community,
1.20%, 11/15/33, (LOC: LaSalle
Bank) * 10,750 10,750
MBE Investment Co., LLC, 1.20%,
2/1/51, (LOC: Comerica Bank) * 2,100 2,100
MCMC POB III-Mount Carmel
Partnership Project, 1.14%, 8/1/14,
(LOC: National City Bank) * 1,410 1,410
New Belgium Brewing Co.,
1.20%, 7/1/15, (LOC: KeyBank) * 4,820 4,820
SDB Private Residence, 1.10%, 3/1/28,
(LOC: US Bank) * 16,365 16,365
Second & Main, Ltd., 1.14%, 8/1/11,
(LOC: National City Bank) * 5,075 5,075
-----------
TOTAL DEMAND NOTES 59,675
-----------
MUNICIPAL BONDS (19.2%)
ARIZONA (0.5%)
Tucson Airport Authority, Inc., 1.15%,
12/1/18 * 3,635 3,635
-----------
CALIFORNIA (3.5%)
ABAG Finance Authority For
Nonprofit Corps., Multifamily Revenue,
1.10%, 9/15/32 * 2,575 2,575
ABAG Finance Authority For Nonprofit
Corps., Multifamily Revenue, 1.10%,
5/15/33 * 2,500 2,500
Community Development Authority,
1.15%, 5/15/35 * 3,145 3,145
Sacramento, 1.04%, 7/1/20 * 7,220 7,220
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
Sacramento County Housing Authority,
Multifamily Revenue, Natomas Park
Apartments, Series B,
1.25%, 7/15/35 * $ 2,250 $ 2,250
San Jose Financing Authority Lease
Revenue, Hayes Mansion, Phase B,
1.04%, 7/1/24 * 8,000 8,000
Statewide Community Development
Authority, Multifamily Revenue,
Series X-T, 1.15%, 10/15/32 * 2,000 2,000
-----------
27,690
-----------
COLORADO (0.6%)
Denver City & County Airport Revenue,
Series D, 1.10%, 11/15/05 * 4,500 4,500
-----------
FLORIDA (0.2%)
Lee County, 1.15%, 10/1/22 * 1,155 1,155
-----------
GEORGIA (2.3%)
Atlanta Urban Residential Finance
Authority, 1.17%, 1/1/23 * 700 700
Augusta Housing Authority,
Multifamily Revenue, 1.25%, 5/15/33 * 500 500
Municipal Gas Authority,
1.13%, 2/1/15 * 16,250 16,250
-----------
17,450
-----------
ILLINOIS (0.4%)
Evanston, Maple Street Parking Facility,
1.10%, 12/1/21 * 2,700 2,700
-----------
INDIANA (0.1%)
Indianapolis Economic Development,
Multifamily Housing Revenue,
Series B, 1.20%, 11/1/36 * 1,000 1,000
-----------
IOWA (0.7%)
Finance Authority Retirement
Community, 1.20%, 12/1/20 * 5,315 5,315
-----------
KENTUCKY (1.8%)
Bardstown Industrial Revenue,
1.18%, 6/1/24 * 7,950 7,950
Boone County Industrial Revenue,
1.25%, 6/1/23 * 5,700 5,700
-----------
13,650
-----------
LOUISIANA (0.1%)
Baton Rouge, 2.00%, 1/15/04 565 566
-----------
Continued
9
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN (0.5%)
Marquette County Economic
Development Corp., Series B,
1.20%, 6/1/07 * $ 500 $ 500
Strategic Fund, Limited Obligation
Revenue, Carpenter Enterprises,
1.15%, 10/1/05 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Phipps Emmett Associates
LLC, 1.20%, 11/1/23 * 900 900
Strategic Fund, Limited Obligation
Revenue, Waterland Battle Creek
Property, Series B, 1.20%, 6/1/25 * 1,550 1,550
-----------
3,950
-----------
MINNESOTA (0.7%)
Plymouth, 1.15%, 4/1/12 * 1,595 1,595
St. Paul Port Authority District,
1.20%, 3/1/22 * 3,655 3,655
-----------
5,250
-----------
MISSOURI (1.0%)
Regal Convention & Sports Complex
Authority, 1.42%, 8/15/04 4,115 4,115
St. Louis Airport Revenue,
2.00%, 1/1/04 1,360 1,363
St. Louis County, Regal Convention &
Sports Complex Authority,
1.42%, 8/15/04 2,165 2,165
-----------
7,643
-----------
NEW MEXICO (0.3%)
Albuquerque, KTECH Corp. Project,
1.20%, 11/1/22 * 2,000 2,000
-----------
NEW YORK (1.4%)
Hornell Industrial Development Agency,
Alstom Transportation, Inc.,
1.20%, 11/1/21 * 2,650 2,650
State Housing Finance Agency,
1.08%, 9/15/07 * 7,700 7,700
-----------
10,350
-----------
NORTH CAROLINA (0.8%)
Roman Catholic Diocese, 1.15%,
6/1/18 * 1,585 1,585
Roman Catholic Diocese, Series A,
1.15%, 6/1/18 * 4,800 4,800
-----------
6,385
-----------
OHIO (1.5%)
Cleveland Urban Renewal Revenue,
2.25%, 10/30/03 2,125 2,125
Trumbull County, Eliwood Engineered
Casting, 1.10%, 12/1/06 * 6,500 6,500
Upper Arlington, Series B,
2.25%, 11/20/03 3,165 3,169
-----------
11,794
-----------
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
PENNSYLVANIA (1.3%)
Allegheny County, Industrial
Development Authority Revenue,
1.14%, 5/1/15 * $ 2,700 $ 2,700
Berks County Industrial Development
Authority Revenue, 1.22%, 7/1/16 * 1,805 1,805
Montgomery County, 2.13%, 11/1/03 (c) 5,500 5,500
-----------
10,005
-----------
TEXAS (0.4%)
Alamo Heights Higher Education
Revenue, 1.20%, 4/1/07 * 3,080 3,080
-----------
UTAH (0.6%)
Tooele City Industrial Development
Revenue, Series A, 1.15%, 10/1/22 * 4,800 4,800
-----------
WASHINGTON (0.1%)
Housing Finance Community
Multifamily Revenue, Summer Ridge,
Series B, 1.20%, 12/1/29 * 1,005 1,005
-----------
WISCONSIN (0.4%)
Caledonia Industrial Development
Revenue, Calendonia Properties, LLC,
1.20%, 5/1/19 * 2,150 2,150
Neenah Industrial Development Revenue,
Galloway Co., 1.20%, 5/1/19 * 670 670
-----------
2,820
-----------
TOTAL MUNICIPAL BONDS 146,743
-----------
U.S. GOVERNMENT AGENCIES (3.4%)
FANNIE MAE (1.3%)
0.92%, 9/24/03 ** 10,000 9,986
-----------
FEDERAL HOME LOAN BANK (2.0%)
3.13%, 11/14/03 2,600 2,612
3.38%, 5/14/04 2,900 2,953
4.88%, 5/14/04 5,000 5,143
1.30%, 6/8/04 4,500 4,500
-----------
15,208
-----------
FREDDIE MAC (0.1%)
3.05%, 11/28/03 1,000 1,007
-----------
TOTAL U.S. GOVERNMENT AGENCIES 26,201
-----------
REPURCHASE AGREEMENTS (7.7%)
State Street, 1.06%, 8/1/03
(Proceeds at maturity $18,741,
Collateralized by various U.S.
Government Agency and U.S.
Treasury securities) 18,740 18,740
Continued
10
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ -----------
REPURCHASE AGREEMENTS, CONTINUED
UBS Investment Bank, 1.11%, 8/1/03
(Proceeds at maturity $40,001,
Collateralized by various U.S.
Government Agency securities) 40,000 40,000
-----------
TOTAL REPURCHASE AGREEMENTS 58,740
-----------
MONEY MARKETS (3.8%)
Aim Funds Liquid Assets Portfolio -
Institutional Class 27,939,453 $ 27,939
Goldman Sachs Financial Square Prime
Obligations Fund 1,528,981 1,529
-----------
TOTAL MONEY MARKETS 29,468
-----------
TOTAL INVESTMENTS (COST $763,462) (a) - 99.7% 763,462
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 2,561
-----------
NET ASSETS - 100.0% $ 766,023
===========
See notes to schedules of portfolio investments
and notes to financial statements
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
U.S. GOVERNMENT AGENCIES (74.4%)
FANNIE MAE (21.9%)
1.26%, 8/6/03 ** $ 10,000 $ 9,998
1.24%, 8/13/03 ** 25,690 25,682
4.00%, 8/15/03 11,250 11,261
0.93%, 8/22/03 ** 15,300 15,292
5.91%, 8/25/03 2,400 2,407
1.18%, 8/27/03 ** 15,000 14,988
0.93%, 9/3/03 ** 2,700 2,698
0.98%, 9/17/03 ** 7,475 7,465
0.92%, 9/24/03 ** 8,000 7,989
1.02%, 11/5/03 ** 4,740 4,727
4.75%, 11/14/03 5,369 5,423
5.13%, 2/13/04 11,794 12,041
4.75%, 3/15/04 1,929 1,969
3.63%, 4/15/04 5,000 5,089
1.40%, 4/19/04 3,000 3,000
3.00%, 6/15/04 4,500 4,576
-----------
134,605
-----------
FEDERAL FARM CREDIT BANK (7.5%)
5.40%, 1/23/04 2,250 2,294
2.40%, 1/27/04 4,000 4,021
1.00%, 2/3/04 * 20,000 19,999
0.99%, 4/7/04 * 20,000 19,994
-----------
46,308
-----------
FEDERAL HOME LOAN BANK (18.8%)
1.01%, 8/15/03 ** 16,285 16,279
4.13%, 8/15/03 6,950 6,956
5.68%, 8/18/03 3,500 3,507
5.63%, 9/2/03 6,000 6,020
5.13%, 9/15/03 10,410 10,458
5.44%, 10/15/03 10,000 10,083
2.50%, 11/14/03 3,300 3,313
6.38%, 11/14/03 4,675 4,744
5.38%, 1/5/04 7,615 7,750
3.75%, 2/13/04 4,000 4,052
5.40%, 3/1/04 5,000 5,125
1.36%, 3/5/04 5,000 5,001
5.50%, 3/22/04 2,000 2,053
3.75%, 4/15/04 3,380 3,440
4.88%, 4/16/04 3,400 3,487
4.88%, 5/14/04 10,000 10,285
1.30%, 6/8/04 2,000 2,000
3.38%, 6/15/04 1,990 2,028
1.25%, 6/18/04 6,000 6,000
4.75%, 6/28/04 3,435 3,547
-----------
116,128
-----------
FREDDIE MAC (19.6%)
0.99%, 8/1/03 ** 7,050 7,050
1.14%, 8/22/03 ** 5,300 5,296
1.17%, 8/28/03 ** 10,000 9,991
1.05%, 8/29/03 ** 20,000 19,984
1.11%, 9/4/03 * 20,905 20,905
3.50%, 9/15/03 1,539 1,543
1.06%, 9/30/03 ** 10,000 9,982
1.03%, 10/2/03 ** 5,000 4,991
Continued
11
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ -----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
1.05%, 11/3/03 ** $ 10,000 $ 9,973
1.01%, 11/7/03 ** 5,000 4,986
3.25%, 12/15/03 11,413 11,493
3.25%, 1/15/04 1,150 1,160
5.00%, 1/15/04 5,000 5,083
1.11%, 6/16/04 ** 5,000 4,951
6.51%, 7/1/04 3,000 3,146
-----------
120,534
-----------
STUDENT LOAN MARKETING ASSOCIATION (6.6%)
1.31%, 8/15/03 * 15,000 15,002
1.01%, 9/18/03 * 15,000 15,000
1.04%, 12/18/03 * 10,000 10,000
3.38%, 7/15/04 1,000 1,020
-----------
41,022
-----------
TOTAL U.S. GOVERNMENT AGENCIES 458,597
-----------
REPURCHASE AGREEMENTS (22.7%)
State Street, 1.06%, 8/1/03
(Proceeds at maturity $30,235,
Collateralized by various U.S.
Government Agency and
U.S. Treasury securities) 30,234 30,234
UBS Investment Bank, 1.11%, 8/1/03
(Proceeds at maturity $110,003,
Collateralized by various U.S.
