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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
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(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
------------
Date of fiscal year end: July 31
--------------------
Date of reporting period: July 31, 2004
-------------------
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).
[LOGO]:
5/3
5TH THIRD FUNDS
MONEY MARKET MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
July 31, 2004
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.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities and information regarding how
the Funds voted relating to portfolio securities during the most recent 12-month
period ended June 30 is available without charge, upon request, by calling
1-800-282-5706 or on the Securities and Exchange Commission's website at
http://www.sec.gov.
Schedules of Portfolio Investments for periods ending October 31 and April 30
will be available starting December 30, 2004, without charge, on the Securities
and Exchange Commission's website at http://www.sec.gov.
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 . . . . . . . . . . 19
Statements of Assets
and Liabilities. . . . . . . . . . . . . 20
Statements of Operations . . . . . . . . 22
Statements of Changes
in Net Assets. . . . . . . . . . . . . . 24
Notes to Financial Statements . . . . . . 28
Financial Highlights. . . . . . . . . . . 34
Report of Independent Registered
Public Accounting Firm . . . . . . . . . 40
Supplemental Information . . . . . . . . 41
OUR MESSAGE TO YOU
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[logo icon]:
5/3
FROM EUPHORIA TO
DESPAIR...
For the 12-month period ended July 31, 2004, investors experienced stock and
bond market returns not too dissimilar from historic averages. Stocks, as
represented by the S&P 500(R) Index1, enjoyed a total return of 13.17%, while
bonds, as represented by the Lehman Brothers Intermediate Government/Credit Bond
Index2, returned 3.60%.
The ride for many investors, however, may not have felt so smooth. The
influences on financial markets changed markedly from the first half of the
period to the second half. Where there was euphoria in the first six months,
seemingly grinding despair emerged in the latter months.
During the first half of the fiscal year, the economy saw tremendous growth from
the strong fiscal and monetary stimuli applied in early 2003. Gross Domestic
Product3 growth averaged over 6.00% in the second half of 2003-nearly double the
long-term average. For investors, we believe this type of environment generally
benefits small cap stocks, and, indeed, from August 2003 to January 2004, small
cap stocks climbed about 25.00%.
Within the second half of the period, economic growth trended back to its
historical average amid mixed signals about job growth and consumer demand. The
stock market struggled to make headway and although large cap stocks
outperformed small cap stocks from January 2004 to July 2004, both classes
posted slight declines.
Bond investors watched the yield of the benchmark 10-year Treasury change little
during the fiscal year, as it started at 4.41% and ended at 4.47%. Given the
strong economic growth in the second half of 2003, one would have assumed that
bond yields would be higher by July 2004, but other forces combined to keep
yields relatively low.
A likely inflection point for investors during the 12-month period occurred on
June 13, 2003, when the yield on the benchmark 10-year Treasury closed at 3.13%.
We are unlikely to see yields so low for many years, unless something goes so
horribly wrong with the war on terrorism that global commerce is disrupted.
One reason behind the extremely small bond yields was a 46-year low of 1.00% on
the Fed Funds Rate, the short-term lending rate set by the Federal Reserve (the
"Fed"). Additionally, a generational low of 1. 70% on the year-over-year growth
in the Consumer Price Index3 (CPI), a key measure of inflation, was reported in
February 2004. On June 30, 2004, the Fed began what we believe is likely to be a
lengthy tightening cycle by raising the Fed Funds Rate to 1.25%, and the
year-over-year CPI rate moved back up to the 3.00% range.
The close of our fiscal year finds many crosscurrents in financial markets
leading to a sense of anxiety about stock prices and bond yields as investors
appear focused on five main issues:
1. The rising price of oil
2. Terrorist threats
3. The outcome of the November election
4. The length and extent of the Fed tightening cycle
5. The durability of the economic expansion and corporate profit growth
1
Each of these crosscurrents has undermined, at times, what would historically
have been a sanguine investing environment, featuring:
o Corporate earnings increasing at a rate well above historical averages
o Corporate cash balances approaching $800 billion (four times 2000
levels), leading to healthy balance sheets
o Relatively low borrowing costs for businesses and consumers
o Narrow interest rate differentials between U.S. Treasury bonds and
comparable corporate bonds
Since 1960, the average economic expansion in the U.S. has lasted slightly
longer than seven years. The current economic expansion began in late 2001 and
is not yet three years old. If the economic expansion and corresponding
corporate profit cycle end prematurely, we believe it would be highly unusual.
We remain optimistic about the resiliency of the U.S. economy, as well as the
global growth outlook.
We appreciate the continued confidence of our customers, and we work everyday to
monitor financial markets 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. Designed to meet the varied needs of
our expanding customer base, these investments help diversify portfolios by
offering exposure to stocks, bonds, cash and alternative investments.
Ultimately, we believe that a welldiversified portfolio provides an investor
with the best opportunity to build wealth over time with a reasonable level of
risk.
Thank you for your continued confidence in Fifth Third Funds.
Sincerely,
/s/ Keith Wirtz
Keith Wirtz, CFA
Chief Investment Officer
/s/ John Augustine
John Augustine, CFA
Chief Investment Strategist
TERMS AND DEFINITIONS
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1 STANDARD & POOR'S 500(R) INDEX ("S&P 500(R) 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.
2 THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX is composed of
investment grade corporate 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 above indices 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
securities.
3 THE GROSS DOMESTIC PRODUCT measures the market value of the goods and services
produced by labor and property in the United States. THE CONSUMER PRICE INDEX
(CPI) is a measure of price changes in consumer goods and services such as
gasoline, food, and automobiles.
THE FOREGOING INFORMATION AND OPINIONS ARE FOR GENERAL INFORMATION ONLY. FIFTH
THIRD ASSET MANAGEMENT, INC. DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS,
NOR ASSUME LIABILITY FOR ANY LOSS, WHICH MAY RESULT FROM THE RELIANCE BY ANY
PERSON UPON ANY SUCH INFORMATION OR OPINIONS. SUCH INFORMATION AND OPINIONS ARE
SUBJECT TO CHANGE WITHOUT NOTICE, ARE FOR GENERAL INFORMATION ONLY AND ARE NOT
INTENDED AS AN OFFER OR SOLICITATION WITH RESPECT TO THE PURCHASE OR SALE OF ANY
SECURITY OR OFFERING OF INDIVIDUAL OR PERSONALIZED INVESTMENT ADVICE.
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
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MONEY MARKET FUNDS
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From a relative performance standpoint, the taxable Money Market Funds benefited
from a longer duration strategy, relative to respective peer groups, during the
first half of the period and a more defensive neutral stance thereafter as the
Federal Open Market Committee (FOMC) maintained an accommodative policy for much
of the period.
To fulfill the objective of principal preservation, the Prime Money Market Fund
and the Institutional Money Market Fund maintained a conservative orientation
with an emphasis on high quality securities.
To achieve the longer duration, the taxable Money Market Funds implemented a
bullet maturity structure aimed at fixed maturity dates in mid-2004. In
anticipation of an uptick in the Federal Funds rate, the Funds shifted gears in
early 2004 and gradually increased cash positions through the use of short
duration commercial paper, U.S. government agency discount notes and U.S.
Treasury Bills, as well as a notable exposure in longer dated floating rate
securities. In addition to enhancing yield, the floating rate securities
provided an interest rate hedge as the money market yield curve sharpened prior
to the FOMC move. Furthermore, the additional liquidity proved beneficial,
allowing the Funds to readily cope with volatile cash flows during a period of
economic uncertainty.
Similarly, the Michigan Municipal Money Market Fund and Municipal Money Market
Fund adhered to a conservative, high quality approach. Throughout the period,
both Funds maintained about a 70% weighting in weekly and daily municipal
floater issues, most of which are backed by banks, other financial institutions
and corporations. The balance was comprised of commercial paper, notes and bonds
carrying a maturity date within 397 days. Both Funds sought out added value
through smaller issues, which typically offer higher yields.+
Average maturity was kept at neutral or slightly longer levels, relative to
respective peer groups, although the limited supply of Michigan issues
occasionally made it difficult to maintain targeted levels in the state-specific
Fund. For the bulk of the first half of the period, there was little difference
between rates on weekly floaters and yields on 1-year notes, so it made little
sense to extend the average maturity. Through the first two quarters of 2004,
however, as expectations for a rate hike grew, relative yields increased
slightly.+
MATURITY COMPOSITION AS OF JULY 31, 2004
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WEIGHTED AVERAGE MATURITY+
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DAYS DAYS
AS OF 1/31/04 AS OF 7/31/04
Fifth Third Prime
Money Market Fund 55 43
Fifth Third Institutional
Money Market Fund 63 47
Fifth Third Institutional
Government Money Market Fund 56 44
Fifth Third Government
Money Market Fund 58 45
Fifth Third U.S. Treasury
Money Market Fund 51 37
Fifth Third Michigan Municipal
Money Market Fund 39 36
Fifth Third Municipal
Money Market Fund 54 29
+ Portfolio composition is subject to change.
INVESTMENT RISK CONSIDERATIONS
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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, the federal alternative minimum tax. 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.
3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
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MONEY MARKET MATURITY SCHEDULES
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as a percentage of value of investments+
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Institutional Michigan
Prime Institutional Government Government U.S. Treasury Municipal Municipal
Money Money Money Money Money Money Money
Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund
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Less than 8 days 55.4% 46.1% 38.5% 46.5% 68.7% 74.7% 76.5%
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8 to 14 Days 6.4% 4.0% 8.0% 6.1% -- -- --
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15 to 30 Days 9.3% 14.3% 8.4% 7.1% 2.8% 2.5% 1.7%
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31 to 180 Days 21.2% 27.0% 39.6% 36.4% 22.5% 14.9% 21.0%
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181 to 365 Days 7.7% 8.6% 5.5% 3.9% 6.0% 7.5% 0.8%
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366 to 397 Days -- -- -- -- -- 0.4% --
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+ Portfolio composition is subject to change.
4
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
---------- ----------
CERTIFICATES OF DEPOSIT (2.4%)
BNP Paribas Yankee CD,
1.39%, 8/5/04 $ 25,000 $ 25,000
Canadian Imperial Bank Yankee CD,
1.41%, 5/31/05 * 10,000 9,998
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TOTAL CERTIFICATES OF DEPOSIT 34,998
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COMMERCIAL PAPER (14.5%)
Citigroup, Inc., 1.15%, 8/3/04 ** 15,000 14,999
Credit Suisse First Boston, 1.31%,
8/2/04 ** 15,000 14,999
Deutsche Bank, 1.43%, 9/20/04 ** 10,000 9,980
Dexia Delware LLC, 1.31%, 8/11/04 ** 15,000 14,995
General Electric Capital Corp.,
1.38%, 8/26/04 ** 15,000 14,985
General Electric Capital Corp.,
1.81%, 12/8/04 ** 13,000 12,917
Goldman Sachs Group, Inc.,
1.30%, 8/13/04 ** 10,000 9,996
Goldman Sachs Group, Inc.,
1.37%, 8/25/04 ** 15,000 14,986
Nestle Capital Corp., 1.08%, 8/10/04 ** 15,000 14,996
Nestle Capital Corp., 1.73%, 2/22/05 ** 10,000 9,903
Northern Trust Corp., 1.42%, 9/14/04 ** 15,000 14,974
Royal Bank of Scotland, 1.14%, 8/6/04 ** 7,300 7,299
Toyota Motor Corp., 1.49%, 9/22/04 ** 15,000 14,968
Toyota Motor Corp., 1.51%, 10/1/04 ** 18,000 17,954
UBS Finance, Inc., 1.23%, 9/1/04 ** 8,400 8,391
Wells Fargo Bank, 1.32%, 8/12/04 ** 15,000 14,994
----------
TOTAL COMMERCIAL PAPER 211,336
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CORPORATE BONDS (31.8%)
Abbey National Treasury Service,
1.21%, 5/26/05 * 10,000 9,997
American Express Credit Corp.,
4.25%, 2/7/05 5,000 5,077
American Express Credit Corp.,
1.36%, 8/9/05 * 15,000 15,006
Amoco Canada, 6.75%, 2/15/05 6,000 6,166
Associates Corp., N.A.,
6.00%, 7/15/05 3,775 3,907
Bank of America Corp.,
7.88%, 5/16/05 10,270 10,765
Bayerische Landesbank, 1.38%, 9/27/04 * 25,000 25,003
Bayerische Landesbank, 4.13%, 1/14/05 6,600 6,683
Bear, Stearns & Co. Inc.,
7.63%, 2/1/05 9,487 9,775
Bear, Stearns & Co. Inc.,
1.91%, 3/18/05 * 5,460 5,474
Bear, Stearns & Co. Inc.,
1.38%, 9/5/05 * 20,000 20,000
Citigroup, Inc., 1.25%, 2/7/05 * 15,000 15,009
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
CORPORATE BONDS, CONTINUED
Coca-Cola Co., 4.00%, 6/1/05 $ 4,057 $ 4,113
Credit Suisse First Boston,
1.32%, 9/7/04 * 15,000 15,000
Credit Suisse First Boston,
1.48%, 2/8/05 * 20,000 20,035
Deutsche Bank, 1.31%, 2/18/05 * 16,350 16,360
E. I. Du Pont De Nemours,
6.75%, 10/15/04 10,000 10,111
General Electric Capital Corp.,
1.67%, 9/15/04 * 21,600 21,605
General Electric Capital Corp.,
4.25%, 1/28/05 10,000 10,139
Goldman Sachs Group, Inc.,
1.71%, 12/1/04 * 10,000 10,014
Goldman Sachs Group, Inc.,
7.50%, 1/28/05 15,850 16,274
IBM Corp., 1.54%, 9/10/04 * 18,525 18,528
International Lease Finance Corp.,
5.13%, 8/1/04 3,500 3,500
International Lease Finance Corp.,
4.75%, 1/18/05 27,260 27,669
Merrill Lynch & Co., 1.51%, 8/11/05 * 15,000 15,000
Morgan Stanley, 1.36%, 8/4/05 * 15,000 15,000
Morgan Stanley Dean Witter,
7.75%, 6/15/05 18,200 19,053
National City Bank, 1.68%, 10/25/04 * 20,000 20,003
National City Bank, 1.35%, 6/10/05 * 15,000 15,005
Northern Trust Co., 6.65%, 11/9/04 8,960 9,084
Societe Generale, 1.31%, 6/14/05 * 10,000 9,997
U.S. Bancorp, 6.88%, 12/1/04 7,650 7,787
Wal-Mart Stores, Inc., 6.55%, 8/10/04 13,150 13,167
Wells Fargo Co., 7.65%, 3/15/05 2,100 2,181
Wells Fargo Co., 6.50%, 6/1/05 5,000 5,172
Wells Fargo Co., 1.35%, 7/15/05 *(c) 25,000 25,000
----------
TOTAL CORPORATE BONDS 462,659
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DEMAND NOTES(c) (18.8%)
American Healthcare Funding, 1.40%,
5/1/27, (LOC: LaSalle Bank) * 5,705 5,705
Atlas Industries, Inc., 1.52%, 6/1/10,
(LOC: National City Bank) * 5,490 5,490
Beavercreek Enterprises, 1.52%, 3/2/20,
(LOC: National City Bank) * 4,450 4,450
Buckeye Corrugated, Inc., 1.53%,
10/1/17, (LOC: Key Bank) * 6,795 6,795
Capital One Funding Corp., 1.49%,
10/1/14, (LOC: Bank One) * 3,350 3,350
Capital One Funding Corp., 1.49%,
7/2/18, (LOC: Bank One) * 1,014 1,014
Capital One Funding Corp., 1.49%,
10/1/21, (LOC: Bank One) * 1,400 1,400
Continued
5
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
---------- ----------
DEMAND NOTES, CONTINUED
Capital One Funding Corp., 1.49%,
1/4/27, (LOC: Bank One) * $ 8,565 $ 8,565
Central Michigan Inns, 1.48%, 4/1/30,
(LOC: Michigan National Bank) * 2,120 2,120
Cornerstone Funding Corp., 1.51%,
12/1/11, (LOC: SunTrust) * 8,620 8,620
Cornerstone Funding Corp., 1.51%,
9/1/25, (Loc: SunTrust) * 5,750 5,750
Germain Properties, 1.49%, 3/1/31,
(LOC: Bank One) * 38,125 38,125
GTB Properties LLC, 1.67%, 7/1/23,
(LOC: National Australia Bank) * 4,665 4,665
Hannahville Indian Community, 1.49%,
6/1/13, (LOC: National City Bank) * 3,805 3,805
Harry W. Albright, Jr., 1.53%, 5/1/21,
(LOC: National Australia Bank) * 5,725 5,725
HWP Co., Ltd. Project, 1.52%,
12/3/18, (LOC: National City Bank) * 4,740 4,740
Idaho Associates LLC, 1.49%, 4/1/27,
(LOC: ABN / AMRO) * 5,950 5,950
Jackson 2000, 1.53%, 6/1/49,
(LOC: KeyBank) * 9,435 9,435
Kahala Senior Living Community,
1.50%, 11/15/33, (LOC: LaSalle Bank) * 30,000 30,000
Landmark Medical LLC, 1.52%, 1/1/21,
(LOC: Bank One) * 8,880 8,880
Lexington Financial Services, 1.55%,
2/1/26, (LOC: LaSalle Bank) * 9,400 9,400
MBE Investment Co., 1.53%, 3/1/50,
(LOC: National Australia Bank) * 5,000 5,000
Mr. K Enterprises, 1.67%, 9/1/16,
(LOC: National Australia Bank) * 6,875 6,875
Northside Christian Church, 1.52%,
4/1/30, (LOC: Bank One) * 7,130 7,130
PCI Paper Conversions, Inc., 1.53%,
4/1/10, (LOC: KeyBank) * 2,670 2,670
Pittsburgh Technical Institute, 1.52%,
10/1/15, (LOC: National City Bank) * 11,575 11,575
PRD Finance LLC, 1.49%, 4/1/27,
(LOC: National City Bank) * 8,020 8,020
Precision Tool and Die, 1.52%, 3/1/10,
(LOC: National City Bank) * 3,983 3,983
Royal Town Center LLC Project,
1.53%, 10/1/47, (LOC: Commerica Bank) * 5,095 5,095
SDB Private Residence, 1.30%, 3/1/28,
(LOC: US Bank) * 15,705 15,705
Second & Main, Ltd., 1.52%, 8/1/11,
(LOC: National City) * 1,775 1,775
Secor Realty, Inc., 1.52%, 4/1/20,
(LOC: National City Bank) * 9,855 9,855
SGS Tool Co., 1.52%, 12/1/12,
(LOC: Bank One) * 7,050 7,050
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
DEMAND NOTES, CONTINUED
Sharonville Realty Enterprises,
1.52%, 4/1/20, (LOC: Bank One) * $ 10,030 $ 10,030
Texas Disposal Systems, 1.48%, 5/1/12,
(LOC: Bank of America) * 1,600 1,600
Zeigler Realty LLC, 1.53%, 9/1/26,
(LOC: National City Bank) * 3,025 3,025
----------
TOTAL DEMAND NOTES 273,372
----------
MUNICIPAL BONDS (15.0%)
ARIZONA (0.8%)
Tempe Industrial Development
Authority Revenue, 1.48%, 7/1/34 *(c) 12,075 12,075
----------
CALIFORNIA (5.2%)
Riverside County, 1.37%, 11/1/20 * 7,400 7,400
Sacramento County, 1.36%, 7/1/20 * 17,490 17,490
Sacramento County, 1.36%, 7/1/22 * 32,430 32,430
San Jose Redevelopment Agency
Revenue, Merged Area, Series G,
1.45%, 8/1/29 * 19,000 19,000
----------
76,320
----------
GEORGIA (1.4%)
Brooks County Development Authority,
Industrial Development Revenue,
Langboard Inc. Project, 1.48%, 4/1/18 *(c) 10,000 10,000
Columbus Development Authority,
Industrial Revenue, Litho-Krome Project,
1.51%, 8/1/22 *(c) 10,125 10,125
----------
20,125
----------
ILLINOIS (0.9%)
Chicago, Series B, 1.50%, 1/1/19 *(c) 13,730 13,730
----------
INDIANA (0.5%)
Ball State University, 1.38%, 9/1/31 *(c) 7,000 7,000
----------
IOWA (0.7%)
Dallas County Industrial Development
Revenue, Sioux City Brick & Tile,
1.52%, 9/1/21 *(c) 9,980 9,980
----------
KANSAS (0.5%)
Park City Industrial Revenue, Hayes
Co., Inc., 1.38%, 9/15/16 * 7,300 7,300
----------
MICHIGAN (0.3%)
Hospital Association Financial Corp.,
1.58%, 11/1/30 *(c) 4,605 4,605
----------
Continued
6
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
NEBRASKA (0.8%)
Omaha Special Obligation, Riverfront
Redevelopment, 1.57%, 2/1/26 * $ 11,765 $ 11,765
----------
NEW YORK (0.5%)
Housing Finance Agency, 1.34%, 6/1/33 * 7,800 7,800
----------
NORTH CAROLINA (1.3%)
Roman Catholic Diocese, Series A,
1.53%, 6/1/18 *(c) 18,255 18,255
----------
NORTH DAKOTA (0.5%)
Ward County Health Care Facilities
Revenue, 1.38%, 7/1/31 *(c) 7,400 7,400
----------
OHIO (0.3%)
Cleveland-Cuyahoga County, Port
Authority Revenue, CBT Project,
1.53%, 6/1/31 *(c) 4,500 4,500
----------
TENNESSEE (0.6%)
Jackson Energy Authority,
1.48%, 10/1/25 *(c) 8,450 8,450
----------
VIRGINIA (0.4%)
Norfolk Redevelopment and Housing
Authority Revenue, 1.48%, 8/1/13 *(c) 5,785 5,785
----------
WASHINGTON (0.3%)
Housing Finance Community,
Multifamily Revenue, Monticello Park
Project, 1.50%, 8/1/26 *(c) 4,020 4,020
----------
TOTAL MUNICIPAL BONDS 219,110
----------
U.S. GOVERNMENT AGENCIES (3.4%)
FANNIE MAE (1.7%)
3.50%, 9/15/04 15,000 15,038
1.85%, 6/3/05 10,000 10,000
----------
25,038
----------
FEDERAL HOME LOAN BANK (1.7%)
1.60%, 12/30/04 15,000 15,000
1.51%, 2/2/05 10,000 10,000
----------
25,000
----------
TOTAL U.S. GOVERNMENT AGENCIES 50,038
----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------
REPURCHASE AGREEMENTS (11.2%)
State Street, 1.28%, 8/2/04
(Proceeds at maturity $13,451,
Collateralized by various U.S.
Government Agency securities) $ 13,450 $ 13,450
UBS Investment Bank, 1.36%, 8/2/04
(Proceeds at maturity $150,017,
Collateralized by various U.S.
Government Agency securities) 150,000 150,000
----------
TOTAL REPURCHASE AGREEMENTS 163,450
----------
MONEY MARKETS (2.7%)
AIM Funds Liquid Assets Portfolio -
Institutional Class 36,193,191 36,193
Goldman Sachs Financial Square
Prime Obligations Fund 2,821,188 2,821
----------
TOTAL MONEY MARKETS 39,014
----------
TOTAL INVESTMENTS (AMORTIZED
COST $1,453,977)(a) - 99.8% 1,453,977
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 2,599
----------
NET ASSETS - 100.0% $1,456,576
==========
See notes to schedule of portfolio investments and notes to financial
statements.
7
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
CERTIFICATES OF DEPOSIT (2.0%)
BNP Paribas Yankee CD, 1.39%, 8/5/04 $ 10,000 $ 10,000
Canadian Imperial Bank Yankee CD,
1.31%, 8/13/04 7,000 7,000
Canadian Imperial Bank Yankee CD,
1.41%, 5/31/05 * 5,000 4,999
----------
TOTAL CERTIFICATES OF DEPOSIT 21,999
----------
COMMERCIAL PAPER (16.5%)
ABN Amro North American Financial,
1.09%, 8/12/04 ** 10,000 9,997
Bear, Stearns & Co., Inc.,
1.35%, 8/16/04 ** 15,000 14,991
Benedictine Health Systems,
1.44%, 9/9/04 ** 7,020 7,009
Deutsche Bank, 1.08%, 8/13/04 ** 10,000 9,996
Deutsche Bank, 1.43%, 9/20/04 ** 15,000 14,971
General Electric Capital Corp.,
1.38%, 8/26/04 ** 15,000 14,985
General Electric Capital Corp.,
1.81%, 12/8/04 ** 10,000 9,936
Morgan Stanley Dean Witter,,
1.36%, 8/23/04 ** 10,000 9,992
Nestle Capital Corp., 1.09%, 8/10/04 ** 10,000 9,997
Northern Trust Corp., 1.42%, 9/14/04 ** 10,000 9,983
Prudential Funding Corp.,
1.42%, 8/30/04 ** 15,000 14,983
Purdue University, Indiana Research
Foundation, 1.33%, 8/11/04 5,250 5,250
Societe Generale, 1.40%, 9/1/04 ** 15,000 14,982
South Snohomish Public Facilities,
1.53%, 12/16/04(c) 8,600 8,600
Toyota Motor Corp., 1.49%, 9/22/04 ** 5,000 4,989
Toyota Motor Corp., 1.51%, 10/1/04 ** 7,000 6,983
UBS Financial, Inc., 1.40%, 9/7/04 ** 15,000 14,978
----------
TOTAL COMMERCIAL PAPER 182,622
----------
CORPORATE BONDS (30.9%)
Abbey National Treasury Service,
1.21%, 5/26/05 * 15,000 14,997
American Express Credit Corp.,
1.51%, 12/16/04 * 17,095 17,105
American Express Credit Corp.,
4.25%, 2/7/05 10,000 10,142
American Express Credit Corp.,
1.36%, 8/9/05 * 10,000 10,004
American General Corp.,
7.75%, 4/1/05 1,790 1,864
Amoco Co., 6.25%, 10/15/04 1,565 1,580
Bank of America Corp.,
1.91%, 10/22/04 * 8,400 8,406
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
CORPORATE BONDS, CONTINUED
Bank of America Corp.,
7.88%, 5/16/05 $ 5,967 $ 6,249
Bank One Corp., 7.63%, 8/1/05 2,490 2,616
Barclays Bank, 1.29%, 3/14/05 * 25,000 24,997
Bayerische Landesbank,
4.13%, 1/14/05 2,000 2,025
Bear, Stearns & Co. Inc.,
7.63%, 2/1/05 17,534 18,079
Bear, Stearns & Co. Inc., 1.38%, 9/5/05 * 15,000 15,000
BP Capital Markets PLC,
4.63%, 5/27/05 1,000 1,021
Chase Manhattan Corp,
6.75%, 12/1/04 3,425 3,485
Citigroup, Inc., 1.25%, 2/7/05 * 14,000 14,008
Credit Suisse First Boston,
1.48%, 2/8/05 * 5,000 5,009
Credit Suisse First Boston,
1.19%, 5/4/05 * 15,000 15,003
Deutsche Bank, 1.31%, 2/18/05 * 2,650 2,651
First Union Corp., 6.95%, 11/1/04 7,665 7,772
First Union Corp., 7.70%, 2/15/05 5,735 5,927
General Electric Capital Corp.,
7.25%, 2/1/05 6,000 6,174
Goldman Sachs Group, Inc.,
7.50%, 1/28/05 13,632 14,023
Household Finance Corp.,
1.32%, 7/5/05 * 15,000 15,000
International Lease Finance Corp.,
8.15%, 10/1/04 4,490 4,538
International Lease Finance Corp.,
2.84%, 1/13/05 * 15,995 16,080
International Lease Finance Corp.,
5.95%, 6/6/05 1,000 1,030
Mellon Bank, 7.50%, 6/15/05 1,875 1,959
Merrill Lynch & Co., 6.75%, 9/24/04 3,010 3,033
Merrill Lynch & Co., 1.32%, 2/23/05 * 6,300 6,300
Merrill Lynch & Co., 4.54%, 3/8/05 6,750 6,865
Morgan Stanley Dean Witter,
7.75%, 6/15/05 6,000 6,274
National City Bank, 1.68%, 10/25/04 * 10,000 10,002
Pepsico Inc., 4.50%, 9/15/04 10,300 10,340
Procter & Gamble Co., 6.60%, 12/15/04 1,000 1,020
Societe Generale, 1.31%, 6/14/05 * 15,000 14,995
Toyota Motor Credit Corp.,
4.10%, 9/8/04 5,000 5,014
U.S. Bancorp, 6.88%, 12/1/04 5,200 5,293
Wal-Mart Stores, Inc., 6.55%, 8/10/04 1,500 1,502
Wells Fargo Co., 1.60%, 3/24/05 * 15,000 15,010
Wells Fargo Co., 1.35%, 7/15/05 * 10,000 10,000
----------
TOTAL CORPORATE BONDS 342,392
----------
Continued
8
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
DEMAND NOTES(c) (6.3%)
Capital One Funding, 1.49%, 8/2/21,
(LOC: Bank One) * $ 4,757 $ 4,757
Capital One Funding, 1.49%, 4/1/26,
(LOC: Bank One) * 11,992 11,992
Cornerstone Funding Corp., 1.51%,
11/15/06, (LOC: SunTrust) * 4,649 4,649
Cornerstone Funding Corp., 1.51%,
1/1/34, (LOC: SunTrust) * 4,233 4,233
Gulf Gate Apartments, 1.50%, 9/1/28
(LOC: Wells Fargo) * 2,000 2,000
Heart Center Medical Group, 1.52%,
10/1/30 (LOC: National City Bank) * 3,438 3,438
Iowa 80 Group Inc., 1.40%, 6/1/16
(LOC: Wells Fargo) * 4,800 4,800
Jefferson Land Development, 1.57%,
10/1/16, (LOC: National City Bank) * 1,060 1,060
Kahala Senior Living Community,
1.50%, 11/15/33, (LOC: LaSalle Bank) * 10,750 10,750
MBE Investment Co., LLC, 1.53%,
2/1/51, (LOC: Comerica Bank) * 2,100 2,100
MCMC POB III-Mount Carmel
Partnership Project, 1.52%, 8/1/14,
(LOC: National City) * 1,895 1,895
New Belgium Brewing Co., 1.60%,
7/1/15, (LOC: KeyBank) * 4,280 4,280
Praise Tabernacle Outreach, 1.55%,
6/3/24 (LOC: Commercia Bank) * 3,950 3,950
Revenue Bond CTF Series Trust
Castlegate 3, 1.89%, 6/1/17 (LOC: AIG) * 1,270 1,270
Second & Main, Ltd., 1.52%, 8/1/11,
(LOC: National City) * 3,675 3,675
Vancouver Clinic Building,
1.45%, 2/1/24 (LOC: US Bank) * 4,800 4,800
----------
TOTAL DEMAND NOTES 69,649
----------
MUNICIPAL BONDS (22.9%)
ARIZONA (0.3%)
Tucson Airport Authority, Inc.,
1.48%, 12/1/18 *(c) 3,635 3,635
----------
CALIFORNIA (3.8%)
Kern Water Authority Revenue,
Series B, 1.50%, 7/1/28 *(c) 2,000 2,000
Sacramento County, 1.36%, 7/1/20 *(c) 7,220 7,220
Sacramento County, 1.36%, 7/1/22 *(c) 5,000 5,000
Sacramento County Housing Authority,
Multifamily Revenue, Natomas Park
Apartments, Series B, 1.51%, 7/15/35 *(c) 2,250 2,250
Saint Michael's Episcopal Day School,
1.50%, 7/1/28 *(c) 2,740 2,740
San Jose Financing Authority Lease
Revenue, Hayes Mansion, Phase B,
1.36%, 7/1/24 *(c) 8,000 8,000
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
Statewide Community Development
Authority, Multifamily Revenue, Dublin,
1.53%, 12/15/37 *(c) $ 5,010 $ 5,010
Statewide Community Development
Authority, Multifamily Revenue, Fairway
Properties, 1.53%, 12/15/37 *(c) 5,550 5,550
Statewide Community Development
Authority, Multifamily Revenue, Palms
Apartments, 1.49%, 5/15/35 *(c) 3,145 3,145
Statewide Community Development
Authority, Multifamily Revenue, Series
X-T, 1.51%, 10/15/32 *(c) 1,800 1,800
----------
42,715
----------
COLORADO (0.5%)
Denver City & County Airport Revenue,
Series D, 1.40%, 11/15/05 *(c) 3,100 3,100
Pueblo Housing Authority Purchasing
Revenue, 1.60%, 12/1/18 *(c) 2,000 2,000
----------
5,100
----------
FLORIDA (0.1%)
Lee County Industrial Development
Authority Revenue, Suncoast Aluminum,
Series B, 1.48%, 10/1/22 *(c) 1,055 1,055
----------
GEORGIA (2.3%)
Albany Dougherty, Payroll Development
Authority, 1.53%, 7/1/24 *(c) 5,035 5,035
Athens-Clarke County Industrial
Development Authority Revenue,
Leucadia Inc., Project, 1.45%, 7/1/07 *(c) 3,550 3,550
Atlanta Urban Residential Finance
Authority, 1.55%, 1/1/23 *(c) 700 700
Augusta Housing Authority Multifamily
Revenue, 1.58%, 5/15/33 *(c) 500 500
Municipal Gas Authority, 1.51%, 2/1/15 *(c) 15,530 15,530
----------
25,315
----------
ILLINOIS (0.2%)
Evanston, Maple Street Parking Facility,
1.45%, 12/1/21 *(c) 2,400 2,400
----------
INDIANA (2.8%)
Health Facilities Financing Authority
Revenue, 1.49%, 4/1/24 *(c) 5,500 5,500
Health Facilities Financing Authority,
Hospital Revenue, Community
Foundation of Northwest Indiana,
Series B, 1.50%, 8/1/25 *(c) 24,775 24,775
Continued
9
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Indianapolis Economic Development
Multifamily Housing Revenue, Series B,
1.55%, 11/1/36 *(c) $ 997 $ 997
----------
31,272
----------
IOWA (0.5%)
Finance Authority Retirement
Community Revenue, 1.50%, 12/1/20 *(c) 5,315 5,315
----------
KENTUCKY (2.2%)
Bardstown Industrial Revenue,
1.48%, 6/1/24 *(c) 7,950 7,950
Boone County Industrial Revenue,
1.55%, 6/1/23 *(c) 5,550 5,550
Property & Buildings Community
Revenue, Project No. 78,
1.38%, 10/1/04 10,345 10,345
----------
23,845
----------
MICHIGAN (2.1%)
Commerce Charter Township Downtown
Development, 1.57%, 10/1/18 *(c) 13,000 13,000
Grand Traverse Band Economic
Development Corp, 1.40%, 9/1/18 *(c) 7,600 7,600
Marquette County Economic
Development Corp., Limited Obligation
Revenue, Pioneer Laboratories, Series B,
1.67%, 6/1/07 *(c) 375 375
Strategic Fund, Limited Obligation
Revenue, Carpenter Enterprises,
1.49%, 10/1/05 *(c) 600 600
Strategic Fund, Limited Obligation
Revenue, Phipps Emmett Associates
LLC, 1.67%, 12/1/23 *(c) 750 750
Strategic Fund, Limited Obligation
Revenue, Waterland Battle Creek
Property, Series B, 1.67%, 6/1/25 *(c) 1,450 1,450
----------
23,775
----------
MINNESOTA (1.5%)
Minneapolis Taxable Pension,
1.45%, 12/1/13 *(c) 11,950 11,950
Plymouth Revenue, Carlson Center
Project, 1.45%, 4/1/12 *(c) 1,400 1,400
St. Paul Port Authority District,
1.48%, 3/1/22 *(c) 3,655 3,655
----------
17,005
----------
MISSISSIPPI (0.3%)
Business Finance Corp., Development
Revenue, 1.52%, 3/1/17 *(c) 3,100 3,100
----------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MISSOURI (0.6%)
Regal Convention & Sports Complex
Authority, 1.42%, 8/15/04 $ 4,115 $ 4,115
St. Louis County, Regal Convention &
Sports Complex Authority,
1.42%, 8/15/04 2,165 2,165
----------
6,280
----------
NEW MEXICO (0.2%)
Albuquerque Industrial Revenue,
KTECH Corp. Project, 1.50%, 11/1/22 *(c) 2,000 2,000
----------
NEW YORK (1.1%)
Housing Finance Agency, Service
Contract Revenue, Series F,
1.34%, 9/15/07 *(c) 6,200 6,200
Suffolk County, 4.00%, 12/1/04(c) 5,465 5,508
----------
11,708
----------
NORTH CAROLINA (1.4%)
Natural Gas, Series A, 2.00%, 3/1/05(c) 7,200 7,229
Roman Catholic Diocese, Series A,
1.48%, 6/1/18 *(c) 7,860 7,860
----------
15,089
----------
OHIO (0.6%)
Trumbull County, Eliwood Engineered
Casting, 1.30%, 12/1/06 * 6,500 6,500
----------
PENNSYLVANIA (0.4%)
Allegheny County, Industrial
Development Authority Revenue,
1.52%, 5/1/15 *(c) 2,700 2,700
Berks County Industrial Development
Authority Revenue, 1.60%, 7/1/16 *(c) 1,700 1,700
----------
4,400
----------
TEXAS (0.3%)
Alamo Heights Higher Education
Facilities Corp., 1.53%, 4/1/07 *(c) 2,375 2,375
Houston Health Facilities Development
Corp., 1.60%, 2/15/34 *(c) 1,310 1,310
----------
3,685
----------
UTAH (1.0%)
Telecommunication Infrastructure
Agency, 1.45%, 7/15/26 *(c) 7,000 7,000
Tooele City Industrial Development
Revenue, Series A, 1.45%, 10/1/22 *(c) 4,200 4,200
----------
11,200
----------
WASHINGTON (0.7%)
Eaglepointe Multifamily Housing
Revenue, 1.83%, 7/1/28 *(c) 1,610 1,610
Continued
10
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
WASHINGTON, CONTINUED
Housing Finance Community
Multifamily Housing Revenue, Everett,
Series B, 1.48%, 1/15/38 *(c) $ 2,000 $ 2,000
Housing Finance Community
Multifamily Revenue, Granite Falls,
Series B, 1.46%, 10/1/27 *(c) 1,325 1,325
Housing Finance Community
Multifamily Revenue, Summer Ridge,
Series B, 1.48%, 12/1/29 *(c) 935 935
Winterhill Multifamily Housing
Revenue, 1.83%, 7/1/28 *(c) 2,175 2,175
----------
8,045
----------
WISCONSIN (0.0%)
Neenah Industrial Development Revenue,
Galloway Co., 1.52%, 5/1/19 *(c) 115 115
----------
TOTAL MUNICIPAL BONDS 253,554
----------
U.S. GOVERNMENT AGENCIES (3.5%)
FANNIE MAE (1.0%)
3.50%, 9/15/04 3,140 3,149
6.21%, 10/1/04 3,000 3,025
1.19%, 10/6/04 ** 5,000 4,989
----------
11,163
----------
FEDERAL FARM CREDIT BANK (0.5%)
1.87%, 1/24/05 5,000 5,013
----------
FEDERAL HOME LOAN BANK (1.4%)
1.60%, 12/30/04 10,000 10,000
1.51%, 2/2/05 6,000 6,000
----------
16,000
----------
FREDDIE MAC (0.6%)
3.25%, 11/15/04 7,000 7,036
----------
TOTAL U.S. GOVERNMENT AGENCIES 39,212
----------
REPURCHASE AGREEMENTS (15.6%)
State Street, 1.28%, 8/2/04
(Proceeds at maturity $18,308,
Collateralized by various U.S.
Government Agency securities) 18,306 18,306
UBS Investment Bank, 1.36%, 8/2/04
(Proceeds at maturity $155,018,.
Collateralized by various U.S.
Government Agency securities) 155,000 155,000
----------
TOTAL REPURCHASE AGREEMENTS 173,306
----------
Continued
SHARES VALUE
---------- ----------
MONEY MARKETS (2.0%)
AIM Funds Liquid Assets Portfolio -
Institutional Class 20,501,530 $ 20,502
Goldman Sachs Financial Square Prime
Obligations Fund 1,543,418 1,543
----------
TOTAL MONEY MARKETS 22,045
----------
TOTAL INVESTMENTS (AMORTIZED
COST $1,104,779)(A) - 99.7% 1,104,779
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 2,893
----------
NET ASSETS - 100.0% $1,107,672
==========
See notes to schedule of portfolio investments
and notes to financial statements
11
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES (78.2%)
FANNIE MAE (30.8%)
1.08%, 8/6/04 ** $ 8,400 $ 8,399
1.06%, 8/11/04 ** 10,000 9,997
1.32%, 8/20/04 ** 8,300 8,294
1.34%, 8/27/04 ** 14,700 14,686
1.04%, 9/1/04 ** 20,000 19,979
1.35%, 9/8/04 ** 12,400 12,382
1.42%, 9/15/04 ** 8,600 8,585
3.50%, 9/15/04 10,000 10,024
1.46%, 9/22/04 ** 20,000 19,959
1.25%, 10/7/04 * 20,000 19,998
1.54%, 10/28/04 * 7,000 6,999
1.66%, 11/3/04 ** 5,000 4,979
1.11%, 12/10/04 ** 6,000 5,976
1.34%, 12/13/04 * 15,000 14,999
1.29%, 1/7/05 ** 2,330 2,317
1.15%, 2/4/05 ** 5,000 4,970
1.85%, 6/3/05 5,000 5,000
----------
177,543
----------
FEDERAL FARM CREDIT BANK (5.2%)
1.87%, 1/24/05 2,500 2,507
1.25%, 2/3/05 * 15,000 15,000
4.38%, 4/15/05 2,240 2,274
1.25%, 7/22/05 * 10,000 9,998
----------
29,779
----------
FEDERAL HOME LOAN BANK (24.6%)
4.63%, 8/13/04 8,500 8,509
6.25%, 8/13/04 2,650 2,654
1.29%, 8/20/04 ** 2,500 2,498
1.32%, 9/3/04 ** 15,000 14,982
1.42%, 9/20/04 * 15,000 14,999
1.11%, 10/1/04 ** 5,000 4,991
1.16%, 10/8/04 ** 3,400 3,393
4.13%, 11/15/04 6,000 6,052
3.88%, 12/15/04 10,100 10,190
1.43%, 12/17/04 * 10,000 10,000
1.53%, 1/5/05 * 10,000 10,000
4.13%, 1/14/05 10,900 11,027
1.51%, 2/2/05 3,000 3,000
4.38%, 2/15/05 4,000 4,067
1.35%, 3/22/05 6,000 5,975
1.40%, 3/29/05 6,380 6,350
1.51%, 3/30/05 * 15,000 15,000
1.36%, 7/26/05 * 8,000 7,998
----------
141,685
----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (15.0%)
1.10%, 8/3/04 ** $ 8,000 $ 8,000
1.25%, 8/9/04 ** 10,000 9,997
1.06%, 8/10/04 ** 10,000 9,997
1.36%, 8/24/04 ** 15,000 14,987
1.06%, 9/21/04 ** 10,000 9,982
4.20%, 10/1/04 2,000 2,009
1.16%, 10/7/04 ** 4,278 4,268
1.21%, 10/12/04 ** 9,000 8,976
1.11%, 10/18/04 ** 5,000 4,988
3.25%, 11/15/04 3,000 3,015
1.09%, 12/1/04 ** 3,000 2,989
1.70%, 12/21/04 ** 2,000 1,987
3.88%, 2/15/05 5,000 5,063
----------
86,258
----------
STUDENT LOAN MARKETING ASSOCIATION (2.6%)
1.41%, 10/21/04 * 15,000 15,000
----------
TOTAL U.S. GOVERNMENT AGENCIES 450,265
----------
REPURCHASE AGREEMENTS (20.3%)
State Street, 1.28%, 8/2/04
(Proceeds at maturity $11,955,
Collateralized by various U.S.
Government Agency securities) 11,954 11,954
UBS Investment Bank, 1.36%, 8/2/04
(Proceeds at maturity $105,012,
Collateralized by various U.S.
Government Agency securities) 105,000 105,000
----------
TOTAL REPURCHASE AGREEMENTS 116,954
----------
MONEY MARKETS (1.4%)
AIM Treasury Money Market Fund 7,989,825 7,990
----------
TOTAL MONEY MARKETS 7,990
----------
TOTAL INVESTMENTS (AMORTIZED
COST $575,209)(a) - 99.9% 575,209
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 488
----------
NET ASSETS - 100.0% $ 575,697
==========
See notes to schedule of portfolio investments
and notes to financial statements
12
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES (97.3%)
FEDERAL FARM CREDIT BANK (8.8%)
2.38%, 10/1/04 $ 2,500 $ 2,504
1.87%, 1/24/05 2,500 2,507
1.00%, 2/3/05 * 10,000 10,000
1.25%, 7/22/05 * 10,000 9,998
----------
25,009
----------
FEDERAL HOME LOAN BANK (60.3%)
1.10%, 8/4/04 ** 4,750 4,750
1.05%, 8/6/04 ** 10,000 9,998
1.22%, 8/11/04 ** 4,000 3,999
4.63%, 8/13/04 11,250 11,260
6.25%, 8/13/04 2,000 2,003
1.28%, 8/18/04 ** 10,000 9,994
1.33%, 8/20/04 ** 3,000 2,998
1.36%, 9/3/04 ** 6,000 5,993
1.38%, 9/10/04 ** 12,050 12,032
1.04%, 9/17/04 ** 5,000 4,993
1.11%, 10/1/04 ** 5,000 4,991
1.47%, 10/8/04 ** 4,325 4,313
3.63%, 10/15/04 7,025 7,054
1.97%, 10/20/04 2,500 2,504
1.46%, 11/12/04 3,250 3,252
4.13%, 11/15/04 6,045 6,095
2.13%, 12/15/04 5,000 5,010
1.54%, 12/17/04 * 10,000 10,000
1.60%, 12/30/04 1,600 1,600
1.53%, 1/5/05 * 15,000 14,999
4.13%, 1/14/05 15,150 15,332
1.51%, 2/2/05 3,000 3,000
1.88%, 2/15/05 2,910 2,920
4.00%, 2/15/05 3,200 3,246
1.48%, 3/21/05 * 2,000 2,000
1.38%, 3/28/05 2,000 1,992
1.51%, 3/30/05 * 10,000 10,000
1.37%, 4/25/05 * 5,000 5,000
----------
171,328
----------
STUDENT LOAN MARKETING ASSOCIATION (28.2%)
1.25%, 9/17/04 * 75,000 74,999
1.52%, 10/21/04 * 5,000 5,000
----------
79,999
----------
TOTAL U.S. GOVERNMENT AGENCIES 276,336
----------
MONEY MARKETS (2.5%)
Goldman Sachs Financial Square
Federal Fund 7,131,505 7,132
----------
TOTAL MONEY MARKETS 7,132
----------
TOTAL INVESTMENTS (AMORTIZED
COST $283,468)(a) - 99.8% 283,468
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 550
----------
NET ASSETS - 100.0% $ 284,018
==========
See notes to schedule of portfolio investments
and notes to financial statements
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------
TREASURY NOTES (19.4%)
6.00%, 8/15/04 $ 25,000 $ 25,046
2.13%, 8/31/04 40,000 40,030
1.88%, 9/30/04 40,000 40,041
5.88%, 11/15/04 45,000 45,611
2.00%, 11/30/04 45,000 45,102
1.75%, 12/31/04 40,000 40,045
1.63%, 1/31/05 35,000 35,068
7.50%, 2/15/05 35,000 36,145
1.63%, 3/31/05 35,000 35,102
----------
TOTAL TREASURY NOTES 342,190
----------
TREASURY BILLS (14.2%)**
0.98%, 8/5/04 40,000 39,996
1.02%, 8/26/04 25,000 24,983
1.03%, 9/9/04 50,000 49,945
1.10%, 10/14/04 30,000 29,933
1.27%, 11/4/04 15,000 14,950
1.36%, 11/18/04 15,000 14,939
1.58%, 12/16/04 35,000 34,785
1.61%, 1/6/05 25,000 24,825
1.73%, 1/20/05 15,000 14,877
----------
TOTAL TREASURY BILLS 249,233
----------
REPURCHASE AGREEMENTS (65.4%)(b)
ABN AMRO, 1.31%, 8/2/04 250,000 250,000
Barclays Capital, 1.31%, 8/2/04 235,000 235,000
Bear, Stearns & Co. Inc., 1.30%, 8/2/04 50,000 50,000
Credit Suisse First Boston, 1.30%, 8/2/04 60,000 60,000
Deutsche Bank, 1.30%, 8/2/04 225,000 225,000
Nesbitt Burns, 1.30%, 8/2/04 60,000 60,000
Societe Generale, 1.30%, 8/2/04 50,000 50,000
State Street, 1.26%, 8/2/04 16,015 16,015
UBS Investment Bank, 1.31%, 8/2/04 205,000 205,000
----------
TOTAL REPURCHASE AGREEMENTS 1,151,015
----------
MONEY MARKETS (0.9%)
AIM Treasury Money Market Fund 16,308,320 16,308
----------
TOTAL MONEY MARKETS 16,308
----------
TOTAL INVESTMENTS (AMORTIZED
COST $1,758,746)(a) - 99.9% 1,758,746
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 2,047
----------
NET ASSETS - 100.0% $1,760,793
==========
See notes to schedule of portfolio investments
and notes to financial statements
13
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
COMMERCIAL PAPER (6.1%)
MICHIGAN (6.1%)
Building Authority, 1.13%, 9/9/04 $ 10,000 $ 10,000
Modal, Series 2002 A, GO,
1.15%, 11/2/04 2,000 2,000
----------
TOTAL COMMERCIAL PAPER 12,000
----------
MUNICIPAL BONDS (86.5%)
MICHIGAN (82.0%)
Building Authority Revenue, Series I,
5.25%, 10/15/04 1,000 1,008
Building Authority Revenue, State
Police Communications III,
5.00%, 10/1/04 2,000 2,013
Deckerville Community School District,
GO, 2.00%, 5/1/05 305 307
Delhi Township, GO, 2.00%, 5/1/05 320 322
Detroit Economic Development Corp.,
1.08%, 3/1/29 * 510 510
Detroit Economic Development Corp.,
GO, 1.08%, 5/1/09 * 3,330 3,330
Detroit Waterfront Reclamation,
Series C, 1.23%, 5/1/09 * 7,405 7,407
Detroit, Series A, GO, 6.70%, 4/1/10 1,000 1,045
Farmington Hills Economic
Development Corp., Marketing Displays,
AMT, 1.60%, 9/1/08 * 830 830
Genesee County Economic Development
Corp., Rawcar Group,AMT,
1.21%, 5/1/20 * 2,365 2,365
Grand Valley State University Revenue,
Series B, 1.10%, 6/1/27 * 4,920 4,920
Holly Area School District, GO,
5.63%, 5/1/25 130 137
Holly Area School District,
Refunded-1999, GO, 5.38%, 5/1/12 820 852
Hospital Finance Authority Revenue
Balmoral, Inc., 1.50%, 9/1/16 * 555 555
Housing Development Authority, Hunt
Club Apartments, 1.13%, 7/15/35 * 500 500
Housing Development Authority, Ltd.,
1.10%, 6/1/25 * 500 500
Housing Development Authority, Ltd.,
1.13%, 1/1/29 * 3,900 3,900
Housing Development Authority, Rental
Housing Revenue, Series B, 1.09%,
4/1/19 * 810 810
Housing Development Authority,
Series A, 1.12%, 9/1/35 * 3,000 3,000
Housing Development Authority,
Series B, 1.22%, 12/1/04 1,200 1,200
Hurnon Valley School District, GO,
5.63%, 5/1/05 200 206
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Jackson County Economic Development
Corp., Limited Obligation Revenue,
Vista Grande Villa, Series A,
1.12%, 11/1/31 * $ 1,000 $ 1,000
Job Development, East Lansing,
1.20%, 12/1/14 * 300 300
Kalamazoo, Capital Improvement, GO,
2.00%, 4/1/05 235 236
Kalamazoo, GO, 3.00%, 4/1/05 395 400
Kent County Airport Facility Revenue,
Kent County International Airport,
AMT, 5.30%, 1/1/05 505 513
Kent County Airport Facility, Kent
County International Airport,AMT,
4.30%, 1/1/05 645 653
Kent County Airport Facility, Kent
County International Airport,AMT,
5.50%, 1/1/07 930 965
Kent County, Refuse Disposal System,
Series A, GO, 4.63%, 11/1/04 100 101
Lansing Economic Development Corp.,
LGH Office Building,AMT,
1.40%, 2/15/07 * 425 425
Leelanau County Economic
Development Corp., American
Community Mutual Insurance Co.,
1.65%, 6/15/06 * 660 660
Macomb County, St. Clair Shores
Drainage District, Series B, GO,
1.14%, 10/1/04 * 1,665 1,665
Marquette County Economic
Development Corp., Pioneer Labs, Inc.,
Series A,AMT, 1.29%, 6/1/12 * 900 900
Municipal Bond Authority Revenue,
Series B-1, 2.00%, 8/20/04 5,000 5,003
Oakland County Economic Development
Corp., Limited Obligation Revenue,
Moody Family Ltd.,AMT,
1.28%, 9/1/12 * 2,035 2,035
Oakland County Economic Development
Corp., North America,AMT,
1.23%, 7/1/18 * 1,900 1,900
Riverview Community School District,
GO, 2.00%, 5/1/05 860 864
Riverview, GO, 1.25%, 11/1/04 495 495
Rochester Hills Economic Development
Corp., 1.60%, 12/1/11 * 60 60
Southfield Public Schools, School
Building & Site, Series B, GO,
2.00%, 5/1/05 995 1,000
Continued
14
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
St. Clair Shores Economic Development
Corp., Borman's, Inc.,AMT,
1.90%, 10/6/06 * $ 505 $ 505
Sterling Heights Economic Development
Corp., Sterling Shopping Center,
1.10%, 12/1/10 * 785 785
Sterling Heights, GO, 3.80%, 10/1/04 175 176
Sterling Heights, GO, 4.00%, 10/1/04 890 894
Strategic Fund, Automatic Spring,
AMT, 1.29%, 9/1/10 * 1,550 1,550
Strategic Fund, Banks Hardwoods, Inc.,
AMT, 1.22%, 7/1/12 * 947 947
Strategic Fund, Baron Drawn Steel,
1.26%, 12/1/06 * 400 400
Strategic Fund, Biewer of Lansing,
AMT, 1.22%, 5/1/19 * 1,455 1,455
Strategic Fund, Brazing Concepts Co.,
AMT, 1.28%, 9/1/18 * 2,400 2,400
Strategic Fund, Camac LLC,AMT,
1.13%, 8/1/28 * 500 500
Strategic Fund, Cayman Chemical,
AMT, 1.21%, 6/1/28 * 1,000 1,000
Strategic Fund, Donnelly Corp.,
Series A,AMT, 1.20%, 3/1/10 * 2,500 2,500
Strategic Fund, Donnelly Corp.,
Series B,AMT, 1.15%, 4/1/08 * 2,500 2,500
Strategic Fund, E & L Meat Co.,
AMT, 1.23%, 3/1/29 * 2,175 2,175
Strategic Fund, Emerson Schools,
1.15%, 7/1/24 * 2,660 2,660
Strategic Fund, Environmental Powder
Co.,AMT, 1.23%, 7/1/22 * 345 345
Strategic Fund, Fitz-Land LLC,AMT,
1.21%, 8/1/25 * 2,695 2,695
Strategic Fund, Fleet Engineers Project,
AMT, 1.23%, 9/1/09 * 800 800
Strategic Fund, Forest City
Technologies,AMT, 1.21%, 9/1/15 * 2,100 2,100
Strategic Fund, Frederick Wolfgang,
AMT, 1.23%, 9/1/26 * 845 845
Strategic Fund, Glastender, Inc.,AMT,
1.28%, 9/1/08 * 700 700
Strategic Fund, HP Pelzer Inc.,
1.30%, 3/1/11 * 575 575
Strategic Fund, I.V.C. Industrial
Coatings,AMT, 1.30%, 12/1/12 225 225
Strategic Fund, Jedco, Inc.,AMT,
1.23%, 11/1/15 * 2,600 2,600
Strategic Fund, John Dekker & Sons,
AMT, 1.23%, 1/1/18 * 400 400
Strategic Fund, Joy Properties LLC,
1.28%, 5/1/17 * 300 300
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Kaspari Investments
LLC, 1.30%, 6/1/09 * $ 100 $ 100
Strategic Fund, Kazoo, Inc.,AMT,
1.35%, 3/15/07 * 260 260
Strategic Fund, Kundinger,AMT,
1.23%, 2/1/29 * 1,235 1,235
Strategic Fund, Kurdziel Iron,
1.26%, 5/1/10 * 900 900
Strategic Fund, Limited Obligation
Revenue, All American Property LLC,
AMT, 1.28%, 12/1/18 * 800 800
Strategic Fund, Limited Obligation
Revenue, Bowers Manufacturing Co.,
AMT, 1.30%, 9/1/10 * 300 300
Strategic Fund, Limited Obligation
Revenue, Creative Foam Corp.,AMT,
1.28%, 11/1/11 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc.,AMT,
1.28%, 8/1/04 * 300 300
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc.,AMT,
1.30%, 3/1/11 * 2,400 2,400
Strategic Fund, Limited Obligation
Revenue, Horizon Development
Project,AMT, 1.28%, 9/1/21 * 800 800
Strategic Fund, Limited Obligation
Revenue, Jet Enterprises,AMT,
1.23%, 3/1/11 * 800 800
Strategic Fund, Limited Obligation
Revenue, Metal Technologies Project,
1.21%, 7/1/19 * 2,200 2,200
Strategic Fund, Limited Obligation
Revenue, Midwest Kellering Co.
Project, 1.28%, 6/1/19 * 500 500
Strategic Fund, Limited Obligation
Revenue, Motor City Mold, Inc.
Project,AMT, 1.21%, 3/1/21 * 2,650 2,650
Strategic Fund, Limited Obligation
Revenue, Production Engineering
Project,AMT, 1.23%, 6/1/13 * 1,800 1,800
Strategic Fund, Limited Obligation
Revenue, R. L. Adams Plastics, Inc.,
AMT, 1.23%, 5/1/23 * 2,215 2,215
Strategic Fund, Limited Obligation
Revenue, River City Plastics, Inc.,
AMT, 1.30%, 3/1/21 * 2,210 2,210
Strategic Fund, Limited Obligation
Revenue, RL Enterprises LLC,AMT,
1.30%, 12/1/09 * 700 700
Continued
15
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, S.K.Y. Sakaiya Corp. Project,
AMT, 1.23%, 5/1/10 * $ 900 $ 900
Strategic Fund, MacArthur,AMT,
1.30%, 6/1/15 * 2,200 2,200
Strategic Fund, Maco Steel, Inc.,
AMT, 1.23%, 3/1/24 * 1,765 1,765
Strategic Fund, Merrill Group,AMT,
1.26%, 10/1/22 * 1,240 1,240
Strategic Fund, Middleville Tool & Die
Project,AMT, 1.28%, 9/1/13 * 2,900 2,900
Strategic Fund, Northern Pure Ice Co.,
AMT, 1.29%, 3/1/15 * 470 470
Strategic Fund, Patten Monument,
AMT, 1.23%, 11/1/26 * 780 780
Strategic Fund, Phipps Emmett
Association,AMT, 1.29%, 12/1/23 * 2,000 2,000
Strategic Fund, Proto-Techniques,
AMT, 1.23%, 12/1/26 * 2,700 2,700
Strategic Fund, Protomark Corp.
Project,AMT, 1.28%, 8/1/17 * 500 500
Strategic Fund, SFI Acquisition, Inc.,
AMT, 1.23%, 2/1/28 * 1,080 1,080
Strategic Fund, Solid Waste Disposal,
Grayling Generating,AMT,
1.11%, 1/1/14 * 3,302 3,302
Strategic Fund, Stegner East Investments
LLC Project,AMT, 1.23%, 6/1/29 * 3,135 3,135
Strategic Fund, Sunrise Windows, Ltd.,
AMT, 1.22%, 5/1/13 * 1,160 1,160
Strategic Fund, Thompson Family
Holdings,AMT, 1.26%, 7/1/28 * 955 955
Strategic Fund, Trenton Forging Co.,
AMT, 1.23%, 6/1/20 * 1,335 1,335
Strategic Fund, Trio Tool Co.,AMT,
1.20%, 7/1/24 * 1,325 1,325
Strategic Fund, Ultra Tech Printing Co.,
AMT, 1.23%, 8/1/23 * 1,275 1,275
Strategic Fund, Vincent Home Project,
1.08%, 8/1/28 * 2,000 2,000
Strategic Fund, Waltec American
Forgings,AMT, 1.30%, 10/1/09 * 1,700 1,700
Strategic Fund, Warren Screw Products,
Inc.,AMT, 1.28%, 9/1/16 * 400 400
Strategic Fund, Waterland,AMT,
1.49%, 6/1/25 * 1,000 1,000
Strategic Fund, Wayne Disposal,
AMT, 1.15%, 3/1/05 * 2,490 2,490
Strategic Fund, Wright K Technology,
Inc.,AMT, 1.26%, 5/1/17 * 695 695
Strategic Fund, YMCA Detroit Project,
1.18%, 5/1/31 * 1,000 1,000
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, YMCA Metropolitan
Detroit Project, 1.08%, 11/1/33 * $ 250 $ 250
Underground Storage Tank Financial
Assurance Authority, Series I,
6.00%, 5/1/05 4,000 4,139
University of Michigan Hospital
Revenue, Series A, 1.10%, 12/1/19 * 2,535 2,535
University of Michigan, Medical Service
Plan, Series A-1, 1.10%, 12/1/21 * 2,000 2,000
University of Michigan, Series A-2,
1.10%, 12/1/24 * 5,800 5,800
Warren Economic Development Corp.,
Limited Obligation, CMX Corp.,
AMT, 1.35%, 3/15/07 * 750 750
----------
161,875
----------
PUERTO RICO (4.5%)
Industrial Medical & Environmental
Pollution Control, Facilities Financing
Authority, Abbott Laboratories,
1.30%, 3/1/23 * 4,695 4,695
Industrial Medical & Environmental
Pollution Control, Facilities Financing
Authority, Merck Co., 1.25%, 12/1/18 * 4,200 4,200
----------
8,895
----------
TOTAL MUNICIPAL BONDS 170,770
----------
MONEY MARKETS (7.2%)
AIM Tax Free Money Market Fund 8,488 8
Dreyfus Tax Exempt Money
Market Fund 12,588,697 12,589
Federated Tax Exempt Money
Market Fund 1,444,442 1,444
Merrill Lynch Institutional Tax
Exempt Fund 79,061 79
----------
TOTAL MONEY MARKETS 14,120
----------
TOTAL INVESTMENTS (AMORTIZED
COST $196,890)(a) - 99.8% 196,890
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 353
----------
NET ASSETS - 100.0% $ 197,243
==========
See notes to schedule of portfolio investments
and notes to financial statements
16
\
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
COMMERCIAL PAPER (1.9%)
ARIZONA (1.9%)
Mesa, 1.19%, 11/15/04 $ 2,970 $ 2,970
----------
TOTAL COMMERCIAL PAPER 2,970
----------
MUNICIPAL BONDS (97.5%)
COLORADO (8.4%)
Arapahoe County Water and Wastewater
Authority Revenue, Series A,
1.11%, 12/1/33 * 1,500 1,500
Castlewood Ranch Metropolitan District,
1.15%, 12/1/34 * 1,500 1,500
Colorado Springs, Pikes Peak YMCA,
1.08%, 11/1/22 * 800 800
Colorado Springs, Revenue, National
Strength and Condition, 1.18%, 11/1/22 * 670 670
Commerce City, 1.30%, 12/31/31 * 2,140 2,140
Durango, Revenue, Health and Human
Services, 1.18%, 12/15/14 * 805 805
Educational and Cultural Facility
Authority Revenue, Community
Wireless Park City, 1.13%, 12/1/23 * 765 765
Grand Junction Revenue, 2.00%, 3/1/05 500 503
Holland Creek, 1.05%, 6/1/41 * 740 740
Pinery West Metropolitan District
No. 2, 1.20%, 12/1/32 * 3,200 3,200
Thornton Sales & Use Tax Revenue,
4.00%, 9/1/04 520 521
----------
13,144
----------
FLORIDA (1.0%)
University of Florida, Research
Foundation Inc., Capital Improvements
Revenue, 1.12%, 9/1/33 * 1,500 1,500
----------
ILLINOIS (21.8%)
Development Finance Authority,
4.50%, 9/1/04 750 752
Development Finance Authority,
1.15%, 4/1/32 * 2,000 2,000
Development Finance Authority
Revenue, McCormick Theological,
Series B, 1.15%, 6/1/35 * 2,000 2,000
Development Finance Authority
Revenue, St. Anne Place Project,
1.21%, 6/1/22 * 3,170 3,170
Development Finance Authority, WTVP
Channel 47, Series A Lake County
Family YMCA, 1.13%, 9/1/22 * 3,650 3,650
Educational Facilities Authority, Field
Museum of Natural History,
1.08%, 11/1/25 * 4,900 4,900
Galesburg, Knox College, 1.07%, 7/1/24 * 2,400 2,400
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
ILLINOIS, CONTINUED
Health Facilities Authority,
1.07%, 1/1/16 * $ 3,000 $ 3,000
Hopedale, Industrial Development,
Hopedale Medical Foundation,
1.12%, 5/1/09 * 940 940
Kane County, 4.50%, 1/1/05 150 152
Lake Villa, Allendale Association,
1.16%, 10/1/26 * 5,020 5,020
Peoria, Peoria Academy, 1.25%, 9/1/26 * 4,500 4,500
Springfield Community Improvement,
1.15%, 12/1/25 * 1,000 1,000
Winnebago County Health Care Facility
Revenue, Crusader Clinic, 1.12%, 1/1/17 * 450 450
----------
33,934
----------
INDIANA (17.3%)
Bond Banking Revenue, Advance
Program Notes, Series A,
2.00%, 1/25/05 5,000 5,022
Carmel High School Building Corp.,
First Meeting, 3.00%, 1/15/05 680 686
Crawfordsville, Economic Development,
Autumn Woods Apartments, Series A,
1.12%, 1/1/30 * 3,410 3,410
Development Financial Authority,
Mental Health, 1.18%, 12/1/22 * 3,800 3,800
Development Financial Authority,
Regional Council of Carpenters,
1.21%, 9/1/31 * 1,450 1,450
Educational Facilities Authority
Revenue, Indiana Wesleyan University,
Series A, 1.08%, 6/1/28 * 1,500 1,500
Greenfield, Economic Development,
1.37%, 9/1/05 * 230 230
Healthcare Facilities Revenue, Southern,
Indiana Rehabilitation Hospital,
1.25%, 4/1/20 * 1,750 1,750
Indianapolis, State Development Finance
Authority, Lutheran Educational
Facilities Project, 1.17%, 10/1/17 * 2,555 2,555
Michigan City School Building Corp.,
5.00%, 1/5/05 750 762
Rushville, Economic Development,
Flatrock River Lodge, Series A,
1.17%, 7/1/16 * 1,435 1,435
Saint Joseph County, Economic
Development Revenue, 1.18%, 6/1/22 * 2,700 2,700
Vincennes, Economic Development,
Lodge of the Wabash, 1.17%, 7/1/15 * 1,625 1,625
----------
26,925
----------
Continued
17
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
IOWA (1.5%)
Financial Authority Revenue,
5.00%, 8/1/04 $ 500 $ 500
Financial Authority, Diocese of Sioux
City, 1.08%, 3/1/19 * 1,740 1,740
Hills, Healthcare Revenue, Mercy
Hospital Project, 1.10%, 8/1/32 * 100 100
----------
2,340
----------
LOUISIANA (0.2%)
Energy & Power Authority,
5.25%, 1/1/05 125 127
New Orleans Parish School Board,
4.90%, 12/1/04 165 167
----------
294
----------
MICHIGAN (8.9%)
Hospital Finance Authority, Hospital
Equipment Loan Program, Series B,
1.07%, 5/1/30 * 2,700 2,700
Housing Development Authority, Rental
Housing Revenue, Series B,
1.09%, 4/1/19 * 1,700 1,700
Jackson, Public Schools State Aid
Notes, Series A, GO, 2.00%, 8/24/04 2,000 2,002
Mancelona Area Water, Sewer Authority,
Water Supply Systems Revenue,
1.16%, 4/1/21 * 1,035 1,035
Strategic Fund, Lions Bear Lake Camp
Project, 1.21%, 8/1/32 * 1,155 1,155
Strategic Fund, Vincent Home Project,
1.08%, 8/1/28 * 4,645 4,645
Strategic Fund, YMCA Metropolitan
Detroit Project, 1.08%, 11/1/33 * 600 600
----------
13,837
----------
MINNESOTA (4.8%)
Lauderdale, Childrens Home Society,
1.20%, 12/1/30 * 1,105 1,105
Minneapolis, Minnehaha Academy
Project, 1.20%, 5/1/26 * 3,600 3,600
Roseville Health Care Facilities
Revenue, Presbyterian Homes Project,
1.15%, 10/1/29 * 2,730 2,730
----------
7,435
----------
MISSOURI (1.2%)
State Health & Educational Facilities
Authority, Drury University,
1.15%, 8/15/28 * 1,800 1,800
State Health & Educational Facilities
Authority, Missouri Valley College,
1.15%, 10/1/31 * 100 100
----------
1,900
----------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
NORTH CAROLINA (1.9%)
Capital Facilities Finance Agency,
NCA&T University, 1.13%, 7/1/32 * $ 3,000 $ 3,000
----------
OHIO (11.9%)
Butler County, Bond Anticipation
Notes, Series A, GO, 2.00%, 3/11/05 500 503
Butler County, Healthcare Facilities,
1.10%, 5/1/27 * 2,000 2,000
Columbiana County, Revenue, East
Liverpool, 1.16%, 10/1/23 * 4,700 4,700
Coshocton County, Hospital Revenue,
1.25%, 3/1/14 * 225 225
Independence, Economic Development
Revenue, 1.16%, 12/1/16 * 2,185 2,185
Montgomery County, Economic
Development, Benjamin & Marian Arts
Center, Series A, 1.16%, 4/1/11 * 2,000 2,000
Montgomery County, Health Care
Facilities, Community Blood Center,
1.25%, 12/1/20 * 1,790 1,790
State Building Authority, State
Facilities, Highway Safety Building,
Series A, 5.00%, 10/1/04 1,000 1,006
State Higher Education Facilities
Revenue, Ashland University Project,
1.13%, 9/1/24 * 2,000 2,000
Summit County, Industrial Development
Revenue, SSP Fittings Corporate
Project, 1.25%, 9/1/11 * 1,080 1,080
Upper Arlington Bond Anticipation
Notes, Street Improvements,
2.00%, 1/12/05 1,000 1,004
----------
18,493
----------
OKLAHOMA (0.2%)
Municipal Power Authority, Power
Supply System Revenue, Series B,
2.00%, 1/1/05 250 251
----------
PENNSYLVANIA (2.1%)
Allegheny County, Individual
Development Authority Revenue, Sacred
Heart High School, 1.16%, 6/1/22 * 1,000 1,000
Higher Educational Facilities Authority
Revenue, Association of Independent
Colleges, Series F1, 1.07%, 5/1/20 * 1,700 1,700
Wallingford-Swarthmore School District,
2.00%, 11/15/04 500 501
----------
3,201
----------
Continued
18
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS, CONTINUED
TEXAS (5.1%)
Coppell Water & Sewer Revenue,
3.00%, 9/1/04 $ 500 $ 501
Galena Park Independent School District,
5.10%, 8/15/04 650 651
Harlingen, GO, 4.65%, 2/15/05 150 153
Public Finance Authority, Series A, GO,
6.50%, 10/1/04 2,000 2,018
Rockwall Waterworks & Sewer,
3.00%, 8/1/04 255 255
Saginaw, GO, 2.00%, 9/1/04 380 380
Tax & Revenue Anticipation Notes,
2.00%, 8/31/04 4,000 4,002
----------
7,960
----------
UTAH (0.8%)
Weber County Industrial Revenue,
Enable Industries, Inc., 1.18%, 12/1/15 * 1,185 1,185
----------
WASHINGTON (10.2%)
Bremerton Revenue, 1.13%, 12/1/28 * 3,100 3,100
Franklin County School District
No. 001, 2.00%, 12/1/04 475 476
Health Care Facilities Authority
Revenue, Inland Northwest Blood,
1.13%, 8/1/26 * 4,260 4,260
Higher Education Facilities Authority
Revenue, Seattle University Project,
2.00%, 11/1/04 2,470 2,476
King County School District No. 415,
2.00%, 12/1/04 750 752
Metropolitan Park District, Tacoma,
Series A, 2.00%, 12/1/04 545 547
Richland Gold Enterprises Revenue,
1.07%, 12/1/21 * 3,565 3,565
Tacoma Sewer Revenue, Series B,
5.60%, 12/1/04 300 304
Yakima Water & Sewer Revenue,
Series A, 2.00%, 11/1/04 445 446
----------
15,926
----------
WISCONSIN (0.2%)
Milwaukee County, Milwaukee Public
Museum, 1.08%, 6/1/29 * 350 350
----------
TOTAL MUNICIPAL BONDS 151,675
----------
Continued
SHARES VALUE
---------- ----------
MONEY MARKETS (0.4%)
AIM Tax Free Money Market Fund 19,807 $ 20
Dreyfus Tax Exempt Money
Market Fund 493,293 493
Federated Tax Exempt Money
Market Fund 147,253 147
----------
TOTAL MONEY MARKETS 660
----------
TOTAL INVESTMENTS (AMORTIZED
COST $155,305)(a) - 99.8% 155,305
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 331
----------
NET ASSETS - 100.0% $ 155,636
==========
NOTES TO SCHEDULES OF
PORTFOLIO INVESTMENTS
* Variable rate security. Rate presented represents the rate in effect at
July 31, 2004. Maturity date reflects the actual maturity date.
** Rate represents the effective yield at purchase.
(a) Also represents cost for federal income tax purposes.
(b) Proceeds at maturity range from $16,017 to $250,027. 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
LOC - Letter of Credit
LLC - Limited Liability Company
See notes to schedule of portfolio investments
and notes to financial statements
19
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
(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 $1,290,527 $ 931,473 $458,255
Repurchase agreements, at cost 163,450 173,306 116,954
--------- --------- --------
Total Investments, at value 1,453,977 1,104,779 575,209
Cash --^ 1 1
Interest receivable 4,273 4,069 1,093
Receivable from Advisor and affiliates 10 9 9
Prepaid expenses and other assets 54 12 21
--------- --------- --------
Total Assets 1,458,314 1,108,870 576,333
--------- --------- --------
LIABILITIES:
Distributions payable 991 1,010 461
Accrued expenses and other payables:
Payable to Advisor and affiliates 534 110 61
Distribution and administrative services fees 86 8 59
Other 127 70 55
--------- --------- --------
Total Liabilities 1,738 1,198 636
--------- --------- --------
NET ASSETS:
Paid-in Capital $1,456,491 $1,107,643 $575,690
Accumulated net investment income 85 29 7
Accumulated net realized gain/(loss)
from investment transactions -- -- --
--------- --------- --------
Net Assets $1,456,576 $1,107,672 $575,697
========= ========= ========
Net Assets:
Institutional Shares $1,064,622 $1,049,608 $223,852
Class A Shares 387,424 NA NA
Class B Shares 1,651 NA NA
Class C Shares 2,843 NA NA
Advisor Shares 36 NA NA
Select Shares NA 13,267 5,202
Preferred Shares NA 27,206 276,373
Trust Shares NA 17,591 70,270
--------- --------- --------
Total $1,456,576 $1,107,672 $575,697
========= ========= ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 1,064,602 1,049,580 223,848
Class A Shares 387,401 NA NA
Class B Shares 1,651 NA NA
Class C Shares 2,843 NA NA
Advisor Shares 36 NA NA
Select Shares NA 13,267 5,202
Preferred Shares NA 27,206 276,372
Trust Shares NA 17,591 70,269
--------- --------- --------
Total 1,456,533 1,107,644 575,691
========= ========= ========
Net Asset Value
Offering and redemption price per share-- Institutional
Shares, Class A Shares, Class B Shares, Class C
Shares, Advisor Shares, Select Shares, Preferred
Shares and Trust Shares (a) $ 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 is less than five hundred dollars.
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
(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 $283,468 $ 607,731 $196,890 $155,305
Repurchase agreements, at cost -- 1,151,015 -- --
-------- ---------- -------- --------
Total Investments, at value 283,468 1,758,746 196,890 155,305
Cash -- --^ -- --
Interest receivable 809 3,871 539 457
Receivable from Advisor and affiliates -- 8 2 4
Prepaid expenses and other assets 29 36 5 26
-------- ---------- -------- --------
Total Assets 284,306 1,762,661 197,436 155,792
-------- ---------- -------- --------
LIABILITIES:
Distributions payable 148 1,365 101 90
Accrued expenses and other payables:
Payable to Advisor and affiliates 91 178 70 41
Distribution and administrative services fees 19 183 --^ 6
Other 30 142 22 19
-------- ---------- -------- --------
Total Liabilities 288 1,868 193 156
-------- ---------- -------- --------
NET ASSETS:
Paid-in Capital $284,024 $1,760,951 $197,253 $155,641
Accumulated net investment income -- -- (10) --
Accumulated net realized gain/(loss)
from investment transactions (6) (158) -- (5)
-------- ---------- -------- --------
Net Assets $284,018 $1,760,793 $197,243 $155,636
======== ========== ======== ========
Net Assets:
Institutional Shares $173,865 $399,195 $197,225 $136,302
Class A Shares 110,153 NA 18 17,590
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 93,233 NA 863
Preferred Shares NA 1,102,963 NA 637
Trust Shares NA 165,402 NA 244
-------- ---------- -------- --------
Total $284,018 $1,760,793 $197,243 $155,636
======== ========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 173,927 399,130 197,184 136,297
Class A Shares 110,217 NA 18 17,605
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 93,231 NA 863
Preferred Shares NA 1,102,948 NA 637
Trust Shares NA 165,399 NA 244
-------- ---------- -------- --------
Total 284,144 1,760,708 197,202 155,646
======== ========== ======== ========
Net Asset Value
Offering and redemption price per share-- Institutional
Shares, Class A Shares, Class B Shares, Class C
Shares, Advisor Shares, Select Shares, Preferred
Shares and Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ======== ========
See notes to financial statements
20-21[SPREAD]
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
FUND FUND MARKET FUND
-------------- -------------- --------------------
INVESTMENT INCOME:
Interest income $19,981 $10,747 $6,319
Dividend income 540 257 149
------- ------ ------
Total Investment Income 20,521 11,004 6,468
------- ------ ------
EXPENSES:
Investment advisory fees 6,937 3,680 2,322
Administrative fees 3,002 1,592 1,005
Distribution services fees--Class A Shares 1,005 NA NA
Distribution services fees--Class B Shares 19 NA NA
Distribution services fees--Class C Shares 8 NA NA
Distribution services fees--Advisor Shares --^ NA NA
Administrative services fees--Class C Shares 3 NA NA
Administrative services fees--Select Shares NA 5 4
Administrative services fees--Preferred Shares NA 17 347
Administrative services fees--Trust Shares NA 23 172
Accounting fees 309 203 148
Transfer and dividend disbursing agent fees 463 250 168
Custody fees 72 55 45
Trustees' fees and expenses 32 17 12
Other expenses 557 180 181
------- ------ ------
Total expenses 12,407 6,022 4,404
------- ------ ------
Less: Waiver and/or reimbursement
from Advisor and/or affiliates (2,008) (3,953) (2,355)
Distribution services--Class A Shares,
Class B Shares, Class C Shares and
Advisor Shares waived (17) -- --
------- ------ ------
Net Expenses 10,382 2,069 2,049
------- ------ ------
Net Investment Income 10,139 8,935 4,419
------- ------ ------
Net realized gains/(losses) on
investment transactions 30 14 1
------- ------ ------
Change in net assets resulting from operations $10,169 $8,949 $4,420
======= ====== ======
- ---------------------
^ Amount is less than five hundred dollars.
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
(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 $4,113 $17,929 $2,383 $2,244
Dividend income 95 217 58 56
------ -------- ------ ------
Total Investment Income 4,208 18,146 2,441 2,300
------ -------- ------ ------
EXPENSES:
Investment advisory fees 1,547 6,899 867 1,093
Administrative fees 669 2,985 375 378
Distribution services fees--Class A Shares 360 NA --^ 84
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
Administrative services fees--Select Shares NA 50 NA 1
Administrative services fees--Preferred Shares NA 1,262 NA --^
Administrative services fees--Trust Shares NA 299 NA 6
Accounting fees 93 293 61 87
Transfer and dividend disbursing agent fees 113 453 63 86
Custody fees 30 124 26 28
Trustees' fees and expenses 8 34 4 4
Other expenses 123 437 56 81
------ -------- ------ ------
Total expenses 2,943 12,836 1,452 1,848
------ -------- ------ ------
Less: Waiver and/or reimbursement
from Advisor and/or affiliates (187) (6,839) (282) (930)
Distribution services--Class A Shares,
Class B Shares, Class C Shares and
Advisor Shares waived (72) -- --^ --
------ -------- ------ ------
Net Expenses 2,684 5,997 1,170 918
------ -------- ------ ------
Net Investment Income 1,524 12,149 1,271 1,382
------ -------- ------ ------
Net realized gains/(losses) on
investment transactions 89 27 -- 12
------ -------- ------ ------
Change in net assets resulting from operations $1,613 $12,176 $1,271 $1,394
====== ======== ====== ======
See notes to financial statements
22-23 [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,
2004 2003 2004(a) 2003 2004(a) 2003
--------- --------- --------- --------- --------- --------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 10,139 $ 20,745 $ 8,935 $ 7,067 $ 4,419 $ 5,875
Net realized gains/(losses) from
investment transactions 30 55 14 4 1 7
--------- --------- --------- --------- --------- --------
Change in net assets resulting
from operations 10,169 20,800 8,949 7,071 4,420 5,882
--------- --------- --------- --------- --------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (8,538) (17,318) (8,709) (7,067) (2,186) (5,875)
Class A Shares (1,594) (3,247) NA NA NA NA
Class B Shares (4) (7) NA NA NA NA
Class C Shares (3) (1) NA NA NA NA
Advisor Shares --^ --^ NA NA NA NA
Select Shares NA NA (60) NA (40) NA
Preferred Shares NA NA (97) NA (1,740) NA
Trust Shares NA NA (69) NA (453) NA
--------- --------- --------- --------- --------- --------
Change in net assets from
shareholder distributions (10,139) (20,573) (8,935) (7,067) (4,419) (5,875)
--------- --------- --------- --------- --------- --------
Change in net assets from fund
share transactions (548,372) (177,024) 341,635 576,489 (41,303) 191,900
--------- --------- --------- --------- --------- --------
Change in net assets (548,342) (176,797) 341,649 576,493 (41,302) 191,907
NET ASSETS:
Beginning of period 2,004,918 2,181,715 766,023 189,530 616,999 425,092
--------- --------- --------- --------- --------- --------
End of period $1,456,576 $2,004,918 $1,107,672 $ 766,023 $ 575,697 $ 616,999
========= ========= ========= ========= ========= =========
Accumulated Net Investment Income $ $ 85 $ -- $ 29 $ 11 $ 7 $ --
========= ========= ========= ========= ========= =========
- --------------------------------------------------------------------------------
(a)Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select Shares, Preferred
Shares and Trust Shares.
^ Amount is less than five hundred dollars.