Government Agency securities) 110,000 110,000
-----------
TOTAL REPURCHASE AGREEMENTS 140,234
-----------
MONEY MARKETS (2.6%)
AIM Treasury Money Market Fund 16,348,397 16,348
-----------
TOTAL MONEY MARKETS 16,348
-----------
TOTAL INVESTMENTS (COST $615,179) (a) - 99.7% 615,179
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 1,820
-----------
NET ASSETS - 100.0% $ 616,999
===========
See notes to schedules of portfolio investments
and notes to financial statements
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
U.S. GOVERNMENT AGENCIES (97.3%)
FEDERAL FARM CREDIT BANK (12.1%)
1.00%, 10/2/03 ** $ 10,000 $ 9,983
4.80%, 12/12/03 4,125 4,177
1.00%, 2/3/04 * 20,000 20,000
1.06%, 2/27/04 ** 1,700 1,690
0.99%, 4/7/04 * 15,810 15,805
3.65%, 4/19/04 3,000 3,052
-----------
54,707
-----------
FEDERAL HOME LOAN BANK (63.1%)
1.00%, 8/1/03 ** 20,000 20,000
0.99%, 8/6/03 ** 15,000 14,998
0.99%, 8/8/03 ** 10,000 9,998
1.00%, 8/13/03 ** 5,018 5,016
1.80%, 8/14/03 ** 4,300 4,297
0.90%, 8/15/03 ** 13,400 13,395
6.88%, 8/15/03 6,570 6,584
1.00%, 8/20/03 ** 10,000 9,995
1.01%, 8/22/03 ** 15,000 14,991
1.16%, 8/27/03 ** 10,000 9,992
1.02%, 8/28/03 ** 15,000 14,989
0.98%, 9/5/03 ** 4,000 3,996
1.02%, 9/8/03 * 10,000 10,000
1.02%, 9/12/03 ** 2,000 1,998
5.13%, 9/15/03 3,010 3,025
0.88%, 9/19/03 * 9,655 9,654
5.60%, 9/22/03 1,500 1,508
5.44%, 10/15/03 3,500 3,529
5.19%, 10/20/03 9,650 9,739
3.13%, 11/14/03 6,500 6,534
6.38%, 11/14/03 3,165 3,210
1.11%, 1/2/04 * 12,995 12,993
5.38%, 1/5/04 5,000 5,091
1.00%, 1/6/04 * 15,000 14,998
5.13%, 1/22/04 1,030 1,048
5.55%, 1/27/04 3,000 3,061
3.75%, 2/13/04 3,000 3,039
5.40%, 2/24/04 3,000 3,070
1.36%, 3/5/04 2,500 2,500
1.25%, 4/15/04 7,000 7,000
3.75%, 4/15/04 3,500 3,567
4.88%, 4/16/04 11,460 11,760
3.38%, 5/14/04 4,660 4,743
1.04%, 6/9/04 * 10,000 10,000
6.23%, 6/17/04 2,700 2,823
1.25%, 6/18/04 3,000 3,000
1.27%, 6/25/04 5,000 5,000
4.75%, 6/28/04 9,020 9,318
1.17%, 8/2/04 5,000 5,000
-----------
285,459
-----------
Continued
12
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ -----------
U.S. GOVERNMENT AGENCIES, CONTINUED
STUDENT LOAN MARKETING ASSOCIATION (22.1%)
0.96%, 9/13/03 * $ 75,000 $ 75,000
1.01%, 9/18/03 * 15,000 15,000
1.04%, 12/18/03 * 10,000 10,000
-----------
100,000
-----------
TOTAL U.S. GOVERNMENT AGENCIES 440,166
-----------
MONEY MARKETS (2.5%)
Goldman Sachs Financial Square
Federal Fund 11,269,079 11,269
-----------
TOTAL MONEY MARKETS 11,269
-----------
TOTAL INVESTMENTS (COST $451,435) (a) - 99.8% 451,435
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 1,062
-----------
NET ASSETS - 100.0% $ 452,497
===========
See notes to schedules of portfolio investments
and notes to financial statements
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ -----------
TREASURY BILLS ** (13.3%)
1.17%, 8/7/03 $ 20,000 $ 19,996
1.18%, 8/7/03 20,000 19,996
1.08%, 9/25/03 20,000 19,967
1.18%, 10/9/03 20,000 19,955
1.18%, 10/16/03 20,000 19,950
1.05%, 11/6/03 35,000 34,902
1.07%, 11/20/03 15,000 14,950
1.10%, 11/20/03 10,000 9,967
0.93%, 12/4/03 15,000 14,952
0.94%, 12/4/03 15,000 14,952
0.93%, 1/8/04 20,000 19,918
0.94%, 1/8/04 10,000 9,958
-----------
TOTAL TREASURY BILLS 219,463
-----------
TREASURY NOTES (18.4%)
5.75%, 8/15/03 50,000 50,078
2.75%, 9/30/03 20,000 20,046
2.75%, 10/31/03 35,000 35,113
3.25%, 12/31/03 40,000 40,317
3.00%, 1/31/04 25,000 25,213
3.63%, 3/31/04 25,000 25,396
3.38%, 4/30/04 45,000 45,699
3.25%, 5/31/04 15,000 15,262
2.88%, 6/30/04 35,000 35,603
6.00%, 8/15/04 10,000 10,502
-----------
TOTAL TREASURY NOTES 303,229
-----------
REPURCHASE AGREEMENTS (b) (64.8%)
ABN AMRO, 1.04%, 8/1/03 75,000 75,000
Banc One, 1.05%, 8/1/03 75,000 75,000
Barclays Capital, 1.04%, 8/1/03 160,000 160,000
Bear Stearns, 1.04%, 8/1/03 75,000 75,000
Credit Suisse First Boston,
1.04%, 8/1/03 85,000 85,000
Deutsche Bank, 1.05%, 8/1/03 150,000 150,000
Nesbitt Burns, 1.04%, 8/1/03 75,000 75,000
Societe Generale, 1.04%, 8/1/03 100,000 100,000
State Street, 1.00%, 8/1/03 29,519 29,519
UBS Investment Bank, 1.05%, 8/1/03 240,000 240,001
-----------
TOTAL REPURCHASE AGREEMENTS 1,064,520
-----------
MONEY MARKETS (3.4%)
AIM Treasury Money Market Fund 55,797,182 55,797
-----------
TOTAL MONEY MARKETS 55,797
-----------
TOTAL INVESTMENTS (COST $1,643,009) (a) - 99.9% 1,643,009
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 1,896
-----------
NET ASSETS - 100.0% $ 1,644,905
===========
See notes to schedules of portfolio investments
and notes to financial statements
13
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
COMMERCIAL PAPER (6.7%)
State, 0.95%, 10/14/03 $ 2,000 $ 2,000
Builders, 1.05%, 8/21/03 10,000 10,000
University of Michigan,
1.40%, 8/26/03 2,000 2,000
University of Michigan,
0.80%, 9/2/03 2,500 2,500
-----------
TOTAL COMMERCIAL PAPER 16,500
-----------
MUNICIPAL BONDS (92.6%)
ALASKA (2.3%)
Valdez Marine Term Revenue, Exxon
Mobil Project, 0.85%, 12/1/29 * 5,800 5,800
-----------
MICHIGAN (86.7%)
Allen Park Public Schools,
2.00%, 5/1/04 1,575 1,586
Bond Authority Revenue, Government
Loan Program, 7.00%, 11/1/03 1,500 1,521
Bond Authority Revenue, Series C1,
2.25%, 8/22/03 5,000 5,003
Building Authority Revenue,
4.25%, 10/15/03 750 755
Building Authority Revenue, Series I,
6.25%, 10/1/03 4,800 4,840
Central Michigan University,
3.00%, 10/1/03 500 501
Chippewa Valley Schools,
2.00%, 5/1/04 3,675 3,698
Clarkston Community Schools,
2.00%, 5/1/04 1,975 1,989
Detroit Economic Development Corp.,
GO, 0.85%, 5/1/09 * 6,330 6,330
Detroit Waterfront Reclamation,
Series C, 1.00%, 5/1/09 * 7,405 7,407
Detroit, GO, 5.00%, 4/1/04 1,000 1,026
Dexter Community Schools,
3.00%, 5/1/04 1,005 1,019
Eastern Michigan University,
0.90%, 6/1/27 * 2,900 2,900
Environmental Protection Program, GO,
5.00%, 11/1/03 1,985 2,002
Farmington Hills Economic
Development Corp., Brookfield
Building Association,
0.91%, 11/1/10 * 260 260
Farmington Hills Economic
Development Corp., Marketing
Displays, (AMT), 1.65%, 9/1/03 * 995 995
Ferndale, 2.00%, 4/1/04 1,310 1,318
Flushing Community Schools,
2.00%, 5/1/04 100 101
Fremont Public Schools,
2.50%, 5/1/04 250 253
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Genesee County, 2.50%, 5/1/04 $ 455 $ 460
Genesee County Economic
Development Corp., Rawcar
Group, (AMT), 0.99%, 5/1/20 * 2,535 2,535
Grand Rapids Building Authority,
1.20%, 4/1/04 745 745
Grand Valley State University, Series B,
0.84%, 6/1/27 * 7,000 7,000
Holly Area Schools, 2.00%, 5/1/04 475 479
Hospital Finance Authority Revenue
Balmoral, Inc., 1.75%, 9/1/16 * 555 555
Hospital Finance Authority,
0.85%, 5/1/30 * 595 595
Housing Development Authority, Hunt
Club Apartments, 0.95%, 7/15/35 * 1,000 1,000
Housing Development Authority,
Limited Obligation Revenue, Pine
Ridge, 0.90%, 10/1/07 * 1,525 1,525
Housing Development Authority,
0.92%, 1/1/29 * 3,900 3,900
Housing Development Authority,
Rental Housing Revenue, Series B,
0.83%, 4/1/19 * 905 905
Housing Development Authority, River
Place Apartments, 0.92%, 6/1/18 * 4,840 4,840
Housing Development Authority,
Series A, 0.90%, 4/1/37 * 3,500 3,500
Housing Development Authority,
Series C, 0.83%, 4/1/21 * 4,015 4,015
Jackson County Economic Development
Corp., Vista Grande Villa,
0.90%, 11/1/31 * 3,800 3,800
Job Development, East Lansing,
1.00%, 12/1/14 * 300 300
Lake Orion Community School District,
GO, 6.20%, 5/1/04 2,000 2,075
Lake St. Clair, Shores Drainage
Distribution, GO, Series B,
0.95%, 10/1/04 * 1,665 1,665
Lansing Economic Development Corp.,
LGH Office Building, (AMT),
1.65%, 2/15/07 * 550 550
Leelanau County Economic Development
Corp., American Mutual
Insurance Co., 1.30%, 12/15/03 * 950 950
Lenawee County Economic
Development Corp., Rima
Manufacturing Co. Project,
(AMT), 1.05%, 8/1/06 * 1,815 1,815
Macomb County Community College,
4.00%, 5/1/04 465 474
Mancelona Area Water Sewer Authority
Water Supply System Revenue,
0.90%, 4/1/21 * 670 670
Continued
14
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Marquette County Economic
Development Corp., Pioneer
Labs, Inc., Series A, (AMT),
1.10%, 6/1/12 * $ 1,000 $ 1,000
Municipal Bond Authority Revenue,
1.50%, 8/28/03 1,500 1,500
Newaygo Public Schools,
5.00%, 5/1/04 250 257
Novi, GO, 2.75%, 8/1/03 265 265
Novi, GO, 2.75%, 10/1/03 690 692
Oakland County Economic
Development Corp., Limited
Obligation Revenue, Moody Family
Ltd., (AMT), 1.10%, 9/1/12 * 2,300 2,300
Oakland County Economic
Development Corp., North
America, (AMT), 1.05%, 7/1/18 * 2,300 2,300
Pontiac General Builders Authority,
5.00%, 4/1/04 500 513
Rochester Hills Economic Development
Corp., BRG Associates,
1.95%, 12/1/03 110 110
Rochester Hills, GO, 2.00%, 11/1/03 850 852
St. Clair Shores Economic Development
Corp., Borman's, Inc., (AMT),
1.60%, 10/15/03 * 650 650
Sterling Heights Economic Development
Corp., Sterling Shopping Center,
0.90%, 12/1/10 * 900 900
Strategic Fund, Atmosphere Annealing,
(AMT), 0.99%, 12/1/17 * 1,210 1,210
Strategic Fund, Automatic Spring,
(AMT), 1.10%, 9/1/10 * 1,800 1,800
Strategic Fund, Banks Hardwoods, Inc.,
(AMT), 1.05%, 7/1/12 * 1,077 1,077
Strategic Fund, Baron Drawn Steel,
0.99%, 12/1/06 * 500 500
Strategic Fund, Biewer of Lansing,
(AMT), 1.05%, 5/1/19 * 1,740 1,740
Strategic Fund, Brazing Concepts Co.,
(AMT), 1.10%, 9/1/18 * 2,900 2,900
Strategic Fund, C-Tec, Inc., (AMT),
0.95%, 10/1/11 * 2,000 2,000
Strategic Fund, Camac LLC, (AMT),
0.95%, 8/1/28 * 500 500
Strategic Fund, Cayman Chemical,
(AMT), 0.99%, 6/1/28 * 2,525 2,525
Strategic Fund, Donnelly Corp.,
Series A, (AMT), 1.05%, 3/1/10 * 2,500 2,500
Strategic Fund, Donnelly Corp.,
Series B, (AMT), 1.20%, 10/1/03 * 2,500 2,500
Strategic Fund, E & L Meat Co.,
(AMT), 1.10%, 3/1/29 * 2,375 2,375
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Enviromental Powder
Co., (AMT), 1.01%, 7/1/22 * $ 180 $ 180
Strategic Fund, Equad, (AMT),
0.99%, 6/1/28 * 1,000 1,000
Strategic Fund, Fitz-Land LLC, (AMT),
0.99%, 8/1/25 * 2,850 2,850
Strategic Fund, Fleet Engineers Project,
(AMT), 1.05%, 9/1/09 * 1,000 1,000
Strategic Fund, Forest City Technologies,
(AMT), 0.99%, 9/1/15 * 2,465 2,465
Strategic Fund, Frederick Wolfgang,
(AMT), 1.01%, 9/1/26 * 845 845
Strategic Fund, Glastender, Inc., (AMT),
1.10%, 9/1/08 * 800 800
Strategic Fund, HP Pelzer Inc., (AMT),
1.10%, 3/1/11 * 390 390
Strategic Fund, I.V.C. Industrial
Coatings, (AMT), 1.10%, 12/1/12 * 440 440
Strategic Fund, Jedco, Inc., (AMT),
1.01%, 11/1/15 * 2,885 2,885
Strategic Fund, John A. Biewer Co.,
Inc., (AMT), 1.45%, 9/1/03 * 495 495
Strategic Fund, John Dekker & Sons,
(AMT), 1.01%, 1/1/18 * 435 435
Strategic Fund, Joy Properties, LLC,
1.10%, 5/1/17 * 300 300
Strategic Fund, Kazoo, Inc., (AMT),
1.40%, 9/15/03 * 325 325
Strategic Fund, Kundinger, (AMT),
1.05%, 2/1/29 * 1,280 1,280
Strategic Fund, Kurdziel Iron, (AMT),
0.99%, 5/1/10 * 900 900
Strategic Fund, Limited Obligation
Revenue, Bowers Manufacturing Co.