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL
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,
2004 2003 2004(a) 2003 2004 2003
--------- --------- --------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,524 $ 3,518 $ 12,149 $ 13,711 $ 1,271 $ 2,209
Net realized gains/(losses) from
investment transactions 89 24 27 6 -- --
--------- --------- --------- --------- --------- ---------
Change in net assets resulting
from operations 1,613 3,542 12,176 13,717 1,271 2,209
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (1,109) (2,495) (5,196) (13,711) (1,271) (2,210)
Class A Shares (370) (1,336) NA NA --^ (1)
Class B Shares NA NA NA NA NA NA
Class C Shares NA NA NA NA NA NA
Advisor Shares NA NA NA NA NA NA
Select Shares NA NA (476) NA NA NA
Preferred Shares NA NA (5,778) NA NA NA
Trust Shares NA NA (699) NA NA NA
--------- --------- --------- --------- --------- ---------
Change in net assets from
shareholder distributions (1,479) (3,831) (12,149) (13,711) (1,271) (2,211)
--------- --------- --------- --------- --------- ---------
Change in net assets from fund
share transactions (168,613) (96,335) 115,861 501,547 (50,581) (44,969)
--------- --------- --------- --------- --------- ---------
Change in net assets (168,479) (96,624) 115,888 501,553 (50,581) (44,971)
NET ASSETS:
Beginning of period 452,497 549,121 1,644,905 1,143,352 247,824 292,795
--------- --------- --------- --------- --------- ---------
End of period $ 284,018 $ 452,497 $1,760,793 $1,644,905 $ 197,243 $ 347,824
========= ========= ========= ========= ========= =========
Accumulated Net Investment Income $ -- $ 8 $ -- $ -- $ (10) $ (10)
========= ========= ========= ========= ========= =========
MUNICIPAL
MONEY MARKET
FUND
---------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2004(a) 2003
--------- --------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,382 $ 2,373
Net realized gains/(losses) from
investment transactions 12 (1)
--------- --------
Change in net assets resulting
from operations 1,394 2,372
--------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (1,226) (2,057)
Class A Shares (142) (286)
Class B Shares NA NA
Class C Shares NA NA
Advisor Shares NA NA
Select Shares (5) NA
Preferred Shares (1) NA
Trust Shares (10) NA
--------- --------
Change in net assets from
shareholder distributions (1,384) (2,343)
--------- --------
Change in net assets from fund
share transactions (96,892) (38,795)
--------- --------
Change in net assets (96,882) (38,766)
NET ASSETS:
Beginning of period 252,518 291,284
--------- ---------
End of period $ 155,636 $ 252,518
========= =========
Accumulated Net Investment Income $ -- $ 2
========= =========
See notes to financial statements
24-25 [SPREAD]
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(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,
2004 2003 2004(a) 2003 2004(a) 2003
---------- ---------- ---------- ---------- ---------- ----------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 2,769,748 3,514,437 3,760,386 2,541,319 1,244,240 1,977,111
Dividends reinvested 786 1,927 3,555 1,984 378 1,816
Shares redeemed (3,271,523) (3,683,165) (3,480,370) (1,966,814) (1,637,764) (1,787,027)
---------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (500,989) (166,801) 283,571 576,489 (393,146) 191,900
---------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 304,072 870,263 NA NA NA NA
Dividends reinvested 1,542 3,559 NA NA NA NA
Shares redeemed (354,892) (884,736) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares (49,278) (10,914) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 1,096 1,907 NA NA NA NA
Dividends reinvested 4 7 NA NA NA NA
Shares redeemed (1,875) (1,381) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares (775) 533 NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 5,367 8,231 NA NA NA NA
Dividends reinvested 2 1 NA NA NA NA
Shares redeemed (2,680) (8,138) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 2,689 94 NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 62 138 NA NA NA NA
Dividends reinvested --^ --^ NA NA NA NA
Shares redeemed (88) (78) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares (26) 60 NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 46,190 NA 68,664 NA
Dividends reinvested NA NA 41 NA --^ NA
Shares redeemed NA NA (32,964) NA (63,462) NA
---------- ---------- ---------- ---------- ---------- ----------
Total Select Shares NA NA 13,267 NA 5,202 NA
---------- ---------- ---------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 109,370 NA 1,186,580 NA
Dividends reinvested NA NA 66 NA 590 NA
Shares redeemed NA NA (82,230) NA (910,798) NA
---------- ---------- ---------- ---------- ---------- ----------
Total Preferred Shares NA NA 27,206 NA 276,372 NA
---------- ---------- ---------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 90,278 NA 861,501 NA
Dividends reinvested NA NA 54 NA 32 NA
Shares redeemed NA NA (72,741) NA (791,264) NA
---------- ---------- ---------- ---------- ---------- ----------
Total Trust Shares NA NA 17,591 NA 70,269 NA
---------- ---------- ---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------
(a) Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select Shares, Preferred
Shares and Trust Shares.
* Share transactions are at a par value of $1.00 per share.
^ Amount is less than five hundred shares.
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
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,
2004 2003 2004(a) 2003
--------- --------- ---------- ----------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 380,768 378,580 1,990,678 3,686,175
Dividends reinvested 32 93 342 1,187
Shares redeemed (482,127) (382,443) (3,236,738) (3,185,815)
--------- --------- ---------- ----------
Total Institutional Shares (101,327) (3,770) (1,245,718) 501,547
--------- --------- ---------- ----------
Class A Shares
Shares issued 164,601 197,984 NA NA
Dividends reinvested 332 1,489 NA NA
Shares redeemed (232,219) (292,038) NA NA
--------- --------- ---------- ----------
Total Class A Shares (67,286) (92,565) 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
--------- --------- ---------- ----------
Select Shares
Shares issued NA NA 566,393 NA
Dividends reinvested NA NA --^ NA
Shares redeemed NA NA (473,162) NA
--------- --------- ---------- ----------
Total Select Shares NA NA 93,231 NA
--------- --------- ---------- ----------
Preferred Shares
Shares issued NA NA 3,405,308 NA
Dividends reinvested NA NA 632 NA
Shares redeemed NA NA (2,302,992) NA
--------- --------- ---------- ----------
Total Preferred Shares NA NA 1,102,948 NA
--------- --------- ---------- ----------
Trust Shares
Shares issued NA NA 1,327,544 NA
Dividends reinvested NA NA 2 NA
Shares redeemed NA NA (1,162,147) NA
--------- --------- ---------- ----------
Total Trust Shares NA NA 165,399 NA
--------- --------- ---------- ----------
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,
2004 2003 2004(a) 2003
--------- --------- --------- --------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 413,265 413,441 422,435 395,321
Dividends reinvested 509 1,081 92 105
Shares redeemed (464,354) (459,333) (485,670) (445,294)
--------- --------- --------- --------
Total Institutional Shares (50,580) (44,811) (63,143) (49,868)
--------- --------- --------- --------
Class A Shares
Shares issued 209 97 120,106 165,303
Dividends reinvested -- 1 141 297
Shares redeemed (210) (257) (155,739) (154,527)
--------- --------- --------- --------
Total Class A Shares (1) (159) (35,492) 11,073
--------- --------- --------- --------
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
--------- --------- --------- --------
Select Shares
Shares issued NA NA 15,021 NA
Dividends reinvested NA NA 1 NA
Shares redeemed NA NA (14,159) NA
--------- --------- --------- --------
Total Select Shares NA NA 863 NA
--------- --------- --------- --------
Preferred Shares
Shares issued NA NA 637 NA
Dividends reinvested NA NA --^ NA
Shares redeemed NA NA --^ NA
--------- --------- --------- --------
Total Preferred Shares NA NA 637 NA
--------- --------- --------- --------
Trust Shares
Shares issued NA NA 17,815 NA
Dividends reinvested NA NA --^ NA
Shares redeemed NA NA (17,571) NA
--------- --------- --------- --------
Total Trust Shares NA NA 244 NA
--------- --------- --------- --------
26 -27 [SPREAD]
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2004
- --------------------------------------------------------------------------------
(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, 2004, the
Trust consisted of thirty-five 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 Government Money Market Fund and the Michigan Municipal Money Market Fund
offer two classes of shares: Institutional Shares and Class A Shares. The
Institutional Money Market Fund, the Institutional Government Money Market Fund
and the U.S. Treasury Money Market Fund offer four classes of shares:
Institutional Shares, Select Shares, Preferred Shares and Trust Shares. 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 Municipal
Money Market Fund offers five classes of shares: Institutional Shares, Class A
Shares, Select Shares, Preferred Shares and Trust Shares. Shares of the Ohio Tax
Exempt Money Market Fund are currently not offered. Each class of shares for
each Fund has identical rights and privileges except with respect to
administrative services fees paid by Class C Shares, Select Shares, Preferred
Shares and Trust 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.
Under the Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts with their vendors and others that provide for general
indemnification. The Funds' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Funds.
However, based on experience, the Funds expect that risk of loss to be remote.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with 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.
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 as reported by the underlying investment company.
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
28
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
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.
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, 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.
OTHER--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. Income, expenses, and realized and unrealized gains or losses
on investments are allocated to each class of shares based on its relative net
assets or another appropriate basis, except that each class separately bears
expenses related specifically to that class, such as distribution fees.
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.
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.
(3) 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"), an affiliate of the
Advisor, 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 average daily 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
subject to certain minimums and reimbursement of out-of-pocket expenses. In
addition, BISYS provides an employee to serve as Chief Compliance Officer for
the Funds including providing certain related services, for which it receives an
additional fee.
The Advisor and Administrator have entered into an expense limitation agreement
with the Trust. Under the terms of this agreement, to the extent that ordinary
operating expenses incurred by a Fund in any fiscal year exceed the expense
limit for the Fund, such excess amount will be the liability of the Advisor and
Administrator. If the operating expenses are less than the expense limit for the
Fund, the Advisor and Administrator shall be entitled to reimbursement of the
fees waived or reduced to the extent that the operating expenses and the amount
reimbursed do not exceed such expense
29
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
limit for the Fund. Such reimbursement shall be paid only while the expense
limitation agreement is in effect and only if such amount paid, together with
all other amounts reimbursed under this plan in the fiscal year, does not cause
the Fund to exceed the expense limit. For the period from November 30, 2003
through July 31, 2004, the expense limits and the cumulative reimbursement that
may potentially be made by the Funds is as follows (Amounts in thousands):
MICHIGAN
MUNICIPAL
PRIME MONEY MONEY MARKET
MARKET FUND FUND
------------ ------------
Institutional Shares 0.54% 0.54%
Class A Shares 0.79% 0.79%
Class B Shares 1.54% NA
Class C Shares 1.54% NA
Amount subject to recoupment
expiring on November 30, 2004. $1,327 $184
INSTITUTIONAL
INSTITUTIONAL GOVERNMENT U.S. TREASURY MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
----------- -------------- ----------- ------------
Institutional Shares 0.22% 0.22% 0.22% 0.38%
Class A Shares NA NA NA 0.63%
Select Shares 0.30% 0.30% 0.30% 0.46%
Preferred Shares 0.37% 0.37% 0.37% 0.53%
Trust Shares 0.47% 0.47% 0.47% 0.63%
Amount subject to recoupment
expiring on November 30, 2005. $2,829 $1,704 $5,204 $594
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
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.
ADMINISTRATIVE SERVICES FEE--The Trust has approved an Administrative Services
Agreement with Fifth Third Funds Distributor, Inc. with respect to Class C
Shares, Select Shares, Preferred Shares and Trust Shares. Under the Agreement,
the Funds may make payments up to 0.25% of the average daily net assets for
Class C Shares, up to 0.08% of the average daily net assets for Select Shares,
up to 0.15% of the average daily net assets for Preferred Shares and up to 0.25%
of the average daily net assets for Trust Shares in exchange for certain
administrative services fees for shareholders and for the maintenance of
shareholder accounts.
30
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
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 plus annual fees for additional
classes of shares per Fund and reimbursement of out-of-pocket fees and other
miscellaneous expenses.
Certain officers of the Trust are affiliated with the above companies, but are
not paid any fees directly by the Trust for serving as officers of the Trust.
(4) LINE OF CREDIT
The Trust participates in a credit agreement with Citibank N.A. Under the terms
of the agreement, the Trust may borrow up to $75 million. The purpose of the
agreement is to meet temporary or emergency cash needs, including redemption
requests that might otherwise require the untimely disposition of securities.
Citibank N.A. receives an annual facility fee of 0.09% on the aggregate
principal amount committed under the agreement for providing the Line of Credit.
Each Fund pays a pro-rata portion of this facility fee, plus any interest on
amounts borrowed. For the year ended July 31, 2004, there were no borrowings
against the line of credit.
(5) FEDERAL TAX INFORMATION
The tax character of distributions paid during the fiscal year ended July 31,
2004 was as follows (Amounts in thousands):
ORDINARY TOTAL
INCOME TAX EXEMPT DISTRIBUTIONS
DISTRIBUTIONS DISTRIBUTIONS PAID
------------- ------------- -------------
Prime Money Market Fund $10,216 -- $10,216
Institutional Money Market Fund 8,584 -- 8,584
Institutional Government Money Market Fund 4,361 -- 4,361
Government Money Market Fund 1,487 -- 1,487
U.S. Treasury Money Market Fund 11,715 -- 11,715
Michigan Municipal Money Market Fund -- $1,267 1,267
Municipal Money Market Fund -- 1,410 1,410
31
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
The tax character of distributions paid during the fiscal year ended July 31,
2003 was as follows (Amounts in thousands):
ORDINARY TOTAL
INCOME TAX EXEMPT DISTRIBUTIONS
DISTRIBUTIONS DISTRIBUTIONS PAID
------------- ------------- -------------
Prime Money Market Fund $22,063 -- $22,063
Institutional Money Market Fund 6,684 -- 6,684
Institutional Government Money Market Fund 6,032 -- 6,032
Government Money Market Fund 4,154 -- 4,154
U.S. Treasury Money Market Fund 14,125 -- 14,125
Michigan Municipal Money Market Fund -- $2,357 2,357
Municipal Money Market Fund -- 2,455 2,455
As of July 31, 2004, the components of accumulated earnings/(deficit) on a tax
basis were as follows (Amounts in thousands):
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND ACCUMULATED
TAX EXEMPT ORDINARY DISTRIBUTIONS OTHER EARNINGS/
INCOME INCOME PAYABLE LOSSES (DEFICIT)
----------- ------------ ------------- ----------- -----------
Prime Money Market Fund -- $1,076 $ (991) -- $ 85
Institutional Money Market Fund -- 1,039 (1,010) -- 29
Institutional Government Money Market Fund -- 472 (461) -- 11
Government Money Market Fund -- 148 (148) $ (6) (6)
U.S. Treasury Money Market Fund -- 1,365 (1,365) (158) (158)
Michigan Municipal Money Market Fund $97 -- (101) -- (4)
Municipal Money Market Fund 90 -- (90) (5) (5)
As of July 31, 2004, 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 2008 2009 2010 2011
---------- ---------- ---------- ---------- ----------
Government Money Market Fund $3 $ 3 -- -- -- $ 6
U.S. Treasury Money Market Fund -- 99 $59 -- -- 158
Municipal Money Market Fund -- -- 2 $2 $1 5
(6) CONCENTRATION OF CREDIT RISK
The Michigan Municipal Money Market Fund invests a substantial portion 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
This page intentionally left blank.
33
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED
NET ASSET AND UNREALIZED LESS
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 0.05 -- (0.05)
Year ended 7/31/01 $1.00 0.05 -- (0.05)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $1.00 0.05 -- (0.05)
Year ended 7/31/01 $1.00 0.05 -- (0.05)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
- ----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 $1.00 0.03 -- (0.03)
Year ended 7/31/02 $1.00 0.01 -- (0.01)
Year ended 7/31/03 $1.00 --^ --^ --^
Year ended 7/31/04 $1.00 --^ --^ --^
- ----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 --^ -- --^
Year ended 7/31/03 $1.00 --^ --^ --^
Year ended 7/31/04 $1.00 --^ --^ --^
- ----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 $1.00 0.01 -- (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 $1.00 0.05 -- (0.05)
1/1/01 to 7/31/01(c) $1.00 0.03 -- (0.03)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 0.05 -- (0.05)
Year ended 12/31/00 $1.00 0.06 -- (0.06)
1/1/01 to 7/31/01(c) $1.00 0.03 -- (0.03)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.53%
Year ended 7/31/01 $1.00 5.41%
Year ended 7/31/02 $1.00 2.02%
Year ended 7/31/03 $1.00 1.02%
Year ended 7/31/04 $1.00 0.65%
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $1.00 5.27%
Year ended 7/31/01 $1.00 5.14%
Year ended 7/31/02 $1.00 1.77%
Year ended 7/31/03 $1.00 0.76%
Year ended 7/31/04 $1.00 0.40%
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 $1.00 3.10%*
Year ended 7/31/02 $1.00 1.00%
Year ended 7/31/03 $1.00 0.32%
Year ended 7/31/04 $1.00 0.24%
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 0.19%*
Year ended 7/31/03 $1.00 0.32%
Year ended 7/31/04 $1.00 0.23%
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 $1.00 1.02%*
Year ended 7/31/03 $1.00 0.53%
Year ended 7/31/04 $1.00 0.24%
- -------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 $1.00 4.71%*
1/1/01 to 7/31/01(c) $1.00 2.84%*
Year ended 7/31/02 $1.00 2.31%
Year ended 7/31/03 $1.00 1.35%
Year ended 7/31/04 $1.00 0.98%
- -------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.70%*
- -------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.65%*
- -------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.57%*
- -------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 4.81%
Year ended 12/31/00 $1.00 6.03%
1/1/01 to 7/31/01(c) $1.00 2.71%*
Year ended 7/31/02 $1.00 2.05%
Year ended 7/31/03 $1.00 1.07%
Year ended 7/31/04 $1.00 0.86%
- -------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.65%*
- -------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%*
- -------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.51%*
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
PERIOD NET TO AVERAGE NET
(000 'S) ASSETS NET ASSETS ASSETS (a)
- ----------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 7/31/00 $ 508,414 0.52% 5.44% 0.62%
Year ended 7/31/01 $ 802,176 0.53% 5.11% 0.63%
Year ended 7/31/02 $1,732,204 0.55% 1.86% 0.65%
Year ended 7/31/03 $1,565,589 0.54% 1.02% 0.65%
Year ended 7/31/04 $1,064,622 0.54% 0.64% 0.66%
- ----------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $ 215,082 0.77% 5.29% 0.87%
Year ended 7/31/01 $ 356,091 0.78% 4.86% 0.88%
Year ended 7/31/02 $ 447,556 0.80% 1.71% 0.89%
Year ended 7/31/03 $ 436,687 0.79% 0.77% 0.90%
Year ended 7/31/04 $ 387,424 0.79% 0.40% 0.91%
- ----------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 $ 1,021 1.53%** 3.63%** 1.63%**
Year ended 7/31/02 $ 1,893 1.55% 0.91% 1.64%
Year ended 7/31/03 $ 2,426 1.22% 0.33% 1.65%
Year ended 7/31/04 $ 1,651 0.95% 0.23% 1.66%
- ----------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 $ 154 1.14% 0.32% 1.65%
Year ended 7/31/04 $ 2,843 0.98% 0.25% 1.66%
- ----------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 $ 2 0.89%** 1.23%** 0.96%**
Year ended 7/31/03 $ 62 1.02% 0.46% 1.15%
Year ended 7/31/04 $ 36 0.96% 0.26% 1.16%
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 $ 47,944 0.22%** 6.39%** 0.74%**
1/1/01 to 7/31/01(c) $ 71,778 0.22%** 4.78%** 0.68%**
Year ended 7/31/02 $ 189,530 0.22% 2.11% 0.65%
Year ended 7/31/03 $ 766,023 0.22% 1.24% 0.65%
Year ended 7/31/04 $1,049,608 0.22% 0.98% 0.65%
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $ 13,267 0.30%** 0.92%** 0.73%**
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $ 27,206 0.37%** 0.85%** 0.80%**
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $ 17,591 0.47%** 0.75%** 0.90%**
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $ 215,401 0.37% 4.73% 0.65%
Year ended 12/31/00 $ 309,711 0.39% 5.92% 0.63%
1/1/01 to 7/31/01(c) $ 410,278 0.40%** 4.56%** 0.63%**
Year ended 7/31/02 $ 425,092 0.41% 2.03% 0.64%
Year ended 7/31/03 $ 616,999 0.40% 1.04% 0.65%
Year ended 7/31/04 $ 223,852 0.31% 0.79% 0.66%
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $ 5,202 0.30%** 0.82%** 0.75%**
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $ 276,373 0.37%** 0.75%** 0.82%**
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $ 70,270 0.47%** 0.66%** 0.92%**
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
34-35 [SPREAD]
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
NET REALIZED
NET ASSET AND UNREALIZED LESS
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 0.05 -- (0.05)
Year ended 7/31/01 $1.00 0.05 -- (0.05)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $1.00 0.05 -- (0.05)
Year ended 7/31/01 $1.00 0.05 -- (0.05)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 0.06 -- (0.06)
Year ended 7/31/01 $1.00 0.05 -- (0.05)
Year ended 7/31/02 $1.00 0.02 -- (0.02)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 0.03 -- (0.03)
Year ended 12/31/00 $1.00 0.04 -- (0.04)
1/1/01 to 7/31/01(c) $1.00 0.02 -- (0.02)
Year ended 7/31/02 $1.00 0.01 -- (0.01)
Year ended 7/31/03 $1.00 0.01 -- (0.01)
Year ended 7/31/04 $1.00 0.01 -- (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 12/31/99 $1.00 0.03 -- (0.03)
Year ended 12/31/00 $1.00 0.04 -- (0.04)
1/1/01 to 7/31/01(c) $1.00 0.02 -- (0.02)
Year ended 7/31/02 $1.00 0.01 -- (0.01)
Year ended 7/31/03 $1.00 0.01 -- (0.01)
Year ended 7/31/04 $1.00 --^ -- --^
- -----------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
- --------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.31%
Year ended 7/31/01 $1.00 5.23%
Year ended 7/31/02 $1.00 1.79%
Year ended 7/31/03 $1.00 0.92%
Year ended 7/31/04 $1.00 0.47%
- --------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $1.00 5.10%
Year ended 7/31/01 $1.00 5.02%
Year ended 7/31/02 $1.00 1.58%
Year ended 7/31/03 $1.00 0.71%
Year ended 7/31/04 $1.00 0.27%
- --------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.40%
Year ended 7/31/01 $1.00 5.30%
Year ended 7/31/02 $1.00 1.92%
Year ended 7/31/03 $1.00 1.02%
Year ended 7/31/04 $1.00 0.80%
- --------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%*
- --------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.54%*
- --------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.46%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 2.86%
Year ended 12/31/00 $1.00 3.73%
1/1/01 to 7/31/01(c) $1.00 1.71%*
Year ended 7/31/02 $1.00 1.41%
Year ended 7/31/03 $1.00 0.88%
Year ended 7/31/04 $1.00 0.59%
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 12/31/99 $1.00 2.86%
Year ended 12/31/00 $1.00 3.70%
1/1/01 to 7/31/01(c) $1.00 1.57%*
Year ended 7/31/02 $1.00 1.25%
Year ended 7/31/03 $1.00 0.78%
Year ended 7/31/04 $1.00 0.49%
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
PERIOD NET TO AVERAGE NET
(000 'S) ASSETS NET ASSETS ASSETS (a)
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $ 211,790 0.57% 5.17% 0.64%
Year ended 7/31/01 $ 238,816 0.55% 5.12% 0.60%
Year ended 7/31/02 $ 279,059 0.65% 1.75% 0.69%
Year ended 7/31/03 $ 275,107 0.61% 0.84% 0.66%
Year ended 7/31/04 $ 173,865 0.62% 0.47% 0.67%
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $ 264,393 0.77% 4.93% 0.89%
Year ended 7/31/01 $ 248,064 0.75% 4.92% 0.85%
Year ended 7/31/02 $ 270,062 0.85% 1.57% 0.94%
Year ended 7/31/03 $ 177,390 0.81% 0.66% 0.91%
Year ended 7/31/04 $ 110,153 0.82% 0.27% 0.92%
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $ 871,657 0.38% 5.26% 0.62%
Year ended 7/31/01 $1,058,407 0.39% 5.08% 0.64%
Year ended 7/31/02 $1,143,352 0.41% 1.88% 0.64%
Year ended 7/31/03 $1,644,905 0.40% 0.98% 0.65%
Year ended 7/31/04 $ 399,195 0.30% 0.74% 0.65%
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $ 93,233 0.30%** 0.76%** 0.73%**
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1,102,963 0.37%** 0.69%** 0.80%**
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $ 165,402 0.47%** 0.58%** 0.90%**
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 12/31/99 $ 292,619 0.53% 2.82% 0.63%
Year ended 12/31/00 $ 295,219 0.53% 3.67% 0.62%
1/1/01 to 7/31/01(c) $ 317,543 0.54%** 2.93%** 0.63%**
Year ended 7/31/02 $ 292,618 0.54% 1.41% 0.65%
Year ended 7/31/03 $ 247,805 0.54% 0.88% 0.67%
Year ended 7/31/04 $ 197,225 0.54% 0.59% 0.67%
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 12/31/99 $ 658 0.53% 2.82% 0.63%
Year ended 12/31/00 $ 160 0.54% 3.44% 0.63%
1/1/01 to 7/31/01(c) $ 215 0.79%** 2.67%** 0.88%**
Year ended 7/31/02 $ 177 0.70% 1.26% 0.91%
Year ended 7/31/03 $ 19 0.64% 0.90% 0.92%
Year ended 7/31/04 $ 18 0.64% 0.48% 0.91%
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
36-37 [SPREAD]
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED
NET ASSET AND UNREALIZED LESS NET ASSET
VALUE, NET GAINS/ DISTRIBUTIONS VALUE,
BEGINNING INVESTMENT (LOSSES) FROM TO END OF TOTAL
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS PERIOD RETURN
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 0.04 -- (0.04) $1.00 3.46%
Year ended 7/31/01 $1.00 0.03 -- (0.03) $1.00 3.44%
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00 1.45%
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00 0.91%
Year ended 7/31/04 $1.00 0.01 --^ (0.01) $1.00 0.68%
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/00 $1.00 0.03 -- (0.03) $1.00 3.40%
Year ended 7/31/01 $1.00 0.03 -- (0.03) $1.00 3.37%
Year ended 7/31/02 $1.00 0.01 -- (0.01) $1.00 1.38%
Year ended 7/31/03 $1.00 0.01 --^ (0.01) $1.00 0.80%
Year ended 7/31/04 $1.00 --^ --^ --^ $1.00 0.43%
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ $1.00 0.47%*
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ $1.00 0.42%*
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ $1.00 0.34%*
- ----------------------------------------------------------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) During various periods, certain fees were reduced. The ratios shown do not
include these fee reductions.
(b) Reflects date of commencement of operations.
(c) The Fund changed its fiscal year end to July 31 from December 31.
^ Amount is less than $0.005.
* Not annualized.
** Annualized.
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
PERIOD NET TO AVERAGE NET
(000 'S) ASSETS NET ASSETS ASSETS (a)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $ 100,995 0.31% 3.51% 0.83%
Year ended 7/31/01 $ 190,268 0.29% 3.33% 0.74%
Year ended 7/31/02 $ 249,280 0.34% 1.43% 0.77%
Year ended 7/31/03 $ 199,439 0.42% 0.92% 0.78%
Year ended 7/31/04 $ 136,302 0.38% 0.67% 0.80%
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/00 $ 29,693 0.38% 3.33% 1.08%
Year ended 7/31/01 $ 40,981 0.36% 3.26% 0.99%
Year ended 7/31/02 $ 42,004 0.41% 1.35% 1.02%
Year ended 7/31/03 $ 53,079 0.52% 0.80% 1.03%
Year ended 7/31/04 $ 17,590 0.63% 0.42% 1.05%
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $ 863 0.46%** 0.62%** 0.91%**
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $ 637 0.53%** 0.55%** 0.98%**
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $ 244 0.63%** 0.44%** 1.06%**
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
38-39 [SPREAD]
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and
Trustees of Fifth Third Funds:
In our opinion, the accompanying statements of assets and liabilities, including
schedules of portfolio investments, and the related statements of operations and
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, 2004, the results of each of their operations for the year then ended, the
changes in each of their net assets for the two years then ended and the
financial highlights for each of the periods in the three 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 the standards of the Public Company Accounting Oversight Board
(United States), 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 of securities at July 31, 2004 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 period 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 period 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 29, 2004
40
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED):
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT ^
The Trustees and Officers of the Funds, their date of birth, 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 AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- --------------- ---------- ----------- ------------------------ ----------- ---------------
David J. Durham Trustee Indefinite, President and Chief 35 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, Vice President and Chief 35 None
Birthdate: 9/11/1949 March Communications Officer, Cinergy
2001-Present Corp., September 2004-Present.
President, Cinergy Foundation,
November 2001-Present. President,
Cinergy Corp., Cincinnati Gas &
Electric Co., The Union Light
Heat & Power Co., July 2000-
October 2001. Vice President,
Corporate Communications,
August 1996-June 2000.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 35 Printing
Birthdate: 12/5/1944 October Present. Business Industries of
2001- Present Management Consultant, April America: Web Offset
2000-February 2002. President, Assoc., Director; Master
Metroweb Corp. (publications Printers of America,
printing) 1997-2000. Director.
David J. Gruber Trustee Indefinite, Ohio Arts & Sports Facilities 35 None
Birthdate: 8/19/1963 December Commission (state funding oversight
2003-Present agency), CFO, April 2003-Present.
Ohio Expositions Commission (state
fair and expo center), Finance Director,
April 1996-2003.
INTERESTED TRUSTEE
------------------
Edward Burke Carey* Chairman-Board Indefinite, President of Carey Realty 35 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.
41
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 DATE OF BIRTH FUNDS SERVED DURING THE PAST 5 YEARS
- ----------------- ----------- ------------- -----------------------------
C. David Bunstine President Indefinite, Employee of BISYS Fund Services
Birthdate: 7/30/65 March Limited Partnership since
2003-Present 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 Services
Birthdate: 4/26/1968 and Secretary September Limited Partnership since August 1995.
2001-Present
Adam S. Ness Treasurer Indefinite, Employee of BISYS Fund services
Birthdate: 10/14/1972 September Limited Partnership since June 1998.
2001-Present
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
42
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; distribution [and/or service] 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fifth Third Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from February 1, 2004 through July 31,
2004.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
----------- ----------- ---------------- ----------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,003.40 $2.69 0.54%
Class A Shares 1,000.00 1,002.10 3.93 0.79%
Class B Shares 1,000.00 1,001.30 4.83 0.97%
Class C Shares 1,000.00 1,001.20 4.93 0.99%
Advisor Shares 1,000.00 1,001.30 4.83 0.97%
Institutional Money Market Fund Institutional Shares 1,000.00 1,005.00 1.10 0.22%
Select Shares 1,000.00 1,004.60 1.50 0.30%
Preferred Shares 1,000.00 1,004.20 1.84 0.37%
Trust Shares 1,000.00 1,003.70 2.34 0.47%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,004.60 1.10 0.22%
Select Shares 1,000.00 1,004.20 1.49 0.30%
Preferred Shares 1,000.00 1,003.80 1.84 0.37%
Trust Shares 1,000.00 1,003.30 2.34 0.47%
Government Money Market Fund Institutional Shares 1,000.00 1,002.50 3.09 0.62%
Class A Shares 1,000.00 1,001.50 4.08 0.82%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,004.20 1.10 0.22%
Select Shares 1,000.00 1,003.80 1.49 0.30%
Preferred Shares 1,000.00 1,003.50 1.84 0.37%
Trust Shares 1,000.00 1,003.00 2.34 0.47%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,003.00 2.69 0.54%
Class A Shares 1,000.00 1,002.50 3.19 0.64%
Municipal Money Market Fund Institutional Shares 1,000.00 1,003.30 1.89 0.38%
Class A Shares 1,000.00 1,002.00 3.14 0.63%
Select Shares 1,000.00 1,002.90 2.29 0.46%
Preferred Shares 1,000.00 1,002.50 2.64 0.53%
Trust Shares 1,000.00 1,002.00 3.14 0.63%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
43
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may however use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
----------- ----------- ---------------- ----------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,022.18 $ 2.72 0.54%
Class A Shares 1,000.00 1,020.93 3.97 0.79%
Class B Shares 1,000.00 1,020.04 4.87 0.97%
Class C Shares 1,000.00 1,019.94 4.97 0.99%
Advisor Shares 1,000.00 1,020.04 4.87 0.97%
Institutional Money Market Fund Institutional Shares 1,000.00 1,023.77 1.11 0.22%
Select Shares 1,000.00 1,023.37 1.51 0.30%
Preferred Shares 1,000.00 1,023.02 1.86 0.37%
Trust Shares 1,000.00 1,022.53 2.36 0.47%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,023.77 1.11 0.22%
Select Shares 1,000.00 1,023.37 1.51 0.30%
Preferred Shares 1,000.00 1,023.02 1.86 0.37%
Trust Shares 1,000.00 1,022.53 2.36 0.47%
Government Money Market Fund Institutional Shares 1,000.00 1,021.78 3.12 0.62%
Class A Shares 1,000.00 1,020.79 4.12 0.82%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,023.77 1.11 0.22%
Select Shares 1,000.00 1,023.37 1.51 0.30%
Preferred Shares 1,000.00 1,023.02 1.86 0.37%
Trust Shares 1,000.00 1,022.53 2.36 0.47%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.18 2.72 0.54%
Class A Shares 1,000.00 1,021.68 3.22 0.64%
Municipal Money Market Fund Institutional Shares 1,000.00 1,022.97 1.91 0.38%
Class A Shares 1,000.00 1,021.73 3.17 0.63%
Select Shares 1,000.00 1,022.58 2.31 0.46%
Preferred Shares 1,000.00 1,022.23 2.66 0.53%
Trust Shares 1,000.00 1,021.73 3.17 0.63%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
44
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
- --------------------------------------------------------------------------------------------------------------
Registered Independent Accountants PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- --------------------------------------------------------------------------------------------------------------
[LOGO]:
5/3 FIFTH THIRD FUNDS
9/04 AR-MMF-04
[LOGO] FIFTH THIRD FUNDS
STOCK AND BOND MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
_________________
JULY 31, 2004
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.
A description of the polices and procedures that the Funds use to determine how
to vote proxies relating to the portfolio securities and information regarding
how the Funds voted relating to portfolio securities during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-282-5706 or on the Securities and Exchange Commission's website at
http://www.sec.gov.
Schedules of Portfolio Investments for periods ending October 31 and April 30
will be available starting December 30, 2004, without charge, on the Securities
and Exchange Commission's website at http://www.sec.gov.
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
Quality Growth Fund ................................................. 8
Large Cap Core Fund ................................................. 10
Equity Index Fund ................................................... 12
Balanced Fund ....................................................... 14
Micro Cap Value Fund ................................................ 16
Small Cap Value Fund ................................................ 18
Multi Cap Value Fund ................................................ 20
Disciplined Large Cap Value Fund .................................... 22
Fifth Third LifeModel Aggressive Fund SM ............................ 24
Fifth Third LifeModel Moderately Aggressive Fund SM ................. 26
Fifth Third LifeModel Moderate Fund SM .............................. 28
Fifth Third LifeModel Moderately Conservative Fund SM ............... 30
Fifth Third LifeModel Conservative Fund SM .......................... 32
Strategic Income Fund ............................................... 34
Select Stock Fund ................................................... 36
Technology Fund ..................................................... 38
International Equity Fund . ......................................... 40
Bond Fund ........................................................... 42
Intermediate Bond Fund .............................................. 44
Short Term Bond Fund ................................................ 46
U.S. Government Bond Fund . ......................................... 48
Municipal Bond Fund ................................................. 50
Intermediate Municipal Bond Fund .................................... 52
Ohio Municipal Bond Fund ............................................ 54
Michigan Municipal Bond Fund ........................................ 56
Schedules of Portfolio Investments .................................. 59
Notes to Schedules of Portfolio Investments ......................... 1ll
Statements of Assets and Liabilities ................................ 118
Statements of Operations ............................................ 123
Statements of Changes in Net Assets ................................. 128
Notes to Financial Statements ....................................... 146
Financial Highlights ................................................ 158
Notes to Financial Highlights ....................................... 182
Report of Independent Registered Public Accounting Firm ............. 183
Supplemental Information ............................................ 184
OUR MESSAGE TO YOU
- --------------------------------------------------------------------------------
[LOGO] FROM EUPHORIA TO DESPAIR...
For the 12-month period ended July 31, 2004, investors experienced stock and
bond market returns not too dissimilar from historic averages. Stocks, as
represented by the S&P 500 (R) Index 1, enjoyed a total return of 13.17%, while
bonds, as represented by the Lehman Brothers Intermediate Government/Credit Bond
Index 2, returned 3.60%.
The ride for many investors, however, may not have felt so smooth. The
influences on financial markets changed markedly from the first half of the
period to the second half. Where there was euphoria in the first six months,
seemingly grinding despair emerged in the latter months.
During the first half of the fiscal year, the economy saw tremendous growth from
the strong fiscal and monetary stimuli applied in early 2003. Gross Domestic
Product 3 growth averaged over 6.00% in the second half of 2003-nearly double
the long-term average. For investors, we believe this type of environment
generally benefits small cap stocks, and, indeed, from August 2003 to January
2004, small cap stocks climbed about 25.00%.
Within the second half of the period, economic growth trended back to its
historical average amid mixed signals about job growth and consumer demand. The
stock market struggled to make headway and although large cap stocks
outperformed small cap stocks from January 2004 to July 2004, both classes
posted slight declines.
Bond investors watched the yield of the benchmark 10-year Treasury change little
during the fiscal year, as it started at 4.41% and ended at 4.47%. Given the
strong economic growth in the second half of 2003, one would have assumed that
bond yields would be higher by July 2004, but other forces combined to keep
yields relatively low.
A likely inflection point for investors during the 12-month period occurred on
June 13, 2003, when the yield on the benchmark 10-year Treasury closed at 3.13%.
We are unlikely to see yields so low for many years, unless something goes so
horribly wrong with the war on terrorism that global commerce is disrupted.
One reason behind the extremely small bond yields was a 46-year low of 1.00% on
the Fed Funds Rate, the short-term lending rate set by the Federal Reserve (the
"Fed"). Additionally, a generational low of 1. 70% on the year-over-year growth
in the Consumer Price Index 3 (CPI), a key measure of inflation, was reported in
February 2004. On June 30, 2004, the Fed began what we believe is likely to be a
lengthy tightening cycle by raising the Fed Funds Rate to 1.25%, and the
year-over-year CPI rate moved back up to the 3.00% range.
The close of our fiscal year finds many crosscurrents in financial markets
leading to a sense of anxiety about stock prices and bond yields as investors
appear focused on five main issues:
1. The rising price of oil
2. Terrorist threats
3. The outcome of the November election
4. The length and extent of the Fed tightening cycle
5. The durability of the economic expansion and corporate profit growth
1
Each of these crosscurrents has undermined, at times, what would historically
have been a sanguine investing environment, featuring:
o Corporate earnings increasing at a rate well above historical averages
o Corporate cash balances approaching $800 billion (four times 2000 levels),
leading to healthy balance sheets
o Relatively low borrowing costs for businesses and consumers
o Narrow interest rate differentials between U.S. Treasury bonds and comparable
corporate bonds
Since 1960, the average economic expansion in the U.S. has lasted slightly
longer than seven years. The current economic expansion began in late 2001 and
is not yet three years old. If the economic expansion and corresponding
corporate profit cycle end prematurely, we believe it would be highly unusual.
We remain optimistic about the resiliency of the U.S. economy, as well as the
global growth outlook.
We appreciate the continued confidence of our customers, and we work everyday to
monitor financial markets 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. Designed to meet the varied needs of
our expanding customer base, these investments help diversify portfolios by
offering exposure to stocks, bonds, cash and alternative investments.
Ultimately, we believe that a well-diversified portfolio provides an investor
with the best opportunity to build wealth over time with a reasonable level of
risk.
Thank you for your continued confidence in Fifth Third Funds.
Sincerely,
/s/ Keith Wirtz
Keith Wirtz, CFA
Chief Investment Officer
/s/ John Augustine
John Augustine, CFA
Chief Investment Strategist
TERMS AND DEFINITIONS
- --------------------------------------------------------------------------------
1 STANDARD & POOR'S 500 (R) INDEX ("S&P 500 (R) 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.
2 THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX IS COMPOSED OF
INVESTMENT GRADE CORPORATE 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 ABOVE INDICES 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
SECURITIES.
3 THE GROSS DOMESTIC PRODUCT MEASURES THE MARKET VALUE OF THE GOODS AND SERVICES
PRODUCED BY LABOR AND PROPERTY IN THE UNITED STATES. THE CONSUMER PRICE INDEX
(CPI) IS A MEASURE OF PRICE CHANGES IN CONSUMER GOODS AND SERVICES SUCH AS
GASOLINE, FOOD, AND AUTOMOBILES.
THE FOREGOING INFORMATION AND OPINIONS ARE FOR GENERAL INFORMATION ONLY. FIFTH
THIRD ASSET MANAGEMENT, INC. DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS,
NOR ASSUME LIABILITY FOR ANY LOSS, WHICH MAY RESULT FROM THE RELIANCE BY ANY
PERSON UPON ANY SUCH INFORMATION OR OPINIONS. SUCH INFORMATION AND OPINIONS ARE
SUBJECT TO CHANGE WITHOUT NOTICE, ARE FOR GENERAL INFORMATION ONLY AND ARE NOT
INTENDED AS AN OFFER OR SOLICITATION WITH RESPECT TO THE PURCHASE OR SALE OF ANY
SECURITY OR OFFERING OF INDIVIDUAL OR PERSONALIZED INVESTMENT ADVICE.
2
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MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND
For the 12-month period ended July 31, 2004, the Fifth Third Small Cap Growth
Fund (Institutional Shares) gained 7.31%, underperforming its benchmark, the
Russell 2000 (R) Growth Index 1, which advanced 11.32%.
The majority of gains for both the Fund and its benchmark were realized during
the first half of the period, but subsequently eroded amid inflation fears and
interest rate jitters. As the concerns blossomed through the opening quarters of
2003, small cap growth investors migrated toward companies with larger market
capitalizations, lower growth expectations, higher valuations and larger
debt-to-capital ratios ++. Built with an emphasis on greater earnings growth
expectations, lower valuations and leaner debt-to-capital ratios, the Fund
lagged as a result.
Weighing significantly were the Fund's holdings in the information technology
and healthcare sectors. More specifically in the technology group, the Fund's
overweight positions, relative to the benchmark, in telecommunications and
networking names struggled, as well as holdings in the semiconductor
manufacturing and semiconductor equipment areas. Despite better than expected
spending and earnings trends, many observers viewed these specialties as most
vulnerable to a potential near-term peak in the technology cycle and sold them
off as a result. +
In healthcare, the Fund's underweight position in outperforming service
providers such as health maintenance organizations and hospitals and an
overweight stake in underperforming biotechnology and pharmaceutical companies
combined to hamper results. The drug-oriented names worked well until a lull
following a prestigious medical conference in May. +
On the upside, the Fund's industrials sector stocks rallied as we correctly
anticipated the improving economic conditions and owned a number of companies
heavily leveraged to such a development. In addition, defense contractor
holdings provided a boost in the wake of the Iraq war.
The consumer discretionary sector also supplied a lift as we overweighted
specialty retailers that target younger consumers with lower living expenses and
higher expendable income. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
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.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------- ------ ------- --------
Institutional 7.31% 1.43% 7.76% $ 21,112
- -------------------------------------------------------------------------------
Class A* 1.83% 0.16% 6.97% $ 19,611
- -------------------------------------------------------------------------------
Class B** 1.49% 0.05% 6.68% $ 19,092
- -------------------------------------------------------------------------------
Class C** 6.29% 0.42% 6.69% $ 19,104
- -------------------------------------------------------------------------------
Advisor 6.84% 0.92% 7.22% $ 20,074
- -------------------------------------------------------------------------------
Russell 2000 (R)
Growth Index 1 11.32% -1.69% 6.00% $ 17,913
- -------------------------------------------------------------------------------
Lipper Small-Cap
Growth Funds Average 1 9.62% 1.46% 8.16% $ 24,106
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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. 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Urban Outfitters, Inc. .......................................... 1.65%
Engineered Support Systems, Inc. ................................ 1.42%
Aeropostale, Inc. ............................................... 1.34%
East West Bancorp, Inc. ......................................... 1.21%
Trimble Navigation Ltd. ......................................... 1.17%
RC2 Corp. ....................................................... 1.14%
Comstock Resources, Inc. ........................................ 1.09%
TEKELEC ......................................................... 1.06%
Flir Systems, Inc. .............................................. 1.05%
Labor Ready, Inc. ............................................... 1.02%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
++ DEBT-TO-CAPITAL IS A MEASURE OF A COMPANY'S FINANCIAL LEVERAGE CALCULATED BY
DIVIDING LONG TERM DEBT BY SHAREHOLDERS EQUITY. IT INDICATES WHAT PROPORTION
OF EQUITY AND DEBT THE COMPANY IS USING TO FINANCE ITS ASSETS.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
SMALL CAP
GROWTH FUND RUSSELL 2000(R) LIPPER SMALL-CAP
(INSTITUTIONAL GROWTH GROWTH FUNDS
SHARES) INDEX AVERAGE
------- ----- -------
7/94 $10000 $10000 $10000
7/95 11787 13377.1 13723
7/96 13040 13781.4 15251
7/97 18068 17261.8 19394
7/98 18240 17034.6 19890
7/99 19661 19506.3 22797
7/00 23316 23628.6 31712
7/01 21404 18121.4 25546
7/02 16951 12574.5 18004
7/03 19673 16091.1 22063
7/04 21112 17913.3 24106
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 2000 (R) Growth Index
and the Lipper Small-Cap Growth Funds Average. The Russell 2000 (R) Growth
Index tracks the performance of common stocks that measure the performance of
the securities found in the Russell 2000 universe with higher forecasted
growth values. The Lipper Small-Cap Growth Funds Average is representative of
the average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Russell 2000 (R) Growth 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 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
For the 12-month period ended July 31, 2004, the Fifth Third Mid Cap Growth Fund
(Institutional Shares) returned 7.82%, lagging its benchmark, the Russell
MidCap (R) Growth Index 1, which gained 14.79%.
Mid-cap investors spent the first part of the period piling into speculative,
lower-quality stocks, enjoying a relief rally fueled in part by tax cuts and
accelerating earnings expectations. Shortly after the New Year, momentum
generally shifted to higher-quality names at the slower end of the growth
spectrum as signs of robust economic growth raised concerns over rising interest
rates and inflation. The stark contrast discounted a large swath of the market,
which contributed to the Fund's underperformance.
By far, the information technology sector created the biggest drag on
performance as an overweight position, relative to the benchmark, and some poor
stock picks magnified losses. By mostly avoiding the low-quality names in the
communications equipment group, we missed out on one of the sector's largest
rallies at the end of 2003. Conversely, we stayed too long in semiconductor
stocks, which dipped as worries over end-market demand emerged this spring. +
Hindering returns on a more modest basis was the consumer discretionary sector,
where some retail picks faltered.
On the upside, the market's interest in companies with steady, reliable earnings
helped boost the Fund's overweight stake in the healthcare sector. More
specifically, medical service and supply names performed well as long-term
demographic trends supported projections for consistent growth rates. +
On a smaller scale, select stocks within the energy and industrial sectors also
provided gains. Our early 2003 move into oil and natural gas exploration and
production enterprises proved savvy as many of our holdings directly benefited
from spiking oil prices. In the manufacturing space, many companies experienced
increased demand as the economy improved. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MID CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MID-SIZE
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MID-SIZE
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------- ------ ------- --------
Institutional 7.82% 0.83% 8.29% $22,174
- -------------------------------------------------------------------------------
Class A * 2.25% -0.47% 7.55% $20,706
- -------------------------------------------------------------------------------
Class B ** 1.82% -0.54% 7.15% $19,948
- -------------------------------------------------------------------------------
Class C ** 6.89% -0.18% 7.31% $20,248
- -------------------------------------------------------------------------------
Advisor 7.39% 0.33% 7.85% $21,285
- -------------------------------------------------------------------------------
Russell MidCap (R)
Growth Index 1 14.79% -0.23% 9.82% $25,524
- -------------------------------------------------------------------------------
Lipper Mid-Cap Growth
Funds Average 1 9.63% -0.01% 8.64% $23,939
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Biomet, Inc. .................................................... 2.01%
Fisher Scientific International, Inc. ........................... 1.98%
T. Rowe Price Group, Inc. ....................................... 1.82%
Inveresk Research Group, Inc. ................................... 1.78%
Hughes Supply, Inc. ............................................. 1.74%
Chico's FAS, Inc. ............................................... 1.73%
Caremerk Rx, Inc. ............................................... 1.72%
Fastenal Co. .................................................... 1.68%
Microchip Technology, Inc. ...................................... 1.67%
XTO Energy, Inc. ................................................ 1.65%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
MID CAP MID-CAP
GROWTH FUND RUSSELL GROWTH
(INSTITUTIONAL MIDCAP(R) FUNDS
SHARES) GROWTH INDEX AVERAGE
------- ------------ -------
7/94 $10000 $10000 $10000
7/95 12544 13076 13458
7/96 12703 14023 14566
7/97 18695 19590 19028
7/98 19758 21222 20655
7/99 21276 25826 24112
7/00 27797 37128 35975
7/01 25034 25317 26139
7/02 17520 18055 18678
7/03 20566 22235 21707
7/04 22174 25524 23939
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell MidCap (R) Growth Index
and the Lipper Mid-Cap Growth Funds Average. The Russell MidCap (R) Growth
Index measures the performance of those Russell mid cap 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 representative of the average of the total returns reported by all
of the mutual funds designated by Lipper, Inc., which fell into this category.
The Russell MidCap (R) Growth 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 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
For the 12-month period ended July 31, 2004, the Fifth Third Quality Growth Fund
(Institutional Shares) returned 2.67%, trailing its benchmarks, the Russell
1000 (R) Growth Index 1 and the S&P 500 (R) Index 1, which gained 8.51% and
13.16%, respectively.
After enjoying strong returns through the early part of the period, the Fund
stalled in mid-January 2004 amid shifting market preferences. As energy prices
rose and the likelihood of an interest rate hike from the Federal Reserve
increased, investors turned away from strong growth standouts and focused
instead on companies with more moderate growth prospects that were perceived to
be more sustainable.
In the transition, the information technology sector gave back impressive 2003
gains and finished the period with a modest advance. Additionally, the consumer
discretionary sector struggled and weighed on performance as the Fund carried an
overweight exposure, relative to the benchmark. More specifically, select media
and retail names languished as signs emerged that nonessential consumer spending
may be easing.
We also cut back on financial services names considered more sensitive to rising
interest rates. Unfortunately, the market's distaste for the sector spread to
companies with less exposure to interest rates, such as investment bankers, and
our still-overweight stake hurt. +
From a broad perspective, the economy showed signs of changing from a
consumer-driven market to one propelled by capital spending. In turn, the
industrial sector surged, fueled further by the expectation that years of
cost-cutting and increased productivity would lead to sizeable earnings gains.
As the Fund was overweight in the group, the rally helped returns. Also
providing a boost was a small, yet overweight, stake in the energy sector, which
profited as oil prices spiked. +
Elsewhere, we benefited from an underweight stake in the healthcare sector,
where high valuations and potential pressures on future growth rates, especially
within the pharmaceutical group, proved discomforting. Select names within the
group, however, currently appear to possess strong improving fundamentals and so
we increased the Fund's exposure by the period's end. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES.THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------ -------
Institutional 2.67% -5.10% 9.06% $23,814
- -------------------------------------------------------------------------------
Class A* -2.71% -6.30% 8.35% $22,295
- -------------------------------------------------------------------------------
Class B** -3.25% -6.39% 7.93% $21,458
- -------------------------------------------------------------------------------
Class C** 1.72% -5.97% 8.17% $21,928
- -------------------------------------------------------------------------------
Advisor 2.22% -5.55% 8.64% $22,903
- -------------------------------------------------------------------------------
Russell 1000 (R)
Growth Index 1 8.51% -6.96% 9.11% $23,907
- -------------------------------------------------------------------------------
S&P 500 (R) Index 1 13.16% -2.24% 11.09% $28,617
- -------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 9.53% -3.48% 8.94% $23,974
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Cisco Systems, Inc. ............................................. 4.13%
Boston Scientific ............................................... 4.05%
Intel Corp. ..................................................... 3.79%
Microsoft Corp. ................................................. 3.60%
Home Depot, Inc. ................................................ 3.44%
Goldman Sachs Group, Inc. ....................................... 3.06%
Analog Devices, Inc. ............................................ 3.01%
Teva Pharmaceutical Industries .................................. 2.90%
Agilent Technologies ............................................ 2.86%
International Game Technology ................................... 2.82%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
QUALITY LIPPER
GROWTH FUND LARGE-CAP
(INSTITUTIONAL RUSSELL 1000 S&P 500 CORE FUNDS
SHARES) GROWTH INDEX INDEX AVERAGE
------- ------------ ------------- -------
7/94 $10000 $10000 $10000 $10000
7/95 12320 13142 12607 12272
7/96 13883 15182 14694 13900
7/97 21379 23053 22351 20355
7/98 24399 27645 26666 23545
7/99 30937 34291 32053 27855
7/00 36449 42651 34927 31192
7/01 29185 27697 29924 26387
7/02 21041 19734 22858 20162
7/03 23195 22032 25289 21773
7/04 23814 23907 28617 23974
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 1000 (R) Growth Index,
the S&P 500 (R) Index and the Lipper Large-Cap Core Funds Average. 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 S&P 500 (R) 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 Large-Cap Core
Funds Average is representative of the average of the total returns reported
by all of the mutual funds designated by Lipper, Inc., which fell into this
category.
The Russell 1000 (R) Growth Index and the S&P 500(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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
For the 12-month period ended July 31, 2004, the Fifth Third Large Cap Core Fund
(Institutional Shares) advanced 12.50%, trailing its benchmarks, the Russell
1000 (R) Index 1 and the S&P 500 (R) Index 1, which returned 13.03% and 13.16%,
respectively.
Smaller capitalization stocks paced the market through the second half of 2003,
but after the New Year, large cap names benefited from investors' desire for
more stable companies. Worries over inflation, interest rates and energy prices
helped prompt the change in sentiment, which resulted in an increased premium on
higher quality stocks.
Against this backdrop, the Fund remained essentially neutral, relative to the
benchmark, across all market sectors, with relative performance dependent on
individual security selection. At the company level, we maintained a focus on
names with solid fundamentals, executable business models, and attractive
valuations.
From an absolute perspective, energy was the best performing sector as a number
of integrated oil companies offered considerable exposure to rising fuel
prices. +
On a relative basis, the Fund outperformed in the consumer area, where tax cuts,
low interest rates and an improvement in the job market contributed to an uptick
in consumer spending. More specifically, the Fund was well positioned in the
retail department store group within the consumer discretionary sector and in
select essential product manufacturers within the consumer staples group. +
Modestly overweight, relative to the benchmark, information technology names
slumped through the latter part of the period after a stellar 2003. More
specifically, holdings within the semiconductor and semiconductor equipment
groups sagged amid fears of an easing in demand. +
Within the telecommunications space, a couple of holdings enjoyed brief rallies,
but the Fund's underweight position, especially in stocks that had longer runs,
led to losses. The lengthy threat of interest rate hikes weighed on financials,
where the Fund's slightly overweight stake also hurt. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- -------
Institutional 12.50% -3.93% 8.74% $23,116
- -------------------------------------------------------------------------------
Class A* 6.56% -5.14% 7.95% $21,481
- -------------------------------------------------------------------------------
Class B** 6.47% -5.23% 7.65% $20,899
- -------------------------------------------------------------------------------
Class C** 11.38% -4.89% 7.65% $20,895
- -------------------------------------------------------------------------------
Russell 1000 (R) Index 1 13.03% -1.74% 11.08% $28,592
- -------------------------------------------------------------------------------
S&P 500 (R) Index 1 13.16% -2.24% 11.09% $28,617
- -------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 9.53% -3.48% 8.94% $23,974
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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. 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Microsoft Corp. ................................................. 3.21%
Exxon Mobil Corp. ............................................... 3.16%
Citigroup, Inc. ................................................. 2.51%
Pfizer, Inc. .................................................... 2.36%
Bank of America Corp. ........................................... 2.04%
Intel Corp. ..................................................... 1.94%
IBM Corp. ....................................................... 1.82%
American International Group, Inc. .............................. 1.81%
Cisco Systems, Inc. ............................................. 1.54%
General Electric Co. ............................................ 1.52%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
LARGE CAP LIPPER
CORE FUND LARGE-CAP
(INSTITUTIONAL RUSSELL 1000(R) S&P 500 CORE FUNDS
SHARES) INDEX INDEX AVERAGE
------- ----- ----- -------
7/94 $10000 $10000 $10000 $10000
7/95 12346 12616 12607 12272
7/96 14418 14602 14694 13900
7/97 20162 21952 22351 20355
7/98 23597 26092 26666 23545
7/99 28243 31217 32053 27855
7/00 29987 34594 34927 31192
7/01 25340 29509 29924 26387
7/02 19241 22750 22858 20162
7/03 20548 25296 25289 21773
7/04 23116 28592 28617 23974
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 1000 (R) Index, the
S&P 500 (R) Index and the Lipper Large-Cap Core Funds Average. The Russell
1000 (R) Index measures the performance of 1,000 largest securities found in
the Russell universe. The S&P 500 (R) 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
Large-Cap Core Funds Average is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc., which
fell into this category.
The Russell 1000 (R) Index and the S&P 500 (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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
For the 12-month period ended July 31, 2004, the Fifth Third Equity Index Fund
(Institutional Shares) returned 12.75%, compared to its benchmark, the S&P
500 (R) Index 1, which advanced 13.16%.
While the Fund seeks to duplicate the returns of the S&P 500 Index, slight
underperformance is expected. At times in the past, we tightened up the
difference by taking advantage of market inefficiencies that occasionally occur
when the Index changes its membership. But with only 1 3 additions/deletions
during the 12-month period-far fewer than the historical average of 29-we had
fewer opportunities to capitalize on modest pricing differences and performance
slipped as a result.
The energy sector paced the Index as oil prices spiked past the $40 a barrel
level and worldwide demand lingered at exceedingly high levels. Natural gas
prices also benefited from a dynamic increase featuring strong demand and
limited new production.
Improving economic conditions in the U.S. and elsewhere also propelled the
industrial and materials groups. After years of improving efficiency and shaving
payrolls against a backdrop of sagging revenues, manufacturers enjoyed a pickup
in sales which translated into solid bottom line gains. Similarly, materials
companies appreciated as worldwide demand surged, driving the prices of
commodities such as steel, aluminum and coal higher. +
On the downside, the information technology sector slumped. After riding a rally
through the second half of 2003, investors determined that earnings expectations
and valuations within the group had exceeded realistic levels and began a
selloff in early 2004. Questions surrounding corporate investment further
accelerated the correction. +
Healthcare names also sagged, especially those within the pharmaceutical space
as election-year posturing elevated debates about drug pricing and the potential
for re-importing drugs from Canada. In addition, the political climate raised
uncertainties among service providers and in turn, cooled investor enthusiasm.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS SUBSTANTIALLY ALL OF ITS ASSETS IN COMMON STOCK OF COMPANIES
THAT MAKE UP THE S&P 500 (R) INDEX.THE ADVISOR ATTEMPTS TO TRACK THE PERFORMANCE
OF THE S&P 500 (R) INDEX TO ACHIEVE A CORRELATION OF 0.95 BETWEEN THE
PERFORMANCE OF THE FUND AND THAT OF THE S&P 500(R) INDEX WITHOUT TAKING INTO
ACCOUNT THE FUND'S EXPENSES.
IT IS IMPORTANT TO REMEMBER THAT THERE ARE RISKS ASSOCIATED WITH INDEX
INVESTING, INCLUDING THE POTENTIAL RISK OF MARKET DECLINE, AS WELL AS THE RISKS
ASSOCIATED WITH INVESTING IN SPECIFIC COMPANIES.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- -------
Institutional 12.75% -2.58% 10.59% $27,362
- -------------------------------------------------------------------------------
Class A* 6.87% -3.82% 9.76% $25,370
- -------------------------------------------------------------------------------
Class B** 6.64% -3.93% 9.52% $24,825
- -------------------------------------------------------------------------------
Class C** 11.66% -3.55% 9.52% $24,837
- -------------------------------------------------------------------------------
Advisor 12.21% -3.05% 10.08% $26,131
- -------------------------------------------------------------------------------
Select 12.61% -2.66% 10.53% $27,206
- -------------------------------------------------------------------------------
Preferred 12.59% -2.72% 10.47% $27,059
- -------------------------------------------------------------------------------
Trust 12.49% -2.82% 10.36% $26,798
- -------------------------------------------------------------------------------
S&P 500 (R) Index 1 13.16% -2.24% 11.09% $28,617
- -------------------------------------------------------------------------------
Lipper S&P 500 (R)
Index Objective Funds
Average 1 12.46% -2.76% 10.65% $27,509
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
THE INCEPTION DATE FOR THE SELECT, PREFERRED AND TRUST SHARES IS OCTOBER 20,
2003. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF THE SELECT, PREFERRED AND TRUST
SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO
REFLECT EXPENSES FOR SELECT, PREFERRED AND TRUST 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
General Electric Co. ............................................ 3.12%
Microsoft Corp. ................................................. 2.77%
Exxon Mobil Corp. ............................................... 2.74%
Pfizer, Inc. .................................................... 2.20%
Wal-Mart Stores, Inc. ........................................... 2.07%
Citigroup, Inc. ................................................. 2.05%
American International Group, Inc. .............................. 1.66%
Bank of America Corp. ........................................... 1.57%
Johnson & Johnson ............................................... 1.48%
Intel Corp. ..................................................... 1.42%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
EQUITY LIPPER
INDEX FUND S&P 500(R) INDEX
(INSTITUTIONAL S&P 500(R) OBJECTIVE FUNDS
SHARES) INDEX AVERAGE
------- ----------- -------
7/94 $10000 $10000 $10000
7/95 12502 12607 12552
7/96 14488 14694 14570
7/97 21866 22351 22050
7/98 25993 26666 26199
7/99 31181 32053 31393
7/00 33830 34927 34079
7/01 28903 29924 29102
7/02 22018 22858 22143
7/03 24268 25289 24404
7/04 27362 28617 27509
The minimum investment for the Institutional Share Class is $5 million, based on
the initial investment of $5 million the ending value for the Institutional
Shares would have been $13,680,875.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the S&P 500 (R) Index, which
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, and the Lipper S&P 500 (R) Index Objective Funds Average,
which is representative of the average of the total returns reported by all of
the mutual funds designated by Lipper, Inc., which fell into this category.
The S&P 500 (R) 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 S&P 500 (R) 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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
For the 12-month period ended July 31, 2004, the Fifth Third Balanced Fund
(Institutional Shares) gained 6.76%, lagging the equity index for the Fund, but
outperforming the bond index. The S&P 500 (R) Index 1 and the Lehman Brothers
Aggregate Bond Index 1 advanced 13.16% and 4.84%, respectively.
Equity investors' preferences swung from more speculative stocks during the
first part of the period to more stable names through much of the second half.
Carrying a bias toward companies with sustainable earnings, the equity portion
of the Fund trailed its benchmark.
The consumer discretionary sector weighed as cable stocks underperformed and
media holdings slumped amid muted advertising outlooks. Generally, we believe
the ad business picks up as the economy expands, but the industry's global
revenues failed to keep pace with U.S. growth. +
Our measured approach in the financial group also hampered returns. By focusing
on steadier companies offering a broad array of services, we missed out on the
rally among narrowly focused brokerages and credit card issuers. +
Effective stock selection boosted the performance of the consumer staples and
healthcare sectors. Having invested in some large personal care names when
slower growth companies fell out of favor in 2003, we enjoyed a rebound in the
steady performers after the New Year. Similarly, targeted buys within the
medical device and large pharmaceutical areas worked well. +
On the fixed income side of the Fund, mortgage-backed securities boosted returns
as we built an overweight position in the wake of a highly volatile period in
the home loan market and recognized gains as it stabilized. Corporate issues
also contributed positively, although rising values prompted us to pare back the
position by the period's end. +
Our commitment to quality fixed income investments modestly hampered returns as
riskier corporate securities outperformed during the first part of the period
and sustained gains throughout the second half.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- -------
Institutional 6.76% -0.17% 8.04% $21,670
- -------------------------------------------------------------------------------
Class A* 1.16% -1.45% 7.33% $20,285
- -------------------------------------------------------------------------------
Class B** 0.72% -1.52% 6.92% $19,527
- -------------------------------------------------------------------------------
Class C** 5.71% -1.10% 7.11% $19,879
- -------------------------------------------------------------------------------
Advisor 6.31% -0.76% 7.43% $20,479
- -------------------------------------------------------------------------------
S&P 500 (R) Index 1 13.16% -2.24% 11.09% $28,617
- -------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 4.84% 7.25% 7.28% $20,195
- -------------------------------------------------------------------------------
Lipper Balanced
Target Maturity Funds
Average 1 9.23% 1.49% 8.21% $22,318
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fannie Mae, 5.50%, 6/1/2033 TBA ................................. 2.85%
Bank of America ................................................. 2.78%
General Electric Co. ............................................ 2.69%
Microsoft Corp. ................................................. 2.57%
Allstate Corp. .................................................. 2.41%
American International Group, Inc. .............................. 2.02%
Wal-Mart Stores, Inc. ........................................... 1.99%
Exxon Mobil Corp. ............................................... 1.87%
Pfizer, Inc. .................................................... 1.72%
IBM Corp. ....................................................... 1.69%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
BALANCED FUND LEHMAN BROTHERS BALANCED
(INSTITUTIONAL S&P 500(R) AGGREGATE FUNDS
SHARES) INDEX BOND INDEX AVERAGE
------- ----- ---------- -------
7/94 $10000 $10000 $10000 $10000
7/95 11937 12607 11011 11664
7/96 12714 14694 11621 12804
7/97 17606 22351 12872 16762
7/98 19087 26666 13884 18604
7/99 21853 32053 14230 20709
7/00 25919 34927 15079 22230
7/01 22903 29924 16993 21714
7/02 19161 22858 18273 18718
7/03 20299 25289 19263 20398
7/04 21670 28617 20195 22318
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the S&P 500 (R) Index, which
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, which is
generally representative of the bond market as a whole, and the Lipper
Balanced Target Maturity Funds Average, representative of the average of the
total returns reported by all of the mutual funds designated by Lipper, Inc.,
which fell into this category.
The S&P 500 (R) Index and the Lehman Brothers Aggregate Bond 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 Balanced Target Maturity 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 mutual
funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND
For the 12-month period ended July 31, 2004, the Fifth Third Micro Cap Value
Fund (Institutional Shares) gained 32.84%, topping its benchmark, the Russell
2000 (R) Value Index 1, which advanced 22.83%.
During the period, a number of factors converged to create an environment for
robust returns in the micro cap value space. While investors discovered low
valuations across the asset class and bid up prices, larger companies facing an
increasingly difficult profit environment adopted the mind-set that acquisitions
offer a relatively clear cut way to improve earnings. At the same time, small
companies grew more receptive to buyout offers as the costs related to
compliance with the Sarbanes-Oxley Act significantly eroded earnings.
Accordingly, the Fund benefited from the accelerating acquisition trend as a
series of buyouts, mergers and offers allowed us to realize targeted returns
quicker than expected.
One area that thrived was healthcare, where a focus on developers of innovative
therapies proved beneficial. Enhancing returns was the broader market's
avoidance of large cap pharmaceuticals, which freed up money for investment in
smaller companies.
An underweight position, relative to the benchmark, in the energy sector
hampered performance. Although the Fund's collection of oil service outfits
advanced as oil prices spiked, a limited supply of micro cap companies in the
group curtailed our ability to invest. +
As contrarians, we're always sifting through the unloved sections of the market,
seeking out undervalued companies. In early 2003, we started accumulating basic
materials companies while the rest of the market fretted about the war in Iraq.
As the anxieties dissipated and the U.S. economy demonstrated solid growth,
demand for materials surged, propelling select holdings higher.
Regardless of any sector trends, we remain bottom-up investors, focused on a
company's intrinsic value. This approach helps explain our large underweighting,
relative to the benchmark, in the financial services industry. Although many
small banks rallied amid a consolidation wave, few met our valuation criteria,
so we remained on the sidelines.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MICRO CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MICRO-CAP
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MICRO-CAP
STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY
STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
---- ------ ------ --------- -------
Institutional 2/1/98 32.84% 16.49% 15.90% $26,066
- -------------------------------------------------------------------------------
Class A* 2/1/98 25.87% 15.11% 14.86% $24,586
- -------------------------------------------------------------------------------
Class B** 2/1/98 27.13% 15.35% 14.98% $24,750
- -------------------------------------------------------------------------------
Class C** 2/1/98 32.13% 15.81% 15.29% $25,189
- -------------------------------------------------------------------------------
Advisor 2/1/98 32.44% 16.08% 15.50% $25,486
- -------------------------------------------------------------------------------
Russell 2000 (R) Value
Index 1 22.83% 12.30% 8.98% $17,490
- -------------------------------------------------------------------------------
Lipper Small-Cap Value
Funds Average 1 22.48% 12.06% 8.69% $17,467
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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 AGGRESSIVEVALUE 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 CAPVALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE
OF THE FIFTHTHIRD/MAXUS AGGRESSIVEVALUE FUND INVESTOR SHARES WITH AN INCEPTION
DATE OF FEBRUARY 1, 1998. 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Symmetricom, Inc. ............................................... 2.32%
Material Sciences Corp. ......................................... 1.94%
Comstock Resources, Inc. ........................................ 1.82%
Stepan Co. ...................................................... 1.81%
Bassett Furniture Industries, Inc. .............................. 1.75%
Brush Wellman, Inc. ............................................. 1.57%
Oregon Steel Mills, Inc. ........................................ 1.56%
Hologic, Inc. ................................................... 1.53%
Steinway Musical Instruments .................................... 1.38%
Michael Baker Corp. ............................................. 1.37%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
MICRO CAP VALUE SMALL-CAP
FUND (INSTITUTIONAL RUSSELL 2000 VALUE FUNDS
SHARES) VALUE INDEX AVERAGE
------- ----------- -------
2/1/98 $10000 $10000 $10000
10480 11035 11169
10280 10636 10561
7/98 9800 9803 9791
8380 8735 8347
9713 9527 9341
10217 8604 8418
12393 10028 9982
7/99 12151 9790 9881
11305 9244 9263
11799 9385 9792
13004 9744 10205
12373 9934 10303
7/00 12415 10265 10408
12562 10663 11010
11654 11528 11444
12708 11640 11607
14845 12994 13198
7/01 14370 12703 13077
12636 11262 11466
14323 13144 13532
15819 14403 14709
15843 14098 14167
7/02 13990 12003 12340
12565 11097 11447
14358 11643 12059
14190 11051 11395
15698 12101 12336
18641 13562 13704
7/03 19622 14239 14333
20867 14610 14701
24323 17001 16973
26445 18178 17987
27127 18332 18254
7/04 26066 17490 17467
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 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 companies with a
less-than-average growth orientation. Companies in this index generally have
low price-to-book and price-to-earnings ratios. The Lipper Small-Cap Value
Funds Average is representative of the average of the total returns reported
by all of the mutual funds designated by Lipper, Inc., which fell 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 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.
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, 2004.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND
For the 12-month period ended July 31, 2004, the Fifth Third Small Cap Value
Fund (Institutional Shares) advanced 20.11%, underperforming its benchmark, the
Russell 2000 (R) Value Index 1, which returned 22.83%.
Investor enthusiasm that helped propel a small cap rally through the second half
of 2003 gave way to fears about increasing oil prices, rising interest rates and
a slowing rate of economic growth starting in January 2004. During the
subsequent correction, investors preferred larger, more-stable names relative to
the less-liquid small cap segment of the market.
Overweight positions, relative to the benchmark, and stock selection in two
sectors hampered returns for the Fund. Positions in the telecommunications group
failed to gain any traction and select names in the information technology
sector tumbled after enjoying an advance during the first part of the period. +
Contributing significantly to the Fund's absolute gains were holdings in the
energy sector, where the decision to overweight oil-related names during the
summer of 2003 paid off handsomely. Concentrated in oil and natural gas
exploration and production companies and oil services firms, the Fund was
extensively exposed to the surge in oil prices during the latter part of the
period. +
Stocks in the materials and industrial sectors also boosted performance and
resulted in realized gains. More specifically, a number of gold mining stocks
enhanced returns in the materials group, while manufacturing stocks accounted
for much of the industrial sector gains as the combination of expanding economic
activity and reduced operating expenses translated into markedly improved bottom
lines. +
The Fund remains overweight in the healthcare sector, where it dramatically
outperformed the benchmark during the period. It is also overweight in energy
and information technology, while being underweight in the financial, consumer
discretionary and industrial groups. +
During the second quarter of 2004, Fifth Third Asset Management assumed full
investment advisory responsibilities for the Fund.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
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.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
---- ------ --------- --------
Institutional 4/1/03 20.11% 29.01% $14,037
- -------------------------------------------------------------------------------
Class A* 4/1/03 13.83% 23.78% $13,286
- -------------------------------------------------------------------------------
Class B** 4/1/03 14.02% 25.02% $13,462
- -------------------------------------------------------------------------------
Class C** 4/1/03 18.85% 27.66% $13,842
- -------------------------------------------------------------------------------
Advisor 4/1/03 19.52% 28.36% $13,944
- -------------------------------------------------------------------------------
Russell
2000 (R) Value
Index 1 22.83% 41.10% $15,825
- -------------------------------------------------------------------------------
Lipper Small-Cap
Core Funds Average 1 20.10% 37.88% $15,360
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Allegheny Energy, Inc. .......................................... 2.87%
Veritas DGC, Inc. ............................................... 2.78%
Humana, Inc. .................................................... 2.77%
Tidewater, Inc. ................................................. 2.37%
Headwaters, Inc. ................................................ 2.36%
Abercrombie & Fitch Co. ......................................... 2.29%
Andrx Corp. ..................................................... 2.25%
Photronics, Inc. ................................................ 2.24%
LAM Research Corp. .............................................. 2.20%
McAfee, Inc. .................................................... 2.20%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
SMALL CAP LIPPER
VALUE FUND SMALL-CAP
(INSTITUTIONAL RUSSELL 2000 CORE FUNDS
SHARES) VALUE INDEX AVERAGE
------- ----------- -------
4/1/03 $10000 $10000 $10000
10327 10950 10860
11027 12068 11866
11240 12272 12162
7/03 11687 12884 12786
12140 13374 13379
11860 13220 13165
12853 14298 14248
13380 14847 14774
13841 15384 15164
14157 15916 15695
14627 16224 15948
14837 16449 16087
14128 15598 15463
14241 15786 15613
14732 16588 16270
7/04 14037 15825 15360
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 2000 (R) Value Index
and the Lipper Small-Cap Core Funds Average. The Russell 2000 (R) Value Index
measures the performance of those Russell 2000 companies with a
less-than-average growth orientation. Companies in this index generally have
low price-to-book and price-to-earnings ratios. The Lipper Small-Cap Core
Funds Average is representative of the average of the total returns reported
by all of the mutual funds designated by Lipper, Inc., which fell 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 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.
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, 2004.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
For the 12-month period ended July 31, 2004, the Fifth Third Multi Cap Value
Fund (Institutional Shares) advanced 19.36%, compared to its benchmark, the
Russell 3000 (R) Value Index 1, which returned 18.04%.
After a lengthy stretch where more attractive values consistently appeared in
the small cap universe, the pendulum swung back toward larger names during the
period. In response, the majority of our new purchases involved larger holdings,
a development that effectively split the Fund's allocation evenly between stocks
with a market capitalization greater than $5 billion and those valued less than
$5 billion.
Within the broader market, a small cap rally driven by low quality, higher beta
stocks in the second half of 2003 faltered in early 2004. Anxieties over oil
prices, interest rates and a slowing rate of economic growth contributed to a
shift in sentiment that sent many investors looking for better quality, low beta
defensive stocks.
Among the Fund's large cap stocks that benefited from the market's mood change
were select food and beverage companies within the consumer staples sector.
Interestingly, small cap companies in the healthcare sector added to gains while
larger entities in the group languished-specifically traditional pharmaceutical
concerns which contended with growing fears over a greater role for the
government in setting prices. +
Elsewhere, holdings both large and small in the energy industry further enhanced
the Fund's performance as uneasiness over supply lines from the Middle East
combined with sustained elevated demand to push crude oil prices higher.
Similarly, a manufacturing recovery, which coincided with the rebound in the
U.S. economy, bolstered returns for industrials sector stocks from across the
capitalization spectrum. +
Weighing on performance were small cap positions in the telecommunications group
and the information technology sector, which slumped after participating in the
rally during the first part of the period. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
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.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 Year 5 Year 10 Year VALUE 2
------ ------ ------- -------
Institutional 19.36% 9.39% 11.98% $30,994
- -------------------------------------------------------------------------------
Class A* 13.13% 7.96% 11.23% $28,978
- -------------------------------------------------------------------------------
Class B** 13.15% 8.36% 11.58% $29,903
- -------------------------------------------------------------------------------
Class C** 18.22% 8.64% 11.57% $29,895
- -------------------------------------------------------------------------------
Advisor 18.81% 8.94% 11.73% $30,313
- -------------------------------------------------------------------------------
Russell 3000 (R) Value Index 1 18.04% 2.88% 12.13% $31,423
- -------------------------------------------------------------------------------
Russell MidCap (R) Value Index 1 23.43% 8.57% 13.43% $35,255
- -------------------------------------------------------------------------------
Lipper Multi-Cap Value
Funds Average 1 16.61% 2.84% 10.93% $28,682
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR 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 FIFTHTHIRD/MAXUS EQUITY FUND
INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Transocean Sedco Forex, Inc. .................................... 1.64%
Borgwarner, Inc. ................................................ 1.56%
Honeywell International, Inc. ................................... 1.45%
Apple Computer, Inc. ............................................ 1.33%
ConocoPhillips .................................................. 1.30%
Cigna Corp. ..................................................... 1.28%
SUPERVALU, Inc. ................................................. 1.26%
Marathon Oil Corp. .............................................. 1.24%
Schlumberger, Ltd. .............................................. 1.24%
Conagra Foods, Inc. ............................................. 1.14%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
MULTI CAP LIPPER
VALUE FUND RUSSELL MULTI-CAP
(INSTITUTIONAL RUSSELL 3000(R) MIDCAP(R) VALUE FUNDS
SHARES) VALUE INDEX VALUE INDEX AVERAGE
------- ----------- ----------- -------
7/94 $10000 $10000 $10000 $10000
7/95 11969 12042 12017 12111
7/96 12625 13889 13431 13628
7/97 18423 20562 19385 19626
7/98 18342 23979 21541 21696
7/99 19786 27265 23368 24339
7/00 21900 26080 22588 24113
7/01 25329 28615 27243 27280
7/02 21652 23920 25150 22242
7/03 25966 26622 28562 24530
7/04 30994 31423 35255 28682
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 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 mid cap companies with lower price-to-book
ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds
Average is representative of the average of the total returns reported by
all of the mutual funds designated by Lipper, Inc., which fell into this
category.
The Russell 3000 (R) Value and the Russell MidCap (R) Value 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 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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
For the 12-month period ended July 31, 2004, the Fifth Third Disciplined Large
Cap Value Fund (Institutional Shares) advanced 19.22%, outperforming its
benchmark, the Russell 1000 (R) Value Index 1, which returned 17.68%.
In a 12-month period during which investors' affections swung from low quality,
higher beta ++ small cap stocks to better quality, lower beta defensive plays,
the Fund's outperformance hinged on our successful anticipation of the mood
change. Our analysis in the latter part of 2003 showed that stable companies
with steady earnings offered more potential for appreciation, from a valuation
perspective, and our conclusions proved correct.
Related moves that aided returns included a trimming of exposure to the
information technology sector and an expansion within the consumer staples
group. Previously equal weight, relative to the benchmark, in tech names, we cut
back just in time to watch the sector dive in the latter part of the period.
Conversely, we shored up on food and beverage companies and participated in the
consumer staples group's gains as reliable earners led the market. +
Consistently overweight positions in the energy and industrials sectors further
enhanced performance. Uneasiness over the Middle East combined with unwavering
high demand levels to drive up crude oil prices, which contributed to solid
gains from the energy group. Rising earnings expectations boosted industrials as
manufacturing concerns enjoyed a renaissance amid the expanding U.S. economy. +
Positive developments on the economic front invoked fears of increased interest
rates, which sat at multi-generational lows, and the resulting pessimism weighed
on the market. Concurrently, the financial sector slumped, a development that
benefited the Fund, which was underexposed due to our determination that
profitability levels in the group were historically high. +
On the downside, the healthcare sector lost ground. More specifically,
pharmaceutical companies struggled amid tepid outlooks due to weak product
pipelines and growing fears over a greater role for the government in setting
prices. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- -------
Institutional 19.22% 2.33% 10.89% $28,108
- ------------------------------------------------------------------
Class A* 13.04% 1.03% 10.15% $26,296
- ------------------------------------------------------------------
Class B** 13.07% 1.17% 9.86% $25,614
- ------------------------------------------------------------------
Class C** 18.07% 1.35% 9.88% $25,663
- ------------------------------------------------------------------
Russell 1000 (R) Value
Index 1 17.68% 2.19% 12.14% $31,445
- ------------------------------------------------------------------
Lipper Equity Income
Funds Average 1 14.58% 1.65% 9.76% $25,668
- ------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS *
Honeywell International, Inc. ................................... 3.27%
General Dynamics Corp. .......................................... 3.12%
ConocoPhillips .................................................. 2.90%
CVS Corp. ....................................................... 2.87%
SunTrust Banks, Inc. ............................................ 2.78%
Gannett Co., Inc. ............................................... 2.69%
Metlife Inc. .................................................... 2.48%
Dow Chemical Co. ................................................ 2.41%
Chevrontexaco Corp. ............................................. 2.30%
International Paper ............................................. 2.29%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
++ BETA IS A MEASURE OF VOLATILITY, OR SYSTEMATIC RISK, OF A SECURITY OF
PORTFOLIO IN COMPARISON TO THE MARKET AS A WHOLE.
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
DISCIPLINED LIPPER
LARGE CAP VALUE EQUITY
(INSTITUTIONAL RUSSELL 1000 INCOME FUNDS
SHARES) VALUE INDEX AVERAGE
------- ----------- -------
7/94 $10000 $10000 $10000
7/95 11523 12090 11690
7/96 13320 14010 13470
7/97 19005 20851 18516
7/98 22725 24544 20672
7/99 25051 28222 23326
7/00 23558 26812 22834
7/01 24071 29155 24547
7/02 20950 24129 20562
7/03 23576 26722 22238
7/04 28108 31445 25668
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 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 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
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Russell 1000 (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 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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
AGGRESSIVE FUND SM
For the 12-month period ended July 31, 2004, the Fifth Third LifeModel
Aggressive Fund SM (Institutional Shares) returned 12.83%, while its benchmarks,
the Wilshire 5000 Index 1 advanced 1 3.81 % and the Lehman Brothers Intermediate
Government/Credit Bond Index 1 gained 3.59%.
During the period, the Fund was positioned to take advantage of the above-trend
economic growth in the U.S. and the expansion of corporate profits.
Within the first half of the fiscal year, our bias favored stocks, small cap
equities in particular. We believe this strategy worked well for our
shareholders.
During the second half of the fiscal year, the emphasis remained on stocks, but
was switched to large cap equities. The attraction to stocks persisted even as
turbulence roiled the equity markets in the summer of 2004, due in part to the
low returns offered in the bond market. We did not feel that bond investors were
being rewarded with enough real yield (the figure remaining after inflation is
taken into account) to compensate for emerging inflationary concerns and a
looming tightening cycle from the Fed.
Reinforcing the change in bias to large cap stocks were extreme valuations in
small cap stocks and the potential for higher bond yields later in the year.
We believe our posture added value for shareholders during the fiscal year as
stocks outperformed bonds and there was a noticeable difference in the returns
between large cap and small cap stocks from the first half of the period to the
second.
At the end of the period, we remained optimistic about the U.S. economy and
stock market. Possible headwinds include higher energy prices, terror threats
and the unknown of the November election, but rising corporate profits and
relatively low interest rates have the potential to allow the U.S. economy to
continue its expansion at a moderate pace.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER
FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH
BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS.
CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
-------- ------ --------- -------
Institutional 8/1/02 12.83% 13.39% $12,853
- -------------------------------------------------------------------------------
Class A* 8/1/02 6.84% 10.16% $12,133
- -------------------------------------------------------------------------------
Class B** 8/1/02 6.70% 10.39% $12,182
- -------------------------------------------------------------------------------
Class C** 8/1/02 11.67% 12.22% $12,590
- -------------------------------------------------------------------------------
Wilshire 5000 Index 1 13.81% 13.31% $12,840
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 3.59% 5.07% $11,039
- -------------------------------------------------------------------------------
Blended Index 3 12.79% 12.49% $12,660
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Fifth Third Disciplined
Large Cap Value Fund 28.40%
Fifth Third Quality
Growth Fund 27.43%
Fifth Third Multi
Cap Value Fund 9.56%
Fifth Third Mid
Cap Growth Fund 9.27%
Fifth Third International
Equity Fund 7.75%
Fifth Third Small
Cap Value Fund 5.83%
Fifth Third Small
Cap Growth Fund 5.69%
Fifth Third Prime
Money Market Fund 3.09%
Fifth Third Intermediate
Bond Fund 2.98%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
AGGRESSIVE FUND SM
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
LIFEMODEL
AGGRESSIVE LEHMAN BROTHERS
FUNDSM INTERMEDIATE
(INSTITUTIONAL WILSHIRE 5000 GOVERNMENT/CREDIT BOND
SHARES) INDEX INDEX
------- ----- -----
8/1/02 $10000 $10000 $10000
9970 10059 10149
9070 9049 10331
9680 9742 10290
10440 10329 10281
9798 9757 10506
9497 9511 10505
9387 9350 10653
9346 9456 10664
10098 10231 10746
10820 10856 10961
10990 11017 10954
7/03 11392 11282 10657
11843 11553 10682
11562 11425 10952
12396 12123 10849
12657 12293 10864
13136 12845 10959
13414 13131 11030
13599 13322 11143
13455 13179 11230
12992 12899 10963
13218 13077 10914
13491 13349 10946
7/04 12853 12840 11039
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Wilshire 5000 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 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 Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit
Bond Index are unmanaged and do not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees. The
Fund'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.