(AMT), 1.10%, 9/1/10 * 300 300
Strategic Fund, Limited Obligation
Revenue, Creative Foam Corp.
(AMT), 1.10%, 11/1/11 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc.
(AMT), 1.10%, 8/1/04 * 700 700
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc.
(AMT), 1.10%, 3/1/11 * 2,700 2,700
Strategic Fund, Limited Obligation
Revenue, Horizon Development
Project, (AMT), 1.10%, 9/1/21 * 800 800
Strategic Fund, Limited Obligation
Revenue, Jet Enterprises, (AMT),
1.10%, 3/1/11 * 900 900
Strategic Fund, Limited Obligation
Revenue, Motor City Mold, Inc.
Project, (AMT), 0.99%, 3/1/21 * 2,955 2,955
Continued
15
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, Production Engineering
Project, (AMT), 1.05%, 6/1/13 * $ 2,005 $ 2,005
Strategic Fund, Limited Obligation
Revenue, R. L. Adams Plastics, Inc.,
(AMT), 1.05%, 5/1/23 * 2,685 2,685
Strategic Fund, Limited Obligation
Revenue, River City Plastics, Inc.,
(AMT), 1.10%, 3/1/21 * 3,250 3,250
Strategic Fund, Limited Obligation
Revenue, S.K.Y. Sakaiya Corp.
Project, (AMT), 1.10%, 5/1/10 * 1,100 1,100
Strategic Fund, Limited Obligation
Revenue, Stegner East Investments,
LLC, (AMT), 1.05%, 6/1/29 * 4,310 4,310
Strategic Fund, Lowenstein Ventures
LLC, (AMT), 1.10%, 7/1/12 * 980 980
Strategic Fund, MacArthur, (AMT),
1.10%, 6/1/15 * 2,300 2,300
Strategic Fund, Maco Steel Inc., (AMT),
1.01%, 3/1/24 * 1,885 1,885
Strategic Fund, Merrill Group, (AMT),
0.99%, 10/1/22 * 1,680 1,680
Strategic Fund, Middleville Tool & Die
Project, (AMT), 1.10%, 9/1/13 * 3,300 3,300
Strategic Fund, Molmec, Inc., (AMT),
1.05%, 12/1/14 * 580 580
Strategic Fund, Nicholas Plastics,
(AMT), 1.01%, 2/1/27 * 800 800
Strategic Fund, Northern Pure Ice Co.,
(AMT), 1.10%, 3/1/15 * 570 570
Strategic Fund, Patten Monument,
(AMT), 1.01%, 11/1/26 * 845 845
Strategic Fund, Phipps Emmett
Association, (AMT),
1.10%, 12/1/23 * 2,000 2,000
Strategic Fund, Plascore, Inc., Series
B-2, (AMT), 1.30%, 6/1/14 * 150 150
Strategic Fund, Proto-Techniques,
(AMT), 1.05%, 12/1/26 * 5,000 5,000
Strategic Fund, Protomark Corp.
Project, (AMT), 1.10%, 8/1/17 * 500 500
Strategic Fund, RL Enterprises LLC,
(AMT), 1.10%, 12/1/09 * 600 600
Strategic Fund, SFI Acquistion, Inc.,
(AMT), 1.05%, 2/1/28 * 1,165 1,165
Strategic Fund, Solid Waste Disposal,
Grayling Generating, (AMT),
0.90%, 1/1/14 * 3,504 3,504
Strategic Fund, Sunrise Windows Ltd.,
(AMT), 1.05%, 5/1/13 * 1,340 1,340
Strategic Fund, Thompson Family
Holdings, (AMT), 0.99%, 7/1/28 * 1,000 1,000
Strategic Fund, Trenton Forging Co.,
(AMT), 1.10%, 6/1/20 * 1,505 1,505
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Trio Tool Co., (AMT),
1.10%, 7/1/24 * $ 1,325 $ 1,325
Strategic Fund, Ultra Tech Printing Co.,
(AMT), 1.01%, 8/1/23 * 1,275 1,275
Strategic Fund, Waltec American
Forgings, (AMT), 1.10%, 10/1/09 * 2,400 2,400
Strategic Fund, Warren Screw Products,
Inc., (AMT), 1.10%, 9/1/16 * 400 400
Strategic Fund, Waterland, (AMT),
1.30%, 6/1/25 * 1,000 1,000
Strategic Fund, Wayne Disposal,
(AMT), 0.95%, 3/1/05 * 2,490 2,490
Strategic Fund, Wright K Technology,
Inc. (AMT), 0.99%, 5/1/17 * 745 745
Strategic Fund, YMCA Detroit Project,
0.95%, 5/1/31 * 750 750
Swan Valley Schools, 2.00%, 5/1/04 585 589
Taylor Builders Authority,
1.50%, 12/1/03 390 391
Troy City Schools, 4.50%, 5/1/04 485 497
Trunk Line, 3.00%, 10/1/03 2,500 2,506
Underground Storage Tank Financial
Assurance, 6.00%, 5/1/04 500 519
University of Michigan Hospital
Revenue, Series A, 0.90%, 12/1/19 * 2,000 2,000
University of Michigan, Medical Service
Plan, Series A-1, 0.90%, 12/1/21 * 2,950 2,950
University of Michigan, Series A,
0.90%, 12/1/27 * 2,000 2,000
Walled Lake Consolidated School
District, 6.00%, 5/1/04 500 518
Warren Capital Improvements,
2.25%, 6/1/04 100 101
Warren Consolidated Schools,
2.00%, 5/1/04 205 206
Warren Economic Development Corp.,
Limited Obligation, CMX Corp.,
(AMT), 1.40%, 9/15/03 * 955 955
Wyandotte City School, 3.00%, 5/1/04 610 619
Wyandotte Electric Revenue,
6.20%, 10/1/03 1,000 1,008
-----------
215,066
-----------
PUERTO RICO (3.6%)
Industrial Medical & Environmental
Pollution Control, Facilities
Financing Authority, Abbott
Laboratories, 1.30%, 3/1/04 * 4,695 4,695
Industrial Medical & Environmental
Pollution Control, Facilities
Financing Authority, Merck Co.,
1.75%, 12/1/03 * 4,200 4,200
-----------
8,895
-----------
TOTAL MUNICIPAL BONDS 229,761
-----------
Continued
16
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
SHARES VALUE
------------ -----------
MONEY MARKETS (2.0%)
AIM Tax Free Money Market Fund 8,420 $ 8
Dreyfus Tax Exempt Money
Market Fund 4,713,439 4,713
Federated Tax Exempt Money
Market Fund 91,947 92
Merrill Lynch Institutional Tax
Exempt Fund 61,847 62
-----------
TOTAL MONEY MARKETS 4,875
-----------
TOTAL INVESTMENTS (COST $251,136) (a) - 101.3% 251,136
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.3)% (3,312)
-----------
NET ASSETS - 100.0% $ 247,824
===========
See notes to schedules of portfolio investments
and notes to financial statements
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
COMMERCIAL PAPER (2.2%)
ARIZONA (1.2%)
Mesa, 0.90%, 8/5/03 $ 2,970 $ 2,970
-----------
MICHIGAN (1.0%)
University of Michigan, 0.80%, 9/2/03 2,500 2,500
-----------
TOTAL COMMERCIAL PAPER 5,470
-----------
MUNICIPAL BONDS (98.0%)
ALASKA (4.0%)
Valdez Marine Term Revenue, Exxon
Mobile Corp., 0.85%, 12/1/33 * 10,000 10,000
-----------
ARIZONA (0.7%)
Phoenix, Development Authority,
Valley of the Sun YMCA,
0.95%, 1/1/31 * 600 600
School Facility Board Revenue,
5.25%, 7/1/04 1,205 1,252
-----------
1,852
-----------
ARKANSAS (0.2%)
Harrison School District Number 1,
3.50%, 6/1/04 260 265
Lake Hamilton School District,
3.00%, 4/1/04 160 162
-----------
427
-----------
COLORADO (6.2%)
Colorado Springs, Pikes Peak YMCA,
0.90%, 11/1/22 * 900 900
Colorado Springs, Revenue National
Strength and Condition,
1.00%, 11/1/22 * 670 670
Commerce City, 1.55%, 12/1/31 * 2,140 2,140
Crystal Valley Colorado Metropolitan
District, 0.90%, 5/1/32 * 1,700 1,700
Denver, Health & Hospital Authority,
Series B, 0.95%, 12/1/31 * 915 915
Durango, Revenue Health and Human
Services, 1.00%, 12/15/14 * 875 875
Holland Creek, 0.85%, 6/1/41 * 4,000 4,000
Pinery West Metropolitan District
No. 2, 1.30%, 11/3/03 * 3,200 3,200
Smith Creek Metropolitian District,
0.85%, 10/1/35 * 1,160 1,160
-----------
15,560
-----------
FLORIDA (0.8%)
Rural Utility Community Revenue,
Projects Construction Series B,
2.75%, 10/15/03 2,000 2,004
-----------
IDAHO (1.1%)
Idaho State University Foundation,
Inc., 0.90%, 5/1/21 * 2,875 2,875
-----------
Continued
17
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
ILLINOIS (14.6%)
Development Finance Authority,
0.87%, 10/1/08 * $ 600 $ 600
Development Finance Authority,
0.90%, 4/1/32 * 2,000 2,000
Development Finance Authority,
Pollution Control Revenue,
Commonwealth Edison,
5.30%, 1/15/04 4,000 4,076
Development Finance Authority, WTVP
Channel 47, Series A, Lake County
Family YMCA, 0.90%, 9/1/22 * 3,650 3,650
Educational Facilities Authority, Field
Museum of Natural History,
0.85%, 11/1/25 * 4,900 4,901
Educational Facilities Authority,
Lake County Family YMCA,
0.85%, 11/1/30 * 2,900 2,900
Galesburg, Knox College,
0.85%, 7/1/24 * 2,400 2,400
Health Facilities Authority,
0.85%, 1/1/16 * 3,000 3,000
Hopedale, Industrial Development,
Hopedale Medical Foundation,
0.89%, 5/1/09 * 975 975
Kane County, 4.00%, 1/1/04 1,455 1,473
Lake Villa, Allendale Association,
0.90%, 10/1/26 * 5,200 5,200
Peoria, Peoria Academy,
1.00%, 9/1/26 * 4,600 4,600
Springfield Community Improvement,
0.90%, 12/1/25 * 1,000 1,000
-----------
36,775
-----------
INDIANA (15.0%)
Anderson, Sewer Revenue,
3.25%, 11/1/03 410 412
Bond Banking Revenue, Series A,
1.25%, 4/15/04 2,000 2,005
Crawfordsville, Economic Development,
Autumn Woods Apartments,
Series A, 0.89%, 1/1/30 * 3,436 3,436
Development Financial Authority for
Mental Health, 1.00%, 12/1/22 * 4,000 4,000
Development Financial Authority,
Regional Council of Carpenters,
0.90%, 9/1/31 * 1,475 1,475
Educational Facilities Authority
Revenue, Indiana Wesleyan
University, Series A, 0.85%, 6/1/28 * 1,500 1,500
Greenfield, Economic Development,
1.14%, 9/1/05 * 405 405
Health Facilities Authority,
0.85%, 1/1/20 * 5,100 5,100
Healthcare Facitities Revenue Southern,
Indiana Rehabilitation Hospital,
1.00%, 4/1/20 * 1,400 1,400
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Indianapolis Local Public
Improvements, 1.25%, 8/29/03 $ 2,000 $ 2,000
Indianapolis, State Development
Finance Authority, Lutheran
Educational Facilities Project,
0.95%, 10/1/17 * 2,545 2,545
Jeffersonville, Economic Development,
Mental Health Center,
1.00%, 9/1/22 * 2,580 2,580
Rushville, Economic Development,
Flatrock River Lodge, Series A,
0.94%, 7/1/16 * 1,520 1,520
Saint Joseph County, Economic
Development Revenue,
1.00%, 6/1/22 * 3,000 3,000
State Educational Facilities Authority,
DePauw University, 0.90%, 7/1/32 * 5,000 5,000
Vincennes, Economic Development,
Lodge of the Wabash,
0.94%, 7/1/15 * 1,730 1,730
-----------
38,108
-----------
IOWA (2.0%)
Financial Authority, Diocese of Sioux
City, 0.90%, 3/1/19 * 1,800 1,800
Financial Authority, Putnam Museum
of History, 0.90%, 5/1/12 * 1,785 1,785
Higher Education Loan Authority,
0.90%, 11/1/32 * 1,400 1,400
-----------
4,985
-----------
KENTUCKY (4.5%)
Breckinridge County Lease Program
Revenue, 0.91%, 12/1/29 * 4,200 4,200
Breckinridge County Lease Program
Revenue, Association Counties
Leasing, 0.91%, 2/1/31 * 4,000 4,000
Campbell County School District
Financial Corporate School
Building, 2.00%, 2/1/04 1,055 1,060
Rural Water Financial Corporation,
2.25%, 11/1/03 2,000 2,002
-----------
11,262
-----------
LOUISIANA (0.7%)
Public Facility Authority Revenue,
Medical Center, Louisiana University
Hospital, 3.00%, 10/15/03 1,695 1,701
-----------
MICHIGAN (11.3%)
Hospital Finance Authority, Hospital
Equipment Loan Program, Series B,
0.91%, 5/1/30 * 2,200 2,200
Housing Development Authority,
Rental Housing Revenue, Series B,
0.83%, 4/1/19 * 1,890 1,890
Jackson County Economic Development
Corp., Vista Grande Villa,
0.90%, 11/1/31 * 1,200 1,200
Continued
18
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Macomb County Hospital Finance
Authority, Mount Clemens, Series A,
0.90%, 10/1/20 * $ 1,000 $ 1,000
Strategic Fund, Detroit Symphony,
Series A, 0.90%, 6/1/31 * 1,500 1,500
Strategic Fund, Lions Bear Lake Camp,
0.90%, 8/1/22 * 1,200 1,200
Strategic Fund, Van Andel Research
Institute, 0.90%, 12/1/21 * 5,000 5,000
Strategic Fund, Village at Fort Gratiot
LLC, 1.00%, 2/15/34 * 885 885
Strategic Fund, Vincent Home Project,
0.95%, 8/1/28 * 6,645 6,645
University of Michigan, Medical
Services Plan, Series A,
0.90%, 12/1/27 * 1,250 1,250
University of Michigan, Series A-2,
0.90%, 12/1/24 * 5,800 5,800
-----------
28,570
-----------
MINNESOTA (4.3%)
Lauderdale, Childrens Home Society,
1.00%, 12/1/30 * 2,200 2,200
Minneapolis, Minnehaha Academy
Project, 1.00%, 5/1/26 * 3,600 3,600
Rural Water Financial Authority,
2.38%, 12/15/03 3,125 3,137
School District Tax and Aid
Anticipation Borrowing Program,
2.25%, 8/20/03 2,000 2,001
-----------
10,938
-----------
MISSISSIPPI (0.4%)
Columbus Water and Sewer Revenue,
6.50%, 5/1/13, (Prerefunded
5/1/04 @ 102) 1,000 1,062
-----------
MISSOURI (2.1%)
Development Financial Board,
Infrastructure Facilities, St. Louis
Convention Center, Series C,
0.95%, 12/1/20 * 3,700 3,700
Health & Educational Facilities
Authority, Saint Francis Medical
Center, Series A, 0.90%, 6/1/26 * 1,700 1,700
-----------
5,400
-----------
NEW JERSEY (1.7%)
Economic Development Authority,
Market Transition Facility, Senior
Lien, Series A, 7.00%, 7/1/04 4,000 4,217
-----------
NEW YORK (0.2%)
Energy Research & Development
Authority, Pollution Control, State
Electric & Gas, Series C,
0.85%, 6/1/29 * 500 500
-----------
Continued
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
NORTH CAROLINA (1.2%)
Capital Facilities Finance Agency,
NCA&T University,
0.90%, 7/1/32 * $ 3,000 $ 3,000
-----------
OHIO (11.3%)
Butler County, Healthcare Facilities,
0.85%, 5/1/27 * 2,000 2,000
Butler County, Series A, 2.00%, 3/12/04 500 503
Columbiana County, Revenue, East
Liverpool, 0.90%, 10/1/23 * 3,500 3,500
Coshocton County, Hospital Revenue,
1.00%, 3/1/14 * 250 250
Franklin County, Healthcare Facilities
Revenue, 0.90%, 7/1/33 * 760 760
Highway, Series V, GO, 4.80%, 5/15/04 3,000 3,090
Independence, Economic Development
Revenue, 0.90%, 12/1/16 * 2,275 2,275
Montgomery County, Economic
Development, Benjamin & Marian
Arts Center, Series A, 0.90%, 4/1/11 * 2,800 2,800
Montgomery County, Economic
Development, Dayton Art Institute,
0.90%, 5/1/26 * 3,400 3,400
Montgomery County, Health Care
Facilities, Community Blood Center,
1.00%, 12/1/20 * 1,895 1,895
Ohio City Services Special Assessment,
0.90%, 12/1/03 * 800 800
Summit County, Industrial
Development Revenue, SSP Fittings
Corporate Project, 1.00%, 9/1/11 * 1,200 1,200
University of Cincinnati, 1.75%, 3/18/04 1,000 1,004
Water Development Authority,
Pollution Control Revenue,
Cleveland Electric, Series B,
0.85%, 8/1/20 * 5,100 5,100
-----------
28,577
-----------
PENNSYLVANIA (2.3%)
Corry Area School District,
5.00%, 12/1/03 2,750 2,785
North Wales, Water Authority, Rural
Water Projects Revenue,
2.50%, 12/1/03 3,000 3,008
-----------
5,793
-----------
TENNESSEE (0.4%)
Clarksville, Public Building Authority,
0.95%, 7/1/31 * 900 900
-----------
Continued
19
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -----------
MUNICIPAL BONDS, CONTINUED
TEXAS (5.5%)
Cypress - Fairbanks, Independent
School District, 4.00%, 2/15/04 $ 1,000 $ 1,016
Fort Worth Water and Sewer,
5.50%, 2/15/04 500 512
Gregory Portland, Independent School
District, 6.00%, 8/15/03 300 301
San Antonio, Industrial Developement
Authority, 0.90%, 12/1/12 * 8,450 8,448
San Jacinto, Community College,
2.50%, 2/15/04 1,195 1,204
Tarrant County, 5.75%, 7/15/04 500 522
Tax & Revenue, 2.75%, 8/29/03 2,000 2,002
-----------
14,005
-----------
WASHINGTON (4.5%)
Bremerton Revenue, 0.90%, 12/1/28 * 3,100 3,100
Health Care Facilities Authority
Revenue, Inland Northwest Blood,
0.90%, 8/1/26 * 4,380 4,380
Richland Gold Enterprises Revenue,
0.85%, 12/1/21 * 3,640 3,640
Shoreline Water Distribution,
2.00%, 5/1/04 255 257
-----------
11,377
-----------
WEST VIRGINIA (0.2%)
West Virginia University Revenue,
Series A, 5.00%, 5/1/04 600 618
-----------
WISCONSIN (2.8%)
Health & Educational Facility,
0.90%, 10/1/21 * 1,060 1,060
Health & Educational Facility,
0.90%, 7/1/28 * 700 700
Milwaukee County, Milwaukee Public
Museum, 0.90%, 6/1/29 * 350 350
Oregon, 2.00%, 9/1/03 265 265
West Allis School District,
1.40%, 12/15/03 1,950 1,952
West Allis, State Fair Park Exposition
Center, 0.92%, 8/1/28 * 2,700 2,700
-----------
7,027
-----------
TOTAL MUNICIPAL BONDS 247,533
-----------
Continued
SHARES VALUE
------------ -----------
MONEY MARKETS (0.2%)
AIM Tax Free Money Market Fund 19,650 $ 20
Dreyfus Tax Exempt Money Market
Fund 551,637 552
Federated Tax Exempt Money Market
Fund 15,760 16
-----------
TOTAL MONEY MARKETS 588
-----------
TOTAL INVESTMENTS (COST $253,591) (a) - 100.4% 253,591
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4)% (1,073)
-----------
NET ASSETS - 100.0% $ 252,518
===========
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
* Variable rate security. Rate presented represents rate in effect at July
31, 2003. Maturity date reflects actual maturity date.
** Effective yield at purchase.
(a) Also represents cost for federal income tax purposes.
(b) Proceeds range from $29,520 to $160,005. Collateralized by various U.S.
Treasury securities.
(c) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
The following abbreviations are used in these Schedules of Portfolio
Investments:
AMT - Alternative Minimum Tax Paper
GO - General Obligation
LLC - Limited Liability Company
LOC - Letter of Credit
MTN - Medium Term Note
See notes to financial statements
20
This page intentionally left blank.