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, 2004.
3 The Blended Index is a hypothetical unmanaged index comprised of 90%
Wilshire Index and 10% Lehman Brothers Intermediate Government/Credit Bond
Index. The Blended Index was created by Fifth Third Asset Management, Inc. The
Fund will not necessarily maintain this 90/10 weighting at all times but will
invest within a range of stock, bond, and money market funds as described in
the prospectus.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
For the 12-month period ended July 31, 2004, the Fifth Third LifeModel
Moderately Aggressive Fund SM (Institutional Shares) returned 10.54%, while its
benchmarks, the Wilshire 5000 Index 1 advanced 13.81% and the Lehman Brothers
Intermediate Government/Credit Bond Index 1 gained 3.59%.
During the period, the Fund was positioned to take advantage of the above-trend
economic growth in the U.S. and the expansion of corporate profits. As a result,
we maintained a consistent underweighting in bonds.
Within the first half of the fiscal year, our bias favored stocks, small cap
equities in particular. We believe this strategy worked well for our
shareholders.
During the second half of the fiscal year, the emphasis remained on stocks, but
was switched to large cap equities. We also skewed the bond portfolio toward
shorter-term bonds.
We modified our stance as small cap stocks grew increasingly expensive, relative
to large cap stocks, and with the realization that the Fed may likely increase
interest rates.
The attraction to stocks persisted even as turbulence roiled the equity markets
in the summer of 2004, due in part to the low returns offered in the bond
market. We did not feel that bond investors were being rewarded with enough real
yield (the figure remaining after inflation is taken into account) to compensate
for emerging inflationary concerns and a looming tightening cycle from the Fed.
We believe our posture added value for shareholders during the fiscal year as
stocks outperformed bonds and there was a noticeable difference in the returns
between large cap and small cap stocks from the first half of the period to the
second.
At the end of the period, we remained optimistic about the U.S. economy and
stock market. Possible headwinds include higher energy prices, terror threats
and the unknown of the November election, but rising corporate profits and
relatively low interest rates have the potential to allow the U.S. economy to
continue its expansion at a moderate pace.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER
FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH
BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS.
CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
---- ------ --------- -------
Institutional 8/1/02 10.54% 13.64% $12,909
- -------------------------------------------------------------------------------
Class A* 8/1/02 4.80% 10.50% $12,206
- -------------------------------------------------------------------------------
Class B** 8/1/02 4.47% 10.76% $12,265
- -------------------------------------------------------------------------------
Class C** 8/1/02 9.45% 12.55% $12,664
- -------------------------------------------------------------------------------
Wilshire 5000
Index 1 13.81% 13.31% $12,840
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 3.59% 5.07% $11,039
- -------------------------------------------------------------------------------
Blended Index 3 10.74% 10.84% $12,300
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Fifth Third Disciplined
Large Cap Value Fund 23.44%
Fifth Third Quality
Growth Fund 22.65%
Fifth Third Intermediate
Bond Fund 10.96%
Fifth Third Short Term
Bond Fund 7.97%
Fifth Third Multi
Cap Value Fund 7.61%
Fifth Third Mid
Cap Growth Fund 7.38%
Fifth Third International
Equity Fund 5.82%
Fifth Third
Bond Fund 3.99%
Fifth Third Small Cap
Value Fund 3.89%
Fifth Third Small Cap
Growth Fund 3.80%
Fifth Third Prime
Money Market Fund 2.49%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATELY AGGRESSIVE FUND SM
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
LIFEMODEL LEHMAN BROTHERS
MODERATELY INTERMEDIATE
AGGRESSIVE FUNDSM WILSHIRE 5000 GOVERNMENT/CREDIT BOND
(INSTITUTIONAL SHARES) INDEX INDEX
---------------------- ----- -----
8/1/02 $10000 $10000 $10000
10420 10059 10149
9700 9049 10331
10180 9742 10290
10821 10329 10281
10290 9757 10506
10120 9511 10505
10039 9350 10653
10011 9456 10664
10644 10231 10746
11277 10856 10961
11406 11017 10954
7/03 11678 11282 10657
12061 11553 10682
11866 11425 10952
12513 12123 10849
12725 12293 10864
13125 12845 10959
13362 13131 11030
13527 13322 11143
13421 13179 11230
13009 12899 10963
13174 13077 10914
13385 13349 10946
7/04 12909 12840 11039
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Wilshire 5000 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 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 Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit
Bond Index are unmanaged and do not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees. The
Fund'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.
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, 2004.
3 The Blended Index is a hypothetical unmanaged index comprised of 70%
Wilshire Index and 30% Lehman Brothers Intermediate Government/Credit Bond
Index. The Blended Index was created by Fifth Third Asset Management, Inc. The
Fund will not necessarily maintain this 70/30 weighting at all times but will
invest within a range of stock, bond, and money market funds as described in
the prospectus.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATE FUND SM
For the 12-month period ended July 31, 2004, the Fifth Third LifeModel Moderate
Fund SM (Institutional Shares) returned 8.84%, while its benchmarks, the
Wilshire 5000 Index 1 advanced 13.81% and the Lehman Brothers Intermediate
Government/Credit Bond Index 1 gained 3.59%.
During the period, the Fund was positioned to take advantage of the above-trend
economic growth in the U.S. and the expansion of corporate profits. As a result,
we maintained a consistent underweighting in bonds.
Within the first half of the fiscal year, our bias favored stocks, small cap
equities in particular. We believe this strategy worked well for our
shareholders.
During the second half of the fiscal year, the emphasis remained on stocks, but
was switched to large cap equities. We also skewed the bond portfolio toward
shorter-term bonds.
We modified our stance as small cap stocks grew increasingly expensive, relative
to large cap stocks, and with the realization that the Fed may likely increase
interest rates.
The attraction to stocks persisted primarily due to the low returns offered in
the bond market. We did not feel that bond investors were being rewarded with
enough real yield (the figure remaining after inflation is taken into account)
to compensate for emerging inflationary concerns and a looming tightening cycle
from the Federal Reserve.
We believe our posture added value for shareholders in the fiscal year as stocks
outperformed bonds and there was a noticeable difference in the returns between
large cap and small cap stocks from the first half of the period to the second.
At the end of the period, we remained optimistic about the U.S. economy and
stock market. Possible headwinds include higher energy prices, terror threats
and the unknown of the November election, but rising corporate profits and
relatively low interest rates have the potential to allow the U.S. economy to
continue its expansion at a moderate pace.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER
FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH
BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS.
CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------ --------- -------
Institutional 8/1/02 8.84% 9.76% $12,044
- -------------------------------------------------------------------------------
Class A* 8/1/02 3.06% 6.72% $11,386
- -------------------------------------------------------------------------------
Class B** 8/1/02 2.80% 6.84% $11,413
- -------------------------------------------------------------------------------
Class C** 8/1/02 7.76% 8.72% $11,818
- -------------------------------------------------------------------------------
Wilshire 5000 Index 1 13.81% 13.31% $12,840
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 3.59% 5.07% $11,039
- -------------------------------------------------------------------------------
Blended Index 3 8.70% 9.19% $11,940
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Fifth Third Intermediate
Bond Fund 21.26%
Fifth Third Disciplined
Large Cap Value Fund 17.73%
Fifth Third Quality
Growth Fund 17.06%
Fifth Third Short Term
Bond Fund 14.13%
Fifth Third
Bond Fund 7.12%
Fifth Third Multi
Cap Value Fund 5.89%
Fifth Third Mid
Cap Growth Fund 5.73%
Fifth Third International
Equity Fund 3.93%
Fifth Third Small
Cap Value Fund 2.96%
Fifth Third Small
Cap Growth Fund 2.86%
Fifth Third Prime
Money Market Fund 1.33%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
28
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATE FUND SM
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LEHMAN BROTHERS
LIFEMODEL INTERMEDIATE
MODERATE FUNDSM WILSHIRE 5000 GOVERNMENT/CREDIT BOND
(INSTITUTIONAL SHARES) INDEX INDEX
---------------------- ----- -----
8/1/02 $10000 $10000 $10000
10080 10059 10149
9594 9049 10331
9934 9742 10290
10365 10329 10281
10053 9757 10506
9923 9511 10505
9913 9350 10653
9894 9456 10664
10358 10231 10746
10862 10856 10961
10944 11017 10954
7/03 11066 11282 10657
11339 11553 10682
11269 11425 10952
11696 12123 10849
11838 12293 10864
12129 12845 10959
12315 13131 11030
12450 13322 11143
12449 13179 11230
12107 12899 10963
12211 13077 10914
12367 13349 10946
7/04 12044 12840 11039
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Wilshire 5000 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 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 Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit
Bond Index are unmanaged and do not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees. The
Fund'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.
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, 2004.
3 The Blended Index is a hypothetical unmanaged index comprised of 50% Wilshire
Index and 50% Lehman Brothers Intermediate Government/Credit Bond Index. The
Blended Index was created by Fifth Third Asset Management, Inc. The Fund will
not necessarily maintain this 50/50 weighting at all times but will invest
within a range of stock, bond, and money market funds as described in the
prospectus.
29
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND SM
For the 12-month period ended July 31, 2004, the Fifth Third LifeModel
Moderately Conservative Fund SM (Institutional Shares) returned 7.39%, while its
benchmarks, the Wilshire 5000 Index 1 advanced 13.81% and the Lehman Brothers
Intermediate Government/Credit Bond Index 1 gained 3.59%.
During the first half of the period, our equity bias favored small cap stocks
while we maintained a neutral maturity weighting in the bond portfolio. This
strategy worked well for shareholders.
Within the second half of the fiscal year, the emphasis remained on stocks, but
was switched to large cap equities. We also made a change in emphasis of the
bond portfolio toward shorterterm bonds.
We modified our stance as small cap stocks grew increasingly expensive, relative
to large cap stocks, and with the realization that the Fed may likely increase
interest rates.
Overall, the attraction to stocks persisted primarily due to the low returns
offered in the bond market. We did not feel that bond investors were being
rewarded with enough real yield (the figure remaining after inflation is taken
into account) to compensate for emerging inflationary concerns.
We believe our posture added value for shareholders in the fiscal year as stocks
outperformed bonds.
At the end of the period, we remained optimistic about the U.S. economy and
stock market. Possible headwinds include higher energy prices, terror threats
and the unknown of the November election, but rising corporate profits and
relatively low interest rates have the potential to allow the U.S. economy to
continue its expansion at a moderate pace. The level of real yields available to
bond investors, however, is still too low in our estimation.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER
FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH
BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS.
CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------ --------- -------
Institutional 8/1/02 7.39% 7.64% $11,585
- -------------------------------------------------------------------------------
Class A* 8/1/02 1.78% 4.60% $10,940
- -------------------------------------------------------------------------------
Class B** 8/1/02 1.35% 4.69% $10,959
- -------------------------------------------------------------------------------
Class C** 8/1/02 6.29% 6.56% $11,354
- -------------------------------------------------------------------------------
Wilshire 5000 Index 1 13.81% 13.31% $12,840
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 3.59% 5.07% $11,039
- -------------------------------------------------------------------------------
Blended Index 3 7.68% 8.37% $11,759
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Fifth Third Intermediate
Bond Fund 26.36%
Fifth Third Short
Term Bond Fund 18.25%
Fifth Third Disciplined
Large Cap Value Fund 15.49%
Fifth Third Quality
Growth Fund 14.96%
Fifth Third
Bond Fund 9.15%
Fifth Third Multi
Cap Value Fund 4.00%
Fifth Third International
Equity Fund 3.95%
Fifth Third Mid
Cap Growth Fund 3.88%
Fifth Third Small
Cap Value Fund 1.98%
Fifth Third Small
Cap Growth Fund 1.93%
Fifth Third Prime
Money Market Fund 0.05%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
30
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND SM
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
LIFEMODEL LEHMAN BROTHERS
MODERATELY INTERMEDIATE
CONSERVATIVE FUNDSM WILSHIRE 5000 GOVERNMENT/CREDIT BOND
(INSTITUTIONAL SHARES) INDEX INDEX
---------------------- ----- -----
8/1/02 $10000 $10000 $10000
9930 10059 10149
9517 9049 10331
9827 9742 10290
10188 10329 10281
9958 9757 10506
9858 9511 10505
9858 9350 10653
9844 9456 10664
10238 10231 10746
10663 10856 10961
10726 11017 10954
7/03 10787 11282 10657
11000 11553 10682
10988 11425 10952
11314 12123 10849
11426 12293 10864
11674 12845 10959
11831 13131 11030
11957 13322 11143
11925 13179 11230
11620 12899 10963
11683 13077 10914
11817 13349 10946
7/04 11585 12840 11039
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Wilshire 5000 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 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 Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit
Bond Index are unmanaged and do not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees. The
Fund'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.
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, 2004.
3 The Blended Index is a hypothetical unmanaged index comprised of 40% Wilshire
Index and 60% Lehman Brothers Intermediate Government/Credit Bond Index. The
Blended Index was created by Fifth Third Asset Management, Inc. The Fund will
not necessarily maintain this 40/60 weighting at all times but will invest
within a range of stock, bond, and money market funds as described in the
prospectus.
31
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
CONSERVATIVE FUND SM
For the 12-month period ended July 31, 2004, the Fifth Third LifeModel
Conservative Fund SM (Institutional Shares) returned 5.44%, while its
benchmarks, the Wilshire 5000 Index 1 advanced 13.81% and the Lehman Brothers
Intermediate Government/Credit Bond Index 1 gained 3.59%.
Within the first half of the period, our equity bias favored small cap stocks
while we maintained a neutral maturity weighting in the bond portfolio. We
believe this strategy worked well for our shareholders.
During the second half of the fiscal year, the emphasis in stocks was switched
to large cap equities. We also made a change in direction of the bond portfolio
toward shorter-term bonds.
We modified our stance as small cap stocks grew increasingly expensive, relative
to large cap stocks, and with the realization that the Fed may likely increase
interest rates.
Overall, the attraction to stocks persisted primarily due to the low returns
offered in the bond market. We did not feel that bond investors were being
rewarded with enough real yield (the figure remaining after inflation is taken
into account) to compensate for emerging inflationary concerns.
We believe our posture added value for shareholders in the fiscal year as stocks
outperformed bonds.
At the end of the period, we remained optimistic about the U.S. economy and
stock market. Possible headwinds include higher energy prices, terror threats
and the unknown of the November election, but rising corporate profits and
relatively low interest rates have the potential to allow the U.S. economy to
continue its expansion at a moderate pace. The level of real yields available to
bond investors, however, is still too low in our estimation.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER
FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH
BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS.
CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31,2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------ --------- -------
Institutional 8/1/02 5.44% 6.51% $11,343
- -------------------------------------------------------------------------------
Class A* 8/1/02 -0.10% 3.50% $10,712
- -------------------------------------------------------------------------------
Class B** 8/1/02 -0.63% 3.54% $10,719
- -------------------------------------------------------------------------------
Class C** 8/1/02 4.34% 5.46% $11,120
- -------------------------------------------------------------------------------
Wilshire 5000 Index 1 13.81% 13.31% $12,840
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 3.59% 5.07% $11,039
- -------------------------------------------------------------------------------
Blended Index 3 5.63% 6.72% $11,399
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Fifth Third Intermediate
Bond Fund 35.82%
Fifth Third Short Term
Bond Fund 23.74%
Fifth Third
Bond Fund 12.01%
Fifth Third Disciplined
Large Cap Value Fund 8.68%
Fifth Third Quality
Growth Fund 8.20%
Fifth Third Prime
Money Market Fund 1.99%
Fifth Third Small
Cap Value Fund 1.95%
Fifth Third Multi
Cap Value Fund 1.95%
Fifth Third International
Equity Fund 1.94%
Fifth Third Mid
Cap Growth Fund 1.86%
Fifth Third Small
Cap Growth Fund 1.86%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
32
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
CONSERVATIVE FUND SM
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LEHMAN BROTHERS
LIFEMODEL INTERMEDIATE
CONSERVATIVE FUNDSM WILSHIRE 5000 GOVERNMENT/CREDIT BOND
(INSTITUTIONAL SHARES) INDEX INDEX
---------------------- ----- -----
8/1/02 $10000 $10000 $10000
10090 10059 10149
9909 9049 10331
10049 9742 10290
10290 10329 10281
10233 9757 10506
10192 9511 10505
10243 9350 10653
10245 9456 10664
10488 10231 10746
10813 10856 10961
10840 11017 10954
7/03 10758 11282 10657
10911 11553 10682
10996 11425 10952
11140 12123 10849
11222 12293 10864
11383 12845 10959
11499 13131 11030
11604 13322 11143
11609 13179 11230
11344 12899 10963
11365 13077 10914
11450 13349 10946
7/04 11343 12840 11039
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Wilshire 5000 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 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 Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit
Bond Index are unmanaged and do not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees. The
Fund'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.
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, 2004.
3 The Blended Index is a hypothetical unmanaged index comprised of 20% Wilshire
Index and 80% Lehman Brothers Intermediate Government/Credit Bond Index. The
Blended Index was created by Fifth Third Asset Management, Inc. The Fund will
not necessarily maintain this 20/80 weighting at all times but will invest
within a range of stock, bond, and money market funds as described in the
prospectus.
33
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
For the 12-month period ended July 31, 2004, the Fifth Third Strategic Income
Fund (Institutional Shares) advanced 7.04%, outpacing its benchmark, the Lehman
Brothers Intermediate Credit Bond Index 1, which returned 4.67%.
Gradually recovering from years in the shadows of growth stocks, income-oriented
assets such as real estate investment trusts (REITs), preferred stocks and
dividend-paying common stocks extended a recent run of positive momentum
throughout the period. As a result, the Fund delivered on its goal of providing
investors with a steady source of investment income while offering a measure of
protection against downside risk.
REITs excelled despite a brief sell-off in April, during which the market
digested significant sector-wide gains. Although share prices have lingered at
levels not traditionally supported by industry fundamentals, solid yields still
abound. Additionally, increased interest from investors seeking to diversify
their portfolios with real estate holdings has further propped up prices.
Preferred stocks, most of which are bond-like in that dividends are not paid out
of a company's profits, also rallied. Offering higher payouts than common
stocks, the specialized equities proved increasingly attractive as the broader
market stalled during the latter part of the period. The heightened valuations
for some of the preferred issues seemed too steep, however, so we trimmed the
Fund's exposure.
Similarly, we pared back our common stock holdings after the market's runup
through the closing months of 2003. Considering the slowdown in corporate profit
growth, continued geopolitical uneasiness and rising oil prices, we tightened
our focus on stable companies that have consistently generated dividend growth.
The flat performance of bonds modestly tempered returns. After hovering near
historic lows, interest rates moved back up in the spring as the economy showed
signs of strength and hints of inflation appeared. To maximize yields in such an
environment, we mostly sought out corporate issues that offered richer coupons
than government notes.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 7.04% 8.00% 7.95% $ 21,484
- -------------------------------------------------------------------------------
Class A* 1.34% 6.53% 7.18% $ 20,005
- -------------------------------------------------------------------------------
Class B** 1.07% 6.77% 7.19% $ 20,027
- -------------------------------------------------------------------------------
Class C** 6.07% 7.00% 7.15% $ 19,950
- -------------------------------------------------------------------------------
Advisor 6.55% 7.60% 7.72% $ 21,038
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Credit Bond Index 1 4.67% 7.67% 7.47% $ 20,545
- -------------------------------------------------------------------------------
Lipper Flexible Income
Funds Average 1 3.82% 3.33% 3.66% $ 16,041
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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 A,
CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON APRIL 1, 2004, APRIL 1,
2004 AND OCTOBER 29, 2001, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS A,
CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATES REPRESENT THE
PERFORMANCE FOR ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR THE RESPECTIVE SHARE CLASS. 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. 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Corporate Bond Equivalents 46.29%
Corporate Bonds 22.47%
Real Estate Investment Trusts 10.10%
Investment Companies 7.89%
Common Stocks 5.14%
Preferred Stocks 2.74%
Repurchase Agreements 2.30%
U.S. Government Agencies 1.82%
U.S. Treasury Notes 1.25%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
34
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LEHMAN LIPPER
STRATEGIC BROTHERS FLEXIBLE
INCOME INTERMEDIATE INCOME
INSTITUTIONAL CREDIT BOND FUNDS
SHARES INDEX AVERAGE
------ ----- -------
7/94 $10000 $10000 $10000
7/95 10945 11060 10746
7/96 11876 11694 11385
7/97 13515 12947 12402
7/98 14258 13790 12668
7/99 14625 14200 12604
7/00 15305 14911 12991
7/01 17404 16924 14054
7/02 18605 17861 14913
7/03 20071 19627 15273
7/04 21484 20545 16041
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Intermediate
Credit Bond Index which is generally representative of investment grade
corporate bonds with maturities from one to ten years, and the Lipper Flexible
Income Funds Average, which is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc., which
fell 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.
2 The Ending Value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
35
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SELECT STOCK FOUND
For the 12-month period ended July 31, 2004, the Fifth Third Select Stock Fund
(Institutional Shares) returned 5.12%, trailing its benchmarks, the Russell 1000
(R) Index 1 and the Russell 1000 (R) Growth Index 1, which gained 13.03% and
8.51%, respectively..
We spent much of the period tightening the Fund's focus on 20-30 stocks, placing
a premium on companies with exceptional growth fundamentals and solid potential
for long-term appreciation.
At times, our stock selection runs counter to the prevailing winds in the
broader market and performance may lag as a result. For example, global
investment banker Goldman Sachs has seen tremendous activity in its mergers and
acquisitions division and has profited from a comeback in the initial public
offering market, yet its stock has been pulled down with the rest of the
financial sector amid interest rate concerns. With a reduced cost structure and
a market leadership position, the company is primed for further growth if
revenues continue improving.
Electronics retailer Best Buy also underperformed due primarily to fears that
rising interest rates would prompt consumers to rein in spending. Yet with new
developments in higher-ticket and higher-margin items such as digital cameras
and next generation televisions, a number of solid revenue drivers remain.
As signs of improved growth rates within the global economy emerged, raw
materials companies such as Phelps Dodge rallied. The world's second largest
copper producer, Phelps Dodge has profited from strong international demand, led
by China, along with tight supplies of the commodity. +
Also providing a lift were Illinois Tool Works, Rockwell Automation and L-3
Communications Holdings. Illinois Tool Works, which produces manufacturing
components and systems, has broad exposure to the surging industrial market and
posted good earnings as a result. Rockwell Automation has benefited from
manufacturers' efforts to maximize productivity while much of L-3's success
stems from the booming market for high tech defense and security oriented
systems. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BECAUSE THE FUND MAY INVEST IN A SINGLE INDUSTRY, ITS SHARES DO NOT REPRESENT A
COMPLETE INVESTMENT PROGRAM. AS A NON-DIVERSIFIED FUND, THE VALUE OF THE SHARES
MAY FLUCTUATE MORE THAN SHARES INVESTED IN A BROADER RANGE OF INDUSTRIES AND
COMPANIES.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 5.12% -11.71% 5.56% $ 17,178
- -------------------------------------------------------------------------------
Class A* -0.32% -12.83% 4.87% $ 16,088
- -------------------------------------------------------------------------------
Class B** -0.84% -12.78% 4.58% $ 15,649
- -------------------------------------------------------------------------------
Class C** 4.10% -12.56% 4.57% $ 15,640
- -------------------------------------------------------------------------------
Russell 1000 (R) Index 1 13.03% -1.74% 11.08% $ 28,592
- -------------------------------------------------------------------------------
Russell 1000 (R)
Growth Index 1 8.51% -6.96% 9.11% $ 23,907
- -------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 9.53% -3.48% 8.89% $ 23,904
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO MARCH 6, 1998 THE QUOTED PERFORMANCE OF THE SELECT STOCK
FUND REFLECTS THE PERFORMANCE OF THE CLASS A SHARES OF THE 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 REFLECTS 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
EMC Corp. ....................................................... 5.59%
Agilent Technologies ............................................ 5.53%
Phelps Dodge .................................................... 5.29%
Nordstrom, Inc. ................................................. 4.97%
Pulte Homes, Inc. ............................................... 4.95%
Manpower, Inc. .................................................. 4.93%
Best Buy Co. .................................................... 4.91%
Teva Pharmaceutical Industries .................................. 4.69%
Goldman Sachs Group, Inc. ....................................... 4.49%
Boston Scientific ............................................... 4.33%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
36
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SELECT STOCK FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH
THIRD SELECT LIPPER
STOCK FUND LARGE-CAP
(INSTITUTIONAL RUSSELL 1000(R) RUSSELL 1000(R) CORE FUNDS
SHARES) INDEX GROWTH INDEX AVERAGE
------- ----- ------------ -------
7/94 $10000 $10000 $10000 $10000
7/95 12423 12616 13142 12272
7/96 15226 14602 15182 13900
7/97 22132 21952 23053 20355
7/98 27269 26092 27645 23545
7/99 32024 31217 34291 27855
7/00 33328 34594 42651 31192
7/01 22908 29509 27697 26387
7/02 16243 22750 19734 20162
7/03 16342 25296 22032 21773
7/04 17178 28592 23907 23904
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 1000 (R) Index and the
Russell 1000 (R) Growth Index. The Russell 1000 (R) Index measures the
performance of the 1,000 largest companies in the Russell 3000 Index, which
represents approximately 92% of the total market capitalization of the Russell
3000 Index. The Russell 1000 (R) Growth Index measures the performance of
those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values. The Lipper Large-Cap Core Funds Average, is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Russell 1000 (R) Index and the Russell 1000 (R) Growth 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
37
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
For the 12-month period ended July 31, 2004, the Fifth Third Technology Fund
(Institutional Shares) posted a negative 2.98% return, underperforming its
benchmark, the Merrill Lynch 100 Technology Index 1, which returned 12.08%.
Through the first half of the period, investor optimism about capital spending
outlooks raised expectations for corporate investment levels in technology. Low
interest rates and muted inflation added to the positive sentiments. Early in
2004, the Fed started to signal that rates would head higher in the
not-too-distant future, and anxieties over increased borrowing costs took center
stage. The equity markets responded with vicious sector rotations and dramatic
sentiment changes that claimed a share of tech's impressive 2003 gains.
One sector that fell out of favor and undercut the Fund's performance was
electronic manufacturing services (EMS). Hurt by excess capacity, which was
exacerbated by further migration into cheaper labor markets in Asia, extreme
pricing pressures and a slackening of demand, EMS companies struggled to meet
aggressive growth expectations. Similarly, software companies, which seemed more
focused on digesting past acquisitions than developing new and innovative
applications, reported meager sales growth and slumped in turn. +
Fueled by momentum traders, the markets punished nearly every company that
issued a downside surprise and was most severe in the more cyclical corners of
the tech industry. Interestingly, the valuations of e-commerce companies that
managed to beat expectations and raise future estimates skyrocketed. As we
considered the valuations extreme and the high growth rates unsustainable, we
avoided the high-profile e-commerce names, which also weighed on returns. +
Positive contributors included companies within the semiconductor and
communications equipment groups, although many of the gains occurred during the
early part of the period. Sequential improvements in sales, lean inventories and
a pickup in demand helped semiconductor companies while increased spending by
wireless service providers aided communications equipment entities. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
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. THE FUND COULD FLUCTUATE IN PRICE MORE THAN MOST FUNDS, DUE TO THE
VOLATILE NATURE OF THE TECHNOLOGY SECTOR.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------ --------- -------
Institutional 6/5/00 -2.98% -18.53% $ 4,269
- -------------------------------------------------------------------------------
Class A* 6/5/00 -8.11% -19.71% $ 4,018
- -------------------------------------------------------------------------------
Class B** 6/5/00 -8.70% -19.67% $ 4,027
- -------------------------------------------------------------------------------
Class C** 6/5/00 -3.79% -19.33% $ 4,098
- -------------------------------------------------------------------------------
Advisor 6/5/00 -3.37% -18.93% $ 4,184
- -------------------------------------------------------------------------------
Merrill Lynch 100
Technology Index 1 12.08% -19.80% $ 3,988
- -------------------------------------------------------------------------------
Lipper Science and
Technology Funds Average 1 5.12% -20.98% $ 3,927
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Analog Devices, Inc. ............................................ 3.78%
Agilent Technologies, Inc. ...................................... 3.54%
Avaya, Inc. ..................................................... 3.49%
EMC Corp. ....................................................... 3.45%
Broadcom Corp. .................................................. 3.35%
Sapient Corp. ................................................... 3.19%
Corning, Inc. ................................................... 3.18%
Lucent Technologies, Inc. ....................................... 2.90%
Harris Corp. .................................................... 2.71%
RSA Security, Inc. .............................................. 2.66%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
38
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
TECHNOLOGY LIPPER
FUND SCIENCE AND
(INSTITUTIONAL MERRILL LYNCH 100 TECHNOLOGY FUNDS
SHARES) TECHNOLOGY INDEX AVERAGE
------- ---------------- -------
6/5/00 $10000 $10000 $10000
10185 11377 11583
7/00 9895 10948 11300
7413 6649 7414
4925 4655 5132
5743 5372 5722
7/01 5233 4886 5245
3709 3176 3689
4951 4485 4855
4542 4351 4521
3058 3018 3328
7/02 2801 2615 2976
2114 2069 2512
2871 2622 2902
2887 2617 2873
4073 3404 3531
7/03 4401 3559 3719
4628 3821 3878
5405 4426 4352
5375 4491 4406
5026 4503 4397
7/04 4269 3988 3927
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Merrill Lynch 100 Technology
Index which 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 Depository Receipts, and the Lipper Science and
Technology Funds Average, which is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc., which
fell 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 and 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.
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, 2004.
39
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL EQUITY FUND
For the 12-month period ended July 31, 2004, the Fifth Third International
Equity Fund (Institutional Shares) returned 21.56%, compared to its benchmark,
the MSCI EAFE (R) Index 1, which advanced 25.50%.
International stock market performance during the period had two distinct
phases. From August 2003 until early 2004, the markets moved steadily higher.
From a mid-February peak, however, global equities traded in somewhat of a
seesaw pattern, experiencing a sharp sell-off in May and then a broad trading
range into July. In total, the Index was boosted by double-digit gains from each
of its markets, save Finland.
The Fund was somewhat cyclically positioned through overweight stakes, relative
to the benchmark, in Japan, Germany and Asia. Additionally, at the sector level,
we remained neutral in information technology, with a slight overweight in
capital goods versus consumer staples, a strategy that diminished returns during
the May correction. Yet our work shows that cyclicals tend to do well in the
quarter following a U.S. Federal Reserve rate hike and staples haven't looked
particularly cheap.
As global economic growth cooled from its torrid 2003 pace of greater than 4%,
U.S. inflation reached 3% on a year-over-year basis. China and Asia slowed but
didn't collapse and job growth in the U.S. and Japan was fairly solid. Japan
continued to show signs of broadening, self-sustaining growth and even
long-suffering German employment figures and domestic capital goods orders
improved.
Europe continued to be the global growth laggard, although data was marginally
better by the period's close. Furthermore, comments from the European Central
Bank encouraged us that there is a chance of a renewed push for reform, which
could spark equities.
We ended the period fully invested, but nervous, as markets bounced around at
the bottom of the trading range. We'll continue to react to global data in a
measured way, although we believe many international markets continue to benefit
from strong currencies, decent economic growth and attractive values.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
INTERNATIONAL INVESTING INVOLVES INCREASED RISK AND VOLATILITY.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
--------- ------ ------ --------- -------
Institutional 8/18/94 21.56% -0.97% 3.98% $14,751
- -------------------------------------------------------------------------------
Class A* 8/18/94 15.07% -2.14% 3.33% $13,858
- -------------------------------------------------------------------------------
Class B** 8/18/94 15.43% -2.13% 2.99% $13,407
- -------------------------------------------------------------------------------
Class C** 8/18/94 20.32% -1.94% 3.09% $13,533
- -------------------------------------------------------------------------------
Advisor 8/18/94 20.82% -1.37% 3.61% $14,235
- -------------------------------------------------------------------------------
MSCI EAFE (R) Index 1 25.50% -0.84% 3.72% $14,371
- -------------------------------------------------------------------------------
Lipper International
Large-Cap Core Funds
Average 1 21.22% -0.82% 3.20% $14,023
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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. ADVISOR SHARES WERE INITIALLY OFFERED ON
NOVEMBER 10, 2003. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR THE PERIODS
PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR 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.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
BP Plc .......................................................... 1.95%
HSBC Holdings Plc ............................................... 1.88%
Toyota Motor Corp. .............................................. 1.66%
Vodafone Group Plc ........................... .................. 1.41%
Total SA. ....................................................... 1.39%
Novartis AG. .................................................... 1.36%
GlaxoSmithKline Plc ............................................. 1.36%
Telefonica SA.................................................... 1.30%
Royal Dutch Petroleum Co. ....................................... 1.28%
Roche Holdings AG................................................ 0.90%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
40
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL EQUITY FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
INTERNATIONAL INTERNATIONAL
EQUITY FUND LARGE-CAP
(INSTITUTIONAL MSCI EAFE(R) CORE FUNDS
SHARES) INDEX AVERAGE
------- ----- -------
8/18/94 $10000 $10000 $10000
9650 9687 9723
9390 9595 9408
9180 9781 9245
9300 9860 9690
7/95 9830 10477 10227
9910 10279 10230
10450 10703 10444
10910 11021 10912
11240 11203 11317
7/96 10740 10879 10890
11100 11198 11278
11342 11384 11787
11342 11214 11923
12819 12678 13357
7/97 13079 12886 13724
12873 12597 13496
12245 11618 12451
14168 13336 14267
14499 13487 14388
7/98 14817 13627 14588
12776 11579 12056
14627 13981 14150
14809 14185 14427
15111 14556 15130
7/99 15486 14991 15521
15668 15204 15708
18447 17797 19487
18011 17789 19675
17404 17094 18728
7/00 16770 16381 18032
16255 15725 17163
15820 15313 16416
14031 13222 14110
13955 13108 14065
7/01 13817 12870 13687
12533 11279 11918
12988 12066 12909
13189 12191 13051
13019 11900 12622
7/02 11842 10726 11345
10681 9557 10081
11200 10177 10725
10265 9350 9804
11916 11179 11550
7/03 12134 11451 11808
12789 12094 12293
13533 14163 14218
13770 14786 14713
14925 14851 14546
7/04 14751 14371 14023
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Morgan Stanley Capital
International (MSCI) Europe, Australasia and Far East (EAFE (R)) Index which
is generally representative of a sample of companies of the market structure
of 20 European and Pacific Basin countries, and the Lipper International
Large-Cap Core Funds Average, which is representative of the average of the
total returns reported by all of the mutual funds designated by Lipper, Inc.,
which fell into this category.
The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far
East (EAFE (R)) Index does not reflect the deduction of fees associated with a
mutual fund such as investment management and fund accounting fees. However,
the Lipper International 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.
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, 2004.
41
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Bond Fund
(Institutional Shares) returned 4.26%, trailing its benchmark, the Lehman
Brothers Aggregate Bond Index 1, which advanced 4.84%.
Weighing on returns was the Fund's limited exposure to lower quality corporate
bonds. The riskier issues outperformed through the first half of the period and
sustained gains over the balance, but we maintained a commitment to investing in
higher quality securities.
The larger interest rate picture offered a challenge as we expected to see a
rate increase from the Fed in early 2004, but it didn't act until June 30.
Having positioned the Fund with a shorter duration than the benchmark, which
made it less sensitive to rising interest rates, results from the approach were
mixed at times, but ended the period with a generally positive effect.
Moves in and out of the mortgage-backed securities market proved well-timed and
boosted returns. Early in the period, valuations in the home loan space were
very attractive in the wake of significant interest rate volatility in July
2003, and we built up an overweight position, relative to the benchmark, in the
securities. The strategy paid off due to the combination of our efforts to seek
out issues with lower prepayment risks and a decrease in volatility as loan
rates rose gradually. By the period's end, we'd taken some profits and directed
resources elsewhere. +
The Fund's overweight position in corporate bonds, a diversified collection that
carried better yields than U.S. Treasury issues, enhanced performance. By the
end of the period, as the difference between corporate and Treasury yields
narrowed too much, we liquidated a portion of the position. Some of the proceeds
funded investments in higher quality commercial mortgage backed securities, such
as those issued for office developments, which offered better yields and
slightly less risk.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
--------- ------ ------ --------- -------
Institutional 3/20/95 4.26% 6.36% 6.69% $18,339
- -------------------------------------------------------------------------------
Class A* 3/22/95 -0.97% 5.08% 5.89% $17,082
- -------------------------------------------------------------------------------
Class B** 3/20/95 -1.81% 4.97% 5.63% $16,698
- -------------------------------------------------------------------------------
Class C** 3/20/95 3.20% 5.30% 5.63% $16,697
- -------------------------------------------------------------------------------
Advisor 3/20/95 3.73% 5.84% 6.17% $17,514
- -------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 4.84% 7.25% 7.37% $19,415
- -------------------------------------------------------------------------------
Lipper Corporate
Debt Funds
A Rated Average 1 4.75% 6.36% 6.68% $18,326
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE
FIFTHTHIRD 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. 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.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Corporate Bonds 42.00%
U.S. Government Agencies 37.89%
Commercial Paper 9.81%
Short-Term Securities Held
as Collateral for Securities Lending 4.67%
Money Markets 3.20%
U.S. Treasury Obligations 1.88%
Municipal Bonds 0.55%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
42
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
LIPPER
FIFTH THIRD LEHMAN BROTHERS CORPORATE
BOND FUND GOVERNMENT/ LEHMAN BROTHERS DEBT FUNDS A
(INSTITUTIONAL CREDIT BOND AGGREGATE RATED FUNDS
SHARES) INDEX BOND INDEX AVERAGE
------- ----------- ---------- -------
3/20/95 $10000 $10000 $10000 $10000
9960 10649 10000 10000
10718 10608 10609 10669
7/95 10640 10853 10586 10617
10929 11358 10818 10882
11505 11093 11279 11407
11087 11145 11079 11093
11040 11171 11142 11117
7/96 11044 11341 11172 11135
11218 11688 11348 11311
11641 11587 11688 11687
11385 12009 11623 11569
11913 12376 12050 12005
7/97 12443 12430 12374 12407
12457 12828 12450 12448
12868 13023 12816 12823
13067 13364 13016 13012
13401 13374 13320 13333
7/98 13395 14025 13348 13332
13982 14009 13883 13817
14064 14044 13930 13806
13843 13876 13861 13663
13554 13724 13739 13457
7/99 13472 13686 13680 13396
13545 13798 13832 13481
13444 13742 13815 13422
13854 14112 14120 13735
13933 14316 14366 13844
7/00 14071 14468 14496 13973
14381 14728 14799 14233
15045 15371 15421 14782
15547 15862 15889 15253
15569 15910 15979 15320
7/01 15977 16306 16336 15690
16385 16668 16716 15928
16136 16678 16724 15924
15970 16599 16739 15867
16649 17222 17358 16360
7/02 16786 17429 17567 16486
17437 18203 18153 17066
17655 18518 18439 17328
17887 18823 18695 17592
18241 19486 19163 18160
7/03 17590 18669 18519 17480
18186 19388 19135 18097
18221 19383 19195 18173
18658 19980 19706 18660
18178 19346 19224 18152
7/04 18339 19551 19415 18326
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's has changed its standardized benchmark from the Lehman Brothers
Government/Credit Bond Index to the Lehman Brothers Aggregate Bond Index to
provide a more appropriate market comparison. The Lehman Brothers
Government/Credit Bond Index is a broad based index representative of the
total return of long-term government and corporate bonds. The Lehman Brothers
Aggregate Bond Index is representative of investment-grade fixed-rate debt
issues, including government, corporate, asset-backed, and mortgage-backed
securities, with maturities of at least one year and the Lipper Corporate Debt
Funds A Rated Average, which is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc., which
fell into this category.
The Lehman Brothers Government/Credit Bond 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 Corporate Debt Funds A Rated 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.
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, 2004.
43
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Intermediate Bond
Fund (Institutional Shares) gained 2.71%, underperforming its benchmark, the
Lehman Brothers Intermediate Government/Credit Index 1, which returned 3.59%.
The market's continued appetite for the lowest quality investment grade bonds,
rated Baa or BBB, and distaste for poor performing Treasuries set the tone for
the period. Extending a rally that started after the September 2002 meltdown in
the corporate bond market, investors chased the higher yields offered by the
lower quality issues, confident that default rates would remain low.
Against this backdrop, our bias toward higher quality securities dragged on
returns as the Fund was underweight, relative to the benchmark, in Baa/BBB
bonds. More specifically, we were skeptical of the total return prospects from
bonds issued by automakers, which accounted for much of the Baa/BBB performance.
The Fund's returns were also diminished by a shorter average duration than that
of the benchmark. A defensive strategy adopted in anticipation of a sharp rise
in the yield curve, the short position weighed when the economic recovery played
out slower than we expected and it took longer than we anticipated for the
Federal Reserve to begin its rate hike campaign.
The Fund's stake in commercial mortgage backed securities provided a lift.
Issued by investment banks and consisting of mortgages on commercial properties
such as shopping malls, offices and apartment complexes, these bonds offer
higher yields than U.S. Treasury securities, yet generally carry AAA ratings. +
Further enhancing returns was an underweight position in Treasuries. As the
yield curve flattened due to rising rates at the short end and a more modest
uptick at the long end, intermediate term government issues suffered. By taking
a smaller position in the poorest performing group, we were able to expand our
exposure in higher yielding issues. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 2.71% 6.01% 6.09% $ 18,062
- -------------------------------------------------------------------------------
Class A* -1.09% 4.98% 5.46% $ 17,009
- -------------------------------------------------------------------------------
Class B** -2.89% 4.66% 5.04% $ 16,349
- -------------------------------------------------------------------------------
Class C** 1.72% 4.92% 5.00% $ 16,294
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Index 1 3.59% 6.95% 6.84% $ 19,371
- -------------------------------------------------------------------------------
Lipper Intermediate
Investment Grade Debt
Funds Average 1 4.47% 6.40% 6.52% $ 18,843
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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. 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.
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDING AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Corporate Bonds 52.90%
Short-Term Securities Held as
Collateral for Securities Lending 21.70%
Freddie Mac 9.76%
U.S. Treasury Obligations 6.54%
Fannie Mae 4.86%
Federal Home Loan Bank 1.97%
Government National
Mortgage Assoc. 1.94%
Money Markets 0.33%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
44
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
INTERMEDIATE LEHMAN BROTHERS INTERMEDIATE
BOND FUND INTERMEDIATE INVESTMENT GRADE
(INSTITUTIONAL GOVERNMENT/CREDIT DEBT FUNDS
SHARES) INDEX AVERAGE
------- ----- -------
7/94 $10000 $10000 $10000
7/95 10928 10882 10943
7/96 11381 11460 11501
7/97 12423 12499 12711
7/98 13246 13344 13613
7/99 13492 13841 13816
7/00 14098 14549 14444
7/01 15812 16366 16182
7/02 16784 17548 17006
7/03 17586 18700 18010
7/04 18062 19371 18843
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Intermediate
Government/Credit Index which is comprised 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 one to ten
years. and the Lipper Intermediate Investment Grade Debt Funds Average, which
is representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Intermediate Government/Credit 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
45
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Short Term Bond
Fund (Institutional Shares) returned 1.31%, lagging its benchmark, the Merrill
Lynch 1-3 Year Government/Corporate Bond Index 1, which advanced 1.78%.
Driving performance was the Fund's average duration, which was short, relative
to the benchmark. The strategy positioned the Fund well for the rising rate
environment that unfolded through the first part of 2004 as a rate hike from the
Federal Reserve became more and more likely. Although the central bank didn't
act until June 30, expectations pushed yields higher through most of the year,
and our duration shortening tactics paid off.
A position in asset backed securities added to returns. More specifically, we
stocked up on issues tied to home equity loans, which are similar to residential
mortgages but possess less of a prepayment risk, or the potential that the
securities will be retired early. At the same time, we avoided manufacturing
housing, where poorly structured securities have contributed to a market in
turmoil. +
High quality corporate holdings also enhanced performance. For most of the
period we were attracted to bank and financial company issues, which offered
better returns than U.S. Treasury notes yet compromised little in the way of
risk, given the industry's stringent regulations. By the period's end, however,
we had lightened up on the corporate notes to take advantage of better
opportunities in the asset backed market. +
The lowest quality investment grade corporate issues-those ranked BBB or
Baa-generated market leading returns during the period, but the Fund's
underweight position detracted from relative performance. While many of the
lower grade issues are no longer attractive from a valuation perspective, we'll
continue to assess potential investments on a case-by-case basis to add
exposure. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 1.31% 4.84% 5.26% $ 16,698
- -------------------------------------------------------------------------------
Class A* -2.38% 3.93% 4.74% $ 15,887
- -------------------------------------------------------------------------------
Class C** 0.28% 3.79% 4.21% $ 15,110
- -------------------------------------------------------------------------------
Merrill Lynch 1-3 Year
Government/Corporate
Bond Index 1 1.78% 5.50% 5.89% $ 17,718
- -------------------------------------------------------------------------------
Lipper Short Investment
Grade Debt Funds Average 1 1.74% 4.77% 5.22% $ 16,644
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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. CLASS C SHARES WERE INITIALLY OFFERED ON
AUGUST 1, 2003.THE PERFORMANCE FIGURES FOR CLASS C SHARES FOR THE PERIODS PRIOR
TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL 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.
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31,2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Corporate Bonds 36.37%
U.S. Government Agencies 27.58%
Short-term Secuities Held as
Collateral for Securities Lending 26.84%
U.S. Treasury Obligations 7.54%
Money Markets 1.05%
Foreign Bonds 0.45%
Municipal Bonds 0.17%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
46
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER SHORT
SHORT TERM MERRILL LYNCH INVESTMENT
BOND FUND 1-3 YEAR GRADE DEBT
(INSTITUTIONAL GOVERNMENT/CORPORATE BOND FUNDS
SHARES) INDEX AVERAGE
------- ----- -------
7/94 $10000 $10000 $10000
7/95 10692 10734 10651
7/96 11196 11325 11214
7/97 11999 12162 12049
7/98 12682 12915 12724
7/99 13185 13556 13194
7/00 13824 14281 13851
7/01 15212 15711 15183
7/02 15967 16753 15839
7/03 16483 17407 16356
7/04 16698 17718 16644
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Merrill Lynch 1-3 Year
Government/Corporate Bond Index is comprised of U.S. Treasury issues and
publicly issued debt of U.S. Government agencies with maturities of one to
three years; which and the Lipper Short Investment Grade Debt Funds Average,
which is representative of the average of the total returns reported by all of
the mutual funds designated by Lipper, Inc., which fell into this category.
The Merrill Lynch 1-3 Year Government/Corporate 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
47
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third U.S. Government
Bond Fund (Institutional Shares) returned 2.42%, underperforming its benchmark,
the Lehman Brothers Intermediate Government Bond Index 1, which advanced 2.74%.
Considering the improvement in economic conditions through 2003, we anticipated
that the Federal Reserve would raise its key lending rate within the second half
of the period. To cushion the effects of a rising rate environment, we shortened
the Fund's duration, relative to the benchmark. As the Fed initiated a rate hike
campaign on June 30, our shortening tactics helped returns.
As expectations for a Fed move heightened, we also adopted a barbell strategy in
Treasuries and agency issues, with larger investments at the short and long ends
of the duration spectrum and minimal exposure to intermediate maturation dates.
Such a strategy helps mitigate the impact of a flattening yield curve, which
occurred as yields on short-term notes climbed more quickly than those on
long-term notes, yet involves a modest forfeiture of yield, which proved a drag
on performance.
Also hindering returns was an overweight position, relative to the benchmark, in
highly liquid securities, which generally feature lower yields than bonds with
less liquidity.
At select times within the period, the Fund was overweight in mortgage-backed
securities, which helped boost returns. More specifically, we profited from the
effective timing of sales and purchases in the mortgage market, which endured
some dramatic swings as rates increased from multi-generational lows during the
summer of 2003 and retreated again in the spring of 2004 before ending the
period higher.
Within its somewhat limited scope of eligible holdings, the Fund finished the
period with a neutral weight in agency bonds, an underweight position in
Treasuries and a modest overweight in mortgage-related issues.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUNDS SHARES.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 2.42% 5.67% 5.67% $ 17,359
- -------------------------------------------------------------------------------
Class A* -2.57% 4.43% 5.02% $ 16,318
- -------------------------------------------------------------------------------
Class C** 1.41% 4.69% 4.71% $ 15,842
- -------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government Bond
Index 1 2.74% 6.40% 6.50% $ 18,768
- -------------------------------------------------------------------------------
Lipper Short-
Intermediate U.S.
Government Bond
Funds Average 1 2.12% 5.39% 5.59% $ 17,249
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
FUND HOLDINGS AS OF JULY 31,2004
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
U.S. Treasury Obligations 36.02%
Fannie Mae 29.80%
Federal Home Loan Bank 17.27%
Freddie Mac 9.61%
Money Markets 4.83%
Federal Farm Credit Bank 1.30%
Government National
Mortgage Association 1.17%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
48
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER
U.S. GOVERNMENT LEHMAN BROTHERS SHORT-INTERMEDIATE
BOND FUND INTERMEDIATE U.S. GOVERNMENT
(INSTITUTIONAL GOVERNMENT BOND BOND FUNDS
SHARES) INDEX AVERAGE
------- ----- -------
7/94 $10000 $10000 $10000
7/95 10765 10838 10710
7/96 11156 11402 11219
7/97 12029 12381 12095
7/98 12771 13226 12805
7/99 13175 13761 13182
7/00 13748 14472 13793
7/01 15273 16170 15275
7/02 16426 17561 16388
7/03 16950 18268 16861
7/04 17359 18768 17249
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Intermediate
Government Bond Index which is generally representative of intermediate-term
government bonds, and the Lipper Short-Intermediate U.S. Government Bond Funds
Average, which is representative of the average of the total returns reported
by all of the mutual funds designated by Lipper, Inc., which fell 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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
49
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Municipal Bond
Fund (Institutional Shares) gained 4.84%, trailing its benchmark, the Lehman
Brothers Municipal Bond Index 1, which returned 5.79%.
From a broad perspective, the period was defined by the flattening of the
municipal bond yield curve. On the short end, expectations that the Fed would
increase its key lending rate fueled a modest rise in yields. On the long side,
the realization that the economic recovery wasn't taking hold as quickly as
originally thought sparked a rally that pushed down yields.
As the Fund was overweight, relative to the benchmark, in bonds around 5 years
or shorter, its total return suffered. As the larger trends emerged, we slightly
increased the Fund's duration, which had been designed to cushion a more
dramatic move by the Fed, although it still remained below the benchmark. +
Our emphasis on high quality issues also hampered performance as lower quality
bonds thrived. Investors proved willing to accept the lower quality
characteristics of issues such as those tied to hospitals, industrial
development projects and environmental control efforts in return for additional
yield. Higher quality debt such as general obligation bonds, essential service
revenue securities and insured bonds forfeit a measure of yield for added
security and consequently did not perform as well. +
Further diminishing gains was the Fund's assortment of pre-refunded bonds, a
high quality, lower yield type of security. Generally involving higher coupon
securities featuring an intermediate call date, bonds are pre-refunded when the
issuer floats a new, lower-yielding issue and parks the proceeds in Treasuries
until it can retire the older debt on the call date. Although pre-refunded notes
enjoy a modest price appreciation, the process effectively shrinks the duration,
which alters the bond's profile. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31,2004
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
--------- ------ ------ --------- -------
Institutional 3/20/95 4.84% 5.69% 5.72% $16,836
- -------------------------------------------------------------------------------
Class A* 4/1/95 -0.65% 4.36% 4.90% $15,625
- -------------------------------------------------------------------------------
Class B** 3/20/95 -1.24% 4.27% 4.65% $15,303
- -------------------------------------------------------------------------------
Class C** 3/20/95 3.71% 4.63% 4.66% $15,320
- -------------------------------------------------------------------------------
Advisor 3/20/95 4.22% 5.17% 5.20% $16,069
- -------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond
Index 1 5.79% 6.07% 6.37% $18,565
- -------------------------------------------------------------------------------
Lipper General
Municipal Debt
Funds Average 1 5.32% 4.89% 5.33% $16,911
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE
FIFTHTHIRD 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. 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.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
BOND QUALITY RATINGS AS OF JULY 31, 2004
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
AAA 67.22%
AA+ 15.92%
AA 7.72%
AA- 6.22%
A- 1.70%
BBB 0.86%
Note Rated 0.36%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
50
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD
MUNICIPAL LIPPER
BOND FUND LEHMAN BROTHERS GENERAL MUNICIPAL
(INSTITUTIONAL MUNICIPAL DEBT FUNDS
SHARES) BOND FUND AVERAGE
------- --------- -------
7/94 $10000 $10000 $10000
7/95 10288 10787 10650
7/96 10876 11499 11295
7/97 11947 12678 12457
7/98 12546 13438 13144
7/99 12769 13825 13297
7/00 13288 14420 13563
7/01 14603 15874 14848
7/02 15563 16939 15623
7/03 16058 17549 16010
7/04 16836 18565 16911
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Municipal Bond
Index which is generally representative of the municipal bond market, and the
Lipper General Municipal Debt Funds Average, which is representative of the
average of the total returns reported by all of the mutual funds designated by
Lipper, Inc., which fell 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.
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, 2004.
51
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Intermediate
Municipal Bond Fund (Institutional Shares) returned 3.27%, outperforming its
three year index and under performed its five year index. The Lehman Brothers
Three-Year General Obligations Index 1 gained 2.22%, and the Lehman Brothers
Five-Year General Obligations Index 1 advanced 3.54%.
As the yield curve flattened during the period, bonds in the 5-year range
struggled, which weighed on performance. The development prompted us to continue
building up the Fund's holdings at both the shorter and longer ends of the
curve, a process we started in early 2004. The net effect of the strategy is to
essentially maintain the duration while capturing more of the moves occurring
closer to the edges of the relevant spectrum.
As we kept the duration shorter than the benchmark throughout the period, the
Fund suffered when the Fed, which implemented a quarter-point hike on June 30,
failed to raise its key lending rate sooner. Further diminishing returns was an
under weighting, relative to the benchmark, in longer notes, which rallied as
the economic recovery adopted a more gradual pace than anticipated. +
Meanwhile, lower quality debt offering higher yields, such as bonds issued for
hospitals, industrial development projects and environmental control efforts,
paced the market. With an extensive focus on higher quality issues, such as
essential service revenue and general obligation bonds, the Fund was underweight
in riskier securities, which added to the underperformance.
Although we remain committed to a high quality mix of debt, we started seeking
out bonds with slightly higher yields that wouldn't compromise the Fund's risk
profile. For example, structured debt such as put bonds, which provide the
bondholder with the right to redeem notes prior to the maturity date, tend to
have slightly higher yields that compensate for the added complexity of the
offering. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 3.27% 4.90% 5.09% $ 16,422
- -------------------------------------------------------------------------------
Class A* -0.61% 3.91% 4.48% $ 15,502
- -------------------------------------------------------------------------------
Class B** -2.41% 3.57% 4.06% $ 14,881
- -------------------------------------------------------------------------------
Class C** 2.29% 3.86% 4.03% $ 14,843
- -------------------------------------------------------------------------------
Lehman Brothers Three-Year
General Obligations Index 1 2.22% 3.69% 4.10% $ 16,025
- -------------------------------------------------------------------------------
Lehman Brothers Five-Year
General Obligations Index 1 3.54% 4.60% 4.80% $ 17,110
- -------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Municipal Bond Index 1 4.47% 5.65% 5.77% $ 17,405
- -------------------------------------------------------------------------------
Lipper Intermediate Municipal
Debt Funds Average 1 4.21% 5.03% 5.25% $ 16,692
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE
FIFTHTHIRD 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. 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.
* Reflects the maximum sales charge of 3.50%.
**Reflects the applicable maximum contngency deferred sales charge.
BOND QUALITY RATINGS AS OF JULY 31, 2004
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
AAA 65.24%
AA+ 12.57%
AA 8.34%
AA- 5.04%
A+ 1.92%
A 0.72%
A- 3.97%
BBB+ 1.21%
BBB 0.82%
Note Rated 0.17%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
52
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LEHMAN
INTERMEDIATE LEHMAN BROTHER LEHMAN BROTHERS BROTHERS
MUNICIPAL BOND THREE-YEAR FIVE-YEAR QUALITY LIPPER
FUND GENERAL GENERAL INTERMEDIATE INTERMEDIATE
(INSTITUTIONAL OBLIGATIONS OBLIGATIONS MUNICIPAL BOND MUNICIPAL DEBT
SHARES) INDEX INDEX INDEX FUNDS AVERAGE
------- ----- ----- ----- -------------
7/94 $10000 $10000 $10000 $10000 $10000
7/95 10723 10644 10755 10728 10663
7/96 11189 11126 11255 11250 11228
7/97 12078 11785 12097 12175 12149
7/98 12617 12321 12682 12793 12750
7/99 12928 12782 13137 13223 13051
7/00 13462 13305 13694 13828 13483
7/01 14616 14324 14883 15052 14641
7/02 15493 15189 15922 16097 15546
7/03 15902 15678 16526 16659 15988
7/04 16422 16025 17110 17405 16692
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund has changed its standardized benchmark from the Lehman Brothers
Three- and Five-Year General Obligations Index to the Lehman Brothers Quality
Intermediate Municipal Bond Index to provide a more appropriate market
comparison for the Fund's performance. The Lehman Brothers Three-and
Five-Year General Obligations 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 Lehman Brothers Quality Intermediate Municipal Bond Index
is generally representative of intermediate term municipal bonds with a
maturity between two and twelve years. The Fund's performance is also compared
to the Lipper Intermediate Municipal Debt Funds Average, which is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Three-and Five-Year General Obligations Indices and the
Lehman Brothers Quality Intermediate Municipal Bond 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
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.
2 The ending value represents the value of a $10,000 investment in the indicated
share class for the 10-Year period ended July 31, 2004.
53
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Ohio Municipal Bond
Fund (Institutional Shares) returned 3.66%, compared to its benchmark, the
Lehman Brothers Municipal Bond Index 1, which gained 5.79%.
Generally speaking, the Fund maintained a well-diversified mix of statewide and
local issues with a modest exposure to returns subject to the Alternative
Minimum Tax. From a performance standpoint, the period featured little movement
in prices, so yield accounted for the bulk of gains. Accordingly, notes with
smaller coupons, such as housing bonds and those brought to market during the
recent period of historically low interest rates, weighed on performance.
Anticipating that the Fed would increase its key short-term lending rate early
in 2004, we kept the duration of the portfolio at about 95% of the benchmark.
Since the Fed waited to act until June 30-the final day of the first half-the
slightly lower interest-rate exposure also diminished returns.
We made up some ground in two areas that offer rewards for extra
legwork-uninsured debt with an A quality rating and structured bonds. Compared
to higher quality issues, uninsured A debt compensates for slightly higher risk
with modestly better yields. Over the past 12-18 months, we've gone from
significant underexposure in the group to a market neutral level with an
emphasis on higher education institution issues, especially those from private
universities with large endowments and solid balance sheets.
Structured debt such as put bonds, which provide the bondholder with the right
to redeem notes prior to the maturation date, and sinking fund bonds, which
allow the issuer to redeem notes prior to the maturation date, requires more
complex analysis. In turn, the notes tend to carry higher yields, which enhanced
returns.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
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.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- --------
Institutional 3.66% 4.67% 4.83% $ 16,032
- -------------------------------------------------------------------------------
Class A* -1.53% 3.41% 4.17% $ 15,045
- -------------------------------------------------------------------------------
Class B** -2.38% 3.01% 3.76% $ 14,465
- -------------------------------------------------------------------------------
Class C** 2.65% 3.69% 3.90% $ 14,667
- -------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index 1 5.79% 6.07% 6.38% $ 18,565
- -------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Index 1 4.47% 5.65% 5.77% $ 17,405
- -------------------------------------------------------------------------------
Lipper Ohio
Intermediate Municipal
Debt Funds Average 1 3.37% 4.43% 4.67% $ 15,792
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
BOND QUALITY RATINGS AS OF JULY 31, 2004
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
AAA 49.13%
AA+ 5.50%
AA 30.80%
A+ 4.80%
A 1.95%
A- 2.98%
AA- 0.82%
BBB+ 2.63%
Not Rated 1.39%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
54
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD OHIO
MUNICIPAL LEHMAN BROTHERS LIPPER OHIO
BOND FUND LEHMAN BROTHERS QUALITY INTERMEDIATE INTERMEDIATE
(INSTITUTIONAL MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL DEBT
SHARES) INDEX INDEX FUNDS AVERAGE
------- ----- ----- -------------
7/94 $10000 $10000 $10000 $10000
7/95 10702 10787 10728 10566
7/96 11165 11499 11250 11070
7/97 12001 12678 12175 11914
7/98 12527 13438 12793 12442
7/99 12761 13825 13223 12661
7/00 13147 14420 13828 13043
7/01 14234 15874 15052 14071
7/02 15068 16939 16097 14880
7/03 15467 17549 16659 15248
7/04 16032 18565 17405 15792
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund has changed its standardized benchmark from the Lehman Brothers
Municipal Bond Index to the Lehman Brothers Quality Intermediate Municipal
Bond Index to provide a more appropriate market comparison for the Fund's
performance. The Lehman Brothers Municipal Bond Index is generally
representative of the municipal bond market. The Lehman Brothers Quality
Intermediate Municipal Bond Index is generally representative of intermediate
term municipal bonds with a maturity between two and twelve years. The Fund's
performance is also compared to the Lipper Ohio Intermediate Municipal Debt
Funds Average, which is representative of the average of the total returns
reported by all of the mutual funds designated by Lipper, Inc., which fell
into this category.
The Lehman Brothers Municipal Bond Index and the Lehman Brothers Quality
Intermediate Municipal Bond Index is 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 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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
55
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND
For the 12-month period ended July 31, 2004, the Fifth Third Michigan Municipal
Bond Fund (Institutional Shares) returned 1.43%, trailing its benchmark, the
Lehman Three-Year General Obligations Index 1, which returned 2.22%.
With the bulk of the Fund invested in 3- and 5-year bonds, much of the
underperformance stemmed from a modest flattening of the yield curve, which had
been quite steep. As rates increased at the short end and eased at the long end,
the bonds in the middle suffered.
Our effort to shorten the duration of the Fund, relative to the benchmark, in
anticipation of a rising rate environment also weighed as we moved too early.
Essentially, we figured that the economy was deeper into recovery mode than it
actually was and had reasoned, in turn, that rates would have moved higher by
the period's end +.
Specific to Michigan, the economy appears to be turning the corner, but the
ever-important auto industry still has a ways to go. Although the state's credit
rating was downgraded from AAA to AA during the period, the change had little
effect on the statewide bonds, which had already been trading like AA issues.
In general, lower quality issues outperformed higher quality bonds, which
further pressured returns. Most of the Fund's higher rated holdings contributed
to the underperformance, relative to the benchmark, offset in part by returns
attributed to lower quality bonds such as those issued by hospitals and for
industrial development projects. In an effort to increase the Fund's yield,
given market conditions, we slightly increased its exposure to lower rated
issues.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
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.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2004
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------ ------ ------- -------
Institutional 1.43% 4.07% 4.23% $15,134
- -------------------------------------------------------------------------------
Class A* -3.41% 2.91% 3.57% $14,207
- -------------------------------------------------------------------------------
Class B** -4.50% 2.67% 3.18% $13,677
- -------------------------------------------------------------------------------
Class C** 0.48% 3.03% 3.18% $13,680
- -------------------------------------------------------------------------------
Lehman Brothers Three-Year
General Obligation Index 1 2.22% 3.69% 4.10% $16,025
- -------------------------------------------------------------------------------
Lehman Brothers 1-5 Year
Municipal Bond Index 1 2.49% 4.75% 4.98% $15,940
- -------------------------------------------------------------------------------
Lipper Other States Short-
Intermediate Municipal Debt
Fund Average 1 2.89% 4.26% 4.38% $15,364
- -------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
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
FIFTHTHIRD 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. 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.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
BOND QUALITY RATINGS AS OF JULY 31, 2004
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
AAA 66.49%
AA+ 9.41%
AA 13.23%
AA- 0.77%
A+ 5.18%
A 1.04%
A- 1.81%
BBB+ 1.14%
Not Rated 0.93%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
56
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
FIFTH THIRD LIPPER OTHER
MICHIGAN STATES
MUNICIPAL LEHMAN BROTHER LEHMAN BROTHERS SHORT-INTERMEDIATE
BOND FUND THREE-YEAR 1-5 YEAR MUNICIPAL
(INSTITUTIONAL GENERAL MUNICIPAL BOND DEBT FUNDS
SHARES) OBLIGATIONS INDEX INDEX AVERAGE
------- ----------------- ----- -------
7/94 $10000 $10000 $10000 $10000
7/95 10518 10644 10532 10485
7/96 10936 11126 10949 10963
7/97 11582 11785 11639 11658
7/98 12050 12321 12178 12175
7/99 12400 12782 12634 12517
7/00 12811 13305 13157 12904
7/01 13752 14324 14181 13837
7/02 14530 15189 15055 14563
7/03 14921 15678 15550 14941
7/04 15134 16025 15940 15364
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
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.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund has changed its standardized benchmark from the Lehman Brothers
Three-Year General Obligations Index to the Lehman Brothers 1 -5 Year
Municipal Bond Index to provide a more appropriate market comparison for the
Fund's performance. The Lehman Brothers Three-Year General Obligations Index
is comprised of investment grade fixed rate debt obligations issued by state
and local government entities, the Lehman Brothers 1-5 Year Municipal Bond
Index is representative of short term municipal bonds with a maturity between
one and six years. The Fund's performance is also compared to the Lipper Other
States Short- Intermediate Municipal Debt Funds Average, which is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Three-Year General Obligations 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 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.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2004.
57
This page intentionally left blank.