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
Assets: FUND FUND MARKET FUND
------------ ------------- ----------------
Investments, at amortized cost $1,812,178 $704,722 $474,945
Repurchase agreements, at cost 186,356 58,740 140,234
---------- -------- --------
Total Investments 1,998,534 763,462 615,179
Cash 1 --^ --^
Interest receivable 8,368 3,346 2,386
Receivable from Advisor and affiliates 2 4 2
Prepaid expense and other assets 36 5 18
---------- -------- --------
Total Assets 2,006,941 766,817 617,585
---------- -------- --------
Liabilities:
Distributions payable 1,068 659 403
Payable for investments purchased -- -- --
Payable for Fund shares redeemed 7 -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 726 79 150
Distribution and administrative
services fees 92 -- --
Other 130 56 33
---------- -------- --------
Total Liabilities 2,023 794 586
---------- -------- --------
Net Assets:
Paid-in Capital $2,004,863 $766,008 $616,993
Accumulated net investment income -- 11 --
Accumulated net realized gain/(loss) from
investment transactions 55 4 6
---------- -------- --------
Net Assets $2,004,918 $766,023 $616,999
========== ======== ========
Net Assets:
Institutional Shares $1,565,589 $766,023 $616,999
Class A Shares 436,687 NA NA
Class B Shares 2,426 NA NA
Class C Shares 154 NA NA
Advisor Shares 62 NA NA
---------- -------- --------
Total $2,004,918 $766,023 $616,999
========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,
no par value):
Institutional Shares 1,565,591 766,009 616,994
Class A Shares 436,679 NA NA
Class B Shares 2,426 NA NA
Class C Shares 154 NA NA
Advisor Shares 62 NA NA
---------- -------- --------
Total 2,004,912 766,009 616,994
========== ======== ========
Net Asset Value
Offering and redemption price per share --
Institutional Shares, Class A Shares, Class B Shares,
Class C Shares and Advisor Shares (a) $ 1.00 $ 1.00 $ 1.00
========== ======== ========
See notes to financial statements
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
Assets: FUND FUND FUND FUND
-------------- -------------- ------------------ ------------
Investments, at amortized cost $451,435 $ 578,489 $251,136 $253,591
Repurchase agreements, at cost -- 1,064,520 -- --
-------- ---------- -------- --------
Total Investments 451,435 1,643,009 251,136 253,591
Cash -- 169 -- --
Interest receivable 1,418 3,084 772 530
Receivable from Advisor and affiliates -- -- 1 --
Prepaid expense and other assets 19 16 5 17
-------- ---------- -------- --------
Total Assets 452,872 1,646,278 251,914 254,138
-------- ---------- -------- --------
Liabilities:
Distributions payable 156 931 97 116
Payable for investments purchased -- -- 3,889 1,452
Payable for Fund shares redeemed -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 166 367 84 35
Distribution and administrative
services fees 31 -- --^ 9
Other 22 75 20 8
-------- ---------- -------- --------
Total Liabilities 375 1,373 4,090 1,620
-------- ---------- -------- --------
Net Assets:
Paid-in Capital $452,584 $1,645,090 $247,834 $252,533
Accumulated net investment income 8 -- (10) 2
Accumulated net realized gain/(loss) from
investment transactions (95) (185) -- (17)
-------- ---------- -------- --------
Net Assets $452,497 $1,644,905 $247,824 $252,518
======== ========== ======== ========
Net Assets:
Institutional Shares $275,107 $1,644,905 $247,805 $199,439
Class A Shares 177,390 NA 19 53,079
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
-------- ---------- -------- --------
Total $452,497 $1,644,905 $247,824 $252,518
======== ========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,
no par value):
Institutional Shares 275,254 1,644,848 247,764 199,440
Class A Shares 177,503 NA 19 53,097
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
-------- ---------- -------- --------
Total 452,757 1,644,848 247,783 252,537
======== ========== ======== ========
Net Asset Value
Offering and redemption price per share --
Institutional Shares, Class A Shares, Class B Shares,
Class C Shares and Advisor Shares (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ======== ========
- -------------------
(a) Redemption price per share for Class B Shares and Class C Shares varies by
length of time shares are held.
^ Amount less than $500.
See notes to financial statements
22-23 SPREAD
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
FUND FUND MARKET FUND
------------ ------------- ----------------
Investment Income:
Interest income $31,328 $7,905 $7,887
Dividend income 2,031 414 247
------- ------ ------
Total Investment Income 33,359 8,319 8,134
------- ------ ------
Expenses:
Investment advisory fees 8,545 2,277 2,258
Administration fees 3,704 987 979
Distribution services fees--Class A Shares 1,060 NA NA
Distribution services fees--Class B Shares 23 NA NA
Distribution services fees--Class C Shares 3 NA NA
Distribution services fees--Advisor Shares --^ NA NA
Administrative services fees--Class C Shares 1 NA NA
Accounting fees 372 118 119
Transfer and dividend disbursing agent fees 561 138 132
Other expenses 674 168 181
------- ------ ------
Total expenses 14,943 3,688 3,669
------- ------ ------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (2,321) (2,436) (1,410)
Distribution services--Class A,
Class B and Class C Shares waived (8) -- --
------- ------ ------
Net Expenses 12,614 1,252 2,259
------- ------ ------
Net Investment Income 20,745 7,067 5,875
------- ------ ------
Net realized gains/(losses) from investment transactions 55 4 7
------- ------ ------
Change in net assets resulting from operations $20,800 $7,071 $5,882
======= ====== ======
See notes to financial statements
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- ------------------ ------------
Investment Income:
Interest income $6,488 $18,677 $3,469 $3,429
Dividend income 203 624 97 81
------ ------- ------ ------
Total Investment Income 6,691 19,301 3,566 3,510
------ ------- ------ ------
Expenses:
Investment advisory fees 1,829 5,582 1,005 1,313
Administration fees 793 2,419 436 455
Distribution services fees--Class A Shares 459 NA --^ 90
Distribution services fees--Class B Shares NA NA NA NA
Distribution services fees--Class C Shares NA NA NA NA
Distribution services fees--Advisor Shares NA NA NA NA
Administrative services fees--Class C Shares NA NA NA NA
Accounting fees 109 232 73 75
Transfer and dividend disbursing agent fees 134 346 63 77
Other expenses 163 500 95 137
------ ------- ------ ------
Total expenses 3,487 9,079 1,672 2,147
------ ------- ------ ------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (222) (3,489) (315) (959)
Distribution services--Class A,
Class B and Class C Shares waived (92) -- --^ (51)
------ ------- ------ ------
Net Expenses 3,173 5,590 1,357 1,137
------ ------- ------ ------
Net Investment Income 3,518 13,711 2,209 2,373
------ ------- ------ ------
Net realized gains/(losses) from investment transactions 24 6 -- (1)
------ ------- ------ ------
Change in net assets resulting from operations $3,542 $13,717 $2,209 $2,372
====== ======= ====== ======
- --------------
^ Amount less than $500.
See notes to financial statements
24-25 SPREAD
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 (a) 2003 2002 2003 2002 (b)
---------- ---------- --------- --------- --------- ---------
Change in Net Assets:
Operations:
Net investment income $ 20,745 $ 35,227 $ 7,067 $ 2,783 $ 5,875 $ 9,596
Net realized gains/(losses)
from investment
transactions 55 35 4 11 7 --
---------- ---------- --------- --------- --------- ---------
Change in net assets resulting
from operations 20,800 35,262 7,071 2,794 5,882 9,596
---------- ---------- --------- --------- --------- ---------
Distributions to shareholders:
Institutional Shares (17,318) (27,701) (7,067) (2,783) (5,875) (9,543)
Class A Shares (3,247) (7,723) NA NA NA (55)
Class B Shares (7) (15) NA NA NA NA
Class C Shares (1) --^ NA NA NA NA
Advisor Shares --^ --^ NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Change in net assets from
shareholder distributions (20,573) (35,439) (7,067) (2,783) (5,875) (9,598)
---------- ---------- --------- --------- --------- ---------
Change in net assets from fund
share transactions (177,024) 1,022,604 576,489 117,741 191,900 (20,922)
---------- ---------- --------- --------- --------- ---------
Change in net assets (176,797) 1,022,427 576,493 117,752 191,907 (20,924)
Net Assets:
Beginning of period 2,181,715 1,159,288 189,530 71,778 425,092 446,016
---------- ---------- --------- --------- --------- ---------
End of period $2,004,918 $2,181,715 $ 766,023 $ 189,530 $ 616,999 $ 425,092
========== ========== ========= ========= ========= =========
Accumulated Net Investment Income $ -- $ (172) $ 11 $ 11 $ -- $ --
========== ========== ========= ========= ========= =========
Share Transactions: *
Institutional Shares
Shares issued 3,514,437 3,054,129 2,541,319 768,327 1,977,111 1,661,984
Shares issued in merger -- 753,894 -- -- -- 123
Dividends reinvested 1,927 3,436 1,984 756 1,816 5,306
Shares redeemed (3,683,165) (2,881,252) (1,966,814) (651,341) (1,787,027) (1,652,598)
---------- ---------- --------- --------- --------- ---------
Total Institutional Shares (166,801) 930,207 576,489 117,742 191,900 14,815
---------- ---------- --------- --------- --------- ---------
Class A Shares
Shares issued 870,263 540,172 NA NA NA 19,828
Shares issued in merger -- 1,420 NA NA NA --
Dividends reinvested 3,559 8,228 NA NA NA 55
Shares redeemed (884,736) (458,314) NA NA NA (55,621)
---------- ---------- --------- --------- --------- ---------
Total Class A Shares (10,914) 91,506 NA NA NA (35,738)
---------- ---------- --------- --------- --------- ---------
Class B Shares
Shares issued 1,907 2,359 NA NA NA NA
Dividends reinvested 7 15 NA NA NA NA
Shares redeemed (1,381) (1,502) NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Total Class B Shares 533 872 NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Class C Shares
Shares issued 8,231 190 NA NA NA NA
Dividends reinvested 1 --^ NA NA NA NA
Shares redeemed (8,138) (130) NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Total Class C Shares 94 60 NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Advisor Shares
Shares issued 138 4 NA NA NA NA
Dividends reinvested --^ --^ NA NA NA NA
Shares redeemed (78) (2) NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Total Advisor Shares 60 2 NA NA NA NA
---------- ---------- --------- --------- --------- ---------
Change from share transactions (177,028) 1,022,647 576,489 117,742 191,900 (20,923)
========== ========== ========= ========= ========= =========
GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 2003 2002
--------- --------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 3,518 $ 8,506 $ 13,711 $ 20,829
Net realized gains/(losses)
from investment
transactions 24 3 6 4
--------- --------- ---------- ----------
Change in net assets resulting
from operations 3,542 8,509 13,717 20,833
--------- --------- ---------- ----------
Distributions to shareholders:
Institutional Shares (2,495) (4,555) (13,711) (20,829)
Class A Shares (1,336) (3,954) NA NA
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
--------- --------- ---------- ----------
Change in net assets from
shareholder distributions (3,831) (8,509) (13,711) (20,829)
--------- --------- ---------- ----------
Change in net assets from fund
share transactions (96,335) 62,241 501,547 84,941
--------- --------- ---------- ----------
Change in net assets (96,624) 62,241 501,553 84,945
Net Assets:
Beginning of period 549,121 486,880 1,143,352 1,058,407
--------- --------- ---------- ----------
End of period $ 452,497 $ 549,121 $1,644,905 $1,143,352
========= ========= ========== ==========
Accumulated Net Investment Income $ 8 $ 351 $ -- $ 247
========= ========= ========== ==========
Share Transactions: *
Institutional Shares
Shares issued 378,580 344,032 3,686,175 2,433,671
Shares issued in merger -- -- -- --
Dividends reinvested 93 211 1,187 2,335
Shares redeemed (382,443) (303,998) (3,185,815) (2,351,061)
--------- --------- --------- ----------
Total Institutional Shares (3,770) 40,245 501,547 84,945
--------- --------- --------- ----------
Class A Shares
Shares issued 197,984 318,004 NA NA
Shares issued in merger -- -- NA NA
Dividends reinvested 1,489 4,473 NA NA
Shares redeemed (292,038) (300,480) NA NA
--------- --------- --------- ----------
Total Class A Shares (92,565) 21,997 NA NA
--------- --------- --------- ----------
Class B Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ----------
Total Class B Shares NA NA NA NA
--------- --------- --------- ----------
Class C Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ----------
Total Class C Shares NA NA NA NA
--------- --------- --------- ----------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ----------
Total Advisor Shares NA NA NA NA
--------- --------- --------- ----------
Change from share transactions (96,335) 62,242 501,547 84,945
========= ========= ========== ==========
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2003 2002 2003 2002
--------- --------- --------- ---------
Change in Net Assets:
Operations:
Net investment income $ 2,209 $ 4,115 $ 2,373 $ 3,796
Net realized gains/(losses)
from investment
transactions -- 37 (1) --^
--------- --------- --------- ---------
Change in net assets resulting
from operations 2,209 4,152 2,372 3,796
--------- --------- --------- ---------
Distributions to shareholders:
Institutional Shares (2,210) (4,113) (2,057) (3,214)
Class A Shares (1) (2) (286) (610)
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change in net assets from
shareholder distributions (2,211) (4,115) (2,343) (3,824)
--------- --------- --------- ---------
Change in net assets from fund
share transactions (44,969) (25,000) (38,795) 60,063
--------- --------- --------- ---------
Change in net assets (44,971) (24,963) (38,766) 60,035
Net Assets:
Beginning of period 292,795 317,758 291,284 231,249
--------- --------- --------- ---------
End of period $ 247,824 $ 292,795 $ 252,518 $ 291,284
========= ========= ========= =========
Accumulated Net Investment Income $ (10) $ (8) $ 2 $ (28)
========= ========= ========= =========
Share Transactions: *
Institutional Shares
Shares issued 413,441 519,400 395,321 440,684
Shares issued in merger -- -- -- --
Dividends reinvested 1,081 2,086 105 333
Shares redeemed (459,333) (546,451) (445,294) (381,983)
--------- --------- --------- ---------
Total Institutional Shares (44,811) (24,965) (49,868) 59,034
--------- --------- --------- ---------
Class A Shares
Shares issued 97 572 165,303 71,908
Shares issued in merger -- -- -- --
Dividends reinvested 1 3 297 639
Shares redeemed (257) (612) (154,527) (71,518)
--------- --------- --------- ---------
Total Class A Shares (159) (37) 11,073 1,029
--------- --------- --------- ---------
Class B Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ---------
Total Class B Shares NA NA NA NA
--------- --------- --------- ---------
Class C Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ---------
Total Class C Shares NA NA NA NA
--------- --------- --------- ---------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
--------- --------- --------- ---------
Total Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change from share transactions (44,970) (25,002) (38,795) 60,063
========= ========= ========= =========
- ----------------------------
(a) Reflects operations for the period from October 29, 2001 (date of
commencement of operations) to July 31, 2002 for Advisor Shares and from
May 5, 2002 (date of commencement of operations) to July 31, 2002 for Class
C Shares.