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (98.7%)
Aeropostale, Inc.* 126,142 $ 3,845
Affiliated Managers Group, Inc.* (g) 37,450 1,719
Akamai Technologies, Inc.* (g) 125,000 1,866
Align Technology, Inc.* 70,850 1,217
Altiris, Inc.* 93,478 2,347
American Medical Systems
Holdings, Inc.* 50,000 1,591
Andrew Corp.* 80,000 868
Applied Films Corp.* 53,900 1,005
Ariad Pharmaceuticals, Inc.* 140,000 773
Array BioPharma, Inc.* 100,000 669
Ask Jeeves, Inc.* 38,278 1,113
Asta Funding, Inc. 50,000 755
AtheroGenics, Inc.* 67,300 968
August Technology Corp.* 228,156 2,360
Avid Technology, Inc.* 37,417 1,749
Avocent Corp.* 40,000 1,198
Axcelis Technologies, Inc.* 120,000 1,120
Belden CDT, Inc.* 120,000 2,334
Benchmark Electronics, Inc.* 81,158 2,319
Candela Corp.* 100,000 941
Carrier Access Corp.* 105,000 781
Centene Corp. * (g) 47,300 1,845
Central Garden & Pet Co.* 74,000 2,100
Ceradyne, Inc.* (g) 70,950 2,723
Children's Place Retail Stores, Inc.* 106,545 2,184
Choice Hotels International, Inc. 52,430 2,758
CKE Restaurants, Inc.* (g) 170,000 2,451
Closure Medical Corp.* 27,678 519
Cognex Corp. 45,000 1,354
Coherent, Inc.* 56,750 1,493
Commercial Capital Bancorp., Inc.* 130,000 2,856
Commscope, Inc.* 70,000 1,442
Comstock Resources, Inc.* 148,917 3,133
Cooper Cos., Inc. (g) 36,000 2,140
Corporate Executive Board Co. 33,667 1,909
Covance, Inc.* 58,595 2,149
Delphi Financial Group, Class A 56,116 2,275
Denbury Resources, Inc.* 50,000 1,093
Dendrite International, Inc.* 119,867 1,787
Digene Corp.* 28,560 975
Digital Theater Systems, Inc.* 96,338 2,230
Direct General Corp. 41,700 1,240
Ditech Communications Corp.* 40,000 824
E.piphany, Inc.* 266,444 1,066
East-West Bancorp., Inc. 102,734 3,463
Embarcadero Technologies, Inc.* 226,083 1,718
Encore Medical Corp.* 210,000 1,161
Encysive Pharmaceuticals Inc.* 135,000 833
Engineered Support Systems, Inc. 72,450 4,062
Epicor Software Corp.* 221,000 2,736
EPIX Medical, Inc.* 84,095 1,518
Euronet Worldwide, Inc.* 25,000 450
F5 Networks, Inc.* (g) 90,000 2,356
FindWhat.com* (g) 56,117 915
First American Financial Corp. 64,321 1,728
First Bancorp./Puerto Rico 30,000 1,274
First Cash Financial Services, Inc.* 112,500 2,256
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
FLIR Systems, Inc.* 47,300 $ 3,011
Forward Air Corp.* 50,000 1,986
Fossil, Inc.* 67,425 1,631
FSI International, Inc.* 200,000 1,050
GEN-Probe, Inc.* 32,300 1,209
General Cable Corp.* 240,000 2,285
General Maritime Corp.* 65,000 1,928
Genesco, Inc.* 35,000 751
Given Imaging, Ltd.* (g) 60,000 2,065
Global Payments, Inc.(g) 41,123 1,877
Harmonic, Inc.* 236,872 1,542
Headwaters, Inc.* 95,000 2,635
Hibbet Sporting Goods, Inc.* 48,625 927
Hyperion Solutions Corp.* 30,000 1,231
IDEXX Laboratories, Inc.* (g) 44,884 2,262
IDX Systems Corp.* 20,000 601
Impax Laboratories, Inc.* 90,000 1,274
Infospace, Inc.* 35,000 1,311
Intermagnetics General Corp.* 51,917 1,997
Inveresk Research Group, Inc.* 59,772 2,170
J.B. Hunt Transport Services, Inc. 56,750 2,180
Jacuzzi Brands, Inc.* 300,000 2,316
Jarden Corp.* 79,017 2,856
Jefferies Group, Inc. 59,878 1,877
Joy Global, Inc.(g) 66,200 1,965
K-V Pharmaceutical Co.* (g) 44,950 783
Kyphon, Inc.* 33,650 910
Labor Ready, Inc.* (g) 208,244 2,920
LTX Corp.* 147,639 1,200
Mercury Computer Systems, Inc.* (g) 37,411 891
MGI Pharma, Inc.* (g) 74,822 2,096
Microsemi Corp.* 114,000 1,397
Navigant Consulting, Inc.* 96,578 2,023
NMS Communications Corp.* 235,000 1,401
OMI Corp. 140,000 2,037
Omicell, Inc.* 95,000 1,387
Onyx Pharmaceuticals, Inc.* 43,161 1,473
Oshkosh Truck Corp. 44,772 2,372
OSI Pharmaceuticals, Inc.* 24,939 1,499
Overseas Shipholding Group, Inc. 40,000 1,796
Parametric Technology Corp.* 580,000 2,633
Patina Oil & Gas Corp. 67,936 2,003
Pharmion Corp.* (g) 36,000 1,616
Plantronics, Inc.* 56,583 2,189
Plexus Corp.* 80,722 905
PLX Technology, Inc.* 231,900 2,059
Possis Medical, Inc.* 65,000 1,859
Progress Software Corp.* 78,533 1,620
Quiksilver, Inc.* 125,000 2,695
RC2 Corp.* 104,028 3,266
Regis Corp. 54,139 2,228
Respironics, Inc.* 41,123 2,291
Rigel Pharmaceuticals, Inc.* 65,000 887
Salix Pharmaceuticals, Ltd.* 118,591 2,528
Sapient Corp.* 240,050 1,678
Scientific Games Corp.* 44,000 784
SCS Transportation, Inc.* 104,028 2,678
Semitool, Inc.* 112,300 923
CONTINUED
59
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Semtech Corp.* 71,061 $ 1,411
Serologicals Corp.* (g) 80,850 1,585
SI International, Inc.* 65,000 1,157
Silicon Image, Inc.* 190,000 2,278
Skyworks Solutions, Inc.* 100,000 838
Southwestern Energy Co.* 62,611 2,015
Spinnaker Exploration Co.* 70,000 2,504
Steel Dynamics, Inc. 60,000 1,965
Tekelec* 156,900 3,048
Telik, Inc.* 89,761 1,774
Texas Capital Bancshares, Inc.* 100,000 1,646
Thor Industries, Inc. 50,000 1,566
Trimble Navigation Ltd.* 120,975 3,360
TTM Technologies, Inc.* 137,672 1,580
United Surgical Partners International, Inc.* 44,950 1,584
Urban Outfitters, Inc.* (g) 159,588 4,747
Valueclick, Inc.* 115,000 1,194
Varian Semiconductor Equipment
Associates, Inc.* 46,061 1,376
VCA Antech, Inc.* 66,889 2,810
Vitesse Semiconductor Corp.* 234,850 658
WCI Communities, Inc.* 110,000 2,368
West Marine, Inc.* 75,773 1,565
Western Wireless Corp., Class A* 62,417 1,647
Wintrust Financial Corp. 53,417 2,833
------------
TOTAL COMMON STOCKS 250,027
------------
U.S. TREASURY BILLS (0.4%)
1.36%, 9/23/04** (a) $ 1,000 $ 998
------------
TOTAL U.S. TREASURY BILLS 998
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (14.2%)
Pool of various securities for Fifth Third
Funds 35,821 35,821
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 35,821
------------
TOTAL INVESTMENTS (COST $249,517)+ - 113.3% 286,846
LIABILITIES IN EXCESS OF OTHER ASSETS - (13.3)% (33,719)
------------
NET ASSETS - 100.0% $ 253,127
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (94.9%)
A.G. Edwards, Inc. 87,900 $ 2,857
Advance Auto Parts, Inc.* 183,700 6,819
Alberto-Culver Co., Class B 116,400 5,427
American Capital Strategies Ltd. (g) 166,935 4,880
Andrew Corp.* (g) 614,696 6,669
Apache Corp. 125,000 5,816
Avocent Corp.* 144,800 4,335
Biomet, Inc. 210,100 9,243
Burlington Resources, Inc. 143,200 5,466
Career Education Corp.* 84,500 2,857
Caremark Rx, Inc.* 259,650 7,919
Cephalon, Inc.* (g) 130,000 6,568
Chico's FAS, Inc.* (g) 190,000 7,954
Cintas Corp. 110,100 4,620
CNET Networks, Inc.* 535,320 4,888
Corporate Executive Board Co. 116,200 6,588
Covance, Inc.* 158,000 5,797
Cytyc Corp.* 310,400 7,502
D. R. Horton, Inc. 258,300 7,137
Dollar Tree Stores, Inc.* 203,600 5,479
Education Management Corp.* 164,300 4,561
Engineered Support Systems, Inc. 98,200 5,506
Fastenal Co. (g) 124,400 7,760
Fidelity National Financial, Inc. 197,700 7,167
Fiserv, Inc.* 209,100 7,164
Fisher Scientific International, Inc.* (g) 156,600 9,114
Gentex Corp. 140,000 5,012
Gilead Sciences, Inc.* 105,000 6,787
Hughes Supply, Inc. 131,700 8,023
International Rectifier Corp.* 185,300 7,264
Intersil Corp., Class A 353,700 6,497
Invacare Corp. 114,600 4,647
Inveresk Research Group, Inc.* 226,000 8,204
Jabil Circuit, Inc.* 343,800 7,478
Laureate Education, Inc.* 174,700 6,167
Lennar Corp., Class A (g) 117,800 5,028
Manpower, Inc. 95,500 4,159
Mercury Interactive Corp.* 124,100 4,537
Michael's Stores, Inc. 122,200 6,602
Microchip Technology, Inc. 266,050 7,708
Network Appliance, Inc.* 272,200 5,256
Neurocrine Biosciences, Inc.* (g) 121,300 5,649
North Fork Bancorp. 133,300 5,205
Omnicare, Inc. 179,000 5,060
Polo Ralph Lauren 218,400 7,198
QLogic Corp.* 114,600 2,802
Radio One, Inc., class D* 325,000 4,943
Ross Stores, Inc. 170,000 3,936
Ruby Tuesday, Inc. 236,300 6,827
SanDisk Corp.* (g) 255,200 6,206
Stericycle, Inc.* 86,900 4,258
SunGard Data Systems, Inc.* 275,900 6,432
Synopsys, Inc.* 190,550 4,819
T. Rowe Price Group, Inc. 181,700 8,398
The Cheesecake Factory, Inc.* (g) 103,100 4,306
The Valspar Corp. 94,900 4,650
CONTINUED
60
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
UTStarcom, Inc.* (g) 308,650 $ 5,636
Varian Medical Systems, Inc.* 96,500 6,659
Varian, Inc.* 133,700 5,067
Western Wireless Corp., Class A* (g) 210,000 5,542
Williams-Sonoma, Inc.* (g) 177,500 5,767
XTO Energy, Inc. 254,170 7,600
Zebra Technologies Corp., Class A* 49,250 4,070
------------
TOTAL COMMON STOCKS 374,492
------------
REPURCHASE AGREEMENTS (6.6%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $26,084,
Collateralized by a U.S. Treasury
security) $ 26,081 26,081
------------
TOTAL REPURCHASE AGREEMENTS 26,081
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (15.2%)
Pool of various securities for Fifth Third
Funds 60,172 60,172
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 60,172
------------
TOTAL INVESTMENTS (COST $411,797)+ - 116.7% 460,745
LIABILITIES IN EXCESS OF OTHER ASSETS - (16.7)% (65,952)
NET ASSETS - 100.0% $ 394,793
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (99.8%)
3M Co. 302,000 $ 24,872
Agilent Technologies, Inc.* 1,385,000 32,976
American International Group, Inc. 200,000 14,130
Amgen, Inc.* 306,000 17,405
Analog Devices, Inc. 875,000 34,738
Anthem, Inc.* (g) 260,000 21,442
Applied Materials, Inc.* 1,415,000 24,013
Bank of New York Co., Inc. 390,000 11,205
Best Buy Co., Inc. 570,000 27,451
Boston Scientific Corp.* 1,220,000 46,677
Broadcom Corp., Class A* 730,000 25,813
Cintas Corp. 586,000 24,589
Cisco Systems, Inc.* 2,280,000 47,561
Clear Channel Communications, Inc. 740,000 26,418
Eaton Corp. 354,000 22,883
EMC Corp.* 2,580,000 28,303
Emerson Electric Corp. 290,000 17,603
Exxon Mobil Corp. 247,000 11,436
Flextronics International Ltd.* (g) 580,000 7,291
General Electric Corp. 850,000 28,262
Gilead Sciences, Inc.* 386,000 24,951
Goldman Sachs Group, Inc. 400,000 35,276
Harley-Davidson, Inc. 280,000 16,764
Home Depot, Inc. 1,175,000 39,621
IBM Corp. 217,000 18,894
Illinois Tool Works, Inc. 230,000 20,820
Intel Corp. 1,790,000 43,639
International Game Technology 1,004,000 32,469
L-3 Communications Holdings, Inc. 250,000 15,288
Lowe's Cos., Inc. 345,000 16,808
Manpower, Inc. 520,000 22,646
Maxim Integrated Products, Inc. (g) 640,000 30,784
Mellon Financial Corp. 905,000 24,869
Microsoft Corp. 1,460,000 41,552
Nordstrom, Inc. (g) 420,000 18,438
Northern Trust Corp. 735,000 29,496
Pulte Homes, Inc. (g) 405,000 22,125
Rockwell Automation, Inc. 598,000 22,371
Schlumberger Ltd. 175,000 11,256
Sysco Corp. 890,000 30,661
Teva Pharmaceutical Industries
Ltd., ADR 1,130,000 33,448
Texas Instruments, Inc. 1,370,000 29,222
United Technologies Corp. 144,000 13,464
Wal-Mart Stores, Inc. 385,000 20,409
Xilinx, Inc. (g) 745,000 21,925
------------
TOTAL COMMON STOCKS 1,132,264
------------
CONTINUED
61
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (1.8%)
Pool of various securities for Fifth Third
Funds $ 20,601 $ 20,601
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 20,601
------------
TOTAL INVESTMENTS (COST $1,049,002)+ - 101.6% 1,152,865
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.6)% (18,095)
------------
NET ASSETS - 100.0% $ 1,134,770
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (93.5%)
3M Co. 11,800 $ 972
A.G. Edwards, Inc. 21,150 687
ACE Ltd. 25,850 1,049
Adolph Coors Co. 3,500 241
Agilent Technologies, Inc.* 19,400 461
Alcoa, Inc. 6,900 221
Allstate Corp. 23,650 1,113
Altria Group, Inc. 24,900 1,185
American International Group, Inc. 31,500 2,225
Analog Devices, Inc. 6,000 238
Anthem, Inc.* 11,700 965
Applied Materials, Inc.* 29,850 507
Archer-Daniels-Midland Co. 14,550 225
Autoliv, Inc. 7,700 324
Automatic Data Processing, Inc. 19,600 823
Ball Corp. 3,100 224
Bank of America Corp. 29,497 2,508
Bausch & Lomb, Inc. 17,900 1,102
Beckman Coulter, Inc. 9,350 516
Becton, Dickinson & Co. 22,800 1,077
BellSouth Corp. 22,800 618
Black & Decker Corp. 4,700 329
Boeing Co. 12,150 617
Bristol-Myers Squibb Co. 25,850 592
ChevronTexaco Corp. 18,200 1,740
CIGNA Corp. 10,100 626
Cisco Systems, Inc.* 90,850 1,894
Citigroup, Inc. 69,900 3,082
Coca-Cola Co. 36,900 1,618
Computer Sciences Corp.* 5,250 248
ConocoPhillips 13,100 1,032
Constellation Energy Group, Inc. 18,800 725
Deere & Co. 6,300 396
Dell, Inc.* 13,400 475
Doral Financial Corp. 6,750 265
Dow Chemical Co. 15,100 602
E*TRADE Financial Corp.* 14,750 163
Eaton Corp. 15,600 1,008
Emerson Electric Corp. 11,450 695
Exxon Mobil Corp. 83,950 3,886
Federated Department Stores, Inc. 24,400 1,169
FedEx Corp. (g) 6,850 561
Gap, Inc. (g) 40,750 925
General Dynamics Corp. 3,000 296
General Electric Corp. (a) 56,150 1,867
Gillette Co. 10,800 421
H.J. Heinz Co. 12,700 469
Harris Corp. 6,100 290
Hasbro, Inc. 26,450 481
Hewlett-Packard Co. 65,650 1,323
IBM Corp. 25,650 2,233
IMS Health, Inc. 41,900 1,016
Ingersoll-Rand Co., Class A 16,400 1,127
Intel Corp. 97,750 2,384
J.P. Morgan Chase & Co. 43,802 1,635
Jabil Circuit, Inc.* 14,750 321
CONTINUED
62
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Jefferson-Pilot Corp. 5,700 $ 275
Johnson & Johnson 24,700 1,366
Kellogg Co. 11,300 470
Kimberly-Clark Corp. 16,650 1,067
Lincoln National Corp. 25,400 1,110
LSI Logic Corp.* 20,900 106
Masco Corp. 35,050 1,060
May Department Stores Co. 43,300 1,149
MBNA Corp. 44,400 1,096
McDonald's Corp. 39,300 1,080
McGraw-Hill Cos., Inc. 14,750 1,107
Medco Health Solutions, Inc.* 30,700 930
Mellon Financial Corp. 10,650 293
Merck & Co., Inc. 27,550 1,249
Mercury General Corp. 5,100 240
Microsoft Corp. (a) 138,500 3,941
Monsanto Co. 7,250 263
Morgan Stanley 13,200 651
Motorola, Inc. 69,150 1,101
National City Corp. 7,400 270
NCR Corp.* 9,100 423
Nextel Communications, Inc., Class A* (g) 40,450 921
Nordstrom, Inc. 26,500 1,163
Northeast Utilities 22,950 429
Northern Trust Corp. 10,200 409
Occidental Petroleum Corp. 21,650 1,067
PACCAR, Inc. 4,850 291
PepsiCo, Inc. 21,900 1,095
Pfizer, Inc. 90,850 2,905
Phelps Dodge Corp. 2,550 199
Pitney Bowes, Inc. 18,850 795
PPG Industries, Inc. 18,300 1,079
Procter & Gamble Co. 13,700 714
Progressive Corp. 13,900 1,065
R.J. Reynolds Tobacco Holdings, Inc. (g) 14,000 1,007
Respironics, Inc.* 8,600 479
Rohm & Haas Co. 10,800 423
Sanmina-SCI Corp.* 19,150 141
SBC Communications, Inc. 19,300 489
Schlumberger Ltd. 16,850 1,084
Scientific-Atlanta, Inc. 7,900 243
Sempra Energy 30,850 1,103
State Street Corp. 21,650 927
SUPERVALU, Inc. 8,250 236
Tektronix, Inc. 11,300 344
Texas Instruments, Inc. 42,300 902
The Dun & Bradstreet Corp* 5,800 326
The Walt Disney Co. 49,850 1,151
Time Warner, Inc.* 87,200 1,452
TXU Corp. 21,300 845
Tyco International Ltd. (g) 42,100 1,305
Tyson Foods, Inc., Class A 18,250 348
United Parcel Service, Inc. 6,500 468
United Technologies Corp. 12,650 1,183
UnitedHealth Group, Inc. (g) 16,650 1,047
Verizon Communications, Inc. 14,700 567
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Vulcan Materials Co. 7,000 $ 333
Wachovia Corp. (g) 28,750 1,274
Wal-Mart Stores, Inc. (a) 22,850 1,212
Wells Fargo & Co. 29,250 1,679
Wendy's International, Inc. 11,450 410
Weyerhaeuser Co. 18,100 1,122
Wyeth 16,000 566
Xerox Corp.* (g) 46,950 651
YUM! Brands, Inc. 18,450 708
------------
TOTAL COMMON STOCKS 109,196
------------
REPURCHASE AGREEMENTS (6.5%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $7,571,
Collateralized by various U.S. Treasury
securities) $ 7,570 7,570
------------
TOTAL REPURCHASE AGREEMENTS 7,570
------------
MONEY MARKETS (0.0%)
Dreyfus Cash Management Money
Market Fund 1 --#
------------
TOTAL MONEY MARKETS 0
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (5.2%)
Pool of various securities for Fifth Third
Funds $ 6,081 6,081
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 6,081
------------
TOTAL INVESTMENTS (COST $113,783)+ - 105.2% 122,847
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.2)% (6,111)
------------
NET ASSETS - 100.0% $ 116,736
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
63
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (99.1%)
3M Co. 40,471 $ 3,334
Abbott Laboratories 80,862 3,182
ACE Ltd. 14,447 586
ADC Telecommunications, Inc.* 41,985 101
Adobe Systems, Inc. 12,286 518
Adolph Coors Co. 1,874 129
Advanced Micro Devices, Inc.* 18,124 226
AES Corp.* 32,401 313
Aetna, Inc. 7,900 678
Affiliated Computer Services, Inc., Class A* (g) 7,000 363
AFLAC, Inc. 26,472 1,049
Agilent Technologies, Inc.* 24,621 587
Air Products and Chemicals, Inc. 11,707 606
Alberto-Culver Co., Class B 4,675 218
Albertson's, Inc. (g) 18,998 463
Alcoa, Inc. 44,982 1,441
Allegheny Energy, Inc.* (g) 6,596 98
Allegheny Technologies, Inc. 4,147 83
Allergan, Inc. 6,806 515
Allied Waste Industries, Inc.* 16,671 154
Allstate Corp. 36,335 1,712
Alltel Corp. 16,151 840
Altera Corp.* 19,598 408
Altria Group, Inc. 105,803 5,036
AMBAC Financial Group, Inc. 5,516 392
Amerada Hess Corp. 4,614 385
Ameren Corp. (g) 9,439 422
American Electric Power Co. (g) 20,397 635
American Express Co. 66,485 3,341
American International Group, Inc. 134,812 9,525
American Power Conversion Corp. 10,313 156
American Standard Companies, Inc.* 11,241 426
AmerisourceBergen Corp. 5,799 313
Amgen, Inc.* 66,722 3,796
AmSouth Bancorp. 18,099 444
Anadarko Petroleum Corp. 12,959 775
Analog Devices, Inc. 19,331 767
Andrew Corp.* 8,290 90
Anheuser-Busch Co., Inc. 42,120 2,186
Anthem, Inc.* 7,154 590
Aon Corp. 16,221 429
Apache Corp. 16,728 778
Apartment Investment & Management Co. 4,823 154
Apollo Group, Inc., Class A* 9,067 758
Apple Computer, Inc.* 19,091 617
Applied Biosystems Group 10,771 223
Applied Materials, Inc.* 86,894 1,475
Applied Micro Circuits Corp.* 16,164 58
Archer-Daniels-Midland Co. 33,527 517
Ashland, Inc. 3,638 190
AT&T Corp. 41,059 620
AT&T Wireless Services, Inc.* 140,859 2,034
Autodesk, Inc. 5,830 234
Automatic Data Processing, Inc. 30,516 1,281
AutoNation, Inc.* 14,333 231
AutoZone, Inc.* (g) 4,532 350
Avaya, Inc.* 22,076 323
Avery Dennison Corp. 5,690 345
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Avon Products, Inc. 24,252 $ 1,043
Baker Hughes, Inc. 17,353 699
Ball Corp. 2,950 212
Bank of America Corp. 105,614 8,977
Bank of New York Co., Inc. 39,973 1,148
Bausch & Lomb, Inc. 2,710 167
Baxter International, Inc. 31,504 947
BB&T Corp. 28,297 1,096
Bear, Stearns & Co., Inc. 5,332 445
Becton, Dickinson & Co. 13,032 616
Bed Bath & Beyond, Inc.* 15,384 544
BellSouth Corp. 94,688 2,565
Bemis Co. 5,482 145
Best Buy Co., Inc. 16,774 808
Big Lots, Inc.* 6,078 74
Biogen Idec, Inc.* (g) 16,955 1,017
Biomet, Inc. 13,184 580
BJ Services Co.* 8,230 409
Black & Decker Corp. 4,096 286
BMC Software, Inc.* 11,677 183
Boeing Co. 43,584 2,212
Boise Cascade Corp. 4,525 146
Boston Scientific Corp.* 42,383 1,622
Bristol-Myers Squibb Co. 100,380 2,299
Broadcom Corp., Class A* 15,654 554
Brown-Forman Corp. 6,276 292
Brunswick Corp. 4,884 191
Burlington Northern Santa Fe Corp. 19,210 682
Burlington Resources, Inc. 20,456 781
C.R. Bard, Inc. 5,342 295
Calpine Corp.* (g) 21,507 83
Campbell Soup Co. 21,292 545
Capital One Financial Corp. 11,907 825
Cardinal Health, Inc. 22,465 1,000
Caremark Rx, Inc.* 23,100 705
Carnival Corp. 32,580 1,518
Caterpillar, Inc. (g) 17,955 1,320
Cendant Corp. 52,130 1,192
Centerpoint Energy, Inc. 15,933 185
Centex Corp. 6,418 272
CenturyTel, Inc. 7,433 230
Charles Schwab Corp. 70,144 616
Charter One Financial, Inc. 11,533 512
ChevronTexaco Corp. 55,336 5,293
Chiron Corp.* (g) 9,716 445
Chubb Corp. 9,725 669
Ciena Corp.* 29,851 84
CIGNA Corp. 7,294 452
Cincinnati Financial Corp. 9,073 362
Cinergy Corp. 9,161 350
Cintas Corp. 8,888 373
Circuit City Stores, Inc. 10,971 155
Cisco Systems, Inc.* 355,280 7,412
Citigroup, Inc. 266,296 11,742
Citizens Communications Co.* 14,826 213
Citrix System, Inc.* 8,479 149
Clear Channel Communications, Inc. 31,783 1,135
Clorox Co. 10,880 541
CONTINUED
64
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
CMS Energy Corp.* 8,403 $ 76
Coca-Cola Co. 126,361 5,542
Coca-Cola Enterprises, Inc. 23,744 484
Colgate-Palmolive Co. 27,558 1,466
Comcast Corp., Class A* 116,318 3,187
Comerica, Inc. 9,032 528
Computer Associates International, Inc. (g) 30,053 759
Computer Sciences Corp.* 9,725 460
Compuware Corp.* 19,968 99
Comverse Technology, Inc.* 9,994 170
ConAgra, Inc. 27,753 722
ConocoPhillips 35,378 2,787
Consolidated Edison, Inc. 11,637 477
Constellation Energy Group, Inc. 8,649 333
Convergys Corp.* 7,418 98
Cooper Industries Ltd. 4,753 270
Cooper Tire & Rubber Co. 3,887 91
Corning, Inc.* 69,646 861
Costco Wholesale Corp. (g) 23,653 962
Countrywide Credit Industries, Inc. 14,319 1,032
Crane Co. 3,037 84
CSX Corp. 11,085 347
Cummins Engine, Inc. 2,183 152
CVS Corp. 20,525 859
Dana Corp. 7,765 150
Danaher Corp. 15,842 802
Darden Restaurants, Inc. 8,479 181
Deere & Co. 12,635 793
Dell, Inc.* 132,360 4,695
Delphi Automotive Systems Corp. 29,092 277
Delta Air Lines, Inc.* (g) 6,118 32
Deluxe Corp. 2,659 117
Devon Energy Corp. 12,016 835
Dillards Department Stores, Inc. 4,305 98
Dollar General Corp. 17,520 338
Dominion Resources, Inc. 16,786 1,065
Dover Corp. 10,522 418
Dow Chemical Co. 48,153 1,921
Dow Jones & Co. 4,235 179
DTE Energy Co. 8,718 350
Duke Energy Corp. (g) 46,896 1,008
Dynegy, Inc.* (g) 19,522 82
E*TRADE Financial Corp.* 19,000 210
E. I. du Pont de Nemours & Co. 51,594 2,212
Eastman Chemical Co. 3,956 177
Eastman Kodak Co. 14,766 391
Eaton Corp. 7,812 505
eBay, Inc.* 33,408 2,617
Ecolab, Inc. 13,341 407
Edison International, Inc. 16,848 452
El Paso Energy Corp. 33,282 263
Electronic Arts, Inc.* 15,484 776
Electronic Data Systems Corp. 24,969 461
Eli Lilly & Co. 58,076 3,701
EMC Corp.* 125,012 1,371
Emerson Electric Corp. 21,780 1,322
Engelhard Corp. 6,483 191
Entergy Corp. 11,777 677
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
EOG Resources, Inc. 5,908 $ 375
Equifax, Inc. 7,154 173
Equity Office Properties Trust 20,634 536
Exelon Corp. 34,044 1,189
Express Scripts, Inc.* 3,965 260
Exxon Mobil Corp. 338,911 15,693
Family Dollar Stores, Inc. 8,928 249
Fannie Mae 50,265 3,567
Federated Department Stores, Inc. 9,364 449
Federated Investors, Inc. 5,590 157
FedEx Corp. (g) 15,437 1,264
Fifth Third Bancorp. (b) 29,230 1,443
First Data Corp. 45,889 2,047
First Energy Corp. 17,027 666
First Horizon National Corp. 6,496 282
Fiserv, Inc.* 10,038 344
Fluor Corp. 4,205 192
Ford Motor Co. 94,693 1,394
Forest Laboratories, Inc.* 18,961 954
Fortune Brands, Inc. 7,503 542
FPL Group, Inc. 9,516 641
Franklin Resources, Inc. 12,892 622
Freddie Mac 35,618 2,291
Freeport-McMoRan Copper & Gold,
Inc., Class B (g) 8,918 311
Gannett, Inc. 14,029 1,166
Gap, Inc. (g) 46,256 1,050
Gateway, Inc.* 19,458 88
General Dynamics Corp. 10,273 1,015
General Electric Corp. (a) 538,702 17,913
General Mills, Inc. 19,379 870
General Motors Corp. (g) 29,003 1,251
Genuine Parts Co. 9,015 340
Genzyme Corp.* 11,598 595
Georgia Pacific Corp. 13,094 440
Gilead Sciences, Inc.* 9,000 582
Gillette Co. 52,071 2,030
Golden West Financial Corp. 7,812 835
Goldman Sachs Group, Inc. 24,990 2,204
Goodrich Corp. 6,078 197
Goodyear Tire & Rubber Co.* (g) 9,067 99
Great Lakes Chemical Corp. 2,601 62
Guidant Corp. 16,142 893
H & R Block, Inc. 9,176 451
H.J. Heinz Co. 18,233 673
Halliburton Co. 22,647 719
Harley-Davidson, Inc. 15,633 936
Harrah's Entertainment, Inc. 5,760 268
Hartford Financial Services Group, Inc. (g) 15,057 980
Hasbro, Inc. 9,097 165
HCA, Inc. 25,570 988
Health Management Associates, Inc.,
Class A (g) 12,535 251
Hercules, Inc.* 5,799 68
Hershey Foods Corp. 13,550 656
Hewlett-Packard Co. 157,681 3,177
Hilton Hotels Corp. 19,688 351
Home Depot, Inc. 117,592 3,966
CONTINUED
65
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Honeywell International, Inc. 44,405 $ 1,670
Hospira, Inc.* 8,036 208
Humana, Inc.* 8,470 153
Huntington Bancshares 11,850 290
IBM Corp. 87,845 7,650
Illinois Tool Works, Inc. 15,942 1,443
IMS Health, Inc. 12,418 301
Ingersoll-Rand Co., Class A 9,093 625
Intel Corp. 335,117 8,170
International Flavors & Fragrances, Inc. 4,823 176
International Game Technology 17,955 581
International Paper Co. 24,824 1,072
Interpublic Group Cos., Inc.* (g) 21,416 274
Intuit, Inc.* 10,261 384
ITT Industries, Inc. 4,753 380
J.C. Penney Co., Inc. (g) 14,069 563
J.P. Morgan Chase & Co. (g) 182,844 6,827
Jabil Circuit, Inc.* 10,382 226
Janus Capital Group, Inc. 12,465 165
JDS Uniphase Corp.* (g) 74,678 258
Jefferson-Pilot Corp. 7,250 349
Johnson & Johnson 153,416 8,479
Johnson Controls, Inc. 9,728 549
Jones Apparel Group, Inc. 6,527 244
KB Home 2,390 153
Kellogg Co. 21,353 890
Kerr-McGee Corp. 5,253 276
KeyCorp 21,680 654
KeySpan Corp. 8,230 296
Kimberly-Clark Corp. 25,952 1,663
Kinder Morgan, Inc. 6,357 381
King Pharmaceuticals, Inc.* 12,558 142
KLA-Tencor Corp.* 10,164 419
Knight-Ridder, Inc. (g) 4,135 272
Kohl's Corp.* 17,576 804
Kroger Co.* 38,497 608
Leggett & Platt, Inc. 9,894 267
Lehman Brothers Holdings, Inc. 14,308 1,003
Lexmark International, Inc.* 6,636 587
Limited Brands, Inc. 24,060 492
Lincoln National Corp. 9,237 404
Linear Technology Corp. 16,121 630
Liz Claiborne, Inc. 5,660 205
Lockheed Martin Corp. 23,266 1,233
Loews Corp. 9,555 541
Louisiana-Pacific Corp. 5,511 131
Lowe's Cos., Inc. 40,601 1,978
LSI Logic Corp.* 19,758 101
Lucent Technologies, Inc.* (g) 221,542 676
M&T Bank Corp. 6,200 578
Manor Care, Inc. 4,663 146
Marathon Oil Corp. 17,581 662
Marriott International, Inc. 11,847 578
Marsh & McLennan Cos., Inc. 27,379 1,215
Marshall & Ilsley Corp. 11,707 450
Masco Corp. 23,429 708
Mattel, Inc. 22,180 389
Maxim Integrated Products, Inc. 16,978 817
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
May Department Stores Co. 14,935 $ 396
Maytag Corp. 4,026 83
MBIA, Inc. 7,403 400
MBNA Corp. 65,998 1,629
McCormick & Co. 7,085 253
McDonald's Corp. 65,188 1,793
McGraw-Hill Cos., Inc. 9,934 746
McKesson, Inc. 15,024 483
MeadWestvaco Corp. 10,364 309
Medco Health Solutions, Inc.* 14,018 425
MedImmune, Inc.* 12,823 295
Medtronic, Inc. 62,638 3,111
Mellon Financial Corp. 22,198 610
Merck & Co., Inc. 114,938 5,212
Mercury Interactive Corp.* 4,614 169
Meredith Corp. (g) 2,601 138
Merrill Lynch & Co., Inc. 50,152 2,494
MetLife, Inc. (g) 39,285 1,401
MGIC Investment Corp. 5,072 360
Micron Technology, Inc.* 31,474 426
Microsoft Corp. 557,965 15,880
Millipore Corp.* 2,532 133
Molex, Inc. 9,816 284
Monsanto Co. 13,746 498
Monster Worldwide, Inc.* 5,869 130
Moody's Corp. 7,648 521
Morgan Stanley 56,725 2,798
Motorola, Inc. (g) 120,942 1,927
Mylan Laboratories, Inc. 13,900 206
Nabors Industries Ltd.* 7,573 352
National City Corp. (g) 31,283 1,142
National Semiconductor Corp.* 18,370 315
Navistar International Corp.* (g) 3,522 127
NCR Corp.* 4,932 229
Network Appliance, Inc.* 17,915 346
New York Times Co. 7,773 323
Newell Rubbermaid, Inc. 14,194 307
Newmont Mining Corp. (g) 22,363 905
Nextel Communications, Inc., Class A* (g) 56,863 1,294
NICOR, Inc. 2,322 77
Nike, Inc., Class B (g) 13,650 992
NiSource, Inc. 13,617 282
Noble Corp.* 6,906 267
Nordstrom, Inc. 7,085 311
Norfolk Southern Corp. 20,216 540
North Fork Bancorp. 7,861 307
Northern Trust Corp. 11,428 459
Northrop Grumman Corp. 19,386 1,020
Novell, Inc.* 19,610 134
Novellus Systems, Inc.* 7,882 213
Nucor Corp. 4,026 336
NVIDIA Corp.* 8,400 129
Occidental Petroleum Corp. 20,067 989
Office Depot, Inc.* 16,181 265
Omnicom Group, Inc. 9,864 710
Oracle Corp.* (g) 270,254 2,840
PACCAR, Inc. 9,089 545
Pactiv Corp.* 8,130 192
CONTINUED
66
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Pall Corp. 6,526 $ 151
Parametric Technology Corp.* 13,872 63
Parker Hannifin Corp. 6,156 353
Paychex, Inc. 19,554 601
People's Energy Corp. 1,904 74
PeopleSoft, Inc.* 18,961 342
Pepsi Bottling Group, Inc. 13,469 375
PepsiCo, Inc. 88,394 4,420
PerkinElmer, Inc. 6,566 115
Pfizer, Inc. 394,153 12,596
PG&E Corp.* (g) 21,662 618
Phelps Dodge Corp. 4,826 376
Pinnacle West Capital Corp. 4,723 191
Pitney Bowes, Inc. 12,056 509
Plum Creek Timber Co., Inc. 9,516 299
PMC-Sierra, Inc.* (g) 8,988 107
PNC Financial Services Group 14,317 724
Power-One, Inc.* 4,135 36
PPG Industries, Inc. 8,888 524
PPL Corp. 9,137 424
Praxair, Inc. 16,778 662
Principal Financial Group 16,548 562
Procter & Gamble Co. 133,546 6,964
Progress Energy, Inc. (g) 12,700 535
Progressive Corp. 11,219 860
Providian Financial Corp.* 15,105 209
Prudential Financial, Inc. 27,946 1,301
Public Service Enterprise Group, Inc. (g) 12,207 476
Pulte Homes, Inc. 6,518 356
QLogic Corp.* 4,923 120
QUALCOMM, Inc. 41,589 2,873
Quest Diagnostics, Inc. 5,320 437
Qwest Communications International, Inc.* 91,785 357
R.J. Reynolds Tobacco Holdings, Inc. (g) 4,344 313
R.R. Donnelley & Sons Co. 11,030 350
RadioShack Corp. 8,479 237
Raytheon Co. 21,531 722
Reebok International Ltd. (g) 3,089 105
Regions Financial Corp. 23,938 711
Robert Half International, Inc. (g) 8,818 245
Rockwell Automation, Inc. 9,685 362
Rockwell Collins, Inc. 9,237 316
Rohm & Haas Co. 11,482 450
Rowan Cos., Inc.* 5,423 132
Ryder Systems, Inc. 3,359 144
Sabre Group Holdings, Inc. 7,209 184
SAFECO Corp. 7,124 335
Safeway, Inc.* 22,856 483
Sanmina-SCI Corp.* 26,933 198
Sara Lee Corp. 40,945 899
SBC Communications, Inc. 170,933 4,331
Schering-Plough Corp. 76,000 1,479
Schlumberger Ltd. 30,449 1,959
Scientific-Atlanta, Inc. 7,912 243
Sealed Air Corp.* 4,355 207
Sears Roebuck & Co. 11,514 422
Sempra Energy 11,718 419
Sherwin-Williams Co. 7,503 303
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Siebel Systems, Inc.* 25,766 $ 208
Sigma-Aldrich Corp. 3,577 205
SLM Corp. 23,335 885
Snap-On, Inc. 2,985 96
Solectron Corp.* 49,532 272
Southern Co. 37,821 1,107
SouthTrust Corp. 17,036 661
Southwest Airlines Co. 40,804 590
Sovereign Bancorp, Inc. (g) 15,000 327
Sprint Corp. (g) 73,464 1,372
St. Jude Medical, Inc.* 8,928 608
St. Paul Cos. 34,343 1,273
Stanley Works 4,144 176
Staples, Inc. 25,857 747
Starbucks Corp.* 20,516 963
Starwood Hotels & Resorts Worldwide, Inc. 10,552 475
State Street Corp. 17,327 742
Stryker Corp. 20,564 980
Sun Microsystems, Inc.* 170,874 675
SunGard Data Systems, Inc.* 14,896 347
Sunoco, Inc. 4,038 275
SunTrust Banks, Inc. 14,587 962
SUPERVALU, Inc. 6,945 198
Symantec Corp.* (g) 16,102 753
Symbol Technologies, Inc. 11,981 157
Synovus Financial Corp. 15,563 396
Sysco Corp. 33,356 1,149
T. Rowe Price Group, Inc. 6,457 298
Target Corp. 47,067 2,052
Teco Energy, Inc. (g) 9,725 125
Tektronix, Inc. 4,344 132
Tellabs, Inc.* (g) 21,562 192
Temple-Inland, Inc. 2,810 192
Tenet Healthcare Corp.* (g) 24,120 270
Teradyne, Inc.* 9,894 169
Texas Instruments, Inc. 89,580 1,911
Textron, Inc. 7,145 438
The Walt Disney Co. 105,865 2,444
Thermo Electron Corp.* 8,539 220
Thomas & Betts Corp. 3,020 79
Tiffany & Co. 7,603 272
Time Warner, Inc.* 235,305 3,919
TJX Companies, Inc. 26,003 610
Torchmark Corp. 5,839 305
Toys 'R' Us, Inc.* 11,145 183
Transocean, Inc.* 16,527 469
Tribune Co. 17,056 724
TXU Corp. 16,718 663
Tyco International Ltd. (g) 103,369 3,204
U.S. Bancorp. 99,206 2,808
U.S.T., Inc. 8,609 327
Union Pacific Corp. 13,332 751
Unisys Corp.* 17,288 177
United Parcel Service, Inc. 58,316 4,196
United States Steel Corp. 5,809 222
United Technologies Corp. 26,611 2,488
UnitedHealth Group, Inc. (g) 32,377 2,037
Univision Communications, Inc.* (g) 16,639 482
CONTINUED
67
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Unocal Corp. 13,341 $ 517
UNUMProvident Corp. 15,373 245
V.F. Corp. 5,620 281
Valero Energy Corp. 6,600 494
VERITAS Software Corp.* 22,089 421
Verizon Communications, Inc. 142,739 5,502
Viacom, Inc. 90,448 3,038
Visteon Corp. 6,749 69
Vulcan Materials Co. 5,272 251
W.W. Grainger, Inc. 4,753 252
Wachovia Corp. (g) 67,995 3,013
Wal-Mart Stores, Inc. 223,751 11,862
Walgreen Co. 53,005 1,929
Washington Mutual, Inc. 46,461 1,802
Waste Management, Inc. 29,827 839
Waters Corp.* (g) 6,296 276
Watson Pharmaceuticals, Inc.* 5,560 140
Wellpoint Health Networks, Inc.* 8,033 812
Wells Fargo & Co. 87,440 5,020
Wendy's International, Inc. 5,899 211
Weyerhaeuser Co. 12,124 752
Whirlpool Corp. (g) 3,638 227
Williams Cos., Inc. 26,791 326
Winn-Dixie Stores, Inc. (g) 7,394 47
Wm. Wrigley Jr. Co. 11,637 703
Worthington Industries, Inc. 4,492 92
Wyeth 68,846 2,437
Xcel Energy, Inc. 20,724 354
Xerox Corp.* (g) 41,273 572
Xilinx, Inc. 17,845 525
XL Capital Ltd., Class A 7,085 501
Yahoo, Inc.* 68,748 2,117
YUM! Brands, Inc. 15,159 582
Zimmer Holdings, Inc.* 12,500 954
Zions Bancorporation 4,684 283
------------
TOTAL COMMON STOCKS 529,760
------------
REAL ESTATE INVESTMENT TRUSTS (i) (0.2%)
Equity Residential Properties Trust 14,438 427
ProLogis 9,376 319
Simon Property Group, Inc. 10,534 543
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 1,289
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS (0.6%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $3,092,
Collateralized by various U.S. Treasury
securities) $ 3,092 3,092
------------
TOTAL REPURCHASE AGREEMENTS 3,092
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (7.4%)
Pool of various securities for Fifth Third
Funds 39,342 39,342
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 39,342
------------
TOTAL INVESTMENTS (COST $338,071)+ - 107.3% 573,482
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.3)% (38,824)
------------
NET ASSETS - 100.0% $ 534,659
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
68
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER (1.3%)
Royal Bank of Scotland, 1.25%, 8/12/04** (f) $ 1,564 $ 1,563
Wells Fargo Bank, 1.27%, 8/12/04** (f) 204 204
Wells Fargo Bank, 1.26%, 8/17/04** (f) 715 715
------------
TOTAL COMMERCIAL PAPER 2,482
------------
COMMON STOCKS (64.1%)
Abbott Laboratories 30,720 1,209
Air Products and Chemicals, Inc. 14,533 752
Alcoa, Inc. 78,402 2,511
Allstate Corp. 108,156 5,092
Alltel Corp. 30,000 1,560
American International Group, Inc. 60,257 4,257
Avery Dennison Corp. 58,603 3,550
Bank of America Corp. 68,986 5,865
Check Point Software Technologies Ltd. * (g) 85,990 1,710
Cisco Systems, Inc.* 82,856 1,728
Citigroup, Inc. 70,561 3,111
Dover Corp. 63,082 2,503
Emerson Electric Corp. 48,196 2,925
Exxon Mobil Corp. 85,478 3,958
FedEx Corp. (g) 17,903 1,466
Fiserv, Inc.* 67,995 2,330
FPL Group, Inc. 17,328 1,167
General Electric Corp. 170,784 5,679
Guidant Corp. 54,345 3,006
IBM Corp. 41,083 3,576
Intel Corp. 77,397 1,887
Johnson & Johnson 60,840 3,363
Lexmark International, Inc.* 11,826 1,047
Maxim Integrated Products, Inc. 19,972 961
McDonald's Corp. 91,623 2,519
Medco Health Solutions, Inc.* 82,327 2,495
Merck & Co., Inc. 28,155 1,277
Microsoft Corp. 190,393 5,418
Noble Corp.* 63,519 2,459
Northern Trust Corp. 52,858 2,121
Omnicom Group, Inc. 44,362 3,195
PepsiCo, Inc. 47,281 2,364
Pfizer, Inc. 113,372 3,623
Praxair, Inc. 73,994 2,919
Procter & Gamble Co. 46,601 2,430
Questar Corp. 44,185 1,811
Schlumberger Ltd. 31,300 2,013
SunGard Data Systems, Inc.* 39,966 932
Target Corp. 33,310 1,452
United Technologies Corp. 20,786 1,943
VERITAS Software Corp.* (g) 99,382 1,894
Verizon Communications, Inc. 71,000 2,737
Viacom, Inc., Class A (g) 83,266 2,835
Wal-Mart Stores, Inc. 79,327 4,206
Walgreen Co. 76,404 2,781
Wells Fargo & Co. 26,202 1,504
Wendy's International, Inc. 52,720 1,886
------------
TOTAL COMMON STOCKS 122,027
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS (21.5%)
AIG Sunamerica Global Finance,
6.90%, 3/15/32 $ 675 $ 754
Alliant Master Trust, Series 2000-1A,
Class A, 1.81%, 6/20/06 (d)(e) 2,000 2,001
AOL Time Warner, Inc., 7.70%, 5/1/32 125 139
Bear Stearns Asset Backed Securities,
Inc., Series 2004-HE3, Class 1A1, 1.62%,
5/25/31 2,742 2,743
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 796 861
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A4, 5.20%, 1/12/41 (d) 700 701
Chase Manhattan Auto Owner Trust,
1.52%, 5/15/07 2,365 2,349
Chase Mortgage Finance Corp., 5.00%,
11/25/33 2,959 2,928
Citigroup, Inc., 6.50%, 2/7/06 500 526
Cox Communications, Inc., 5.50%,
10/1/15 175 171
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2,
Class A2, 6.52%, 1/17/35 481 489
Credit-Based Asset Servicing and
Securities, Series 2004-CB4, Class A3,
4.63%, 5/25/35 600 599
Devon Energy Corp., 7.95%, 4/15/32 200 234
Equity One ABS, Inc., Series 2004-1,
Class AF4, 4.14%, 4/25/34 1,000 972
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 635 637
Ford Motor Co., 7.45%, 7/16/31 110 105
France Telecom, 9.75%, 3/1/31 200 255
General Electric Capital Corp., 6.75%,
3/15/32 175 191
General Motors, 8.38%, 7/15/33 225 235
General Motors Acceptance Corp.,
6.88%, 9/15/11 250 257
Green Tree Financial Corp., 7.60%,
6/15/25 270 289
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35 3,000 2,986
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 700 704
GS Mortgage Securities Corp. II, Series
2004-C1, Class A1, 3.66%, 10/10/28 698 685
GS Mortgage Securities Corp. II, Series
2004-GG2, Class A3, 4.60%, 8/10/38 1,000 1,005
Hydro-Quebec, 8.00%, 2/1/13 200 243
IBM Corp., 4.75%, 11/29/12 160 158
Kinder Morgan Energy Partners, 5.00%,
12/15/13 250 238
CONTINUED
69
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Lehman Brothers TRAINS, 7.76%,
11/15/31 (d)(e) $ 1,995 $ 2,318
Liberty Media Corp., 5.70%, 5/15/13 200 196
Metris Master Trust, 3.12%, 7/21/08 (d)(e) 1,000 1,000
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 700 714
Morgan Stanley Dean Witter & Co.,
5.30%, 3/1/13 200 199
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 700 687
Motorola, Inc., 6.50%, 11/15/28 (g) 205 203
Navistar Financial Corp. Owner Trust,
1.73%, 2/15/07 2,500 2,485
Navistar Financial Corp. Owner Trust,
1.58%, 4/15/08 (d) 2,000 2,001
Pemex Master Trust, 6.13%, 8/15/08 175 181
Public Services Co. of Colorado, 7.88%,
10/1/12 250 298
Residential Accredit Loans, Inc., 1.57%,
3/25/34 (d) 1,835 1,831
Residential Asset Securities Corp.,
1.69%, 3/25/34 (d) 1,000 1,000
Sprint Capital Corp., 7.63%, 1/30/11 350 393
Trans-Canada Pipeline, 5.60%,
3/31/34 195 182
Truck Retail Installment Paper Corp.,
1.72%, 5/15/13 (d)(e) 2,000 2,003
United Mexican States, 4.63%,
10/8/08 580 578
Valero Energy Corp., 7.50%, 4/15/32 200 226
Verizon Florida, Inc., 6.13%, 1/15/13 250 259
Washington Mutual, 4.24%, 6/25/34 541 545
Wisconsin Energy Corp., 5.50%,
12/1/08 210 221
------------
TOTAL CORPORATE BONDS 40,975
------------
U.S. GOVERNMENT AGENCIES (14.8%)
FANNIE MAE (10.1%)
6.50%, 6/1/16 1,866 1,974
5.50%, 1/1/18 388 399
4.50%, 5/1/19 TBA 2,750 2,709
5.00%, 6/1/18 1,805 1,820
4.00%, 2/25/21 2,000 2,034
7.50%, 6/1/27 71 76
7.50%, 12/1/27 309 331
7.50%, 12/1/27 42 46
6.63%, 11/15/30 950 1,062
7.00%, 9/1/31 399 422
5.00%, 6/1/34 TBA 1,000 976
5.50%, 6/1/34 TBA 6,000 6,021
6.00%, 2/1/34 646 664
6.00%, 2/1/34 637 654
------------
19,188
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (3.0%)
7.50%, 7/1/27 $ 25 $ 27
7.50%, 8/1/27 61 66
7.50%, 11/1/27 54 59
7.50%, 12/1/27 116 125
6.75%, 3/15/31 400 455
6.50%, 5/1/31 408 427
6.50%, 11/1/31 1,121 1,173
6.25%, 7/15/32 (g) 800 859
6.00%, 6/1/34 TBA 2,500 2,565
------------
5,756
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.7%)
5.00%, 6/1/34 TBA 1,000 981
6.50%, 8/15/31 499 523
6.50%, 4/15/32 406 425
7.00%, 7/20/32 297 315
5.50%, 6/1/34 TBA 1,000 1,007
------------
3,251
------------
TOTAL U.S. GOVERNMENT AGENCIES 28,195
------------
U.S. TREASURY OBLIGATIONS (2.9%)
U.S. TREASURY BONDS (0.4%)
5.45%, 5/15/17** 750 389
5.38%, 2/15/31 (g) 290 297
------------
686
------------
U.S. TREASURY NOTES (2.5%)
1.88%, 9/30/04 2,000 2,002
2.13%, 10/31/04 2,000 2,003
4.75%, 5/15/14 (g) 900 919
------------
4,924
------------
TOTAL U.S. TREASURY OBLIGATIONS 5,610
------------
MONEY MARKETS (3.0%)
Dreyfus Cash Management Money
Market Fund 100 --#
Federated Prime Value Obligations
Money Market Fund 5,786,296 5,786
------------
TOTAL MONEY MARKETS 5,786
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (3.2%)
Pool of various securities for Fifth Third
Funds $ 6,089 6,089
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 6,089
------------
TOTAL INVESTMENTS (COST $202,528)+ - 110.8% 211,164
LIABILITIES IN EXCESS OF OTHER ASSETS - (10.8)% (20,627)
------------
NET ASSETS - 100.0% $ 190,537
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
70
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (90.8%)
A. M. Castle & Co.* 90,000 $ 960
A. T. Cross Co., Class A* 130,000 677
Accelrys, Inc.* 180,000 1,368
ActivCard S.A.* 250,000 1,658
Agilysys, Inc. 120,000 1,788
American Building Control, Inc.* 294,800 389
Ameron International Corp. 60,000 2,100
Analysts International Corp.* 235,000 747
Anaren, Inc.* 80,000 959
Angelica Corp. 80,000 1,925
APAC Customer Services, Inc.* 400,000 736
Apogee Enterprises, Inc. 225,000 2,367
Associated Estates Realty Corp. 110,000 955
Ault, Inc.* 323,000 972
Aviall, Inc.* 150,000 3,007
Bassett Furniture Industries, Inc. 227,000 4,336
BEI Technologies, Inc. 80,000 1,921
Benihana, Inc., Class A* 120,000 1,846
BKF Capital Group 110,000 2,981
Blair Corp. 110,000 3,014
Bombay Co., Inc.* 300,000 1,773
Boykin Lodging Co.* 160,000 1,347
Brush Wellman, Inc.* 215,000 3,891
BUCA, Inc.* 230,014 1,194
Calgon Carbon Corp. 220,000 1,392
California Amplifier, Inc.* 135,000 844
Capstone Turbine Corp.* 300,000 600
Carrington Laboratories, Inc.* 130,220 513
Celadon Group, Inc.* 105,000 1,840
Century Business Services, Inc.* 381,183 1,609
Cepheid, Inc.* 100,000 889
Chronimed, Inc.* 195,835 1,537
Cobra Electronics Corp.* 315,154 2,379
Compudyne Corp.* 120,000 1,132
Comstock Resources, Inc.* 215,000 4,525
Concord Camera Corp.* 280,379 768
Covenant Transport, Inc., Class A* 125,000 2,208
Crawford & Co., Class A 5,700 29
Crawford & Co., Class B 136,800 689
Cutter & Buck, Inc. 165,801 1,796
Deb Shops, Inc. 100,000 2,292
DHB Industries, Inc.* 160,000 2,434
Digimarc Corp.* 100,000 903
Dril-Quip, Inc.* 170,000 3,204
Edelbrock Corp. 170,000 2,804
Electro Rent Corp. 100,000 972
Emerson Radio Corp.* 375,000 1,110
Enesco Group, Inc.* 200,000 1,710
Flow International Corp.* 158,300 579
Frozen Food Express Industries, Inc.* 285,000 1,927
General Cable Corp.* 60,300 574
GSI Lumonics, Inc.* 150,000 2,004
Haggar Corp. 125,000 2,406
Hardinge, Inc. 45,000 558
Harken Energy Corp.* 240,000 115
Hartmarx Corp.* 400,000 3,016
Heidrick & Struggles International, Inc.* 100,000 2,646
Hologic, Inc.* 190,000 3,785
CONTINUED
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Horizon Offshore, Inc.* 450,000 $ 356
Huffy Corp.* 275,000 275
ICO, Inc.* 175,000 382
InFocus Corp.* 240,000 2,126
Input / Output, Inc.* 300,000 2,889
Iomega Corp. 31,000 136
Ionics, Inc.* 20,000 541
Jameson Inns, Inc.* 145,700 297
K2, Inc.* 99,480 1,418
Kaneb Services LLC 30,101 894
Lazare Kaplan International, Inc.* 210,600 1,822
LESCO, Inc.* 200,000 2,560
Lydall, Inc.* 83,500 814
MAIR Holdings, Inc.* 154,685 1,435
Material Sciences Corp.* 400,000 4,820
Maxwell Technologies, Inc.* 170,800 1,590
Meade Instruments Corp.* 400,000 1,356
Meadowbrook Insurance Group* 140,000 672
MEDTOX Scientific, Inc.* 40,000 456
Mercury Air Group, Inc.* 120,000 636
Michael Baker Corp.* 250,000 3,400
Midway Games, Inc.* 20,000 229
Mobile Mini, Inc.* 105,000 2,872
Monterey Pasta Co.* 410,000 1,328
Movado Group, Inc. 100,000 1,501
MVC Capital* 40,000 384
Nanometrics, Inc.* 170,000 1,683
National Dentex Corp.* 65,000 1,868
NewMarket Corp.* 65,000 1,288
Northwest Pipe Co.* 70,000 1,243
Olympic Steel, Inc.* 140,000 3,289
On Assignment, Inc.* 310,000 1,553
Optimal Robotics Corp.* 195,009 1,445
Oregon Steel Mills, Inc.* 250,000 3,875
Orthologic Corp.* 114,400 844
OSI Systems, Inc.* 135,000 2,515
Osteotech, Inc.* 350,000 1,355
Overland Storage, Inc.* 75,000 881
PAM Transportation Services, Inc.* 45,000 828
PAREXEL International Corp.* 20,000 384
Pemstar, Inc.* 501,885 1,104
Perceptron, Inc.* 80,213 553
Pharmacopeia, Inc.* 90,000 498
Planar Systems, Inc.* 65,000 898
Plato Learning, Inc.* 235,000 2,061
Powell Industries, Inc.* 130,000 2,225
Price Legacy Corp. 90,250 1,653
Prime Hospitality Corp.* 130,000 1,193
Quaker Fabric Corp. 110,000 790
R.G. Barry Corp.* 260,000 426
Register.com, Inc.* 82,219 483
Rockford Corp.* 325,100 1,414
Rocky Shoes & Boots, Inc.* 100,000 1,934
RTI International Metals, Inc.* 150,000 2,249
Safeguard Scientifics, Inc.* 525,000 997
Saucony, Inc., Class A 60,000 1,234
Sea Containers, Ltd. 180,000 3,032
SeeBeyond Technology Corp.* 130,000 393
CONTINUED
71
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Skechers U.S.A., Inc.* 200,000 $ 2,750
Smith & Wollensky Restaurant Group, Inc.* 85,000 553
SonicWALL, Inc.* 500,000 3,314
Southcoast Financial Corp.* 33,000 728
Southwestern Energy Co.* 28,000 901
Stein Mart, Inc.* 175,000 3,174
Steinway Musical Instruments, Inc.* 115,000 3,425
Stepan Co. 185,000 4,484
Stewart & Stevenson Services, Inc. 90,000 1,418
Strategic Distribution, Inc. 139,100 2,184
Stride Rite Corp. 31,500 328
Superior Uniform Group, Inc. 45,000 630
Symmetricom, Inc.* 700,154 5,741
Systemax, Inc.* 70,000 438
Terra Nitrogen Company, L.P. 55,000 779
Texas Pacific Land Trust 4,500 344
Theragenics Corp.* 350,000 1,456
Top Tankers, Inc.* 110,000 1,260
Transport Corp. of America, Inc.* 130,000 1,011
Tweeter Home Entertainment Group, Inc.* 140,000 661
U. S. Concrete, Inc.* 70,000 440
Universal Electronics, Inc.* 135,000 2,338
Veritas DGC, Inc.* 100,000 2,463
Vesta Insurance Group, Inc. 170,000 879
Vignette Corp.* 425,000 608
Volt Information Sciences, Inc.* 15,382 461
Wet Seal, Inc.* 140,000 714
Willbros Group, Inc.* 150,000 2,207
Wolverine Tube, Inc.* 100,000 1,270
Zomax, Inc.* 380,300 1,129
------------
TOTAL COMMON STOCKS 228,165
------------
INVESTMENT COMPANIES (1.2%)
Brantley Capital Corp. 60,000 661
Equus II, Inc. 130,000 975
Malaysia Fund, Inc.* 25,000 124
Royce Micro-Cap Trust 95,489 1,167
------------
TOTAL INVESTMENT COMPANIES 2,927
------------
REPURCHASE AGREEMENTS (6.7%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $16,838,
Collateralized by various U.S. Treasury
securities) $ 16,836 16,836
------------
TOTAL REPURCHASE AGREEMENTS 16,836
------------
TOTAL INVESTMENTS (COST $184,439)+ - 98.7% 247,928
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.3% 3,347
NET ASSETS - 100.0% $ 251,275
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (83.0%)
Abercrombie & Fitch Co. 71,000 $ 2,619
Agilysys, Inc. 163,400 2,434
Agrium, Inc. 159,300 2,301
Allegheny Energy, Inc.* 221,000 3,279
American Italian Pasta Co. 37,200 1,094
Ametek, Inc. 13,200 407
Andrx Corp.* 99,300 2,576
Anixter International, Inc. 43,700 1,463
Ann Taylor Stores Corp.* 73,200 1,965
Bema Gold Corp.* 169,000 394
Cal Dive International, Inc.* 55,700 1,727
Cambior, Inc.* 122,000 344
Consol Energy, Inc. 15,000 538
Constellation Brands, Inc.* 25,000 947
Covance, Inc.* 21,400 785
Cypress Semiconductor Corp.* 166,000 1,882
Dot Hill Systems Corp.* 54,400 452
Eldorado Gold Corp.* 114,000 290
Endurance Specialty Holdings, Ltd. 69,100 2,284
Energy Partners, Ltd.* 73,350 1,147
First Health Group Corp.* 145,200 2,036
Flagstar Bancorp, Inc. 21,000 413
Golden Star Resources, Ltd.* 88,000 354
Headwaters, Inc.* 97,400 2,702
Hilb, Rogal & Hamilton Co. 66,800 2,244
Horace Mann Educators Corp. 112,000 1,877
Houston Exploration Co.* 11,900 643
Humana, Inc.* 174,800 3,166
Jack in the Box, Inc.* 18,500 590
Key Energy Services, Inc.* 144,400 1,456
Lam Research Corp.* 105,500 2,516
LSI Logic Corp.* 97,000 494
Magnum Hunter Resources, Inc.* 59,500 638
McAfee, Inc.* 139,800 2,514
Mercury General Corp. 3,500 165
Methode Electronics, Inc. 97,000 1,264
Mobile Mini, Inc.* 40,200 1,099
Odyssey Healthcare, Inc.* 142,100 2,441
Orthodontic Centers of America, Inc.* 269,400 1,821
PepsiAmericas, Inc. 48,300 907
Perry Ellis International, Inc.* 59,200 1,395
Photronics, Inc.* 177,500 2,568
Piper Jaffray Cos., Inc.* 42,800 1,744
Platinum Underwriters Holdings, Ltd. 43,300 1,205
Polyone Corp.* 289,400 2,092
Priority Healthcare Corp., Class B* 92,100 2,063
Province Healthcare Co.* 28,000 407
PT Indonesian Satellite Corp. ADR 77,400 1,773
QLogic Corp.* 48,000 1,174
Robert Mondavi Corp.* 34,500 1,196
Ruby Tuesday, Inc. 34,725 1,003
Scottish Re Group, Ltd. 107,400 2,191
Service Corp. International* 343,800 2,183
Standard Register Co. 101,500 1,112
Steiner Leisure, Ltd.* 82,100 1,963
Stillwater Mining Co.* 46,600 677
CONTINUED
72
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Sunrise Assisted Living, Inc.* 34,500 $ 1,218
Swift Transportation Co., Inc.* 123,800 2,473
The Steak n Shake Co.* 14,900 255
Tidewater, Inc. 89,500 2,716
Veritas DGC, Inc.* 129,200 3,182
Wheaton River Minerals, Ltd.* 117,500 296
------------
TOTAL COMMON STOCKS 93,154
------------
INVESTMENT COMPANIES (3.3%)
iShares Russell 2000 Value 22,900 3,751
------------
TOTAL INVESTMENT COMPANIES 3,751
------------
REPURCHASE AGREEMENTS (15.6%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $17,527,
Collateralized by various U.S. Treasury
securities) $ 17,525 17,525
------------
TOTAL REPURCHASE AGREEMENTS 17,525
------------
TOTAL INVESTMENTS (COST $108,693)+ - 101.9% 114,430
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.9)% (2,139)
NET ASSETS - 100.0% $ 112,291
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
RIGHTS (0.0%)
Liberty Media International, Inc. - Class A 3,650 $ 22
------------
TOTAL RIGHTS 22
------------
COMMON STOCKS (87.6%)
3Com Corp.* 315,000 1,553
ADC Telecommunications, Inc.* 175,000 420
AK Steel Holding Corp.* 110,000 729
Alltel Corp. 40,000 2,080
American Electric Power Co. (g) 50,000 1,556
American Express Co. 60,000 3,015
American Power Conversion Corp. 70,000 1,057
Ameritrade Holding Corp.* 125,000 1,386
Anadarko Petroleum Corp. 50,000 2,990
Andrew Corp.* 165,000 1,790
Aon Corp. 85,000 2,247
Apache Corp. 69,300 3,225
Apple Computer, Inc.* 150,000 4,850
Applera Corp. - Celera Genomics Group* 215,000 2,525
Applied Materials, Inc.* 140,000 2,376
Archer-Daniels-Midland Co. 115,000 1,774
AT&T Corp. 50,000 755
AT&T Wireless Services, Inc.* 65,000 939
Becton, Dickinson & Co. 50,000 2,362
Berkshire Hathaway, Inc.* 1,000 2,894
Big Lots, Inc.* 40,000 490
BMC Software, Inc.* 60,000 941
Bob Evans Farms, Inc. 110,000 2,928
Borg Warner, Inc. 120,000 5,663
Bristol-Myers Squibb Co. 110,000 2,519
Brunswick Corp. 50,000 1,952
Cadbury Schweppes PLC ADR 60,000 1,982
Carnival Corp. 25,000 1,165
Charles Schwab Corp. 250,000 2,195
ChevronTexaco Corp. 30,000 2,870
CIGNA Corp. 75,000 4,652
Cincinnati Financial Corp. 21,000 837
Coherent, Inc.* 100,000 2,631
Comverse Technology, Inc.* (g) 125,000 2,133
ConAgra, Inc. 160,000 4,160
ConocoPhillips 60,000 4,725
CSX Corp. 50,000 1,565
Cubic Corp. 30,000 608
CVS Corp. 30,000 1,256
Diebold, Inc. 75,000 3,458
Dominion Resources, Inc. 15,000 952
Duke Energy Corp. (g) 110,000 2,364
E*TRADE Financial Corp.* (g) 200,000 2,214
EMC Corp.* 135,000 1,481
Florida East Coast Industries, Inc. 106,000 3,940
Foot Locker, Inc. 80,000 1,800
Furniture Brands International, Inc. 135,000 3,102
General Dynamics Corp. 40,000 3,953
General Electric Corp. 60,000 1,995
Global Industries, Ltd.* 125,000 631
Goodrich Corp. 30,000 970
CONTINUED
73
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Goodyear Tire & Rubber Co.* (g) 162,400 $ 1,778
Harris Corp. (g) 75,000 3,561
HCA, Inc. 50,000 1,933
Hewlett-Packard Co. 160,000 3,224
Hillenbrand Industries, Inc. 50,000 2,839
Home Depot, Inc. 100,000 3,372
Honda Motor Co., Ltd. 60,000 1,456
Honeywell International, Inc. 140,000 5,266
Horace Mann Educators Corp. 220,000 3,687
Humana, Inc.* 200,000 3,622
IBM Corp. 25,000 2,177
Industrias Bachoco, S.A. ADR 115,000 1,152
Intel Corp. 100,000 2,438
International Paper Co. 35,000 1,513
Ionics, Inc.* (g) 100,000 2,704
J.C. Penney Co., Inc. (g) 65,000 2,600
J.P. Morgan Chase & Co. 100,000 3,733
JAKKS Pacific, Inc.* (g) 100,000 2,007
JDS Uniphase Corp.* (g) 225,000 776
Kerr-McGee Corp. 60,000 3,150
KeyCorp 100,000 3,018
Kimberly-Clark Corp. 50,000 3,204
King Pharmaceuticals, Inc.* 75,000 847
Kraft Foods, Inc. (g) 90,000 2,750
Liberty Media Corp., Class A* 365,000 3,095
Liberty Media International, Inc., Class A* 18,250 569
Lubrizol Corp. 60,000 2,078
Lucent Technologies, Inc.* (g) 550,000 1,678
Marathon Oil Corp. 120,000 4,520
Masco Corp. 85,000 2,570
May Department Stores Co. 110,000 2,918
McDonald's Corp. 120,000 3,300
Merck & Co., Inc. 75,000 3,401
Methode Electronics, Inc. 110,000 1,433
Millenium Pharmaceuticals, Inc.* (g) 220,000 2,446
Motorola, Inc. 225,000 3,583
Natuzzi S.p.A. ADR 110,000 1,121
Neiman Marcus Group, Inc. 11,200 576
Neiman Marcus Group, Inc., Class A 48,000 2,618
Newell Rubbermaid, Inc. 30,000 648
Novell, Inc.* 275,000 1,881
Orthodontic Centers of America, Inc.* (g) 225,000 1,521
Pall Corp. 160,000 3,707
Payless ShoeSource, Inc.* 200,000 2,588
Pepco Holdings, Inc. (g) 125,000 2,250
Pfizer, Inc. 60,000 1,918
Pier 1 Imports, Inc. 60,000 1,076
Plum Creek Timber Co., Inc. 50,000 1,569
Prime Hospitality Corp.* 198,800 1,825
Royal Dutch Petroleum Co. 50,000 2,515
Saks, Inc. 75,000 979
Schering-Plough Corp. 185,000 3,600
Schlumberger Ltd. 70,000 4,503
Scientific-Atlanta, Inc. 45,000 1,384
Snap-On, Inc. 30,000 963
Standard Register Co. 125,000 1,370
Stanley Works 75,000 3,180
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS, CONTINUED
Stewart & Stevenson Services, Inc. 175,000 $ 2,756
Sun Microsystems, Inc.* 250,000 988
SUPERVALU, Inc. 160,000 4,570
Tecumseh Products Co., Class A 100,000 4,083
The Walt Disney Co. 135,000 3,117
Thomas & Betts Corp. (g) 70,000 1,841
Toro Co. 30,000 1,965
Transocean, Inc.* 210,000 5,963
Trizec Properties, Inc. 125,000 2,006
U.S. Bancorp. 80,000 2,264
Union Pacific Corp. 50,000 2,817
Verizon Communications, Inc. 50,000 1,927
Vishay Intertechnology, Inc.* 75,000 1,163
Waters Corp.* (g) 35,000 1,536
Whirlpool Corp. (g) 30,000 1,873
Winn-Dixie Stores, Inc. (g) 180,000 1,138
Wyeth 30,000 1,062
------------
TOTAL COMMON STOCKS 289,914
------------
CORPORATE BOND EQUIVALENTS (c) (0.1%)
Glenborough Realty, $1.94, Series A 13,073 320
------------
TOTAL CORPORATE BOND EQUIVALENTS 320
------------
INVESTMENT COMPANIES (1.7%)
iShares Russell 1000 Value Index (g) 50,000 2,965
iShares Russell 3000 Value Index 10,000 768
John Hancock Bank & Thrift
Opportunity Fund 200,000 1,888
------------
TOTAL INVESTMENT COMPANIES 5,621
------------
REPURCHASE AGREEMENTS (10.7%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $35,446,
Collateralized by various U.S. Treasury
securities) $ 35,442 35,442
------------
TOTAL REPURCHASE AGREEMENTS 35,442
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (9.8%)
Pool of various securities for Fifth Third
Funds 32,521 32,521
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 32,521
------------
TOTAL INVESTMENTS (COST $295,196) + - 109.9% 363,840
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.9)% (32,854)
------------
NET ASSETS - 100.0% $ 330,986
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
74
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (95.7%)
Abbott Laboratories 255,296 $ 10,047
Alltel Corp. (g) 266,742 13,871
American Electric Power Co. (g) 436,299 13,573
American International Group, Inc. 177,000 12,505
Anadarko Petroleum Corp. 115,620 6,913
Aon Corp. 423,978 11,210
Bank of America Corp. 66,216 5,629
Bob Evans Farms, Inc. 61,000 1,624
Bristol-Myers Squibb Co. 372,112 8,521
Brunswick Corp. 80,555 3,144
Cadbury Schweppes PLC ADR 411,550 13,598
Carnival Corp. 287,545 13,403
Caterpillar, Inc. (g) 176,742 12,989
ChevronTexaco Corp. 170,433 16,302
CIT Group, Inc. 321,299 11,168
ConAgra, Inc. 526,857 13,698
ConocoPhillips 261,055 20,563
CVS Corp. 485,543 20,329
Dow Chemical Co. 427,044 17,035
Equity Office Properties Trust 110,746 2,874
FPL Group, Inc. 172,681 11,627
Gannett, Inc. 229,055 19,044
General Dynamics Corp. 223,617 22,098
General Electric Corp. 393,000 13,067
Genuine Parts Co. 250,991 9,470
Halliburton Co. 332,110 10,544
Hartford Financial Services Group, Inc. (g) 233,927 15,229
HCA, Inc. 135,430 5,234
Hewlett-Packard Co. 413,792 8,338
Honda Motor Co., Ltd. 578,538 14,041
Honeywell International, Inc. 615,852 23,163
IBM Corp. 135,871 11,830
Intel Corp. 251,796 6,139
International Paper Co. 374,525 16,190
J.P. Morgan Chase & Co. 428,105 15,981
KeyCorp (g) 497,418 15,012
Marathon Oil Corp. 357,921 13,483
Masco Corp. 241,550 7,304
May Department Stores Co. 222,552 5,904
McDonald's Corp. 197,488 5,431
Merck & Co., Inc. 215,244 9,761
Merrill Lynch & Co., Inc. 312,239 15,525
MetLife, Inc. 492,000 17,549
NiSource, Inc. 353,424 7,316
Parker Hannifin Corp. 243,175 13,953
Royal Dutch Petroleum Co. (g) 312,427 15,715
RPM International, Inc. 186,544 2,807
Safeway, Inc.* (g) 320,000 6,762
Sherwin-Williams Co. 296,434 11,970
SunTrust Banks, Inc. 298,241 19,669
Valero Energy Corp. 52,000 3,896
Verizon Communications, Inc. 402,672 15,519
Weyerhaeuser Co. 219,493 13,609
------------
TOTAL COMMON STOCKS 632,176
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS (4.2%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $27,889,
Collateralized by a U.S. Treasury
security) $ 27,886 27,886
------------
TOTAL REPURCHASE AGREEMENTS 27,886
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (7.3%)
Pool of various securities for Fifth Third
Funds 47,987 47,987
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 47,987
------------
TOTAL INVESTMENTS (COST $607,820)+ - 107.2% 708,049
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.2)% (47,552)
------------
NET ASSETS - 100.0% $ 660,497
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
75
LIFEMODEL AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
INVESTMENTS IN AFFILIATES (h) (100.1%)
Fifth Third Disciplined Large Cap
Value Fund 2,193,268 $ 29,653
Fifth Third Intermediate Bond Fund 313,866 3,117
Fifth Third International Equity Fund 868,481 8,094
Fifth Third Mid Cap Growth Fund* 747,209 9,684
Fifth Third Multi Cap Value Fund 442,034 9,981
Fifth Third Prime Money Market Fund 3,231,660 3,232
Fifth Third Quality Growth Fund* 1,960,570 28,644
Fifth Third Small Cap Growth Fund 383,970 5,944
Fifth Third Small Cap Value Fund 304,318 6,089
------------
TOTAL INVESTMENTS IN AFFILIATES 104,438
------------
TOTAL INVESTMENTS (COST $94,255)+ - 100.1% 104,438
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (82)
------------
NET ASSETS - 100.0% $ 104,356
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LIFEMODEL MODERATELY AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
INVESTMENTS IN AFFILIATES (h) (99.9%)
Fifth Third Bond Fund 894,540 $ 8,963
Fifth Third Disciplined Large Cap
Value Fund 3,892,972 52,634
Fifth Third Intermediate Bond Fund 2,477,358 24,600
Fifth Third International Equity Fund 1,402,134 13,068
Fifth Third Mid Cap Growth Fund* 1,279,110 16,577
Fifth Third Multi Cap Value Fund 756,383 17,079
Fifth Third Prime Money Market Fund 5,601,047 5,601
Fifth Third Quality Growth Fund* 3,481,170 50,860
Fifth Third Short Term Bond Fund 1,869,349 17,890
Fifth Third Small Cap Growth Fund 551,453 8,536
Fifth Third Small Cap Value Fund 436,795 8,740
------------
TOTAL INVESTMENTS IN AFFILIATES 224,548
------------
TOTAL INVESTMENTS (COST $206,485)+ - 99.9% 224,548
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 137
------------
NET ASSETS - 100.0% $ 224,685
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
76
LIFEMODEL MODERATE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
INVESTMENTS IN AFFILIATES (h) (100.0%)
Fifth Third Bond Fund 3,252,264 $ 32,588
Fifth Third Disciplined Large Cap
Value Fund 6,000,492 81,126
Fifth Third Intermediate Bond Fund 9,806,400 97,377
Fifth Third International Equity Fund 1,928,014 17,969
Fifth Third Mid Cap Growth Fund* 2,022,148 26,207
Fifth Third Multi Cap Value Fund 1,193,685 26,953
Fifth Third Prime Money Market Fund 6,063,788 6,064
Fifth Third Quality Growth Fund* 5,342,542 78,055
Fifth Third Short Term Bond Fund 6,755,781 64,653
Fifth Third Small Cap Growth Fund 846,048 13,097
Fifth Third Small Cap Value Fund 677,038 13,548
------------
TOTAL INVESTMENTS IN AFFILIATES 457,637
------------
TOTAL INVESTMENTS (COST $449,438)+ - 100.0% 457,637
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (69)
------------
NET ASSETS - 100.0% $ 457,568
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
LIFEMODEL MODERATELY CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
INVESTMENTS IN AFFILIATES (h) (100.2%)
Fifth Third Bond Fund 947,455 $ 9,494
Fifth Third Disciplined Large Cap
Value Fund 1,189,119 16,077
Fifth Third Intermediate Bond Fund 2,756,405 27,370
Fifth Third International Equity Fund 440,001 4,101
Fifth Third Mid Cap Growth Fund* 310,656 4,026
Fifth Third Multi Cap Value Fund 183,740 4,149
Fifth Third Prime Money Market Fund 49,138 49
Fifth Third Quality Growth Fund* 1,063,096 15,532
Fifth Third Short Term Bond Fund 1,979,915 18,947
Fifth Third Small Cap Growth Fund 129,697 2,008
Fifth Third Small Cap Value Fund 102,775 2,057
------------
TOTAL INVESTMENTS IN AFFILIATES 103,810
------------
TOTAL INVESTMENTS (COST $98,278)+ - 100.2% 103,810
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (164)
------------
NET ASSETS - 100.0% $ 103,646
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
77
LIFEMODEL CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
INVESTMENTS IN AFFILIATES (h) (99.9%)
Fifth Third Bond Fund 655,849 $ 6,572
Fifth Third Disciplined Large Cap
Value Fund 351,057 4,746
Fifth Third Intermediate Bond Fund 1,973,535 19,598
Fifth Third International Equity Fund 113,813 1,061
Fifth Third Mid Cap Growth Fund* 78,551 1,018
Fifth Third Multi Cap Value Fund 47,137 1,064
Fifth Third Prime Money Market Fund 1,090,370 1,090
Fifth Third Quality Growth Fund* 306,990 4,485
Fifth Third Short Term Bond Fund 1,356,989 12,986
Fifth Third Small Cap Growth Fund 65,705 1,017
Fifth Third Small Cap Value Fund 53,376 1,068
------------
TOTAL INVESTMENTS IN AFFILIATES 54,705
------------
TOTAL INVESTMENTS (COST $53,755)+ - 99.9% 54,705
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 44
------------
NET ASSETS - 100.0% $ 54,749
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS (5.2%)
Abbott Laboratories 30,775 $ 1,211
American Capital Strategies Ltd. 11,400 333
Arthur J. Gallagher & Co. 27,950 866
Bank of America Corp. 9,950 846
Citigroup, Inc. 16,925 746
Eli Lilly & Co. 7,130 454
First Horizon National Corp. 15,600 676
General Electric Corp. 10,735 357
Pfizer, Inc. 22,425 717
Procter & Gamble Co. 11,030 575
Sysco Corp. 19,025 655
Washington Mutual, Inc. 13,395 520
Wells Fargo & Co. 15,945 916
------------
TOTAL COMMON STOCKS 8,872
------------
CORPORATE BONDS (22.6%)
Amvescap PLC, 5.38%, 2/27/13 $ 500 495
Bankers Trust New York, 7.25%,
10/15/11 1,000 1,127
Bear, Stearns Co., Inc., 4.65%, 7/2/18 1,000 891
Bear, Stearns Co., Inc., Series
2003-AC7, Class A2, 5.25%, 1/25/34 1,613 1,646
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 500 488
Comcast Cable, 7.13%, 6/15/13 500 552
Core Invest Grade Trust, 4.73%,
11/30/07 500 513
Countrywide Home Loans, 4.59%,
10/25/33 1,798 1,711
Cullen/Frost Cap Trust I, 2.86%, 3/1/34 (d) 1,000 1,018
CVS Corp., 7.77%, 1/10/12 909 1,004
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%,
1/25/34 1,000 976
Developers Diversified Realty, 3.88%,
1/30/09 1,000 966
First Tennessee Cap II, 6.30%,
4/15/34 1,500 1,415
Ford Motor Credit Co., 7.00%,
10/1/13 1,500 1,528
General Motors Acceptance Corp.,
6.88%, 9/15/11 500 513
Goldman Sachs Group, Inc., 4.75%,
7/15/13 1,000 951
Goldman Sachs Group, Inc., 5.25%,
10/15/13 1,000 984
HBOS PLC, 5.38%, 11/1/49 (d)(e) 2,000 1,952
Hutchison Whampoa International, Ltd.,
6.50%, 2/13/13 (e) 1,000 1,010
HVB Funding Trust I, 8.74%, 6/30/31 1,000 1,165
International Lease Finance Corp.,
4.38%, 11/1/09 1,000 991
Korea Development Bank, 3.88%,
3/2/09 1,000 969
Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,601
CONTINUED
78
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Lehman Brothers TRAINS, 6.50%,
8/15/08(d)(e) $ 504 $ 534
Marsh & McLennan Cos., Inc., 5.88%,
8/1/33 500 472
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-A1, Class 2A, 4.53%,
12/25/32 473 476
Motorola, Inc., 6.50%, 11/15/28 500 496
Pacific Gas & Electric, 4.20%, 3/1/11 1,000 965
Public Service Oklahoma, 4.85%,
9/15/10 500 502
Radian Group, Inc., 5.63%, 2/15/13 500 510
RBS Cap Trust B, 6.80% 3/31/08 500,000 503
SLM Corp., 3.41%, 4/1/09 (d) 1,000 988
SLM Corp., 4.00%, 11/21/13 (d) 1,000 995
Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,757
TCI Communications, Inc., 7.88%,
8/1/13 1,100 1,265
Union Planters Corp., 4.38%, 12/1/10 500 489
Verizon Virginia, Inc., 4.63%, 3/15/13 1,000 947
Washington Mutual Bank, 4.82%,
10/25/32 231 233
Washington Mutual Bank, Series
2003-AR10, Class A4, 4.08%, 10/25/33 1,500 1,496
Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,656
------------
TOTAL CORPORATE BONDS 38,750
------------
CORPORATE BOND EQUIVALENTS (c) (46.4%)
AAG Holding Co., Inc., $1.17 20,000 495
Abbey National PLC, $1.84 24,900 654
Abbey National PLC, $1.84 70,600 1,855
ABN AMRO Cap Fund Trust V,
$1.48 60,000 1,391
AMBAC Financial Group, Inc., $1.49 54,100 1,267
AMBAC Financial Group, Inc., $1.75 62,895 1,654
BAC Capital Trust I, $1.75 64,500 1,669
BAC Capital Trust II, $2.13 31,000 816
BAC Capital Trust VI, $1.75 48,600 1,272
Bank One Capital I, $2.00 19,000 487
Bank One Capital V, $2.00 76,300 2,037
Bear Stearns Capital Trust III, $1.95 58,900 1,552
Citigoup Capital VII, $1.78 124,925 3,272
Citigroup Capital VI, $1.72 25,000 630
Cleveland Electric Financial Trust I, $2.25 10,000 271
ConAgra Capital, $1.25 54,900 1,383
Consolidated Edison, $1.81 50,700 1,353
Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,445
Corp-Backed Trust Certs (CBTCS), $1.56 33,500 825
Corp-Backed Trust Certs (CBTCS), $1.70 40,000 1,060
Corp-Backed Trust Certs (CBTCS), $1.80 15,800 405
Corp-Backed Trust Certs (CBTCS), $1.97 2,200 56
Corp-Backed Trust Certs (CBTCS), $2.06 7,800 204
Corp-Backed Trust Certs (CBTCS), $2.20 1,800 47
Corts Countrywide Capital II, $2.00 10,000 262
Corts Trust For Disney, $1.72 40,000 1,036
Corts Trust II Safeco Capital I, $2.18 10,000 263
CONTINUED
SHARES VALUE
----------- ------------
CORPORATE BOND EQUIVALENTS (c), CONTINUED
Corts-First Union Capital II, $1.88 17,700 $ 462
Corts-Sherwin Williams, $1.81 57,600 1,474
Corts-TR Verizon Global, $3.13 54,500 1,408
Developers Diversified Realty, $2.15 48,300 1,290
Dominion CNG Capital Trust I, $1.95 39,800 1,040
Duke Realty Corp., $2.11 50,800 1,344
Duquesne Light Co., $1.68 34,000 906
Energy East Capital, $2.06 5,000 131
Entergy Arkansas, Inc., $1.50 80,600 2,006
Entergy Mississippi, Inc., $1.50 39,000 970
Entergy Mississippi, Inc., $1.81 9,400 243
Equity Residential Properties, $2.28,
Series G 19,900 529
Federal Realty Investment Trust, $2.13 43,300 1,138
Financial Security Assurance Holdings, $1.56 90,750 2,232
Fleet Capital Trust VI, $2.20 46,000 1,225
Fleet Captial Trust VII, $1.80 29,200 761
Ford Capital Trust Series II, $3.25 10,000 535
General Electric Capital Corp., $1.53 19,000 482
General Electric Capital Corp., $1.66 59,000 1,548
Glenborough Realty, $1.94, Series A 37,842 927
Harris Preferred Capital, Series A, $1.84 31,800 802
Household Capital Trust V, $2.50 17,000 456
Household Finance, $1.72 32,800 848
HRPT Properties Trust, $2.47 26,100 695
HRPT Properties Trust, Series B, $2.19 22,900 608
Huntington Preferred Cap, Inc., $1.97 15,507 419
ING Group NV, $1.80 41,200 1,077
Kimco Reality Preferred, $1.66 39,994 1,014
Laclede Capital Trust I, $1.93 10,000 269
Maytag Corp., $1.97 19,200 497
MBNA Corp., $1.88 28,400 728
MBNA Corp., $2.03 37,800 992
ML Capital Trust III, $1.75 49,800 1,291
Morgan Stanley Capital II, $1.81 81,525 2,103
National Rural Utility CFC, $1.91 10,000 261
National Rural Utility, $1.69 20,000 504
Nordstrom (CBTCS), $1.91 10,000 265
Preferred Plus Trust NAI-1, $2.01 4,400 112
PS Business Parks, Inc., $2.38 10,000 268
Public Credit & Repack Securities, $1.78 15,600 397
Public Storage, Inc., Series A, $2.45 15,000 404
Public Storage, Inc., Series S, $1.97 10,000 262
Puget Sound Energy Capital Trust, $2.10 13,700 361
Regions Financial Trust I, $2.00 66,500 1,741
Rouchester Gas & Electric, $1.66 42,800 1,120
Saturns JPM, $1.78 12,000 307
Saturns, Series S, $1.81 10,000 251
Sears Roebuck & Co. Acceptance, $1.75 41,600 1,046
Sempra Energy Capital Trust I, $2.23 29,900 778
Southern Co. Capital Trust VI, $1.78 58,600 1,530
Stilwell Financial, $1.97 36,800 942
Suntrust Capital V, $1.76 46,600 1,209
Torchmark Capital Trust I, $1.94 58,819 1,539
USB Capital V, $1.81 14,100 370
Virginia Power Capital Trust, 1.84 26,800 701
CONTINUED
79
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BOND EQUIVALENTS (c), CONTINUED
Wachovia Funding, $1.81, Series A 79,000 $ 2,110
Wells Fargo Capital Trust V, $1.75 18,600 486
Wells Fargo Capital Trust VI, $1.74 74,550 1,925
Wells Fargo Capital Trust VII, $1.46 33,500 781
------------
TOTAL CORPORATE BOND EQUIVALENTS 79,781
------------
PREFERRED STOCKS (c) (2.8%)
Fannie Mae, $1.77 8,800 342
Fannie Mae, $2.91 8,500 423
Freddie Mac, $2.50 20,000 840
Freddie Mac, $2.55 10,000 425
Freddie Mac, $2.85 25,500 1,247
Lehman Brothers, $1.92 10,000 257
Source Capital, $2.40 35,600 1,198
------------
TOTAL PREFERRED STOCKS 4,732
------------
REAL ESTATE INVESTMENT TRUSTS (i) (10.2%)
AMB Property Corp. 19,700 692
Developers Diversified Realty, Corp. 19,900 714
Duke-Weeks Realty Corp. 29,400 904
Equity Residential Properties Trust 30,050 888
Health Care Property Investors, Inc. 45,250 1,129
Kimco Realty Corp. 44,200 2,126
Mills Corp. 19,600 894
ProLogis 34,200 1,164
Simon Property Group, Inc. 41,804 2,158
Thornburg Mortgage, Inc. 84,900 2,355
Vornado Realty Trust 40,200 2,335
Weingarten Realty Investors 66,975 2,063
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 17,422
------------
U.S. TREASURY NOTES (1.3%)
7.00%, 7/15/06 $ 2,000 2,164
------------
TOTAL U.S. TREASURY NOTES 2,164
------------
U.S. GOVERNMENT AGENCIES (1.8%)
FANNIE MAE (0.6%)
4.28%, 7/1/18 1,020 1,014
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.2%)
5.49%, 8/16/27 1,150 1,172
4.89%, 7/16/34 1,000 955
------------
2,127
------------
TOTAL U.S. GOVERNMENT AGENCIES 3,141
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
INVESTMENT COMPANIES (7.9%)
1838 Bond Debenture Trading 127,000 $ 2,270
American Income Fund, Inc. 135,400 1,116
Blackrock Income Trust 108,600 775
Blackrock North American Government
Income 225,000 2,472
ING Prime Rate Trust 160,400 1,274
MFS Government Markets Income
Trust 217,400 1,411
MFS Intermediate Income Trust 49,000 316
Pioneer Interest Shares 90,700 999
Templeton Global Income Fund, Inc. 61,374 508
Van Kampen Bond Fund 64,800 1,129
Van Kampen Senior Income Trust 152,000 1,344
------------
TOTAL INVESTMENT COMPANIES 13,614
------------
REPURCHASE AGREEMENTS (2.3%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $3,974,
Collateralized by various U.S. Treasury
securities) $ 3,974 3,974
------------
TOTAL REPURCHASE AGREEMENTS 3,974
------------
TOTAL INVESTMENTS (COST $169,767)+ - 100.5% 172,450
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (832)
------------
NET ASSETS - 100.0% $ 171,618
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
80
SELECT STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMON STOCKS (99.3%)
Agilent Technologies, Inc.* 41,000 $ 976
Analog Devices, Inc. 10,000 397
Applied Materials, Inc.* 30,000 509
Avaya, Inc.* 30,000 440
Best Buy Co., Inc. 18,000 867
Boston Scientific Corp.* 20,000 765
Broadcom Corp., Class A* 18,000 637
Cintas Corp. 10,000 420
Cisco Systems, Inc.* 30,000 625
EMC Corp.* 90,000 987
Goldman Sachs Group, Inc. 9,000 793
Illinois Tool Works, Inc. 6,000 543
Intel Corp. 15,000 366
International Game Technology 20,000 647
J.P. Morgan Chase & Co. 17,000 635
L-3 Communications Holdings, Inc. 12,000 734
Manpower, Inc. 20,000 871
Maxim Integrated Products, Inc. 9,000 433
Nordstrom, Inc. 20,000 878
Phelps Dodge Corp. 12,000 935
Pulte Homes, Inc. 16,000 874
Rockwell Automation, Inc. 15,000 561
Teva Pharmaceutical Industries Ltd., ADR 28,000 829
Texas Instruments, Inc. 21,000 448
Varian Medical Systems, Inc.* 10,000 690
Xilinx, Inc. 20,000 589
------------
TOTAL COMMON STOCKS 17,449
------------
REPURCHASE AGREEMENTS (1.2%)
UBS Investment Bank, 1.31%, 8/2/04
Proceeds at maturity, $219,
Collateralized by a U.S. Treasury
security) $ 219 219
------------
TOTAL REPURCHASE AGREEMENTS 219
------------
TOTAL INVESTMENTS (COST $16,869)+ - 100.5% 17,668
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (90)
------------
NET ASSETS - 100.0% $ 17,578
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
COMMON STOCKS (99.5%)
Aeroflex, Inc.* 100,000 $ 1,109
Agilent Technologies, Inc.* 78,000 1,857
Akamai Technologies, Inc.* 35,000 523
Analog Devices, Inc. 50,000 1,985
Avaya, Inc.* 125,000 1,831
Broadcom Corp., Class A* 49,750 1,759
CheckFree Corp.* (g) 40,000 1,202
Cisco Systems, Inc.* 50,000 1,043
Cognex Corp. 27,500 827
Corning, Inc.* 135,000 1,669
Cree, Inc.* 38,000 850
Ditech Communications Corp.* 30,000 618
EMC Corp.* 165,000 1,809
Equinix, Inc.* 7,500 244
F5 Networks, Inc.* 50,000 1,309
FileNet Corp.* 35,000 665
Finisar Corp.* (g) 200,000 303
Flextronics International Ltd.* 70,000 880
Getty Images, Inc.* 20,000 1,092
Harmonic, Inc.* 100,000 651
Harris Corp. 30,000 1,424
Invitrogen Corp* 15,000 787
Jabil Circuit, Inc.* 42,500 924
Juniper Networks, Inc.* (g) 32,500 746
Komag, Inc.* (g) 35,000 397
Lucent Technologies, Inc.* (g) 500,000 1,525
Macromedia, Inc.* 57,500 1,162
Maxim Integrated Products, Inc. 25,000 1,203
Mercury Interactive Corp.* 32,500 1,188
MGI Pharma, Inc.* 35,000 980
Microsoft Corp. 10,000 285
Nextel Communications, Inc., Class A* 40,000 910
NMS Communications Corp.* 75,000 447
Overstock.com, Inc.* 20,000 701
PalmOne, Inc.* (g) 25,000 1,006
Perot Systems Corp., Class A* 62,500 789
Pixelworks, Inc.* 30,000 294
PLX Technology, Inc.* 45,000 400
RSA Security, Inc.* 75,000 1,396
Sanmina-SCI Corp.* 125,000 918
Sapient Corp.* 240,000 1,677
Scientific-Atlanta, Inc. 30,000 923
Semtech Corp.* 40,000 794
Tekelec* 50,000 972
Texas Instruments, Inc. 60,000 1,280
ViaSat, Inc.* 35,000 634
Western Wireless Corp., Class A* 37,500 990
Xilinx, Inc. 30,000 883
------------
TOTAL COMMON STOCKS 47,861
------------
CONTINUED
81
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS (0.4%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $169,
Collateralized by a U.S. Treasury
security) $ 169 169
------------
TOTAL REPURCHASE AGREEMENTS 169
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (9.3%)
Pool of various securities for Fifth Third
Funds 4,497 4,497
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 4,497
------------
TOTAL INVESTMENTS (COST $54,415)+ - 109.2% 52,527
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.2)% (4,409)
------------
NET ASSETS - 100.0% $ 48,118
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS (86.6%)
AUSTRALIA (1.8%)
Alumina, Ltd. 40,304 $ 147
Amcor, Ltd. 19,098 92
AMP, Ltd. 30,798 136
Ansell, Ltd. 903 5
Australia & New Zealand Banking
Group, Ltd. 13,652 173
Australian Gas & Light Co. 4,391 39
BHP Steel, Ltd. 8,310 43
BHP, Ltd. 80,310 742
Boral, Ltd. 5,925 30
Brambles Industries, Ltd. 25,015 105
Centro Properties Group 6,949 22
CFS Gandel Retail Trust 15,491 16
Coca-Cola Amatil, Ltd. 17,878 88
Coles Myer, Ltd. 10,143 63
Commonwealth Bank of Australia 28,589 625
CSL, Ltd. 3,049 55
CSR, Ltd. 28,989 47
Foster's Group, Ltd. 45,043 146
General Property Trust 18,694 46
Insurance Australia Group 42,701 149
Investa Property Group 12,111 17
James Hardie Industries NV 4,698 19
John Fairfax Holdings, Ltd. 9,200 24
Leighton Holdings, Ltd. 2,372 16
Lend Lease Corp., Ltd. 3,916 29
Macquarie Bank, Ltd. 5,278 122
Macquarie Infrastructure Group 66,207 161
Mayne Nickless, Ltd. 8,502 21
Mirvac Group 7,503 24
National Australia Bank, Ltd. (g) 36,135 675
Newcrest Mining, Ltd. 3,466 35
News Corp., Ltd. 66,389 534
Onesteel, Ltd. 2,613 5
Orica, Ltd. 2,896 32
Origin Energy, Ltd. 2,961 13
Paperlinx, Ltd. 4,009 14
Patrick Corp., Ltd. 10,538 41
QBE Insurance Group, Ltd. 15,574 136
Rinker Group, Ltd. 26,908 156
Rio Tinto, Ltd. 8,858 236
Santos, Ltd. 5,901 30
Sonic Healthcare, Ltd. 1,295 8
Southcorp Holdings, Ltd.* 6,725 15
Stockland Trust Group 12,766 49
Suncorp Metway, Ltd. 5,068 49
TABCORP Holdings, Ltd. 9,965 98
Telstra Corp., Ltd. 50,555 175
Transurban Group 5,227 19
Westfarmers, Ltd. 8,613 178
Westfield Group* 19,881 211
Westpac 20,907 247
WMC Resources, Ltd. 29,326 107
Woodside Petroleum, Ltd. 12,056 152
Woolworths, Ltd. 26,428 217
------------
6,634
------------
CONTINUED
82
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
AUSTRIA (0.5%)
Bank Austria Creditanstalt 1,210 $ 71
Boehler-Uddeholm AG 451 36
EFG Eurobank Ergasias 6,029 130
Erste Bank Der Oesterreichischen 13,364 517
Sparkassen AG
Flughafen Wein AG 839 48
Mayr-Melnhof Karton AG 500 65
OMV AG 1,593 349
RHI AG* 944 21
Telekom Austria AG 22,689 352
VA Technologie AG* 697 39
Voest-Alpine Stahl AG 1,929 91
Wienerberger Baust 3,364 121
------------
1,840
------------
BELGIUM (0.8%)
Agfa Gevaert NV 8,768 210
Bekaert NV 325 20
Belgacom SA* 2,171 67
Delhaize Group 2,071 99
Dexia (g) 34,518 575
Fortis 50,390 1,085
Groupe Bruxelles Lambert SA 2,154 133
Interbrew 5,054 153
KBC Bancassurance Holding SA 4,820 272
Solvay SA 2,454 205
UCB SA 4,195 193
Umicore 90 6
------------
3,018
------------
BERMUDA (0.1%)
Cheung Kong Infrastructure Holdings, Ltd. 15,000 36
Esprit Holdings, Ltd. 22,500 100
Johnson Electric Holdings, Ltd. 38,000 38
Li & Fung, Ltd. 44,000 61
SCMP Group, Ltd. 10,000 4
Shagri-La Asia, Ltd. 26,470 25
Yue Yuen Industrial Holdings, Ltd. 13,000 32
------------
296
------------
BRAZIL (0.2%)
Aracruz Celulose SA, B Shares 15,000 52
Centrais Eletricas Brasileiras SA, B Shares 3,269,000 45
Companhia Brasileira de Distribuicao 800 15
Grupo Pao de Acucar ADR
Companhia Vale do Rio Doce, A Shares 7,000 309
Souza Cruz SA 3,000 30
Unibanco-Uniao de Bancos Brasileiros
SA GDR 2,600 56
Usinas Siderurgicas de Minas Gerais
SA, A Shares 3,000 43
------------
550
------------
CHINA (0.6%)
Aluminum Corp. of China, Ltd. 310,000 162
Beijing Capital International Airport
Co., Ltd. 204,000 67
BYD Co., Ltd., H Shares 16,000 46
China Life Insurance Co., Ltd., H Shares* 680,000 375
China Oilfield Services, Ltd., H Shares 90,000 27
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
CHINA, CONTINUED
China Petroleum & Chemical Corp. 1,544,000 $ 603
China Shipping Development Co., Ltd. 46,000 30
China Telecom Corp., Ltd. 808,000 269
Jiangsu Expressway Co., Ltd. 134,000 55
Jiangxi Copper Co., Ltd. 119,000 57
Maanshan Iron & Steel Co., Ltd., H Shares 174,000 58
PICC Property & Casualty Co., Ltd.,
H Shares * 321,000 115
Shandong International Power
Development Co., Ltd. 202,000 62
Sinopec Zhenhai Refining & Chemical
Co., Ltd., H Shares 14,000 15
Sinotrans, Ltd. 224,000 76
Weiqiao Textile Co., Ltd., H Shares 28,000 41
Yanzhou Coal Mining Co., Ltd. 104,000 126
Zhejiang Expressway Co., Ltd. 157,000 116
------------
2,300
------------
DENMARK (0.4%)
A P Moller - Maersk AS 10 70
Danisco AS 900 46
Danske Bank 21,687 499
Falck AS* 2,000 13
ISS AS 1,100 54
Novo Nordisk AS 13,230 672
Novozymes AS 1,350 61
TDC AS 3,200 104
Vestas Wind Systems AS* 3,850 49
William Demant Holdings AS* 1,000 36
------------
1,604
------------
FINLAND (1.1%)
Fortum Oyj 7,649 105
Kesko Oyj, B Shares 3,423 66
Kone Corp. 1,760 103
Metso Oyj, B Shares 7,335 95
Nokia Oyj 210,980 2,417
Outokumpo Oyj 7,841 123
Sampo Insurance Co. 6,603 62
Stora Enso Oyj 24,992 347
TietoEnator Oyj 4,643 129
UPM-Kym'mene Oyj 22,623 439
Uponor Oyj 535 18
Wartsila Corp. Oyj, B Shares 1,853 41
------------
3,945
------------
FRANCE (8.6%)
Accor SA 12,660 537
Alcatel* (g) 54,565 706
Alstom* (g) 10,748 6
Arcelor 14,679 247
Atos Origin SA* 797 47
Aventis SA (g) 33,781 2,619
AXA SA (g) 65,060 1,335
Banque Nationale de Paris 40,366 2,348
BIC 1,284 55
Bouygues (g) 17,248 579
Business Objects SA* 2,186 47
Cap Gemini* 4,197 140
Carrefour SA 24,592 1,172
CONTINUED
83
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
FRANCE, CONTINUED
Casino Guichard-Perrachon 2,229 $ 181
CNP Assurances 1,512 85
Compagnie de Saint Gobain 16,524 807
Compagnie Generale des Etablissements
Michelin 3,376 188
Credit Agricole SA 16,947 399
Dassault Systems SA 2,015 90
Essilor International 2,206 135
Euronext NV 2,344 62
European Aeronautic Defence and Space Co. 11,891 327
France Telecom SA 53,371 1,320
Groupe Danone 10,026 826
Imerys SA 1,680 102
L'Air Liquide SA 5,353 866
L'Oreal SA 8,732 625
Lafarge SA 8,085 692
Lagardere Group SCA 8,650 526
LVMH Moet-Hennessy Louis Vuitton (g) 18,685 1,274
Peugeot SA 7,623 439
Pinault Printemps 2,337 228
Publicis Groupe 4,696 127
Renault SA 6,913 545
Sagem SA 859 84
Sanofi-Synthelabo (g) 17,588 1,165
Schneider Electric SA 7,753 493
Societe Generale-A 15,875 1,302
Societe Television Francaise 1 4,417 126
Sodexho SA 3,426 93
STMicroelectronics NV 26,464 491
Suez SA (g) 20,544 406
Technip-Coflexip SA (g) 360 50
Thales SA 7,140 248
Thomson 12,428 231
Total SA 27,229 5,279
Veolia Environnement 7,851 209
Vinci 3,209 326
Vivendi Universal* (g) 35,839 895
Zodiac SA 1,686 58
------------
31,138
------------
GERMANY (5.7%)
Adidas-Salomon AG 2,432 288
Allianz AG 11,194 1,077
Altana AG 3,525 191
BASF AG 20,333 1,080
Bayer AG 25,063 665
Bayerische Hypo- und Vereinsbank AG* 15,845 255
Beiersdorf AG 2,501 290
Commerzbank AG* 21,217 362
Continental AG 3,078 145
DaimlerChrysler AG (g) 29,928 1,337
Deutsche Bank AG 32,653 2,258
Deutsche Boerse AG 6,255 305
Deutsche Lufthansa AG* 7,771 92
Deutsche Post AG 17,941 360
Deutsche Telekom AG* (g) 113,378 1,895
Douglas Holdings AG 1,137 33
Epcos AG* 1,756 30
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
Fresenius Medical Care AG (g) 3,066 $ 223
Gehe AG 3,035 193
Heidelberger Zement AG 1,243 56
Henkel KGaA 2,849 209
Infineon Technologies AG* 18,239 199
Karstadt AG 766 16
Linde AG 4,510 243
MAN AG 4,408 163
Merck KGAA 2,409 135
Metro AG 5,322 242
Muenchener Rueckver AG 3,293 316
Porsche AG 637 411
ProSiebenSat. l Media AG 2,443 42
Puma AG Rudolf Dassler Sport 380 89
RWE AG 14,431 704
SAP AG 6,866 1,100
Schering AG 7,777 436
Siemens AG 32,346 2,263
Thyssen Krupp AG 14,506 258
TUI AG 3,560 61
VEBA AG 32,012 2,272
Volkswagen AG (g) 11,494 466
------------
20,760
------------
GREAT BRITAIN (19.0%)
Aegis Group PLC 45,900 70
AMEC PLC 9,564 47
ARM Holdings PLC 33,515 64
AstraZeneca PLC 76,034 3,407
Astro All Asia Networks PLC* 8,100 10
Aviva PLC 86,708 884
BAE Systems PLC 123,144 479
Balfour Beatty 12,049 58
Barclays PLC 280,189 2,346
Barratt Developments PLC 9,742 100
BG Group PLC 137,619 859
BHP Billiton PLC 107,144 977
BOC Group PLC 17,431 299
Boots Group PLC 32,437 403
BP Amoco PLC 788,913 7,410
BPB PLC 9,292 67
Brambles Industries PLC 23,959 93
British Airways PLC* 20,949 88
British American Tobacco PLC 68,464 1,042
British Sky Broadcasting Group PLC 58,425 643
BT Group PLC 426,446 1,465
Bunzl PLC 8,623 69
Cable & Wireless PLC 61,759 122
Cadbury Schweppes PLC 80,590 661
Capita Group PLC 26,358 147
Carnival PLC 7,087 347
Centrica PLC 45,735 197
Cobham PLC 3,363 84
Compass Group PLC 93,674 545
Daily Mail & General Trust 13,358 163
Davis Service Group 1,675 11
De La Rue PLC 13,051 77
Diageo PLC 154,743 1,920
CONTINUED
84
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Dixons Group PLC 43,280 $ 126
Electrocomponents PLC 16,652 99
EMAP PLC 11,341 150
EMI Group PLC 33,511 137
Enterprise Inns PLC 13,578 132
Exel PLC 6,777 89
FKI PLC 16,026 35
Friends Provident PLC 63,478 152
George Wimpey PLC 10,935 74
GKN PLC 15,801 66
Glaxosmithkline PLC 254,018 5,165
Great Universal Stores PLC 27,800 436
Group 4 Securicor PLC* 20,333 43
Hanson PLC 20,043 139
Hays PLC 63,392 141
HBOS PLC 133,964 1,738
Hilton Group PLC 67,939 323
HSBC Holdings PLC 487,779 7,170
IMI PLC 14,823 98
Imperial Chemical Industries PLC 49,904 206
Imperial Tobacco Group PLC 19,880 433
InterContinental Hotels Group PLC 32,449 345
Invensys PLC* 169,594 49
ITV PLC 178,557 340
J Sainsbury PLC 65,498 322
Johnson Matthey PLC 9,453 156
Kelda Group PLC 10,891 102
Kesa Electricals PLC 6,039 31
Kidde PLC 28,225 61
Kingfisher PLC 26,424 137
Legal & General Group PLC 251,163 444
Lloyds TSB Group PLC 206,658 1,551
Logica PLC 27,923 84
Marks & Spencer PLC 57,851 365
Misys PLC 21,426 72
Mitchells & Butlers PLC 28,695 141
National Grid Transco PLC 130,365 1,033
Novar PLC 11,168 24
Pearson PLC 34,996 393
Peninsular & Oriental Steam Navigation
Co. PLC 14,969 61
Persimmon PLC 2,600 28
Pilkington PLC 51,406 90
Prudential Corp. PLC 75,843 626
Rank Group PLC 25,926 140
Reckitt Benckiser PLC 22,845 626
Reed International PLC 54,651 485
Rentokil Initial PLC 72,193 187
Reuters Holding PLC 64,997 385
Rexam PLC 19,644 153
Rio Tinto PLC 48,238 1,258
RMC Group PLC 5,273 57
Rolls-Royce Group PLC 92,664 407
Royal & Sun Alliance Insurance Group PLC 107,421 151
Royal Bank of Scotland Group PLC 75,349 2,121
Sage Group PLC 49,425 155
Scot Power PLC 36,073 259
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Scottish & Southern Energy PLC 16,461 $ 215
Serco Group PLC 17,572 64
Severn Trent PLC 9,635 140
Shell Transportation & Trading Co. PLC 355,311 2,578
Smith & Nephew PLC 11,289 114
Smiths Industries PLC 21,323 283
SSL International PLC 403 2
Tate & Lyle PLC 27,922 167
Taylor Woodrow PLC 14,522 66
Tesco PLC 362,375 1,679
Tompkins PLC 26,725 123
Unilever PLC 140,793 1,244
United Business Media PLC 14,580 131
Vodaphone Airtouch PLC 2,475,459 5,374
Whitbread PLC 15,062 225
William Hill PLC 22,412 211
Wolseley PLC 27,653 430
WPP Group PLC 54,411 504
Yell Group PLC 19,282 118
------------
68,613
------------
GREECE (0.1%)
Alpha Bank A.E. 8,400 199
National Bank of Greece SA 12,654 270
Titan Cement Co. 800 18
------------
487
------------
HONG KONG (1.1%)
Angang New Steel Co., Ltd., H Shares 98,000 39
ASM Pacific Technology, Ltd. 1,500 5
Bank of East Asia, Ltd. 37,276 106
Beijing Datang Power Generation 140,000 109
BOC Hong Kong Holdings, Ltd. 69,000 118
Cathay Pacific Airways, Ltd. 26,000 46
Cheung Kong Infrastructure Holdings, Ltd. 39,000 289
China Southern Airlines* 134,000 46
CLP Holdings, Ltd. 45,680 257
Hang Lung Properties, Ltd. 32,000 44
Hang Seng Bank, Ltd. 18,400 235
Henderson Land Development, Ltd. 18,000 79
Hong Kong & China Gas Co., Ltd. 100,348 175
Hong Kong Electric Holdings, Ltd. 36,000 154
Hong Kong Exchanges & Clearing, Ltd. 27,000 56
Hopewell Holdings, Ltd. 8,000 16
Huaneng Power International 286,000 229
Hutchison Whampoa, Ltd. 57,000 385
Hysan Development Co., Ltd. 7,155 13
MTR Corp. 36,377 55
New World Development Co., Ltd. 35,110 28
PCCW, Ltd.* 81,047 56
Petrochina 1,614,000 802
Sino Land Company, Ltd. 25,206 16
Sinopec Shanghai Petrochem 234,000 83
Sun Hung Kai Properties, Ltd. 35,136 297
Swire Pacific, Ltd. 24,500 163
Techtronic Industries Co., Ltd. 25,000 37
Television Broadcasts, Ltd. 5,000 21
Wharf Holdings, Ltd. 32,600 100
------------
4,059
------------
CONTINUED
85
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
INDIA (0.1%)
Larsen & Toubro, Ltd. GDR (g) 9,295 $ 187
------------
INDONESIA (0.0%)
PT Mulia Industrindo Tbk* 19,000 1
------------
IRELAND (0.6%)
Allied Irish Banks PLC 41,602 639
Bank of Ireland 47,320 619
CRH PLC 15,106 338
DCC PLC 1,498 26
Elan Corp. PLC* 19,800 401
Grafton Group PLC* 1,311 11
Independent News & Media PLC 7,163 16
Irish Life & Permanent PLC 3,960 60
Kerry Group PLC 2,168 45
------------
2,155
------------
ITALY (1.9%)
Alleanza Assicurazioni SpA 8,552 92
Assicurazioni Generali (g) 14,527 384
Autogrill SpA* 1,564 23
Banca Fideuram SpA 2,974 15
Banca Monte dei Paschi di Seina SpA 10,883 33
Banca Nazionale del Lavoro SpA* (g) 19,082 45
Banca Popolare di Milano 2,038 13
Banche Popolari Unite Scrl 1,567 26
Banco Popolare di Verona e Novara Scrl 10,993 183
Benetton Group SpA 1,984 21
Capitalia SpA 7,884 24
Credito Italiano 132,735 635
Enel SpA (g) 20,686 163
ENI SpA 61,139 1,256
Fiat SpA* 1,635 13
Finmeccanica SpA 145,282 102
IntesaBci SpA 107,796 399
Intesabci SpA-RNC 10,732 30
Italcementi SpA 1,423 19
Luxottica Group SpA 1,227 21
Mediaset SpA 17,204 183
Mediobanca SpA 4,659 54
Mediolanum SpA 2,235 14
Pirelli SpA 65,537 65
RAS SpA 4,714 85
San Paolo IMI SpA 29,871 341
Seat Pagine Gialle SpA 90,364 36
Snam Rete Gas SpA 2,807 12
Telecom Italia Mobile SpA 155,271 824
Telecom Italia SpA 225,449 484
Telecom Italia SpA - RNC 364,710 1,080
Tiscali SpA* (g) 4,956 18
------------
6,693
------------
JAPAN (25.0%)
Acom Co., Ltd. 2,000 129
Advantest 3,800 223
AEON Co., Ltd. 15,800 543
Aiful Corp. 1,200 113
Ajinomoto Co., Inc. 33,400 389
Alps Electric Co., Ltd. 8,000 108
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Amada Co., Ltd. 12,000 $ 68
Asahi Breweries, Ltd. 24,600 262
Asahi Glass Co., Ltd. (g) 60,800 548
Asahi Kasei Corp. 81,000 356
Asatsu, Ltd. 800 21
Bellsystem 24, Inc. 160 30
Benesse Corp. 2,100 62
Bridgestone Corp. 48,000 868
Canon, Inc. 43,000 2,104
Casio Computer Co., Ltd. 17,800 242
Central Japan Railway Co. 74 596
Chubu Electric Power Co., Inc. 9,500 200
Chugai Pharmaceutical Co., Ltd. 15,900 250
Citizen Watch Co., Ltd. 14,000 140
Credit Saison Co., Ltd. 3,900 118
CSK Corp. 3,500 148
Dai Nippon Printing Co., Ltd. 27,600 391
Daicel Chemical Industries, Ltd. 4,000 19
Daiichi Pharmaceutical Co., Ltd. 13,500 248
Daikin Kogyo Corp. 7,000 173
Dainippon Ink & Chemicals, Inc. 39,000 90
Daito Trust Construction Co., Ltd. 5,100 190
Daiwa House Co., Ltd. 28,600 298
Daiwa Securities Group, Ltd. 179,000 1,177
Denki Kagaku Kogyo Kabushiki Kaisha, Ltd. 10,000 33
Denso Corp. 37,250 915
Dentsu, Inc. 24 61
Dowa Mining Co., Ltd. 16,000 97
East Japan Railway Co. 250 1,365
Ebara Corp. 19,800 86
Eisai Co., Ltd. 14,800 435
FamilyMart Co., Ltd. 2,300 67
Fanuc Co., Ltd. 9,600 554
Fast Retailing Co., Ltd. 4,000 282
Fuji Photo Film Co., Ltd. 26,000 781
Fuji Television Network 52 114
Fujikura 8,000 39
Fujisawa Pharmaceutical Co. 9,600 233
Fujitsu, Ltd. (g) 89,000 552
Furukawa Electric Co., Ltd.* 30,800 126
Hankyu Department Stores, Inc. 2,000 15
Hirose Electric Co., Ltd. 1,700 165
Hitachi Chemical Co., Ltd. 1,000 14
Hitachi, Ltd. 160,000 979
Honda Motor Co., Ltd. 56,051 2,731
Hoya Corp. 5,700 587
Isetan Co., Ltd. 13,700 157
Ishihara Sangyo Kaisha, Ltd. 4,000 8
Ishikawajima-Harima Heavy Industries
Co., Ltd.* 35,000 52
Ito Yokado Co., Ltd. 18,000 701
Itochu Corp. 75,000 290
Japan Airlines System Corp.* 41,000 119
Japan Real Estate Investment Corp. 17 121
Japan Synthetic Rubber 9,500 158
Japan Tobacco, Inc. 34 260
JFE Holdings, Inc. 27,100 650
CONTINUED
86
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
JGC Corp. 6,000 $ 56
Kajima Corp. 53,400 181
Kaken Pharmaceutical 1,000 6
Kaneka Corp. 19,000 167
Kansai Electric Power Co., Inc. 28,700 524
Kao Corp. 34,000 844
Kawasaki Heavy Industries, Ltd. 29,000 43
Kawasaki Kisen Kaisha, Ltd. 2,000 10
Keihin Electric Express Railway Co., Ltd. 10,000 59
Keio Electric Railway Co., Ltd. 6,000 32
Keyence Corp. 1,500 318
Kikkoman Corp. 4,000 35
Kinki Nippon Railway Co., Ltd. 93,230 321
Kirin Brewery Co., Ltd. 49,400 484
Kobe Steel, Ltd. 17,000 24
Kokuyo Co., Ltd. 1,900 23
Komatsu, Ltd. 59,400 351
Komori Corp. 2,000 31
Konami Co., Ltd. 5,100 111
Konica Corp. 20,500 269
Kubota Corp. 90,000 409
Kuraray Co., Ltd. 24,000 182
Kurita Water Industries, Ltd. 1,900 27
Kyocera Corp. 8,800 681
Kyowa Hakko Kogyo Co., Ltd. 21,200 148
Kyushu Electric Power Co., Inc. 5,500 103
Lawson, Inc. 2,400 93
Mabuchi Motor Co., Ltd. 1,600 113
Marubeni Corp. 56,800 129
Marui Co., Ltd. 29,300 354
Matsushita Electric Industrial Co., Ltd. 114,000 1,522
Matsushita Electric Works 5,000 43
Meiji Seika Co., Ltd. 4,000 17
Meitec Corp. 900 32
Millea Holdings, Inc. 98 1,446
Minebea Co., Ltd. 15,000 64
Mitsubishi Chemical Corp. 113,000 268
Mitsubishi Corp. 68,000 656
Mitsubishi Electric Corp. 105,800 483
Mitsubishi Estate Co., Ltd. (g) 100,000 1,140
Mitsubishi Gas Chemical Co., Inc. 4,000 15
Mitsubishi Heavy Industries, Ltd. 182,000 476
Mitsubishi Logistics Corp. 2,000 19
Mitsubishi Materials Corp. 7,000 14
Mitsubishi Rayon Co., Ltd. 30,000 105
Mitsubishi Tokyo Financial Group, Inc. 294 2,636
Mitsui & Co., Ltd. (g) 69,800 524
Mitsui Chemicals, Inc. 21,000 93
Mitsui Fudosan Co., Ltd. (g) 73,400 817
Mitsui Mining & Smelting Co., Ltd. 30,000 123
Mitsui O.S.K. Lines, Ltd. 7,000 36
Mitsui Sumitomo Insurance Co. 132,230 1,225
Mitsui Trust Holding, Inc. 41,513 291
Mitsukoshi, Ltd. (g) 39,000 179
Mizuho Financial Group, Inc. 458 1,738
Murata Manufacturing Co., Ltd. 11,100 552
NEC Corp. 79,200 495
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Net One Systems Co., Ltd. 34 $ 110
New Oji Paper Co. 60,400 388
NGK Insulators, Ltd. 16,600 131
NGK Spark Plug Co., Ltd. 12,000 117
Nidec Corp. 2,100 195
Nikko Cordial Corp. 66,000 300
Nikon Corp. (g) 16,000 154
Nintendo Co., Ltd. 6,200 691
Nippon Building Fund, Inc. 17 120
Nippon Express Co., Ltd. 46,600 247
Nippon Meat Packers, Inc. 12,600 154
Nippon Mining Holdings, Inc. 12,000 51
Nippon Oil Co., Ltd. 87,600 540
Nippon Sheet Glass Co., Ltd. 17,000 64
Nippon Steel Corp. 370,800 754
Nippon Telegraph and Telephone Corp. 380 1,897
Nippon Unipac Holding 52 256
Nippon Yusen Kabushiki Kaisha 75,000 345
Nissan Chemical Industries, Ltd. 6,000 45
Nissan Motors Co., Ltd. 152,100 1,644
Nisshin Flour Milling Co., Ltd. 4,000 40
Nisshin Steel Co., Ltd. 5,000 10
Nisshinbo Industries, Inc. 2,000 14
Nissin Food Products Co., Ltd. 3,800 96
Nitto Denko Corp. 9,300 390
Nomura Research Institute, Ltd. 1,500 140
Nomura Securities Co., Ltd. 114,000 1,567
NSK, Ltd. 34,000 152
NTN Corp. 24,000 125
NTT Data Corp. 76 218
NTT DoCoMo, Inc. 591 1,031
Obayashi Corp. 31,000 148
Oki Electric Industry Co., Ltd.* 38,000 137
Olympus Optical Co., Ltd. 7,000 136
Omron Corp. 12,700 272
Onward Kashiyama Co., Ltd. 4,000 55
Oracle Corp. Japan 2,100 105
Oriental Land Co., Ltd. 2,600 163
Orix Corp. 2,300 249
Osaka Gas Co., Ltd. 74,200 198
Pioneer Electronic Corp. 9,101 197
Promise Co., Ltd. 2,500 162
Ricoh Co., Ltd. 34,000 664
Rohm Co., Ltd. 5,800 622
Sampo Japan Insurance, Inc. 43,000 425
Sanden Corp. 1,000 6
Sankyo Co., Ltd. 27,500 595
Sanyo Electric Co., Ltd. 90,000 344
Secom Co., Ltd. 9,600 389
Seiko Epson Corp. 4,900 192
Sekisui Chemical Co., Ltd. 12,000 87
Sekisui House, Ltd. 35,600 359
Seven-Eleven Japan Co., Ltd. 21,000 646
Sharp Corp. 46,200 669
Shimachu Co., Ltd. 1,900 46
Shimamura Co., Ltd. 2,100 153
Shimano, Inc. 4,800 117
CONTINUED
87
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Shimizu Construction 36,600 $ 152
Shin-Etsu Chemical Co. 19,448 661
Shionogi & Co., Ltd. 18,000 322
Shisiedo Co., Ltd. 22,800 284
Showa Denko KK 38,000 85
Showa Shell Sekiyu KK 7,000 63
Skylark Co., Ltd. 5,700 106
SMC Corp. 4,000 392
Softbank Corp. (g) 12,700 448
Sony Corp. 42,398 1,491
Stanley Electric Co., Ltd. 5,700 87
Sumitomo Bakelite Co. 4,000 24
Sumitomo Chemical Co., Ltd. 75,600 311
Sumitomo Corp. 45,200 316
Sumitomo Electric Industries 29,400 280
Sumitomo Heavy Industries, Ltd.* 5,000 14
Sumitomo Metal Industry, Ltd. 38,000 41
Sumitomo Metal Mining Co., Ltd. 37,600 225
Sumitomo Mitsui Financial Group, Inc. (g) 374 2,257
Sumitomo Osaka Cement Co., Ltd. 7,000 18
Sumitomo Realty & Development Co., Ltd. 35,000 399
Sumitomo Trust & Banking 74,000 434
Taiheiyo Cement Corp. 8,000 19
Taisei Construction 6,000 19
Taisho Pharmaceutical Co. 16,800 353
Taiyo Yuden Co., Ltd. 6,000 72
Taka Shi Maya Co., Ltd. (g) 22,000 205
Takara Shuzo Co., Ltd. 4,000 29
Takeda Chemical Industries, Ltd. 50,500 2,366
Takefuji Corp. 1,890 136
Takuma Co., Ltd. 3,000 21
TDK Corp. 6,000 416
Teijin, Ltd. 52,400 182
Teikoku Oil Co., Ltd. 4,000 21
Terumo Corp. 11,200 272
The Daimaru, Inc. 20,000 155
THK Co., Ltd. 600 10
TIS, Inc. 2,151 82
Tobu Railway Co., Ltd. 29,600 117
Toda Corp. 6,000 24
Toho Co. 1,600 23
Tohoku Electric Power Co., Ltd. 15,700 258
Tokyo Broadcasting System, Inc. 4,600 79
Tokyo Electric Power Co., Inc. 42,800 972
Tokyo Electronics, Ltd. 8,200 402
Tokyo Gas Co., Ltd. (g) 84,600 303
Tokyu Corp. 50,400 232
Tonengeneral Sekiyu K.K. 5,000 40
Toppan Printing Co., Ltd. 28,600 287
Toray Co. 81,100 385
Toshiba Corp. 161,000 592
Tosoh Corp. 30,000 97
Tostem Corp. 10,000 204
Toto, Ltd. 24,600 240
Toyo Seikan Kaisha, Ltd. 8,000 127
Toyobo Co., Ltd. 2,000 5
Toyoda Gosei Co., Ltd. 500 11
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Toyota Automatic Loom Works 2,900 $ 68
Toyota Motor Corp. 157,100 6,329
Trend Micro, Inc. 4,700 193
UJF Holdings, Inc. 225 905
Uni-Charm Corp. 1,600 84
UNY Co., Ltd. 5,000 58
USS Co., Ltd. 3,940 319
Wacoal Corp. 2,000 20
West Japan Railway Co. 17 68
World Co., Ltd. 850 24
Yahoo Japan Corp.* 49 390
Yakult Honsha Co., Ltd. (g) 4,000 60
Yamada Denki Co., Ltd. 7,700 267
Yamaha Corp. 4,300 65
Yamaha Motor Co., Ltd. 1,000 15
Yamanouchi Pharmaceutical Co., Ltd. 21,100 725
Yamato Transport Co., Ltd. 18,000 287
Yamazaki Baking Co., Ltd. 3,000 29
Yokogawa Electric Corp. 10,000 117
------------
90,299
------------
MALAYSIA (0.3%)
AMMB Holdings Berhad 22,700 21
Berjaya Sports Toto Berhad 30,800 30
Commerce Asset-Holdings Berhad 48,800 60
Gamuda Berhad 2,100 3
Genting Berhad 17,400 69
Hong Leong Bank Berhad 9,600 13
IOI Corp. Berhad 35,000 73
Kuala Lumpur Kepong Berhad 2,800 5
Magnum Corp. Berhad 17,000 11
Mal Rothmans Pall Mall 1,100 15
Malakoff Berhad 25,000 42
Malayan Banking Berhad 29,000 82
Malaysian International Shipping Corp.