(b) Class A Shares of the Institutional Government Money Market Fund were
exchanged into Institutional Shares effective October 29, 2001.
* Share transactions are at par value of $1.00 per share.
^ Amount less than 500 dollars/shares.
See notes to financial statements
26-27 SPREAD
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2003
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Fifth Third Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company established as a Massachusetts business trust. At July 31, 2003, the
Trust consisted of thirty-seven separate investment portfolios.
The accompanying financial statements and notes relate only to the following
Funds (individually the "Fund" and collectively the "Funds"):
PORTFOLIO NAME
Fifth Third Prime Money Market Fund ("Prime Money Market Fund")
Fifth Third Institutional Money Market Fund ("Institutional Money Market Fund")
Fifth Third Institutional Government Money Market Fund ("Institutional
Government Money Market Fund")
Fifth Third Government Money Market Fund ("Government Money Market Fund")
Fifth Third U.S. Treasury Money Market Fund ("U. S. Treasury Money Market Fund")
Fifth Third Michigan Municipal Money Market Fund ("Michigan Municipal Money
Market Fund")
Fifth Third Ohio Tax Exempt Money Market Fund ("Ohio Tax Exempt Money Market
Fund")
Fifth Third Municipal Money Market Fund ("Municipal Money Market Fund")
The Prime Money Market Fund offers five classes of shares: Institutional Shares,
Class A Shares, Class B Shares, Class C Shares and Advisor Shares. The
Government Money Market Fund, Michigan Municipal Money Market Fund and the
Municipal Money Market Fund offer two classes of shares: Institutional Shares
and Class A Shares. The Institutional Money Market Fund, Institutional
Government Money Market Fund and the U.S. Treasury Money Market Fund offer only
Institutional Shares. Each class of shares for each Fund has identical rights
and privileges except with respect to administrative services fees paid by Class
C Shares, distribution services fees paid by Class A Shares, Class B Shares,
Class C Shares and Advisor Shares, voting rights on matters affecting a single
class of shares and the exchange privileges of each class of shares. Shares of
the Ohio Tax Exempt Money Market Fund are currently not offered.
(2) REORGANIZATION
The Trust entered into an Agreement and Plan of Reorganization (the
"Reorganization") with the Kent Funds pursuant to which all of the assets and
liabilities of each Kent Fund transferred to a corresponding Fifth Third Fund in
exchange for shares of the Fifth Third Fund. Each Kent Fund listed below
transferred all of its assets and liabilities to the corresponding Fifth Third
Fund identified opposite its name in exchange for shares of such Fifth Third
Fund:
KENT FUNDS FIFTH THIRD FUNDS
- ----------------------------------------------------------------------------------------------
Kent Money Market Fund Fifth Third Prime Money Market Fund
Lyon Street Institutional Money Market Fund Fifth Third Institutional Money Market Fund
Kent Government Money Market Fund Fifth Third Institutional Government
Money Market Fund
Kent Michigan Municipal Money Market Fund Fifth Third Michigan Municipal
Money Market Fund
The reorganization, which qualified as a tax-free exchange for federal income
tax purposes, was completed on October 29, 2001 and was approved by shareholders
of the Kent Funds at a Special Meeting of Shareholders held on July 27, 2001.
The following is a summary of shares outstanding, net assets and net asset
values per share immediately before and after the reorganization:
28
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
INSTITUTIONAL SHARES INVESTMENT A SHARES INVESTMENT B SHARES
----------------------------- --------------------------- --------------------------
NET NET NET
NET ASSET NET ASSET NET ASSET
SHARES ASSETS VALUE SHARES ASSETS VALUE SHARES ASSETS VALUE
--------- ---------- ----- ------- -------- ----- ------ ------ ------
Kent Money Market Fund (a) 753,894 $ 753,884 $1.00 1,420 $ 1,420 $1.00 -- $ -- $ --
Fifth Third Prime Money
Market Fund (a) 805,648 805,649 1.00 422,463 422,475 1.00 1,579 1,579 1.00
--------- ---------- ----- ------- -------- ----- ----- ------ -----
Fifth Third Prime Money
Market Fund (b) (c) 1,559,542 $1,559,533 $1.00 423,883 $423,895 $1.00 1,579 $1,579 $ 1.00
- -----------------------------------------------------------------------------------------------------------------------------
Kent Lyon St. Institutional
Money Market Fund (a) 98,247 $ 98,247 $1.00 NA NA NA NA NA NA
Fifth Third Institutional
Money Market Fund (a) -- -- -- NA NA NA NA NA NA
--------- ---------- ----- ------- -------- ----- ----- ------ -----
Fifth Third Institutional
Money Market Fund (b) 98,247 $ 98,247 $1.00 NA NA NA NA NA NA
- -----------------------------------------------------------------------------------------------------------------------------
Kent Government Money
Market Fund (a) 454,591 $ 454,590 $1.00 NA NA NA NA NA NA
Fifth Third Institutional
Government
Money Market Fund (a) -- -- -- NA NA NA NA NA NA
--------- ---------- ----- ------- -------- ----- ----- ------ -----
Fifth Third Institutional
Government
Money Market Fund (b) 454,591 $ 454,590 $1.00 NA NA NA NA NA NA
- -----------------------------------------------------------------------------------------------------------------------------
Kent Michigan Municipal Money
Market Fund (a) 296,912 $ 296,915 $1.00 204 $ 204 $1.00 NA NA NA
Fifth Third Michigan Municipal
Money Market Fund (a) -- -- -- -- -- -- NA NA NA
--------- ---------- ----- ------- -------- ----- ----- ------ -----
Fifth Third Michigan Municipal
Money Market Fund (b) 296,912 $ 296,915 $1.00 204 $ 204 $1.00 NA NA NA
- -----------------------------------------------------------------------------------------------------------------------------
(a) Before reorganization.
(b) After reorganization.
(c)The Fifth Third Prime Money Market Fund retained its investment objective
and financial history after the reorganization.
(3) 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 accounting principles generally accepted in the
United States. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the period. Actual results could differ from those
estimates.
A. SECURITIES VALUATIONS--Investments of the Funds are valued at either
amortized cost, which approximates market value, or at original cost, which
combined with accrued interest approximates market value. Under the amortized
cost method, discount or premium is accreted or amortized on a constant basis to
the maturity of the security. Investments in other open-end investment companies
are valued at net asset value.
B. REPURCHASE AGREEMENTS--The Funds will only enter into repurchase agreements
with banks and other recognized financial institutions, such as broker/dealers,
which are deemed by Fifth Third Asset Management Inc. (the "Advisor") to be
creditworthy pursuant to guidelines and/or standards reviewed or established by
the Board of Trustees (the "Trustees"). It is the policy of the Funds to require
the custodian or sub-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
29
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
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
transaction. 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.
C. SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are
accounted for on the date the security is purchased or sold (trade date).
Interest income is recognized on the accrual basis and includes, where
applicable, the pro rata amortization or accretion of the premium or discount.
Gains or losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
D. EXPENSES--Expenses directly attributable to a Fund are charged to the Fund,
while expenses which are attributable to more than one series of the Trust are
allocated among the respective series based upon relative net assets or another
appropriate basis. In addition, investors in a certain Share class will pay the
expenses directly attributable to that Share class.
E. DISTRIBUTIONS TO SHAREHOLDERS--Dividends from net investment income are
declared daily and paid monthly and distributable net realized gains, if any,
are declared and distributed at least annually. Dividends from net investment
income and from net realized gains are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for expiring capital
loss carryforwards and deferrals of certain losses.
F. FEDERAL TAXES--It is the policy of each Fund to qualify or continue to
qualify as a regulated investment company by complying with the provisions
available to certain investment companies, as defined in applicable sections of
the Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
The tax character of distributions paid during the fiscal year ended July 31,
2003 was as follows (Amounts in thousands):
DISTRIBUTIONS
PAID FROM
-------------
TOTAL
ORDINARY TOTAL TAXABLE TAX EXEMPT DISTRIBUTIONS
INCOME DISTRIBUTIONS DISTRIBUTIONS PAID
---------- ------------- ------------- -------------
Prime Money Market Fund $22,063 $22,063 -- $22,063
Institutional Money Market Fund 6,684 6,684 -- 6,684
Institutional Government Money Market Fund 6,032 6,032 -- 6,032
Government Money Market Fund 4,154 4,154 -- 4,154
U.S. Treasury Money Market Fund 14,125 14,125 -- 14,125
Michigan Municipal Money Market Fund -- -- $2,357 2,357
Municipal Money Market Fund -- -- 2,455 2,455
The tax character of distributions paid during the fiscal year ended July 31,
2002 was as follows (Amounts in thousands):
DISTRIBUTIONS
PAID FROM
-------------
TOTAL
ORDINARY TOTAL TAXABLE TAX EXEMPT DISTRIBUTIONS
INCOME DISTRIBUTIONS DISTRIBUTIONS PAID
---------- ------------- ------------- -------------
Prime Money Market Fund $36,224 $36,224 -- $36,224
Institutional Money Market Fund 2,742 2,742 -- 2,742
Institutional Government Money Market Fund 10,406 10,406 -- 10,406
Government Money Market Fund 9,462 9,462 -- 9,462
U.S. Treasury Money Market Fund 22,905 22,905 -- 22,905
Michigan Municipal Money Market Fund -- -- $4,479 4,479
Municipal Money Market Fund -- -- 4,057 4,057
30
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
As of July 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis was as follows (Amounts in thousands):
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND ACCUMULATED
TAX EXEMPT ORDINARY ACCUMULATED DISTRIBUTIONS OTHER EARNINGS/
INCOME INCOME EARNINGS PAYABLE LOSSES (DEFICIT)
------------- ------------- ----------- ------------- ----------- -----------
Prime Money Market Fund -- $1,123 $1,123 ($1,068) -- $ 55
Institutional Money Market Fund -- 674 674 (659) -- 15
Institutional Government Money Market Fund -- 414 414 (403) -- 11
Government Money Market Fund -- 164 164 (156) ($95) (87)
U.S. Treasury Money Market Fund -- 931 931 (931) (185) (185)
Michigan Municipal Money Market Fund $ 93 -- 93 (97) -- (4)
Municipal Money Market Fund 118 -- 118 (116) (17) (15)
As of July 31, 2003, the following Funds have net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by Treasury
regulations (Amounts in thousands):
EXPIRATION YEAR TOTAL
--------------------------------------------------------- -----
2005 2007 2008 2009 2010 2011
------ ------ ------ ------ ------ ------
Government Money Market Fund $92 -- $ 3 -- -- -- $ 95
U.S. Treasury Money Market Fund -- -- 126 $59 -- -- 185
Municipal Money Market Fund -- $ 2 7 3 $ 3 $ 1 16
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. For
the year ended July 31, 2003, the fund deferred to August 1, 2003 post October
capital losses (Amounts in thousands):
CAPITAL
LOSSES
-------
Municipal Money Market Fund $1
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Advisor receives for its services an annual
investment advisory fee based on a percentage of each Fund's average daily net
assets, as follows: 0.40% for the Prime Money Market Fund, Institutional Money
Market Fund, Institutional Government Money Market Fund, Government Money Market
Fund, U.S. Treasury Money Market Fund, and Michigan Municipal Money Market Fund
and 0.50% for the Municipal Money Market Fund.
ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third") serves as the Trust's
administrator. The administrator generally assists in all aspects of the Trust's
administration and operations including providing the Funds with certain
administrative personnel and services necessary to operate the Funds. Under the
terms of the administration agreement, Fifth Third's fees are computed as a
percentage of the daily average net assets of the Trust for the period.
Administration fees are computed at 0.20% of the first $1 billion of the average
daily net assets of the Trust, 0.18% of the average daily net assets of the
Trust between $1 billion and $2 billion, and 0.17% of more than $2 billion of
the average daily net assets of the Trust. In addition, there shall be an annual
fee of $10,000 per class in excess of four classes per Fund. Effective with the
start of fiscal year 2003, any Fund that commences operations shall be subject
to an annual minimum fee of $20,000. Pursuant to a separate agreement with Fifth
Third, BISYS Fund Services Limited Partnership, a wholly owned subsidiary of The
BISYS Group, Inc., performs sub-administrative services on behalf of the Funds
including providing certain administrative personnel and services necessary to
operate the Funds, for which it receives a fee from Fifth Third computed as a
percentage of the average daily net assets of the Trust.
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's
principal distributor. Under the terms of the Plan, the Funds will compensate
the principal
31
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2003
- --------------------------------------------------------------------------------
distributor from the net assets of the Funds' Class A Shares, Class B Shares,
Class C Shares and Advisor Shares to finance activities intended to result in
the sales of each Funds' shares. The Plan provides that the Funds may incur
distribution services fees up to 0.25% of the average daily net assets for Class
A Shares, up to 1.00% of the average daily net assets for Class B Shares, up to
0.75% of the average daily net assets for Class C Shares and up to 0.50% of the
average daily net assets for Advisor Shares, annually, to compensate the
distributor.
ADMINISTRATIVE SERVICES FEE--The Trust has adopted an Administrative Services
Agreement with Fifth Third with respect to Class C Shares. Under the Plan, the
Funds may make payments up to 0.25% of the average daily net assets for Class C
Shares in exchange for certain administrative services for shareholders and for
the maintenance of shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
serves as transfer and dividend disbursing agent, maintains the Funds'
accounting records and is the Funds' custodian for which it receives a fee based
on the level of each Fund's average net assets for the period, plus
out-of-pocket expenses. Transfer Agent fees are computed at 0.0225% of the
average daily net assets of each Funds' shares. In addition, there shall be an
annual fee of $7,500 per additional class of shares per Fund. Accounting fees
are computed at 0.02% of the average daily net assets of each Funds' shares up
to $500 million, 0.015% of the average daily net assets of each Funds' shares
between $500 million and $1 billion, and 0.01% of more than $1 billion of the
average daily net assets of each Funds' shares. The minimum annual fee per Fund
shall be $30,000. In addition, there shall be an annual fee of $10,000 per
additional class of shares per Fund. Custody fees are computed at 0.01% of the
average daily net assets of each Funds' shares up to $25 million, 0.0075% of the
average daily net assets of each Funds' shares between $25 million and $100
million, 0.005% of the average daily net assets of each Funds' shares between
$100 million and $200 million, and 0.0025% of more than $200 million of the
average daily net assets of each Funds' shares plus transaction charges.
Pursuant to a separate agreement with Fifth Third, BISYS Fund Services Ohio,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., performs sub-transfer
and dividend disbursing agent services and sub-accounting services on behalf of
the Funds, for which it receives a fee from Fifth Third computed as a percentage
of the average daily net assets of each Fund.
Effective with the Reorganization of the Funds, Fifth Third has agreed to waive
fees and/or reimburse expenses to limit total annual fund operating expenses.
INSTITUTIONAL CLASS A CLASS B CLASS C ADVISOR
SHARES * SHARES * SHARES ** SHARES ** SHARES **
------------- -------- --------- --------- ---------
Prime Money Market Fund 0.54% 0.79% 1.55% 1.54% 0.89%
Institutional Money Market Fund 0.22% NA NA NA NA
Institutional Government Money Market Fund 0.40% NA NA NA NA
Michigan Municipal Money Market Fund 0.54% 0.70% NA NA NA
- ------------
* Contractual waivers which remain in effect until November 30, 2003.
** Voluntary waivers which can be discontinued at any time.
Certain officers of the Trust are officers of the above companies, but are not
paid any fees directly by the Trust for serving as officers of the Trust.
(5) CONCENTRATION OF CREDIT RISK
The Michigan Municipal Money Market Fund invests a substantial proportion of its
assets in debt obligations issued by the State of Michigan, and their political
subdivisions, agencies and public authorities. The Fund is more susceptible to
factors adversely affecting issuers of Michigan municipal securities than a fund
that is not concentrated in these issuers to the same extent.
32
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FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
NET REALIZED
NET ASSET AND UNREALIZED LESS NET ASSET
VALUE, NET GAINS/ DISTRIBUTIONS VALUE,
BEGINNING INVESTMENT (LOSSES) FROM TO END OF
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS PERIOD
===============================================================================================================
PRIME MONEY MARKET FUND INSTITUTIONAL
SHARES
Year ended 7/31/99 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/00 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/01 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/99 $1.00 0.04 -- (0.04) $1.00
Year ended 7/31/00 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/01 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 --^ --^ --^ $1.00
===============================================================================================================
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 --^ -- --^ $1.00
Year ended 7/31/03 $1.00 --^ --^ --^ $1.00
===============================================================================================================
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 $1.00 0.05 -- (0.05) $1.00
1/1/01 to 7/31/01(c) $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/98 $1.00 0.05 -- (0.05) $1.00
Year ended 12/31/99 $1.00 0.05 -- (0.05) $1.00
Year ended 12/31/00 $1.00 0.06 -- (0.06) $1.00
1/1/01 to 7/31/01(c) $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/99 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/00 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/01 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/99 $1.00 0.04 -- (0.04) $1.00
Year ended 7/31/00 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/01 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
See notes to financial highlights
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------
RATIOS OF RATIOS OF RATIO OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
TOTAL PERIOD NET TO AVERAGE NET
RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
================================================================================================================
PRIME MONEY MARKET FUND INSTITUTIONAL
SHARES
Year ended 7/31/99 4.76% $ 348,366 0.52% 4.66% 0.63%
Year ended 7/31/00 5.53% $ 508,414 0.52% 5.44% 0.62%
Year ended 7/31/01 5.41% $ 802,176 0.53% 5.11% 0.63%
Year ended 7/31/02 2.02% $1,732,204 0.55% 1.86% 0.65%
Year ended 7/31/03 1.02% $1,565,589 0.54% 1.02% 0.65%
================================================================================================================
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/99 4.53% $ 75,024 0.75% 4.39% 0.88%
Year ended 7/31/00 5.27% $ 215,082 0.77% 5.29% 0.87%
Year ended 7/31/01 5.14% $ 356,091 0.78% 4.86% 0.88%
Year ended 7/31/02 1.77% $ 447,556 0.80% 1.71% 0.89%
Year ended 7/31/03 0.76% $ 436,687 0.79% 0.77% 0.90%
================================================================================================================
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 3.10%* $ 1,021 1.53%** 3.63%** 1.63%**
Year ended 7/31/02 1.00% $ 1,893 1.55% 0.91% 1.64%
Year ended 7/31/03 0.32% $ 2,426 1.22% 0.33% 1.65%
================================================================================================================
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 0.19%* $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 0.32% $ 154 1.14% 0.32% 1.65%
================================================================================================================
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 1.02%* $ 2 0.89%** 1.23%** 0.96%**
Year ended 7/31/03 0.53% $ 62 1.02% 0.46% 1.15%
================================================================================================================
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 4.71%* $ 47,944 0.22%** 6.39%** 0.74%**
1/1/01 to 7/31/01(c) 2.84%* $ 71,778 0.22%** 4.78%** 0.68%**
Year ended 7/31/02 2.31% $ 189,530 0.22% 2.11% 0.65%
Year ended 7/31/03 1.35% $ 766,023 0.22% 1.24% 0.65%
================================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/98 5.17% $ 166,922 0.38% 5.03% 0.69%
Year ended 12/31/99 4.81% $ 215,401 0.37% 4.73% 0.65%
Year ended 12/31/00 6.03% $ 309,711 0.39% 5.92% 0.63%
1/1/01 to 7/31/01(c) 2.71%* $ 410,278 0.40%** 4.56%* 0.63%**
Year ended 7/31/02 2.05% $ 425,092 0.41% 2.03% 0.64%
Year ended 7/31/03 1.07% $ 616,999 0.40% 1.04% 0.65%
================================================================================================================
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/99 4.60% $ 252,987 0.56% 4.52% 0.67%
Year ended 7/31/00 5.31% $ 211,790 0.57% 5.17% 0.64%
Year ended 7/31/01 5.23% $ 238,816 0.55% 5.12% 0.60%
Year ended 7/31/02 1.79% $ 279,059 0.65% 1.75% 0.69%
Year ended 7/31/03 0.92% $ 275,107 0.61% 0.84% 0.66%
================================================================================================================
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/99 4.41% $ 381,105 0.75% 4.26% 0.92%
Year ended 7/31/00 5.10% $ 264,393 0.77% 4.93% 0.89%
Year ended 7/31/01 5.02% $ 248,064 0.75% 4.92% 0.85%
Year ended 7/31/02 1.58% $ 270,062 0.85% 1.57% 0.94%
Year ended 7/31/03 0.71% $ 177,390 0.81% 0.66% 0.91%
================================================================================================================
See notes to financial highlights
34-35 SPREAD
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
NET REALIZED
NET ASSET AND UNREALIZED LESS NET ASSET
VALUE, NET GAINS/ DISTRIBUTIONS VALUE,
BEGINNING INVESTMENT (LOSSES) FROM TO END OF
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS PERIOD
===============================================================================================================
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/99 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/00 $1.00 0.06 -- (0.06) $1.00
Year ended 7/31/01 $1.00 0.05 -- (0.05) $1.00
Year ended 7/31/02 $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 12/31/98 $1.00 0.03 -- (0.03) $1.00
Year ended 12/31/99 $1.00 0.03 -- (0.03) $1.00
Year ended 12/31/00 $1.00 0.04 -- (0.04) $1.00
1/1/01 to 7/31/01(b) $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 0.01 -- (0.01) $1.00
===============================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 12/31/98 $1.00 0.03 -- (0.03) $1.00
Year ended 12/31/99 $1.00 0.03 -- (0.03) $1.00
Year ended 12/31/00 $1.00 0.04 -- (0.04) $1.00
1/1/01 to 7/31/01(b) $1.00 0.02 -- (0.02) $1.00
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 0.01 -- (0.01) $1.00
===============================================================================================================
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
9/21/98(b) to 9/30/98 $1.00 --^ -- --^ $1.00
10/1/98(d) to 7/31/99 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/00 $1.00 0.04 -- (0.04) $1.00
Year ended 7/31/01 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES (e)
Year ended 9/30/98 $1.00 0.03 -- (0.03) $1.00
10/1/98(d) to 7/31/99 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/00 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/01 $1.00 0.03 -- (0.03) $1.00
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00
===============================================================================================================
See notes to financial highlights