Berhad 5,700 18
Maxis Communications Berhad 35,000 81
O.Y.L. Industries Berhad 400 4
PLUS Expressways Berhad 17,400 11
Proton Holdings Berhad* 14,000 29
Public Bank Berhad* 32,000 59
Resorts World Berhad 21,700 52
Sime Darby Berhad 42,800 63
SP Setia Berhad 2,200 2
Tanjong PLC 5,900 20
Telekom Malaysia Berhad 44,000 119
Tenaga Nasional Berhad 21,500 56
YTL Corporation Berhad 7,000 8
------------
946
------------
NETHERLANDS (4.2%)
ABN AMRO Holding NV (g) 77,013 1,611
Aegon NV 64,194 729
Akzo NV 11,287 372
ASML Holding NV* 20,930 299
DSM NV 2,500 125
Elsevier NV 27,950 357
Hagemeyer NV* 2,132 5
Heineken NV 9,583 300
CONTINUED
88
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
NETHERLANDS, CONTINUED
ING Groep NV 85,655 $ 1,985
Koninklijke KNP NV (g) 81,289 600
Oce NV 3,666 55
Philips Electronics NV 59,147 1,432
Royal Dutch Petroleum (g) 97,265 4,874
TNT Post Groep NV 14,302 313
Unilever NV 23,524 1,447
Vedior NV 4,797 70
VNU NV 11,236 296
Wolters Kluwer NV CVA 13,628 229
------------
15,099
------------
NEW ZEALAND (0.0%)
Auckland International Airport, Ltd. 1,787 8
Carter Holt Harvey, Ltd. 7,817 11
Contact Energy, Ltd. 2,639 10
Fisher & Paykel Appliances Holdings, Ltd. 1,810 6
Fisher & Paykel Industries, Ltd. 419 4
Fletcher Building, Ltd. 2,432 8
Sky City Entertainment Group, Ltd. 2,451 8
Telecom Corp. of New Zealand, Ltd. 12,253 47
The Warehouse Group, Ltd. 1,226 3
------------
105
------------
NORWAY (0.3%)
DnB Holding ASA 13,396 92
Norsk Hydro ASA 6,142 388
Norske Skogindustrier AG 4,400 78
Orkla SA 8,000 192
Schibsted ASA 1,250 22
Statoil ASA 11,500 144
Storebrand ASA 4,800 31
Tandberg ASA 800 7
Telenor ASA 12,900 88
Tomra Systems ASA 2,135 8
Yara International ASA* 6,142 54
------------
1,104
------------
PORTUGAL (0.2%)
Banco Commercial 88,339 183
BPI-SGPS SA 2,389 9
Brisa Auto-Estradas 6,482 46
Electricidade de Portugal SA 36,526 97
Portugal Telecom SA 34,562 354
PT Multimedia-Servicos de Telecomunicacoes
e Multimedia, SGPS, SA 687 15
Sonae, SGPS SA 25,407 26
------------
730
------------
RUSSIA (0.4%)
Lukoil ADR 5,900 643
MMC Norilsk Nickel 3,700 186
Oao Gazprom ADR 3,598 98
RAO Unified Energy Systems 4,100 98
Rostelecom ADR 6,600 76
Surgutneftegaz ADR 4,600 154
Tatneft ADR 3,300 72
Yukos 6,120 89
------------
1,416
------------
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
SINGAPORE (1.0%)
Ascendas Real Estate Investment Trust 11,000 $ 9
Capitaland, Ltd. 67,000 61
CapitaMall Trust 14,300 14
Chartered Semiconductor Manufacturing,
Ltd.* (g) 71,000 42
City Developments, Ltd. 36,370 129
ComfortDelGro Corp., Ltd. 132,333 96
Creative Technology, Ltd. 3,305 34
DBS Group Holdings, Ltd. 63,945 577
Fraser & Neave, Ltd. 11,000 91
Keppel Corp., Ltd. 34,000 144
Neptune Orient Lines, Ltd. 58,000 82
Oversea-Chinese Banking Corp., Ltd. 56,745 423
Overseas Union Enterprises 3,735 16
Sembcorp Industries, Ltd. 56,303 42
Singapore Airlines, Ltd.* (g) 33,000 213
Singapore Exchange, Ltd. 64,911 66
Singapore Post, Ltd. 66,000 31
Singapore Press Holdings, Ltd. 95,743 240
Singapore Technology Engineering, Ltd. 84,760 104
Singapore Telecommunications, Ltd. 379,618 506
United Overseas Bank, Ltd. 68,720 548
United Overseas Land, Ltd. 25,704 34
Venture Manufacturing, Ltd. 13,445 127
------------
3,629
------------
SPAIN (3.9%)
Abertis Infraestructuras 8,466 143
Acerinox SA 12,776 177
Actividades de Construccion y Servicios SA 17,568 293
Altadis SA 16,916 528
Amadeus Global Travel Distribution SA 15,263 97
Antena 3 Television SA* 818 43
Banco Bilbao Vizcaya-Argentari (g) 123,356 1,640
Banco Popular Espanol SA 6,918 372
Banco Santander Central Hispano SA (g) 172,706 1,641
Endesa SA 55,709 1,013
Gas Natural SDG SA (g) 32,444 748
General De Aguas De Barcelona SA 3,730 63
Grupo Ferrovial SA 3,589 156
Iberdrola SA (g) 54,070 1,105
Indra Sistemas SA 3,081 39
Industria de Diseno Textil SA 6,289 144
Repsol SA (g) 45,367 962
Telefonica SA 339,812 4,948
Union Electric Penosa SA 3,967 84
Vallehermoso SA 4,599 62
------------
14,258
------------
SWEDEN (2.2%)
Alfa Laval AB 700 11
Assa Abloy AB, Series B 14,650 174
Atlas Copco AB, Series A 3,764 135
Atlas Copco AB, Series B 1,000 33
Billerud 3,250 50
Electrolux AB, Series B 19,700 344
Eniro AB 7,200 56
Ericsson LM, Series B* (g) 623,737 1,666
Gambro AB, Series A 900 9
CONTINUED
89
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
SWEDEN, CONTINUED
Hennes & Mauritz AB, Series B 18,450 $ 475
Holmen AB 2,900 83
Modern Times Group MTG AB* 2,150 36
Nordic Baltic 124,322 846
Sandvik AB 9,188 316
Securitas AB, Series B 24,100 272
Shanska AB, Series B 36,117 311
Skandia Forsakrings AB 66,331 259
Skandiaviska Enskil 21,620 292
SKF AB, Series B 5,750 218
Svenska Cellulosa AB, Series B 10,000 370
Svenska Handelsbanken, Series A 34,902 650
Svenskt Stal AB, Series A 4,300 77
Swedish Match AB 18,900 185
Tele2 AB 3,475 138
Telia 98,526 439
Volvo AB, Series A 3,233 112
Volvo AB, Series B 8,310 298
WM-Data AB 7,800 15
------------
7,870
------------
SWITZERLAND (5.6%)
Abb, Ltd.* 43,065 232
Adecco SA, Registered 5,063 235
Ciba Specialty Chemicals AG 1,862 128
Clariant AG 3,977 54
Compagnie Finaciere Richemont AG 10,486 271
Credit Suisse Group* 48,146 1,543
Geberit AG 153 103
Givaudan 337 193
Holcim 4,808 251
Kudelski SA* 413 12
Logitech International SA* 1,587 69
Lonza Group AG 1,700 75
Nestle 12,215 3,119
Novartis AG, Registered 116,094 5,189
Roche Holdings AG, Genusscheine 34,787 3,436
Schindler Holding AG 305 86
Serono SA 373 231
Societe Generale de Surveillance
Holdings SA 236 127
Sulzer AG, Registered 147 38
Swiss Reinsurance 7,870 459
Swisscom AG 686 223
Syngenta* 3,102 256
The Swatch Group AG 653 17
The Swatch Group AG, Series B 807 103
UBS AG 46,728 3,123
Valora Holdings AG, Registered 56 12
Zurich Financial Services 4,547 643
------------
20,228
------------
THAILAND (0.9%)
Advanced Info Service Public Co., Ltd. 174,300 399
Bangkok Bank Public Co., Ltd.* 68,900 154
Bangkok Bank Public Co., Ltd.,
Foreign Registered Shares* 132,600 305
BEC World Public Co., Ltd. 175,200 104
Charoen Pokphand Foods Public Co., Ltd. 436,829 26
CONTINUED
SHARES VALUE
----------- ------------
FOREIGN STOCKS, CONTINUED
THAILAND, CONTINUED
Delta Electronics Public Co., Ltd. 62,000 $ 30
Electricty Generating Public Co., Ltd. 33,548 59
Hana Microelectronics Public Co., Ltd. 37,410 21
Kasikornbank Public Co., Ltd.* 145,900 165
Kasikornbank Public Co., Ltd., Foreign
Registered Shares* 131,457 151
Land and Houses Public Co., Ltd. 341,554 74
Land and Houses Public Co., Ltd.,
Foreign Registered Shares 255,315 60
National Finance Public Co., Ltd. 125,300 42
PTT Exploration and Production Public
Co., Ltd. 20,158 141
PTT Public Co., Ltd. 145,300 552
Sahaviriya Steel Industries Public Co., Ltd.* 82,600 60
Shin Corp. Public Co., Ltd. 225,900 204
Siam Cement Public Co., Ltd. 33,277 190
Siam Cement Public Co., Ltd., Foreign
Registered Shares 60,100 355
Siam City Cement Public Co., Ltd.,
Foreign Registered Shares 19,600 118
Siam Commercial Bank Public Co.,
Ltd., Foreign Registered Shares 98,300 107
TISCO Finance Public Co., Ltd. 52,800 33
TISCO Finance Public Co., Ltd.,
Foreign Registered Shares 22,400 12
------------
3,362
------------
TOTAL FOREIGN STOCKS 313,326
------------
PREFERRED STOCKS (0.6%)
AUSTRALIA (0.1%)
News Corp., Ltd. 37,048 318
------------
BRAZIL (0.4%)
Banco Bradesco SA 2,000 93
Banco Itau Holding Financeira SA 1,643,000 152
Brasil Telecom Participacoes SA 7,829,000 47
Caemi Mineracao e Metalurgica SA* 56,000 25
Companhia de Bebidas das Americas 709,000 147
Companhia Energetica de Minas Gerais 3,240,000 59
Companhia Siderurgica de Tubarao 478,000 17
Embratel Participacoes SA 6,994,000 18
Empresa Brasileira de Aeronautica SA 12,000 86
Gerdau SA 5,000 71
Klabin SA 20,000 29
Petroleo Brasileiro SA 19,000 487
Sadia SA 16,000 23
Tele Centro Oeste Celular Participacoes SA 8,218,000 25
Tele Norte Leste Participacoes SA 9,202,000 121
Telesp Celular Participacoes SA* 14,016,000 38
Votorantim Celulose e Papel SA 565,000 40
------------
1,478
------------
GERMANY (0.0%)
Volkswagen AG 1,041 29
------------
RUSSIA (0.1%)
Surgutneftegaz ADR 6,500 260
------------
CONTINUED
90
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
PREFERRED STOCKS, CONTINUED
THAILAND (0.0%)
Siam Commercial Bank Public Co., Ltd. 46,641 $ 52
------------
TOTAL PREFERRED STOCKS 2,137
------------
INVESTMENT COMPANIES (3.5%)
UNITED STATES (3.5%)
Excelsior Pacific Asia Fund 33 --#
Franklin Mutual European Fund 72,960 1,267
Invesco Gold and Precision Metals Fund 59 --#
iShares MSCI Emerging Markets Index
Fund (g) 5,300 825
iShares MSCI Germany Index Fund (g) 132,400 2,005
iShares MSCI Hong Kong Index Fund (g) 398,500 4,042
iShares MSCI Switzerland Index Fund (g) 20,800 303
Matthews China Fund 55,918 740
Matthews Pacific Tiger Fund 80,040 1,013
Oakmark International Fund 30,250 554
Oakmark International Small Cap Fund 54,067 943
Scudder Latin America Fund 14,934 359
T. Rowe Price Japan Fund* 15,453 120
Vanguard International Growth Fund 14,470 233
Vanguard International Value Fund 9,181 242
------------
TOTAL INVESTMENT COMPANIES 12,646
------------
REPURCHASE AGREEMENTS (4.9%)
UNITED STATES (4.9%)
UBS Investment Bank, 1.31%, 8/2/04
(Proceeds at maturity, $17,781,
Collateralized by a U.S. Treasury
security) $ 17,779 17,779
------------
TOTAL REPURCHASE AGREEMENTS 17,779
------------
SHORT TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (9.7%)
Pool of various securities for Fifth Third
Funds 34,935 34,935
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 34,935
------------
TOTAL INVESTMENTS (COST $411,323)+ - 105.3% 380,823
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.3)% (19,264)
------------
NET ASSETS - 100.0% $ 361,559
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER (13.0%)
IBM Corp., 1.29%, 8/17/04** (f) $ 7,940 $ 7,935
Metlife Funding Inc., 1.32%, 8/19/04** (f) 7,010 7,005
Royal Bank of Scotland, 1.25%, 8/12/04** (f) 13,670 13,662
Wells Fargo Bank, 1.27%, 8/12/04** (f) 11,196 11,192
------------
TOTAL COMMERCIAL PAPER 39,794
------------
CORPORATE BONDS (55.7%)
AIG Sunamerica Global Finance, 6.90%,
3/15/32 955 1,068
Alliant Master Trust, Series 2000-1A,
Class A, 1.81%, 6/20/06 (d)(e) 4,000 4,001
American Electric Power, 5.38%,
3/15/10 1,435 1,479
AOL Time Warner, Inc., 7.70%,
5/1/32 480 533
Bank of Montreal-Chicago, 7.80%,
4/1/07 2,750 3,036
Bear Stearns Asset Backed Securities,
Inc., Series 2004-HE3, Class 1A1, 1.62%,
5/25/31 (d) 4,689 4,689
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 3,257 3,522
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A4, 5.20%, 1/12/41 2,000 2,003
Capital One Master Trust, Series 01-7A,
Class A, 3.85%, 8/15/07 7,500 7,534
Chase Manhattan, 6.38%, 4/1/08 85 92
Citibank Credit Card Issuance Trust,
6.88%, 11/16/09 2,000 2,197
Citigroup, Inc., 6.50%, 2/7/06 175 184
Comcast Cable, 7.13%, 6/15/13 1,750 1,934
Countrywide Home Loans, Inc., 5.63%,
5/15/07 740 777
Cox Communications, Inc., 5.50%,
10/1/15 (g) 800 781
Credit Suisse First Boston Mortgage
Securites Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 1,374 1,397
Credit-Based Asset Servicing and
Securities, Series 2004-CB4, Class A3,
4.63%, 5/25/35 3,200 3,193
Devon Energy Corp., 7.95%, 4/15/32 700 820
Equity One ABS, Inc., Series 2004-1,
Class AF4, 4.15%, 4/25/34 (d) 4,000 3,890
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 2,541 2,547
Firstenergy Corp., 6.45%, 11/15/11 1,070 1,132
Fleet/Norstar Group, 8.63%, 1/15/07 2,000 2,246
Ford Motor Co., 7.45%, 7/16/31 1,420 1,350
France Telecom, 9.50%, 3/1/31 650 828
General Electric Capital Corp., 6.75%,
3/15/32 1,055 1,152
General Motors, 7.20%, 1/15/11 (g) 85 89
CONTINUED
91
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
General Motors Acceptance Corp.,
6.13%, 9/15/06 $ 3,000 $ 3,127
General Motors Acceptance Corp.,
6.88%, 9/15/11 2,175 2,233
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35 4,000 3,982
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 2,000 2,010
GS Mortgage Securities Corp. II, Series
2004-C1, Class A1, 3.66%, 10/10/28 5,187 5,087
GS Mortgage Securities Corp. II, Series
2004-GG2, Class A3, 4.60%, 8/10/38 4,900 4,925
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 467 466
Household Finance Corp., 6.50%,
11/15/08 170 185
Household Finance Corp., 7.00%,
5/15/12 1,250 1,393
Hydro-Quebec, 8.00%, 2/1/13 855 1,040
IBM Corp., 4.75%, 11/29/12 645 636
JP Morgan Chase Commercial 865 874
Mortgage, 5.26%, 7/12/37
Kimberly Clark Corp., 7.10%, 8/1/07 85 94
Kinder Morgan Energy Partners, 5.00%,
12/15/13 1,010 961
Lehman Brothers Holdings, 8.25%,
6/15/07 170 192
Lehman Brothers Holdings, 3.50%,
8/7/08 85 83
Liberty Media Corp., 5.70%, 5/15/13 925 910
MBNA Master Credit Card Trust,
7.80%, 10/15/12 5,000 5,865
Metris Master Trust, 3.12%, 7/21/08 (d)(e) 8,000 8,001
Midland Bank PLC, 7.63%, 6/15/06 2,000 2,185
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 3,300 3,366
Morgan Stanley Dean Witter & Co.,
5.30%, 3/1/13 1,890 1,883
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 5,200 5,104
Motorola, Inc., 6.50%, 11/15/28 (g) 805 799
National City Bank, 7.25%, 7/15/10 3,000 3,491
National Rural Utilities, 7.25%, 3/1/12 125 143
Navistar Financial Corp. Owner Trust,
1.73%, 2/15/07 425 422
Navistar Financial Corp. Owner Trust,
1.58%, 4/15/08 (d) 8,200 8,203
Navistar Financial Corp. Owner Trust,
Series 2004-A, Class B, 2.46%, 3/15/11 2,000 1,964
NCNB Corp., 10.20%, 7/15/15 5,000 6,799
Norfolk Southern, 9.00%, 3/1/21 130 166
Oncor Electric Delivery, 7.00%, 5/1/32 480 526
Pemex Master Trust, 6.13%, 8/15/08 825 854
Public Services Co. of Colorado, 7.88%,
10/1/12 910 1,084
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Republic New York Corp., 7.00%,
3/22/11 $ 2,000 $ 2,233
Residential Accredit Loans, Inc., 1.72%,
3/25/34 (d) 4,587 4,577
Residential Asset Securities Corp.,
1.69%, 3/25/34 (d) 2,000 2,000
Science Applications International Co.,
5.50%, 7/1/33 2,105 1,893
SLM Corp., 5.00%, 4/15/15 175 168
Sprint Capital Corp., 7.63%, 1/30/11 1,455 1,634
Swiss Bank Corp. - New York, 7.38%,
7/15/15 2,000 2,353
Trans-Canada Pipeline, 5.60%,
3/31/34 750 698
Travelers Property Casualty Corp.,
7.75%, 4/15/26 85 98
Truck Retail Installment Paper Corp.,
1.72%, 5/15/13 (d) 6,950 6,962
Union Planters Corp., 5.13%, 6/15/07 1,170 1,229
United Mexican States, 4.63%,
10/8/08 2,460 2,450
US Bank NA, 6.30%, 2/4/14 345 372
Valero Energy Corp., 7.50%, 4/15/32 750 847
Verizon Florida, Inc., 6.13%, 1/15/13 1,975 2,047
Wachovia Corp., 3.50%, 8/15/08 170 167
Wal-Mart Stores, 6.88%, 8/10/09 120 134
Washington Mutual, 4.24%, 6/25/34 2,391 2,412
Washington Mutual Bank, 4.10%,
9/25/33 5,862 5,790
Wisconsin Energy Corp., 5.50%,
12/1/08 765 806
------------
TOTAL CORPORATE BONDS 170,397
------------
MUNICIPAL BONDS (0.7%)
CALIFORNIA (0.7%)
San Bernardino County, Financing
Authority Pension Obligation Revenue,
6.99%, 8/1/10 2,000 2,240
------------
TOTAL MUNICIPAL BONDS 2,240
------------
U.S. GOVERNMENT AGENCIES (50.2%)
FANNIE MAE (33.2%)
4.00%, 9/2/08 (g) 1,085 1,086
6.05%, 12/1/08 2,925 3,129
4.38%, 3/15/13 350 338
4.25%, 10/25/16 6,758 6,818
6.00%, 2/1/17 177 185
6.00%, 5/1/17 421 439
6.00%, 6/1/17 260 272
6.00%, 6/1/17 335 350
6.50%, 6/1/17 488 516
6.50%, 8/1/17 428 453
5.50%, 12/1/17 7,498 7,719
5.50%, 1/1/18 216 222
5.50%, 1/1/18 21 21
CONTINUED
92
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
5.50%, 1/1/18 $ 1,131 $ 1,165
5.50%, 2/1/18 15 15
5.50%, 2/1/18 101 104
4.50%, 5/1/19 TBA 16,550 16,303
6.00%, 5/1/18 2,052 2,145
5.00%, 6/1/18 4,791 4,833
5.00%, 7/1/19 TBA 5,200 5,246
4.00%, 12/25/20 5,000 5,074
4.00%, 2/25/21 5,339 5,431
7.50%, 6/1/28 471 506
6.50%, 8/1/28 221 231
6.50%, 6/1/29 253 265
6.50%, 4/1/32 514 538
6.50%, 6/1/32 1,987 2,076
6.50%, 7/1/32 1,004 1,049
6.50%, 7/1/32 925 966
7.50%, 12/1/32 716 766
6.00%, 1/1/33 785 806
6.00%, 1/1/34 TBA 3,000 3,079
6.50%, 3/1/33 425 444
5.00%, 5/1/34 TBA 17,000 16,592
5.50%, 5/1/34 TBA 9,500 9,535
6.00%, 2/1/34 1,094 1,123
6.00%, 2/1/34 1,078 1,107
4.50%, 5/1/34 612 578
------------
101,525
------------
FEDERAL HOME LOAN BANK (0.1%)
5.75%, 5/15/12 200 213
4.50%, 9/16/13 50 48
------------
261
------------
FREDDIE MAC (14.2%)
2.13%, 11/15/05 (g) 5,500 5,479
4.50%, 7/15/13 (g) 2,035 1,977
5.50%, 1/1/18 79 82
6.50%, 1/1/29 3,204 3,356
6.00%, 12/15/34 TBA 7,000 7,183
6.75%, 3/15/31 2,900 3,295
6.50%, 7/1/32 663 693
6.25%, 7/15/32 (g) 3,500 3,757
6.50%, 9/1/32 295 309
6.50%, 1/20/33 2,313 2,419
5.50%, 2/1/34 TBA 13,900 13,960
6.00%, 9/1/33 1,062 1,090
------------
43,600
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (2.7%)
6.50%, 3/15/28 402 421
6.50%, 9/15/28 413 433
6.50%, 10/15/28 506 531
5.00%, 7/1/34 TBA 2,000 1,962
5.50%, 10/1/34 TBA 5,000 5,037
------------
8,384
------------
TOTAL U.S. GOVERNMENT AGENCIES 153,770
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. TREASURY OBLIGATIONS (2.5%)
U.S. TREASURY BONDS (2.5%)
5.45%, 5/15/17 $ 5,800 $ 3,005
8.00%, 11/15/21 (g) 3,260 4,323
6.13%, 8/15/29 85 95
5.38%, 2/15/31 (g) 220 225
------------
7,648
------------
TOTAL U.S. TREASURY OBLIGATIONS 7,648
------------
MONEY MARKETS (4.2%)
Dreyfus Cash Management Money
Market Fund 100 --#
Federated Prime Value Obligations
Money Market Fund 13,005,020 13,005
------------
TOTAL MONEY MARKETS 13,005
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (6.2%)
Pool of various securities for Fifth Third
Funds $ 18,961 18,961
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 18,961
------------
TOTAL INVESTMENTS (COST $401,311)+ - 132.5% 405,815
LIABILITIES IN EXCESS OF OTHER ASSETS - (32.5)% (99,615)
------------
NET ASSETS - 100.0% $ 306,200
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
93
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS (66.9%)
ABN AMRO Bank NV, 7.13%,
6/18/07 $ 7,300 $ 7,994
Alabama Power Co., 3.13%, 5/1/08 4,000 3,891
American Electric Power, 5.38%,
3/15/10 3,000 3,094
American Express Co., 3.00%, 5/16/08 2,400 2,322
Anadarko Petroleum Corp., 6.13%,
3/15/12 1,500 1,598
Anheuser-Busch Co., Inc., 4.70%,
4/15/12 1,500 1,487
AT & T Broadband Corp., 8.38%,
3/15/13 1,750 2,075
Bank of America Corp., 7.40%,
1/15/11 10,000 11,398
Bank of Montreal-Chicago, 7.80%,
4/1/07 6,000 6,624
BB&T Corp., 7.25%, 6/15/07 6,000 6,599
Bear Stearns Co., Inc., 5.70%, 1/15/07 3,000 3,161
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 2,776 3,002
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A3, 4.80%, 1/12/41 2,000 2,002
Bond Securitization Asset-Backed
Certificate, Series 2003-1, Class A1,
1.50%, 10/25/34 (d) 497 498
Capital One Bank, 4.25%, 12/1/08 1,500 1,486
Chase Funding Mortgage Loan
Asset-Backed, Series 2004-2, Class 1A3,
4.21%, 9/25/26 5,070 5,064
Chevron Phillips Chemical Co., 5.38%,
6/15/07 6,015 6,281
CIT Group, Inc., 1.33%, 6/19/06 (d) 5,000 5,010
CIT Group, Inc., 4.75%, 12/15/10 2,000 1,985
Citicorp Mortgage Securites, Inc., Series
2003-5, Class 2A2, 5.00%, 4/25/18 2,897 2,935
Citigroup, Inc., 5.00%, 3/6/07 3,500 3,638
Citigroup, Inc., 7.25%, 10/1/10 9,000 10,228
Commerce Group, Inc., 5.95%,
12/9/13 1,000 1,005
Commercial Mortgage Acceptance Corp.,
Series 1998-C2, Class A2, 6.03%,
9/15/30 5,000 5,302
Commercial Mortgage Pass-Through
Certificate, Series 2004-LB3A, Class A5,
5.28%, 7/10/37 3,530 3,572
Commercial Mortgage Pass-Through
Certificate, Series 2004-LB3AC, Class B,
5.28%, 7/10/37 2,500 2,512
Conoco Funding Co., 6.35%,
10/15/11 5,500 6,015
Countrywide Home Loan, 1.60%, 6/2/06 (d) 5,000 5,025
Countrywide Home Loan, 4.00%,
3/22/11 2,325 2,192
Cox Communications, Inc., 7.75%,
11/1/10 1,550 1,769
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Credit Suisse First Boston, 6.50%,
1/15/12 $ 5,000 $ 5,426
Credit Suisse First Boston Mortgage
Securites Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 1,220 1,240
Credit Suisse First Boston Mortgage
Securities Corp., Series 2003-17, Class
2A5, 2.30%, 6/25/18 7,213 7,015
Credit-Based Asset Servicing and
Securities, Series 2004-CB4, Class A3,
4.63%, 5/25/35 2,565 2,560
Credit-Based Asset Servicing and
Securities, Series 2004-CB4, Class A4,
5.50%, 5/25/35 2,600 2,595
DaimlerChrysler, 1.91%, 9/26/05 (d) 5,000 5,027
DaimlerChrysler Auto Trust, 6.85%,
11/6/05 1,438 1,439
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%,
1/25/34 1,500 1,465
Developers Diversified Realty, 3.88%,
1/30/09 1,000 966
Devon Financing Corp., 6.88%,
9/30/11 1,500 1,647
Duke Capital LLC, 4.37%, 3/1/09 2,000 1,979
Duke Energy Corp., 6.25%, 1/15/12 2,000 2,119
Fedex Corp., 7.25%, 2/15/11 2,000 2,260
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 3,176 3,184
Firstenergy Corp., 6.45%, 11/15/11 3,000 3,173
Fleet Financial Group, 7.38%, 12/1/09 5,000 5,671
FMR Corp., 4.75%, 3/1/13 (e) 3,500 3,414
Ford Motor Credit Co., 1.85%, 4/28/05 (d) 5,000 4,992
Ford Motor Credit Co., 5.80%, 1/12/09 (g) 3,250 3,307
Ford Motor Credit Co., 7.00%, 10/1/13 (g) 1,500 1,527
General Electric Capital Corp., 5.88%,
2/15/12 6,000 6,362
General Electric Corp., 5.00%, 2/1/13 5,000 4,991
General Motors, 7.13%, 7/15/13 (g) 750 770
General Motors Acceptance Corp.,
2.14%, 5/18/06 (g) (d) 5,000 5,012
General Motors Acceptance Corp.,
2.04%, 1/16/07 (d) 10,000 10,015
General Motors Acceptance Corp.,
7.25%, 3/2/11 1,750 1,841
General Motors Acceptance Corp.,
6.88%, 9/15/11 2,100 2,156
General Motors Acceptance Corp.,
7.00%, 2/1/12 1,500 1,541
General Motors Nova Financial, 6.85%,
10/15/08 4,100 4,306
Goldman Sachs Group, Inc., 6.60%,
1/15/12 2,750 2,990
Goldman Sachs Group, Inc., 5.25%,
4/1/13 (g) 4,000 3,956
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 2,500 2,513
CONTINUED
94
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
GTE California, Inc., 6.70%, 9/1/09 $ 3,000 $ 3,266
Guidant Corp., 6.15%, 2/15/06 2,250 2,357
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 2,646 2,645
Heller Financial, 6.85%, 5/15/31 5,000 5,508
HSBC Bank USA, 4.63%, 4/1/14 3,700 3,501
Hyundai Auto Receivables Trust,
3.02%, 10/15/10 2,000 1,976
International Lease Finance Corp.,
3.13%, 5/3/07 3,700 3,656
International Paper Co., 5.50%,
1/15/14 1,500 1,489
JP Morgan Chase & Co., 6.75%,
2/1/11 3,000 3,304
JP Morgan Chase Commercial
Mortgage, 5.23%, 7/12/37 5,000 5,053
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2004-C1, Class
A1, 3.05%, 1/15/38 4,878 4,781
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2004-C2, Class
A3, 5.22%, 5/15/41 3,625 3,647
JP Morgan Chase Commercial
Mortgage, Series 2001-CIB3, Class A1,
4.47%, 11/15/35 2,763 2,810
Key Bank N.A., 5.80%, 7/1/14 1,000 1,023
Kinder Morgan Energy Partners, 5.00%,
12/15/13 1,500 1,427
Korea Development Bank, 3.88%,
3/2/09 2,500 2,422
Korea Electric Power, 4.25%, 9/12/07 1,000 1,004
Kraft Foods, Inc., 5.25%, 6/1/07 (g) 2,000 2,086
Kroger Co., 5.50%, 2/1/13 (g) 1,425 1,436
Lehman Brothers Holdings, 8.25%,
6/15/07 7,000 7,887
Lehman Brothers TRAINS, 6.50%,
8/15/08 (d) (e) 15,120 16,022
Liberty Media Corp., 2.61%, 9/17/06 (d) 5,000 5,076
MBNA Master Credit Card Trust,
7.80%, 10/15/12 3,000 3,519
Mellon Financial Corp., 7.38%,
5/15/07 5,000 5,494
Merrill Lynch & Co., 5.36%, 2/1/07 2,000 2,107
Merrill Lynch & Co., 5.45%, 7/15/14 1,500 1,497
Monsanto Co., 7.38%, 8/15/12 1,000 1,141
Morgan Stanley, 1.58%, 1/31/06 (d) 10,000 10,051
Morgan Stanley, 4.75%, 4/1/14 3,000 2,802
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 3,000 3,060
National City Bank, 6.25%, 3/15/11 5,000 5,500
Nationslink Funding Corp., Series
1998-2, Class A2, 6.48%, 8/20/30 7,900 8,555
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4, 3.25%,
10/15/10 5,000 4,911
NCNB Corp., 9.38%, 9/15/09 5,000 6,121
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Nisource Finance Corp., 3.20%,
11/1/06 $ 1,000 $ 992
Pepco Holdings, Inc., 1.92%, 11/15/04 (d) 5,000 5,001
Pepco Holdings, Inc., 6.45%, 8/15/12 1,000 1,051
PHH Corp., 7.13%, 3/1/13 1,000 1,120
PNC Funding Corp., 6.13%, 2/15/09 8,000 8,574
PPG Industries Inc., 6.50%, 11/1/07 2,000 2,168
PPL Electric Utilities, 5.88%, 8/15/07 2,000 2,120
Private Export Funding, 7.65%,
5/15/06 7,500 8,123
Prudential Securities Secured Financing,
6.48%, 11/1/31 7,000 7,587
PSEG Power, 5.00%, 4/1/14 1,500 1,417
Public Service Co. of Colorado, 4.38%,
10/1/08 3,500 3,531
Residential Accredit Loans, Inc., Series
2002-QS19, Class A8, 6.00%, 12/25/32 2,978 3,044
Residential Asset Securities Corp.,
Series 2002-KS8, Class A3, 3.69%,
3/25/27 1,400 1,406
Residential Asset Securities Corp.,
Series 2003-KS5, Class AI3, 2.28%,
7/25/28 2,500 2,432
Residential Funding Mortgage
Securities, Inc., Series 2002-S16, Class
A10, 5.50%, 10/25/17 5,560 5,649
Salomon Smith Barney, 7.13%,
10/1/06 5,000 5,419
Sempra Energy, 1.74%, 5/21/08 (d) 5,000 4,995
SLM Corp., 1.29%, 1/25/07 (d) 5,000 5,002
SLM Corp., 5.38%, 5/15/14 1,000 997
Sprint Capital Corp., 7.63%, 1/30/11 1,500 1,684
State Street Institutional, 7.94%,
12/30/26 1,000 1,101
Tampa Electric, 5.38%, 8/15/07 2,000 2,076
U.S. Bank, N.A., 3.75%, 2/6/09 3,000 2,957
Union Planters Corp., 5.13%, 6/15/07 2,000 2,101
Union Planters Corp., 4.38%, 12/1/10 1,000 978
Valero Energy Corp., 6.88%, 4/15/12 (g) 2,500 2,747
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%, 5/7/27 2,555 2,662
Verizon Florida, Inc., 6.13%, 1/15/13 4,000 4,147
Viacom, Inc., 7.75%, 6/1/05 5,000 5,221
Wachovia Bank Commercial Mortgage
Trust, 3.96%, 12/15/35 5,000 4,948
Washington Mutual Bank, 8.25%,
4/1/10 7,000 8,191
Wells Fargo & Co., 6.38%, 8/1/11 6,000 6,537
Weyerhaeuser Co., 6.75%, 3/15/12 (g) 1,500 1,640
------------
TOTAL CORPORATE BONDS 481,975
------------
U.S. GOVERNMENT AGENCIES (23.5%)
FANNIE MAE (6.2%)
2.00%, 1/15/06 (g) 6,500 6,447
5.50%, 5/2/06 (g) 5,000 5,225
2.13%, 10/5/06 2,500 2,455
CONTINUED
95
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
4.75%, 1/2/07 (g) $ 4,375 $ 4,526
2.34%, 1/30/07 10,000 9,809
5.25%, 8/1/12 1,000 1,013
5.13%, 1/2/14 (g) 15,000 14,799
------------
44,274
------------
FEDERAL HOME LOAN BANK (2.5%)
2.50%, 3/15/06 (g) 5,500 5,486
3.88%, 8/22/08 3,900 3,880
3.00%, 4/15/09 (g) 9,000 8,589
------------
17,955
------------
FREDDIE MAC (12.3%)
8.12%, 1/31/05 (g) 5,410 5,572
5.25%, 1/15/06 (g) 4,000 4,150
7.22%, 6/14/06 3,000 3,241
2.60%, 11/21/06 5,000 4,947
2.85%, 2/23/07 (g) 15,000 14,863
2.40%, 3/29/07 (g) 2,500 2,446
2.88%, 5/15/07 (g) 6,000 5,929
4.00%, 10/29/07 (g) 5,000 5,013
3.88%, 11/10/08 (g) 10,000 9,977
3.88%, 1/12/09 (g) 8,000 7,915
4.25%, 5/4/09 (g) 6,000 5,985
4.00%, 8/10/09 (g) 10,000 9,939
6.25%, 3/5/12 (g) 8,500 8,946
------------
88,923
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (2.5%)
9.50%, 12/15/09 2,500 2,729
4.02%, 12/16/21 4,987 4,979
3.27%, 1/16/23 4,961 4,845
5.25%, 9/16/27 2,675 2,668
4.45%, 8/16/32 2,500 2,410
------------
17,631
------------
TOTAL U.S. GOVERNMENT AGENCIES 168,783
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. TREASURY OBLIGATIONS (8.3%)
U.S. TREASURY INFLATION PROTECTED BONDS (1.0%)
2.00%, 1/15/14 (g) $ 7,164 $ 7,182
U.S. TREASURY NOTES (7.3%)
6.88%, 5/15/06 (g) 15,365 16,511
2.25%, 2/15/07 (g) 18,935 18,627
4.38%, 5/15/07 (g) 10,000 10,358
3.13%, 9/15/08 (g) 3,900 3,848
4.75%, 5/15/14 (g) 3,000 3,064
------------
52,408
------------
TOTAL U.S. TREASURY OBLIGATIONS 59,590
------------
MONEY MARKETS (0.4%)
Dreyfus Cash Management Money
Market Fund 100 --#
Federated Prime Value Obligations
Money Market Fund 2,996,107 2,996
------------
TOTAL MONEY MARKETS 2,996
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (27.5%)
Pool of various securities for Fifth Third
Funds $ 197,705 197,705
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 197,705
------------
TOTAL INVESTMENTS (COST $904,619)+ - 126.6% 911,049
LIABILITIES IN EXCESS OF OTHER ASSETS - (26.6)% (191,603)
------------
NET ASSETS - 100.0% $ 719,446
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
96
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS (49.5%)
Abbey National PLC, 6.69%, 10/17/05 $ 4,460 $ 4,665
ABN AMRO, 7.55%, 6/28/06 4,460 4,826
AEP Texas Central Co., 3.00%,
2/15/05 1,790 1,798
Aesop Funding II LLC, 2.75%, 7/20/07 (e) 4,460 4,439
Alabama Power Co., 2.80%, 12/1/06 1,650 1,634
Alcoa, Inc., 4.25%, 8/15/07 1,800 1,835
American International Group, 2.85%,
12/1/05 4,460 4,458
Australian Gas Light Co., 6.40%,
4/15/08 4,500 4,861
Banc of America Commercial Mortgage,
Inc., Series 2004-1, Class A1, 3.16%,
11/10/39 4,355 4,260
Bank of New York, 2.20%, 5/12/06 8,460 8,344
Bank One Issuance Trust, Series
2004-A1, Class A1, 3.45%, 10/17/11 900 877
Basell America Finance, 7.60%,
3/15/07 900 971
Bayerische Landesbank, 6.38%,
10/15/05 8,910 9,329
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 4,201 4,543
Bear, Stearns Co., Inc., Series
2003-AC7, Class A2, 5.25%, 1/25/34 3,629 3,704
BMW Vehicle Owner Trust, 1.94%,
2/25/07 4,460 4,452
BP Capital Markets PLC, 4.63%,
5/27/05 3,570 3,635
Capital One Auto Finance Trust, 3.44%,
6/15/09 4,460 4,493
Caterpillar Financial Asset Trust,
3.15%, 2/25/08 2,155 2,167
Chase Credit Card Master Trust, 6.66%,
1/15/07 4,460 4,485
CIT Group, Inc., 2.10%, 7/29/05 (d) 4,460 4,476
CIT Group, Inc., 7.63%, 8/16/05 2,230 2,344
Citibank Credit Card Issuance Trust,
4.40%, 5/15/07 4,460 4,536
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 4,010 3,916
Comcast Cable Communication, 6.38%,
1/30/06 980 1,025
Compaq Computer, 7.65%, 8/1/05 4,500 4,725
Cooper Cameron Corp., 2.65%,
4/15/07 1,075 1,047
Countrywide Financial, 3.50%,
12/19/05 4,460 4,501
Credit Suisse First Boston Mortgage
Securites Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 3,092 3,144
Credit Suisse First Boston, Inc., 7.75%,
5/15/06 (e) 4,460 4,764
Credit-Based Asset Servicing and
Securities, Series 2004-CB4, Class A3,
4.63%, 5/25/35 4,500 4,490
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Daimler Chrysler Auto Trust, 2.93%,
6/6/06 $ 1,642 $ 1,647
DaimlerChrysler NA Holdings, 6.40%,
5/15/06 2,140 2,254
DLJ Commercial Mortgage Corp., Series
1999-CG1, Class A1A, 6.08%, 3/10/32 3,210 3,366
Duke Energy Field Services, Inc.,
7.50%, 8/16/05 2,360 2,472
First Union Corp., 7.70%, 2/15/05 (g) 4,460 4,593
FleetBoston Financial Corp., 7.25%,
9/15/05 4,460 4,688
Ford Credit Auto Owner Trust, 3.38%,
12/15/05, Series 2002-C, Class A3 3,008 3,020
Ford Motor Credit Co., 6.88%, 2/1/06 4,500 4,721
FPL Group Capital, Inc., 1.88%,
3/30/05 2,410 2,405
General Motors Acceptance Corp.,
2.88%, 10/20/05 (d) 2,250 2,265
General Motors Acceptance Corp.,
6.75%, 1/15/06 2,230 2,335
General Motors Acceptance Corp.,
6.13%, 2/1/07 1,525 1,596
Goldman Sachs Group, Inc., 1.83%,
10/27/06 (d) 2,680 2,685
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A2,
3.84%, 6/10/36 1,800 1,801
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 3,031 3,030
Hertz Corp., 4.70%, 10/2/06 1,340 1,361
Household Automotive Trust, Series
2002-3, Class A4A, 3.44%, 5/18/09 4,500 4,513
HSBC USA, Inc., 7.00%, 11/1/06 4,464 4,842
International Lease Finance Corp.,
3.13%, 5/3/07 4,500 4,446
John Deere Owner Trust, Series 2004-A,
Class A3, 2.32%, 12/17/07 2,400 2,390
Kerr-McGee Corp., 5.38%, 4/15/05 2,230 2,273
Korea Electric Power, 4.25%, 9/12/07 900 904
LB-UBS Commercial Mortgage Trust,
Series 2002-C2, Class A1, 3.83%,
6/15/26 6,400 6,479
MBNA America Bank NA, 6.50%,
6/20/06 1,100 1,163
Merrill Lynch & Co., 1.73%, 9/18/06 (d) 6,500 6,507
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-A1, Class 2A, 4.53%,
12/25/32 1,675 1,687
Morgan Stanley Dean Witter, 8.33%,
1/15/07 (g) 4,460 4,953
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4, 3.25%,
10/15/10 4,460 4,381
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class B, 3.79%,
10/15/10 1,894 1,877
Pemex Finance, Ltd., 9.69%, 8/15/09 900 1,024
CONTINUED
97
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
Protective Life US Funding, 3.70%,
11/24/08 $ 2,230 $ 2,204
Safeway, Inc., 2.50%, 11/1/05 2,500 2,490
Sempra Energy, 6.95%, 12/1/05 875 918
Societe Generale - New York, 7.40%,
6/1/06 2,940 3,163
Society National Bank, 7.25%, 6/1/05 4,460 4,632
Sprint Capital Corp., 7.13%, 1/30/06 900 952
St. Paul Companies, Inc., 7.88%,
4/15/05 4,460 4,624
Synovus Financial, 7.25%, 12/15/05 4,418 4,686
Time Warner, Inc., 6.13%, 4/15/06 1,675 1,755
Valero Energy Corp., 3.50%, 4/1/09 900 861
Volkswagen Auto Loan Enhanced Trust,
1.49%, 5/21/07 7,130 7,064
Volkswagon Auto Lease Trust, 2.75%,
12/20/07 3,570 3,585
Washington Mutual Bank, 4.82%,
10/25/32 2,034 2,053
Washington Mutual Bank, Series
2003-AR10, Class A4, 4.08%, 10/25/33 4,500 4,488
Westdeutsche Landesbank, 6.75%,
6/15/05 4,460 4,633
Weyerhaeuser Co., 5.50%, 3/15/05 317 323
------------
TOTAL CORPORATE BONDS 258,853
------------
FOREIGN BONDS (0.6%)
British Telecom PLC, 7.63%,
12/15/05 915 976
Deutsche Telekom International Finance,
8.25%, 6/15/05 1,250 1,311
Telecom Italia Capital, 4.00%, 11/15/08 (g) 900 889
------------
TOTAL FOREIGN BONDS 3,176
------------
MUNICIPAL BONDS (0.2%)
OHIO (0.2%)
Ohio State Economic Development
Revenue, Ohio Enterprise, Series 3,
4.05%, 3/1/11 (e) 1,250 1,203
------------
TOTAL MUNICIPAL BONDS 1,203
------------
U.S. GOVERNMENT AGENCIES (37.5%)
FANNIE MAE (5.4%)
2.88%, 10/15/05 (g) 15,910 16,008
3.13%, 7/15/06 6,750 6,783
2.63%, 11/15/06 5,500 5,452
------------
28,243
------------
FEDERAL HOME LOAN BANK (8.7%)
1.65%, 1/27/06 (d) 5,000 5,000
5.13%, 3/6/06 (g) 9,000 9,336
2.25%, 5/15/06 (g) 7,500 7,430
1.88%, 6/15/06 (g) 11,140 10,958
2.38%, 10/2/06 (g) 6,240 6,151
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK, CONTINUED
2.25%, 7/25/08 $ 6,838 $ 6,503
------------
45,378
------------
FREDDIE MAC (19.5%)
4.25%, 6/15/05 (g) 8,910 9,063
1.50%, 8/15/05 (g) 11,460 11,362
2.88%, 9/15/05 (g) 14,000 14,074
2.13%, 11/15/05 (g) 10,000 9,963
5.25%, 1/15/06 (g) 9,250 9,597
5.00%, 2/1/07 1,234 1,258
2.85%, 2/23/07 (g) 9,000 8,917
2.40%, 3/29/07 (g) 9,000 8,804
2.88%, 5/15/07 (g) 9,000 8,894
4.50%, 12/15/07 2,640 2,647
3.50%, 12/15/10 8,488 8,549
4.00%, 11/15/15 8,910 8,998
------------
102,126
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (3.9%)
2.87%, 2/16/20 8,497 8,272
3.27%, 1/16/23 3,671 3,585
4.50%, 11/16/24 4,460 4,521
4.50%, 3/20/33 4,018 4,074
------------
20,452
------------
TOTAL U.S. GOVERNMENT AGENCIES 196,199
------------
U.S. TREASURY OBLIGATIONS (10.2%)
U.S. TREASURY NOTES (10.2%)
1.88%, 1/31/06 (g) 7,000 6,945
2.00%, 5/15/06 (g) 10,000 9,903
2.75%, 6/30/06 7,200 7,214
2.38%, 8/15/06 (g) 8,750 8,694
2.25%, 2/15/07 (g) 10,000 9,837
3.13%, 5/15/07 (g) 11,000 11,042
------------
53,635
------------
TOTAL U.S. TREASURY OBLIGATIONS 53,635
------------
MONEY MARKETS (1.4%)
Dreyfus Cash Management Money
Market Fund 100 --#
Federated Prime Value Obligations
Money Market Fund 7,446,102 7,446
------------
TOTAL MONEY MARKETS 7,446
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (36.4%)
Pool of various securities for Fifth Third
Funds $ 190,915 190,915
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 190,915
------------
TOTAL INVESTMENTS (COST $713,928)+ - 135.8% 711,427
LIABILITIES IN EXCESS OF OTHER ASSETS - (35.8)% (187,368)
------------
NET ASSETS - 100.0% $ 524,059
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
98
U.S. GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES (61.6%)
FANNIE MAE (31.1%)
2.00%, 1/15/06 $ 2,700 $ 2,678
5.25%, 6/15/06 1,500 1,566
4.00%, 9/2/08 1,000 1,001
6.38%, 6/15/09 1,100 1,211
6.63%, 9/15/09 3,830 4,266
6.63%, 11/15/10 4,850 5,427
4.25%, 10/25/16 1,352 1,364
5.00%, 7/1/19 TBA 4,000 4,036
4.00%, 12/25/20 3,000 3,044
------------
24,593
------------
FEDERAL FARM CREDIT BANK (1.3%)
6.60%, 7/7/06 1,000 1,069
------------
FEDERAL HOME LOAN BANK (18.0%)
1.21%, 8/17/04** 4,045 4,043
1.65%, 1/27/06 5,000 5,000
2.50%, 3/15/06 3,150 3,142
6.09%, 6/2/06 1,500 1,585
4.50%, 9/16/13 500 483
------------
14,253
------------
FREDDIE MAC (10.0%)
5.25%, 1/15/06 3,075 3,191
2.75%, 3/15/08 1,450 1,403
6.63%, 9/15/09 3,000 3,340
------------
7,934
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.2%)
3.27%, 1/16/23 992 969
------------
TOTAL U.S. GOVERNMENT AGENCIES 48,818
------------
U.S. TREASURY OBLIGATIONS (37.6%)
U.S. TREASURY NOTES (37.6%)
1.63%, 3/31/05 1,000 999
1.50%, 7/31/05 1,975 1,964
6.50%, 8/15/05 500 522
1.63%, 10/31/05 2,800 2,779
2.00%, 5/15/06 4,175 4,135
4.38%, 5/15/07 1,685 1,745
5.50%, 2/15/08 800 859
5.63%, 5/15/08 3,305 3,568
3.13%, 10/15/08 3,000 2,956
5.75%, 8/15/10 500 548
5.00%, 8/15/11 2,000 2,105
4.38%, 8/15/12 2,300 2,313
3.88%, 2/15/13 2,000 1,933
4.25%, 8/15/13 500 493
4.00%, 2/15/14 800 771
4.75%, 5/15/14 2,000 2,043
------------
29,733
------------
TOTAL U.S. TREASURY OBLIGATIONS 29,733
------------
CONTINUED
SHARES VALUE
----------- ------------
MONEY MARKETS (5.0%)
Dreyfus Govt Cash Management Money
Market Fund 601,700 $ 602
Federated Government Obligations
Money Market Fund 3,383,559 3,383
------------
TOTAL MONEY MARKETS 3,985
------------
TOTAL INVESTMENTS (COST $82,159)+ - 104.2% 82,536
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.2)% (3,315)
------------
NET ASSETS - 100.0% $ 79,221
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
99
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (98.5%)
ARIZONA (1.9%)
Greater Arizona Development Authority,
6.00%, 8/1/13, (Callable 8/1/08 @ 102) $ 1,070 $ 1,202
------------
CALIFORNIA (10.2%)
Cal Poly Pomona Foundation, Inc.,
5.50%, 2/1/20, (Callable 2/1/11 @ 101) 265 289
Desert Sands University School District,
GO, 5.25%, 6/1/20 1,000 1,068
LA Canada University School District,
Series A, GO, 5.50%, 8/1/24 1,000 1,065
Placentia-Yorba Linda Union School
District, Series B, GO, 5.38%, 8/1/22 1,000 1,065
Sacramento County Sanitation Financing
Authority, 6.00%, 12/1/15, (Callable
12/1/10 @ 101) 250 281
San Francisco City and County Airport,
(AMT), 5.35%, 5/1/10, (Callable 5/1/06
@ 102) 2,445 2,610
------------
6,378
------------
COLORADO (9.5%)
Boulder Sales and Use Tax, Series A,
6.00%, 12/15/18, (Callable 12/15/09
@ 101) 2,265 2,585
Denver City & County Airport Revenue,
5.00%, 11/15/08 1,020 1,103
Douglas County School District No.1,
GO, 5.75%, 12/15/21 1,000 1,118
E-470 Public Highway Authority
Revenue, Series C, 6.00%, 9/1/07 1,000 1,104
------------
5,910
------------
FLORIDA (6.1%)
Board of Education, Series D, 5.75%,
6/1/19, (Callable 6/1/10 @ 101) 2,000 2,226
Tampa Utility Tax & Special Revenue,
5.25%, 10/1/20 1,505 1,612
------------
3,838
------------
GEORGIA (4.7%)
State GO, 5.80%, 11/1/16, (Callable
11/1/09 @ 102) 2,610 2,962
------------
ILLINOIS (10.2%)
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) 375 376
Development Finance Authority, 6.38%,
1/1/17, (Callable 1/1/11 @ 100) 1,700 1,960
Development Finance Authority, 6.38%,
1/1/18, (Callable 1/1/11 @ 100) 1,700 1,965
State GO, 5.88%, 10/1/17, (Callable
1/1/09 @ 100) 300 335
State Sales Tax Revenue, 5.00%,
6/15/08 1,000 1,078
------------
6,343
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
IOWA (3.9%)
Finance Authority, Private College
Revenue, Drake University Project,
6.50%, 12/1/11 $ 2,055 $ 2,442
------------
MICHIGAN (8.2%)
Frankenmuth School District, 5.75%,
5/1/20, (Callable 5/1/10 @ 100) 650 716
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.75%, 3/1/09 1,000 1,064
Kent Spectrum Health, Series A, 5.50%,
1/15/13 2,125 2,269
Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13, (Callable 9/1/08
@ 102) 1,000 1,060
------------
5,109
------------
MINNESOTA (5.6%)
Becker Independent School District No.
726, 6.00%, 2/1/21, (Callable 2/1/10 @
100) 1,000 1,125
Rochester Independent School District
No. 535, 5.88%, 2/1/20, (Callable 2/1/10
@ 100) 2,150 2,396
------------
3,521
------------
MISSOURI (7.1%)
Greene County School District, 6.20%,
3/1/18, (Callable 3/1/10 @ 100) 2,400 2,714
State Health & Educational Facilities
Authority, Missouri Valley College,
1.15%, 10/1/31 1,700 1,700
------------
4,414
------------
NEBRASKA (2.7%)
Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,660
------------
NEW YORK (6.5%)
Environmental Facilities Corp. Solid
Waste Disposition Revenue, Series A,
2.90%, 5/1/12 (d) 500 498
New York City Transitional Financial
Authority, 5.75%, 11/15/16, (Callable
5/15/10 @ 101) 2,200 2,446
Thruway Authority, Series 1997 B,
6.00%, 4/1/07 1,000 1,086
------------
4,030
------------
OHIO (1.7%)
Plain Local School District, GO, 5.25%,
12/1/19 1,000 1,068
------------
OKLAHOMA (1.7%)
Tulsa International Airport (AMT),
5.50%, 6/1/10 1,000 1,081
------------
OREGON (1.7%)
Sunrise Water Authority Revenue,
5.25%, 3/1/24 1,000 1,047
------------
CONTINUED
100
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
PENNSYLVANIA (3.6%)
GO, 6.00%, 1/15/19, (Callable 1/15/10
@ 101) $ 2,000 $ 2,265
------------
PUERTO RICO (1.7%)
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23 1,000 1,057
------------
TENNESSEE (2.0%)
Housing Development Agency,
Mortgage Finance, Series C, (AMT),
5.95%, 7/1/09, (Callable 7/1/05 @ 102) 1,225 1,267
------------
TEXAS (9.5%)
Clint Independent School District,
6.00%, 2/15/15, (Callable 2/15/11 @ 100) 1,615 1,829
Dallas-Fort Worth International Airport,
6.00%, 11/1/28, (Callable 11/1/09 @ 100) 3,000 3,187
Travis County GO, 5.75%, 3/1/17,
(Callable 3/1/10 @100) 815 901
------------
5,917
------------
TOTAL MUNICIPAL BONDS 61,511
------------
MONEY MARKETS (0.4%)
AIM Tax Free Money Market Fund 319 --#
Dreyfus Tax Exempt Money Market
Fund 203,767 204
Federated Tax Exempt Money Market
Fund 19,256 19
Merrill Lynch Institutional Tax Exempt
Fund 5,056 5
------------
TOTAL MONEY MARKETS 228
------------
TOTAL INVESTMENTS (COST $57,117)+ - 98.9% 61,739
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.1% 685
------------
NET ASSETS - 100.0% $ 62,424
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (99.8%)
ALABAMA (2.1%)
Mobile County, Refunding &
Improvements Warrants, 5.25%, 8/1/17 $ 3,080 $ 3,369
Public School & College Authority
Revenue, 5.25%, 8/1/06 2,050 2,177
------------
5,546
------------
ALASKA (0.3%)
State Housing Finance Corp., Housing
Development, Series A (AMT), 2.35%,
12/1/07 745 733
------------
ARIZONA (12.6%)
Glendale Water & Sewer Revenue,
5.00%, 7/1/06 1,290 1,362
Glendale Water & Sewer Revenue,
5.00%, 7/1/07 1,040 1,113
Highway Transportation Board Revenue,
Series A, 5.00%, 7/1/10 4,680 5,123
Mesa Street & Highway Revenue,
6.25%, 7/1/12 1,000 1,177
Mesa Street & Highway Revenue,
6.25%, 7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,177
Mesa Street & Highway Revenue,
5.00%, 7/1/14, (Prerefunded 7/1/11 @ 100) 1,000 1,101
Mesa Utility System Revenue, 5.00%,
7/1/13, (Prerefunded 7/1/09 @ 100) 3,250 3,550
Phoenix Civic Improvement Corp.
Excise Tax Revenue, 5.00%, 7/1/11 1,405 1,534
Phoenix Civic Improvement Corp.
Excise Tax Revenue, 5.00%, 7/1/22 1,000 1,033
Pima County Community College
District Revenue, 5.00%, 7/1/05 1,370 1,414
Pima County Community College
District Revenue, 5.00%, 7/1/07 670 717
Pima County University School District,
No. 012 Sunnyside, GO, 5.75%, 7/1/12,
(Prerefunded 7/1/09 @ 100) 1,050 1,182
Pima County, Improvement, GO,
5.00%, 7/1/06 2,000 2,111
Salt River Project, Agriculture
Improvement & Power District, Electric
Systems Revenue, Series A, 5.63%,
1/1/06 2,685 2,824
Salt River Project, Agriculture
Improvement & Power District, Electric
Systems Revenue, Series A, ETM,
5.63%, 1/1/06 2,315 2,436
Tempe Performing Arts Center, Excise
Tax Revenue, 5.25%, 7/1/17 2,420 2,633
Tucson Street & Highway, User
Revenue, Junior Lien, Series 1994-E,
6.75%, 7/1/13 2,000 2,441
------------
32,928
------------
CALIFORNIA (4.2%)
Desert Sands Unified School District,
Election 2001, GO, 5.25%, 6/1/20 1,000 1,068
CONTINUED
101
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
La Canada Unified School District,
Election 2004, Series A, GO, 5.38%,
8/1/21 $ 1,400 $ 1,500
La Canada Unified School District,
Election 2004, Series A, GO, 5.50%,
8/1/24 375 399
Orange County, Series A, Refunding
Recovery, 6.00%, 6/1/10 3,000 3,443
Placentia-Yorba Linda Unified School
District, 2002 Election, Series B, GO,
5.38%, 8/1/22 775 826
State Economic Recovery, Series A,
5.00%, 7/1/07 3,500 3,767
------------
11,003
------------
COLORADO (7.2%)
Denver City & County Airport Revenue,
Series A, (AMT), 5.25%, 11/15/06 2,500 2,658
Denver City & County Airport Revenue,
Series B, (AMT), 5.50%, 11/15/07 1,000 1,081
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/06 1,000 1,065
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/07 2,655 2,865
Douglas County School District No.1,
GO, 5.75%, 12/15/21 1,500 1,677
El Paso County School District No.
038, GO, 6.38%, 12/1/16, (Prerefunded
12/1/10 @ 100) 1,150 1,350
El Paso County School District No.
038, GO, 6.38%, 12/1/18, (Prerefunded
12/1/10 @ 100) 1,005 1,180
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 2,229
Larmier County School District No. R1,
GO, 5.75%, 12/15/16 1,800 2,055
Regional Transportation District, 2.30%,
12/1/22 1,000 985
Summitt County School District No.