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIOS OF RATIOS OF RATIO OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
TOTAL PERIOD NET TO AVERAGE NET
RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
================================================================================================================
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/99 4.68% $ 856,286 0.38% 4.57% 0.62%
Year ended 7/31/00 5.40% $ 871,657 0.38% 5.26% 0.62%
Year ended 7/31/01 5.30% $1,058,407 0.39% 5.08% 0.64%
Year ended 7/31/02 1.92% $1,143,352 0.41% 1.88% 0.64%
Year ended 7/31/03 1.02% $1,644,905 0.40% 0.98% 0.65%
================================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 12/31/98 3.06% $ 323,272 0.54% 3.00% 0.64%
Year ended 12/31/99 2.86% $ 292,619 0.53% 2.82% 0.63%
Year ended 12/31/00 3.73% $ 295,219 0.53% 3.67% 0.62%
1/1/01 to 7/31/01(b) 1.71%* $ 317,543 0.54%** 2.93%** 0.63%**
Year ended 7/31/02 1.41% $ 292,618 0.54% 1.41% 0.65%
Year ended 7/31/03 0.88% $ 247,805 0.54% 0.88% 0.67%
================================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 12/31/98 3.06% $ 346 0.54% 3.02% 0.64%
Year ended 12/31/99 2.86% $ 658 0.53% 2.82% 0.63%
Year ended 12/31/00 3.70% $ 160 0.54% 3.44% 0.63%
1/1/01 to 7/31/01(b) 1.57%* $ 215 0.79%** 2.67%** 0.88%**
Year ended 7/31/02 1.25% $ 177 0.70% 1.26% 0.91%
Year ended 7/31/03 0.78% $ 19 0.64% 0.90% 0.92%
================================================================================================================
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
9/21/98(b) to 9/30/98 2.74%* $ 7,953 0.63%* 3.09%** 0.63%**
10/1/98(d) to 7/31/99 2.24%* $ 17,682 0.61%* 2.66%** 0.94%**
Year ended 7/31/00 3.46% $ 100,995 0.31% 3.51% 0.83%
Year ended 7/31/01 3.44% $ 190,268 0.29% 3.33% 0.74%
Year ended 7/31/02 1.45% $ 249,280 0.34% 1.43% 0.77%
Year ended 7/31/03 0.91% $ 199,439 0.42% 0.92% 0.78%
================================================================================================================
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES (E)
Year ended 9/30/98 2.74% $ 44,494 0.71% 2.88% 0.71%
10/1/98(d) to 7/31/99 2.18%* $ 26,715 0.75%** 2.60%** 1.19%**
Year ended 7/31/00 3.40% $ 29,693 0.38% 3.33% 1.08%
Year ended 7/31/01 3.37% $ 40,981 0.36% 3.26% 0.99%
Year ended 7/31/02 1.38% $ 42,004 0.41% 1.35% 1.02%
Year ended 7/31/03 0.80% $ 53,079 0.52% 0.80% 1.03%
================================================================================================================
NOTES TO FINANCIAL HIGHLIGHTS
(a) During various periods, certain fees were voluntarily reduced. The ratios
shown do not include these voluntary fee reductions.
(b) Reflects date of commencement of operations.
(c) The Fund changed its fiscal year to July 31 from December 31.
(d) Reflects operations for the period from October 1, 1998 through July 31,
1999.
(e) Information for the period prior to September 21, 1998 is for the Tax
Exempt Money Market Fund, the predecessor fund of the Fifth Third Municipal
Money Market Fund.
* Not annualized.
** Annualized.
^ Amount less than $0.005.
See notes to financial statements
36-37 SPREAD
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees
of Fifth Third Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fifth Third Prime Money Market
Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional
Government Money Market Fund, Fifth Third Government Money Market Fund, Fifth
Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money
Market Fund and Fifth Third Municipal Money Market Fund (separate portfolios
constituting Fifth Third Funds, hereafter referred to as the "Funds") at July
31, 2003, the results of each of their operations for the year then ended, the
changes in each of their net assets and the financial highlights for each of the
periods in the two years then ended, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation and examination of
securities at July 31, 2003 by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion. The financial highlights of the
Fifth Third Prime Money Market Fund, Fifth Third Government Money Market Fund,
Fifth Third U.S. Treasury Money Market Fund and Fifth Third Municipal Money
Market Fund for the periods ended July 31, 2001 and prior were audited by other
independent auditors who have ceased operations. Those independent auditors
expressed an unqualified opinion on those statements in their report dated
September 7, 2001. The financial highlights of the Fifth Third Institutional
Money Market Fund, Fifth Third Institutional Government Money Market Fund and
Fifth Third Michigan Municipal Money Market Fund for the periods ended July 31,
2001 and prior were audited by other independent auditors who have ceased
operations. Those independent auditors expressed an unqualified opinion on those
statements in their report dated September 4, 2001.
PricewaterhouseCoopers LLP
Columbus, Ohio
September 16, 2003
38
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT *
The Trustees and Officers of the Funds, their ages, the position they hold with
the Funds, their term of office and length of time served, a description of
their principal occupations during the past five years, the number of portfolios
in the fund complex that the Trustee oversees and any other directorships held
by the Trustee are listed in the two tables immediately following. The business
address of the persons listed below is 3435 Stelzer Road, Columbus, Ohio
43219-3035
INDEPENDENT TRUSTEES
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX OTHER
NAME WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
AND AGE FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------
David J. Durham Trustee Indefinite, President and Chief 37 None
Birthdate: 5/10/1945 June 2001- Executive Officer of Clipper
Present Products, Inc., a wholesale
distributor, 1997-Present.
J. Joseph Hale Jr. Trustee Indefinite, President, Cinergy Foundation, 37 None
Birthdate: 9/11/1949 March November 2001-Present; President,
2001-Present Cinergy Corp., Cincinnati Gas &
Electric Co., The Union Light Heat
& Power Co., November 2000-
October 2001; Vice President,
Corporate Communications,
August 1996-June 2000.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 37 Printing
Birthdate: 12/5/1944 October Present; Business Industries of
2001- Present Management consultant, April America-Web Offset
2000-February 2002; President, Assoc., Director &
Metroweb Corp. (publications Master Printers of
printing) 1997-2000. America, Director.
INTERESTED TRUSTEE
Edward Burke Carey** Chairman-Board Indefinite, President of Carey Realty 37 The Foundation
Birthdate 7/2/1945 of Trustees January Investments, Inc. of the Catholic
1989-Present Diocese of
Columbus-Trustee
Ohio and Kentucky
Chapters of the
Counselors of Real
Estate-Trustee,
Chairman.
- ------------
* Additional disclosures can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
** Mr. Carey is treated by the Funds as an "interested person" (as defined in
Section 2(a)(19) of the 1940 Act) of the Funds and the Investment Advisor.
Mr. Carey is an "interested person" because of his business transactions
with Fifth Third Bank and its affiliates. Mr. Carey's wife owns shares of
Fifth Third Bank.
39
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
OFFICERS
TERM OF
POSITION(S) OFFICE AND
HELD LENGTH OF
NAME WITH THE TIME PRINCIPAL OCCUPATION(S)
AND AGE FUNDS SERVED DURING THE PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
C. David Bunstine President Indefinite, Employee of BISYS Fund
Birthdate: 7/30/65 March Services Limited Partnership
2003-Present since December 1987.
Russell D. Ungerman Vice President Indefinite, Trust Officer of Fifth Third Bank,
Birthdate: 2/9/1971 September 1998-Present; Trust Officer of
2002-Present Wilmington Trust Co., 1994-1998.
Rodney L. Ruehle Vice Indefinite, Employee of BISYS Fund
Birthdate: 4/26/1968 President and September Services Limited Partnership
Secretary 2001-Present since August 1995.
Adam S. Ness Treasurer Indefinite, Employee of BISYS Fund
Birthdate: 10/14/1972 September Services Limited Partnership
2001-Present since June 1998.
Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Services
Birthdate: 2/13/1962 and Assistant Treasurer September Limited Partnership since May 1995.
2001-Present
40
ADDRESSES
- ------------------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Money Market Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- ------------------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Administrator, Transfer and Dividend Disbursing Fifth Third Bank
Agent, Accountant and Custodian 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- ------------------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Sub-Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc.
and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Independent Auditors PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- ------------------------------------------------------------------------------------------
Logo: Fifth Third Funds
9/03
AR-MMF-03
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
AS OF THE END OF THE PERIOD COVERED BY THIS REPORT, JULY 31, 2003, FIFTH
THIRD FUNDS (THE "TRUST") HAD NOT ADOPTED A CODE OF ETHICS THAT APPLIES TO
THE TRUST'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER,
PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR
FUNCTIONS, REGARDLESS OF WHETHER THESE INDIVIDUALS ARE EMPLOYED BY THE
TRUST OR A THIRD PARTY. SUBSEQUENTLY, AT A SPECIAL BOARD MEETING HELD ON
AUGUST 12, 2003 (THE "SPECIAL BOARD MEETING"), THE BOARD
OF TRUSTEES OF THE TRUST (THE "BOARD") UNANIMOUSLY APPROVED AND ADOPTED A
"CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND PRINCIPAL FINANCIAL OFFICERS".
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert
serving on its audit committee; or
(ii) Does not have an audit committee financial expert
serving on its audit committee.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of
the audit committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory,
or other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does not
have an audit committee financial expert.
AS OF THE END OF THE PERIOD COVERED BY THIS REPORT, JULY 31, 2003, THE
TRUST DID NOT HAVE AN AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE. SUBSEQUENTLY, AT THE SPECIAL BOARD MEETING, THE BOARD APPOINTED
DAVID J. GRUBER AS TRUSTEE OF THE TRUST, EFFECTIVE UPON ELECTION BY
SHAREHOLDERS (SUCH SHAREHOLDER MEETING TO BE HELD ON OR ABOUT NOVEMBER 6,
2003). THE BOARD ALSO DETERMINED THAT MR. GRUBER (I) IS AN "AUDIT COMMITTEE
FINANCIAL EXPERT" AND (II) IS NOT AN "INTERESTED PERSON" OF THE TRUST AS
DEFINED IN SECTION 2(A)(19) OF THE INVESTMENT COMPANY ACT OF 1940.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser that
provides ongoing services to the registrant for each of the last two fiscal
years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER DECEMBER 15,
2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities. NOT APPLICABLE.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
IN THE OPINION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER, BASED ON THEIR EVALUATION, THE REGISTRANT'S DISCLOSURE CONTROLS AND
PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE (I)
THAT MATERIAL INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS CONSOLIDATED
SUBSIDIARIES, IS MADE KNOWN TO THEM BY OTHERS WITHIN THOSE ENTITIES,
PARTICULARLY DURING THE PERIOD IN WHICH THIS REPORT IS BEING PREPARED; AND (II)
THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS
RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED
IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the registrant's last fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control
over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL HALF-YEAR
(THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL REPORT) THAT
HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE
REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant
intends to satisfy the Item 2 requirements through filing of an
exhibit. CODE OF ETHICS IS ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
(b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule 30a-2(b)
under the Act of 1940. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Fifth Third Funds
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By (Signature and Title)* /s/ Adam S. Ness Adam S. Ness, Treasurer
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Date October 8, 2003
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ C. David Bunstine C. David Bunstine, President
------------------------------------------------------
Date October 8, 2003
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By (Signature and Title)* /s/ Adam S. Ness Adam S. Ness, Treasurer
-----------------------------------------------------
Date October 8, 2003
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* Print the name and title of each signing officer under his or her signature.