RE1, GO, 5.75%, 12/1/12, (Callable
12/1/11 @ 100) 1,465 1,662
------------
18,812
------------
CONNECTICUT (0.6%)
New Haven, Series B, GO, 5.75%,
11/1/09 1,500 1,690
------------
DISTRICT OF COLUMBIA (0.4%)
Metropolitan Airport Authority System,
Refunding, Series C (AMT), 5.00%,
10/1/06 1,000 1,053
------------
FLORIDA (0.8%)
Lakeland Electric & Water Revenue,
ETM, 5.90%, 10/1/07 2,000 2,215
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
HAWAII (1.3%)
Airport Systems Revenue, Series B
(AMT), 8.00%, 7/1/10 $ 2,000 $ 2,431
Highway Revenue, 5.50%, 7/1/10 765 854
------------
3,285
------------
ILLINOIS (3.5%)
Chicago Metropolitan Water
Reclamation District, Capital
Improvement, ETM, GO, 5.50%,
12/1/10 3,000 3,374
Chicago Metropolitan Water
Reclamation District, Series B, GO,
5.00%, 12/1/05 1,000 1,042
Development Financial Authority
Revenue, Depaul University, Series C,
5.00%, 10/1/06 125 132
Development Financial Authority
Revenue, Depaul University, Series C,
5.00%, 10/1/07 200 213
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/15, (Callable 1/1/11 @ 100) 1,300 1,516
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/16, (Callable 1/1/11 @ 100) 1,470 1,702
State, GO, 5.25%, 2/1/09 1,000 1,091
------------
9,070
------------
INDIANA (3.2%)
Michigan City Independent School
Building Corp., 5.00%, 7/5/09 1,400 1,519
Municipal Power Supply Agency
System Revenue, Series B, 5.88%,
1/1/10 2,000 2,245
Municipal Power Supply Agency
System Revenue, Series B, 6.00%,
1/1/13 3,000 3,452
Tippecanoe County Independent
Elementary School Building Corp.,
5.10%, 7/15/06 1,000 1,057
------------
8,273
------------
IOWA (0.1%)
Iowa State University, Science &
Technology Reveue, 3.75%, 7/1/10 140 143
------------
KANSAS (0.0%)
Leawood, Series A, GO, 3.00%,
9/1/12 115 108
------------
KENTUCKY (0.9%)
Turnpike Authority Economic
Development Revenue, Revitalization
Project, Series A, 5.50%, 7/1/10 2,000 2,235
------------
MAINE (0.8%)
Housing Authority Management
Provider, Series F-2 (AMT), 2.55%,
11/15/05 2,190 2,199
------------
CONTINUED
102
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN (19.1%)
Battle Creek Downtown Development
Authority, 6.00%, 5/1/07 $ 2,215 $ 2,421
Building Authority Revenue, Police
Communications, 5.50%, 10/1/12 350 398
Comprehensive Transportation, 5.50%,
5/15/11 950 1,068
Detroit, GO, (AMT), 5.50%, 4/1/08 1,195 1,300
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%,
10/1/08 565 623
Grand Rapids Water Supply, 5.00%,
1/1/08 1,000 1,073
Higher Education Facilities Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/07 765 825
Higher Education Facilities Authority
Revenue, Hope College Project, 4.50%,
10/1/07 250 259
Higher Education Facilities Authority
Revenue, Hope College Project, 4.80%,
10/1/10, (Callable 10/1/09 @ 100) 590 608
Higher Education Facilities Authority,
Hope College Project, 4.70%, 10/1/09 200 208
Higher Education Student Loan
Authority Revenue, Series XII-Q, (AMT),
5.05%, 9/1/08 3,885 4,098
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),
4.75%, 3/1/09 1,800 1,916
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 5.20%, 9/1/08 4,225 4,505
Higher Education Student Loan
Authority Revenue, Series XVII-I,
(AMT), 3.95%, 3/1/11 1,000 995
Hospital Finance Authority, 4.35%,
3/1/09 500 512
Hospital Financial Authority Revenue,
Edward W. Sparrow Group, 5.25%,
11/15/08 1,125 1,209
Hospital Financial Authority Revenue,
Edward W. Sparrow Hospital, 5.25%,
11/15/09 1,165 1,249
Hospital Financial Authority Revenue,
Holland Community Hospital, Series A,
5.00%, 1/1/15 505 524
Jackson County Economic Development
Corp., Limited Obligation Revenue, Vista
Grande Villa, Series A, 1.12%, 11/1/31 (d) 2,000 2,000
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.35%, 5/15/06 2,000 2,110
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Kent Hospital Financial Authority,
Revenue, Spectrum Health, Series A,
5.25%, 1/15/09 $ 1,075 $ 1,147
Montague Public School District, GO,
5.50%, 5/1/12, (Callable 11/1/11 @ 100) 1,005 1,124
Muskegon Water System, Series A,
5.25%, 11/1/09 340 375
State Partnerhsip, Series A, 5.00%,
9/1/31 2,000 2,176
Strategic Fund, Limited Obligation
Revenue, Hope Network Project, Series B,
4.80%, 9/1/08 1,000 1,058
Strategic Fund, Limited Obligation
Revenue, International Project, 3.00%,
8/1/07 1,415 1,420
Strategic Fund, Limited Obligation
Revenue, International Project, 4.75%,
8/1/11 2,240 2,343
Strategic Fund, Limited Obligation
Revenue, International Project, 5.00%,
8/1/13 820 863
Strategic Fund, Limited Obligation
Revenue, Midwest Kellering Co. Project,
1.28%, 6/1/19 (d) 1,700 1,700
Trunk Line, Series A, 5.25%, 11/1/13 600 663
Underground Storage Tank Financial
Assurance Authority, Series I, 6.00%,
5/1/05 3,500 3,618
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 4,130 4,488
------------
49,934
------------
MINNESOTA (2.2%)
Housing Finance Agency, 4.55%,
7/1/12, (Callable 7/1/11 @ 100) 1,525 1,543
Minneapolis & St. Paul Airport
Revenue, Series B, (AMT), 5.00%,
1/1/05 2,855 2,895
State Housing Finance Agency, 3.40%,
7/1/12 1,390 1,314
------------
5,752
------------
MISSISSIPPI (0.2%)
Series A, GO, 5.25%, 12/1/07 500 542
------------
MISSOURI (2.7%)
Clay County Public School District No.
53, Liberty Direct Deposit Program, GO,
6.25%, 3/1/17, (Callable 3/1/10 @ 100) 2,000 2,266
Health & Education Facilities Authority
Revenue, 6.50%, 2/15/21, (Callable
2/15/06 @ 102) 335 365
State Regal Convention & Sports
Complex Authority, 5.25%, 8/15/12 3,880 4,321
------------
6,952
------------
CONTINUED
103
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
NEBRASKA (0.4%)
Investment Financial Authority, Single
Family Housing Revenue, Series D,
4.10%, 9/1/10 $ 465 $ 466
Investment Financial Authority, Single
Family Housing Revenue, Series D,
4.25%, 9/1/11 650 653
------------
1,119
------------
NEVADA (1.6%)
Clark County School District, Series B,
GO, 5.50%, 6/15/08 3,700 4,065
------------
NEW HAMPSHIRE (1.0%)
Nashua, GO, 5.13%, 9/15/15 1,000 1,079
State Turnpike Systems Revenue, Series
A, 5.00%, 4/1/21 1,500 1,549
------------
2,628
------------
NEW JERSEY (2.1%)
Ocean County Utilities Authority,
Wastewater, Refunding, 6.00%, 1/1/07 2,500 2,711
Turnpike Authority Revenue, Series A,
6.00%, 1/1/13 2,500 2,893
------------
5,604
------------
NEW YORK (1.5%)
Metropolitan Transportation Authority,
Series M, 5.50%, 7/1/08 1,030 1,142
Mount Morris Central School District,
GO, 4.00%, 6/15/12 670 688
State Environmental Facilities Corp.,
Solid Waste Disposal Revenue, Waste
Management Project, Series A, 2.90%,
5/1/12 2,000 1,993
------------
3,823
------------
OHIO (3.7%)
Gateway Economic Development Corp.,
Greater Cleveland Excise Tax Revenue,
Senior Lien, (AMT), 5.13%, 9/1/05 1,000 1,035
Housing Financial Agency Management
Revenue, Series A-1, (AMT), 5.35%,
9/1/05 1,125 1,155
Plain Local School District, GO, 5.25%,
12/1/14 1,780 1,947
Plain Local School District, GO, 5.25%,
12/1/19 1,380 1,474
State Facilities, Series B, GO, 5.25%,
9/15/15 2,000 2,174
State Higher Education Facility
Revenue, 4.00%, 11/15/09 500 515
Summit County, GO, 6.00%, 12/1/09 400 454
Water Development Authority, Pollution
Control Facility Revenue, 6.00%,
6/1/05 1,000 1,037
------------
9,791
------------
OKLAHOMA (1.0%)
Oklahoma County Independant School
District No. 89, GO, 5.25%, 7/1/16 2,400 2,630
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
OREGON (3.0%)
Department of Transportation, Highway
User Tax Revenue, 5.00%, 11/15/05 $ 1,045 $ 1,089
Department of Transportation, Highway
User Tax Revenue, Series A, 5.25%,
11/15/17 3,000 3,283
Jackson County School District No.
009, Eagle Point, GO, 5.00%, 6/15/09 1,060 1,151
Washington County Sewer Agency
Revenue, Series A, 5.75%, 10/1/12 2,000 2,301
------------
7,824
------------
PENNSYLVANIA (3.4%)
Chartiers Valley Joint School, ETM,
6.15%, 3/1/07, (Callable 12/12/06 @ 100) 4,110 4,514
GO, 5.00%, 10/1/05 3,000 3,117
Housing Finance Agency, 4.50%,
10/1/09 1,195 1,211
------------
8,842
------------
PUERTO RICO (3.1%)
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23 2,000 2,113
Puerto Rico Public Buildings Authority
Revenue, Refunding, Government
Facilities, Series K, 4.50%, 7/1/22 2,000 2,094
Puerto Rico Commonwealth, Refunding,
Series A, 5.00%, 7/1/30 1,000 1,066
Puerto Rico Public Finance Corp.,
Commonwealth Appropriations, Seris A,
5.75%, 8/1/27 2,500 2,774
------------
8,047
------------
RHODE ISLAND (1.1%)
Depositors Economic Protection Corp.,
Series A, ETM, 5.88%, 8/1/11, (Callable
7/1/11 @ 100) 2,535 2,918
------------
SOUTH CAROLINA (0.4%)
Anderson County School District No.
002, Series B, GO, 6.00%, 3/1/13,
(Callable 3/1/10 @ 101) 890 1,015
------------
TENNESSEE (1.5%)
Housing Development Agency, Series A,
4.00%, 7/1/10 1,100 1,097
Metropolitan Nashville Airport
Authority Revenue, 5.38%, 7/1/14 2,570 2,713
------------
3,810
------------
TEXAS (3.6%)
Dallas Waterworks & Sewer Systems
Revenue, 5.25%, 10/1/09 1,000 1,097
Houston Airport System Revenue, Series
A, (AMT), 5.00%, 7/1/05 1,900 1,957
Houston, Series B, GO, 5.50%, 3/1/18 2,000 2,171
Huffman Independent School District,
GO, 7.00%, 2/15/06 100 108
Huffman Independent School District,
GO, 7.00%, 2/15/07 160 178
CONTINUED
104
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
TEXAS, CONTINUED
Round Rock, GO, 5.00%, 8/15/19 $ 2,000 $ 2,091
Series A, GO, 6.00%, 10/1/08 1,600 1,792
------------
9,394
------------
UTAH (1.2%)
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, 2.00%,
7/1/06 680 668
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, 2.35%,
7/1/07 880 866
St. George Water Revenue, Series A,
5.60%, 6/1/10, (Prerefunded 6/1/05 @ 101) 1,530 1,597
------------
3,131
------------
VIRGINIA (2.5%)
Metropolitan Washington D. C.
Airports, Series B, (AMT), 5.50%,
10/1/05 4,175 4,353
Richmond, GO, 5.38%, 7/15/13,
(Callable 7/15/11 @ 101) 2,000 2,223
------------
6,576
------------
WASHINGTON (5.9%)
Grant County Public Utility District No.
002, Electric Revenue, 5.00%, 1/1/11 2,485 2,700
King County School District No. 401,
Highline Public Schools, GO, 5.13%,
12/1/20 2,590 2,689
King County School District No. 415,
Kent, Series A, GO, 5.55%, 12/1/11,
(Callable 1/29/10 @ 100) 2,000 2,241
Motor Vehicle Fuel Tax, R-92D, 6.25%,
9/1/07 1,000 1,109
Port Tacoma, Series A, GO, (AMT),
4.90%, 12/1/07 1,010 1,078
Series A, GO, 5.50%, 9/1/05,
(Prerefunded 9/1/04 @ 100) 5,000 5,017
Yakima County, GO, 5.25%, 12/1/16 425 457
------------
15,291
------------
WISCONSIN (0.6%)
Series 1, GO, 5.00%, 5/1/13 1,500 1,630
------------
TOTAL MUNICIPAL BONDS 260,611
------------
CONTINUED
SHARES VALUE
----------- ------------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 100 $ --#
Dreyfus Tax Exempt Money Market
Fund 292,260 292
Federated Tax Exempt Money Market
Fund 666 1
Merrill Lynch Institutional Tax Exempt
Fund 5,178 5
------------
TOTAL MONEY MARKETS 298
------------
TOTAL INVESTMENTS (COST $249,709)+ - 99.9% 260,909
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 231
------------
NET ASSETS - 100.0% $ 261,140
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
105
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (97.8%)
OHIO (95.5%)
Akron, GO, 5.50%, 12/1/07 $ 2,000 $ 2,189
Akron, Various Purpose Improvement,
GO, 5.60%, 12/1/06, (Callable 12/1/04 @
102) 500 517
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/11 1,825 2,015
Beavercreek Local School District,
6.60%, 12/1/15 1,500 1,834
Berea, GO, 5.13%, 12/1/13 1,215 1,306
Building Authority, 5.25%, 10/1/10,
(Callable 4/1/09 @ 101) 2,410 2,633
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18, (Callable
11/15/08 @ 101) 2,000 1,871
Butler County Transportation
Improvement District, Series A, 6.00%,
4/1/12, (Callable 4/1/08 @ 102) 2,000 2,233
Cincinnati City School District,
Classroom Facilities Construction &
Improvements, 5.25%, 12/1/14, (Callable
12/1/13 @ 100) 3,000 3,317
Cleveland Public Power System
Revenue, 5.25%, 11/15/16, (Callable
11/15/06 @ 102) 4,900 5,291
Cleveland Stadium Project, 5.25%,
11/15/11, (Callable 11/15/07 @ 102) 4,110 4,489
Columbus Sewer Revenue, 5.00%,
6/1/06 2,000 2,107
Columbus, Refunding, Police/Fireman
Disability, 5.00%, 7/15/14 1,000 1,064
Columbus, Series 2, GO, 6.00%,
6/15/07 4,090 4,500
Cuyahoga County Hospital Revenue,
5.50%, 2/15/09 2,245 2,458
Cuyahoga County Jail Facilities, GO,
5.25%, 10/1/13 3,000 3,345
Cuyahoga County, GO, 5.60%,
5/15/13 3,435 3,772
Dayton-Montgomery County Port
Authority, Development-Parking Garage
Project, Series A, 5.00%, 11/15/17 1,105 1,107
Economic Development Revenue,
3.50%, 12/1/07 480 484
Economic Development Revenue,
4.40%, 12/1/12 815 824
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/08 400 419
Erie County Hospital Facilities Revenue,
5.00%, 8/15/09 210 219
Erie County Hospital Facilities Revenue,
5.50%, 8/15/12 250 267
Euclid City School District, GO, 5.13%,
12/1/11, (Callable 12/1/05 @ 102) 1,500 1,589
Franklin County Development Revenue,
5.50%, 10/1/12, (Callable 10/1/09 @ 101) 2,270 2,457
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 $ 2,270 $ 2,416
Greater Cleveland Regional Transit
Authority, 5.38%, 12/1/11, (Callable
12/1/08 @ 101) 1,455 1,620
Hamilton County Hospital Facilities
Revenue, 5.20%, 12/1/13, (Callable
12/1/07 @ 101) 1,000 1,066
Hamilton County Hospital Facilities
Revenue, Cincinnati Childrens Hospital,
Series J, 4.50%, 5/15/14 1,510 1,572
Hamilton County Hospital Facilities,
Revenue, 5.25%, 5/15/11, (Callable
11/15/08 @ 101) 2,670 2,923
Hamilton County Sewer System
Revenue, Series A, 5.60%, 12/1/08,
(Callable 12/1/05 @ 102) 1,000 1,066
Higher Education, Capital Facilities
Revenue, 5.50%, 12/1/09 4,000 4,455
Higher Education, Capital Facilities
Revenue, Series II-A, 5.25%, 12/1/05 2,350 2,458
Higher Education, Capital Facilities
Revenue, Series II-A, 5.50%, 12/1/07 4,695 5,144
Higher Education, Capital Facilities
Revenue, Series II-A, 5.00%, 12/1/08 2,000 2,170
Higher Education, Case Western
Reserve, 6.25%, 7/1/14 6,500 7,697
Higher Education, Dennison University
Project, 5.50%, 11/1/12, (Callable
11/1/11@ 101) 1,000 1,118
Higher Education, John Carroll
University, 5.25%, 11/15/14, (Callable
11/15/13 @ 100) 1,435 1,569
Higher Education, John Carroll
University, 5.25%, 11/15/15, (Callable
11/15/13 @ 100) 1,490 1,614
Hilliard School District, 5.50%,
12/1/08 2,780 3,071
Housing Authority, 4.63%, 9/1/31,
(Callable 1/1/11 @ 100) 2,130 2,185
Housing Finance Agency, (AMT),
3.95%, 9/1/08 490 499
Housing Finance Agency, (AMT),
4.15%, 9/1/09 825 832
Housing Finance Agency, (AMT),
4.35%, 9/1/10 305 308
Housing Finance Agency, (AMT),
3.65%, 9/1/11 845 813
Housing Finance Agency, (AMT),
4.55%, 9/1/11 320 324
Housing Finance Agency, (AMT),
3.30%, 9/1/30 1,245 1,240
Knox County Hospital Facilities
Revenue, 4.70%, 6/1/08 1,150 1,212
Knox County Hospital Facilities
Revenue, 5.00%, 6/1/12 6,250 6,664
CONTINUED
106
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Lucas County, 6.65%, 12/1/12 $ 160 $ 163
Lucas County Hospital Revenue, 6.00%,
11/15/04 2,000 2,027
Mental Health Capital Facilities, Series
II-A, 5.00%, 6/1/13 2,135 2,309
Montgomery County Catholic Health
Initiatives, Series A, 6.00%, 12/1/26 2,750 2,910
Montgomery County Sisters of Charity
Revenue, 6.50%, 5/15/08 155 155
Montgomery County Solid Waste
Revenue, 5.40%, 11/1/08, (Callable
11/1/05 @ 102) 3,000 3,182
Municipal Electric Generation Agency,
Refunding, Joint Venture, 5-CTFS Ben
Int, 5.00%, 2/15/14 2,000 2,176
North Olmstead, 6.20%, 12/1/11 3,000 3,503
Penta Career Center, 5.00%, 4/1/10 1,330 1,447
Revenue, Major New State Infrastructure,
Series 1, 5.00%, 6/15/06 3,000 3,164
Sidney Construction, 4.90%, 11/1/07 725 738
Solid Waste Revenue, 4.85%, 11/1/22 3,000 3,109
State Building Authority, Refunding,
State Facilities-Administration Building
Fund, Series A, 5.00%, 4/1/13 1,230 1,342
State Schools, 5.00%, 6/15/13 1,000 1,089
State Solid Waste Revenue, Refunding,
Republic Services Project, 4.25%,
4/1/33 1,500 1,434
State, GO, 6.65%, 9/1/09 1,000 1,111
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvement Project, 5.00%,
12/1/09 1,110 1,167
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvements Project,
5.00%, 12/1/08 1,155 1,220
Turnpike Revenue, Series A, 5.70%,
2/15/17, (Prerefunded 2/15/06 @ 102) 5,000 5,387
University of Cincinnati, 5.00%,
6/1/10 300 327
University of Cincinnati, GO, 5.50%,
6/1/09 2,000 2,220
Water Development Authority, Pollution
Control Facilities Revenue, 5.25%,
12/1/08, (Callable 12/1/07 @ 101) 1,000 1,087
Water Revenue, 5.30%, 12/1/10,
(Callable 6/1/05 @ 101) 4,000 4,166
West Geauga Local School District, GO,
5.55%, 11/1/05, (Callable 11/1/04 @
102) 1,000 1,030
West Geauga Local School District, GO,
5.65%, 11/1/06, (Callable 11/1/04 @
102) 1,000 1,030
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Westlake City School District, Series A,
GO, 5.05%, 12/1/04 $ 1,050 $ 1,063
------------
154,899
------------
PUERTO RICO (2.3%)
Puerto Rico Public Buildings Authority
Revenue, Refunding, Government
Facilities, Series K, 4.50%, 7/1/22 1,000 1,047
Puerto Rico Commonwealth, Refunding,
Series A, 5.00%, 7/1/30 1,000 1,066
Puerto Rico Public Finance Corp.,
Commonwealth Appropriations, Seris A,
5.75%, 8/1/27 1,500 1,665
------------
3,778
------------
TOTAL MUNICIPAL BONDS 158,677
------------
MONEY MARKETS (1.3%)
Federated Ohio Municipal Cash Trust 83 --#
Touchstone Ohio Money Fund 2,163,404 2,163
------------
TOTAL MONEY MARKETS 2,163
------------
TOTAL INVESTMENTS (COST $155,391)+ - 99.1% 160,840
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9% 1,507
------------
NET ASSETS - 100.0% $ 162,347
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
107
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (98.3%)
MICHIGAN (96.4%)
Ann Arbor Water Supply Systems,
5.00%, 2/1/10 $ 880 $ 955
Avondale School District, UTGO,
5.00%, 5/1/10 800 870
Berkley School District, GO, 7.00%,
1/1/07 1,300 1,437
Birmingham Michigan City School
District, 5.00%, 11/1/10 1,905 2,075
Building Authority Revenue, Facilities
Program, Series III, 5.00%, 10/15/08 2,000 2,166
Building Authority Revenue, State
Police Communications III, 5.00%,
10/1/05 1,700 1,769
Cadillac Area Public Schools, UTGO,
7.25%, 5/1/05 300 313
Central Michigan University, 5.00%,
10/1/09 1,605 1,747
Certificate of Participation, Series A,
5.00%, 9/1/31 1,000 1,088
Charles Stewart Mott Community
College, UTGO, 5.00%, 7/1/09 1,000 1,089
Clarkston Michigan Schools, 4.00%,
5/1/12 200 205
Comprehensive Transportation, Series
A, 5.25%, 5/15/09 3,000 3,295
Comprehensive Transportation, Series
B, 5.25%, 5/15/09 1,390 1,527
Detroit City School District, 5.50%,
5/1/06 1,730 1,828
Detroit Economic Development Corp.,
4.00%, 5/1/06 2,500 2,573
Detroit City School District, Building &
Site Improvements, Series A, 5.00%,
5/1/08 1,000 1,078
Detroit Convention Facilities, 5.00%,
9/30/08 2,000 2,166
Detroit Water Supply Systems, Series
C, 5.00%, 7/1/07 2,000 2,145
Detroit, GO, 6.00%, 4/1/06 750 801
Dexter Community School District, GO,
6.25%, 5/1/07 1,730 1,902
Farmington Hills Economic
Development Corp. Revenue, Botsford
Continuing Care, Series A, 5.20%,
2/15/05 470 480
Ferndale, UTGO, 4.50%, 4/1/10 1,190 1,264
Forest Hills Public Schools, GO,
5.25%, 5/1/09 2,785 3,040
Frankenmuth School District, UTGO,
5.50%, 5/1/05 100 103
Frankenmuth School District, UTGO,
5.50%, 5/1/06 125 133
Grand Rapids & Kent County Joint
Building, GO, 5.50%, 10/1/09 605 671
Grand Rapids & Kent County Joint
Building, UTGO, 5.50%, 10/1/07 535 582
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Grand Rapids Charter Township, Porter
Hills Obligated Group, 4.35%, 7/1/05 $ 200 $ 203
Greater Detroit Resource Recovery
Authority, 6.25%, 12/13/06 2,500 2,729
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/05 590 615
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/06 725 772
Higher Education Facilities Authority
Revenue, Hope College Project, 4.60%,
10/1/08 320 333
Higher Education Facility Authority -
Thomas M. Cooley Law School, 4.75%,
5/1/07 1,265 1,317
Higher Education Student Loan
Authority Revenue, (AMT), 5.00%,
3/1/07 2,525 2,631
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),
4.75%, 3/1/09 200 213
Higher Education Student Loan
Authority Revenue, Series XVII-I (AMT),
3.65%, 3/1/10 1,000 997
Higher Education, Kalamazoo College,
5.25%, 12/1/04 655 663
Hospital Finance Authority Revenue,
4.80%, 11/1/17, Refunding Hospital
Charity Obligation D, (Prerefunded
11/1/04 @ 100) 1,675 1,690
Hospital Finance Authority Revenue,
Oakwood Obligated Group, 5.00%,
11/1/05 730 753
Hospital Finance Authority Revenue, St.
John's Hospital & Medical Center,
5.00%, 5/15/06 1,450 1,526
Hospital Finance Authority, Bay
Medical Center, Series A, 5.38%, 7/1/06 1,855 1,968
Hospital Finance Authority, St. John
Hospital & Medical Center, 5.00%,
5/15/05 1,000 1,026
Hospital Financial Authority Revenue,
7.50%, 10/1/27, (Prerefunded 10/1/05 @
100) 1,000 1,068
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A, 3.50%,
3/1/06 200 202
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
CONTINUED
108
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Hospital Financial Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/05 $ 1,055 $ 1,097
Hospital Financial Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/06 735 771
Housing Development Authority,
(AMT), Series B, 3.25%, 12/1/05 70 71
Housing Development Authority,
(AMT), Series B, 3.55%, 12/1/06 175 176
Housing Development Authority,
(AMT), Series B, 3.85%, 12/1/07 215 218
Housing Development Authority,
(AMT), Series B, 4.13%, 12/1/08 305 310
Housing Development Authority,
(AMT), Series B, 4.35%, 12/1/09 355 360
Housing Development Authority,
(AMT), Series B, 4.55%, 12/1/10 455 462
Housing Development Authority,
(AMT), Series B, 4.65%, 12/1/11 485 496
Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/08 930 960
Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/09 710 725
Housing Development Authority, Single
Family, (AMT), 3.85%, 12/1/04 830 835
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.50%, 5/15/08 750 820
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.25%, 5/15/05 1,000 1,029
Kenowa Hills Public Schools, UTGO,
5.50%, 5/1/05 1,295 1,333
Kenowa Hills Public Schools, UTGO,
5.50%, 5/1/06 1,000 1,060
Kent, Hospital Finance Authority
Revenue, Spectrum Health, 5.25%,
1/15/08 430 460
Kent, Hospital Finance Authority,
Butterworth Hospital, 4.90%, 1/15/05 1,150 1,166
Lansing School District, 4.00%,
5/1/06 1,190 1,232
Municipal Bond Authority Revenue,
5.00%, 12/1/05 2,000 2,088
Municipal Bond Authority Revenue,
Series A, 5.25%, 12/1/07 1,000 1,085
Municipal Building Authority Revenue,
Government Loan Program, Series C,
5.00%, 5/1/10 1,000 1,089
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/06 1,130 1,191
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/08 $ 1,000 $ 1,074
Muskegon Heights Water System, Series
A, 5.25%, 11/1/06 335 357
Novi Community School District,
Building & Site Improvements, 4.13%,
5/1/08 1,000 1,047
Novi Community School District,
Building & Site Improvements, 5.00%,
10/1/08 2,320 2,508
Oxford Area Community School, GO,
6.00%, 5/1/05 1,100 1,137
South Central Power Agency, Power
Supply System Revenue, 5.80%,
11/1/05 2,000 2,100
South Macomb Disposal Authority
Revenue, 5.00%, 9/1/08 1,115 1,206
South Redford School District, GO,
5.25%, 5/1/07, (Prerefunded 5/1/07 @
100) 1,575 1,702
State Hospital Finance Authority
Revenue, 4.15%, 1/1/12 450 445
Sterling Heights, 4.00%, 10/1/05 670 688
Strategic Fund Obligation International,
2.00%, 8/1/05 1,030 1,033
Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07 615 645
Three Rivers Community Schools,
6.00%, 5/1/23, (Prerefunded 5/1/06 @
101) 970 1,048
Traverse City Area Public Schools,
7.25%, 5/1/05 950 990
Trunk Line, 5.00%, 10/1/07 700 752
Trunk Line, Series A, 5.50%, 11/1/07 1,025 1,119
Trunk Line, Series A, 5.25%, 11/1/09 1,000 1,100
Underground Storage, Tank Financial
Assurance Authority, Series I, 6.00%,
5/1/06 2,270 2,418
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 2,000 2,173
University of Michigan Hospital
Revenue, 5.00%, 12/1/09 510 554
Warren Building Authority, 3.70%,
11/1/09 225 230
Warren Consolidated School District,
5.00%, 5/1/07 3,890 4,154
Washtenaw Community College,
4.00%, 4/1/07 2,355 2,454
Wayne Charter, 5.25%, 12/1/05 1,035 1,079
Wayne Charter, Airport Revenue, Series
D, 5.25%, 12/1/06 2,000 2,126
Wayne County Community College,
5.25%, 7/1/09 1,000 1,101
------------
111,851
------------
CONTINUED
109
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
PUERTO RICO (1.9%)
Puerto Rico Public Buildings Authority
Revenue, Refunding, Government
Facilities, Series K, 4.50%, 7/1/22 $ 1,000 $ 1,047
Puerto Rico Public Finance Corp.,
Commonwealth Appropriations, Seris A,
5.75%, 8/1/27 1,000 1,110
------------
2,157
------------
TOTAL MUNICIPAL BONDS 114,008
------------
MONEY MARKETS (1.0%)
AIM Tax Free Money Market Fund 167 --#
Dreyfus Tax Exempt Money Market
Fund 1,192,646 1,193
Federated Tax Exempt Money Market
Fund 733 1
Merrill Lynch Institutional Tax Exempt
Fund 5,019 5
------------
TOTAL MONEY MARKETS 1,199
------------
TOTAL INVESTMENTS (COST $113,737)+ - 99.3% 115,207
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.7% 816
------------
NET ASSETS - 100.0% $ 116,023
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS
110
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
* Non-income producing security.
** Rate represents the effective yield at purchase.
# Market value is less than five hundred dollars.
+ Represents cost for financial reporting purposes.
(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 Ju1y
31, 2004. 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) All or part of this security has been deposited as collateral for TBA
security.
(g) All or part of this security was on loan at July 31, 2004.
(h) Investment is in Institutional Shares of underlying fund.
(i) Common Stock.
The following abbreviations are used in these Schedules of Portfolio
Investments:
ADR - American Depositary Receipt
AMT - Alternative Minimum Tax Paper
CBTCS - Convertible Bond Transferable Custodial Security
ETM - Escrowed to Maturity
GDR - Global Depositary Receipts
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
COST OF NET
INVESTMENTS FOR GROSS GROSS UNREALIZED
FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/
PURPOSES APPRECIATION DEPRECIATION DEPRECIATION)
--------------- ------------ ------------ -------------
Small Cap Growth Fund $ 249,598 $ 58,041 $ (20,793) $ 37,248
Mid Cap Growth Fund 412,476 74,954 (26,685) 48,269
Quality Growth Fund 1,049,301 202,608 (99,044) 103,564
Large Cap Core Fund 115,429 16,704 (9,286) 7,418
Equity Index Fund 347,252 257,748 (31,518) 226,230
Balanced Fund 202,743 13,119 (4,698) 8,421
Micro Cap Value Fund 184,464 75,705 (12,421) 63,284
Small Cap Value Fund 108,896 9,110 (3,576) 5,534
Multi Cap Value Fund 295,416 76,303 (7,879) 68,424
Disciplined Large Cap Value Fund 609,504 104,494 (5,949) 98,545
LifeModel Aggressive Fund SM 94,485 11,729 (1,776) 9,953
LifeModel Moderately Aggressive Fund SM 206,890 21,121 (3,463) 17,658
LifeModel Moderate Fund SM 449,972 17,721 (10,056) 7,665
LifeModel Moderately Conservative Fund SM 98,503 7,192 (1,885) 5,307
LifeModel Conservative Fund SM 53,900 1,877 (1,072) 805
Strategic Income Fund 169,908 6,635 (4,093) 2,542
Select Stock Fund 16,869 1,879 (1,080) 799
Technology Fund 54,430 3,060 (4,963) (1,903)
International Equity Fund 414,196 31,143 (64,516) (33,373)
Bond Fund 402,969 4,445 (1,599) 2,846
Intermediate Bond Fund 909,260 7,405 (5,616) 1,789
Short Term Bond Fund 718,787 1,265 (8,625) (7,360)
U.S. Government Bond Fund 82,138 770 (372) 398
Municipal Bond Fund 57,092 4,649 (2) 4,647
Intermediate Municipal Bond Fund 249,135 12,245 (471) 11,774
Ohio Municipal Bond Fund 155,144 6,261 (565) 5,696
Michigan Municipal Bond Fund 113,720 1,992 (505) 1,487
SEE NOTES TO FINANCIAL STATEMENTS
111
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
The table below reflects the Small Cap Growth Fund's activities in written
options, all of which were for purposes of earning additional income during the
period. No other Funds engaged in written option contracts during the year ended
July 31, 2004.
BALANCE AT OPTIONS OPTIONS OPTIONS BALANCE AT
JULY 31, 2003 WRITTEN EXPIRED EXERCISED JULY 31, 2004
------------- ------- ------- --------- -------------
NUMBER OF CONTRACTS
Small Cap Growth Fund 50 70 (70) (50) --
PREMIUMS ($000)
Small Cap Growth Fund $ 3 $ 9 $ (9) $ (3) --
Open futures contracts as of July 31, 2004:
(Amounts in thousands except contract amount)
UNREALIZED
NUMBER OF NOTIONAL APPRECIATION/ MARKET
CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE
--------- ------------------------------ ----------- -------------- --------
Small Cap Growth Fund 9 Russell 2000, 9/17/04 $ 2,548 $ (65) $ 2,483
========= =========== ============== ========
Large Cap Core Fund 26 Standard & Poor's 500, 9/17/04 7,152 5 7,157
========= =========== ============== ========
Equity Index Fund 11 Standard & Poor's 500, 9/17/04 3,113 (85) 3,028
========= =========== ============== ========
International Equity Fund 106 CAC40 10, 9/30/04 4,829 (162) 4,667
93 DAX, 9/17/04 11,221 (309) 10,912
161 Euro Stoxx 50, 9/17/04 5,517 (260) 5,257
45 FTSE 100, 9/17/04 3,674 (61) 3,613
12 Hang Seng, 8/30/04 938 2 940
71 TOPIX, 9/9/04 7,603 (326) 7,277
--------- ----------- -------------- --------
488 $ 33,782 $ (1,116) $32,666
========= =========== ============== ========
As of July 31, 2004, the following Funds had securities on loan with the
following market values and collateral amounts (Amounts in thousands):
AVERAGE
MARKET LOAN
VALUE OF OUTSTANDING
CASH LOANED DURING THE
COLLATERAL SECURITIES YEAR
---------- ---------- -----------
Small Cap Growth Fund $ 35,821 $ 30,568 $ 38,194
Mid Cap Growth Fund 60,172 58,911 59,483
Quality Growth Fund 20,601 20,233 52,903
Large Cap Core Fund 6,081 5,953 4,169
Equity Index Fund 39,342 38,424 22,428
Balanced Fund 6,089 5,962 12,308
Multi Cap Value Fund 32,521 31,754 27,068
Disciplined Large Cap Value Fund 47,987 46,739 21,129
Select Stock Fund -- -- 569
Technology Fund 4,497 3,509 8,218
International Equity Fund 34,935 34,106 34,681
Bond Fund 18,961 16,966 27,233
Intermediate Bond Fund 197,705 191,548 174,998
Short Term Bond Fund 190,915 184,465 105,802
At July 31, 2004, each Fund's loaned securities were fully collateralized by
cash, which was reinvested in repurchase agreements, certificate of deposits,
commercial paper and floating rate notes (with interest rates ranging from 1.13%
to 1.67% and maturity dates ranging from August 2, 2004 to April 1, 2014).
SEE NOTES TO FINANCIAL STATEMENTS
112
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
International Equity Fund Foreign Currency Contracts as of July 31, 2004
(Amounts in thousands):
CONTRACT CURRENT
AMOUNT CONTRACT VALUE UNREALIZED
DELIVERY (LOCAL VALUE U.S. U.S. APPRECIATION/
DATE CURRENCY) DOLLAR DOLLAR DEPRECIATION
-------- --------- ---------- ------- -------------
BRITISH POUND STERLING
- -----------------------------------
Long Contracts
9/16/04 2,032 $ 3,649 $ 3,683 $34
EURO
- -----------------------------------
Short Contracts
9/16/04 3,977 4,812 4,778 34
9/16/04 6,980 8,425 8,385 40
9/16/04 253 306 304 2
Long Contracts
9/16/04 6,967 8,424 8,369 (55)
9/16/04 9,756 11,766 11,720 (46)
9/16/04 789 953 948 (5)
9/16/04 2,469 2,983 2,966 (17)
9/16/04 2,676 3,233 3,215 (18)
9/16/04 4,567 5,530 5,486 (44)
9/16/04 1,466 1,792 1,763 (29)
JAPANESE YEN
- -----------------------------------
Short Contracts
9/16/04 873,640 7,934 7,875 59
9/16/04 557,830 5,084 5,028 56
9/16/04 861,123 7,876 7,762 114
9/16/04 837,258 7,632 7,547 85
Long Contracts
9/16/04 192,222 1,766 1,733 (33)
9/16/04 307,528 2,798 2,772 (26)
9/16/04 447,066 4,079 4,030 (49)
9/16/04 1,226,880 11,162 11,059 (103)
9/16/04 1,377,467 12,515 12,416 (99)
9/16/04 407,718 3,757 3,675 (82)
SEE NOTES TO FINANCIAL STATEMENTS
113
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
The investment concentrations for the Equity Funds as a percentage of net
assets, by industry, as of July 31, 2004, were as follows:
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY MICRO CAP
GROWTH GROWTH GROWTH CORE INDEX VALUE
FUND FUND FUND FUND FUND FUND
-------- -------- -------- --------- -------- --------
Advertising -- -- -- -- 0.2% 0.3%
Aerospace/Defense 1.6% 1.4% 2.5% 1.8% 1.7% --
Agriculture -- -- -- 2.1% 1.2% --
Airlines -- -- -- -- 0.1% 0.6%
Apparel 2.6% 1.8% -- -- 0.3% 6.6%
Auto Manufacturers 0.9% -- -- 0.2% 0.6% --
Auto Parts & Equipment -- -- -- 0.3% 0.2% 1.1%
Banks 3.6% 1.3% 5.8% 6.3% 6.4% 0.3%
Beverages -- -- -- 2.5% 2.5% --
Biotechnology 3.2% 1.5% 1.5% -- 1.1% --
Building Materials -- -- -- 1.2% 0.3% 1.1%
Cash Equivalents 14.2% 15.2% 1.8% 11.7% 8.0% 6.7%
Chemicals -- 1.2% -- 1.8% 1.5% 3.8%
Closed-end Funds -- -- -- -- -- 1.4%
Commercial Services 3.2% 7.3% 4.2% -- 1.0% 3.5%
Computers 0.8% 5.8% 4.2% 4.9% 4.0% 4.5%
Cosmetics/Personal Care -- 1.4% -- 1.9% 2.5% --
Distribution/Wholesale -- 4.0% -- -- 0.1% 2.1%
Diversified Financial Services 1.0% 2.9% 3.1% 6.5% 8.2% 1.2%
Electric -- -- -- 1.7% 2.6% --
Electrical Components & Equipment 3.7% -- 1.6% 0.6% 0.3% 1.7%
Electronics 4.6% 6.8% 3.5% 1.1% 0.5% 4.3%
Engineering & Construction -- -- -- -- 0.0%^ 1.4%
Entertainment 0.3% -- 2.9% -- 0.1% 1.8%
Environmental Control -- 1.1% -- -- 0.2% 0.8%
Food -- -- 2.7% 2.8% 2.1% 0.5%
Food Service -- -- -- -- -- --
Forest Products & Paper -- -- -- 1.0% 0.6% --
Gas -- -- -- 0.9% 0.2% --
Hand/Machine Tools -- -- -- 0.3% 0.1% 0.2%
Healthcare-Products 7.3% 7.1% 4.1% 3.4% 3.6% 2.9%
Healthcare-Services 2.7% 2.1% 1.9% 2.2% 1.2% 1.4%
Holding Companies-Diversified -- -- -- -- -- --
Home Builders 0.9% 3.1% 1.9% -- 0.1% --
Home Furnishings 0.9% -- -- -- 0.1% 4.0%
Household Products/Wares 2.6% -- -- -- 0.3% 0.3%
Housewares -- -- -- -- 0.1% 0.7%
Insurance 2.1% 1.8% 1.2% 6.6% 4.9% 0.9%
Internet 5.0% 2.3% -- -- 1.1% 2.3%
Investment Companies 0.7% 7.8% -- -- -- --
Iron/Steel 0.8% -- -- -- 0.1% 4.8%
Leisure Time 0.6% -- 1.5% -- 0.5% 0.7%
Lodging 1.1% -- -- -- 0.3% 0.5%
Machinery-Construction & Mining 0.8% -- -- -- 0.2% --
Machinery-Diversified 0.5% -- 2.0% 0.3% 0.3% 0.8%
Media -- 1.3% 2.3% 3.2% 3.3% --
Metal Fabricate/Hardware -- -- -- -- 0.0%^ 1.4%
Metal Fabrication -- -- -- -- -- --
Mining -- -- -- 0.4% 0.6% 2.4%
Miscellaneous Manufacturing 2.4% 1.0% 8.5% 5.4% 5.8% 2.3%
Office Furnishings -- -- -- -- -- --
Office/Business Equipment -- -- -- 1.2% 0.2% --
Oil & Gas 4.2% 4.8% 1.0% 6.7% 6.0% 2.3%
Oil & Gas Services -- -- 1.0% 0.9% 0.7% 4.4%
Packaging & Containers -- -- 0.2% 0.1% --
Pharmaceuticals 6.6% 8.1% 5.1% 5.3% 7.0% 1.5%
Pipelines -- -- -- -- 0.2% 0.4%
Real Estate -- -- -- -- -- --
REITS -- -- -- -- 0.3% 1.7%
Retail 6.8% 12.0% 10.8% 5.4% 6.8% 7.5%
Savings & Loans 1.1% -- -- -- 0.6% --
Semiconductors 6.6% 6.1% 18.6% 3.5% 3.3% 0.7%
Software 7.8% 3.0% 3.7% 4.4% 5.0% 0.9%
Sovereign 0.4% -- -- -- -- --
Storage/Warehousing -- -- -- -- -- 1.1%
Telecommunications 5.4% 4.5% 4.2% 5.2% 6.4% 3.0%
Textiles -- -- -- -- -- 1.1%
Toys/Games/Hobbies 1.3% -- -- 0.4% 0.1% --
Transportation 5.0% -- -- 0.9% 1.5% 4.8%
Trucking & Leasing -- -- -- -- 0.0%^ --
Water -- -- -- -- -- --
DISCIPLINED LIFEMODEL
SMALL CAP MULTI CAP LARGE CAP LIFEMODEL MODERATELY LIFEMODEL
VALUE VALUE VALUE AGGRESSIVE AGGRESSIVE MODERATE
FUND FUND FUND FUND SM FUND SM FUND SM
-------- -------- -------- ---------- ---------- ---------
Advertising -- -- -- -- -- --
Aerospace/Defense -- 1.5% 3.3% -- -- --
Agriculture -- -- -- -- -- --
Airlines -- -- -- -- -- --
Apparel 1.2% -- -- -- -- --
Auto Manufacturers -- 0.4% 2.1% -- -- --
Auto Parts & Equipment -- 2.2% -- -- -- --
Banks -- 1.6% 6.1% -- -- --
Beverages 2.7% -- -- -- -- --
Biotechnology 0.7% 1.5% -- -- -- --
Building Materials -- 0.8% 1.1% -- -- --
Cash Equivalents 15.6% 19.9% 11.5% -- -- --
Chemicals 3.9% 0.6% 3.0% -- -- --
Closed-end Funds -- 0.6% -- -- -- --
Commercial Services 6.8% -- -- -- -- --
Computers 2.6% 4.9% 3.1% -- -- --
Cosmetics/Personal Care -- 1.0% -- -- -- --
Distribution/Wholesale -- -- 1.4% -- -- --
Diversified Financial Services 1.6% 3.8% 6.5% -- -- --
Electric 3.4% 2.2% 4.9% -- -- --
Electrical Components & Equipment 2.8% 0.3% -- -- -- --
Electronics 1.1% 2.9% 2.1% -- -- --
Engineering & Construction -- -- -- -- -- --
Entertainment -- -- -- -- -- --
Environmental Control -- 0.8% -- -- -- --
Food 1.0% 6.3% 5.0% -- -- --
Food Service -- -- -- -- -- --
Forest Products & Paper -- 0.9% 4.5% -- -- --
Gas -- -- -- -- -- --
Hand/Machine Tools -- 1.3% -- -- -- --
Healthcare-Products -- 1.6% -- -- -- --
Healthcare-Services 8.1% 2.1% 0.8% -- -- --
Holding Companies-Diversified -- -- -- -- -- --
Home Builders -- -- -- -- -- --
Home Furnishings -- 1.8% -- -- -- --
Household Products/Wares 1.0% 0.4% -- -- -- --
Housewares -- 0.8% -- -- -- --
Insurance 8.8% 4.3% 8.6% -- -- --
Internet 2.2% -- -- -- -- --
Investment Companies 3.3% 1.7% -- 100.1% 99.9% 100.0%
Iron/Steel -- 0.2% -- -- -- --
Leisure Time -- 0.9% 2.5% -- -- --
Lodging -- 0.6% -- -- -- --
Machinery-Construction & Mining -- -- 2.0% -- -- --
Machinery-Diversified -- 2.1% -- -- -- --
Media -- 2.0% 2.9% -- -- --
Metal Fabricate/Hardware -- -- -- -- -- --
Metal Fabrication -- -- -- -- -- --
Mining 2.1% -- -- -- -- --
Miscellaneous Manufacturing -- 3.3% 5.5% -- -- --
Office Furnishings -- -- -- -- -- --
Office/Business Equipment -- -- -- -- -- --
Oil & Gas 2.2% 9.1% 11.6% -- -- --
Oil & Gas Services 8.1% 1.6% 1.6% -- -- --
Packaging & Containers -- -- -- -- -- --
Pharmaceuticals 4.1% 4.0% 4.3% -- -- --
Pipelines -- -- -- -- -- --
Real Estate -- -- -- -- -- --
REITS -- 0.7% 0.4% -- -- --
Retail 5.7% 7.0% 7.1% -- -- --
Savings & Loans 0.4% -- -- -- -- --
Semiconductors 7.7% 1.5% 0.9% -- -- --
Software -- 0.9% -- -- -- --
Sovereign -- -- -- -- -- --
Storage/Warehousing 1.0% -- -- -- -- --
Telecommunications 1.6% 6.7% 4.4% -- -- --
Textiles -- -- -- -- -- --
Toys/Games/Hobbies -- 0.6% -- -- -- --
Transportation 2.2% 2.5% -- -- -- --
Trucking & Leasing -- -- -- -- -- --
Water -- -- -- -- -- --
LIFEMODEL
MODERATELY LIFEMODEL SELECT INTERNATIONAL
CONSERVATIVE CONSERVATIVE STOCK TECHNOLOGY EQUITY
FUND SM FUND SM FUND FUND FUND
---------- ---------- -------- --------- ----------
Advertising -- -- -- 2.3% 0.2%
Aerospace/Defense -- -- 4.2% -- 0.5%
Agriculture -- -- -- -- 0.7%
Airlines -- -- -- -- 0.2%
Apparel -- -- -- -- 0.1%
Auto Manufacturers -- -- -- -- 4.0%
Auto Parts & Equipment -- -- -- -- 0.7%
Banks -- -- -- -- 14.9%
Beverages -- -- -- -- 1.0%
Biotechnology -- -- -- 1.6% 0.0%^
Building Materials -- -- -- -- 1.3%
Cash Equivalents -- -- 1.2% 9.7% 18.3%
Chemicals -- -- -- -- 2.1%
Closed-end Funds -- -- -- -- --
Commercial Services -- -- 7.3% -- 0.8%
Computers -- -- 5.6% 8.3% 0.5%
Cosmetics/Personal Care -- -- -- -- 0.6%
Distribution/Wholesale -- -- -- -- 0.7%
Diversified Financial Services -- -- 8.1% -- 1.3%
Electric -- -- -- -- 2.8%
Electrical Components & Equipment -- -- -- -- 1.1%
Electronics -- -- 5.6% 9.5% 1.7%
Engineering & Construction -- -- -- -- 0.9%
Entertainment -- -- 3.7% -- 0.3%
Environmental Control -- -- -- -- 0.0%^
Food -- -- -- -- 3.5%
Food Service -- -- -- -- 0.2%
Forest Products & Paper -- -- -- -- 0.6%
Gas -- -- -- -- 0.5%
Hand/Machine Tools -- -- -- -- 0.5%
Healthcare-Products -- -- 8.3% -- 0.4%
Healthcare-Services -- -- -- -- --
Holding Companies-Diversified -- -- -- -- 0.7%
Home Builders -- -- 5.0% -- 0.3%
Home Furnishings -- -- -- -- 1.1%
Household Products/Wares -- -- -- -- 0.2%
Housewares -- -- -- -- 0.1%
Insurance -- -- -- -- 3.8%
Internet -- -- -- 17.1% 0.3%
Investment Companies 100.2% 99.9% -- -- --
Iron/Steel -- -- -- -- 0.7%
Leisure Time -- -- -- -- 0.1%
Lodging -- -- -- -- 0.3%
Machinery-Construction & Mining -- -- -- -- 0.1%
Machinery-Diversified -- -- 3.2% 1.7% 0.3%
Media -- -- -- -- 2.0%
Metal Fabricate/Hardware -- -- -- -- 0.2%
Metal Fabrication -- -- -- -- --
Mining -- -- 5.3% -- 1.3%
Miscellaneous Manufacturing -- -- 3.1% -- 1.6%
Office Furnishings -- -- -- -- 0.0%^
Office/Business Equipment -- -- -- -- 0.8%
Oil & Gas -- -- -- -- 7.9%
Oil & Gas Services -- -- -- -- 0.0%^
Packaging & Containers -- -- -- -- 0.1%
Pharmaceuticals -- -- 4.7% 2.0% 8.0%
Pipelines -- -- -- -- --
Real Estate -- -- -- -- 1.1%
REITS -- -- -- -- 0.1%
Retail -- -- 9.9% -- 2.2%
Savings & Loans -- -- -- -- --
Semiconductors -- -- 19.2% 19.7% 0.6%
Software -- -- -- 4.4% 0.5%
Sovereign -- -- -- -- --
Storage/Warehousing -- -- -- -- 0.0%^
Telecommunications -- -- 6.1% 32.9% 8.3%
Textiles -- -- -- -- 0.3%
Toys/Games/Hobbies -- -- -- -- 0.2%
Transportation -- -- -- -- 1.4%
Trucking & Leasing -- -- -- -- --
Water -- -- -- -- 0.3%
_______________________________
^ Amount is less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS
114-115 Spread
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
The investment concentrations for the Balanced Fund and Strategic Income Fund as
a percentage of net assets, by industry, as of July 31, 2004, were as follows:
STRATEGIC
BALANCED INCOME
FUND FUND
--------- -----------
Advertising 1.7% --
Aerospace/Defense 1.0% --
Auto Manufacturers 0.2% --
Automobile ABS 4.7% --
Banks 5.0% 14.8%
Beverages 1.2% --
Cash Equivalents 6.2% 2.3%
Chemicals 1.9% --
Closed-end Funds -- 8.6%
Commercial MBS 4.6% --
Computers 3.0% --
Cosmetics/Personal Care 1.3% 0.3%
Credit Card ABS 0.5% 0.3%
Diversified Financial Services 3.8% 22.6%
Electric 1.0% 6.6%
Electrical Components & Equipment 1.5% --
Entertainment -- 0.6%
Food 2.3% 2.1%
Forestry Products & Paper -- 1.0%
Gas -- 0.6%
Healthcare-Products 3.3% --
Holding Companies-Diversified -- 0.6%
Home Furnishings -- 0.3%
Household Products/Wares 1.9% --
BALANCED STRATEGIC
FUND, INCOME FUND,
CONTINUED CONTINUED
--------- ------------
Insurance 5.3% 5.6%
Internet 0.9% --
Investment Companies -- 0.2%
Machinery-Diversified 1.3% --
Media 1.8% 1.1%
Mining 1.3% --
Miscellaneous Manufacturing 3.0% 0.2%
Oil & Gas 4.6% --
Oil & Gas Services 1.1% --
Other ABS 4.0% --
Pharmaceuticals 4.5% 1.4%
Pipelines 0.2% 0.6%
Regional (state/providence) 0.3% --
REITS -- 16.4%
Retail 4.4% 2.1%
Savings & Loans -- 0.4%
Semiconductors 1.5% --
Software 5.2% --
Sovereign 17.7% 5.1%
Telecommunications 3.8% 2.7%
TRAINS 1.2% 0.3%
Transportation 0.8% --
WL Collateral CMO 2.8% 3.7%
The investment concentrations for the Bond Funds as a percentage of net assets,
by industry, as of July 31, 2004, were as follows:
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT
BOND BOND BOND BOND
FUND FUND FUND FUND
------ ------------ ---------- ----------
Auto Manufacturers 0.5% 0.8% -- --
Automobile ABS 5.9% 1.5% 8.8% --
Banks 7.9% 11.8% 12.0% --
Beverages -- 0.2% -- --
Cash Equivalents 10.4% 27.9% 37.8% 5.0%
Chemicals -- 1.3% 0.2% --
Commercial MBS 10.6% 11.1% 4.5% --
Commercial Services 0.6% 0.2% -- --
Computers 0.2% -- 0.9% --
Credit Card ABS 7.7% 0.5% 2.6% --
Development -- -- 0.2% --
Diversified Financial Services 17.6% 20.2% 8.2% --
Electric 2.0% 4.8% 1.3% --
Food -- 0.5% 0.5% --
Gas -- 0.7% 1.1% --
General Obligation 0.7% -- -- --
Healthcare-Products -- 0.3% -- --
Insurance 0.4% 0.1% 2.2% --
Media 1.4% 2.0% 0.5% --
Mining -- -- 0.4% --
Miscellaneous Manufacturing -- 0.4% 0.1% --
Oil & Gas 0.8% 1.7% 1.5% --
Other ABS 5.8% 1.5% 1.7% --
Pipelines 0.5% 0.5% 0.5% --
Regional(state/providence) 0.8% -- -- --
REITS -- 0.1% -- --
Savings & Loans -- 1.1% 0.4% --
Sovereign 52.7% 31.8% 47.7% 99.2%
Telecommunications 1.7% 1.3% 0.8% --
TRAINS -- 2.2% -- --
Transportation 0.1% 0.3% -- --
WL Collateral CMO 4.2% 1.8% 1.9% --
SEE NOTES TO FINANCIAL STATEMENTS
116
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of July 31, 2004, were as follows:
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
--------- ------------ --------- ---------
Airport 12.8% 8.8% -- 2.8%
Cash Equivalents 0.4% 0.1% 1.3% 1.0%
Development 2.7% 6.6% 2.3% 3.1%
Education 6.3% 2.2% 0.7% --
Facilities 1.7% 4.6% 5.9% 7.2%
General 9.8% 7.0% 6.8% 7.7%
General Obligation 14.0% 15.4% 15.0% 4.5%
Higher Education 7.1% 2.6% 17.7% 8.7%
Housing 2.0% 2.6% 2.5% 1.5%
Medical 5.3% 4.8% 15.4% 15.4%
Nursing Homes -- -- -- 0.6%
Pollution -- 0.4% 8.0% 3.4%
Power -- 5.2% 5.8% 1.8%
School District 26.3% 15.9% 8.0% 25.2%
Single Family Housing 0.6% 1.9% 1.3% 2.5%
Student Loan 1.7% 4.8% -- 4.2%
Transportation 3.5% 10.3% 6.4% 6.7%
Utilities 3.0% 5.5% 2.0% --
Water 1.7% 1.2% -- 3.0%
SEE NOTES TO FINANCIAL STATEMENTS
117
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP
GROWTH GROWTH GROWTH CORE
FUND FUND FUND FUND
--------- --------- ----------- ---------
ASSETS:
Investments, at cost $ 249,517 $ 385,716 $ 1,049,002 $ 106,213
Net unrealized appreciation 37,329 48,948 103,863 9,064
--------- --------- ----------- ---------
Investments, at value 286,846 434,664 1,152,865 115,277
Repurchase agreements, at cost -- 26,081 -- 7,570
--------- --------- ----------- ---------
Total Investments 286,846 460,745 1,152,865 122,847
Cash -- 1 -- 7
Interest, dividends and other receivables 10 66 428 151
Receivable for investments sold 3,036 -- 44,305 --
Receivable for Fund shares sold 3 1 97 --
Receivable for variation margin on futures contracts 14 -- -- 5
Receivable from Advisor and affiliates -- -- -- 1
Prepaid expenses and other assets 23 49 60 12
--------- --------- ----------- ---------
Total Assets 289,932 460,862 1,197,755 123,023
--------- --------- ----------- ---------
LIABILITIES:
Payable to Custodian 322 -- 458 --
Payable for investments purchased 409 5,541 40,663 --
Payable for securities loaned 35,821 60,172 20,601 6,081
Payable for Fund shares redeemed 39 20 292 96
Accrued expenses and other payables:
Payable to Advisor and affiliates 162 286 815 74
Distribution and administrative services fees 8 19 74 6
Other 44 31 82 30
--------- --------- ----------- ---------
Total Liabilities 36,805 66,069 62,985 6,287
--------- --------- ----------- ---------
NET ASSETS:
Paid-in Capital 171,065 371,123 1,179,153 151,517
Accumulated net investment income (loss) (14) -- -- 39
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures 44,812 (25,278) (148,246) (43,889)
Net unrealized appreciation on investments and futures 37,264 48,948 103,863 9,069
--------- --------- ----------- ---------
Net Assets $ 253,127 $ 394,793 $ 1,134,770 $ 116,736
========= ========= =========== =========
Market value of securities loaned $ 30,568 $ 58,911 $ 20,233 $ 5,953
========= ========= =========== =========
Net Assets:
Institutional Shares $ 223,439 $ 335,815 $ 882,256 $ 90,222
Class A Shares 25,921 49,586 220,904 25,573
Class B Shares 1,784 6,730 20,947 783
Class C Shares 810 1,700 7,536 158
Advisor Shares 1,173 962 3,127 NA
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- ----------- ---------
Total $ 253,127 $ 394,793 $ 1,134,770 $ 116,736
========= ========= =========== =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 14,430 25,907 60,375 6,833
Class A Shares 1,707 3,898 15,362 1,961
Class B Shares 119 544 1,498 60
Class C Shares 54 142 553 12
Advisor Shares 77 76 219 NA
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- ----------- ---------
Total 16,387 30,567 78,007 8,866
========= ========= =========== =========
Net Asset Value
Institutional Shares $ 15.48 $ 12.96 $ 14.61 $ 13.20
========= ========= =========== =========
Class A Shares-redemption price per share $ 15.18 $ 12.72 $ 14.38 $ 13.04
========= ========= =========== =========
Class B Shares-offering price per share* $ 15.02 $ 12.38 $ 13.99 $ 13.08
========= ========= =========== =========
Class C Shares-offering price per share* $ 15.03 $ 11.94 $ 13.63 $ 13.08
========= ========= =========== =========
Advisor Shares $ 15.25 $ 12.65 $ 14.29 NA
========= ========= =========== =========
Select Shares NA NA NA NA
========= ========= =========== =========
Preferred Shares NA NA NA NA
========= ========= =========== =========
Trust 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) $ 15.98 $ 13.39 $ 15.14 $ 13.73
========= ========= =========== =========
EQUITY MICRO CAP SMALL CAP
INDEX BALANCED VALUE VALUE
FUND FUND FUND FUND
--------- --------- ----------- ---------
ASSETS:
Investments, at cost $ 334,979 $ 202,528 $ 167,603 $ 91,168
Net unrealized appreciation 235,411 8,636 63,489 5,737
--------- --------- ----------- ---------
Investments, at value 570,390 211,164 231,092 96,905
Repurchase agreements, at cost 3,092 -- 16,836 17,525
--------- --------- ----------- ---------
Total Investments 573,482 211,164 247,928 114,430
Cash -- -- 3,100 1
Interest, dividends and other receivables 710 445 142 71
Receivable for investments sold -- 497 1,209 1,074
Receivable for Fund shares sold 15 7 -- 35
Receivable for variation margin on futures contracts 15 -- -- --
Receivable from Advisor and affiliates 11 -- -- --
Prepaid expenses and other assets 47 47 51 9
--------- --------- ----------- ---------
Total Assets 574,280 212,160 252,430 115,620
--------- --------- ----------- ---------
LIABILITIES:
Payable to Custodian 12 -- -- --
Payable for investments purchased -- 15,232 640 3,171
Payable for securities loaned 39,342 6,089 -- --
Payable for Fund shares redeemed 105 113 247 7
Accrued expenses and other payables:
Payable to Advisor and affiliates 57 136 221 126
Distribution and administrative services fees 61 31 20 2
Other 44 22 27 23
--------- --------- ----------- ---------
Total Liabilities 39,621 21,623 1,155 3,329
--------- --------- ----------- ---------
NET ASSETS:
Paid-in Capital 361,150 241,344 173,084 95,751
Accumulated net investment income (loss) 416 204 -- --
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures (62,233) (59,647) 14,702 10,803
Net unrealized appreciation on investments and futures 235,326 8,636 63,489 5,737
--------- --------- ----------- ---------
Net Assets $ 534,659 $ 190,537 $ 251,275 $ 112,291
========= ========= =========== =========
Market value of securities loaned $ 38,424 $ 5,962 $ -- $ --
========= ========= =========== =========
Net Assets:
Institutional Shares $ 193,734 $ 98,282 $ 155,798 $ 107,344
Class A Shares 72,944 74,231 41,402 2,277
Class B Shares 3,776 13,117 6,937 503
Class C Shares 1,990 4,731 5,624 561
Advisor Shares 1,296 176 41,514 1,606
Select Shares 14,315 NA NA NA
Preferred Shares 165,845 NA NA NA
Trust Shares 80,759 NA NA NA
--------- --------- ----------- ---------
Total $ 534,659 $ 190,537 $ 251,275 $ 112,291
========= ========= =========== =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 9,219 8,189 15,102 5,365
Class A Shares 3,483 6,222 4,083 114
Class B Shares 181 1,112 697 25
Class C Shares 95 402 565 28
Advisor Shares 62 15 4,115 81
Select Shares 682 NA NA NA
Preferred Shares 7,894 NA NA NA
Trust Shares 3,844 NA NA NA
--------- --------- ----------- ---------
Total 25,460 15,940 24,562 5,613
========= ========= =========== =========
Net Asset Value
Institutional Shares $ 21.01 $ 12.00 $ 10.32 $ 20.01
========= ========= =========== =========
Class A Shares-redemption price per share $ 20.94 $ 11.93 $ 10.14 $ 19.95
========= ========= =========== =========
Class B Shares-offering price per share* $ 20.83 $ 11.80 $ 9.96 $ 19.76
========= ========= =========== =========
Class C Shares-offering price per share* $ 20.84 $ 11.78 $ 9.96 $ 19.74
========= ========= =========== =========
Advisor Shares $ 20.92 $ 11.91 $ 10.09 $ 19.89
========= ========= =========== =========
Select Shares $ 21.00 NA NA NA
========= ========= =========== =========
Preferred Shares $ 21.01 NA NA NA
========= ========= =========== =========
Trust Shares $ 21.01 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) $ 22.04 $ 12.56 $ 10.67 $ 21.00
========= ========= =========== =========
DISCIPLINED
MULTI CAP LARGE CAP LIFEMODEL
VALUE VALUE AGGRESSIVE
FUND FUND FUND SM
--------- --------- -----------
ASSETS:
Investments, at cost $ 259,754 $ 579,934 $ 94,255
Net unrealized appreciation 68,644 100,229 10,183
--------- --------- -----------
Investments, at value 328,398 680,163 104,438
Repurchase agreements, at cost 35,442 27,886 --
--------- --------- -----------
Total Investments 363,840 708,049 104,438#
Cash 1 1 --
Interest, dividends and other receivables 265 1,183 1
Receivable for investments sold -- 17,182 --
Receivable for Fund shares sold 65 38 56
Receivable for variation margin on futures contracts -- -- --
Receivable from Advisor and affiliates -- -- 4
Prepaid expenses and other assets 23 45 10
--------- --------- -----------
Total Assets 364,194 726,498 104,509
--------- --------- -----------
LIABILITIES:
Payable to Custodian -- -- --
Payable for investments purchased -- 17,469 --
Payable for securities loaned 32,521 47,987 --
Payable for Fund shares redeemed 328 39 120
Accrued expenses and other payables:
Payable to Advisor and affiliates 291 463 6
Distribution and administrative services fees 43 10 20
Other 25 33 7
--------- --------- -----------
Total Liabilities 33,208 66,001 153
--------- --------- -----------
NET ASSETS:
Paid-in Capital 252,522 548,218 93,718
Accumulated net investment income (loss) -- 492 --
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures 9,820 11,558 455
Net unrealized appreciation on investments and futures 68,644 100,229 10,183
--------- --------- -----------
Net Assets $ 330,986 $ 660,497 $ 104,356
========= ========= ===========
Market value of securities loaned $ 31,754 $ 46,739 $ --
========= ========= ===========
Net Assets:
Institutional Shares $ 235,228 $ 632,120 $ 52,085
Class A Shares 33,156 21,738 38,249
Class B Shares 18,795 4,807 12,106
Class C Shares 3,824 1,832 1,916
Advisor Shares 39,983 NA NA
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- --------- -----------
Total $ 330,986 $ 660,497 $ 104,356
========= ========= ===========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 10,416 46,740 4,170
Class A Shares 1,483 1,610 3,072
Class B Shares 857 353 984
Class C Shares 174 137 156
Advisor Shares 1,794 NA NA
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- --------- -----------
Total 14,724 48,840 8,382
========= ========= ===========
Net Asset Value
Institutional Shares $ 22.58 $ 13.52 $ 12.49
========= ========= ===========
Class A Shares-redemption price per share $ 22.36 $ 13.50 $ 12.45
========= ========= ===========
Class B Shares-offering price per share* $ 21.94 $ 13.61 $ 12.30
========= ========= ===========
Class C Shares-offering price per share* $ 21.93 $ 13.40 $ 12.30
========= ========= ===========
Advisor Shares $ 22.29 NA NA
========= ========= ===========
Select Shares NA NA NA
========= ========= ===========
Preferred Shares NA NA NA
========= ========= ===========
Trust Shares NA NA NA
========= ========= ===========
Maximum sales charge-Class A Shares 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) $ 23.54 $ 14.21 $ 13.11
========= ========= ===========
_______________________
* 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
118-119 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUND SM FUND SM FUND SM FUND SM
---------- ---------- ---------- ----------
ASSETS:
Investments, at cost $ 206,485 $ 449,438 $ 98,278 $ 53,755
Net unrealized appreciation/(depreciation) 18,063 8,199 5,532 950
---------- ---------- ---------- ----------
Investments, at value 224,548 457,637 103,810 54,705
Repurchase agreements, at cost -- -- -- --
---------- ---------- ---------- ----------
Total Investments 224,548# 457,637# 103,810# 54,705#
Cash -- -- -- --^
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $12,037,
$0, $0 and $0, respectively) -- -- -- --
Interest, dividends and other receivables 3 4 1 --^
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 215 146 54 75
Receivable for forward foreign currency contracts -- -- -- --
Receivable for variation margin on futures contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 8 15 4 3
Prepaid expenses and other assets 20 14 10 12
---------- ---------- ---------- ----------
Total Assets 224,794 457,816 103,879 54,795
---------- ---------- ---------- ----------
LIABILITIES:
Payable to Custodian -- -- -- --
Distributions payable -- -- -- --
Payable for investments purchased -- -- -- --
Payable for securities loaned -- -- -- --
Payable for Fund shares redeemed 25 140 189 16
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 12 25 6 3
Distribution and administrative services fees 60 57 30 21
Other 12 26 8 6
---------- ---------- ---------- ----------
Total Liabilities 109 248 233 46
---------- ---------- ---------- ----------
NET ASSETS:
Paid-in Capital 205,452 448,297 97,403 53,391
Accumulated net investment income (loss) 82 487 128 93
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency 1,088 585 583 315
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 18,063 8,199 5,532 950
---------- ---------- ---------- ----------
Net Assets $ 224,685 $ 457,568 $ 103,646 $ 54,749
========== ========== ========== ==========
Market value of securities loaned $ -- $ -- $ -- $ --
========== ========== ========== ==========
Net Assets:
Institutional Shares $ 82,264 $ 315,055 $ 38,097 $ 14,201
Class A Shares 94,739 98,293 40,851 20,461
Class B Shares 39,636 36,778 21,122 13,524
Class C Shares 8,046 7,442 3,576 6,563
Advisor Shares NA NA NA NA
---------- ---------- ---------- ----------
Total $ 224,685 $ 457,568 $ 103,646 $ 54,749
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 6,590 27,225 3,478 1,332
Class A Shares 7,600 8,504 3,736 1,923
Class B Shares 3,192 3,196 1,938 1,274
Class C Shares 648 647 328 619
Advisor Shares NA NA NA NA
---------- ---------- ---------- ----------
Total 18,030 39,572 9,480 5,148
========== ========== ========== ==========
Net Asset Value
Institutional Shares $ 12.48 $ 11.57 $ 10.95 $ 10.66
========== ========== ========== ==========
Class A Shares-redemption price per share $ 12.47 $ 11.56 $ 10.93 $ 10.64
========== ========== ========== ==========
Class B Shares-offering price per share* $ 12.42 $ 11.51 $ 10.90 $ 10.61
========== ========== ========== ==========
Class C Shares-offering price per share* $ 12.41 $ 11.51 $ 10.90 $ 10.61
========== ========== ========== ==========
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) $ 13.13 $ 12.17 $ 11.51 $ 11.20
========== ========== ========== ==========
STRATEGIC SELECT INTERNATIONAL
INCOME STOCK TECHNOLOGY EQUITY
FUND FUND FUND FUND
---------- ---------- ---------- ----------
ASSETS:
Investments, at cost $ 165,793 $ 16,650 $ 54,246 $ 393,544
Net unrealized appreciation/(depreciation) 2,683 799 (1,888) (30,500)
---------- ---------- ---------- ----------
Investments, at value 168,476 17,449 52,358 363,044
Repurchase agreements, at cost 3,974 219 169 17,779
---------- ---------- ---------- ----------
Total Investments 172,450 17,668 52,527 380,823
Cash 1 1 -- 3,767
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $12,037,
$0, $0 and $0, respectively) -- -- -- 11,827
Interest, dividends and other receivables 1,036 9 1 283
Receivable for investments sold -- 1,206 3,488 --
Receivable for Fund shares sold 32 4 6 3
Receivable for forward foreign currency contracts -- -- -- 424
Receivable for variation margin on futures contracts -- -- -- 136
Reclaims receivable -- -- -- 166
Receivable from Advisor and affiliates -- 10 2 6
Prepaid expenses and other assets 24 29 41 67
---------- ---------- ---------- ----------
Total Assets 173,543 18,927 56,065 397,502
---------- ---------- ---------- ----------
LIABILITIES:
Payable to Custodian -- -- 46 --
Distributions payable 609 -- -- --
Payable for investments purchased 810 1,324 3,339 --
Payable for securities loaned -- -- 4,497 34,935
Payable for Fund shares redeemed 294 4 8 41
Payable for forward foreign currency contracts -- -- -- 606
Accrued expenses and other payables:
Payable to Advisor and affiliates 151 13 44 324
Distribution and administrative services fees 51 3 5 11
Other 10 5 8 26
---------- ---------- ---------- ----------
Total Liabilities 1,925 1,349 7,947 35,943
---------- ---------- ---------- ----------
NET ASSETS:
Paid-in Capital 169,474 34,567 101,920 441,767
Accumulated net investment income (loss) (169) -- -- 4,002
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (370) (17,788) (51,914) (52,202)
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 2,683 799 (1,888) (32,008)
---------- ---------- ---------- ----------
Net Assets $ 171,618 $ 17,578 $ 48,118 $ 361,559
========== ========== ========== ==========
Market value of securities loaned $ -- $ -- $ 3,509 $ 34,106
========== ========== ========== ==========
Net Assets:
Institutional Shares $ 90,995 $ 7,166 $ 37,573 $ 324,852
Class A Shares 954 9,391 7,105 22,999
Class B Shares 389 441 1,436 793
Class C Shares 39,298 580 1,757 555
Advisor Shares 39,982 NA 247 12,360
---------- ---------- ---------- ----------
Total $ 171,618 $ 17,578 $ 48,118 $ 361,559
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 8,163 375 4,439 34,859
Class A Shares 86 499 848 2,465
Class B Shares 35 24 176 86
Class C Shares 3,555 32 217 62
Advisor Shares 3,596 NA 30 1,328
---------- ---------- ---------- ----------
Total 15,435 930 5,710 38,800
========== ========== ========== ==========
Net Asset Value
Institutional Shares $ 11.15 $ 19.10 $ 8.46 $ 9.32
========== ========== ========== ==========
Class A Shares-redemption price per share $ 11.12 $ 18.82 $ 8.38 $ 9.33
========== ========== ========== ==========
Class B Shares-offering price per share* $ 11.12 $ 18.51 $ 8.14 $ 9.23
========== ========== ========== ==========
Class C Shares-offering price per share* $ 11.05 $ 18.01 $ 8.11 $ 8.99
========== ========== ========== ==========
Advisor Shares $ 11.12 NA $ 8.31 $ 9.31
========== ========== ========== ==========
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)
$ 11.71 $ 19.81 $ 8.82 $ 9.82
========== ========== ========== ==========
INTERMEDIATE SHORT TERM
BOND BOND BOND
FUND FUND FUND
---------- ---------- ----------
ASSETS:
Investments, at cost $ 401,311 $ 904,619 $ 713,928
Net unrealized appreciation/(depreciation) 4,504 6,430 (2,501)
---------- ---------- ----------
Investments, at value 405,815 911,049 711,427
Repurchase agreements, at cost -- -- --
---------- ---------- ----------
Total Investments 405,815 911,049 711,427
Cash -- 44 --
Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $12,037,
$0, $0 and $0, respectively) -- -- --
Interest, dividends and other receivables 1,634 7,423 4,013
Receivable for investments sold 1,535 -- 7,561
Receivable for Fund shares sold 24 -- 25
Receivable for forward foreign currency contracts -- -- --
Receivable for variation margin on futures contracts -- -- --
Reclaims receivable -- -- --
Receivable from Advisor and affiliates 4 5 3
Prepaid expenses and other assets 48 41 22
---------- ---------- ----------
Total Assets 409,060 918,562 723,051
---------- ---------- ----------
LIABILITIES:
Payable to Custodian -- -- --
Distributions payable -- -- --
Payable for investments purchased 83,645 879 7,215
Payable for securities loaned 18,961 197,705 190,915
Payable for Fund shares redeemed 48 103 585
Payable for forward foreign currency contracts -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 165 358 239
Distribution and administrative services fees 10 10 7
Other 31 61 31
---------- ---------- ----------
Total Liabilities 102,860 199,116 198,992
---------- ---------- ----------
NET ASSETS:
Paid-in Capital 305,211 742,858 540,021
Accumulated net investment income (loss) 49 194 72
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (3,564) (30,036) (13,533)
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 4,504 6,430 (2,501)
---------- ---------- ----------
Net Assets $ 306,200 $ 719,446 $ 524,059
========== ========== ==========
Market value of securities loaned $ 16,966 $ 191,548 $ 184,465
========== ========== ==========
Net Assets:
Institutional Shares $ 277,706 $ 676,344 $ 495,271
Class A Shares 22,559 37,500 28,262
Class B Shares 4,512 3,982 NA
Class C Shares 768 1,620 526
Advisor Shares 655 NA NA
---------- ---------- ----------
Total $ 306,200 $ 719,446 $ 524,059
========== ========== ==========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 27,703 68,108 51,775
Class A Shares 2,252 3,768 2,957
Class B Shares 450 402 NA
Class C Shares 77 163 55
Advisor Shares 65 NA NA
---------- ---------- ----------
Total 30,547 72,441 54,787
========== ========== ==========
Net Asset Value
Institutional Shares $ 10.02 $ 9.93 $ 9.57
========== ========== ==========
Class A Shares-redemption price per share $ 10.02 $ 9.95 $ 9.56
========== ========== ==========
Class B Shares-offering price per share* $ 10.02 $ 9.90 NA
========== ========== ==========
Class C Shares-offering price per share* $ 10.02 $ 9.92 $ 9.56
========== ========== ==========
Advisor Shares $ 10.02 NA NA
========== ========== ==========
Maximum sales charge-Class A Shares 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)
$ 10.52 $ 10.31 $ 9.91
========== ========== ==========
____________________________
* 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
120-121 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
(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 $ 82,159 $ 57,117 $ 249,709 $ 155,391 $ 113,737
Net unrealized appreciation 377 4,622 11,200 5,449 1,470
---------- --------- ---------- ---------- ---------
Total Investments 82,536 61,739 260,909 160,840 115,207
Cash 15 -- -- -- --
Interest, dividends and other receivables 718 742 2,648 1,698 1,321
Receivable for investments sold -- -- 2,882 -- --
Receivable from Advisor and affiliates -- 2 3 -- 2
Prepaid expenses and other assets 34 16 35 26 9
---------- --------- ---------- ---------- ---------
Total Assets 83,303 62,499 266,477 162,564 116,539
---------- --------- ---------- ---------- ---------
LIABILITIES:
Payable for investments purchased 4,033 -- 5,180 -- 451
Payable for Fund shares redeemed -- 33 -- 110 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 32 32 131 80 49
Distribution and administrative services fees 10 2 2 13 4
Other 7 8 24 14 12
---------- --------- ---------- ---------- ---------
Total Liabilities 4,082 75 5,337 217 516
---------- --------- ---------- ---------- ---------
NET ASSETS:
Paid-in Capital 79,197 55,521 247,517 155,814 114,555
Accumulated net investment income 47 10 96 25 8
Accumulated net realized gain/(loss) from
investment transactions (400) 2,271 2,327 1,059 (10)
Net unrealized appreciation on investments 377 4,622 11,200 5,449 1,470
---------- --------- ---------- ---------- ---------
Net Assets $ 79,221 $ 62,424 $ 261,140 $ 162,347 $ 116,023
========== ========= ========== ========== =========
Net Assets:
Institutional Shares $ 43,820 $ 57,638 $ 255,026 $ 126,343 $ 105,361
Class A Shares 31,146 2,462 4,479 26,962 7,294
Class B Shares NA 1,528 1,269 4,714 1,574
Class C Shares 4,255 363 366 4,328 1,794
Advisor Shares NA 433 NA NA NA
---------- --------- ---------- ---------- ---------
Total $ 79,221 $ 62,424 $ 261,140 $ 162,347 $ 116,023
========== ========= ========== ========== =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 4,332 5,545 24,211 12,166 10,355
Class A Shares 3,075 236 425 2,596 718
Class B Shares NA 147 121 463 155
Class C Shares 423 35 35 418 177
Advisor Shares NA 42 NA NA NA
---------- --------- ---------- ---------- ---------
Total 7,830 6,005 24,792 15,643 11,405
========== ========= ========== ========== =========
Net Asset Value
Institutional Shares $ 10.12 $ 10.40 $ 10.53 $ 10.39 $ 10.17
========== ========= ========== ========== =========
Class A Shares-redemption price per share $ 10.13 $ 10.43 $ 10.54 $ 10.39 $ 10.16
========== ========= ========== ========== =========
Class B Shares-offering price per share* NA $ 10.37 $ 10.51 $ 10.18 $ 10.16
========== ========= ========== ========== =========
Class C Shares-offering price per share* $ 10.05 $ 10.38 $ 10.53 $ 10.35 $ 10.16
========== ========= ========== ========== =========
Advisor Shares NA $ 10.39 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) $ 10.64 $ 10.95 $ 10.92 $ 10.91 $ 10.67
========== ========= ========== ========== =========
____________________
* Redemption price per share varies by length of time shares are held.
SEE NOTES TO FINANCIAL STATEMENTS
122
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY
GROWTH GROWTH GROWTH CORE INDEX
FUND FUND FUND FUND FUND (a)
--------- --------- --------- --------- ---------
INVESTMENT INCOME:
Interest income $ 18 $ 26 $ 10 $ 3 $ 2
Dividend income 738 1,551 9,581 2,597 9,836
Income from securities lending 201 89 45 3 18
--------- --------- --------- --------- ---------
Total Investment Income 957 1,666 9,636 2,603 9,856
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 2,397 3,295 9,282 1,037 1,745
Administrative fees 593 713 2,008 256 1,007
Distribution services fees-Class A Shares 66 129 602 65 159
Distribution services fees-Class B Shares 18 69 225 7 33
Distribution services fees-Class C Shares 6 13 66 1 14
Distribution services fees-Advisor Shares 5 4 13 NA 4
Administrative services fees-Class C Shares 2 4 22 --^ 5
Administrative services fees-Select Shares NA NA NA NA 6
Administrative services fees-Preferred Shares NA NA NA NA 172
Administrative services fees-Trust Shares NA NA NA NA 172
Accounting fees 121 130 244 71 201
Registration and filing fees 20 25 35 18 27
Transfer and dividend disbursing agent fees 136 163 439 78 218
Custody fees 42 32 49 33 60
Trustees' fees and expenses 7 7 20 3 10
Other expenses 107 114 337 43 214
--------- --------- --------- --------- ---------
Total expenses 3,520 4,698 13,342 1,612 4,047
--------- --------- --------- --------- ---------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates -- -- -- (179) (2,082)
--------- --------- --------- --------- ---------
Net Expenses 3,520 4,698 13,342 1,433 1,965
--------- --------- --------- --------- ---------
Net Investment Income/(Loss) (2,563) (3,032) (3,706) 1,170 7,891
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES)
FROM INVESTMENTS, OPTIONS AND FUTURES:
Net realized gains/(losses) on investment
transactions and option contracts 122,151+ 18,823 (1,831) 13,266 27,907
Net realized gains on futures transactions 1,907 -- -- 629 1,865
Change in unrealized appreciation/depreciation
on investments, options and futures (79,194) 14,211 28,290 4,314 35,942
--------- --------- --------- --------- ---------
Net realized and unrealized gains on investments,
options and futures 44,864 33,034 26,459 18,209 65,714
--------- --------- --------- --------- ---------
Change in net assets resulting from operations $ 42,301 $ 30,002 $ 22,753 $ 19,379 $ 73,605
========= ========= ========= ========= =========
__________________________
(a) Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select, Preferred and
Trust Shares.
^ Represents fewer than five hundred dollars.
+ Includes realized losses from option contracts in the amount of $18.
SEE NOTES TO FINANCIAL STATEMENTS
123
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
MICRO CAP SMALL CAP MULTI CAP
BALANCED VALUE VALUE VALUE
FUND FUND FUND FUND
--------- --------- --------- ---------
INVESTMENT INCOME:
Interest income $ 3,024 $ 360 $ 38 $ 312
Dividend income 2,280 2,214 873 4,498
Income from securities lending 18 -- -- 71
--------- --------- --------- ---------
Total Investment Income 5,322 2,574 911 4,881
--------- --------- --------- ---------
EXPENSES:
Investment advisory fees 1,946 2,375 801 3,067
Administrative fees 421 411 154 531
Distribution services fees-Class A Shares 203 99 3 72
Distribution services fees-Class B Shares 140 65 3 172
Distribution services fees-Class C Shares 43 31 3 23
Distribution services fees-Advisor Shares 1 197 4 209
Administrative services fees-Class C Shares 14 10 1 8
Accounting fees 103 94 107 107
Registration and filing fees 26 23 10 13
Transfer and dividend disbursing agent fees 130 137 82 141
Custody fees 35 44 75 32
Trustees' fees and expenses 4 4 2 5
Other expenses 89 83 17 93
--------- --------- --------- ---------
Total expenses 3,155 3,573 1,262 4,473
--------- --------- --------- ---------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates -- -- (137) --
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- (109) -- --
--------- --------- --------- ---------
Net Expenses 3,155 3,464 1,125 4,473
--------- --------- --------- ---------
Net Investment Income/(Loss) 2,167 (890) (214) 408
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains on investment transactions 15,483 26,765 15,827 16,925
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on investments 708 32,423 (1,332) 31,860
--------- --------- --------- ---------
Net realized and unrealized gains on investments 16,191 59,188 14,495 48,785
--------- --------- --------- ---------
Change in net assets resulting from operations $ 18,358 $ 58,298 $ 14,281 $ 49,193
========= ========= ========= =========
DISCIPLINED LIFEMODEL
LARGE CAP LIFEMODEL MODERATELY LIFEMODEL
VALUE AGGRESSIVE AGGRESSIVE MODERATE
FUND FUND SM FUND SM FUND SM
---------- --------- --------- ---------
INVESTMENT INCOME:
Interest income $ 67 -- -- --
Dividend income 11,801 $ 885# $ 2,834# $ 5,111#
Income from securities lending 13 -- -- --
---------- --------- --------- ---------
Total Investment Income 11,881 885 2,834 5,111
---------- --------- --------- ---------
EXPENSES:
Investment advisory fees 4,062 115 259 393
Administrative fees 879 133 299 454
Distribution services fees-Class A Shares 51 66 180 173
Distribution services fees-Class B Shares 41 83 277 276
Distribution services fees-Class C Shares 11 11 36 36
Distribution services fees-Advisor Shares NA NA NA NA
Administrative services fees-Class C Shares 4 4 12 12
Accounting fees 136 48 54 72
Registration and filing fees 25 4 7 6
Transfer and dividend disbursing agent fees 160 55 92 108
Custody fees 33 17 22 24
Trustees' fees and expenses 8 1 3 4
Other expenses 119 21 46 60
---------- --------- --------- ---------
Total expenses 5,529 558 1,287 1,618
---------- --------- --------- ---------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates -- (332) (642) (909)
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- -- -- --
---------- --------- --------- ---------
Net Expenses
5,529 226 645 709
---------- --------- --------- ---------
Net Investment Income/(Loss)
6,352 659 2,189 4,402
---------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains on investment transactions 19,590 642+ 1,450+ 1,610+
Realized gain distributions from underlying funds -- 773 1,350 1,019
Change in unrealized appreciation/depreciation on investments 53,831 3,010 5,940 (1,694)
---------- --------- --------- ---------
Net realized and unrealized gains on investments 73,421 4,425 8,740 935
---------- --------- --------- ---------
Change in net assets resulting from operations $ 79,773 $ 5,084 $ 10,929 $ 5,337
========== ========= ========= =========
LIFEMODEL
MODERATELY LIFEMODEL STRATEGIC
CONSERVATIVE CONSERVATIVE INCOME
FUND SM FUND SM FUND (a)
----------- ----------- -----------
INVESTMENT INCOME:
Interest income -- -- $ 1,700
Dividend income $ 2,198# $ 1,376# 8,453
Income from securities lending -- -- --
----------- ----------- -----------
Total Investment Income 2,198 1,376 10,153
----------- ----------- -----------
EXPENSES:
Investment advisory fees 137 71 1,703
Administrative fees 158 82 295
Distribution services fees-Class A Shares 84 42 --^
Distribution services fees-Class B Shares 163 117 1
Distribution services fees-Class C Shares 18 36 318
Distribution services fees-Advisor Shares NA NA 203
Administrative services fees-Class C Shares 6 12 106
Accounting fees 47 46 73
Registration and filing fees 4 4 19
Transfer and dividend disbursing agent fees 56 44 85
Custody fees 17 15 24
Trustees' fees and expenses 2 1 3
Other expenses 24 14 62
----------- ----------- -----------
Total expenses 716 484 2,892
----------- ----------- -----------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (372) (239) --
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- -- --
----------- ----------- -----------
Net Expenses
344 245 2,892
----------- ----------- -----------
Net Investment Income/(Loss)
1,854 1,131 7,261
----------- ----------- -----------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains on investment transactions 1,320+ 861+ 1,407
Realized gain distributions from underlying funds 466 172 --
Change in unrealized appreciation/depreciation on investments 1,210 (336) 878
----------- ----------- -----------
Net realized and unrealized gains on investments 2,996 697 2,285
----------- ----------- -----------
Change in net assets resulting from operations $ 4,850 $ 1,828 $ 9,546
=========== =========== ===========
_______________________________
(a) Represents the period from April 1, 2004 (date of commencement of
operations) to July 31, 2004 for Class A and Class B shares.
^ Represents fewer than five hundred dollars.
# Represents income from affiliates.
+ Represents realized gains from investment transactions with affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
124-125 Spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SELECT INTERNATIONAL
STOCK TECHNOLOGY EQUITY BOND
FUND FUND FUND (a) FUND
--------- --------- ------------ ---------
INVESTMENT INCOME:
Interest income $ --^ $ 1 $ 103 $ 11,312
Dividend income 157 50 7,250 75
Foreign tax withholding -- -- (854) --
Income from securities lending 1 23 202 38
--------- --------- ------------ ---------
Total Investment Income 158 74 6,701 11,425
--------- --------- ------------ ---------
EXPENSES:
Investment advisory fees 174 536 3,379 1,933
Administrative fees 38 93 585 558
Distribution services fees-Class A Shares 25 21 48 59
Distribution services fees-Class B Shares 4 17 6 62
Distribution services fees-Class C Shares 5 16 3 7
Distribution services fees-Advisor Shares NA 1 48 3
Administrative services fees-Class C Shares 2 5 1 2
Accounting fees 62 72 212 121
Registration and filing fees 35 27 41 26
Transfer and dividend disbursing agent fees 43 58 126 121
Custody fees 11 19 297 36
Trustees' fees and expenses --^ 1 6 6
Other expenses 18 29 142 95
--------- --------- ------------ ---------
Total expenses 417 895 4,894 3,029
--------- --------- ------------ ---------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (68) (189) (187) (339)
Distribution services-Class A Shares and Class B Shares waived -- -- -- --
--------- --------- ------------ ---------
Net Expenses 349 706 4,707 2,690
--------- --------- ------------ ---------
Net Investment Income/(Loss) (191) (632) 1,994 8,735
--------- --------- ------------ ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 1,542 7,023 36,267 1,860
Net realized gains on futures transactions -- -- 2,518 --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency (34) (11,739) 16,818 1,720
--------- --------- ------------ ---------
Net realized and unrealized gains/(losses)
on investments, futures and foreign currency 1,508 (4,716) 55,603 3,580
--------- --------- ------------ ---------
Change in net assets resulting from operations $ 1,317 $ (5,348) $ 57,597 $ 12,315
========= ========= ============ =========
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT MUNICIPAL
BOND BOND BOND BOND
FUND FUND (b) FUND FUND
------------- ---------- ---------- ----------
INVESTMENT INCOME:
Interest income $ 29,959 $ 13,270 $ 2,563 $ 3,526
Dividend income 224 159 32 14
Foreign tax withholding -- -- -- --
Income from securities lending 184 57 -- --
------------- ---------- ---------- ----------
Total Investment Income 30,367 13,486 2,595 3,540
------------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees 4,298 2,498 458 402
Administrative fees 1,353 865 144 127
Distribution services fees-Class A Shares 99 76 80 6
Distribution services fees-Class B Shares 47 NA NA 14
Distribution services fees-Class C Shares 14 2 51 4
Distribution services fees-Advisor Shares NA NA NA 2
Administrative services fees-Class C Shares 5 1 17 1
Accounting fees 199 138 55 77
Registration and filing fees 29 20 20 18
Transfer and dividend disbursing agent fees 232 147 43 52
Custody fees 43 30 16 13
Trustees' fees and expenses 14 9 1 1
Other expenses 200 124 25 28
------------- ---------- ---------- ----------
Total expenses 6,533 3,910 910 745
------------- ---------- ---------- ----------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (429) (143) (124) (142)
Distribution services-Class A Shares and Class B Shares waived (16) (21) -- --
------------- ---------- ---------- ----------
Net Expenses 6,088 3,746 786 603
------------- ---------- ---------- ----------
Net Investment Income/(Loss) 24,279 9,740 1,809 2,937
------------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions (5,790) 535 (181) 2,753
Net realized gains on futures transactions -- -- -- --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency 2,154 (3,782) 516 (2,134)
------------- ---------- ---------- ----------
Net realized and unrealized gains/(losses)
on investments, futures and foreign currency (3,636) (3,247) 335 619
------------- ---------- ---------- ----------
Change in net assets resulting from operations $ 20,643 $ 6,493 $ 2,144 $ 3,556
============= ========== ========== ==========
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND
FUND FUND FUND
------------ ---------- ----------
INVESTMENT INCOME:
Interest income $ 12,120 $ 7,315 $ 4,435
Dividend income 37 20 24
Foreign tax withholding -- -- --
Income from securities lending -- -- --
------------ ---------- ----------
Total Investment Income 12,157 7,335 4,459
------------ ---------- ----------
EXPENSES:
Investment advisory fees 1,613 968 583
Administrative fees 508 305 224
Distribution services fees-Class A Shares 12 62 18
Distribution services fees-Class B Shares 13 50 18
Distribution services fees-Class C Shares 4 40 22
Distribution services fees-Advisor Shares NA NA NA
Administrative services fees-Class C Shares 1 13 7
Accounting fees 112 78 79
Registration and filing fees 22 25 9
Transfer and dividend disbursing agent fees 97 71 59
Custody fees 27 20 18
Trustees' fees and expenses 5 3 2
Other expenses 73 48 38
------------ ---------- ----------
Total expenses 2,487 1,683 1,077
------------ ---------- ----------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (315) (141) (117)
Distribution services-Class A Shares and Class B Shares waived (5) -- (7)
------------ ---------- ----------
Net Expenses 2,167 1,542 953
------------ ---------- ----------
Net Investment Income/(Loss) 9,990 5,793 3,506
------------ ---------- ----------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 2,428 1,533 (27)
Net realized gains on futures transactions -- -- --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency (2,712) (1,097) (1,404)
------------ ---------- ----------
Net realized and unrealized gains/(losses)
on investments, futures and foreign currency (284) 436 (1,431)
------------ ---------- ----------
Change in net assets resulting from operations $ 9,706 $ 6,229 $ 2,075
============ ========== ==========
___________________
(a) Reflects operations for the period from November 10, 2003 (date of
commencement of operations) to July 31, 2004 for Advisor Shares.
(b) Reflects operations for the period from August 1, 2003 (date of
commencement of operations) to July 31, 2004 for Class C Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
126-127 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP
GROWTH FUND GROWTH FUND QUALITY GROWTH 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,
2004 2003 2004 2003 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (2,563) $ (741) $ (3,032) $ (2,138) $ (3,706) $ (279)
Net realized gains/(losses) on investment
transactions and option contracts 122,151 (3,979) 18,823 (10,988) (1,831) 4,122
Net realized gains on futures transactions 1,907 3,303 -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, options and futures (79,194) 59,599 14,211 72,000 28,290 95,796
---------- ---------- ---------- ---------- ---------- ----------
Change in net assets resulting from operations 42,301 58,182 30,002 58,874 22,753 99,639
---------- ---------- ---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares -- -- -- -- -- (46)
Class A Shares -- -- -- -- -- --
Class B Shares -- -- -- -- -- --
Class C Shares -- -- -- -- -- --
Advisor Shares -- -- -- -- -- --
Select Shares NA NA NA NA NA NA
Preferred Shares NA NA NA NA NA NA
Trust Shares NA NA NA NA NA NA
Distributions from net realized gains:
Institutional Shares (35,732) -- -- -- -- --
Class A Shares (2,457) -- -- -- -- --
Class B Shares (173) -- -- -- -- --
Class C Shares (86) -- -- -- -- --
Advisor Shares (85) -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (38,533) -- -- -- -- (46)
---------- ---------- ---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (161,358) (150,994) (13,609) 75,340 74,523 121,606
---------- ---------- ---------- ---------- ---------- ----------
Change in net assets (157,590) (92,812) 16,393 134,214 97,276 221,199
NET ASSETS:
Beginning of period 410,717 503,529 378,400 244,186 1,037,494 816,295
---------- ---------- ---------- ---------- ---------- ----------
End of period $ 253,127 $ 410,717 $ 394,793 $ 378,400 $1,134,770 $1,037,494
========== ========== ========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ (14) $ (16) $ -- $ -- $ -- $ --
========== ========== ========== ========== ========== ==========
LARGE CAP CORE FUND EQUITY INDEX FUND
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 (a) 2003
---------- ---------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,170 $ 3,395 $ 7,891 $ 8,172
Net realized gains/(losses) on investment
transactions and option contracts 13,266 13,970 27,907 (3,611)
Net realized gains on futures transactions 629 1,494 1,865 4,041
Net change in unrealized appreciation/depreciation
on investments, options and futures 4,314 (14,705) 35,942 48,150
---------- ---------- ---------- ----------
Change in net assets resulting from operations 19,379 4,154 73,605 56,752
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (1,093) (3,186) (4,473) (7,758)
Class A Shares (175) (166) (898) (333)
Class B Shares --^ (1) (21) (10)
Class C Shares --^ --^ (11) (7)
Advisor Shares NA NA (9) (1)
Select Shares NA NA (93) NA
Preferred Shares NA NA (1,664) NA
Trust Shares NA NA (962) NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares NA NA -- --
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (1,268) (3,353) (8,131) (8,109)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (104,527) (342,077) (152,194) (62,594)
---------- ---------- ---------- ----------
Change in net assets (86,416) (341,276) (86,720) (13,951)
NET ASSETS:
Beginning of period 203,152 544,428 621,379 635,330
---------- ---------- ---------- ----------
End of period $ 116,736 $ 203,152 $ 534,659 $ 621,379
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 39 $ 137 $ 416 $ 656
========== ========== ========== ==========
BALANCED FUND MICRO CAP VALUE FUND
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 2,167 $ 3,448 $ (890) $ (806)
Net realized gains/(losses) on investment
transactions and option contracts 15,483 (16,453) 26,765 4,206
Net realized gains on futures transactions -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, options and futures 708 27,794 32,423 33,764
---------- ---------- ---------- ----------
Change in net assets resulting from operations 18,358 14,789 58,298 37,164
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (1,777) (2,806) -- --
Class A Shares (801) (1,006) -- --
Class B Shares (36) (101) -- --
Class C Shares (14) (39) -- --
Advisor Shares (1) (1) -- --
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares -- -- (7,422) (474)
Class A Shares -- -- (2,062) (35)
Class B Shares -- -- (343) (22)
Class C Shares -- -- (188) (6)
Advisor Shares -- -- (2,136) (138)
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (2,629) (3,953) (12,151) (675)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (95,354) (30,491) 55,393 40,352
---------- ---------- ---------- ----------
Change in net assets (79,625) (19,655) 101,540 76,841
NET ASSETS:
Beginning of period 270,162 289,817 149,735 72,894
---------- ---------- ---------- ----------
End of period $ 190,537 $ 270,162 $ 251,275 $ 149,735
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 204 $ 305 $ -- $ --
========== ========== ========== ==========
___________________
(a) Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select, Preferred and Trust
Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
128-129 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MULTI CAP DISCIPLINED LARGE CAP
VALUE FUND VALUE FUND VALUE FUND
---------------------- ---------------------- ----------------------
YEAR PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (a) 2004 2003 2004 2003
--------- --------- --------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (214) $ 67 $ 408 $ (48) $ 6,352 $ 3,965
Net realized gains/(losses) on investment transactions 15,827 942 16,925 (1,746) 19,590 10,102
Realized gain distributions from underlying funds -- -- -- -- -- --
Net change in unrealized appreciation/depreciation
on investments (1,332) 7,069 31,860 43,085 53,831 32,421
--------- --------- --------- --------- --------- ---------
Change in net assets resulting from operations 14,281 8,078 49,193 41,291 79,773 46,488
--------- --------- --------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (67) -- (490) -- (6,088) (3,363)
Class A Shares --^ -- (19) -- (202) (155)
Class B Shares -- -- -- -- (13) (19)
Class C Shares -- -- -- -- (6) (5)
Distributions from net realized gains:
Institutional Shares (3,928) -- (644) -- (12,613) (2,679)
Class A Shares (30) -- (87) -- (566) (184)
Class B Shares (8) -- (52) -- (120) (41)
Class C Shares (17) -- (9) -- (40) (10)
Advisor Shares (21) -- (135) -- NA NA
--------- --------- --------- --------- --------- ---------
Change in net assets from
shareholder distributions (4,071) -- (1,436) -- (19,648) (6,456)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Fund share transactions 28,748 65,255 27,907 94,611 246,013 217,403
--------- --------- --------- --------- --------- ---------
Change in net assets 38,958 73,333 75,664 135,902 306,138 257,435
NET ASSETS:
Beginning of period 73,333 -- 255,322 119,420 354,359 96,924
--------- --------- --------- --------- --------- ---------
End of period $ 112,291 $ 73,333 $ 330,986 $ 255,322 $ 660,497 $ 354,359
========= ========= ========= ========= ========= =========
Accumulated Net Investment Income $ -- $ 68 $ -- $ -- $ 492 $ 449
========= ========= ========= ========= ========= =========
LIFEMODEL LIFEMODEL MODERATELY
AGGRESSIVE FUND SM AGGRESSIVE FUND SM
---------------------- ----------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (b) 2004 2003 (b)
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 659 $ 61 $ 2,189 $ 417
Net realized gains/(losses) on investment transactions 642+ 231+ 1,450+ 377+
Realized gain distributions from underlying funds 773 7 1,350 25
Net change in unrealized appreciation/depreciation
on investments 3,010 7,173 5,940 12,123
--------- --------- --------- ---------
Change in net assets resulting from operations 5,084 7,472 10,929 12,942
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (386) (59) (1,006) (280)
Class A Shares (223) (5) (951) (78)
Class B Shares (55) --^ (169) (9)
Class C Shares (10) --^ (30) (1)
Distributions from net realized gains:
Institutional Shares (499) -- (663) --
Class A Shares (309) -- (707) --
Class B Shares (96) -- (250) --
Class C Shares (19) -- (39) --
Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change in net assets from
shareholder distributions (1,597) (64) (3,815) (368)
--------- --------- --------- ---------
Change in net assets from
Fund share transactions 54,239 39,222 107,096 97,901
--------- --------- --------- ---------
Change in net assets 57,726 46,630 114,210 110,475
NET ASSETS:
Beginning of period 46,630 -- 110,475 --
--------- --------- --------- ---------
End of period $ 104,356 $ 46,630 $ 224,685 $ 110,475
========= ========= ========= =========
Accumulated Net Investment Income $ -- $ -- $ 82 $ 49
========= ========= ========= =========
LIFEMODEL LIFEMODEL MODERATELY
MODERATE FUND SM CONSERVATIVE FUND SM
----------------------- ----------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (b) 2004 2003 (b)
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 4,402 $ 755 $ 1,854 $ 585
Net realized gains/(losses) on investment transactions 1,610+ (161)+ 1,320+ 660+
Realized gain distributions from underlying funds 1,019 23 466 12
Net change in unrealized appreciation/depreciation
on investments (1,694) 9,893 1,210 4,322
--------- --------- --------- ---------
Change in net assets resulting from operations 5,337 10,510 4,850 5,579
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (2,668) (457) (867) (363)
Class A Shares (1,065) (146) (691) (96)
Class B Shares (250) (38) (217) (40)
Class C Shares (44) (3) (33) (4)
Distributions from net realized gains:
Institutional Shares (643) -- (677) --
Class A Shares (561) -- (563) --
Class B Shares (246) -- (264) --
Class C Shares (40) -- (30) --
Advisor Shares NA NA NA NA
--------- --------- --------- ---------
Change in net assets from
shareholder distributions (5,517) (644) (3,342) (503)
--------- --------- --------- ---------
Change in net assets from
Fund share transactions 341,253 106,629 32,177 64,885
--------- --------- --------- ---------
Change in net assets 341,073 116,495 33,685 69,961
NET ASSETS:
Beginning of period 116,495 -- 69,961 --
--------- --------- --------- ---------
End of period $ 457,568 $ 116,495 $ 103,646 $ 69,961
========= ========= ========= =========
Accumulated Net Investment Income $ 487 $ 112 $ 128 $ 82
========= ========= ========= =========
___________________
(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 realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
130-131 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL STRATEGIC SELECT
CONSERVATIVE FUND SM INCOME FUND STOCK FUND
---------------------- ---------------------- ----------------------
YEAR PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (a) 2004 (b) 2003 2004 2003
--------- --------- --------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,131 $ 442 $ 7,261 $ 4,161 $ (191) $ (191)
Net realized gains/(losses) on investment
and foreign currency transactions 861+ 110+ 1,407 (382) 1,542 (3,768)
Net realized gains on futures transactions -- -- -- -- -- --
Realized gain distributions from underlying funds 172 7 -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency (336) 1,286 878 622 (34) 3,941
--------- --------- --------- --------- --------- ---------
Change in net assets resulting from operations 1,828 1,845 9,546 4,401 1,317 (18)
--------- --------- --------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (372) (194) (4,080) (1,881) -- --
Class A Shares (430) (107) (9) NA -- --
Class B Shares (205) (69) (3) NA -- --
Class C Shares (89) (14) (1,584) (765) -- --
Advisor Shares NA NA (1,704) (1,442) NA NA
Distributions from net realized gains:
Institutional Shares (187) -- -- -- -- --
Class A Shares (241) -- -- NA -- --
Class B Shares (163) -- -- NA -- --
Class C Shares (61) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Change in net assets from
shareholder distributions (1,748) (384) (7,380) (4,088) -- --
--------- --------- --------- --------- --------- ---------
Change in net assets from
Fund share transactions 18,270 34,938 27,648 90,612 (7,739) (2,859)
--------- --------- --------- --------- --------- ---------
Change in net assets 18,350 36,399 29,814 90,925 (6,422) (2,877)
NET ASSETS:
Beginning of period 36,399 -- 141,804 50,879 24,000 26,877
--------- --------- --------- --------- --------- ---------
End of period $ 54,749 $ 36,399 $ 171,618 $ 141,804 $ 17,578 $ 24,000
========= ========= ========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 93 $ 58 $ (169) $ (50) $ -- $ --
========= ========= ========= ========= ========= =========
INTERNATIONAL
TECHNOLOGY FUND EQUITY FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 (c) 2003
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (632) $ (412) $ 1,994 $ 1,445
Net realized gains/(losses) on investment
and foreign currency transactions 7,023 (9,239) 36,267 (16,332)
Net realized gains on futures transactions -- -- 2,518 857
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency (11,739) 22,870 16,818 19,788
--------- --------- --------- ---------
Change in net assets resulting from operations (5,348) 13,219 57,597 5,758
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares -- -- (3,876) (876)
Class A Shares -- -- (168) (12)
Class B Shares -- -- (2) --
Class C Shares -- -- (1) --
Advisor Shares -- -- (39) NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
--------- --------- --------- ---------
Change in net assets from
shareholder distributions -- -- (4,086) (888)
--------- --------- --------- ---------
Change in net assets from
Fund share transactions 16,375 (1,348) 142,755 7,352
--------- --------- --------- ---------
Change in net assets 11,027 11,871 196,266 12,222
NET ASSETS:
Beginning of period 37,091 25,220 165,293 153,071
--------- --------- --------- ---------
End of period $ 48,118 $ 37,091 $ 361,559 $ 165,293
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ -- $ -- $ 4,002 $ 3,140
========= ========= ========= =========
INTERMEDIATE
BOND FUND BOND FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 8,735 $ 14,581 $ 24,279 $ 30,721
Net realized gains/(losses) on investment
and foreign currency transactions 1,860 15,221 (5,790) 31,963
Net realized gains on futures transactions -- -- -- --
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency 1,720 (9,973) 2,154 (23,525)
---------- ---------- ---------- ----------
Change in net assets resulting from operations 12,315 19,829 20,643 39,159
---------- ---------- ---------- ----------
Distributions from net investment income:
Institutional Shares (10,360) (15,437) (27,582) (32,749)
Class A Shares (791) (834) (1,395) (1,379)
Class B Shares (158) (259) (145) (145)
Class C Shares (24) (40) (54) (50)
Advisor Shares (21) (29) NA NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (11,354) (16,599) (29,176) (34,323)
---------- ---------- ---------- ----------
Change in net assets from
Fund share transactions (28,184) (102,207) (88,911) (22,942)
---------- ---------- ---------- ----------
Change in net assets (27,223) (98,977) (97,444) (18,106)
NET ASSETS:
Beginning of period 333,423 432,400 816,890 834,996
---------- ---------- ---------- ----------
End of period $ 306,200 $ 333,423 $ 719,446 $ 816,890
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 49 $ 55 $ 194 $ 54
========== ========== ========== ==========
___________________
(a) Reflects operations for the period from August 1, 2002 (date of commencement
of operations) to July 31, 2003.
(b) Reflects operations for the period from April 1, 2004 (date of commencement
of operations) to July 31, 2004 for Class A and Class B shares.
(c) Reflects operations for the period from November 10, 2003 (date of
commencement of operations) to July 31, 2004 for Advisor Shares.
+ Represents realized gains from investment transactions with affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
132-133 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
SHORT TERM BOND FUND BOND FUND
--------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 (a) 2003 2004 2003
----------- ----------- ---------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 9,740 $ 11,349 $ 1,809 $ 1,979
Net realized gains/(losses) on investment transactions 535 5,377 (181) 2,078
Net change in unrealized appreciation/depreciation on investments (3,782) (4,210) 516 (2,089)
----------- ----------- ---------- -----------
Change in net assets resulting from operations 6,493 12,516 2,144 1,968
----------- ----------- ---------- -----------
Distributions from net investment income:
Institutional Shares (14,724) (15,973) (1,106) (1,566)
Class A Shares (898) (922) (726) (299)
Class B Shares NA NA NA NA
Class C Shares (7) NA (102) (108)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares -- -- (704) (838)
Class A Shares -- -- (550) (174)
Class B Shares NA NA NA NA
Class C Shares -- NA (122) (66)
Advisor Shares NA NA NA NA
----------- ----------- ---------- -----------
Change in net assets from shareholder distributions (15,629) (16,895) (3,310) (3,051)
----------- ----------- ---------- -----------
Change in net assets from Fund share transactions 8,991 204,682 8,319 11,283
----------- ----------- ---------- -----------
Change in net assets (145) 200,303 7,153 10,200
Net Assets:
Beginning of period 524,204 323,901 72,068 61,868
----------- ----------- ---------- -----------
End of period $ 524,059 $ 524,204 $ 79,221 $ 72,068
=========== =========== ========== ===========
Accumulated Net Investment Income $ 72 $ 63 $ 47 $ 144
=========== =========== ========== ===========
INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
--------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ----------- ---------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,937 $ 3,676 $ 9,990 $ 11,219
Net realized gains/(losses) on investment transactions 2,753 1,455 2,428 3,418
Net change in unrealized appreciation/depreciation on investments (2,134) (1,659) (2,712) (5,229)
----------- ----------- ---------- -----------
Change in net assets resulting from operations 3,556 3,472 9,706 9,408
----------- ----------- ---------- -----------
Distributions from net investment income:
Institutional Shares (2,740) (3,539) (9,698) (10,926)
Class A Shares (97) (89) (157) (157)
Class B Shares (41) (27) (36) (17)
Class C Shares (14) (14) (13) (19)
Advisor Shares (15) (13) NA NA
Distributions from net realized gains:
Institutional Shares (1,116) (1,357) (2,509) (2,215)
Class A Shares (34) (30) (41) (37)
Class B Shares (21) (12) (11) (4)
Class C Shares (8) (6) (5) (5)
Advisor Shares (7) (5) NA NA
----------- ----------- ---------- -----------
Change in net assets from shareholder distributions (4,093) (5,092) (12,470) (13,380)
----------- ----------- ---------- -----------
Change in net assets from Fund share transactions (15,427) (26,594) (47,206) (36,580)
----------- ----------- ---------- -----------
Change in net assets (15,964) (28,214) (49,970) (40,552)
Net Assets:
Beginning of period 78,388 106,602 311,110 351,662
----------- ----------- ---------- -----------
End of period $ 62,424 $ 78,388 $ 261,140 $ 311,110
=========== =========== ========== ===========
Accumulated Net Investment Income $ 10 $ (1) $ 96 $ 37
=========== =========== ========== ===========
OHIO MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
--------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ----------- ---------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 5,793 $ 6,659 $ 3,506 $ 3,546
Net realized gains/(losses) on investment transactions 1,533 747 (27) 186
Net change in unrealized appreciation/depreciation on investments (1,097) (2,274) (1,404) (983)
----------- ----------- ---------- -----------
Change in net assets resulting from operations 6,229 5,132 2,075 2,749
----------- ----------- ---------- -----------
Distributions from net investment income:
Institutional Shares (4,697) (5,666) (3,231) (3,306)
Class A Shares (779) (711) (186) (158)
Class B Shares (122) (107) (32) (20)
Class C Shares (125) (144) (51) (55)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (354) -- (167) (351)
Class A Shares (56) -- (11) (18)
Class B Shares (13) -- (3) (2)
Class C Shares (14) -- (5) (8)
Advisor Shares NA NA NA NA
----------- ----------- ---------- -----------
Change in net assets from shareholder distributions (6,160) (6,628) (3,686) (3,918)
----------- ----------- ---------- -----------
Change in net assets from Fund share transactions (25,873) (4,924) (15,216) 33,006
----------- ----------- ---------- -----------
Change in net assets (25,804) (6,420) (16,827) 31,837
Net Assets:
Beginning of period 188,151 194,571 132,850 101,013
----------- ----------- ---------- -----------
End of period $ 162,347 $ 188,151 $ 116,023 $ 132,850
=========== =========== ========== ===========
Accumulated Net Investment Income $ 25 $ --^ $ 8 $ 5
=========== =========== ========== ===========
___________________
(a) Reflects operations for the period from August 1, 2003 (date of commencement
of operations) to July 31, 2004 for Class C Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
134-135 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 QUALITY GROWTH 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,
2004 2003 2004 2003 2004 2003
----------- ---------- ---------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 50,621 $ 119,416 $ 85,089 $ 194,298 $ 275,956 $ 301,476
Dividends reinvested 35,609 -- -- -- -- 24
Shares redeemed (260,325) (269,035) (110,834) (120,202) (206,296) (151,743)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (174,095) (149,619) (25,745) 74,096 69,660 149,757
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 15,183 61,016 65,226 27,619 50,886 268,571
Dividends reinvested 2,431 -- -- -- -- --
Shares redeemed (6,598) (62,980) (54,394) (26,771) (46,916) (296,493)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 11,016 (1,964) 10,832 848 3,970 (27,922)
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 557 525 1,329 854 2,939 2,929
Dividends reinvested 160 -- -- -- -- --
Shares redeemed (247) (169) (824) (814) (3,037) (3,556)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 470 356 505 40 (98) (627)
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 680 131 625 518 1,416 1,454
Dividends reinvested 59 -- -- -- -- --
Shares redeemed (296) (89) (552) (233) (2,437) (1,775)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 443 42 73 285 (1,021) (321)
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 866 262 778 158 2,414 788
Dividends reinvested 84 -- -- -- -- --
Shares redeemed (142) (71) (52) (87) (402) (69)
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 808 191 726 71 2,012 719
----------- ---------- ---------- ---------- ---------- ----------
Select 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 Select Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Preferred 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 Preferred Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Trust 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 Trust Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from capital transactions $ (161,358) $ (150,994) $ (13,609) $ 75,340 $ 74,523 $ 121,606
=========== ========== ========== ========== ========== ==========
LARGE CAP CORE FUND EQUITY INDEX FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 (a) 2003
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 1,952 $ 38,891 $ 87,452 $ 137,684
Dividends reinvested 329 1,343 3,480 5,933
Shares redeemed (108,664) (379,356) (528,617) (214,448)
----------- ---------- ---------- ----------
Total Institutional Shares (106,383) (339,122) (437,685) (70,831)
----------- ---------- ---------- ----------
Class A Shares
Shares issued 7,505 3,436 89,595 51,715
Dividends reinvested 169 159 875 315
Shares redeemed (6,098) (6,717) (56,436) (45,920)
----------- ---------- ---------- ----------
Total Class A Shares 1,576 (3,122) 34,034 6,110
----------- ---------- ---------- ----------
Class B Shares
Shares issued 257 254 1,357 1,155
Dividends reinvested --^ 1 18 10
Shares redeemed (102) (95) (282) (262)
----------- ---------- ---------- ----------
Total Class B Shares 155 160 1,093 903
----------- ---------- ---------- ----------
Class C Shares
Shares issued 141 9 1,058 1,121
Dividends reinvested --^ --^ 10 4
Shares redeemed (16) (2) (947) (196)
----------- ---------- ---------- ----------
Total Class C Shares 125 7 121 929
----------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 1,142 295
Dividends reinvested NA NA 8 1
Shares redeemed NA NA (217) (1)
----------- ---------- ---------- ----------
Total Advisor Shares NA NA 933 295
----------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 14,858 NA
Dividends reinvested NA NA 69 NA
Shares redeemed NA NA (723) NA
----------- ---------- ---------- ----------
Total Select Shares NA NA 14,204 NA
----------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 187,348 NA
Dividends reinvested NA NA 1,581 NA
Shares redeemed NA NA (29,488) NA
----------- ---------- ---------- ----------
Total Preferred Shares NA NA 159,441 NA
----------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 98,438 NA
Dividends reinvested NA NA 107 NA
Shares redeemed NA NA (22,880) NA
----------- ---------- ---------- ----------
Total Trust Shares NA NA 75,665 NA
----------- ---------- ---------- ----------
Change from capital transactions $ (104,527) $ (342,077) $ (152,194) $ (62,594)
=========== ========== ========== ==========
BALANCED FUND MICRO CAP VALUE FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 8,464 $ 31,468 $ 61,276 $ 70,029
Dividends reinvested 1,594 2,514 7,200 469
Shares redeemed (99,029) (53,940) (43,053) (40,901)
----------- ---------- ---------- ----------
Total Institutional Shares (88,971) (19,958) 25,423 29,597
----------- ---------- ---------- ----------
Class A Shares
Shares issued 21,533 11,884 30,015 14,353
Dividends reinvested 780 976 1,709 35
Shares redeemed (25,773) (23,423) (15,638) (4,079)
----------- ---------- ---------- ----------
Total Class A Shares (3,460) (10,563) 16,086 10,309
----------- ---------- ---------- ----------
Class B Shares
Shares issued 882 2,101 1,947 990
Dividends reinvested 35 97 337 22
Shares redeemed (2,545) (2,765) (843) (579)
----------- ---------- ---------- ----------
Total Class B Shares (1,628) (567) 1,441 433
----------- ---------- ---------- ----------
Class C Shares
Shares issued 736 2,040 4,507 463
Dividends reinvested 14 38 167 5
Shares redeemed (2,111) (1,543) (812) (292)
----------- ---------- ---------- ----------
Total Class C Shares (1,361) 535 3,862 176
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 104 62 18,793 6,924
Dividends reinvested 1 1 1,930 119
Shares redeemed (39) (1) (12,142) (7,206)
----------- ---------- ---------- ----------
Total Advisor Shares 66 62 8,581 (163)
----------- ---------- ---------- ----------
Select Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Select Shares NA NA NA NA
----------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Preferred Shares NA NA NA NA
----------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Trust Shares NA NA NA NA
----------- ---------- ---------- ----------
Change from capital transactions $ (95,354) $ (30,491) $ 55,393 $ 40,352
=========== ========== ========== ==========
___________________
(a) Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select, Preferred and Trust
Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
136-137 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 QUALITY GROWTH 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,
2004 2003 2004 2003 2004 2003
----------- ---------- ---------- ---------- ---------- ----------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 3,000 9,065 6,373 19,279 17,925 24,210
Dividends reinvested 2,101 -- -- -- -- 2
Shares redeemed (15,324) (19,861) (8,371) (11,658) (13,496) (12,126)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (10,223) (10,796) (1,998) 7,621 4,429 12,086
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 908 4,684 5,213 2,781 3,405 22,353
Dividends reinvested 146 -- -- -- -- --
Shares redeemed (399) (4,850) (4,318) (2,763) (3,092) (24,690)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 655 (166) 895 18 313 (2,337)
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 34 39 103 84 196 239
Dividends reinvested 10 -- -- -- -- --
Shares redeemed (15) (13) (63) (82) (203) (295)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 29 26 40 2 (7) (56)
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 40 10 50 51 97 121
Dividends reinvested 4 -- -- -- -- --
Shares redeemed (18) (7) (44) (25) (169) (151)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 26 3 6 26 (72) (30)
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 50 19 60 15 160 63
Dividends reinvested 5 -- -- -- -- --
Shares redeemed (8) (5) (4) (9) (27) (6)
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 47 14 56 6 133 57
----------- ---------- ---------- ---------- ---------- ----------
Select 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 Select Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Preferred 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 Preferred Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Trust 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 Trust Shares NA NA NA NA NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from share transactions (9,466) (10,919) (1,001) 7,673 4,796 9,720
=========== ========== ========== ========== ========== ==========
LARGE CAP CORE FUND EQUITY INDEX FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 (a) 2003
----------- ---------- ---------- ----------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 155 3,552 4,320 7,966
Dividends reinvested 25 126 170 348
Shares redeemed (8,654) (34,872) (26,097) (12,426)
----------- ---------- ---------- ----------
Total Institutional Shares (8,474) (31,194) (21,607) (4,112)
----------- ---------- ---------- ----------
Class A Shares
Shares issued 597 323 4,550 3,101
Dividends reinvested 13 15 42 18
Shares redeemed (469) (625) (2,879) (2,777)
----------- ---------- ---------- ----------
Total Class A Shares 141 (287) 1,713 342
----------- ---------- ---------- ----------
Class B Shares
Shares issued 21 24 66 66
Dividends reinvested --^ --^ 1 1
Shares redeemed (8) (9) (14) (15)
----------- ---------- ---------- ----------
Total Class B Shares 13 15 53 52
----------- ---------- ---------- ----------
Class C Shares
Shares issued 11 --^ 51 65
Dividends reinvested --^ --^ --^ --^
Shares redeemed (1) --^ (47) (11)
----------- ---------- ---------- ----------
Total Class C Shares 10 --^ 4 54
----------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 55 17
Dividends reinvested NA NA --^ --^
Shares redeemed NA NA (10) --^
----------- ---------- ---------- ----------
Total Advisor Shares NA NA 45 17
----------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 713 NA
Dividends reinvested NA NA 3 NA
Shares redeemed NA NA (34) NA
----------- ---------- ---------- ----------
Total Select Shares NA NA 682 NA
----------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 9,212 NA
Dividends reinvested NA NA 75 NA
Shares redeemed NA NA (1,393) NA
----------- ---------- ---------- ----------
Total Preferred Shares NA NA 7,894 NA
----------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 4,932 NA
Dividends reinvested NA NA 5 NA
Shares redeemed NA NA (1,093) NA
----------- ---------- ---------- ----------
Total Trust Shares NA NA 3,844 NA
----------- ---------- ---------- ----------
Change from share transactions (8,310) (31,466) (7,372) (3,647)
=========== ========== ========== ==========
BALANCED FUND MICRO CAP VALUE FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ---------- ---------- ----------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 705 2,874 6,449 11,089
Dividends reinvested 132 231 770 77
Shares redeemed (8,202) (4,939) (4,402) (6,613)
----------- ---------- ---------- ----------
Total Institutional Shares (7,365) (1,834) 2,817 4,553
----------- ---------- ---------- ----------
Class A Shares
Shares issued 1,826 1,078 3,254 2,083
Dividends reinvested 65 90 186 6
Shares redeemed (2,145) (2,158) (1,621) (689)
----------- ---------- ---------- ----------
Total Class A Shares (254) (990) 1,819 1,400
----------- ---------- ---------- ----------
Class B Shares
Shares issued 75 195 215 156
Dividends reinvested 3 9 37 4
Shares redeemed (214) (259) (89) (94)
----------- ---------- ---------- ----------
Total Class B Shares (136) (55) 163 66
----------- ---------- ---------- ----------
Class C Shares
Shares issued 64 193 485 72
Dividends reinvested 1 4 18 1
Shares redeemed (177) (145) (84) (50)
----------- ---------- ---------- ----------
Total Class C Shares (112) 52 419 23
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 9 5 2,019 1,030
Dividends reinvested --^ --^ 211 20
Shares redeemed (3) --^ (1,262) (1,155)
----------- ---------- ---------- ----------
Total Advisor Shares 6 5 968 (105)
----------- ---------- ---------- ----------
Select Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Select Shares NA NA NA NA
----------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Preferred Shares NA NA NA NA
----------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- ---------- ---------- ----------
Total Trust Shares NA NA NA NA
----------- ---------- ---------- ----------
Change from share transactions (7,861) (2,822) 6,186 5,937
=========== ========== ========== ==========
___________________
(a) Reflects operations for the period from October 20, 2003 (date of
commencement of operations) to July 31, 2004 for Select, Preferred and Trust
Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
138-139 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP
SMALL CAP VALUE FUND MULTI CAP VALUE FUND VALUE FUND
------------------------- ------------------------- ------------------------
YEAR PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (a) 2004 2003 2004 2003
----------- ---------- ---------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 56,630 $ 69,536 $ 84,532 $ 145,360 $ 300,125 $ 271,093
Dividends reinvested 3,940 -- 751 -- 13,643 3,450
Shares redeemed (36,181) (4,795) (66,562) (42,995) (74,461) (58,036)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares 24,389 64,741 18,721 102,365 239,307 216,507
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 2,347 230 15,347 173,850 17,304 4,193
Dividends reinvested 29 -- 102 -- 725 321
Shares redeemed (331) (27) (5,995) (174,716) (12,995) (4,113)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 2,045 203 9,454 (866) 5,034 401
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 428 96 3,955 2,576 1,325 786
Dividends reinvested 8 -- 51 -- 127 58
Shares redeemed (41) -- (1,772) (2,169) (562) (582)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 395 96 2,234 407 890 262
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 702 14 1,961 842 1,013 295
Dividends reinvested 17 -- 7 -- 43 14
Shares redeemed (182) -- (537) (680) (274) (76)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 537 14 1,431 162 782 233
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 1,481 201 7,464 3,535 NA NA
Dividends reinvested 21 -- 128 -- NA NA
Shares redeemed (120) -- (11,525) (10,992) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 1,382 201 (3,933) (7,457) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from capital transactions $ 28,748 $ 65,255 $ 27,907 $ 94,611 $ 246,013 $ 217,403
=========== ========== ========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,856 4,435 3,830 9,108 23,119 26,178
Dividends reinvested 206 -- 35 -- 1,091 321
Shares redeemed (1,846) (286) (3,042) (2,659) (5,812) (5,616)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares 1,216 4,149 823 6,449 18,398 20,883
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 117 14 704 11,165 1,340 390
Dividends reinvested 2 -- 5 -- 58 30
Shares redeemed (17) (2) (269) (11,266) (979) (391)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 102 12 440 (101) 419 29
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 21 6 181 160 100 75
Dividends reinvested --^ -- 2 -- 10 5
Shares redeemed (2) -- (82) (139) (43) (56)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 19 6 101 21 67 24
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 35 1 90 51 80 29
Dividends reinvested 1 -- --^ -- 3 1
Shares redeemed (9) -- (25) (44) (21) (8)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 27 1 65 7 62 22
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 74 12 347 220 NA NA
Dividends reinvested 1 -- 6 -- NA NA
Shares redeemed (6) -- (527) (687) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 69 12 (174) (467) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from share transactions 1,433 4,180 1,255 5,909 18,946 20,958
=========== ========== ========== ========== ========== ==========
LIFEMODEL LIFEMODEL MODERATELY
AGGRESSIVE FUND SM AGGRESSIVE FUND SM
------------------------- -------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (b) 2004 2003 (b)
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 32,676 $ 34,635 $ 42,003 $ 63,887
Dividends reinvested 881 58 1,625 272
Shares redeemed (16,370) (8,570) (27,861) (10,742)
----------- ---------- ---------- ----------
Total Institutional Shares 17,187 26,123 15,767 53,417
----------- ---------- ---------- ----------
Class A Shares
Shares issued 31,283 9,473 72,485 32,101
Dividends reinvested 522 5 1,637 77
Shares redeemed (4,416) (64) (15,784) (592)
----------- ---------- ---------- ----------
Total Class A Shares 27,389 9,414 58,338 31,586
----------- ---------- ---------- ----------
Class B Shares
Shares issued 8,856 3,333 28,608 12,080
Dividends reinvested 149 --^ 414 9
Shares redeemed (702) (138) (2,663) (491)
----------- ---------- ---------- ----------
Total Class B Shares 8,303 3,195 26,359 11,598
----------- ---------- ---------- ----------
Class C Shares
Shares issued 2,038 493 7,547 1,351
Dividends reinvested 29 --^ 67 1
Shares redeemed (707) (3) (982) (52)
----------- ---------- ---------- ----------
Total Class C Shares 1,360 490 6,632 1,300
----------- ---------- ---------- ----------
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 $ 54,239 $ 39,222 $ 107,096 $ 97,901
=========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,568 3,655 3,306 6,363
Dividends reinvested 70 6 130 25
Shares redeemed (1,324) (805) (2,252) (982)
----------- ---------- ---------- ----------
Total Institutional Shares 1,314 2,856 1,184 5,406
----------- ---------- ---------- ----------
Class A Shares
Shares issued 2,486 898 5,785 2,966
Dividends reinvested 42 --^ 131 7
Shares redeemed (347) (7) (1,234) (55)
----------- ---------- ---------- ----------
Total Class A Shares 2,181 891 4,682 2,918
----------- ---------- ---------- ----------
Class B Shares
Shares issued 710 331 2,279 1,137
Dividends reinvested 12 --^ 33 1
Shares redeemed (56) (13) (212) (46)
----------- ---------- ---------- ----------
Total Class B Shares 666 318 2,100 1,092
----------- ---------- ---------- ----------
Class C Shares
Shares issued 164 47 601 125
Dividends reinvested 2 --^ 5 --^
Shares redeemed (57) --^ (78) (5)
----------- ---------- ---------- ----------
Total Class C Shares 109 47 528 120
----------- ---------- ---------- ----------
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 4,270 4,112 8,494 9,536
=========== ========== ========== ==========
LIFEMODEL LIFEMODEL MODERATELY
MODERATE FUND SM CONSERVATIVE FUND SM
------------------------- -------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (b) 2004 2003 (b)
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 293,587 $ 70,787 $ 16,845 $ 46,382
Dividends reinvested 3,255 447 1,496 346
Shares redeemed (51,038) (6,650) (21,740) (10,261)
----------- ---------- ---------- ----------
Total Institutional Shares 245,804 64,584 (3,399) 36,467
----------- ---------- ---------- ----------
Class A Shares
Shares issued 83,406 30,233 28,373 20,132
Dividends reinvested 1,608 144 1,236 94
Shares redeemed (17,065) (3,365) (8,496) (1,384)
----------- ---------- ---------- ----------
Total Class A Shares 67,949 27,012 21,113 18,842
----------- ---------- ---------- ----------
Class B Shares
Shares issued 24,584 14,479 13,543 8,987
Dividends reinvested 485 37 459 38
Shares redeemed (3,637) (754) (2,100) (421)
----------- ---------- ---------- ----------
Total Class B Shares 21,432 13,762 11,902 8,604
----------- ---------- ---------- ----------
Class C Shares
Shares issued 7,079 1,360 3,424 1,128
Dividends reinvested 83 3 62 4
Shares redeemed (1,094) (92) (925) (160)
----------- ---------- ---------- ----------
Total Class C Shares 6,068 1,271 2,561 972
----------- ---------- ---------- ----------
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 $ 341,253 $ 106,629 $ 32,177 $ 64,885
=========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 24,802 7,142 1,512 4,756
Dividends reinvested 279 43 136 33
Shares redeemed (4,399) (642) (1,976) (983)
----------- ---------- ---------- ----------
Total Institutional Shares 20,682 6,543 (328) 3,806
----------- ---------- ---------- ----------
Class A Shares
Shares issued 7,162 2,964 2,555 1,965
Dividends reinvested 139 14 112 9
Shares redeemed (1,450) (325) (765) (140)
----------- ---------- ---------- ----------
Total Class A Shares 5,851 2,653 1,902 1,834
----------- ---------- ---------- ----------
Class B Shares
Shares issued 2,123 1,414 1,227 897
Dividends reinvested 42 4 42 4
Shares redeemed (312) (75) (190) (42)
----------- ---------- ---------- ----------
Total Class B Shares 1,853 1,343 1,079 859
----------- ---------- ---------- ----------
Class C Shares
Shares issued 612 130 310 112
Dividends reinvested 7 --^ 6 --^
Shares redeemed (94) (8) (84) (16)
----------- ---------- ---------- ----------
Total Class C Shares 525 122 232 96
----------- ---------- ---------- ----------
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 28,911 10,661 2,885 6,595
=========== ========== ========== ==========
___________________
(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/shares.
SEE NOTES TO FINANCIAL STATEMENTS
140-141 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL SELECT
CONSERVATIVE FUND SM STRATEGIC INCOME FUND STOCK FUND
------------------------- ------------------------- ------------------------
YEAR PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 (a) 2004 (b) 2003 2004 2003
----------- ---------- ---------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 6,828 $ 18,975 $ 48,821 $ 61,812 $ 1,352 $ 3,179
Shares issued in merger -- -- -- -- -- --
Dividends reinvested 544 191 645 291 -- --
Shares redeemed (9,370) (3,965) (27,289) (5,919) (9,672) (5,141)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (1,998) 15,201 22,177 56,184 (8,320) (1,962)
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 17,121 10,175 1,045 NA 3,212 812
Shares issued in merger -- -- -- NA -- --
Dividends reinvested 653 106 4 NA -- --
Shares redeemed (6,620) (1,213) (104) NA (2,524) (1,675)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 11,154 9,068 945 NA 688 (863)
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 7,782 9,135 387 NA 147 108
Shares issued in merger -- -- -- NA -- --
Dividends reinvested 343 65 1 NA -- --
Shares redeemed (3,428) (678) (4) NA (71) (43)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 4,697 8,522 384 NA 76 65
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 6,320 2,253 21,878 32,526 20 6
Shares issued in merger -- -- -- -- -- --
Dividends reinvested 145 13 1,233 487 -- --
Shares redeemed (2,048) (119) (22,066) (3,069) (203) (105)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 4,417 2,147 1,045 29,944 (183) (99)
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 19,845 23,160 NA NA
Shares issued in merger NA NA -- -- NA NA
Dividends reinvested NA NA 1,446 1,187 NA NA
Shares redeemed NA NA (18,194) (19,863) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares NA NA 3,097 4,484 NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from capital transactions $ 18,270 $ 34,938 $ 27,648 $ 90,612 $ (7,739) $ (2,859)
=========== ========== ========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 627 1,879 4,351 5,632 69 186
Shares issued in merger -- -- -- -- -- --
Dividends reinvested 51 18 58 26 -- --
Shares redeemed (865) (378) (2,449) (537) (501) (299)
----------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (187) 1,519 1,960 5,121 (432) (113)
----------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 1,581 997 95 NA 167 49
Shares issued in merger -- -- -- NA -- --
Dividends reinvested 61 10 --^ NA -- --
Shares redeemed (610) (116) (9) NA (129) (99)
----------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares 1,032 891 86 NA 38 (50)
----------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 723 896 35 NA 8 7
Shares issued in merger -- -- -- NA -- --
Dividends reinvested 32 6 --^ NA -- --
Shares redeemed (318) (65) --^ NA (4) (3)
----------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares 437 837 35 NA 4 4
----------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 586 221 1,953 2,958 1 --^
Shares issued in merger -- -- -- -- -- --
Dividends reinvested 13 1 111 45 -- --
Shares redeemed (190) (12) (2,003) (281) (11) (6)
----------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares 409 210 61 2,722 (10) (6)
----------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA 1,756 2,133 NA NA
Shares issued in merger NA NA -- -- NA NA
Dividends reinvested NA NA 129 109 NA NA
Shares redeemed NA NA (1,631) (1,848) NA NA
----------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares NA NA 254 394 NA NA
----------- ---------- ---------- ---------- ---------- ----------
Change from share transactions 1,691 3,457 2,396 8,237 (400) (165)
=========== ========== ========== ========== ========== ==========
INTERNATIONAL
TECHNOLOGY FUND EQUITY FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 (c) 2003
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 25,660 $ 9,882 $ 104,241 $ 76,577
Shares issued in merger -- -- 172,761 --
Dividends reinvested -- -- 2,209 571
Shares redeemed (13,544) (12,497) (163,646) (70,180)
----------- ---------- ---------- ----------
Total Institutional Shares 12,116 (2,615) 115,565 6,968
----------- ---------- ---------- ----------
Class A Shares
Shares issued 7,293 2,131 16,084 104,039
Shares issued in merger -- -- 5,153 --
Dividends reinvested -- -- 165 10
Shares redeemed (4,677) (1,824) (6,195) (103,907)
----------- ---------- ---------- ----------
Total Class A Shares 2,616 307 15,207 142
----------- ---------- ---------- ----------
Class B Shares
Shares issued 940 375 379 121
Shares issued in merger -- -- 70 --
Dividends reinvested -- -- 2 --
Shares redeemed (549) (302) (65) (36)
----------- ---------- ---------- ----------
Total Class B Shares 391 73 386 85
----------- ---------- ---------- ----------
Class C Shares
Shares issued 1,882 1,439 374 4,447
Shares issued in merger -- -- 379 --
Dividends reinvested -- -- 1 --
Shares redeemed (886) (591) (557) (4,290)
----------- ---------- ---------- ----------
Total Class C Shares 996 848 197 157
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 402 43 765 NA
Shares issued in merger -- -- 15,823 NA
Dividends reinvested -- -- 37 NA
Shares redeemed (146) (4) (5,225) NA
----------- ---------- ---------- ----------
Total Advisor Shares 256 39 11,400 NA
----------- ---------- ---------- ----------
Change from capital transactions $ 16,375 $ (1,348) $ 142,755 $ 7,352
=========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,375 1,503 11,779 10,771
Shares issued in merger -- -- 19,982 --
Dividends reinvested -- -- 252 81
Shares redeemed (1,326) (1,928) (17,582) (9,838)
----------- ---------- ---------- ----------
Total Institutional Shares 1,049 (425) 14,431 1,014
----------- ---------- ---------- ----------
Class A Shares
Shares issued 694 312 1,835 14,769
Shares issued in merger -- -- 595 --
Dividends reinvested -- -- 19 1
Shares redeemed (449) (299) (687) (14,604)
----------- ---------- ---------- ----------
Total Class A Shares 245 13 1,762 166
----------- ---------- ---------- ----------
Class B Shares
Shares issued 93 58 41 17
Shares issued in merger -- -- 8 --
Dividends reinvested -- -- --^ --
Shares redeemed (54) (46) (7) (5)
----------- ---------- ---------- ----------
Total Class B Shares 39 12 42 12
----------- ---------- ---------- ----------
Class C Shares
Shares issued 181 181 45 676
Shares issued in merger -- -- 45 --
Dividends reinvested -- -- --^ --
Shares redeemed (92) (71) (69) (652)
----------- ---------- ---------- ----------
Total Class C Shares 89 110 21 24
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 39 6 81 NA
Shares issued in merger -- -- 1,826 NA
Dividends reinvested -- -- 4 NA
Shares redeemed (15) (1) (583) NA
----------- ---------- ---------- ----------
Total Advisor Shares 24 5 1,328 NA
----------- ---------- ---------- ----------
Change from share transactions 1,446 (285) 17,584 1,216
=========== ========== ========== ==========
INTERMEDIATE
BOND FUND BOND FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 84,603 $ 47,722 $ 207,569 $ 203,432
Shares issued in merger -- -- -- --
Dividends reinvested 2,983 4,943 7,249 12,269
Shares redeemed (114,066) (156,060) (302,980) (247,530)
----------- ---------- ---------- ----------
Total Institutional Shares (26,480) (103,395) (88,162) (31,829)
----------- ---------- ---------- ----------
Class A Shares
Shares issued 10,586 8,055 16,139 34,744
Shares issued in merger -- -- -- --
Dividends reinvested 684 669 1,110 1,021
Shares redeemed (9,430) (8,142) (15,769) (31,428)
----------- ---------- ---------- ----------
Total Class A Shares 1,840 582 1,480 4,337
----------- ---------- ---------- ----------
Class B Shares
Shares issued 426 2,249 147 4,239
Shares issued in merger -- -- -- --
Dividends reinvested 138 228 128 127
Shares redeemed (3,535) (1,938) (1,819) (1,361)
----------- ---------- ---------- ----------
Total Class B Shares (2,971) 539 (1,544) 3,005
----------- ---------- ---------- ----------
Class C Shares
Shares issued 87 502 543 1,808
Shares issued in merger -- -- -- --
Dividends reinvested 23 39 43 43
Shares redeemed (596) (485) (1,271) (306)
----------- ---------- ---------- ----------
Total Class C Shares (486) 56 (685) 1,545
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 134 388 NA NA
Shares issued in merger -- -- NA NA
Dividends reinvested 15 21 NA NA
Shares redeemed (236) (398) NA NA
----------- ---------- ---------- ----------
Total Advisor Shares (87) 11 NA NA
----------- ---------- ---------- ----------
Change from capital transactions $ (28,184) $ (102,207) $ (88,911) $ (22,942)
=========== ========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 8,270 4,677 20,481 19,910
Shares issued in merger -- -- -- --
Dividends reinvested 295 487 718 1,208
Shares redeemed (11,327) (15,340) (30,042) (24,255)
----------- ---------- ---------- ----------
Total Institutional Shares (2,762) (10,176) (8,843) (3,137)
----------- ---------- ---------- ----------
Class A Shares
Shares issued 1,051 787 1,594 3,395
Shares issued in merger -- -- -- --
Dividends reinvested 68 66 110 100
Shares redeemed (934) (798) (1,561) (3,065)
----------- ---------- ---------- ----------
Total Class A Shares 185 55 143 430
----------- ---------- ---------- ----------
Class B Shares
Shares issued 42 222 15 417
Shares issued in merger -- -- -- --
Dividends reinvested 14 22 13 13
Shares redeemed (351) (190) (182) (133)
----------- ---------- ---------- ----------
Total Class B Shares (295) 54 (154) 297
----------- ---------- ---------- ----------
Class C Shares
Shares issued 9 49 54 177
Shares issued in merger -- -- -- --
Dividends reinvested 2 4 4 4
Shares redeemed (59) (48) (126) (30)
----------- ---------- ---------- ----------
Total Class C Shares (48) 5 (68) 151
----------- ---------- ---------- ----------
Advisor Shares
Shares issued 13 38 NA NA
Shares issued in merger -- -- NA NA
Dividends reinvested 2 2 NA NA
Shares redeemed (24) (39) NA NA
----------- ---------- ---------- ----------
Total Advisor Shares (9) 1 NA NA
----------- ---------- ---------- ----------
Change from share transactions (2,929) (10,061) (8,922) (2,259)
=========== ========== ========== ==========
___________________
(a) Reflects operations for the period from August 1, 2002 (date of commencement
of operations) to July 31, 2003.
(b) Reflects operations for the period from April 1, 2004 (date of commencement
of operations) to July 31, 2004 for Class A and Class B shares.
(c) Reflects operations for the period from November 10, 2003 (date of
commencement of operations) to July 31, 2004 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
142-143 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
SHORT TERM BOND FUND BOND FUND
-------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 (a) 2003 2004 2003
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 232,770 $ 339,109 $ 12,659 $ 16,333
Dividends reinvested 4,831 8,760 1,326 1,749
Shares redeemed (223,970) (158,490) (20,172) (17,578)
----------- ----------- ---------- ----------
Total Institutional Shares 13,631 189,379 (6,187) 504
----------- ----------- ---------- ----------
Class A Shares
Shares issued 15,629 62,217 29,119 31,077
Dividends reinvested 756 716 1,236 386
Shares redeemed (21,560) (47,630) (10,195) (28,293)
----------- ----------- ---------- ----------
Total Class A Shares (5,175) 15,303 20,160 3,170
----------- ----------- ---------- ----------
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 757 NA 306 10,930
Dividends reinvested 6 NA 190 152
Shares redeemed (228) NA (6,150) (3,473)
----------- ----------- ---------- ----------
Total Class C Shares 535 NA (5,654) 7,609
----------- ----------- ---------- ----------
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 $ 8,991 $ 204,682 $ 8,319 $ 11,283
=========== =========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 24,026 34,436 1,242 1,550
Dividends reinvested 498 892 130 167
Shares redeemed (23,028) (16,098) (1,964) (1,667)
----------- ----------- ---------- ----------
Total Institutional Shares 1,496 19,230 (592) 50
----------- ----------- ---------- ----------
Class A Shares
Shares issued 1,611 6,323 2,837 2,949
Dividends reinvested 78 73 121 37
Shares redeemed (2,221) (4,846) (992) (2,686)
----------- ----------- ---------- ----------
Total Class A Shares (532) 1,550 1,966 300
----------- ----------- ---------- ----------
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 78 NA 30 1,043
Dividends reinvested 1 NA 19 15
Shares redeemed (24) NA (605) (332)
----------- ----------- ---------- ----------
Total Class C Shares 55 NA (556) 726
----------- ----------- ---------- ----------
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 1,019 20,780 818 1,076
=========== =========== ========== ==========
INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
-------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 7,893 $ 18,993 $ 18,353 $ 21,551
Dividends reinvested 1,219 1,509 2,688 2,487
Shares redeemed (25,329) (48,759) (68,066) (61,758)
----------- ----------- ---------- ----------
Total Institutional Shares (16,217) (28,257) (47,025) (37,720)
----------- ----------- ---------- ----------
Class A Shares
Shares issued 7,061 16,253 6,508 18,912
Dividends reinvested 98 74 162 138
Shares redeemed (6,586) (15,970) (6,460) (19,161)
----------- ----------- ---------- ----------
Total Class A Shares 573 357 210 (111)
----------- ----------- ---------- ----------
Class B Shares
Shares issued 397 738 376 877
Dividends reinvested 45 28 38 20
Shares redeemed (102) (33) (196) (109)
----------- ----------- ---------- ----------
Total Class B Shares 340 733 218 788
----------- ----------- ---------- ----------
Class C Shares
Shares issued 135 680 83 602
Dividends reinvested 17 15 17 22
Shares redeemed (332) (342) (709) (161)
----------- ----------- ---------- ----------
Total Class C Shares (180) 353 (609) 463
----------- ----------- ---------- ----------
Advisor Shares
Shares issued 87 242 NA NA
Dividends reinvested 15 12 NA NA
Shares redeemed (45) (34) NA NA
----------- ----------- ---------- ----------
Total Advisor Shares 57 220 NA NA
----------- ----------- ---------- ----------
Change from capital transactions $ (15,427) $ (26,594) $ (47,206) $ (36,580)
=========== =========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 745 1,763 1,706 1,979
Dividends reinvested 115 143 251 232
Shares redeemed (2,400) (4,523) (6,381) (5,683)
----------- ----------- ---------- ----------
Total Institutional Shares (1,540) (2,617) (4,424) (3,472)
----------- ----------- ---------- ----------
Class A Shares
Shares issued 668 1,505 608 1,743
Dividends reinvested 9 7 15 13
Shares redeemed (622) (1,470) (603) (1,763)
----------- ----------- ---------- ----------
Total Class A Shares 55 42 20 (7)
----------- ----------- ---------- ----------
Class B Shares
Shares issued 38 67 35 80
Dividends reinvested 4 3 4 2
Shares redeemed (10) (3) (18) (10)
----------- ----------- ---------- ----------
Total Class B Shares 32 67 21 72
----------- ----------- ---------- ----------
Class C Shares
Shares issued 13 63 8 56
Dividends reinvested 2 1 2 2
Shares redeemed (32) (32) (67) (15)
----------- ----------- ---------- ----------
Total Class C Shares (17) 32 (57) 43
----------- ----------- ---------- ----------
Advisor Shares
Shares issued 9 22 NA NA
Dividends reinvested 1 1 NA NA
Shares redeemed (4) (3) NA NA
----------- ----------- ---------- ----------
Total Advisor Shares 6 20 NA NA
----------- ----------- ---------- ----------
Change from share transactions (1,464) (2,456) (4,440) (3,364)
=========== =========== ========== ==========
OHIO MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
-------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2003 2004 2003
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 5,948 $ 11,851 $ 25,275 $ 51,983
Dividends reinvested 416 66 446 658
Shares redeemed (31,734) (28,755) (37,741) (29,022)
----------- ----------- ---------- ----------
Total Institutional Shares (25,370) (16,838) (12,020) 23,619
----------- ----------- ---------- ----------
Class A Shares
Shares issued 16,923 27,163 1,995 6,401
Dividends reinvested 473 467 146 115
Shares redeemed (15,435) (20,871) (2,774) (1,999)
----------- ----------- ---------- ----------
Total Class A Shares 1,961 6,759 (633) 4,517
----------- ----------- ---------- ----------
Class B Shares
Shares issued 853 2,867 350 1,979
Dividends reinvested 107 84 24 18
Shares redeemed (1,340) (514) (792) (337)
----------- ----------- ---------- ----------
Total Class B Shares (380) 2,437 (418) 1,660
----------- ----------- ---------- ----------
Class C Shares
Shares issued 82 5,323 254 3,443
Dividends reinvested 121 119 39 45
Shares redeemed (2,287) (2,724) (2,438) (278)
----------- ----------- ---------- ----------
Total Class C Shares (2,084) 2,718 (2,145) 3,210
----------- ----------- ---------- ----------
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 $ (25,873) $ (4,924) $ (15,216) $ 33,006
=========== =========== ========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 564 1,116 2,454 4,985
Dividends reinvested 39 6 43 63
Shares redeemed (3,016) (2,717) (3,667) (2,789)
----------- ----------- ---------- ----------
Total Institutional Shares (2,413) (1,595) (1,170) 2,259
----------- ----------- ---------- ----------
Class A Shares
Shares issued 1,607 2,570 196 614
Dividends reinvested 45 44 14 11
Shares redeemed (1,480) (1,968) (269) (193)
----------- ----------- ---------- ----------
Total Class A Shares 172 646 (59) 432
----------- ----------- ---------- ----------
Class B Shares
Shares issued 83 275 34 189
Dividends reinvested 10 8 2 2
Shares redeemed (130) (49) (76) (32)
----------- ----------- ---------- ----------
Total Class B Shares (37) 234 (40) 159
----------- ----------- ---------- ----------
Class C Shares
Shares issued 8 504 25 331
Dividends reinvested 12 11 4 4
Shares redeemed (220) (256) (237) (27)
----------- ----------- ---------- ----------
Total Class C Shares (200) 259 (208) 308
----------- ----------- ---------- ----------
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 (2,478) (456) (1,477) 3,158
=========== =========== ========== ==========
___________________
(a) Reflects operations for the period from August 1, 2003 (date of commencement
of operations) to July 31, 2004 for Class C Shares.
SEE NOTES TO FINANCIAL STATEMENTS
144-145 Spread.
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2004
- --------------------------------------------------------------------------------
(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 established as a Massachusetts business trust. At July 31, 2004, the
Trust consisted of thirty-five 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 Small Cap Growth Fund ("Small Cap Growth Fund")
Fifth Third Mid Cap Growth Fund ("Mid Cap Growth 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")
Fifth Third LifeModel Aggressive Fund SM ("LifeModel Aggressive Fund SM")
Fifth Third LifeModel Moderately Aggressive Fund SM ("LifeModel Moderately
Aggressive Fund SM")
Fifth Third LifeModel Moderate Fund SM ("LifeModel Moderate Fund SM")
Fifth Third LifeModel Moderately Conservative Fund SM ("LifeModel Moderately
Conservative Fund SM")
Fifth Third LifeModel Conservative Fund SM ("LifeModel Conservative Fund SM")
Fifth Third Strategic Income Fund ("Strategic Income Fund")
Fifth Third Select Stock Fund ("Select Stock Fund", formerly the "Fifth Third
Large Cap Opportunity Fund")
Fifth Third Large Cap Opportunity Fund") Fifth Third Technology Fund
("Technology Fund")
Fifth Third International Equity Fund ("International Equity 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 and U.S. Government Bond Fund offers three classes of
shares: Institutional Shares, Class A Shares and Class C Shares. The Large Cap
Core Fund, Disciplined Large Cap Value Fund, LifeModel Aggressive Fund SM,
LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel
Moderately Conservative Fund SM, LifeModel Conservative Fund SM, Select Stock
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
Equity Index Fund offers eight classes of shares: Institutional Shares, Class A
Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred
Shares and Trust 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 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, Select Shares,
Preferred Shares and Trust 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. Effective January 16, 2004, the Micro Cap Value Fund was closed
to all investors with the exception of certain "qualified" retirement plans.
Effective January 30, 2004, Class B Shares of the Intermediate Bond Fund and
Intermediate Municipal Bond Fund were closed for purchases to all investors.
146
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
Under the Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts with their vendors and others that provide for general
indemnification. The Funds' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Funds.
However, based on experience, the Funds expect that risk of loss to be remote.
(2) REORGANIZATION
On November 10, 2003, the net assets of the Fifth Third Worldwide Fund and the
Fifth Third International GDP Fund were exchanged for shares of the
International Equity 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 CLASS A SHARES
-------------------------- ------------------------
NET NET
NET ASSET NET ASSET
SHARES ASSETS VALUE SHARES ASSETS VALUE
------ -------- ------ ------ ------- ------
Worldwide Fund (a) 253 $ 3,277 $12.96 NA NA NA
International Equity Fund (a) 23,754 205,379 8.65 1,313 $11,378 $ 8.67
International GDP Fund (a) 14,770 169,484 11.47 457 5,153 11.27
------ -------- ------ ------ ------- ------
International Equity Fund (b) (c) 43,736 $378,140 $ 8.65 1,908 $16,531 $ 8.67
CLASS B SHARES CLASS C SHARES
-------------------------- ------------------------
NET NET
NET ASSET NET ASSET
SHARES ASSETS VALUE SHARES ASSETS VALUE
------ -------- ------ ------ ------- ------
Worldwide Fund (a) NA NA NA 30 $ 370 $12.52
International Equity Fund (a) 48 $ 413 $ 8.59 16 134 8.38
International GDP Fund (a) 6 70 11.41 1 9 11.51
------ -------- ------ ------ ------- ------
International Equity Fund (b) (c) 56 $ 483 $ 8.59 61 $ 513 $ 8.38
ADVISOR SHARES
--------------------------
NET UNREALIZED
NET ASSET APPRECIATION
SHARES ASSETS VALUE (DEPRECIATION)
------ -------- ------ --------------
Worldwide Fund (a) 1,249 $ 15,823 $12.67 $ 1,422
International Equity Fund (a) NA NA NA 4,477
International GDP Fund (a) NA NA NA (33,788)
------ -------- ------ --------------
International Equity Fund (b) (c) 1,826 $ 15,823 $ 8.67 $(27,889)
__________________________
(a) Before reorganization.
(b) After reorganization.
(c) The Fifth Third International Equity 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, 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.
147
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
SECURITIES VALUATIONS--Portfolio securities listed or traded on domestic
securities exchanges or the NASDAQ/NMS, including American Depositary Receipts
("ADR"), 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"), if applicable. Securities
invested in the International Equity 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. In addition, if
events materially affecting the value of foreign securities occur between the
time when the exchange on which they are traded closes and the time when the
Funds' net assets are calculated, such securities may be valued using fair value
pricing in accordance with procedures adopted by the Trustees. Management
identifies possible fluctuations in foreign securities by monitoring the rise or
fall in the value of a designated benchmark index. In the event of a rise or
fall greater than predetermined levels, the International Equity Fund may use a
systematic valuation model provided by an independent third party to value its
foreign securities. When the International Equity Fund uses fair value pricing,
the value assigned to the International Equity Fund's foreign securities may not
be the quoted or published prices of the investment on their primary markets or
exchanges.
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 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.
SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are
accounted for on a trade date plus one business day basis which does not differ
materially from a trade date basis. Interest income is recognized on the accrual
basis and includes, where applicable, 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.
FOREIGN CURRENCY TRANSLATION--The International Equity Fund does not isolate
that portion of the results of operations resulting from changes in foreign
exchange rates on investments from the fluctuations arising from changes in 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.
FORWARD CURRENCY CONTRACTS--The International Equity Fund may enter into forward
currency contracts ("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. The Fund could be
exposed to risk if a counterparty is unable to meet the terms of a forward or if
the value of the currency changes unfavorably.
148
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
FOREIGN CURRENCY COMMITMENTS--The International Equity 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 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.
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 held
$2,825,789 in cash as collateral for its futures contracts which is restricted
as to its use by the Fund.
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.
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.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS (TBA)--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.
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
149
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
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.
IN-KIND REDEMPTIONS--In certain circumstances, the Funds may distribute
portfolio securities rather than cash as payment for a redemption of fund shares
(in-kind redemption). For financial reporting purposes, the Funds recognize a
gain on the in-kind redemptions to the extent the value of the distributed
securities on the date of redemption exceeds the cost of those securities; the
Funds recognize a loss if cost exceeds value. Gains and losses realized on
in-kind redemptions are not recognized for tax purposes, and are reclassified
from undistributed realized gain (loss) to paid-in capital. During the year
ended July 31, 2004, the Small Cap Growth Fund, Equity Index Fund and Short Term
Bond Fund realized $14,798,578, $27,997,420 and $295,083 of net gain on
$68,068,238, $216,918,369 and $57,127,702 of in-kind redemptions, respectively.
OTHER--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. Income, expenses, and realized and unrealized gains or losses
on investments are allocated to each class of shares based on its relative net
assets, except that each class separately bears expenses related specifically to
that class, such as distribution fees.
DISTRIBUTIONS TO SHAREHOLDERS--Dividends, if any, from net investment income are
declared daily and paid monthly for the Strategic Income Fund. Dividends, if
any, from net investment income are declared and paid monthly for the Bond Fund,
Intermediate Bond Fund, Short Term Bond Fund, U.S. Government Bond Fund,
Municipal Bond Fund, Intermediate Municipal Bond Fund, Ohio Municipal Bond Fund
and Michigan Municipal Bond Fund. Dividends, if any, from net investment income
are declared and paid quarterly for the Mid Cap Growth 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 Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate
Fund SM, LifeModel Moderately Conservative Fund SM, LifeModel Conservative Fund
SM, Select Stock Fund 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 and International Equity 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.
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.
150
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
(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, Quality Growth Fund, Balanced Fund,
Disciplined Large Cap Value Fund and Select Stock 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 and International Equity Fund, 0.90% for the Small
Cap Value Fund, 0.15% for the LifeModel Aggressive Fund SM, LifeModel Moderately
Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately
Conservative Fund SM and LifeModel Conservative FundSM, 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.
Morgan Stanley Asset Management, Inc. is the International Equity Fund's
Sub-Advisor. The Advisor compensates the Sub-Advisor at a rate based on the
Fund's average daily net assets. The Advisor assumed all advisory services for
the Small Cap Value Fund on May 1, 2004, as the sub-advisory agreement with
Chartwell Investment Partners L.P. automatically terminated on April 30, 2004.
ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third"), an affiliate of the
Advisor, 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 average daily 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 subject to certain minimums and reimbursement of out-of-pocket
expenses. In addition, BISYS provides an employee to serve as Chief Compliance
Officer for the Funds including providing certain related services, for which it
receives an additional fee.
The Advisor and Administrator have entered into expense limitation agreements
with the Trust. Under the terms of the agreements, to the extent that ordinary
operating expenses incurred by a Fund in any fiscal year exceed the expense
limit for the Fund, such excess amount will be the liability of the Advisor and
Administrator. If the operating expenses are less than the expense limit for the
Fund, the Advisor and Administrator shall be entitled to reimbursement of the
fees waived or reduced to the extent that the operating expenses and the amount
reimbursed do not exceed such expense limit for the Fund. Such reimbursement
shall be paid only while the expense limitation agreement is in effect and only
if such amount paid, together with all other amounts reimbursed under this plan
in the fiscal year, does not cause the Fund to exceed the expense limit. For the
period from November 30, 2003 through July 31, 2004, the expense limits and the
cumulative reimbursement that may potentially be made by the Funds is as follows
(Amounts in thousands):
LARGE CAP SMALL CAP SELECT STOCK BOND INTERMEDIATE
CORE FUND VALUE FUND FUND FUND BOND FUND
--------- ---------- ------------ ----- ------------
Institutional Shares 0.92% 1.25% 1.45% 0.79% 0.76%
Class A Shares 1.17% 1.50% 1.70% 1.04% 1.01%
Class B Shares 1.92% 2.25% 2.45% 1.79% 1.76%
Class C Shares 1.92% 2.25% 2.45% 1.79% 1.76%
Advisor Shares NA 1.75% NA 1.29% NA
Amount subject to recoupment
expiring on November 30, 2004 $ 109 $ 71 $ 46 $ 236 $ 296
151
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
INTERMEDIATE MICHIGAN
SHORT TERM MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
---------- --------- ------------ ---------
Institutional Shares 0.74% 0.79% 0.73% 0.69%
Class A Shares 0.99% 1.04% 0.98% 0.94%
Class B Shares NA 1.79% 1.73% 1.69%
Class C Shares 1.74% 1.79% 1.73% 1.69%
Advisor Shares NA 1.29% NA NA
Amount subject to recoupment
expiring on November 30, 2004 $ 111 $ 94 $ 210 $ 82
LIFEMODEL
EQUITY LIFEMODEL MODERATELY LIFEMODEL
INDEX AGGRESSIVE AGGRESSIVE MODERATE
FUND FUND SM FUND SM FUND SM
-------- ---------- ----------- ---------
Institutional Shares 0.19% 0.08% 0.08% 0.08%
Class A Shares 0.44% 0.33% 0.33% 0.33%
Class B Shares 1.19% 1.08% 1.08% 1.08%
Class C Shares 1.19% 1.08% 1.08% 1.08%
Advisor Shares 0.69% NA NA NA
Select Shares 0.27% NA NA NA
Preferred Shares 0.34% NA NA NA
Trust Shares 0.44% NA NA NA
Amount subject to recoupment
expiring on November 30, 2005. $1,542 $ 469* $ 855* $ 1,132*
LIFEMODEL
MODERATELY LIFEMODEL INTERNATIONAL
CONSERVATIVE CONSERVATIVE EQUITY
FUND SM FUND SM FUND
------------ ------------ -------------
Institutional Shares 0.08% 0.08% 1.35%
Class A Shares 0.33% 0.33% 1.60%
Class B Shares 1.08% 1.08% 2.35%
Class C Shares 1.08% 1.08% 2.35%
Advisor Shares NA NA 1.85%
Amount subject to recoupment
expiring on November 30, 2005. $ 543* $ 374* $ 187
* Amount of recoupment is for the period from August 1, 2002 through July 31,
2004.
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 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 expenses 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 year ended July 31, 2004, the Distributor
received $5,749,067 from commissions earned on sales of Class A Shares and
redemption of Class B Shares and Class C Shares, of which, the Distributor
re-allowed $5,636,679 to affiliated broker-dealers of the Funds.
ADMINISTRATIVE SERVICES FEE--The Trust has approved an Administrative Services
Agreement with the Distributor with respect to Class C Shares, Select Shares,
Preferred Shares and Trust Shares. Under the Agreement, the Funds may make
payments to the distributor and other financial institutions, which may include
affiliates of the advisor, of up to 0.25% of the average daily net assets for
Class C Shares, up to 0.08% of the average daily net assets for Select Shares,
up to 0.15% of the average daily net assets for Preferred Shares and up to 0.25%
of the average daily net assets for Trust Shares in exchange for certain
administrative services fees for shareholders and for the maintenance of
shareholder accounts.
152
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
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 daily 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 plus annual fees for additional
classes of shares per Fund and reimbursement of out-of-pocket fees and other
miscellaneous expenses.
Certain officers of the Trust are affiliated with the above companies, but are
not paid any fees directly by the Trust for serving as officers of the Trust.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the
period ended July 31, 2004, were as follows (Amounts in thousands):
PURCHASES SALES
---------- ----------
Small Cap Growth Fund $ 316,526 $ 514,950
Mid Cap Growth Fund 315,034 312,925
Quality Growth Fund 473,619 397,902
Large Cap Core Fund 147,821 257,249
Equity Index Fund 82,976 220,952
Balanced Fund 390,585 484,671
Micro Cap Value Fund 87,423 45,978
Small Cap Value Fund 244,800 229,846
Multi Cap Value Fund 65,081 46,272
Disciplined Large Cap Value Fund 335,474 108,137
LifeModel Aggressive Fund SM 68,580 16,908
LifeModel Moderately Aggressive Fund SM 130,476 27,538
LifeModel Moderate Fund SM 374,645 37,595
LifeModel Moderately Conservative Fund SM 49,583 17,252
LifeModel Conservative Fund SM 29,333 12,536
Strategic Income Fund 83,717 58,915
Select Stock Fund 17,349 24,532
Technology Fund 119,402 102,502
International Equity Fund 151,608 217,421
Bond Fund 1,223,597 1,258,280
Intermediate Bond Fund 1,329,571 1,382,319
Short Term Bond Fund 431,117 419,051
U.S. Government Bond Fund 141,568 136,824
Municipal Bond Fund 24,980 43,899
Intermediate Municipal Bond Fund 238,047 244,777
Ohio Municipal Bond Fund 25,803 57,102
Michigan Municipal Bond Fund 26,041 36,320
153
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
(6) LINE OF CREDIT
The Trust participates in a credit agreement with Citibank N.A. Under the terms
of the agreement, the Trust may borrow up to $75 million. The purpose of the
agreement is to meet temporary or emergency cash needs, including redemption
requests that might otherwise require the untimely disposition of securities.
Citibank N.A. receives an annual facility fee of 0.09% on the aggregate
principal amount committed under the agreement for providing the Line of Credit.
Each Fund pays a pro-rata portion of this facility fee, plus any interest on
amounts borrowed. For the year ended July 31, 2004, there were no borrowings
against the line of credit.
(7) FEDERAL TAX INFORMATION
The Funds designate the following amounts as long term capital gain
distributions qualifying for the maximum 15% income tax rate for individuals.
The amounts designated may not agree with the long term capital gains in the tax
character of distribution table due to utilization of earnings and profits
distributed to shareholders on redemption of shares. (Amounts in thousands):
AMOUNT
-------
Small Cap Growth Fund $56,925
Micro Cap Value Fund 6,560
Multi Cap Value Fund 1,207
Disciplined Large Cap Value Fund 8,117
LifeModel Aggressive Fund SM 94
LifeModel Moderately Aggressive Fund SM 25
LifeModel Moderate Fund SM 28
LifeModel Moderately Conservative Fund SM 12
LifeModel Conservative Fund SM 7
U.S. Government Bond Fund 529
Municipal Bond Fund 1,274
Intermediate Municipal Bond Fund 2,793
Ohio Municipal Bond Fund 555
Michigan Municipal Bond Fund 186
The tax character of distributions paid during the fiscal year ended July 31,
2004 was as follows (Amounts in thousands):
DISTRIBUTIONS PAID FROM
-----------------------
NET
LONG TERM TAX TOTAL
ORDINARY CAPITAL EXEMPT DISTRIBUTIONS
INCOME GAINS INCOME PAID
-------- --------- ------- -------------
Small Cap Growth Fund -- $38,533 -- $38,533
Large Cap Core Fund $ 1,268 -- -- 1,268
Equity Index Fund 8,131 -- -- 8,131
Balanced Fund 2,629 -- -- 2,629
Micro Cap Value Fund 5,591 6,560 -- 12,151
Small Cap Value Fund 4,071 -- -- 4,071
Multi Cap Value Fund 508 928 -- 1,436
Disciplined Large Cap Value Fund 11,531 8,117 -- 19,648
LifeModel Aggressive Fund SM 1,590 7 -- 1,597
LifeModel Moderately Aggressive Fund SM 3,790 25 -- 3,815
LifeModel Moderate Fund SM 5,489 28 -- 5,517
LifeModel Moderately Conservative Fund SM 3,330 12 -- 3,342
LifeModel Conservative Fund SM 1,741 7 -- 1,748
Strategic Income Fund 7,316 -- -- 7,316
International Equity Fund 4,086 -- -- 4,086
Bond Fund 11,354 -- -- 11,354
Intermediate Bond Fund 29,176 -- -- 29,176
Short Term Bond Fund 15,629 -- -- 15,629
U.S. Government Bond Fund 2,781 529 -- 3,310
Municipal Bond Fund 325 861 $ 2,907 4,093
Intermediate Municipal Bond Fund 497 2,119 9,854 12,470
Ohio Municipal Bond Fund -- 436 5,724 6,160
Michigan Municipal Bond Fund -- 186 3,500 3,686
154
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
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 TAX TOTAL
ORDINARY CAPITAL EXEMPT DISTRIBUTIONS
INCOME GAINS INCOME PAID
-------- --------- ------- -------------
Quality Growth Fund $ 46 -- -- $ 46
Large Cap Core Fund 3,353 -- -- 3,353
Equity Index Fund 8,109 -- -- 8,109
Balanced Fund 3,953 -- -- 3,953
Micro Cap Value Fund 30 $ 645 -- 675
Disciplined Large Cap Value Fund 3,542 2,914 -- 6,456
LifeModel Aggressive Fund SM 64 -- -- 64
LifeModel Moderately Aggressive Fund SM 368 -- -- 368
LifeModel Moderate Fund SM 644 -- -- 644
LifeModel Moderately Conservative Fund SM 503 -- -- 503
LifeModel Conservative Fund SM 384 -- -- 384
Strategic Income Fund 3,714 -- -- 3,714
International Equity Fund 888 -- -- 888
Bond Fund 16,599 -- -- 16,599
Intermediate Bond Fund 34,323 -- -- 34,323
Short Term Bond Fund 16,895 -- -- 16,895
U.S. Government Bond Fund 2,461 590 -- 3,051
Municipal Bond Fund 148 1,270 $ 3,674 5,092
Intermediate Municipal Bond Fund 49 2,213 11,118 13,380
Ohio Municipal Bond Fund -- -- 6,628 6,628
Michigan Municipal Bond Fund 44 336 3,538 3,918
As of July 31, 2004, the components of accumulated earnings/(deficit) on a tax
basis was as follows (Amounts in thousands):
UNDISTRIBUTE UNDISTRIBUTED UNDISTRIBUTED
TAX EXEMPT ORDINARY LONG-TERM DISTRIBUTIONS
INCOME INCOME CAPITAL GAINS PAYABLE
------------ ----------- ------------- -------------
Small Cap Growth Fund -- -- $ 44,826 --
Mid Cap Growth Fund -- -- -- --
Quality Growth Fund -- -- -- --
Large Cap Core Fund -- $ 2,828 -- --
Equity Index Fund -- 430 -- --
Balanced Fund -- 204 -- --
Micro Cap Value Fund -- 3,376 11,531 --
Small Cap Value Fund -- 7,393 3,613 --
Multi Cap Value Fund -- -- 10,040 --
Disciplined Large Cap Value Fund -- 3,054 10,680 --
LifeModel Aggressive Fund SM -- -- 685 --
LifeModel Moderately Aggressive Fund SM -- 225 1,350 --
LifeModel Moderate Fund SM -- 587 1,019 --
LifeModel Moderately Conservative Fund SM -- 314 622 --
LifeModel Conservative Fund SM -- 370 183 --
Strategic Income Fund -- 440 -- $ (609)
Select Stock Fund -- -- -- --
Technology Fund -- -- -- --
International Equity Fund -- 3,869 -- --
Bond Fund -- 49 -- --
Intermediate Bond Fund -- 194 -- --
Short Term Bond Fund -- 72 -- --
U.S. Government Bond Fund -- 46 -- --
Municipal Bond Fund $ 11 -- 2,245 --
Intermediate Municipal Bond Fund 95 -- 1,754 --
Ohio Municipal Bond Fund 25 -- 812 --
Michigan Municipal Bond Fund 8 -- -- --
ACCUMULATED TOTAL
CAPITAL AND UNREALIZED ACCUMULATED
OTHER APPRECIATION/ EARNINGS/
LOSSES (DEPRECIATION)* (DEFICIT)
------------ ---------------- ------------
Small Cap Growth Fund -- $ 37,248 $ 82,074
Mid Cap Growth Fund $ (24,599) 48,269 23,670
Quality Growth Fund (147,947) 103,564 (44,383)
Large Cap Core Fund (45,013) 7,418 (34,767)
Equity Index Fund (53,138) 226,230 173,522
Balanced Fund (59,432) 8,421 (50,807)
Micro Cap Value Fund -- 63,284 78,191
Small Cap Value Fund -- 5,534 16,540
Multi Cap Value Fund -- 68,424 78,464
Disciplined Large Cap Value Fund -- 98,545 112,279
LifeModel Aggressive Fund SM -- 9,953 10,638
LifeModel Moderately Aggressive Fund SM -- 17,658 19,233
LifeModel Moderate Fund SM -- 7,665 9,271
LifeModel Moderately Conservative Fund SM -- 5,307 6,243
LifeModel Conservative Fund SM -- 805 1,358
Strategic Income Fund (229) 2,542 2,144
Select Stock Fund (17,788) 799 (16,989)
Technology Fund (51,899) (1,903) (53,802)
International Equity Fund (50,634) (33,373) (80,138)
Bond Fund (1,906) 2,846 989
Intermediate Bond Fund (25,395) 1,789 (23,412)
Short Term Bond Fund (8,674) (7,360) (15,962)
U.S. Government Bond Fund (420) 398 24
Municipal Bond Fund -- 4,647 6,903
Intermediate Municipal Bond Fund -- 11,774 13,623
Ohio Municipal Bond Fund -- 5,696 6,533
Michigan Municipal Bond Fund (27) 1,487 1,468
_______________
* 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.
155
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2004
- --------------------------------------------------------------------------------
As of July 31, 2004, 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 2012 TOTAL
-------- -------- -------- -------- -------- -------- -------- -------- --------
Mid Cap Growth Fund -- -- -- -- -- -- $ 24,599 -- $ 24,599
Quality Growth Fund -- -- -- -- -- $ 10,584 133,396 -- 143,980
Large Cap Core Fund -- -- -- -- -- -- -- $ 793 793
Equity Index Fund -- -- -- -- $ 4,024 3,128 45,380 606 53,138
Balanced Fund -- -- -- -- -- 1,225 58,207 -- 59,432
Strategic Income Fund -- -- -- $ 229 -- -- -- -- 229
Select Stock Fund -- -- -- -- -- 14,725 3,024 39 17,788
Technology Fund -- -- -- -- -- 18,958 32,941 -- 51,899
International Equity Fund -- -- -- -- -- -- 6,809 -- 6,809
Bond Fund -- -- -- 727 -- -- -- 664 1,391
Intermediate Bond Fund -- -- -- 3,390 -- 313 -- 2,968 6,671
Short Term Bond Fund $ 1,366 $ 238 $ 220 1,126 -- -- -- 733 3,683
U.S. Government Bond Fund -- -- -- -- -- -- -- 330 330
As of July 31, 2004, 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 2008 2009 2010 2011 TOTAL
------- ------- ------- ------- ------- -------
Large Cap Core Fund -- $22,479 $21,741 -- -- $44,220
International Equity Fund -- 3,692 2,500 $32,328 $ 5,305 43,825
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, 2004, the Funds deferred to August 1, 2004 post October
capital losses, post October currency losses and post October passive foreign
investment company losses of (Amounts in thousands):
CAPITAL
LOSSES
-------
Quality Growth Fund $3,967
Bond Fund 515
Intermediate Bond Fund 7,351
Short Term Bond Fund 4,991
U.S. Government Bond Fund 90
Michigan Municipal Bond Fund 27
(8) CONCENTRATION OF CREDIT RISK
The International Equity Fund invests in equity and fixed income securities of
non-U.S. issuers. Although the Fund maintains 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.
The Intermediate Municipal Bond Fund held a substantial amount of their assets
in debt obligations issued by the State of Michigan and their political
subdivisions, agencies and public authorities at July 31, 2004. 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.
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.
156
This page intentionally left blank.
157
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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 12/31/99 $ 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
Year ended 7/31/04 $ 15.90 (0.12)+ 1.43 1.31
--------- ------------ ------------ ---------
SMALL CAP GROWTH FUND CLASS A SHARES
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
Year ended 7/31/04 $ 15.65 (0.17)+ 1.43 1.26
--------- ------------ ------------ ---------
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
Year ended 7/31/04 $ 15.61 (0.29)+ 1.43 1.14
--------- ------------ ------------ ---------
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
Year ended 7/31/04 $ 15.62 (0.29)+ 1.43 1.14
--------- ------------ ------------ ---------
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
Year ended 7/31/04 $ 15.75 (0.21)+ 1.44 1.23
--------- ------------ ------------ ---------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
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)+ 1.85 1.78
Year ended 7/31/04 $ 12.02 (0.09) 1.03 0.94
--------- ------------ ------------ ---------
MID CAP GROWTH FUND CLASS A SHARES
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
Year ended 7/31/04 $ 11.82 (0.12) 1.02 0.90
--------- ------------ ------------ ---------
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)+ 1.78 1.61
Year ended 7/31/04 $ 11.59 (0.21) 1.00 0.79
--------- ------------ ------------ ---------
MID CAP GROWTH FUND CLASS C SHARES
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)+ 1.70 1.54
Year ended 7/31/04 $ 11.17 (0.21) 0.98 0.77
--------- ------------ ------------ ---------
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)+ 1.81 1.69
Year ended 7/31/04 $ 11.78 (0.12) 0.99 0.87
--------- ------------ ------------ ---------
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 12/31/99 (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%
Year ended 7/31/04 -- (1.73) (1.73) $ 15.48 7.31%
--------- -------- ------------- -------- --------
SMALL CAP GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 -- (1.73) (1.73) $ 15.18 7.16%
--------- -------- ------------- -------- --------
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%
Year ended 7/31/04 -- (1.73) (1.73) $ 15.02 6.30%
--------- -------- ------------- -------- --------
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%
Year ended 7/31/04 -- (1.73) (1.73) $ 15.03 6.29%
--------- -------- ------------- -------- --------
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%
Year ended 7/31/04 -- (1.73) (1.73) $ 15.25 6.84%
--------- -------- ------------- -------- --------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 -- -- -- $ 12.96 7.82%
--------- -------- ------------- -------- --------
MID CAP GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 -- -- -- $ 12.72 7.61%
--------- -------- ------------- -------- --------
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%
Year ended 7/31/04 -- -- -- $ 12.38 6.82%
--------- -------- ------------- -------- --------
MID CAP GROWTH FUND CLASS C SHARES
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%
Year ended 7/31/04 -- -- -- $ 11.94 6.89%
--------- -------- ------------- -------- --------
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%
Year ended 7/31/04 -- -- -- $ 12.65 7.39%
--------- -------- ------------- -------- --------
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 12/31/99 $ 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%
Year ended 7/31/04 $ 223,439 1.00% (0.72%) 1.00% 95%
--------- --------- ------------- ---------- ---------
SMALL CAP GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 25,921 1.25% (0.99%) 1.25% 95%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,784 2.00% (1.74%) 2.00% 95%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 810 2.00% (1.74%) 2.00% 95%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,173 1.51% (1.26%) 1.51% 95%
--------- --------- ------------- ---------- ---------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 335,815 1.09% (0.68%) 1.09% 83%
--------- --------- ------------- ---------- ---------
MID CAP GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 49,586 1.34% (0.93%) 1.34% 83%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 6,730 2.09% (1.68%) 2.09% 83%
--------- --------- ------------- ---------- ---------
MID CAP GROWTH FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 1,700 2.09% (1.68%) 2.09% 83%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 962 1.59% (1.17%) 1.59% 83%
--------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
158-159 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------- ------------- ----------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 14.23 (0.04) 0.42 0.38
--------- ------------- ------------- ----------
QUALITY GROWTH FUND CLASS A SHARES
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
Year ended 7/31/04 $ 14.04 (0.08) 0.42 0.34
--------- ------------- ------------- ----------
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
Year ended 7/31/04 $ 13.75 (0.19) 0.43 0.24
--------- ------------- ------------- ----------
QUALITY GROWTH FUND CLASS C SHARES
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
Year ended 7/31/04 $ 13.40 (0.20) 0.43 0.23
--------- ------------- ------------- ----------
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
Year ended 7/31/04 $ 13.98 (0.09) 0.40 0.31
--------- ------------- ------------- ----------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 11.84 0.12 1.36 1.48
--------- ------------- ------------- ----------
LARGE CAP CORE FUND CLASS A SHARES
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
Year ended 7/31/04 $ 11.70 0.07 1.36 1.43
--------- ------------- ------------- ----------
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
Year ended 7/31/04 $ 11.75 (0.02) 1.36 1.34
--------- ------------- ------------- ----------
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
Year ended 7/31/04 $ 11.76 (0.01) 1.35 1.34
--------- ------------- ------------- ----------
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)
--------- ---------- ------------- --------- ---------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 -- -- -- $ 14.61 2.67%
--------- --------- ------------ -------- -------
QUALITY GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 -- -- -- $ 14.38 2.42%
--------- --------- ------------ -------- -------
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%
Year ended 7/31/04 -- -- -- $ 13.99 1.75%
--------- --------- ------------ -------- -------
QUALITY GROWTH FUND CLASS C SHARES
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%
Year ended 7/31/04 -- -- -- $ 13.63 1.72%
--------- --------- ------------ -------- -------
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%
Year ended 7/31/04 -- -- -- $ 14.29 2.22%
--------- --------- ------------ -------- -------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.12) -- (0.12) $ 13.20 12.50%
--------- --------- ------------ -------- -------
LARGE CAP CORE FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.09) -- (0.09) $ 13.04 12.21%
--------- --------- ------------ -------- -------
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%
Year ended 7/31/04 (0.01) -- (0.01) $ 13.08 11.47%
--------- --------- ------------ -------- -------
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%
Year ended 7/31/04 (0.02) -- (0.02) $ 13.08 11.38%
--------- --------- ------------ -------- -------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS OF RATIOS OF
NET REXPENSES 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)
--------- --------- ------------- ---------- ---------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 882,256 1.07% (0.24%) 1.07% 35%
--------- --------- ------------- ---------- ---------
QUALITY GROWTH FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 220,904 1.32% (0.49%) 1.32% 35%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 20,947 2.07% (1.24%) 2.07% 35%
--------- --------- ------------- ---------- ---------
QUALITY GROWTH FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 7,536 2.07% (1.24%) 2.07% 35%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 3,127 1.57% (0.75%) 1.57% 35%
--------- --------- ------------- ---------- ---------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 90,222 0.92% 0.84% 1.04% 101%
--------- --------- ------------- ---------- ---------
LARGE CAP CORE FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 25,573 1.17% 0.58% 1.29% 101%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 783 1.92% (0.17%) 2.04% 101%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 158 1.92% (0.23%) 2.03% 101%
--------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
160-161 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------ ------------- -----------
EQUITY INDEX FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 18.93 0.29+ 2.12 2.41
--------- ----------- ------------- ----------
EQUITY INDEX FUND CLASS A SHARES
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
Year ended 7/31/04 $ 18.87 0.25+ 2.10 2.35
--------- ----------- ------------- ----------
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
Year ended 7/31/04 $ 18.78 0.09+ 2.09 2.18
--------- ----------- ------------- ----------
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
Year ended 7/31/04 $ 18.78 0.09+ 2.10 2.19
--------- ----------- ------------- ----------
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
Year ended 7/31/04 $ 18.86 0.20+ 2.10 2.30
--------- ----------- ------------- ----------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.22+ 1.18 1.40
--------- ----------- ------------- ----------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.22+ 1.18 1.40
--------- ----------- ------------- ----------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.20+ 1.18 1.38
--------- ----------- ------------- ----------
BALANCED FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 11.38 0.13 0.64 0.77
--------- ----------- ------------- ----------
BALANCED FUND CLASS A SHARES
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
Year ended 7/31/04 $ 11.32 0.10 0.63 0.73
--------- ----------- ------------- ----------
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
Year ended 7/31/04 $ 11.19 0.01 0.63 0.64
--------- ----------- ------------- ----------
BALANCED FUND CLASS C SHARES
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
Year ended 7/31/04 $ 11.17 0.01 0.63 0.64
--------- ----------- ------------- ----------
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
Year ended 7/31/04 $ 11.30 0.06 0.64 0.70
--------- ----------- ------------- ----------
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)
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.33) -- (0.33) $ 21.01 12.75%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.28) -- (0.28) $ 20.94 12.48%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 (0.13) -- (0.13) $ 20.83 11.64%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 (0.13) -- (0.13) $ 20.84 11.66%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 (0.24) -- (0.24) $ 20.92 12.21%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 (0.26) -- (0.26) $ 21.00 7.03%*
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 (0.25) -- (0.25) $ 21.01 7.03%*
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 (0.23) -- (0.23) $ 21.01 6.95%*
--------- ---------- ------------- --------- ---------
BALANCED FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.15) -- (0.15) $ 12.00 6.76%
--------- ---------- ------------- --------- ---------
BALANCED FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.12) -- (0.12) $ 11.93 6.52%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 (0.03) -- (0.03) $ 11.80 5.72%
--------- ---------- ------------- --------- ---------
BALANCED FUND CLASS C SHARES
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%
Year ended 7/31/04 (0.03) -- (0.03) $ 11.78 5.71%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 (0.09) -- (0.09) $ 11.91 6.31%
--------- ---------- ------------- --------- ---------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS OF RATIOS OF
NET REXPENSES 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)
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 193,734 0.27% 1.43% 0.58% 14%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 72,944 0.47% 1.19% 0.86% 14%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 $ 3,776 1.23% 0.44% 1.60% 14%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 $ 1,990 1.23% 0.44% 1.60% 14%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 $ 1,296 0.71% 0.94% 1.11% 14%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 $ 14,315 0.27%** 1.32%** 0.69%** 14%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 $ 165,845 0.34%** 1.31%** 0.76%** 14%
--------- ---------- ------------- --------- ---------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 $ 80,759 0.44%** 1.22%** 0.86%** 14%
--------- ---------- ------------- --------- ---------
BALANCED FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 98,282 1.13% 1.07% 1.13% 166%
--------- ---------- ------------- --------- ---------
BALANCED FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 74,231 1.38% 0.79% 1.38% 166%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 $ 13,117 2.13% 0.05% 2.13% 166%
--------- ---------- ------------- --------- ---------
BALANCED FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 4,731 2.13% 0.05% 2.13% 166%
--------- ---------- ------------- --------- ---------
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%
Year ended 7/31/04 $ 176 1.64% 0.52% 1.64% 166%
--------- ---------- ------------- --------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
162-163 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------- -------------- ----------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
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)+ 2.40 2.36
Year ended 7/31/04 $ 8.20 (0.02)+ 2.66 2.64
--------- ------------- -------------- ----------
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)+ 2.37 2.31
Year ended 7/31/04 $ 8.08 (0.05)+ 2.63 2.58
--------- ------------- -------------- ----------
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)+ 2.33 2.23
Year ended 7/31/04 $ 7.97 (0.08)+ 2.59 2.51
--------- ------------- -------------- ----------
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)+ 2.33 2.23
Year ended 7/31/04 $ 7.97 (0.08)+ 2.59 2.51
--------- ------------- -------------- ----------
MICRO CAP VALUE FUND ADVISOR SHARES
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)+ 2.36 2.29
Year ended 7/31/04 $ 8.05 (0.06)+ 2.62 2.56
--------- ------------- -------------- ----------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 $ 15.00 --^ 2.54 2.54
Year ended 7/31/04 $ 17.54 (0.03)+ 3.50 3.47
--------- ------------- -------------- ----------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.53 2.52
Year ended 7/31/04 $ 17.52 (0.11)+ 3.52 3.41
--------- ------------- -------------- ----------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48
Year ended 7/31/04 $ 17.48 (0.25)+ 3.51 3.26
--------- ------------- -------------- ----------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48
Year ended 7/31/04 $ 17.48 (0.26)+ 3.50 3.24
--------- ------------- -------------- ----------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.52 2.51
Year ended 7/31/04 $ 17.51 (0.16)+ 3.52 3.36
--------- ------------- -------------- ----------
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)
---------- --------- ------------- --------- ---------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.32 32.84%
---------- --------- ------------- --------- ---------
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%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.14 32.56%
---------- --------- ------------- --------- ---------
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%
Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13%
---------- --------- ------------- --------- ---------
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%
Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13%
---------- --------- ------------- --------- ---------
MICRO CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.09 32.44%
---------- --------- ------------- --------- ---------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.54 16.87%*
Year ended 7/31/04 (0.02) (0.98) (1.00) $ 20.01 20.11%
---------- --------- ------------- --------- ---------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.52 16.73%*
Year ended 7/31/04 --^ (0.98) (0.98) $ 19.95 19.81%
---------- --------- ------------- --------- ---------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.48 16.47%*
Year ended 7/31/04 -- (0.98) (0.98) $ 19.76 19.02%
---------- --------- ------------- --------- ---------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.48 16.47%*
Year ended 7/31/04 -- (0.98) (0.98) $ 9.74 18.85%
---------- --------- ------------- --------- ---------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.51 16.67%*
Year ended 7/31/04 -- (0.98) (0.98) $ 19.89 19.52%
---------- --------- ------------- --------- ---------
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)
--------- --------- ------------- ---------- ---------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 155,798 1.33% (0.25%) 1.33% 23%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 41,402 1.58% (0.49%) 1.58% 23%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 6,937 1.89% (0.81%) 2.33% 23%
--------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 5,624 1.81% (0.82%) 2.33% 23%
--------- --------- ------------- ---------- ---------
MICRO CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/04 $ 41,514 1.68% (0.61%) 1.83% 23%
--------- --------- ------------- ---------- ---------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 $ 72,783 1.24%** 0.03%** 1.60%** 39%
Year ended 7/31/04 $ 107,344 1.25% (0.15%) 1.41% 279%
--------- --------- ------------- ---------- ---------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $ 216 1.47%** (0.21%)** 1.86%** 39%
Year ended 7/31/04 $ 2,277 1.49% (0.53%) 1.63% 279%
--------- --------- ------------- ---------- ---------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $ 103 2.22%** (1.07%)** 2.60%** 39%
Year ended 7/31/04 $ 503 2.24% (1.26%) 2.38% 279%
--------- --------- ------------- ---------- ---------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $ 15 2.23%** (0.97%)** 2.62%** 39%
Year ended 7/31/04 $ 561 2.24% (1.31%) 2.38% 279%
--------- --------- ------------- ---------- ---------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $ 216 1.72%** (0.51%)** 2.11%** 39%
Year ended 7/31/04 $ 1,606 1.74% (0.79%) 1.88% 279%
--------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
164-165 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------- -------------- ----------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 19.02 0.06 3.62 3.68
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 18.85 --^ 3.59 3.59
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 18.63 (0.14) 3.52 3.38
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 18.61 (0.13) 3.52 3.39
--------- ------------- -------------- ----------
MULTI CAP VALUE FUND ADVISOR SHARES
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
Year ended 7/31/04 $ 18.82 (0.05) 3.59 3.54
--------- ------------- -------------- ----------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
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+ 1.14 1.32
Year ended 7/31/04 $ 11.85 0.15 2.08 2.23
--------- ------------- -------------- ----------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
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+ 1.14 1.30
Year ended 7/31/04 $ 11.83 0.12 2.08 2.20
--------- ------------- -------------- ----------
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+ 1.15 1.23
Year ended 7/31/04 $ 11.93 0.03 2.09 2.12
--------- ------------- -------------- ----------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
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+ 1.11 1.19
Year ended 7/31/04 $ 11.76 0.02 2.07 2.09
--------- ------------- -------------- ----------
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)
---------- -------- ------- ------------- ------ ---------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.05) (0.07) -- (0.12) $22.58 19.36%
---------- -------- ------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.01) (0.07) -- (0.08) $22.36 19.07%
---------- -------- ------- ------------- ------ ---------
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%
Year ended 7/31/04 -- (0.07) -- (0.07) $21.94 18.15%
---------- -------- ------- ------------- ------ ---------
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%
Year ended 7/31/04 -- (0.07) -- (0.07) $21.93 18.22%
---------- -------- ------- ------------- ------ ---------
MULTI CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/04 -- (0.07) -- (0.07) $22.29 18.81%
---------- -------- ------- ------------- ------ ---------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.16) (0.40) -- (0.56) $13.52 19.22%
---------- -------- ------- ------------- ------ ---------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.13) (0.40) -- (0.53) $13.50 18.96%
---------- -------- ------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.04) (0.40) -- (0.44) $13.61 18.07%
---------- -------- ------- ------------- ------ ---------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
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%
Year ended 7/31/04 (0.05) (0.40) -- (0.45) $13.40 18.07%
---------- -------- ------- ------------- ------ ---------
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)
-------- --------- ------------- ---------- ---------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $235,228 1.30% 0.29% 1.30% 17%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 33,156 1.55% 0.04% 1.55% 17%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 18,795 2.30% (0.71%) 2.30% 17%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 3,824 2.30% (0.71%) 2.30% 17%
-------- --------- ------------- ---------- ---------
MULTI CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/04 $ 39,983 1.80% (0.20%) 1.80% 17%
-------- --------- ------------- ---------- ---------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $632,120 1.07% 1.27% 1.07% 22%
-------- --------- ------------- ---------- ---------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 21,738 1.32% 1.00% 1.32% 22%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 4,807 2.07% 0.27% 2.07% 22%
-------- --------- ------------- ---------- ---------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 1,832 2.06% 0.27% 2.06% 22%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
166-167 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
Year ended 7/31/04 $ 11.35 0.14# 1.31# 1.45
--------- ------------- -------------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.33# 1.35
Year ended 7/31/04 $ 11.33 0.11# 1.30# 1.41
--------- ------------- -------------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 (0.02)# 1.28# 1.26
Year ended 7/31/04 $ 11.26 0.05# 1.27# 1.32
--------- ------------- -------------- ----------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 (0.01)# 1.28# 1.27
Year ended 7/31/04 $ 11.26 0.03# 1.28# 1.31
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 1.58# 1.67
Year ended 7/31/04 $ 11.59 0.19# 1.03# 1.22
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.07# 1.58# 1.65
Year ended 7/31/04 $ 11.58 0.16# 1.04# 1.20
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
Year ended 7/31/04 $ 11.55 0.07# 1.03# 1.10
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
Year ended 7/31/04 $ 11.55 0.07# 1.02# 1.09
--------- ------------- -------------- ----------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.14# 0.92# 1.06
Year ended 7/31/04 $ 10.93 0.21# 0.76# 0.97
--------- ------------- -------------- ----------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.12# 0.92# 1.04
Year ended 7/31/04 $ 10.93 0.19# 0.74# 0.93
--------- ------------- -------------- ----------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.89# 0.95
Year ended 7/31/04 $ 10.89 0.12# 0.73# 0.85
--------- ------------- -------------- ----------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.90# 0.96
Year ended 7/31/04 $ 10.90 0.12# 0.73# 0.85
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.18# 0.60# 0.78
Year ended 7/31/04 $ 10.62 0.27# 0.51# 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
Year ended 7/31/04 $ 10.60 0.22# 0.53# 0.75
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.10# 0.58# 0.68
Year ended 7/31/04 $ 10.58 0.14# 0.53# 0.67
--------- ------------- -------------- ----------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 0.59# 0.68
Year ended 7/31/04 $ 10.59 0.14# 0.52# 0.66
--------- ------------- -------------- ----------
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)
---------- -------- ------------- ------ ---------
LIFEMODEL AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.04) -- (0.04) $11.35 13.92%*
Year ended 7/31/04 (0.13) (0.18) (0.31) $12.49 12.83%
---------- -------- ------------- ------ ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $11.33 13.57%*
Year ended 7/31/04 (0.11) (0.18) (0.29) $12.45 12.49%
---------- -------- ------------- ------ ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 --^ -- -- $11.26 12.65%*
Year ended 7/31/04 (0.10) (0.18) (0.28) $12.30 11.70%
---------- -------- ------------- ------ ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.01) -- (0.01) $11.26 12.74%*
Year ended 7/31/04 (0.09) (0.18) (0.27) $12.30 11.67%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.08) -- (0.08) $11.59 16.78%*
Year ended 7/31/04 (0.19) (0.14) (0.33) $12.48 10.54%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.07) -- (0.07) $11.58 16.51%*
Year ended 7/31/04 (0.17) (0.14) (0.31) $12.47 10.32%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $11.55 15.70%*
Year ended 7/31/04 (0.09) (0.14) (0.23) $12.42 9.47%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $11.55 15.71%*
Year ended 7/31/04 (0.09) (0.14) (0.23) $12.41 9.45%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.13) -- (0.13) $10.93 10.66%*
Year ended 7/31/04 (0.21) (0.12) (0.33) $11.57 8.84%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.11) -- (0.11) $10.93 10.48%*
Year ended 7/31/04 (0.18) (0.12) (0.30) $11.56 8.53%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.06) -- (0.06) $10.89 9.58%*
Year ended 7/31/04 (0.11) (0.12) (0.23) $11.51 7.80%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.06) -- (0.06) $10.90 9.67%*
Year ended 7/31/04 (0.12) (0.12) (0.24) $11.51 7.76%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.16) -- (0.16) $10.62 7.87%*
Year ended 7/31/04 (0.25) (0.20) (0.45) $10.95 7.39%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.14) -- (0.14) $10.60 7.51%*
Year ended 7/31/04 (0.22) (0.20) (0.42) $10.93 7.15%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.10) -- (0.10) $10.58 6.81%*
Year ended 7/31/04 (0.15) (0.20) (0.35) $10.90 6.35%
---------- -------- ------------- ------ ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.09) -- (0.09) $10.59 6.81%*
Year ended 7/31/04 (0.15) (0.20) (0.35) $10.90 6.29%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 $ 52,085 0.08% 1.09% 0.51% 22%
-------- --------- ------------- ---------- ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10,090 0.33%** 0.16%** 1.24%** 79%
Year ended 7/31/04 $ 38,249 0.33% 0.80% 0.76% 22%
-------- --------- ------------- ---------- ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 3,587 1.08%** (0.54%)** 2.06%** 79%
Year ended 7/31/04 $ 12,106 1.08% 0.03% 1.51% 22%
-------- --------- ------------- ---------- ---------
LIFEMODEL AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 532 1.08%** (0.62%)** 2.20%** 79%
Year ended 7/31/04 $ 1,916 1.08% 0.06% 1.51% 22%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 62,677 0.08%** 1.15%** 0.54%** 55%
Year ended 7/31/04 $ 82,264 0.08% 1.56% 0.45% 16%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 33,806 0.33%** 0.86%** 0.90%** 55%
Year ended 7/31/04 $ 94,739 0.33% 1.32% 0.70% 16%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 12,606 1.08%** 0.10%** 1.60%** 55%
Year ended 7/31/04 $ 39,636 1.08% 0.53% 1.45% 16%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY AGGRESSIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,386 1.08%** 0.06%** 1.61%** 55%
Year ended 7/31/04 $ 8,046 1.08% 0.48% 1.45% 16%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 71,538 0.08%** 1.82%** 0.52%** 55%
Year ended 7/31/04 $315,055 0.08% 1.76% 0.43% 14%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 28,991 0.33%** 1.52%** 0.84%** 55%
Year ended 7/31/04 $ 98,293 0.33% 1.79% 0.68% 14%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 14,631 1.08%** 0.74%** 1.63%** 55%
Year ended 7/31/04 $ 36,778 1.08% 1.05% 1.43% 14%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,335 1.08%** 0.70%** 1.66%** 55%
Year ended 7/31/04 $ 7,442 1.08% 1.04% 1.43% 14%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 40,412 0.08%** 2.23%** 0.60%** 72%
Year ended 7/31/04 $ 38,097 0.08% 2.33% 0.49% 19%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 19,449 0.33%** 1.82%** 1.04%** 72%
Year ended 7/31/04 $ 40,851 0.33% 2.09% 0.74% 19%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 9,083 1.08%** 1.09%** 1.80%** 72%
Year ended 7/31/04 $ 21,122 1.08% 1.31% 1.49% 19%
-------- --------- ------------- ---------- ---------
LIFEMODEL MODERATELY CONSERVATIVE FUNDSM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,017 1.08%** 1.07%** 1.73%** 72%
Year ended 7/31/04 $ 3,576 1.08% 1.26% 1.49% 19%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
168-169 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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 CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.23# 0.52# 0.75
Year ended 7/31/04 $ 10.54 0.31# 0.26# 0.57
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.21# 0.51# 0.72
Year ended 7/31/04 $ 10.53 0.26# 0.28# 0.54
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.16# 0.49# 0.65
Year ended 7/31/04 $ 10.50 0.19# 0.27# 0.46
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.50# 0.65
Year ended 7/31/04 $ 10.51 0.18# 0.28# 0.46
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 10.91 0.51 0.25 0.76
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 $ 11.65 0.17 (0.54) (0.37)
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 $ 11.65 0.15 (0.54) (0.39)
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 10.82 0.39 0.25 0.64
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND ADVISOR SHARES
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
Year ended 7/31/04 $ 10.88 0.46 0.25 0.71
--------- ------------- -------------- ----------
SELECT STOCK FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 18.17 (0.19) 1.12 0.93
--------- ------------- -------------- ----------
SELECT STOCK FUND CLASS A SHARES
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
Year ended 7/31/04 $ 17.94 (0.20) 1.08 0.88
--------- ------------- -------------- ----------
SELECT STOCK 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)
Year ended 7/31/04 $ 17.77 (0.31) 1.05 0.74
--------- ------------- -------------- ----------
SELECT STOCK FUND CLASS C SHARES
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)
Year ended 7/31/04 $ 17.30 (0.36) 1.07 0.71
--------- ------------- -------------- ----------
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)
---------- -------- ------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.21) -- -- (0.21) $10.54 7.58%*
Year ended 7/31/04 (0.29) (0.16) -- (0.45) $10.66 5.44%
---------- -------- ------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) -- -- (0.19) $10.53 7.31%*
Year ended 7/31/04 (0.27) (0.16) -- (0.43) $10.64 5.11%
---------- -------- ------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) -- -- (0.15) $10.50 6.54%*
Year ended 7/31/04 (0.19) (0.16) -- (0.35) $10.61 4.37%
---------- -------- ------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) -- -- (0.14) $10.51 6.58%*
Year ended 7/31/04 (0.20) (0.16) -- (0.36) $10.61 4.34%
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.52) -- (0.52) $11.15 7.04%
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) -- -- (0.16) $11.12 (3.15%)*
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) -- -- (0.14) $11.12 (3.36%)*
---------- -------- ------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.41) -- -- (0.41) $11.05 6.07%
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND ADVISOR SHARES
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%
Year ended 7/31/04 (0.47) -- -- (0.47) $11.12 6.55%
---------- -------- ------- ------------- ------ ---------
SELECT STOCK FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 -- -- -- -- $19.10 5.12%
---------- -------- ------- ------------- ------ ---------
SELECT STOCK FUND CLASS A SHARES
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%
Year ended 7/31/04 -- -- -- -- $18.82 4.91%
---------- -------- ------- ------------- ------ ---------
SELECT STOCK 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%)
Year ended 7/31/04 -- -- -- -- $18.51 4.16%
---------- -------- ------- ------------- ------ ---------
SELECT STOCK FUND CLASS C SHARES
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%)
Year ended 7/31/04 -- -- -- -- $18.01 4.10%
---------- -------- ------- ------------- ------ ---------
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 CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $16,014 0.08%** 2.90%** 0.75%** 63%
Year ended 7/31/04 $14,201 0.08% 2.79% 0.58% 27%
------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 9,387 0.33%** 2.52%** 1.17%** 63%
Year ended 7/31/04 $20,461 0.33% 2.59% 0.84% 27%
------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 8,795 1.08%** 1.75%** 1.86%** 63%
Year ended 7/31/04 $13,524 1.08% 1.80% 1.58% 27%
------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 2,203 1.08%** 1.63%** 1.86%** 63%
Year ended 7/31/04 $ 6,563 1.08% 1.81% 1.58% 27%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $90,995 1.33% 4.64% 1.33% 36%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 $ 954 1.63%** 5.02%** 1.63%** 36%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 $ 389 2.37%** 4.27%** 2.37%** 36%
------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $39,298 2.33% 3.62% 2.33% 36%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND ADVISOR SHARES
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%
Year ended 7/31/04 $39,982 1.83% 4.12% 1.83% 36%
------- --------- ------------- ---------- ---------
SELECT STOCK FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 7,166 1.43% (0.68%) 1.74% 81%
------- --------- ------------- ---------- ---------
SELECT STOCK FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 9,391 1.68% (0.98%) 2.00% 81%
------- --------- ------------- ---------- ---------
SELECT STOCK 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%
Year ended 7/31/04 $ 441 2.43% (1.74%) 2.74% 81%
------- --------- ------------- ---------- ---------
SELECT STOCK FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 580 2.43% (1.71%) 2.75% 81%
------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
170-171 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------- -------------- ----------
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)+ 3.26 3.17
Year ended 7/31/04 $ 8.72 (0.11)+ (0.15) (0.26)
--------- ------------- -------------- ----------
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)+ 3.25 3.14
Year ended 7/31/04 $ 8.66 (0.13)+ (0.15) (0.28)
--------- ------------- -------------- ----------
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)+ 3.18 3.03
Year ended 7/31/04 $ 8.47 (0.20)+ (0.13) (0.33)
--------- ------------- -------------- ----------
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)+ 3.17 3.01
Year ended 7/31/04 $ 8.44 (0.21)+ (0.12) (0.33)
--------- ------------- -------------- ----------
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)+ 3.23 3.10
Year ended 7/31/04 $ 8.61 (0.16)+ (0.14) (0.30)
--------- ------------- -------------- ----------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 7.79 0.06+ 1.61 1.67
--------- ------------- -------------- ----------
INTERNATIONAL EQUITY CLASS A SHARES
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
Year ended 7/31/04 $ 7.81 0.05+ 1.59 1.64
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 7.71 (0.02)+ 1.59 1.57
--------- ------------- -------------- ----------
INTERNATIONAL EQUITY CLASS C SHARES
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
Year ended 7/31/04 $ 7.50 (0.02)+ 1.54 1.52
--------- ------------- -------------- ----------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 8.67 0.02+ 0.65 0.67
--------- ------------- -------------- ----------
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)
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 -- -- -- $ 8.46 (2.98%)
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 -- -- -- $ 8.38 (3.23%)
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 -- -- -- $ 8.14 (3.90%)
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 -- -- -- $ 8.11 (3.79%)
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 -- -- -- $ 8.31 (3.37%)
---------- -------- ------------- ------ ---------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.14) -- (0.14) $ 9.32 21.56%
---------- -------- ------------- ------ ---------
INTERNATIONAL EQUITY CLASS A SHARES
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%
Year ended 7/31/04 (0.12) -- (0.12) $ 9.33 21.11%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.05) -- (0.05) $ 9.23 20.43%
---------- -------- ------------- ------ ---------
INTERNATIONAL EQUITY CLASS C SHARES
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%
Year ended 7/31/04 (0.03) -- (0.03) $ 8.99 20.32%
---------- -------- ------------- ------ ---------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 (0.03) -- (0.03) $ 9.31 7.70%*
---------- -------- ------------- ------ ---------
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)
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 37,573 1.20% (1.07%) 1.55% 191%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 7,105 1.45% (1.31%) 1.80% 191%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,436 2.20% (2.06%) 2.56% 191%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,757 2.20% (2.07%) 2.55% 191%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 247 1.71% (1.58%) 2.04% 191%
-------- --------- ------------- ---------- ---------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $324,852 1.36% 0.61% 1.42% 50%
-------- --------- ------------- ---------- ---------
INTERNATIONAL EQUITY CLASS A SHARES
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%
Year ended 7/31/04 $ 22,999 1.61% 0.51% 1.67% 50%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 793 2.36% (0.21%) 2.42% 50%
-------- --------- ------------- ---------- ---------
INTERNATIONAL EQUITY CLASS C SHARES
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%
Year ended 7/31/04 $ 555 2.36% (0.22%) 2.42% 50%
-------- --------- ------------- ---------- ---------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 12,360 1.85%** 0.31%** 1.92%** 50%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
172-173 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------- -------------- ----------
BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 9.96 0.28 0.14 0.42
--------- ------------- -------------- ----------
BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 9.95 0.25 0.16 0.41
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 9.95 0.15 0.18 0.33
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 9.96 0.17 0.15 0.32
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 9.96 0.23 0.14 0.37
--------- ------------- -------------- ----------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 10.04 0.31 (0.04) 0.27
--------- ------------- -------------- ----------
INTERMEDIATE BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 10.06 0.29 (0.04) 0.25
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 10.01 0.24 (0.03) 0.21
--------- ------------- -------------- ----------
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
Year ended 7/31/04 $ 10.03 0.20 (0.03) 0.17
--------- ------------- -------------- ----------
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)
---------- -------- ------------- ------ ---------
BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.36) -- (0.36) $10.02 4.26%
---------- -------- ------------- ------ ---------
BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.34) -- (0.34) $10.02 4.00%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.26) -- (0.26) $10.02 3.19%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.26) -- (0.26) $10.02 3.20%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.31) -- (0.31) $10.02 3.73%
---------- -------- ------------- ------ ---------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.38) -- (0.38) $ 9.93 2.71%
---------- -------- ------------- ------ ---------
INTERMEDIATE BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.36) -- (0.36) $ 9.95 2.45%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.32) -- (0.32) $ 9.90 2.06%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.28) -- (0.28) $ 9.92 1.72%
---------- -------- ------------- ------ ---------
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)
-------- --------- ------------- ---------- ---------
BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $277,706 0.79% 2.75% 0.90% 389%
-------- --------- ------------- ---------- ---------
BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 22,559 1.04% 2.51% 1.15% 389%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 4,512 1.79% 1.76% 1.90% 389%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 768 1.79% 1.76% 1.90% 389%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 655 1.29% 2.25% 1.40% 389%
-------- --------- ------------- ---------- ---------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $676,344 0.76% 3.13% 0.81% 189%
-------- --------- ------------- ---------- ---------
INTERMEDIATE BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 37,500 1.01% 2.88% 1.07% 189%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 3,982 1.46% 2.42% 1.81% 189%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,620 1.76% 2.12% 1.81% 189%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
174-175 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
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
--------- ---------- -------------- ----------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 9.75 0.19+ (0.06) 0.13
--------- ---------- -------------- ----------
SHORT TERM BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 9.74 0.18+ (0.07) 0.11
--------- ---------- -------------- ----------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 $ 9.75 0.09+ (0.06) 0.03
--------- ---------- -------------- ----------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 10.29 0.25 --^ 0.25
--------- ---------- -------------- ----------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 10.29 0.20 0.03 0.23
--------- ---------- -------------- ----------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
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
Year ended 7/31/04 $ 10.22 0.15 (0.01) 0.14
--------- ---------- -------------- ----------
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)
---------- -------- ------------- ------ ---------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.31) -- (0.31) $ 9.57 1.31%
---------- -------- ------------- ------ ---------
SHORT TERM BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.29) -- (0.29) $ 9.56 1.12%
---------- -------- ------------- ------ ---------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 (0.22) -- (0.22) $ 9.56 0.39%*
---------- -------- ------------- ------ ---------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.26) (0.16) (0.42) $10.12 2.42%
---------- -------- ------------- ------ ---------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.23) (0.16) (0.39) $10.13 2.26%
---------- -------- ------------- ------ ---------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
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%
Year ended 7/31/04 (0.15) (0.16) (0.31) $10.05 1.41%
---------- -------- ------------- ------ ---------
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)
-------- --------- ------------- ---------- ---------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $495,271 0.74% 1.96% 0.77% 90%
-------- --------- ------------- ---------- ---------
SHORT TERM BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 28,262 0.89% 1.81% 1.02% 90%
-------- --------- ------------- ---------- ---------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 $ 526 1.74%** 0.97%** 1.77%** 90%
-------- --------- ------------- ---------- ---------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $ 43,820 0.76% 2.35% 0.91% 180%
-------- --------- ------------- ---------- ---------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 31,146 1.01% 2.10% 1.16% 180%
-------- --------- ------------- ---------- ---------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 4,255 1.77% 1.34% 1.91% 180%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
176-177 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
---------- ---------- ---------------- ----------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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+ (0.09) 0.34
Year ended 7/31/04 $ 10.49 0.43+ 0.08 0.51
---------- ---------- ---------------- ----------
MUNICIPAL BOND FUND CLASS A SHARES
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+ (0.07) 0.33
Year ended 7/31/04 $ 10.54 0.40+ 0.06 0.46
---------- ---------- ---------------- ----------
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+ (0.07) 0.25
Year ended 7/31/04 $ 10.47 0.32+ 0.07 0.39
---------- ---------- ---------------- ----------
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+ (0.07) 0.25
Year ended 7/31/04 $ 10.48 0.32+ 0.07 0.39
---------- ---------- ---------------- ----------
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+ (0.08) 0.30
Year ended 7/31/04 $ 10.49 0.38+ 0.06 0.44
---------- ---------- ---------------- ----------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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+ (0.09) 0.28
Year ended 7/31/04 $ 10.64 0.37 (0.03) 0.34
---------- ---------- ---------------- ----------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
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+ (0.07) 0.27
Year ended 7/31/04 $ 10.65 0.34 (0.02) 0.32
---------- ---------- ---------------- ----------
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+ (0.08) 0.18
Year ended 7/31/04 $ 10.63 0.30 (0.03) 0.27
---------- ---------- ---------------- ----------
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+ (0.08) 0.18
Year ended 7/31/04 $ 10.63 0.28 (0.04) 0.24
---------- ---------- ---------------- ----------
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 12/31/99 (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%
Year ended 7/31/04 (0.43) (0.17) (0.60) $10.40 4.84%
---------- -------- ------------- ------ ---------
MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.40) (0.17) (0.57) $10.43 4.35%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.32) (0.17) (0.49) $10.37 3.71%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.32) (0.17) (0.49) $10.38 3.71%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.37) (0.17) (0.54) $10.39 4.22%
---------- -------- ------------- ------ ---------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.36) (0.09) (0.45) $10.53 3.27%
---------- -------- ------------- ------ ---------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.34) (0.09) (0.43) $10.54 3.03%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.30) (0.09) (0.39) $10.51 2.54%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.25) (0.09) (0.34) $10.53 2.29%
---------- -------- ------------- ------ ---------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000's) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- --------- ------------- ---------- ---------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $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%
Year ended 7/31/04 $ 57,638 0.79% 4.05% 0.98% 35%
-------- --------- ------------- ---------- ---------
MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 2,462 1.04% 3.81% 1.24% 35%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,528 1.79% 3.06% 1.99% 35%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 363 1.79% 3.05% 1.98% 35%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 433 1.29% 3.56% 1.49% 35%
-------- --------- ------------- ---------- ---------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $255,026 0.73% 3.42% 0.84% 84%
-------- --------- ------------- ---------- ---------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 4,479 0.98% 3.17% 1.09% 84%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,269 1.44% 2.71% 1.84% 84%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 366 1.73% 2.42% 1.83% 84%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
178-179 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
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
--------- ------------ -------------- ----------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 10.39 0.36 0.02 0.38
--------- ------------ -------------- ----------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 10.39 0.33 0.03 0.36
--------- ------------ -------------- ----------
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
Year ended 7/31/04 $ 10.19 0.24 0.03 0.27
--------- ------------ -------------- ----------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
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
Year ended 7/31/04 $ 10.35 0.26 0.02 0.28
--------- ------------ -------------- ----------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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
Year ended 7/31/04 $ 10.31 0.28 (0.13) 0.15
--------- ------------ -------------- ----------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
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
Year ended 7/31/04 $ 10.30 0.27 (0.13) 0.14
--------- ------------ -------------- ----------
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
Year ended 7/31/04 $ 10.30 0.18 (0.13) 0.05
--------- ------------ -------------- ----------
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
Year ended 7/31/04 $ 10.29 0.19 (0.13) 0.06
--------- ------------ -------------- ----------
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
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%
Year ended 7/31/04 (0.35) (0.03) (0.38) $10.39 3.66%
---------- -------- ------------- ------ ---------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.33) (0.03) (0.36) $10.39 3.40%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.25) (0.03) (0.28) $10.18 2.62%
---------- -------- ------------- ------ ---------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
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%
Year ended 7/31/04 (0.25) (0.03) (0.28) $10.35 2.65%
---------- -------- ------------- ------ ---------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 (0.28) (0.01) (0.29) $10.17 1.43%
---------- -------- ------------- ------ ---------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 (0.27) (0.01) (0.28) $10.16 1.37%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.18) (0.01) (0.19) $10.16 0.43%
---------- -------- ------------- ------ ---------
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%
Year ended 7/31/04 (0.18) (0.01) (0.19) $10.16 0.48%
---------- -------- ------------- ------ ---------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000's) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- --------- ------------- ---------- ---------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $126,343 0.78% 3.39% 0.86% 15%
-------- --------- ------------- ---------- ---------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 26,962 1.03% 3.14% 1.11% 15%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 4,714 1.78% 2.39% 1.86% 15%
-------- --------- ------------- ---------- ---------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
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%
Year ended 7/31/04 $ 4,328 1.78% 2.39% 1.86% 15%
-------- --------- ------------- ---------- ---------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/04 $105,361 0.69% 2.75% 0.78% 21%
-------- --------- ------------- ---------- ---------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
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%
Year ended 7/31/04 $ 7,294 0.84% 2.60% 1.03% 21%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,574 1.69% 1.76% 1.78% 21%
-------- --------- ------------- ---------- ---------
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%
Year ended 7/31/04 $ 1,794 1.69% 1.76% 1.78% 21%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
180-181 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
supplemental 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 December 31, 2000 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 December 31, 2000 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 December 31, 2000 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 Class C 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 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 realized and unrealized gains and losses per share by ($0.00)
and increase the ratio of net investment income to average net assets from
4.20% to 4.21% and 3.97% to 3.98%, respectively. Per share, ratios and
supplemental data for periods prior to December 31, 2000 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 December 31, 2000 have
not been restated to reflect this change in presentation.
(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, Class B and Class C Shares was to increase net investment income
per share by $0.00, decrease net realized 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 December 31, 2000 have
not been restated to reflect this change in presentation.
^ Amount is less than $0.005 per share.
* Not annualized.
** Annualized.
# Represents income or gains/(losses) from affiliates.
+ Average shares method used in calculation.
SEE NOTES TO FINANCIAL STATEMENTS
182
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and
Trustees of Fifth Third Funds:
In our opinion, the accompanying statements of assets and liabilities, including
schedules of portfolio investments, and the related statements of operations and
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 Quality Growth Fund, Fifth Third
Large Cap Core Fund, Fifth Third Equity Index Fund, Fifth Third 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 Fund SM, Fifth Third LifeModel Moderately Aggressive Fund
SM, Fifth Third LifeModel Moderate Fund SM, Fifth Third LifeModel Moderately
Conservative Fund SM, Fifth Third LifeModel Conservative Fund SM, Fifth Third
Strategic Income Fund, Fifth Third Select Stock Fund, Fifth Third Technology
Fund, Fifth Third International Equity 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, 2004, the results of
each of their operations for the year then ended, the changes in each of their
net assets for the periods presented and the financial highlights for each of
the periods in the three 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 the
standards of the Public Company Accounting Oversight Board (United States),
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 of securities at July 31, 2004 by correspondence with the custodian
and brokers provide a reasonable basis for our opinion. The financial highlights
of the Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth
Third Balanced Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third
Select Stock Fund, Fifth Third Technology Fund, Fifth Third International Equity
Fund, Fifth Third U.S. Government Bond Fund and Fifth Third Ohio Municipal 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 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 Bond Fund, Fifth
Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third
Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, and Fifth
Third Michigan Municipal 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 financial highlights of Fifth Third Micro Cap Value
Fund, Fifth Third Multi Cap Value Fund and Fifth Third Strategic Income 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 29, 2004
183
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT^
The Trustees and Officers of the Funds, their date of birth, 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 AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(s) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------- -------------- -------------- ----------------------------------- ----------- -----------------------------
David J. Durham Trustee Indefinite, President and Chief 35 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, Vice President and Chief 35 Trustee for Hanover
Birthdate:9/11/1949 March 2001- Communications Officer, College, National Underground
Present Cinergy Corp., September Freedom Center, the
2004-Present. President, Cincinnati Zoo, the Ohio
Cinergy Foundation, Arts Council, the
November 2001-Present. Cincinnati Parks Foundation
President, Cinergy Corp., and Playhouse in the Park.
Cincinnati Gas & Electric Co.,
The Union Light Heat & Power
Co., July 2000-October 2001.
Vice President, Corporate
Communications, August 1996-
June 2000.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 35 Printing
Birthdate:12/5/1944 October 2001- Present. Business Industries of
Present Management Consultant, April America: Web Offset
2000-February 2002. President, Assoc., Director; Master
Metroweb Corp. (publications Printers of America,
printing) 1997-2000. Director.
David J. Gruber Trustee Indefinite, Ohio Arts & Sports Facilities 35 None
Birthdate:8/19/1963 December 2003- Commission (state funding oversight
Present agency), CFO, April
2003-Present. Ohio
Expositions Commission
(state fair and expo
center), Finance
Director, April
1996-2003.
INTERESTED TRUSTEE
------------------
Edward Burke Carey* Chairman-Board Indefinite, President of Carey Realty 35 The Foundation of the
Birthdate:7/2/1945 of Trustees January 1989- Investments, Inc. Catholic Diocese of
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.
184
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
OFFICERS
--------
NAME AND POSITION(s) HELD TERM OF OFFICE AND PRINCIPAL OCCUPATION(s)
DATE OF BIRTH 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 2003- Services Limited Partnership
Present since December 1987.
Russell D. Ungerman Vice President Indefinite, Trust Officer of Fifth Third Bank,
Birthdate:2/9/1971 September 2002- 1998-Present; Trust Officer of
Present Wilmington Trust Co., 1994-1998.
Rodney L. Ruehle Vice President Indefinite, Employee of BISYS Fund
Birthdate:4/26/1968 and Secretary September 2001- Services Limited Partnership
Present since August 1995.
Adam S. Ness Treasurer Indefinite, Employee of BISYS Fund
Birthdate:10/14/1972 September 2001- Services Limited Partnership
Present since June 1998.
Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund
Birthdate:2/13/1962 and Assistant Treasurer September 2001- Services Limited Partnership
Present since May 1995.
185
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
ADDITIONAL TAX INFORMATION
For the taxable year ended July 31, 2004, the following percentage of income
dividends paid by the Fund qualify for the dividends received deduction
available to corporations:
PERCENTAGE
----------
Large Cap Core Fund 68%
Equity Index Fund 100%
Balanced Fund 84%
Micro Cap Value Fund 21%
Small Cap Value Fund 9%
Multi Cap Value Fund 100%
Disciplined Large Cap Value Fund 89%
LifeModel Aggressive Fund SM 28%
LifeModel Moderately Aggressive Fund SM 20%
LifeModel Moderate Fund SM 12%
LifeModel Moderately Conservative Fund SM 8%
LifeModel Conservative Fund SM 4%
Strategic Income Fund 95%
For the period ended July 31, 2004, certain dividends paid by the Funds are
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 2004 Form 1099-DIV.
For the period ended July 31, 2004, the following Funds paid qualified dividend
income of (Amounts in thousands):
AMOUNT
----------
Large Cap Core Fund $ 1,269
Equity Index Fund 8,131
Balanced Fund 2,177
Micro Cap Value Fund 2,044
Small Cap Value Fund 655
Multi Cap Value Fund 508
Disciplined Large Cap Value Fund 11,293
LifeModel Aggressive FundSM 523
LifeModel Moderately Aggressive Fund SM 972
LifeModel Moderate Fund SM 866
LifeModel Moderately Conservative Fund SM 334
LifeModel Conservative Fund SM 91
Strategic Income Fund 6,859
International Equity Fund 4,940
The International Equity 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, 2004 are as follows:
FOREIGN FOREIGN
SOURCE TAX
INCOME EXPENSE
---------- ----------
International Equity Fund $ 0.19 $ 0.02
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 2004. These
shareholders will receive more detailed information along with their 2004 Form
1099-DIV.
186
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; distribution [and/or service] 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fifth Third Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from February 1, 2004 through July 31,
2004.
EXPENSES
- --------
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
---------- --------- ---------------- -----------------
Small Cap Growth Fund Institutional Shares $ 1,000.00 $ 882.10 $ 4.73 1.01%
Class A Shares 1,000.00 881.60 5.89 1.26%
Class B Shares 1,000.00 877.80 9.38 2.01%
Class C Shares 1,000.00 877.90 9.38 2.01%
Advisor Shares 1,000.00 880.00 7.06 1.51%
Mid Cap Growth Fund Institutional Shares 1,000.00 934.40 5.24 1.09%
Class A Shares 1,000.00 933.20 6.44 1.34%
Class B Shares 1,000.00 930.10 9.98 2.08%
Class C Shares 1,000.00 929.90 9.98 2.08%
Advisor Shares 1,000.00 932.20 7.59 1.58%
Quality Growth Fund Institutional Shares 1,000.00 896.30 5.04 1.07%
Class A Shares 1,000.00 895.40 6.22 1.32%
Class B Shares 1,000.00 892.20 9.74 2.07%
Class C Shares 1,000.00 892.60 9.74 2.07%
Advisor Shares 1,000.00 894.80 7.40 1.57%
Large Cap Core Fund Institutional Shares 1,000.00 980.30 4.53 0.92%
Class A Shares 1,000.00 979.50 5.76 1.17%
Class B Shares 1,000.00 976.10 9.38 1.91%
Class C Shares 1,000.00 975.40 9.38 1.91%
Equity Index Fund Institutional Shares 1,000.00 981.00 0.89 0.18%
Class A Shares 1,000.00 979.70 2.17 0.44%
Class B Shares 1,000.00 976.10 5.85 1.19%
Class C Shares 1,000.00 976.40 5.85 1.19%
Advisor Shares 1,000.00 978.40 3.39 0.69%
Select Shares 1,000.00 980.60 1.33 0.27%
Preferred Shares 1,000.00 980.30 1.67 0.34%
Trust Shares 1,000.00 979.80 2.17 0.44%
Balanced Fund Institutional Shares 1,000.00 979.50 5.61 1.14%
Class A Shares 1,000.00 978.10 6.84 1.39%
Class B Shares 1,000.00 975.00 10.51 2.14%
Class C Shares 1,000.00 974.80 10.51 2.14%
Advisor Shares 1,000.00 977.60 8.06 1.64%
Micro Cap Value Fund Institutional Shares 1,000.00 1,007.80 6.69 1.34%
Class A Shares 1,000.00 1,006.00 7.93 1.59%
Class B Shares 1,000.00 1,006.10 7.93 1.59%
Class C Shares 1,000.00 1,006.10 7.93 1.59%
Advisor Shares 1,000.00 1,006.00 7.93 1.59%
______________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
187
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
---------- --------- ---------------- -----------------
Small Cap Value Fund Institutional Shares $ 1,000.00 $ 991.60 $ 6.14 1.24%
Class A Shares 1,000.00 990.10 7.37 1.49%
Class B Shares 1,000.00 987.00 11.07 2.24%
Class C Shares 1,000.00 987.00 11.07 2.24%
Advisor Shares 1,000.00 989.10 8.61 1.74%
Multi Cap Value Fund Institutional Shares 1,000.00 964.30 6.35 1.30%
Class A Shares 1,000.00 962.90 7.56 1.55%
Class B Shares 1,000.00 959.30 11.20 2.30%
Class C Shares 1,000.00 959.70 11.21 2.30%
Advisor Shares 1,000.00 962.00 8.78 1.80%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,017.70 5.32 1.06%
Class A Shares 1,000.00 1,017.30 6.57 1.31%
Class B Shares 1,000.00 1,013.10 10.31 2.06%
Class C Shares 1,000.00 1,013.40 10.31 2.06%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 958.20 0.39 0.08%
Class A Shares 1,000.00 956.70 1.61 0.33%
Class B Shares 1,000.00 953.50 5.25 1.08%
Class C Shares 1,000.00 952.70 5.24 1.08%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 966.10 0.39 0.08%
Class A Shares 1,000.00 964.90 1.61 0.33%
Class B Shares 1,000.00 961.70 5.27 1.08%
Class C Shares 1,000.00 961.80 5.27 1.08%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 978.00 0.39 0.08%
Class A Shares 1,000.00 976.80 1.62 0.33%
Class B Shares 1,000.00 973.10 5.30 1.08%
Class C Shares 1,000.00 973.10 5.30 1.08%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 979.20 0.39 0.08%
Class A Shares 1,000.00 977.10 1.62 0.33%
Class B Shares 1,000.00 974.40 5.30 1.08%
Class C Shares 1,000.00 973.70 5.30 1.08%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 986.50 0.40 0.08%
Class A Shares 1,000.00 985.30 1.63 0.33%
Class B Shares 1,000.00 980.80 5.32 1.08%
Class C Shares 1,000.00 981.00 5.32 1.08%
Strategic Income Fund Institutional Shares 1,000.00 993.30 6.64 1.34%
Class A Shares^ 1,000.00 968.50 7.88 1.61%
Class B Shares^ 1,000.00 966.40 11.49 2.35%
Class C Shares 1,000.00 989.10 11.52 2.33%
Advisor Shares 1,000.00 991.60 9.06 1.83%
Select Stock Fund Institutional Shares 1,000.00 912.60 6.90 1.45%
Class A Shares 1,000.00 911.80 8.08 1.70%
Class B Shares 1,000.00 908.20 11.58 2.44%
Class C Shares 1,000.00 908.20 11.58 2.44%
Technology Fund Institutional Shares 1,000.00 710.30 5.10 1.20%
Class A Shares 1,000.00 710.20 6.17 1.45%
Class B Shares 1,000.00 707.80 9.34 2.20%
Class C Shares 1,000.00 707.90 9.34 2.20%
Advisor Shares 1,000.00 709.30 7.22 1.70%
International Equity Fund Institutional Shares 1,000.00 984.20 6.66 1.35%
Class A Shares 1,000.00 982.10 7.89 1.60%
Class B Shares 1,000.00 978.80 11.56 2.35%
Class C Shares 1,000.00 979.30 11.56 2.35%
Advisor Shares 1,000.00 982.10 9.12 1.85%
__________________________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
^ Information shown reflects values using expense ratios and rates of return
for the period from April 1, 2004 (date of commencement of operations) to
July 31, 2004.
188
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04$
---------- --------- ---------------- -----------------
Bond Fund Institutional Shares $ 1,000.00 $ 999.00 $ 3.93 0.79%
Class A Shares 1,000.00 997.70 5.17 1.04%
Class B Shares 1,000.00 993.90 8.87 1.79%
Class C Shares 1,000.00 994.00 8.87 1.79%
Advisor Shares 1,000.00 996.60 6.40 1.29%
Intermediate Bond Fund Institutional Shares 1,000.00 995.90 3.77 0.76%
Class A Shares 1,000.00 994.80 5.01 1.01%
Class B Shares 1,000.00 994.60 5.50 1.11%
Class C Shares 1,000.00 991.20 8.71 1.76%
Short Term Bond Fund Institutional Shares 1,000.00 999.10 3.68 0.74%
Class A Shares 1,000.00 998.00 4.42 0.89%
Class C Shares 1,000.00 994.50 8.63 1.74%
U.S. Government Bond Fund Institutional Shares 1,000.00 998.90 3.78 0.76%
Class A Shares 1,000.00 997.60 5.02 1.01%
Class C Shares 1,000.00 993.90 8.73 1.76%
Municipal Bond Fund Institutional Shares 1,000.00 994.50 3.92 0.79%
Class A Shares 1,000.00 992.20 5.15 1.04%
Class B Shares 1,000.00 989.60 8.85 1.79%
Class C Shares 1,000.00 989.50 8.85 1.79%
Advisor Shares 1,000.00 991.10 6.39 1.29%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 994.40 3.62 0.73%
Class A Shares 1,000.00 994.20 4.86 0.98%
Class B Shares 1,000.00 992.40 5.70 1.15%
Class C Shares 1,000.00 990.50 8.56 1.73%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 994.70 3.92 0.79%
Class A Shares 1,000.00 993.60 5.16 1.04%
Class B Shares 1,000.00 989.90 8.86 1.79%
Class C Shares 1,000.00 989.90 8.86 1.79%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 995.90 3.42 0.69%
Class A Shares 1,000.00 995.20 4.17 0.84%
Class B Shares 1,000.00 991.10 8.37 1.69%
Class C Shares 1,000.00 991.70 8.37 1.69%
___________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
189
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. However, you may use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
---------- --------- ---------------- -----------------
Small Cap Growth Fund Institutional Shares $ 1,000.00 $1,019.84 $ 5.07 1.01%
Class A Shares 1,000.00 1,018.60 6.32 1.26%
Class B Shares 1,000.00 1,014.87 10.07 2.01%
Class C Shares 1,000.00 1,014.87 10.07 2.01%
Advisor Shares 1,000.00 1,017.35 7.57 1.51%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.44 5.47 1.09%
Class A Shares 1,000.00 1,018.20 6.72 1.34%
Class B Shares 1,000.00 1,014.52 10.42 2.08%
Class C Shares 1,000.00 1,014.52 10.42 2.08%
Advisor Shares 1,000.00 1,017.01 7.92 1.58%
Quality Growth Fund Institutional Shares 1,000.00 1,019.54 5.37 1.07%
Class A Shares 1,000.00 1,018.30 6.62 1.32%
Class B Shares 1,000.00 1,014.57 10.37 2.07%
Class C Shares 1,000.00 1,014.57 10.37 2.07%
Advisor Shares 1,000.00 1,017.06 7.87 1.57%
Large Cap Core Fund Institutional Shares 1,000.00 1,020.29 4.62 0.92%
Class A Shares 1,000.00 1,019.05 5.87 1.17%
Class B Shares 1,000.00 1,015.37 9.57 1.91%
Class C Shares 1,000.00 1,015.37 9.57 1.91%
Equity Index Fund Institutional Shares 1,000.00 1,023.97 0.91 0.18%
Class A Shares 1,000.00 1,022.68 2.21 0.44%
Class B Shares 1,000.00 1,018.95 5.97 1.19%
Class C Shares 1,000.00 1,018.95 5.97 1.19%
Advisor Shares 1,000.00 1,021.43 3.47 0.69%
Select Shares 1,000.00 1,023.52 1.36 0.27%
Preferred Shares 1,000.00 1,023.17 1.71 0.34%
Trust Shares 1,000.00 1,022.68 2.21 0.44%
Balanced Fund Institutional Shares 1,000.00 1,019.19 5.72 1.14%
Class A Shares 1,000.00 1,017.95 6.97 1.39%
Class B Shares 1,000.00 1,014.22 10.72 2.14%
Class C Shares 1,000.00 1,014.22 10.72 2.14%
Advisor Shares 1,000.00 1,016.71 8.22 1.64%
Micro Cap Value Fund Institutional Shares 1,000.00 1,018.20 6.72 1.34%
Class A Shares 1,000.00 1,016.96 7.97 1.59%
Class B Shares 1,000.00 1,016.96 7.97 1.59%
Class C Shares 1,000.00 1,016.96 7.97 1.59%
Advisor Shares 1,000.00 1,016.96 7.97 1.59%
______________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
190
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
---------- --------- ---------------- -----------------
Small Cap Value Fund Institutional Shares $ 1,000.00 $1,018.70 $ 6.22 1.24%
Class A Shares 1,000.00 1,017.45 7.47 1.49%
Class B Shares 1,000.00 1,013.72 11.22 2.24%
Class C Shares 1,000.00 1,013.72 11.22 2.24%
Advisor Shares 1,000.00 1,016.21 8.72 1.74%
Multi Cap Value Fund Institutional Shares 1,000.00 1,018.40 6.52 1.30%
Class A Shares 1,000.00 1,017.16 7.77 1.55%
Class B Shares 1,000.00 1,013.43 11.51 2.30%
Class C Shares 1,000.00 1,013.43 11.51 2.30%
Advisor Shares 1,000.00 1,015.91 9.02 1.80%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.59 5.32 1.06%
Class A Shares 1,000.00 1,018.35 6.57 1.31%
Class B Shares 1,000.00 1,014.62 10.32 2.06%
Class C Shares 1,000.00 1,014.62 10.32 2.06%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,024.47 0.40 0.08%
Class A Shares 1,000.00 1,023.22 1.66 0.33%
Class B Shares 1,000.00 1,019.49 5.42 1.08%
Class C Shares 1,000.00 1,019.49 5.42 1.08%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,024.47 0.40 0.08%
Class A Shares 1,000.00 1,023.22 1.66 0.33%
Class B Shares 1,000.00 1,019.49 5.42 1.08%
Class C Shares 1,000.00 1,019.49 5.42 1.08%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,024.47 0.40 0.08%
Class A Shares 1,000.00 1,023.22 1.66 0.33%
Class B Shares 1,000.00 1,019.49 5.42 1.08%
Class C Shares 1,000.00 1,019.49 5.42 1.08%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,024.47 0.40 0.08%
Class A Shares 1,000.00 1,023.22 1.66 0.33%
Class B Shares 1,000.00 1,019.49 5.42 1.08%
Class C Shares 1,000.00 1,019.49 5.42 1.08%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,024.47 0.40 0.08%
Class A Shares 1,000.00 1,023.22 1.66 0.33%
Class B Shares 1,000.00 1,019.49 5.42 1.08%
Class C Shares 1,000.00 1,019.49 5.42 1.08%
Strategic Income Fund Institutional Shares 1,000.00 1,018.20 6.72 1.34%
Class A Shares^ 1,000.00 1,016.86 8.07 1.61%
Class B Shares^ 1,000.00 1,013.18 11.76 2.35%
Class C Shares 1,000.00 1,013.28 11.66 2.33%
Advisor Shares 1,000.00 1,015.76 9.17 1.83%
Select Stock Fund Institutional Shares 1,000.00 1,017.65 7.27 1.45%
Class A Shares 1,000.00 1,016.41 8.52 1.70%
Class B Shares 1,000.00 1,012.73 12.21 2.44%
Class C Shares 1,000.00 1,012.73 12.21 2.44%
Technology Fund Institutional Shares 1,000.00 1,018.90 6.02 1.20%
Class A Shares 1,000.00 1,017.65 7.27 1.45%
Class B Shares 1,000.00 1,013.92 11.02 2.20%
Class C Shares 1,000.00 1,013.92 11.02 2.20%
Advisor Shares 1,000.00 1,016.41 8.52 1.70%
International Equity Fund Institutional Shares 1,000.00 1,018.15 6.77 1.35%
Class A Shares 1,000.00 1,016.91 8.02 1.60%
Class B Shares 1,000.00 1,013.18 11.76 2.35%
Class C Shares 1,000.00 1,013.18 11.76 2.35%
Advisor Shares 1,000.00 1,015.66 9.27 1.85%
__________________________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
^ Information shown reflects values using expense ratios for the period from
April 1, 2004 (date of commencement of operations) to July 31, 2004.
191
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/04 7/31/04 2/1/04 - 7/31/04 2/1/04 - 7/31/04
---------- --------- ---------------- -----------------
Bond Fund Institutional Shares $ 1,000.00 $1,020.93 $ 3.97 0.79%
Class A Shares 1,000.00 1,019.69 5.22 1.04%
Class B Shares 1,000.00 1,015.96 8.97 1.79%
Class C Shares 1,000.00 1,015.96 8.97 1.79%
Advisor Shares 1,000.00 1,018.45 6.47 1.29%
Intermediate Bond Fund Institutional Shares 1,000.00 1,021.08 3.82 0.76%
Class A Shares 1,000.00 1,019.84 5.07 1.01%
Class B Shares 1,000.00 1,019.34 5.57 1.11%
Class C Shares 1,000.00 1,016.11 8.82 1.76%
Short Term Bond Fund Institutional Shares 1,000.00 1,021.18 3.72 0.74%
Class A Shares 1,000.00 1,020.44 4.47 0.89%
Class C Shares 1,000.00 1,016.21 8.72 1.74%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,021.08 3.82 0.76%
Class A Shares 1,000.00 1,019.84 5.07 1.01%
Class C Shares 1,000.00 1,016.11 8.82 1.76%
Municipal Bond Fund Institutional Shares 1,000.00 1,020.93 3.97 0.79%
Class A Shares 1,000.00 1,019.69 5.22 1.04%
Class B Shares 1,000.00 1,015.96 8.97 1.79%
Class C Shares 1,000.00 1,015.96 8.97 1.79%
Advisor Shares 1,000.00 1,018.45 6.47 1.29%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.23 3.67 0.73%
Class A Shares 1,000.00 1,019.99 4.92 0.98%
Class B Shares 1,000.00 1,019.14 5.77 1.15%
Class C Shares 1,000.00 1,016.26 8.67 1.73%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,020.93 3.97 0.79%
Class A Shares 1,000.00 1,019.69 5.22 1.04%
Class B Shares 1,000.00 1,015.96 8.97 1.79%
Class C Shares 1,000.00 1,015.96 8.97 1.79%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.43 3.47 0.69%
Class A Shares 1,000.00 1,020.69 4.22 0.84%
Class B Shares 1,000.00 1,016.46 8.47 1.69%
Class C Shares 1,000.00 1,016.46 8.47 1.69%
__________________________
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
192
ADDRESSES
- -------------------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Stock and Bond Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- -------------------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------------------
Registered Independent Accountants PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- -------------------------------------------------------------------------------------------
[LOGO] FIFTH THIRD FUNDS
9/04 AR-STBD-04
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.
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. THIS CODE OF ETHICS IS INCLUDED AS EXHIBIT 11 (A)(1).
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its 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, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 11(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the 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, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S
CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY
WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE
OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (B) OF THIS ITEM 2.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving on
its audit committee; or
(ii) Does not have an audit committee financial expert serving on
its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS DAVID J. GRUBER, WHO
IS "INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
AUDIT FEES
2003 - $295,250
2004 - $290,600
(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.
AUDIT-RELATED FEES
2003 - $2,562
2004 - $0
SERVICES RENDERED IN CONNECTION WITH THE REVIEW OF DOCUMENTS RELATING
TO POST-EFFECTIVE AMENDMENT NO. 47 FILED ON FEBRUARY 7, 2003. REVIEW AND CONSENT
ON REGISTRATION STATEMENT AND PROSPECTUSES AND OTHER MATTERS RELATING TO THOSE
FILINGS.
(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.
TAX FEES
2003 - $93,625
2004 - $109,400
TAX FEES INCLUDE FEES FOR TAX RETURNS, EXCISE DISTRIBUTION
CALCULATIONS, QUARTERLY COMPLIANCE REVIEWS AND VARIOUS TAX RELATED YEAR-END
CALCULATIONS.
(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.
ALL OTHER FEES
2003 - $0
2004 - $0
(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.
Audit and Non-Audit Services Pre-Approval Policies and Procedures
I. Purpose
Under the Sarbanes-Oxley Act of 2002 (the "Act"), the Audit Committee
(the "Committee") of the Board of Trustees of Fifth Third Funds (the "Trust") is
responsible for the appointment, compensation and oversight of the work of the
Trust's independent auditor. As part of this responsibility, the Committee is
required to grant approval for audit and non-audit services performed by the
independent auditor for the Trust in order assure that they do not impair the
auditor's independence from the Trust. To implement these provisions of the Act,
the Securities and Exchange Commission (the "SEC") has issued rules specifying
the types of services that the Trust's independent auditor may not provide to
the Trust, as well as the Committee's administration of the engagement of the
independent auditor. Under these rules, the SEC has provided that a permissible
approval of audit and non-audit services can take the form of either (i) an
express approval of a particular engagement, or (ii) a pre-approval (where a
specific type of service is authorized, generally subject to a fee maximum). The
latter type of approvals are authorized by SEC rules only subject to detailed
policies and procedures. Accordingly, the Committee has adopted these Audit and
Non-Audit Services Pre-Approval Policies and Procedures, which set forth the
procedures and the conditions pursuant to which services for the Trust may be
performed by the independent auditor under pre-approvals.
II. General Pre-Approval Policies
It is the policy of the Committee that audit and non-audit services to
be performed by the Trust's independent auditor be pre-approved only when in the
best interests of the Trust's shareholders and fully consistent with applicable
law and, particularly, the maintenance of the auditor's independence. In
granting any pre-approval, consideration shall be given to:
1. the qualifications of the auditor to perform the services involved;
2. the proposed costs (which may be presented as an estimate or based on
professional time charges subject to a ceiling) of the services and
the reasonableness thereof;
3. the permissibility of the services under applicable rules and guidance
of the SEC;
4. the effect, if any, of the performance of the proposed services on the
auditor's independence;
5. the effect of the compensation for the proposed services on the
auditor's independence; and
6. the effect, if any, of the proposed services on the Trust's ability to
manage or control risk or to improve audit quality.
While non-audit services may include reviewing and/or validating
procedures or work products of the Trust, they may not include the production or
modification of such procedures or work products. While non-audit services may
include market research and strategic insights, such services shall be limited
to factual reports and shall not include recommendations. No pre-approval shall
be made in a manner that would constitute a delegation to the Trust's
management.
III. Procedures for Pre-Approval by the Committee
1. Requests for pre-approval shall be in writing and may be made by either the
independent auditors or by management of the Trust.
2. All requests for pre-approval shall be made to the full Committee at
regularly scheduled meetings thereof (or at a special meeting of the
Committee set to coincide with regular meetings of the Trust's Board of
Trustees) whenever practicable.
3. Under normal circumstances, requests for pre-approval should be presented
at least 14 days prior (and in no event later than 48 hours prior) to the
proposed commencement of the engagement.
4. If consideration of a request for pre-approval on the dates identified in
Section III (2) would not be timely, the requesting party shall notify the
Trust's Chairman. The Trust's Chairman shall then determine whether to
schedule a special meeting of the Committee (which may be conducted
telephonically) on an alternative date or whether the request may
appropriately be presented to a delegate of the Committee under procedures
set forth in Section IV below.
5. Requests for pre-approval may include, but are not limited to, the
following services:
a. audit engagement, particularly for interim periods;
b. preparation of fund tax returns;
c. review and consents with respect to use of reports in post-effective
amendments to the registration statements of the Trust;
d. review of IRS shareholder materials;
e. review and validation of fund procedures (e.g., valuation, interfund
lending, etc.), and
f. market research and strategic insights.
6. Requests for pre-approval should identify the nature of the services to be
provided in a manner sufficiently specific to allow evaluation of the
considerations identified above in Section II.
7. Requests for pre-approval must include an assessment by the independent
auditor of their independence should the request be granted and the
proposed services rendered.
8. The Committee's action on a request for pre-approval shall be recorded in
the Committee's minutes.
9. The Committee's action on a request for pre-approval shall be communicated
in writing to the independent auditor and, under normal circumstances, a
copy of this communication shall be provided to the Trust's management.
10. The Committee's action on a request for pre-approval shall be reported to
the full Board of Trustees.
11. Pre-approvals will be granted for a period of no more than one year.
IV. Procedures for Pre-Approval by a Delegate of the Committee
1. Where it has been determined by the Trust's Chairman that consideration of
a request for pre-approval by the full Committee would not be timely, the
Chairman may determine that the request be presented to a member(s) of the
Committee appointed by the Committee as its delegate (the "Delegate") for
this purpose. (As of the date of the
adoption of these guidelines and procedures, John E. Jaymont has been so
appointed, and such appointment may be revoked or modified by the Committee
at any time.)
2. Requests for pre-approval shall be in writing and may be made by either the
independent auditors or by management of the Trust.
3. Under normal circumstances, requests for pre-approval should be presented
at least 14 days prior (and in no event later than 48 hours prior) to the
proposed commencement of the engagement.
4. Requests for pre-approval may include, but are not limited to, the
following services:
a. audit engagement, particularly for interim periods;
b. preparation of fund tax returns;
c. review and consents with respect to use of reports in post-effective
amendments to the registration statements of the Trust;
d. review of IRS shareholder materials;
e. review and validation of fund procedures (e.g., valuation, interfund
lending, etc.); and
f. market research and strategic insights.
5. Requests for pre-approval should identify the nature of the services to be
provided in a manner sufficiently specific to allow evaluation of the
considerations identified above in Section II.
6. Requests for pre-approval must include an assessment by the independent
auditor of their independence should the request be granted and the
proposed services rendered.
7. The Delegate's action on a request for pre-approval shall be communicated
in writing to the independent auditor, with a copy to each other member of
the Committee and, under normal circumstances, to the Trust's management.
8. Pre-approvals by the Delegate shall be reviewed by the Committee at a
meeting held no later than the next scheduled meeting of the Board of
Trustees or the Committee, whichever occurs sooner. An earlier review shall
be conducted upon the written request of one or more Committee members
addressed to the Chairman of the Trust.
9. Pre-approvals by the Delegate may be modified or revoked by the Committee,
but will not absolve the Trust of its responsibility to compensate the
independent auditor for services rendered prior to such modification or
revocation.
10. The results of the Committee's review of the Delegate's action on a request
for pre-approval shall be recorded in the Committee's minutes and reported
to the full Board of Trustees.
11. Pre-approvals will be granted by the Delegate for a period of no more than
one year.
V. Procedures for Monitoring Engagements Authorized
Under Pre-Approval Procedures
The independent auditor shall inform the Committee in writing upon the
commencement of services rendered under a pre-approval. The independent auditor
shall thereafter provide the Committee with written quarterly progress reports
within one month of the close of each calendar quarter detailing the work done
and fees and other charges incurred during said calendar quarter. Should fees
and expenses exceed those specified in a pre-approval (or appear likely to do so
prior to completion of the work), the independent auditor or management shall so
apprise the Committee and an additional express approval or pre-approval must be
obtained.
VI. Amendment
These Policies and Procedures may be amended or revoked at any time by
the Committee and shall be reviewed at least annually in conjunction with review
of the Audit Committee Charter.
(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.
2003 - NONE
2004 - NONE
(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.
NOT APPLICABLE.
(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.
2003 - $93,625
2004 - $109,400
(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.
The audit committee has considered that the provision of non-audit 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.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of
the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has
such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C.
78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17CFR 240.10A-3(d)) regarding an
exemption from the listing standards for all audit committees.
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in ss. 210.12-12 of Regulation S-X,
unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
NOT APPLICABLE.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
As of July 31, 2004, the registrant did not have such procedures in place. The
Board of Trustees approved the following procedures at a meeting held on
September 29, 2004:
Procedures for Shareholders to Submit Nominee Candidates
A shareholder of a series of the Trust must follow the following procedures in
order to submit properly a nominee recommendation for the Committee's
consideration.
1. The shareholder must submit any such recommendation (a "Shareholder
Recommendation") in writing to the Trust, to the attention of the
Secretary, at the address of the principal executive offices of the
Trust. Once each quarter, if any Shareholder Recommendations have been
received by the Secretary during the quarter, the Secretary will
inform the Committee of the new Shareholder Recommendations. Because
the Trust does not hold annual or other regular meetings of
shareholders for the purpose of electing Trustees, the Committee will
accept Shareholder Recommendations on a continuous basis.
2. All Shareholder Recommendations properly submitted to the Trust will
be held by the Secretary until such time as the Committee instructs
the Secretary to discard a Shareholder Recommendation following a
Trustee Consideration Meeting or an Interim Evaluation (each as
defined below).
3. At a meeting where the Committee convenes to consider candidates to
fill Board vacancies or newly created Board positions (a "Trustee
Consideration Meeting"), the Committee will consider each Shareholder
Recommendation then held by the Secretary. Following a Trustee
Consideration Meeting, the Committee may instruct the Secretary to
discard any or all of the Shareholder Recommendations currently held
by the Secretary.
4. The Committee may, in its discretion and at any time, convene to
conduct an evaluation of validly submitted Shareholder Recommendations
(each such meeting, an "Interim Evaluation") for the purpose of
determining which Shareholder Recommendations will be considered at
the next Trustee Consideration Meeting. Following an Interim
Evaluation, the Committee may instruct the Secretary to discard any or
all of the Shareholder Recommendations currently held by the
Secretary.
5. The Shareholder Recommendation must include: (i) a statement in
writing setting forth (A) the name, age, date of birth, business
address, residence address and nationality of the person recommended
by the shareholder (the "candidate"); (B) the number of shares of each
series (and class, if appropriate) of the Trust owned of record or
beneficially by the candidate, as reported to such shareholder by the
candidate; (C) any other information regarding the candidate requested
by the Committee based on applicable Federal disclosure requirements;
and (D) whether the recommending shareholder believes that the
candidate is or will be an "interested person" of the Trust (as
defined in the Investment Company Act of 1940, as amended) and, if not
an "interested person," information regarding the candidate that will
be sufficient for the Trust to make such determination; (ii) the
written and signed consent of the candidate to be named as a nominee
and to serve as a Trustee if elected; (iii) the recommending
shareholder's name as it appears on the Trust's books; (iv) the number
of shares of each series (and class, if applicable) of the Trust owned
beneficially and of record by the recommending shareholder; and (v) a
description of all arrangements or understandings between the
recommending shareholder and the candidate and any other person or
persons (including their names) pursuant to which the recommendation
is being made by the recommending shareholder. In addition, the
Committee may require the candidate to furnish such other information
as it may reasonably require or deem necessary to determine the
eligibility of such candidate to serve on the Board or to satisfy
applicable law.
ITEM 10. 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)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS (I) ACCUMULATED AND COMMUNICATED TO
THE INVESTMENT COMPANY'S MANAGEMENT, INCLUDING ITS CERTIFYING OFFICERS, TO ALLOW
TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND (II) 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 11. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject
of the disclosure required by Item 2, to the extent that the registrant intends
to satisfy the Item 2 requirements through filing of an exhibit.
THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS
ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2).
CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under
Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period
covered by the report by or on behalf of the registrant to 10 or more persons.
NOT APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the
Exchange Act, provide the certifications required by rule 30a-2(b) under the Act
as an exhibit. A certification furnished pursuant to this paragraph will not be
deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise
subject to the liability of that section. Such certification will not be deemed
to be incorporated by reference into any filing under the Securities Act of 1933
or the Exchange Act, except to the extent that the registrant incorporates it by
reference.
CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
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 6, 2004
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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
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Date October 6, 2004
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By (Signature and Title) /s/ Adam S. Ness Adam S. Ness, Treasurer
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Date October 6, 2004
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